NON-LIFE INSURANCE JUNE 2019
M.N.Sarma to be new Secretary General of the General Insurance Council :
Mr. MN Sharma, the former Chairman & Managing Director of United India Insurance will take over as the new Secretary General of the General Insurance Council.
Bajaj Allianz Gen net profit declines 55% :
Bajaj Allianz General Insurance posted a fall of more than 55 per cent in net profit to Rs. 83 crore in the fourth quarter of 2018-19. The private sector insurer had registered a net profit of Rs. 187 crore in the fourth quarter of 2017-18. It also made a underwriting loss of Rs. 146 crores for the January to March 2019 quarrter, against a profit of Rs. 30 crore in the same period a year ago.
The drop in profit was primarily attributed to natural calamities and crop insurance. Its gross written premium rose 23% to Rs. 3,402 crore in the fourth quarter of the fiscal, from Rs. 2764 crore in the same period of the previous fiscal.
Third Party Motor insurance may further hit Auto Sector :
Insurance Regulator IRDAl’s proposal to increase third party (TP) motor insurance from 10 to 20% on different segment has come into effect. This is likely to hit auto sector badly as it is already reeling under impact of slow down and fuel hike, said experts, adding that the hike is being opposed by transporters’ association citing various reasons.
Usually, third party motor insurance rates are declared from April of every financial year, but this year it was not in effect due to Lok Sabha elections, but now it has been implemented.
Non—exclusion of critical illnesses in health policies, proposes IRDA’ :
IRDA had constituted a working group on the standardization of exclusions in the health insurance contracts. After examining the recommendations of the working group, the regulator has proposed to issue guidelines on exclusions in the health insurance products No health insurance policy shall incorporate exclusions in the terms and conditions of the policy contract on diseases contracted after taking the policy.
Also, impairment of persons’ intellectual faculties by the usage of drugs, stimulants or depressants as prescribed by a medical practitioner cannot be excluded. “Treatment of mental illness, stress or psychological disorders and neurodegenerative disorders, should not be included in exclusions listed in the policy. Puberty and menopause related disorders, age-related macular degeneration and behavioral and neurodevelopmental disorders too cannot be excluded, said the draft.
Homeowners, small businesses can look forward to affordable insurance soon :
Individual homeowners and small businessmen living in regions prone to natural calamities can look for better cover soon. In the wake of recent natural calamities resulting in huge loss of dwellings and commercial establishments, a working group of IRDA has suggested a simple, affordable insurance cover for homeowners.
Similarly, different products for micro commercial establishments having a risk value of Rs. 5 crore and above Rs. 50 crore have been proposed. The inadequate sum insured for dwellings can be attributed to the fact that it is the customers who decide on it, with insurers having no say over the matter.
Medical reimbursement claimed by employees not bounty : Madras HC
Madras High Court has recently ruled in Marimuthu V. Government of Tamil Nadu that medical reimbursement claimed by the employees and pensioners or their family members is not the bonus or bounty. It noted that since it has been made compulsory that every employee or pensioner of the state government must join in the Health Insurance Scheme by paying a continuous contribution towards premium every month, the government cannot easily abdicate their duty and responsibility by merely rejecting the case of medical reimbursement claim on technical grounds.
The bench of Justice R. Sureshkumar found that the District Level Empowered Committee has rejected the claim of petitioners for reimbursement in one line without giving any plausible or acceptable reason like the treatment taken in non network hospital or for the non-network hospital or for the non-listed disease.
ABTA’s new research paves way for travel insurance :
A notable proportion of British holiday makers may travel uninsured when they head off overseas for their summer holiday this year, says a new research from the Association of British Travel Agents (ABTA). The research found that as many as 38 per cent of Brits planning to go abroad this summer do not yet have travel insurance, putting themselves at major – and entirely unnecessary — risk.
The research also found that 21 per cent of surveyed holidaymakers have travelled uninsured over the last year, of these, 37 per cent said that travel insurance was not necessary, and 28 per cent said that while they were aware of the risk, they were happy to take it. Notably, of those who said that they have -been required to pay out while on holiday because they were either uninsured or underinsured, 34 per cent said that they had to spend between Euro 500 and Euro 4,000.
ABTA has partnered with the UK Foreign and Commonwealth Office (FCO) to spread awareness among travelers of the importance of insurance, encouraging them to purchase it as soon as they book their trips, so that they can be 100 percent certain of peace of mind from booking to their department to their return.
U Most people enjoy trouble-free holidays overseas, said Julia Longbottom, the FCO’s Director of Consular Services. She added, “However, I am concerned by these new figures showing that many British holidaymakers continue to travel without insurance. The risks are very clear. It is important to know that FCO cannot help fund medical bills if you or a family member are taken ill or hospitalized when abroad. Make sure you take out a travel insurance policy that meets your personal needs so you know you are covered should anything happen, and you can focus on having a relaxing holiday”.
ABTA also noted a number of high profile incidents that received media attention in the last year, including an uninsured Welsh holidaymaker who died in Dubai and whose family were left with a bills of Euro 30,000; and an insured woman who failed to disclose a pre-existing medical condition before a trip and was subsequently left with a bill of Euro for medical treatment in Mexico.