The race for getting national carrier Air India's
insurance renewal deal has begun between public and private sector general insurers. A New India Assurance-led consortium of public sector insurers has
emerged as the frontrunner, while the private sector has rallied behind a group
led by ICICI Lombard General Insurance.
The insurance contract for Air India's 105-strong fleet comes up for renewal on
October 1 at an estimated premium of about $25 million.
The New India Assurance-led consortium has United India Insurance, Oriental
Insurance and National Insurance as co-insurers. While, ICICI Lombard General
Insurance-led group has HDFC Ergo and Reliance General as co-insurers.
Following recent rise in aviation mishaps such as a series of Malaysian
Airlines tragedy, premiums have increased, pushing up the bill for insurers.
Air India's current insurance policy, issued by New India Assurance, includes a
$9.5-billion hull cover and a combined single liability of $1.5 billion.
The most awaited Insurance Laws (Amendment)
Bill-2008, is now being opposed by members of the Indian Institute of Insurance
Surveyors and Loss Assessors (IIISLA).
Opposing the proposed amendments to Section 64UM of the Insurance Act and the
Insurance Laws (Amendment) Bill- 2008, leader of the surveyors, Mr. Bharat
Dharmashi told reporters that this will promote unhealthy practices in the
industry.
Mr. Dharmashi explained that if an insured property suffers losses of more than
Rs 20,000, it needs to be surveyed by an independent surveyor licenced by the
Insurance Regulatory and Development Authority (IRDA).
But, private insurers without bothering regulator's regulations, hire
unqualified agents, he added.
Furthermore, he argued that an unqualified agent prepares survey reports in
favour of such companies and do injustice to property owners. “The proposed
insurance bill will allow 49% of foreign direct investment (FDI) and injustices
to people will mount.“
Another surveyor, Mr. M.N. Hegde, said if the proposed insurance bill is
passed, it would affect about 80,000 qualified surveyors across the country.
Source: http://www.insuringindia.com
Private sector insurance player Exide Life Insurance
Company has launched a traditional with insurance-cum-investment profits plan,
named -Assured Gain Plus, aims at to provide guaranteed returns on investment with life cover.
In a release, Exide Life Insurance Chief Financial Officer Mr. Uco Vegter said,
“This is a momentous occasion for us as this our maiden product after we
rechristened ourselves with a new identity. We have designed this product based
on an inherent need where people are looking at a superior quality of life and
securing their future at the same time."
In May this year, the ING Vysya Life Insurance changed its name to Exide Life
insurance after being totally owned by the Raheja Group through leading battery
maker Exide Industries.
Exide Life Assured Gain Plus is a perfect investment solution for people
looking for attractive tax-free returns with capital guarantee and life cover
to ensure the best lives for their families.
Under the plan, the policyholder needs to pay for 5 years only, while the
benefits continue for the full policy term. The policy term can be opted from
10, 12 or 15 years.
This plan guarantees a life cover of at least 10-folds the annual premium of
the full policy term.
People between the age group of 3 years to 60 years, can have the benefits of
this plan.
Country's largest investor the Life Insurance
Corporation (LIC) of India is quite optimistic of Narendra Modi-led
pro-business government.
Speaking during an interview inside his office in Mumbai, LIC Chairman Mr. S.
K. Roy said he saw few red flags ahead, betting on a long-term rally for the
country's stock market under a new pro-business government.
India's equity market has outperformed emerging market rivals this year, thanks
to overseas fund interest fuelled by Prime Minister Narendra Modi, who came to
power in May with a pledge to boost growth and revive investment. After months
of caution, domestic investors are now also growing more confident.
Mr. Roy was 'very bullish' about the banking, pharmaceutical, metals and IT
outsourcing sectors because of expectations of a cyclical recovery and a
stabilising rupee currency.
“I see few warning signs for markets, thanks to the government's commitment to
contain the fiscal deficit and receding concerns about lower rainfalls in the
monsoon period", he added.
Source: http://www.insuringindia.com
With a view to solve the liability issue
plaguing nuclear reactors, the Government of India has asked General Insurance
Companies (GIC) to work on a model that could be applied to insure such
facilities in the country.
“This is preliminary work. We have asked GIC to prepare a product that can be
used for the nuclear industry," said a senior government official.
As per the sources, this decision was taken at a meeting between the ministry
of finance and the department of atomic energy earlier this month.
The proposed insurance plan would have to look into the capacity of a reactor
and the liability and then work out the premium for insuring it.
Mr. Ratan Kumar Sinha, Secretary, Department of Atomic Energy said, “The work
is in progress. We are interacting with the Indian industry as well as Indian insurance companies. I am sure there will be a good solution available."
Under the Civil Liability for Nuclear Damage Act, 2010, the operator, which is
the Nuclear Power Cor. of India Ltd (NPCIL), has to pay Rs.1,500 crore to
affected parties in case of an accident. However, it can invoke the 'right to
recourse´, which has been objected to by several international players and
domestic suppliers.
Under this, NPCIL can seek damages from the suppliers. “This means liability
can be fixed on the suppliers. But a nuclear reactor may have several
components from different suppliers. In case of an accident in one part, the
supplier of another component cannot be held responsible.This has been one of
the major grouses of suppliers.
Source: http://www.insuringindia.com
