Page 7 - Insurance Times June 2023

insurance regulator advised all Life In-
Cattle insurance scheme in Rajasthan to benefit 2
surers to stop accepting credit cards as
million rearers a mode of re-payment of loans
Looking at the importance of animal husbandry in the economy of Rajasthan, granted against insurance policies.
the state government is providing schemes, including recently launched in- "The Authority has decided to stop the
surance cover for milch cattle. facility of re-payment of loans taken
In inflation-relief camps, or "Mehangai Rahat" camps, a scheme of against the insurance policy using
credit card as a mode of payment.
Rajasthan government, launched recently and slated to continue till June
Accordingly, all Life Insurers are ad-
30, those in cattle rearing are being provided insurance cover of Rs 40,000
each for two milch cows under the Mukhyamantri Kamdhenu Pashu Bima vised to stop the acceptance of credit
card as a mode of re-payment of loans
Yojana.
granted against insurance policies with
According to the scheme, Rs 750 crore would be spent a year and more
immediate effect," the IRDAI said in
than 2 million cattle rearers would benefit from it. The scheme is free for
the circular.
rearers with an annual income up to Rs 8 lakh a year, while those earning
more have to pay Rs 200 per animal per annum.
New India Assurance loses
Insurance Claim disburse- Comparatively, enrollments under the
scheme fell in FY22 by 20.6 per cent to tag of A-I's 'lead insurer' to
ments under PMJJBY shots 25.4 million after rising by 191 per cent Tata AIG General Insur-

up 438% in financial year to 32 million in FY21. In FY23, annual ance
enrollment under the scheme reached
2022 its highest level at 33 million, growing After the Tata group's takeover of Air
Disbursal of claims under the Pradhan 30 per cent. India, New India Assurance has lost its
Mantri Jeevan Jyoti Bima Yojana tag of the airline's "lead insurer" to a
(PMJJBY), which offers death coverage IRDAI ban repayment of firm from the conglomerate.
due to any reason, shot up by 438 per New India Assurance had been the
insurance loan by credit
cent in 2021-22 to 340,192, reflecting
lead insurer for the account of Air In-
the higher number of deaths during the card
dia for decades. It lost the tag to Tata
second wave of Covid. IRDAI has decided to stop the facility AIG General insurance - for the first
of re-payment of loans taken against
In 2020-21, disbursal of claims under time - during the recent renewal of Air
Life Insurance policies through credit
the scheme increased 49.2 per cent to India's cover for 2023-24, despite sig-
cards.
63,181, according to data released by nificant hardening of the international
the finance ministry. In a circular dated May 4, 2023, the reinsurance market.

The Insurance Times June 2023 7