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GIC GOES SAMBA
With a move to expand its global presence, General Insurance Corporation of India, is venturing into Brazil next month for re-insurance business, according to a top official of GIC. “We are starting our reinsurance business in Brazil by November this year as we see avenues there. We have received regulatory approvals and have tied up with a firm which will look after the legal aspects,?General Insurance Corporation of India chairman-cum-managing director Mr Yogesh Lohiya told reporters.
UNITED INDIA BAGS IOC
Public sector United India Insurance Company Ltd (UIIL) bagged the prestigious Indian Oil Corporation mega risk cover at a premium of Rs 36 crore. Sources said the cover comprised three components asset cover, business interruption and terrorism risk. Risk covers above Rs 10,000 crore are treated as mega policies, under current guidelines of the Insurance Regulatory and Development Authority. IOCs asset cover risk was estimated at about Rs 60,000 crore. The asset risk cover included all IOCs refineries, pipelines and handling terminals at the major ports in the country.
UNIVERCELL LAUNCHES MOBILE THEFT INSURANCE PLAN
Mobile retailer Univercell along with Oriental Insurance Company on Wednesday launched a mobile theft and damage insurance plan for all mobile units, sold from its showrooms. "Our insurance plan will cover reasons like theft, accidental damages, fire riot, strike, malicious damage and fortuitous circumstances", Univercell Vice President and New Business Development Ramesh Barath said in Chennai. He said the insurance period was for 12 months from the date of purchase. "For total loss, the liability of insurer is restricted to the sum insured or the value of the new instrument on the date of claim whichever is lower", he added. Ramesh said for partial loss, the cost of repair would be paid without any depreciation on parts replaced for loss or damage. On premium payment, he said "once our customer gets into the insurance agreement, he/she has to pay Rs 25 for every thousand rupee", he said adding "if a customer buys a mobile for Rs 1,000 he has to pay a premium of Rs 25 every year".
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AIR INDIA SEEKS FOG INSURANCE
In an effort to contain its losses due to flight operations getting affected during the winter months, particularly in Delhi, Air India has entered the market seeking a fog insurance cover for a five-month period starting November 1, this year. The airline is seeking a cover of Rs 20 lakh a-day for its foreign stations and Delhi, while for other cities in the country, it is seeking a cover of Rs 10 lakh-a-day. During the winter months, the airline operation gets affected by fog. During this period, we have to provide accommodation to passengers and also pay for additional fuel in case the aircraft is diverted from the city where it is originally supposed to land due to inclement weather conditions. The insurance cover will help meet some of these costs, a senior airline official said.
SBI TO FINALISE JV STRUCTURE WITH IAG: BHATT
State Bank of India will finalise the terms of general insurance venture with Insurance Australia Group (IAG) in the next few weeks. Once a mutual agreement is reached, the joint venture will approach the Insurance Regulatory and Development Authority (IRDA) for necessary approval. The approval from IRDA usually takes three to six months.
NO INSURANCE COVER FOR CHANDRAYAAN-1
India’s most ambitious space programme, the Chandrayaan-1 project, which aims to send a spacecraft to moon, will lift off on October 22 without any insurance cover. The cost of India’s first unmanned mission to the moon is Rs 386 crore, including Rs 100 crore for establishing Indian Deep Space Network near Bangalore that would receive the signals from the satellites. According to insurance officials the cost of insuring space launches is extremely high due to high rate of failure. Also the risk almost entirely reinsured since Indian markets do not have the depth to cover launches on their own. Because of the high rate of failure the premium rates vary between 25-33% of the sum insured. “ISRO has a good track record of launches and can go for self insurance,?the official said.
HEALTH INSURER CIGNA SEEKS INDIA RE-ENTRY
In a major comeback plan, the $18-billion Cigna Corp, one of the largest health insurers in the world, has given consultancy firm Ernst & Young the mandate to assess the Indian health insurance market and advice it on a re-entry into the country. The US major had exited the country in 2001, disappointed with the slow pace of insurance reforms here. The companys plans for reentry come when regulators are debating sweeping insurance reforms and insurance players expect the foreign direct investment (FDI) cap to go up to 49% from 26% now. Also, private health insurance in India is growing at 40% a year.
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INSURANCE COMPANIES TO OFFER A STANDARD MEDICLAIM POLICY
General insurance companies will soon be able to offer a portable mediclaim policy to people in all age groups. It will be a standard product available across the industry and give policyholders the freedom to change insurance providers, at the time of renewal, while retaining the bonuses incurred. General Insurance Council (GIC) is in the process of developing a health insurance policy that would be standard across all insurers and therefore portable, said Pawan Kumar Bansal, minister of state in the ministry of finance, in Parliament. GIC has been working with all the general insurance companies to form this product and has already forwarded its recommendations to insurance regulator Insurance Regulatory and Development Authority (IRDA) for its approval. We have made the recommendations. Now it is for IRDA to approve it, before it can come out in the market, said K N Bhandari, Secretary General, GIC. It will be a standard product with a fixed premium, sum assured (a maximum of Rs 1 lakh or Rs 2 lakh) and will have standard benefits. This policy will be transferable between companies, without losing the continuity. So, bonus points or the pre-existing disease exclusion will not come, said M Ramadoss, chairman and managing director, Oriental General Insurance company. We expect to get the approval from IRDA within one month and are hopeful of making the product available to public by sometime December this year, he added.
