Page 5 - Insurance Times March 2017 Sample

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General Insurance

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Compensation on faulty Time limit to be implemented for filing insurance

designs in MV Act claims

Provisions to com- The government is considering a time vided for a similar deadline till 1994
pensate vehicle limit for filing insurance claims in road but was removed by Parliament after
owners "suitably" accidents to make the pro- the Supreme Court observed
or reimburse the cess of giving compensation in one of its judgments that
"total cost" over more proficient and sooner. compensation should not be
faulty designs may denied on account of delay
be included in the The General Insurance in filing of a case.
motor vehicles act, a parliamentary Council, the association of
panel has suggested. The panel said 30 insurance companies, The move, he said, will also
the provision would help curb mal- has recommended a deadline of one bring down rampant forged claims that
practices by automakers and also year for insurance claims in case of are made years after the accident. The
proposed penalties if defective ve- death in road accidents and six months Council made a submission in this regard
hicles harm the environment. Over for injuries. R Chandrasekaran, Secre- before the Parliamentary Standing Com-
three lakh vehicles have been recalled tary General, General Insurance Coun- mittee on Transport, Tourism and Cul-
in India, including 41,580 by Japan's cil, said the Motor Vehicles Act pro- ture last November.
Honda last month to rectify faulty
airbags. Growth trajectory of the insurance industry visible
Govt. asks Oriental and The insurance industry in the country is set on motion and is expected to grow
UIIC to check into finance considerably in near future due to rising financial literacy, according to a re-
cent report. 'Insurance - Sectoral Outlook 2017', a report by Dun and
Finance ministry has asked Oriental Bradstreet, says that with the liberalisation of foreign direct investment norms
Insurance Co. Ltd and United India In- in the sector, many foreign insurance firms have entered India to explore the
surance Co. Ltd-to check their fi- untapped potential of this industry.
nances as the government looks to list
the state-owned non-life firms. Bharti AXA appoints new MD & CEO
"There are issues with two firms and
they have been asked to pull up their Bharti AXA General Insurance has appointed Sanjeev
socks and force up their finances," Srinivasan as CEO and Managing Director of the com-
people familiar with the matter said. pany. Srinivasan joined Bharti AXA General Insurance
Due to huge underwriting losses, in August 2016 as Chief Commercial and Principal Of-
United India Insurance and Oriental ficer and now takes over the role of CEO and MD.
Insurance have suffered net losses of
Rs 429 crore and Rs 382 crore, re- His main focus will be to drive Bharti AXA's go- to-
spectively in the first half of the cur- market strategy of creating a balanced portfolio,
rent fiscal. Both were profitable com- driving new distribution tie-ups and creating a cus-
panies in the year ago period. tomer centric brand to drive profitable growth.
The Insurance Times, March 2017 5

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