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Sunday 26 October 2014

Bajaj Allianz plans cover for defamation suits

If there is trouble due to your post on the social media, soon you may be able duck under an insurance cover. In what it calls to be new age insurance, Bajaj Allianz plans to extend its cyber security cover to individuals. A niche product so far, the focus has been on the corporate segment covering routine aspects like data loss, and other Internet related issues.

A plan is being actively considered to bring a related cover for individuals too. May be it can cover the liabilities arising out of a defamation suit filed following a comment or a post on social media, Tapan Singhel CEO of Bajaj Allianz told TOI. He was in the city to inaugurate the premises of the company's office.

"This can be the future of insurance business. For example the insured person has to face a legal claim following what he has written on the face book. If the courts rule a penalty against him the insurance company can bear the liability or the legal expenses," said Singhel.

The plan is certainly on the drawing board but the finer points like premium and other aspects are being worked out. Singhel said the company believed only serious clients would go for the plan and the facility should not be misused.

About the company's share in the region, he said in Vidarbha Bajaj Allianz had seen a 46% rise in business. This was being attributed to the growth in motor and health insurance segments. There were plans to open new offices as business grew, he added.

Singhel said the company was looking forward to opening customer service centres in Bhandara, Yavatmal, Amravati, and Wardha by the end of this year.

The company now wants to increase its presence in the country on the whole and there are plans to open 4,000 new centres in five years. It feels that this may also help increasing the penetration of general insurance which is a small fraction of life insurance.

Currently there is a marginal penetration of the general insurance companies, especially in middle class segment. "Products especially like the health care insurance need to be pushed more as it ensures financial security in times of need as expensive medical treatment indeed becomes drain on a family's savings" said Singhel.

Singhel hailed the recent move by Insurance Regulatory and Development Authority (IRDA), to penalize the companies if they subsidize the premium for group insurance covers as the cost is finally recovered from the individual clients. "This is certainly not the right business practice as in a bid to provide a cheaper cover to corporate, the insurance companies have been ending charging more from individuals," he said.

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