NON-LIFE INSURANCE September 2019
Odisha farmers threaten to stage protest for insurance claim:
As much as 1.5 lakh farmers in Ganjam district of Odisha are threatening to stage a protest against the insurance company which enrolled them under Pradhan Mantri Fasal Bima Yojana (PMFBY) last year.
Controversy arise from the disagreements over the total area affected by Cyclone Titli last October. Accordingly to sources in the district administration, the company paid a smaller number of affected people then identified in the post – cyclone survey.
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Last October, Cyclone Titli caused heavy devastation in the districts of Ganjam and Gajapati with wind speeds up to 150 kmph. Heavy rainfall caused flooding in several parts of the districts. The cyclone left more than 60 people killed.
A joint team of insurance officials, agriculture and revenue department officials conducted a review. Based on eye estimation, compensation was to be given to Gram Panchayats (GPs) that sustained 50% and above crop loss, said Manoj Behera, Deputy Director of Agriculture in Ganjam. We initially gave a list of 112 GP’s to the company, but they ended up paying in around 59 GPs, he added.
Non-life insurers witness Rs. 44 crore loss in FY 19 :
The non-life insurance sector witnessed Rs. 44 crore loss in FY 19 as National, Oriental Insurance and United India have together reported losses of Rs. 4,200 crore, which is more than the collective profits of the remaining 23 companies.
The government is looking for a merger and a subsequent listing of these companies. However, due to their poor financial performance, they will require a capital infusion. The performance of the PSU insurers in FY 19 is in sharp contrast to their financials in FY 18.
IRDAI to launch pilot project for uninsured vehicles:
A pilot project will be launched by IRDAI in order to drive awareness campaign. The upcoming project will help the insurance companies in improving their premium collections, said IRDAI chairman SC Khuntia.
Four state governments have been roped in for this project. We are working with four state governments on a pilot project on how to contact the owners of the motor vehicles that are not insured and send communication to them that they come and renew, Khuntia said.
It is mandatory under the Motor Vehicle Act to have third party insurance. He further said that traditionally motor vehicles have been a segment which used to give about one – third of the premium but this year there is a little bit of difficulty as there has been concerned about the sale of automobiles. I hope with the government support the automobile sector will also improve its sales in the near future, Khuntia said.
SBI General Insurance introduces cyber insurance scheme:
SBI General; Insurance has recently launched new cyber insurance scheme for its customers, with an aim of safeguarding their online bank account or of ATM fraud.
The company is committed at a renewed growth story in Uttar Pradesh, which has jumped to the third spot in the country from fifth place in the last fiscal for SBI General Insurance.
In total SBI General has generated Rs. 295 crore from Uttar Pradesh in 2018-19. Company MD and CEO Pushan Mahapatra said that Motor Insurance policy has the highest portfolio that contributes. 36% in the product segment, followed by Group Personal Accident at 28%, Fire at 16% and Health at 12% in 2018-19.
Mr. Mahapatra also said the new cyber insurance scheme assures people to safeguard their online bank transaction or ATM cloning. He said his company have a vast presence in Uttar Pradesh, with branched in cities like Agra, Allahabad, Bareilly, Gorakhpur, Jhansi, Kanpur, Lucknow, Meerut, Noida and Varanasi.
Our New branch will open soon in Moradabad. The growth story for us in Uttar Pradesh has been phenomenal. The state alone accounts for a significant amount of premium in 2018-19 for us, Mr. Mahapatra said.