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Welcome to the third edition of the newsletter. The regulator led reforms continue in full force and insurance industry is poised for a growth trajectory unseen in the past. The target 2047 for insurance for all is the realizable dream going by the speed of reforms led by the regulator. All regulations are being looked into to make the insurance more accessible to common people and this indeed is a great vision for the Indian non-life Industry.
I am sure the industry will rise to the occasion and achieve the targets much before the dateline set for it
Wish you all a very happy 2023
Anjan Dey, CMD
The Oriental Insurance Company, New Delhi
Chairman, GI Council
The third edition of the newsletter is before you. The newsletter is a collaborative effort of all non-life industry members to spread its message and keep people informed about new developments. In this edition, we cover the new set of reforms in easing the regulations for unhindered growth of the industry and its reach to common people. We have also covered various topics on health insurance, parametric insurance, international market developments and other current issues to make people aware of changes happening in the non-life insurance industry at a fast speed. Looking forward to your valuable feedback.
Wish you all a merry Christmas & a Happy New Year.
M N Sarma
General Insurance Council
Executive committee Members
Mr Anjan Dey (Chairman)
Mr Devesh Srivastava
Dr S Prakash
Mr Tapan Kumar Singhel
IRDAI Nominated Members
Prof. Bejon Kumar Misra
Dr Nayan Shah
Mr Milind Bhatawadekar
Mrs Asha Nair
Mr K.C. Lokessh
Mr M.S. Sreedhar
Mr Krishnan Ramachandran
Mr Hitesh Kotak
Mrs Sucheta Gupta
Mr Vinod Dua
Insurance in news
The Premium ‘Score Board’
In the financial year, at the end of November 2022, the general insurance industry has grown by 16.46% touching a Gross Direct Premium of Rs. 165,360.32 crores. The health insurance business growth at 22.54% and Motor insurance at 17.04% are the highest contributors to this growth.
General insurance is the sunrise industry with a great potential to unleash cover for all, reduce protection gap, offer employment and lot more opportunities to all stakeholders. It is poised for revolutionary and unprecedented progress in the days to come.
The recent initiative by IRDAI Bima Sugam is perceived to be a big game changer in the general insurance market development. It is a revolutionary step with ambitions of becoming the largest online market for insurance products and services which has not been practiced anywhere else in the world.
IRDAI’s reform agenda continues
Working towards its commitment to enable insurance for all by 2047 where every citizen has an appropriate life health and property insurance cover, and every enterprise is supported by appropriate insurance solution and also to make Indian insurance sector globally attractive IRDAI unleashed a plethora of reforms in its board meeting on 25th November 2022.
Building a strong Health insurance plan:
Mr Tapan Singhel CEO & MD Bajaj Allianz general Insurance Company is one of the prominent thought leaders of the non-life industry. He shares his views on the importance of health insurance for the common people. His article, which is published elsewhere also, explains how we can develop a strong health insurance plan in a systematic and comprehensive way to take care of any health emergency.
Insurance Laws & policies
Transforming Reinsurance Sector in IndiaForam Chauhan is Deputy Manager (Legal & Compliance) in Munich Re which is world's leading Reinsurance company having Branch in India. In her article on the proposed draft on Insurance Regulatory and Development Authority of India (Re-insurance) (First Amendment) Regulations, 2022, she explains how these reforms will change the reinsurance landscape in India.
Conference on iRAD & e-DAR A one-day conference was organized on 21st November 2022 for a briefing on iRAD (Integrated Road Accident Database & e-DAR (Electronic Detailed accident Report) at Insurance Institute of India, Bandra Kurla Complex, Mumbai. 93 Officials of General Insurance Industry & GI Council attended the conference. The Integrated Road Accident Database (iRAD) Project is an initiative of the Ministry of Road Transport and Highways (MoRTH).
