Page 7 - Insurance Times May 2023

More than 50% vehicles ance and chairman of the General In-
Insurance premium may
surance Council.
not insured: Govt
increase due to harden-
The insurance regulator has been dis-
More than 50% of vehicles on Indian
ing of reinsurance rates cussing several measures to insure ve-
roads are operating without the man-
hicles operating without cover. IRDAI
Property insurance is likely to cost
datory thirdparty insurance. This was
had suggested that insurance compa-
more for large risks with insurance
disclosed by the government in re-
companies anticipating a hardening nies could engage with state govern-
sponse to a Parliament query. Minister
ments and compare data from the re-
of rates in the reinsurance markets.
of state for finance Bhagwat Karad,
gional transport offices with insured
Most large insurance covers are re-
replying to a query from Lavu Sri
vehicle data to ensure complete cov-
newed in alignment with the finan-
Krishna Devarayalu, said that there are
erage.
cial year, with policies starting from
30.5 crore vehicles on Indian roads.
April 1.
This is, according to data from the road
EV charging stations sus-
For the first time, many non-life in- transport and highways ministry and
surance companies have decided to does not include MP, AP and ceptible to cyber attacks
link the pricing of fire insurance poli- Lakshadeep. Of these vehicles, 16.5 Electric vehicle charging stations are
cies to individual claims experience. crore are uninsured. also susceptible to cyber attacks and
According to industry sources, the cyber security incidents like any other
The minister also said there is no pro-
revision follows the regulator's di- technological application, Parliament
posal to provide onthespot third party
rective that rates published by the was informed. In a written reply to Lok
insurance cover for motor vehicles, and
insurance information bureau need Sabha, Union Minister Nitin Gadkari
there is no deadline for covering unin-
not be treated as a minimum rate. said the Indian ComputerEmergency
sured vehicles. Thirdparty insurance is
Response Team (CERT-In), which is
Linking insurance rates to the track designed to provide compensation for
mandated to track and monitor cyber
record of a policyholder enables com- victims of road accidents. There are
security incidents in India, received
panies to give discounts to a maxi- many uninsured vehicles asthere is no
reports of vulnerabilities in products
mum number of customers as claims mechanism to ensure compliance.
in property insurance have a low fre- and applications related to electric
"Thirdparty motor insurance is manda-
quency as against motor or health vehicle charging stations.
tory in India. However, many vehicles
insurance. However, claim experi- "The government is fully cognizant and
remain uninsured. Often accident vic-
ence-based pricing is bad news for aware of various cyber security threats
tims are unable to get adequate com-
anyone who has had a large claim in and is actively taking steps to combat
pensation because of the lack of mo-
the last three years. Insurers are the issue of hacking," Gadkari said.
tor insurance, and each year this
doubling rates for those who have
pushes thousands of families below the He said as per the information reported
reported claims that are more than
poverty line," said Tapan Singhel, MD to and tracked by CERT-In, the number
three times the premium paid.
& CEO of Bajaj Allianz General Insur- of cyber security incidents during 2018,
The Insurance Times May 2023 7