Oil shipment insurance cost increases after Middle East tanker attacks:

The rapid increase of insuring cost of West Asian oil shipments after Middle East Tanker attacks has become a major concern on a region responsible for about a third of all seaborne petroleum. According to the experts, war risk premiums for a standard oil cargo from the Persian Gulf and the tanker hauling it can now cost as much as $ 500,000. However, previously this year, the same premiums would cost owners less than a tenth of that.

The vulnerability of maritime traffic came into light when US President Donald Trump said other nations are required to provide more support to protect navigation from West Asia in the wake of six attacks on tankers since early May. The incidents prompted an advisor to insurers to determine the entire Persian Gulf as a riskier area for shipping and giving underwriters chance to impose bigger premiums. Sandy Fielden, an analyst said, “this will get passed on the customer”, He added, Refiners are paying more for crude and they will pass on the cost to customers if they can. If refiners choose not to pass that along, their margins would get squeezed.

The insurance prices being lifted fall into two categories, one is for the vessels themselves, the other for their cargoes. While the cost of covering the tankers surged as soon as the most recent attacks happened, the surge in prices for the cargoes only happened over the past week.

In order to cover a cargo valuing $130 million, underwrites are now planning to charge anywhere from $250,000 to $325,0000, according to the experts. Despite the surge in insurance premiums, the extra cost is still a small part of a barrel of crude. Based on standard supertanker cargo, $ 500,000 would equate to 25 cents per barrel. Brent futures traded at about $64.40 in London.

Reliance Gen Insurance’s digital campaign brings back childhood cricket memories:

Reliance General Insurance has recently rolled out this digital marketing campaign # Covered Hai, which takes customers on a nostalgic experience with a video that integrates insurance expectations with unforgettable memories of childhood cricket situations.

The primary aim of the company is to connect with customer emotionally by conveying the message that unforeseen situations like losing the only ball, bad weather, or even parents ending a child’s game, etc. may not be covered, but the broken windshield of vehicle is.

 Term of the day: What’s the role of a third-party administrator or TPA:

Third Party Administrations (TPA) are essentially companies that function as intermediaries between the insurers and the insured.

Health insurers generally outsource the process of accepting intimations, approving cashless claims and settlement and disbursement of claims to TPAs, who issue identity cards to policyholders which need to be submitted to the hospital from where the policyholder wants to make a cashless claim. TPAs have a bigger role to play at the time of filing claims you will first have to inform your TPA who will direct you to a hospital with which it has a tie-up. Once this is done, the hospital will get an authorization letter from the TPA following which all your bills will be sent to the TPA.  The TPA forwards your bills and other documents to the insurer for your claim to be processed.

Note that if you choose to go to a hospital which does not have a tie-up with the TPA, you won’t be able to make a cashless claim but your expenses will get reimbursed by the insurer. However, you could still get the claim processed by the TPA.

Banks and Insurers hold over Rs.  32,000 crores as unclaimed deposits:

As per information presented by Government, more than Rs. 32,000 crore is lying as unclaimed deposits with banks and insurance companies.

Any account which has not been operated for 10 years is considered as unclaimed account and the amount deposited is considered as unclaimed deposit or amount. Finance Minister Nirmala Sitharaman mentioned in a written response that unclaimed amount with life insures as of September 30,2018 is Rs. 16,887.66 crore and non-life insurance companies hold Rs. 989.62 crore as unclaimed deposits.

In accordance with the provisions brought in by the Finance Act 2015, the Centre notified the Senior Citizens’ Welfare Fund (SCWF) Rules, 2018. It was amended during next two years and made applicable to insurers. Entities having unclaimed amounts for more than 10 years are required to transfer the amounts to the SCWF on or before March 1 every year. The SCWF is utilized for schemes promoting the welfare of senior citizens.

World’s largest health insurance cover:

The NHPM (National Health Protection Mission), labelled the world’s largest health assurance cover, aims to provide health insurance to nearly 40% of the population i.e. more than 100 million poor and vulnerable families with the premium paid by the government. The finance ministry had initially announced an outlay of Rs. 2,000 crore. The Union health ministry announced an allocation of Rs. 10,000 crores to Modicare for next two years with NHPM, it is very likely that investment in midsize hospitals with more than 50 beds and more will increase. This may cut the costs of the health services considerably.

 4 chronic illnesses incur majority of medical insurance expenditure

The treatment costs for four chronic and aging-related diseases account for over half of China’s medical insurance expenditure, according to an official from the National Health Commission (NHC).

The four diseases are cardiac and cerebral vessel-related diseases, cancers, chronic respiratory disease and diabetes, said Zhang Yuhui of the NHC, according to a report by the Xinhua News Agency.

Curbing treatment costs of these four types of illnesses through value-based care is expected to save over CNY100bn ($14.2bn) for China every year.

China has released the Healthy China Action (2019-2030) plan, which includes measures for the prevention and control of these major chronic diseases.