Page 7 - Insurance Times August New 2023

Odisha tragedy: Only 30% ance cover. Those who reserved tick-
Govt proposes 3rd-party
ets through IRCTC booking portal can
opted for world's cheap-
motor insurance premi- opt for accident insurance for Rs 10
est travel insurance lakhs by paying a paltry premium of Re
ums
With only a small number of passengers 0.35 paise.
The government proposed new
of two ill-fated trains involved in the The policy covers death/disabilities/
base premium rates for third-party
June 2 Odisha tragedy seems to have medical expenses due to a train acci-
motor insurance for different cat-
opted for the Rs 10 lakhs insurance dent during the travel.
egories of vehicles, including two-
cover by paying just Re.035 paise and
wheelers, passenger cars, and com- Both the companies declined to answer
now it is time for the Centre to bundle
mercial vehicles, for 2023-24 fiscal as to how the number of policies are
the cover with all the tickets booked
year. divided between the two insurers
through the Indian Railway Catering
when the tickets are booked.
According to a draft notification is- and Tourism Corporation Ltd's (IRCTC)
sued by the Ministry of Road Trans- online portal, said insurance profes-
port and Highways (MoRTH), the sionals. General Insurers face
base premium rates for Motor Third As per the initial indications, only a tough choice on pushing
Party Insurance Cover have been
small number of passengers of the two
proposed at Rs 2,094 for private cars growth and sustaining
passenger trains have opted for the
below 1,000 cc, Rs 3,416 for cars travel accident insurance cover while margins
(between 1000-1500 cc), and Rs booking through the IRCTC portal. The country's general insurance com-
7,897 for cars exceeding 1500 cc.
Replying to a list of questions sent to panies are currently grappling with a
The draft Motor Third Party Pre- SBI General Insurance's Managing Di- crucial dilemma between pursuing
mium and Liability Rules for the Fi- rector and Chief Executive Officer growth and maintaining profitability at
nancial Year (FY) 2023-24 has been (CEO) Kishore Kumar Poludasu, a com- a time when they are allowed to spend
prepared in consultation with Insur- pany spokesperson told: "As per data more on operating expenses even as
ance Regulatory and Development available, SBI General has covered 351 their margins have been narrowing.
Authority of India (IRDAI), the min- passengers."
In the fiscal year 2023, the combined
istry said.
According to the SBI General Insur- ratio - an indicator of profitability,
For two-wheelers not exceeding 75 ance official, a few claims for injury which is calculated by measuring the
cc, the rates have been proposed at have been lodged with the company sum of incurred losses and operating
Rs 538, while for two-wheelers up by the passengers of the two trains. expenses as a percentage of earned
to 350 cc and above the proposed premium - rose for almost all general
The IRCTC has selected SBI General
rates vary in the range of Rs 714 and Insurance and Liberty General Insur- insurers.
Rs 2,804. ance to offer the travel accident insur- If the combined ratio is below 100%,

The Insurance Times August 2023 7