An increase in global political uncertainty has led to a rise in political violence insurance covers being taken by Indian companies. These policies are taken by firms that have investments in foreign markets and exposure to such risks.
Ketan Kale, practice leader-credit, political & security risk, JLT Independent Insurers Brokers, said Indian firms are increasingly coming forward to insure their assets globally, especially in regions such as West Asia and Africa. While proposals for covers in volatile markets are not denied, premia are comparatively much higher — by as much as 100-600 per cent.
JLT Independent recently offered such a policy to a pharma client for Yemen. It was a $10-million cover for political violence.
Sanjay Datta, chief underwriting & claims, ICICI Lombard GIC Ltd, says there has been a good demand for these products. “Capacity is not a problem since we have a terrorism pool in place. This pool size may increase to Rs 2,000 crore from Rs 1,500 crore.”
The Indian Market Terrorism Risk Insurance Pool is likely to see an uptick in capacity with a rise in global terror incidents. The pool was formed following an initiative by non-life insurance firms in India in April 2002, after terrorism cover was withdrawn by international reinsurers in the aftermath of the 9/11 attack. The pool has completed 13 years of successful operation. All non-life insurance companies of the country and General Insurance Corporation of India (GIC Re) are members of the pool.
Source: Business Standard
Most Indian women claim to be insured and believe they are prepared for eventualities facing family, a survey said.
About 95% women claim to be aware about health insurance and 84 per cent said they are covered under a health insurance plan, an online survey conducted by ICICI Lombard General Insurance, said.
The survey was done among 876 women respondents aged between 22 and 55 years. It also revealed that about 70 per cent respondents claim to own a motor insurance policy.
"Women give more importance to their family's health (86 per cent) and safety (82 per cent) compared to their own health (47 per cent) and safety (21 per cent)," the survey said.
"Today's women, while playing multiple roles, tend to focus more on their family's health and wellbeing. They are savvied and show a sense of being prepared for eventualities. It is indeed encouraging that most women respondents in our survey were themselves covered through an appropriate insurance cover," ICICI Lombard GIC Chief-Underwriting and Claims Sanjay Datta said.
It found that 51 per cent believe in adopting preventive measures.
The survey also revealed that 30 per cent would want to purchase a home. Also taking into account the recent catastrophic events, women are getting cautious day by day and are taking steps to secure their home and family, it opined.
This is evident from the responses wherein women gave importance to staying healthy (71 per cent), ensuring adequate saving (63 per cent), be cautious while travelling or driving (53 per cent).
After resisting open architecture for a while, banks are now showing interest in selling the products of multiple insurance companies. Banks usually sponsor insurance companies.
Last year, the Reserve Bank of India (RBI) allowed banks to sell insurance products of multiple insurance companies, but did not make it mandatory. This norm, which will come into effect from April 1, will allow one bank to sell three separate products for life, general and health insurance.
“Over 40 banks, including the ones that have insurance products, have shown interest in selling products of multiple insurance companies,” said Nilesh Sathe, member, life, Insurance Regulatory Development Authority of India (IRDAI), on the sidelines of an event organised by the National Bank for Agriculture and Rural Development (NABARD).
Till date, banks could sell one insurance product from each insurance segment — life, general and health — under bancassurance agreements. Bancassurance follows a corporate agent structure, which means banks sell insurance as corporate agents.
Banks that have promoted insurance companies were initially hesitant to offer insurance products of other companies, as their original shareholders’ agreements with their respective foreign partners was not in favour of such a move.
All of the large lenders of the country, including State Bank of India, ICICI Bank, Bank of Baroda and Canara Bank, have entered the insurance space.
Mr Sathe also said the insurance regulator has allowed four global reinsurers to open branches in India, but declined to give details.
Last year, RBI allowed banks to sell products of multiple insurance companies
Source: The Hindu
Super Star Rajinikanth's Robot 2.0 is being made with a high budget with the makers investing crores on the movie in order to deliver the best graphics to impress the audience.
Robot-2.0 director, Shankar plans to opt for an insurance of Rs 350 crores for the movie. While more details on the insurance have been kept confidential, the movie will feature Amy Jackson in the lead role opposite Rajinikanth and Bollywood actor Akshay Kumar in the antagonist role.
Meanwhile, Rajinikanth's forthcoming movie Kabali is set to hit the theatres in the month of May following which the actor will be joining the sets of Robot-2.0.
Source: Thehansindia.com
Railways is in talks with seven insurance companies to help provide insurance cover to rail travellers, the Rajya Sabha was informed today. “Railway officials are holding talks with seven insurance companies.
Once the decision is taken, then rail passengers can get an insurance cover for rail travel and passengers can buy it by paying an additional premium along with the ticket.
Once the decision is taken, the House will be informed,” Minister of State for Railways Manoj Sinha said. Preliminary discussions have been held with these seven public and private insurance companies on February 9, but no decision has been taken so far, he said.
Replying to supplementaries during Question Hour, he provided details of rail accidents in the last three years and said while there were 123 accidents in 2012-13, 118 in 2013-14 and 135 accidents in 2014-15, besides 100 in the current year 2015-16.
He said 579 cases of claims of compensation to victims of rail accidents were still pending with various Railway Tribunals which are quasi-judicial authorities.
As regards grant of compensation provided to victims of rail accidents through Rail Tribunals, he said during 2012-13 a compensation of Rs 318.85 lakh was paid, while in 2013-14 a total of Rs 149.22 lakh was paid and another Rs 127.48 lakh paid during 2014-15. During 2015-16, a total of 115 lakh was paid as compensation to victims of rail accidents, he said.
Source: India.com
The country has one of the biggest health protection gaps in Asia, which is expected to increase by 12.3 per cent annually to USD 214 billion by 2020, a report said.
"India has one of the biggest health protection gaps amongst the countries in Asia. The gap is projected to increase by 12.3 per cent annually to USD 214 billion by 2020," according to a report by Swiss Re, a leading wholesale provider of reinsurance and insurance products.
Health protection gap is defined as the difference between the level of healthcare costs which would be required to meet consumer needs, versus the amount that would be available to cover those costs, if society's total healthcare expenditure remained a constant percentage of GDP.
The country is likely to face a shortfall in healthcare financing of close to USD 43 billion in 2020, which will require additional fiscal spending or higher out-of-pocket funding by individuals, it said.
Only 288 million (22.2 per cent) of India's population are covered by health insurance, of which 214 million are insured by government schemes, 48 million are covered by group insurance, while 25 million use individual or family floater plans, it added.
The government and society will have to spend more in the future to make up for the growing demand for healthcare services due to higher income growth and a large population, it opined.
In addition, out-of-pocket expenses account for nearly 60 per cent of the total healthcare expenditure in India, with a very minor contribution from private insurance plans and a catastrophic event will wipe out one's entire savings, it said.
With the emerging middle class estimated to grow almost 10-fold from 50 million people at present to 475 million by 2030, the demand for quality healthcare and speed to access services will be greater.
Expanding insurance market like India requires a sustainable and dependable healthcare and insurance infrastructure, it said.
Increased consumer awareness along with easier access to healthcare are essential to drive penetration and double health insurance coverage in India by 2020.
One of the possible models to insure the entire population of the country could be that the government gives a base cover to the bottom of the social pyramid, while private insurance companies cover the levels above, it added.
Source: Business Standard
