Page 6 - Insurance Times July 2021

The statement said the concept of revenues and increase in health the health and commercial lines
rejection slip is being introduced for expenses on account of the pandemic. segment, and we managed to drive
the first time. Thus, utilization of scarce resources for growth in these lines of business on
"A common format of rejection slip is giving ex-gratia may have the account of increased awareness and
unfortunate consequence of affecting launch of new products."
to be given to the vehicle owner in
the pandemic response and health
case the test result value is more than While the health segment saw a 11 per
the maximum permissible value, as expenditure in other aspects and cent growth at Rs. 457 crore in
mandated in the concerned emission hence cause more damage than FY2020-21 against Rs. 410 crore last
norms," the statement said. good," stated the affidavit filed by year, Retail health grew by 48 per cent
Govind Mohan, additional secretary,
It added that this document can be ministry of home affairs. driven by launch of new products and
shown at the service centre for getting increased awareness due to the
pandemic.
the vehicle serviced or can be used, in
case the PUCC centre device is not Bharti AXA General
working properly when tested at Insurance reports Rs. 120 Payout from EPFO
another centre.
crore PAT insurance scheme is tax
As per the statement, if the Bharti AXA General Insurance recorded free
enforcement officer has reason to a net profit of Rs. 120 crore on a gross
believe that a motor vehicle is not written premium of Rs. 3,183 crore In a bid to support employees affected
complying with provisions of emission during financial year 2020-21. by the coronavirus pandemic, the
standards, he may communicate in Employees' Provident Fund
The insurer had recorded a net loss of Organisation (EPFO) raised the
writing or through electronic mode to
direct the driver or any person in- Rs. 243.63 crore on a gross written maximum benefit available under the
charge of the vehicle to submit the premium of Rs. 3,157 crore in FY20. Employees' Deposit Linked Insurance
vehicle for conducting the test in any Bharti AXA General Insurance achieved (EDLI) scheme from Rs 6 lakh to Rs 7
one of the authorised PUC testing a lower combined ratio at 110.5 per lakh (35 times the basic salary),
stations. cent during FY21 compared to 120.7 according to a gazette notification
per cent in FY20 on account of dated April 29, 2021.
Central Government improved profitability. Market ranking The minimum death benefit under the
of the company in the private General scheme has been fixed at Rs 2.5 lakh,
refuses Rs. 4 lakh ex-gratia Insurance sector also improved to 10th with effect from February 15, 2020. A
compensation for covid from 11th position in previous year bonus is also available under the
despite the pandemic. scheme. The maximum is Rs 1.75 lakh.
victims
Sanjeev Srinivasan, Managing Director Prashant Singh, business head,
Govt has ruled out the grant of ex- and CEO, Bharti AXA General
gratia compensation of Rs. 4 lakh for Insurance, said in a statement, "Owing compliance and payroll outsourcing,
each of the nearly 3.85 lakh persons to the Covid-19 pandemic, FY21 has TeamLease Services, said, "The
who died because of covid-19 in the been a challenging year for the insurance amount is paid to the family
country. industry and especially for us at Bharti of the EDLI scheme subscriber if the
latter dies while in employment."
The finances of both the Centre and AXA General Insurance.
states are under severe strain as a result While the overall demand for goods Covid crisis to weigh on
of reduced tax revenues and increased and services across the economy has
expenditure on health infrastructure been relatively low, consumers felt an earnings of non-life insurers
because of the pandemic, the Centre said evident need of insurance on the back General insurance sector in India which
in an affidavit filed late in the Supreme of the uncertainty the pandemic has grossed around Rs 2 lakh crore of total
Court. brought. This changing consumer premium - might have faced the Covid-

"Already the finances of state behaviour helped us respond with 19 disruptions in a positive manner, but
governments and the central required solutions and agility through rating agencies have given the industry
government are under severe strain tech advancements. Further, the year thumbs down.
because of the reduction in tax demanded realignment with focus on International rating agency AM Best

6 The Insurance Times, July 2021