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12 Jul, 2022 | Weekly

Weekly Insurance Round-up Tuesday, July 12, 2022

Team Beshak
By Team Beshak
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Hey there!

We're back with the latest edition of Beshak’s Weekly News Round-up, an analysis of all Insurance News & Updates from our in-house research team. 

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What's inside? 🧐

✴️ IRDAI to investigate Covid-19 Claims 🔍

✴️ Year-on-year new business premium of life insurers rises by 39.73% 📈

✴️ Edelweiss General launches ‘SWITCH’ - mobile telematics-based comprehensive motor plan 🛡️

✴️ IRDAI sets 5 years target for greater penetration of insurance 🎯

✴️ IRDAI permits general insurers to issue sophisticated add-ons for motor insurance 🚗


IRDAI to investigate Covid-19 Claims 🔍

  • IRDAI has agreed to look into the covid-related claims that the insurance companies had earlier rejected.
  • This decision was taken after a Public Interest Litigation was filed by Manav Seva Dham, a social service trust, against various insurers before the Bombay High Court.
  • The petition stated that several insurers- 
    • Were engaged in several offenses, misused the policyholder’s funds, rerouted them through additional business, and paid hefty commissions to banks and their agents.
    • Have caused wrongful losses to the policyholders.
    • Rejected the claims without giving any solid valid reason.
  • The trust has asked the court to pass an order to make sure that the insurance companies do not reject covid-related claims based on any unjustifiable reason.

Source: LiveMint

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Year-on-year new business premium of life insurers rises by 39.73% 📈

  • As per the Business Figures - Life report released by IRDAI, the collective new business income for life insurance companies saw a 39.73% year-on-year increase.
  • The premium income increased to ₹73.674.53 Cr for the first quarter of this financial year, from ₹52,725.26 Cr. for the same period in the last financial year.
  • The new business premium for the first quarter of this financial year of all the private life insurers grew by 48.75%. The premium income grew to ₹25,473.53 Cr. from ₹17,124.58 Cr.
  • LIC saw a growth of 35.39%, where the premium income increased to ₹48,201 Cr. from ₹35,600.68 Cr.
  • However, the premium income of LIC for June 2022 declined by 5.29%. The premium income decreased to ₹20643.67 Cr. from ₹21796.28 Cr.
  • Private insurers saw an increase of 29.19% in their new business premium income for June 2022, where the premium income increased to ₹10,610.89 Cr. from ₹8,213.20 Cr.
  • The cumulative new business premium of life insurers for June 2022 increased by 4.15%, to ₹31,254.55/- Cr. from ₹30.009.48/- Cr.

Source: Financial Express

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Edelweiss General launches 'SWITCH' - mobile telematics-based comprehensive motor plan 🛡️

  • Under the IRDAI’s Sandbox initiative, Edelweiss General Insurance launched a mobile telematics-based comprehensive motor insurance policy.
  • When the app detects motion while the car is being driven, the insurance instantly gets activated, making it convenient and hassle-free for the consumers.
  • SWITCH is a usage-based model that assesses both quantity and quality, and the premium is determined accordingly.
  • Customers may purchase SWITCH online and download the SWITCH app afterward to view their insurance policy.
  • Features of SWITCH include - 
    • Everything is digital, from purchase to claim settlement.
    • After the initial payment is made to activate the policy, customers can pay the remaining premiums in monthly installments.
    • The policy covers accidental damages only while in motion and when switched on.
    • The vehicle will have 24/7/365 protection against fire and theft.
  • Add-ons available with this policy include - 
    • Depreciation protect 
    • Engine protect
    • NCB protect
    • Roadside assistance
    • Invoice Value Protect
    • Key and Locks Protect
    • Consumable Expenses Protect
    • Mandatory Deduction Protect
    • Personal Belongings Protect
    • Tyre Protect
    • EMI Protect
  • The policy comes in two modes - 
    • Max Mode: 
      • This is a comprehensive cover and comes with in-built add-ons like, personal accident cover, Mandatory Deduction Protect, Depreciation Protect, Road Side Assistance, and Consumable Expenses Protect.
      • One can also customize the plan and opt for more add-ons according to their choice.
    • Cruise Mode:
      • This is a comprehensive cover, too, but this mode does not provide an option to buy any extra add-ons with the policy.
      • It only covers loss or damage to the insured vehicle, third-party damage, personal accident cover, and passenger cover.
  • Switch goes by the motto ‘Drive less, pay less; Drive better, pay less’.
  • Customers will be given a driving score based on various parameters like overspeeding, distracted driving, and sudden brake, among others.

Source: LiveMint

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IRDAI sets 5 years target for greater penetration of insurance 🎯

  • IRDAI has set a 5 years growth target for general and life insurance companies to ensure that their products reach maximum people.
  • A committee of state-level bankers and insurance companies (SLBIC) is also proposed for a regular review.
  • As per the report, the targets set by IRDAI are - 
    • To double the insurance penetration to 6% from 3% by the year 2027.
    • General insurers must increase their premium target to 11 Lakh Cr. from 2 Lakh Cr.
    • The share of GDP achieved should be 2.5% instead of 1%.
  • Additionally, according to the regulator, every state will now have a lead insurance company.

Source: Zee Business

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IRDAI permits general insurers to issue sophisticated add-ons for motor insurance 🚗

  • IRDAI has allowed general insurance companies to offer innovative add-ons for own-damage of vehicles depending on the driving history of the owners and the usage of the vehicle.
  • As per IRDAI, general insurers can introduce own-damage cover for motor insurance in three categories - 
    • Pay as you drive: 
      • This will allow the customers to pay the premium based on their usage.
      • The more one uses their vehicle higher the premium they pay.
    • Pay how you drive:
      • This will depend on the driving behavior of the owner.
      • Vehicles with more accidents and fines will have to pay a higher premium.
    • Floater policy: 
      • With this policy, customers can buy just one single policy for covering multiple vehicles including two-wheelers.
  • According to IRDAI, the introduction of the above options will give a much-needed push to motor own damage insurance and help in enhancing its penetration.

Source: The Economic Times

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Team Beshak
Written by,
Team Beshak, We breathe insurance :)

We are a group of young members of the Beshak community. We come together to brainstorm, write relevant and useful content for people (just like us) who want to figure insurance on their own. If you too want to share inputs/write for us - send us a "hey" to info@beshak.org

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