Page 8 - The Insurance Times January 2025

mandated an audit of all road traffic and deductibles in April 2024, which Falling Coconuts Cause
accident deaths to develop a compre- initiated free pricing in May. The move
hensive plan for reducing fatalities. led to significant premium reductions Twice as Many Accidents
Hospital heads and district health offi- across segments due to heightened as Drunk Driving
cials must report weekly data, includ- competition. The 2024 ACKO Accident Index revealed
ing accident details, response times, However, increased claims from natu- that falling coconuts caused 2.28 times
and treatment provided. Officials aim
ral disasters in 2024, including major more accidents than drunk driving.
to analyze causes such as poor road events in Gujarat and Nagpur, have Stray animals also contributed signifi-
conditions or rash driving and improve pressured insurers' financial stability. cantly to accidents, with stray dogs re-
medical protocols, including faster hos- Discussions are now underway to rein- sponsible for 62% of such incidents.
pital access through green corridors. state benchmark rates set by the In- Metro cities accounted for 78% of road
With over 17,000 annual accidents and surance Information Bureau of India accidents, with Hyderabad and Delhi
6,000 deaths statewide, the initiative
(IIB) to ensure sustainability. This shift NCR leading the list. Bengaluru re-
seeks to address gaps in infrastructure highlights the need for businesses to re- ported the highest pothole-related ac-
and medical care.
evaluate their risk management strat- cidents, while Cyclone Michaung caused
egies and prepare for higher costs in severe flood damage in Chennai. The
Fire and Engineering Insur- the insurance sector. findings underline the critical need for
ance Premiums Expected improved urban infrastructure and
Government to Infuse comprehensive vehicle insurance.
to Rise by 60%
Capital into Weak PSU In-
Businesses in India are bracing for sub- Rs 2.5 Crore Awarded for
stantial increases in fire and engineer- surers 2012 Road Accident; Lok
ing insurance premiums in 2025, with The government is considering a capi-
rates expected to rise by up to 60%. Adalat Resolves Cases
tal infusion of Rs 4,000-5,000 crore in
This surge is driven by escalating claims loss-making state-owned insurers-Na- Worth Rs 239 Crore
from natural disasters and deteriorat-
tional Insurance, United India Insur- The National Lok Adalat in Durgapur
ing loss ratios, prompting reinsurers to
ance, and Oriental Insurance-in the awarded Rs 2.5 crore to the family of
push for corrections.
next fiscal year. The funds aim to im- Ashish Kumar Baral, who died in a
Companies renewing policies mid-year, prove solvency ratios, currently well 2012 road accident in Odisha. Baral, a
particularly in May and June, could below the 1.5 regulatory minimum. project manager at Bhushan Steel, was
face premium hikes of up to 60% based The move will be contingent on insur- killed while returning from work. The
on risk profiles, while those renewing ers showing financial improvement. prolonged case saw delays due to the
earlier in January may see moderate The budget allocation will be reas- acquisition of Bhushan Steel by Tata
increases of 5-10%. This follows the sessed based on performance through Steel and loss of key documents. The
Insurance Regulatory and Develop- December 2024, with the government court directed National Insurance
ment Authority of India (IRDAI) de- also seeking regulatory exemptions for Company to pay the compensation
notifying standardized policy wordings these companies. within a month or face 6% interest.
The Lok Adalat, held nationwide,
settled cases amounting to Rs 239
Kerala Introduces Statewide Cattle Insurance crore in West Bengal.
Scheme
Join
Kerala will launch an insurance scheme covering its entire cattle population,
announced Dairy Development Minister J. Chinchurani. Approved by the Cen- Online Certificate
tre, the scheme aims to bolster the state's dairy sector, alongside initiatives Course on
like extending veterinary ambulance services and maintaining calves. The state
has also introduced two schemes-Arunodayam for heifer development and Marine Insurance
Snehamitram, offering life insurance to dairy farmers. With climate change
causing significant losses, including 550 cattle deaths this year, the govern- For details please visit
ment is committed to mitigating challenges faced by farmers. www.smartonlinecourse.co.in

8 January 2025 The Insurance Times