Page 49 - The Insurance Times January 2025

to 31.68% (31.64% in 2022-23), maintaining its po- 3. Public vs. Private Sector:
sition as a key contributor. Public sector insurers recorded higher claims
3. Fire and Marine Insurance: growth, while private insurers also saw a notable
Fire insurance premiums grew by 7.27%, while increase.
marine insurance grew marginally by 0.65%.
These segments have shown slower growth com- Trends and Insights
pared to health and motor insurance. 1. Growth Leaders:
4. Other Segments: Health and motor insurance are driving the growth
Premium collection in "others" increased from of the general insurance sector.
Rs.48,955 crore to Rs.50,440 crore, showing steady Private sector insurers and SAHI are outperform-
growth. ing public sector insurers in terms of growth rates.

Policies Issued 2. Challenges:
The total number of policies issued increased by Specialized insurers have seen a sharp decline in
11.32%, from 301.81 lakh in 2022-23 to 335.98 lakh in premium collections, which could indicate a need
2023-24. for strategy realignment.
Public and private sector insurers contributed signifi- 3. Opportunities:
cantly, with private sector policies showing a robust With increasing awareness and demand, the health
17.94% growth. insurance segment offers significant potential for
expansion.
Net Incurred Claims
Motor insurance continues to grow, driven by increas-
1. Overall Claims:
ing vehicle penetration and regulatory mandates.
Net incurred claims rose by 15.4%, from
Rs.1,49,312 crore to Rs.1,72,290 crore, indicating This analysis highlights the robust growth in key segments
higher payouts in 2023-24.
like health and motor insurance, with private sector insur-
2. Health Insurance: ers leading the way. However, challenges in specialized seg-
Health insurance claims increased substantially, re- ments and the rising trend in net incurred claims need at-
flecting the growing utilization of health policies. tention for sustainable growth.

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2. Transparency in Insurance Contracts: Insurers must time-consuming dispute over where any claims should be
ensure all policy terms and exclusions are clearly com- handled. It also avoids the risk of multiple claims happening
municated to clients to avoid disputes. in different countries at the same time. The jurisdiction can
also be either "exclusive" or "non-exclusive". In this context,
3. Maritime Risks and Coverage: The case highlighted the
challenges of insuring maritime assets and the need for "exclusive" means that only the specified courts will be able
to hear disputes and "non-exclusive" means the specified
precise definitions of covered risks.
courts have jurisdiction to hear disputes but the parties
The verdict serves as a cautionary tale for insurers and in- aren't prevented from litigating in other courts as well.
sured parties alike. Insurers must align their operations with
jurisdictional laws, while policyholders should meticulously *I am thankful to Dr.S.Mukherjee, a Maritime Legal Expert
review contract terms to safeguard their interests. This land- and International Investigator for Maritime Fraud for his
mark judgment continues to inform insurance practices, advice.
particularly in cross-jurisdictional agreements. Dr.Soumi Mukherjee completed her Graduation in Mass
Insurance policies still consist of jurisdiction clause, which Media and Masters in Mass Media from University of
determines where any associated legal claims would be Mumbai, later completed her Ph.d. She is interested in
heard. This clause is important because it allows both the Investigative Journalism related with History, Geography,
parties to avoid certain countries' courts if they wish, and if Zoology etc. She is currently serving in Media Officer
it is not mentioned clearly, one could face an expensive and with International Police Organization.

44 January 2025 The Insurance Times