Page 5 - Insurance Times January 2018 Sample

General Insurance

News

Insurance cover to pro- Reliance General Insurance IPO gets SEBI nod

tect your teeth Reliance General Insurance Company, said it has received markets regulator
Sebi's go ahead to float an initial public offering. The
Soon, all dental expenses may be IPO comprises fresh issue of little over 1.67 crore
covered under an shares by Reliance General Insurance besides an of-
insurance policy fer for sale of 5.03 crore shares by Reliance Capital.
for the first time
in India. Ocare The company plans to utilise the proceeds from the
founded by Neeraj fresh issue towards augmenting the solvency margin and consequently increas-
Sheth, a dentist ing the solvency ratio. Besides, the money will be used to meet future capital
from Mumbai, has requirements, which are expected to arise out of growth.
applied for a license to float a den- The Securities and Exchange Board of India has issued its final "observations" to
tal insurance company. There are the draft papers filed by Reliance General Insurance in October, the company
five standalone health insurance said in a statement. The regulator's "observations" are very important for any
companies in India but none provide company to launch any public offers. At the end of March this year, Reliance
complete dental cover. This com- General Insurance's book value stood at Rs 1,250 crore.
pany may offer cosmetic dental sur-
geries apart from teeth extraction NIC & ICICI Lombard face Rs. 300-crore payout on Fire
procedures and others.
at Haldiram`s
"We are looking to start as a dental National Insurance Company Limited and ICICI Lombard may take a combined
insurance company and expand into hit of Rs 300 crore from the fire that gutted the
other healthcare insurance," said manufacturing unit of Haldiram's, the biggest sweets
Neeraj Sheth founder Ocare. "Today, and snacks maker in the country. The fire, which had
only those procedures are covered,
raged for 15 hours from September 6 and had taken
which requires domiciliary medical more than 100 fire tenders and more than 200 fire-
care." The dental service market is
around Rs 12,000 crore. There is no fighters to douse, destroyed a new manufacturing
insurance company offering dental unit with modern machines in Noida's Sector 68.
insurance to individuals. Today, root National Insurance Company has paid the first cheque of Rs 50 crore on account
canal costs Rs 1,500-8,000, teeth ex- of loss due to fire. "The claim has come due to fire in one of the units which had
traction up to Rs 800. Cosmetic den- modern equipment and were manufacturing automated potato chips and other
tal surgery costs upwards of Rs snacks," said National Insurance Company chairman K Sanath Kumar. "Our claim
25,000 and is not covered under any payout may be around Rs 300 crore including losses due to fire and business
group insurance policy. interruption," he said.
Health insurance is the fastest grow- Kumar said that Haldiram's is reconstructing the unit quickly so there may not
ing segment in the general insur- be huge claims due to business interruption. According to an executive aware
ance segment. It contributes 30% to of the matter, the property damage is estimated at Rs 250 crore and business
the sector. interruption loss, about Rs 430 crore.
The Insurance Times, January 2018 5

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