GOM CLEARS BILL TO RAISE INSURANCE FDI
A bill to raise the FDI cap in the insurance sector to 49 per cent from the current 26 per cent has been cleared by the Group of Ministers and is to be placed before the Cabinet, Rajya Sabha was informed on Tuesday.
BAJAJ ALLIANZ LAUNCHES INITIATIVE ON ROAD SAFETY
Safety in road transport is of utmost importance as an unnecessary number of lives have been lost due to carelessness, said Bajaj Allianz General Insurance Company CEO Swaraj Krishnan. "It is our aim to create awareness among the people about the importance of safety while driving and hope that this initiative undertaken by us will help to decrease the number of road accidents being caused due to negligence." The Allianz Group has led to improvements in traffic safety and cost-savings through the automotive engineering research of Allianz Center of Technology, he said. There are many road safety initiatives taken at a global level, and it is vital for Bajaj Allianz, in India, to tap into this with the countless road accidents that happen in the country, he added.
CREDIT INSURANCE DRIES UP FOR EXPORTERS
With the global financial crisis hurting more companies in developed countries, Indian insurance firms have hiked premium rates by 25-30 per cent for export credit insurance covers and have imposed a host of restrictions such as maximum liability and credit limit in case of single buyers. Fearing huge losses, insurance firms have also stopped covering pre-shipment risks as a slowdown in developed markets may lead to cancellation of orders placed with Indian exporters. A week ago, state-owned Export Credit Guarantee Corporation (ECGC) imposed a credit limit of Rs 50 lakh if an exporter is supplying goods to a single US buyer, insurance sources said. Other insurance firms are either denying credit insurance cover or fixing credit limits on a case-by-case basis, depending on their risk assessment of the buyers. The credit insurance market is getting quite choppy.
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Date: November 28, 2008
Dear Sir,
Re: Relaxation of term and conditions of Coverages General insurance products
We have the proud privilege of association with you as insurance consultants for your general insurance business.
For corporate customers in addition to identifying insurance needs we work on total risk management package looking to your need for a comprehensive assessment of several risks that you are exposed to?
We are pleased to bring to your kind notice that the insurance regulatory and development authority has now decided to permit various relaxations in terms and conditions of the coverages in fire, engineering, motor and IAR (Industrial all risk policies).effective 1st Jan 2009.
- Insurers are permitted to file variations in deductibles from those prescribed under the erstwhile fire, engineering, IAR and motor own damage ( OD ) tariffs subject to written disclosures and acceptance by the insured prior to finalization of the insurance policy.
- Insurers permitted to file add-on covers over and above the erstwhile tariff covers in fire, engineering, IAR and motor OD with appropriate additional premiums. ‘Loss of Use?and ‘waiver of depreciation?under motor OD insurance are some examples.
- Insurers are permitted to extend engineering Insurance to movable / portable equipments.
- Minimum TSI (Total Sum Insured) limit of Rs. 100 crores under erstwhile IAR tariffs are removed and insurers are permitted to file IAR products for all industries including, petrochemical industry.
The insurers now may come up with their own package policies and tailor made covers as per requirement of the clients and other conditions for loss settlement with in the guide lines of the regulatory authority
The IAR policy shall be available to industries with out the limit of sum insured of 100 crores as earlier.
The IAR is a package policy to cover your risks at attractive premium rates with many additional covers at no extra cost.
The IAR Policy Covers
- Fire and Allied Perils
- Burglary
- Boiler Explosion
- Electronic Equipments
- Machinery Breakdown
- Fire ?Business interruptions With option to cover Machinery breakdown business interruption Loss of Profit ( MLOP )
The following covers all included free:-
Boiler explosion, all risk electronic equip cover ,burglary, forest fire, leakage and contamination cover, spoilage and material damage cover, subterranean fire.,spontaneous combustion etc.
Policy shall also cover equipments and machinery sent for repairs out side the premises for a period of 60 days Transit risks inside the compound of an industrial risk stand covered.
Under Insurance ?under insurance on each item of the schedule is ignored if it does not exceed15 % thereon.
We shall endeavor our best to obtain widest coverage on competitive terms &
Shall take the earliest opportunity to apprise you with current developments in various insurance products and their relevant implication on your insurance portfolio ----
Best Regards,
(Vijay Sharma)
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