Life Insurance sector sees 7% rise in premium :

Motor insurance premium for two wheelers rises significantly :

Two Wheeler buyers in India have to pay nearly 10% of the vehicle’s price upfront towards insurance premium, while car buyers are seeing the cost of motor cover double from last month. The premium have jumped up significantly as a result of court orders. The first makes purchase of a long- term, third party insurance cover mandatory, while the second forces vehicle owners to buy an Rs. 15 lakh personal accident cover, which is prices exorbitantly by insurers.

Supreme Court – Seize – and sell order on cars.

The Supreme Court has asked all states and Union Territories to frame a policy to strictly enforce a laws that requires immediate confiscation and eventual sale of vehicles after an accident if it does not have a third – party insurance policy. The objective is to use the sale proceeds of the vehicle to pay compensation to the accident victims or their families.

Reliance Health Insurance gets final nod from IRDAI :

Reliance Health Insurance has received the final go-ahead from the Insurance Regulatory and Development Authority of India (IRDAI) to begin operations. Reliance Health insurance, a wholly owned subsidiary of Reliance Capital, has received R3 approval from IRDAI for its new health insurance business, said Reliance Capital in a statement. With this registration, the total number of standalone health insurers registered with the Authority has gone up to seven, said IRDAI in a separate statement.

Demand for cyber insurance growing rapidly :

Digitalisation is progressing at a tremendous pace. In almost all sectors, processes are being automated and brought online in order to increase efficiency and improve client satisfaction.

At the same time, digitalization ad interconnectivity are changing the risk landscapes of companies. Cyber risks re without doubt one of today’s greatest threats. Unlike traditional lines of insurance such as nat cat, fire and motor, cyber risks are global, no market, sector or company is spared, irrespective of its size.

Cyber risks are  presenting the insurance industry with significant challenges. Very little long term loss data is available, making it impossible to conduct a risk assessment using conventional models. In addition , the risks themselves are changing as digitalisation gains pace. This calls for flexible solutions that offer much more than just insurance cover. Unknown cyber risks can even be found in many existing traditional insurance policies, as the contractual conditions either did not exclude these risks or did not draft the exclusions with sufficient accuracy.

IRDAI hikes insurance cover for owner driver to Rs. 15 lakh.

The Insurance Regulatory and Development Authority (IRDAI) has raised the minimum insurance cover for owner driver of Rs. 15 lakh for a premium of Rs. 750 per annum. Currently, the capital sum insured (CSI) under this section for motorized two wheelers and private cars / commercial vehicles is Rs. 1 lakh and Rs. Lakh respectively.

However, a few general insurers have been offering add-on covers under package policies with higher CSI over and above the stipulated on payment of additional premium. The regulatory directed all general insurers to provide a minimum CSI of Rs. 15 lakhy under Compulsory Personal Accident (CPA) cover for owner driver under “Liability only” to all classes of vehicles at the premium rate of Rs. 750 per annum for annual policy. This rate will be valid until further notice, IRDAI said in a circular. A higher CSI may be provided over and above Rs. 15,00,000 through Optional covers under Liability only and under Section III of Package Policies / Bundled covers on payment of additional premium at the option of the insured, it said.