Whose insurance is it anywayInsurance policies are not intended to generate profits. There are insureds who have been seeking cover for envisaged risks with the same insurers for years. In those circumstances, to preclude insurers from relying on exclusion clauses may be a recipe for comfort for insureds, who could simply plead ambiguity and lack of material information and seek the blue pencil test to be applied in a blanket manner. In his incisive article Sumit Lall of CSL Chambers examines latest verdict of the Supreme Court and its potential effects for the stakeholders
What is Parametric cover The term ‘parametric insurance’ describes a type of insurance contract that insures a policyholder against the occurrence of a specific event by paying a set amount based on the magnitude of the event, as opposed to the magnitude of the losses in a traditional indemnity policy.”Simply put, parametric insurance provides fast, lump-sum payments upon the occurrence of a pre-determined data metric (a parameter). By expediting the claims process policyholder’s insurance creates an opportunity to improve the policyholder experience, building loyalty and trust.
Home InsuranceEvery Year in our Country there are huge losses suffered by households due to Natural Perils like- Flood, Storm, and Landslides. However, It is really sad to note that in spite of repeated losses due to Floods and rarely due to Earthquake, there has been no urgency or need felt by Indian households to take a General Insurance policy that covers not only the Structure of the House but also the contents which are valuable and costs a lot to replace.
Why Terms and conditions in an insurance policy are needed? Often the insurance policies are criticized for the detailed terms and conditions they carry as opaque or technical wordings which are not understood by common people. No doubt the simple wording of a contract is always a desirable feature for any contract and the industry is consciously working to make it as simple as possible but many a times the criticism is unfair.
The Noble business of solving worries In this informative article Mr. Aditya Sharma, Chief Distribution Officer – Retail Sales, Bajaj Allianz General, explains how a career in insurance can offer stability, growth, work satisfaction, and holistic development. That too with independence, of being your own boss, with freedom to decide what you want to earn and grow at your own pace
Frequently Asked Questions
How to avoid common mistakes while buying Health Insurance policy
Health insurance is becoming indispensable in the current times. Unhealthy lifestyle and food habits has made even our young population susceptible to many health conditions at an early stage in life. To add to that, high medical inflation and increasing frequency of epidemic such as dengue, malaria, typhoid and not to mention Covid-19 has made having health insurance more crucial than ever. So, here is a deep dive to ‘zero-in’ on the right health plan best suited for you and your family.” Read More>>>
Global Recession 3.0 – Fasten Your Seatbelts with lessons from IndiaA general decline in economic activity in two continuous quarters of a financial year in a country or a region is termed recession. And if that decline in economic activity spills over to other countries and breaches the borders, it gradually takes the form of a global recession that can be triggered by a lot of factors. Shivam Tiwari, country risk underwriter, ECGC Limited, explains how India stands a unique chance of sailing smoothly in the rough waters of the global economy
Solvency II reform welcomed by insurance industry- Association of British Insurers (ABI)UK Chancellor of the Exchequer Jeremy Hunt confirmed on Thursday November 17th that the government planned to reform the prudential regulatory regime for the UK insurance and long-term savings sector, which would include changes to the systems put in place by the EU’s Solvency II regime nearly a decade ago.
EU Agrees to Price Cap of $60 as Ban Begins on Russian Seaborne Oil After weeks of back-and-forth negotiations, and some last-minute holdouts, the EU confirmed that a deal has been reached to establish a price cap on Russian oil. It was a key step ahead of the import ban on Russian seaborne oil due to go into effect on December 5 and being hailed as a demonstration of western resolve for the sanctions against Russia in retaliation for the war in Ukraine, but questions remain on how it will impact the shipping industry.
COP27: It’s time for IMO to deliver on shipping decarbonization Shipping has a window of opportunity to engage with countries, communities, and policymakers to raise the ambition and shape the policy. The opportunity is now — and we must seize this, argue two of the leading industry representatives who have spent the past fortnight inside the COP27 climate summit in Egypt.
General Insurance Council, 5th Floor, National Insurance Building, 14, Jamshedji Tata Road, Churchgate, Mumbai-400020, Maharashtra, India, email@example.com
Disclaimer : Our newsletter endeavors to compile insurance information from various sources in the public domain. In respect of 3rd party articles/news items etc. reproduced, the GI Council accepts no responsibility for the accuracy/authenticity and completeness nor can be seen as endorsing the views/opinions expressed therein.