Page 5 - The Insurance Times October 2021

General Insurance News

United India Insurance gets is mandatory for coverage of bumper made the scheme optional and slashed
to bumper insurance, in addition to its contribution.
new Chairman-MD covering the driver, passengers and
The government has appointed owner of the vehicle, for a period of Gross premium underwritten by gen-
eral insurers has fallen by 12.37 per
Satyajit Tripathy, as the Chairman and five years. Thereafter, the owner of cent to Rs 4,221 crore in the four-
MD of Chennai based United India In- the vehicle must be cautious in safe- month period ended July 2021 as
surance (UII), the second largest gen- guarding the interest of driver, passen- against Rs 4,817 crore in the year-ago
eral insurer in the country. gers, third parties and himself/herself, period. This follows the 16.76 per cent
Though earlier the Banks Board Bureau so as to avoid unnecessary liability be- decline in crop insurance premium to
(BBB) - the recommending body for the ing foisted on the owner of the ve- Rs 19,071 crore (excluding Agriculture
appointment of CMDs, CEOs and MDs hicle," said Justice S Vaidyanathan. Insurance Corporation) in the
of public sector banks and insurance Rebuking the practice of third-party fiscal ended March 2021 as against
companies - had chosen Inderjeet insurance which covers only others and Rs 22,911 crore in the previous
Singh, General Manager, New India not the occupants of the vehicle con- year, according to figures available
Assurance, for ULL's top position, it cerned, Justice Vaidyanathan said: from General Insurance Council (GI
could not be approved by the Appoint- "When a buyer is ready to pay a huge Council).
ments Committee of the Cabinet (ACC) amount for purchase of a vehicle, it is Public sector insurance firms - particu-
for some technical reasons, source really shocking as to why he is not in- larly country's largest general insurer,
said. terested in spending a paltry sum to
New India Assurance - have almost
The ACC has approved the proposal of take a policy to safeguard himself/her- reduced their exposure to nil in the
the Department of Financial Services self and others…"It is saddening to four months of the current financial
for appointment of Tripathy as CMD of point out that when a vehicle is sold, year. All the four PSU insurers - New
UII till February 2024. the buyer is not clearly informed about India Assurance, United India Insur-
the terms of policy and its importance. ance, National Insurance and Oriental
5-year bumper-to-bumper Insurers cut exposure to Insurance - have a combined exposure
insurance must for new govt's crop cover scheme of just Rs 3.8 crore in the period.
vehicles in TN: Madras HC PMFBY ICICI Lombard ceases to be

In a ruling that may increase the over- General insurance companies are
all cost of new vehicles, the Madras gradually reducing their exposure to a subsidiary of ICICI Bank
high court said five-year bumper-to- the crop insurance segment, the ICICI Lombard General Insurance has
bumper insurance will be mandatory ceased to be a subsidiary of ICICI Bank.
Pradhan Mantri Fasal Bima Yojana
for all vehicles sold after September 1.
(PMFBY), in a bid to balance their port- "With the bank's shareholding reduc-
"This court directs that whenever a folios and cut down losses on account ing from 51.86-48.08 per cent, ICICI
new vehicle is sold after 01.09.2021, it of high claims, even as the Centre Lombard has ceased to be a subsidiary
The Insurance Times, October 2021 5