Page 8 - Insurance Times June 2023

Air India's renewal premium has re- garages in the event of a claim, said a
Chola MS General In-
mained at $30 million, the same as last statement.
surance plans to re-en- year.
It has also introduced two add-on cov-
ter crop insurance busi- "With a good track record, AI has ers for two-wheeler policies. The add-
managed to hold on to last year's pre- on 'Roadside Assistance' will cover 11
ness
mium of $30 million for a policy of $10 emergency services, which can rescue
Cholamandalam MS General Insur-
billion, though the international avia- an immobilised two-wheeler. The ser-
ance Company Ltd (Chola MS), is
tion market has remained tough ow- vices can be requested for electrical,
planning to re-enter the Rs. 25,000
ing to the Russian invasion of Ukraine mechanical, or accidental breakdown.
crore crop insurance business after
that has affected the aviation reinsur-
'Return to Invoice' add-on cover comes
a gap of three years.
ance market badly," London market
with two plans which will seek to pro-
"Nearly three years ago, we took sources said.
tect the two-wheeler insurance cus-
a pause from the crop insurance
Like all aviation insurance policies, the tomers to get their invoice value of the
business. This year, we are looking
Air India policy, with a sum assured of vehicle in case of a total loss, including
to re-enter into the crop insurance
$10 billion, is reinsurance driven and theft of the vehicle. As per the plan
space. We have even secured re-
almost 95 per cent of the premium is chosen, road tax, registration charges,
insurance arrangements for that,"
passed on to global reinsurers who re- and insurance costs are also covered
said V Suryanarayanan, MD, Chola
insure the cover. Though Tata AIG by the customer.
MS.
General Insurance is the lead insurer,
"With a greater number of vehicles
Suryanarayanan said the crop in- the ultimate responsibility of paying
hitting the roads every day, the num-
surance business is estimated to any claims lies with the reinsurers.
ber of road accidents is also rising.
be around Rs. 25,000 crore, out of
Led by AIG, a clutch of global These add-ons will greatly benefit in-
which public sector insurers handle
reinsurers, including India's GIC Re, sured customers in case of any contin-
about Rs. 12,000 crore while the
have reinsured the cover which is gency to the vehicle," said MS
remaining Rs.13,000 crore busi-
shared by a consortium of public and Sreedhar, Managing Director, Royal
ness is split among the private in-
private domestic general insurers in- Sundaram General Insurance Co Ltd.
surance players. He added that
cluding New India Assurance, United
the company has quit the crop in-
India Insurance, Oriental Insurance PSU General Insurers to
surance business due to issues like
Company and National Insurance Com-
non-receipt of premium from some monetise realty assets un-
pany, Tata AIG General Insurance and
state governments.
ICICI Lombard General Insurance. der infusion plan
In the general insurance industry,
Capital-starved state-run general insur-
nearly 80 per cent of the business Royal Sundaram General ance firms are eyeing monetisation of
comes from motor and health in- their real estate assets with the gov-
Insurance launched add-
surance, followed by property in-
ernment making any future capital in-
surance (12 per cent) and the re- on covers for vehicle in- fusion conditional. Capital infusion by
maining from crop insurance. the government is contingent to their
surance
Suryanarayanan highlighted that performance on monetisation and
Royal Sundaram General Insurance Co.
crop insurance is a tender-based other financial and operational param-
Ltd has introduced three add-on cov-
business and insurance companies eters, said officials aware of the mat-
ers for its vehicle insurance policies.It
have to compete through a tender ter.
has announced a 'Smart Save' add-on
process to get into a particular
cover for private cars. This comes at a The monetisation of commercial and
State. He said the company is look-
zero cost and will help the customer to residential real estate asset is part of
ing to operate in States like
get an upfront discount in Own Dam- a five-pronged strategy being worked
Madhya Pradesh, West Bengal,
age (OD) insurance premium, for re- out by the insurers--which also includes
Uttar Pradesh and parts of
pairing their vehicles at Royal further expansion of their motor and
Rajasthan and Maharashtra.
Sundaram's identified repair shops and health portfolios and upgrade of risk
8 June 2023 The Insurance Times