Page 9 - Insurance Times December 2015 SAMPLE
P. 9
General Insurance
News
Insurers want a game with ISL New India celebrates
The Indian Super League, which has Most of the players are covered for loss 97th foundation day
attracted some of the top - though of fee. It gets triggered when a player
mostly retired - footballers in the gets injured and faces loss of remu- New India Assurance Co. Ltd.,
world, has led insurers to India's Premier
chase the teams and neration. The cover for each General Insur-
organisers for business. Accord- player depends on the con- ance Company
ing to sources, the total insur- tract value. Marquee players celebrated 97th
ance cover for the eight-team command $600,000 and Foundation Day
ISL is Rs. 600 crore. above. The season kicked off on on 22nd Septem-
October 3 and will end in De-
"Each franchise has taken an cember. ber, 2015 in Mumbai with a lecture
insurance cover of Rs. 50 crore for loss on "Regulatory Philosophy in Finan-
of pay, personal accident and public li- A large part of the cover will be rein- cial Sector by M.Damodaran, former
ability," an executive said. The sured within the country, primarily Chairman of SEBI. G. Srinivasan,
organisers have taken an event cancel- with state-run General Insurance Cor- CMD, New India Assurance Co. was
lation insurance of Rs 200 crore to poration. Apart from writing direct in- also present on that occasion.
cover against any loss of revenue from surance, the four public sector insur-
advertisements. Players are insured ance companies - New India Assur- Insurance penetration is
against loss of fees, accidents and also ance, National India, United India
have travel insurance. and Oriental Insurance - also reinsure 3.9% in present India
policies.
Insurance penetration in India at 3.9
Global insurers to face 10% increase in capital charges per cent was
below the world
Global insurers with the greatest ties to government bailouts that were required average of 6.3
the financial system would face an av- in the credit crisis. While more rescue per cent in
erage increase of 10 per cent to capi- funds went to banks, the US had to prop 2013, the Parliament was informed
tal requirements under new standards up insurers led by New York-based Ameri- recently. Minister of State for Fi-
proposed by a group of regulators. can International Group Inc, which was nance Jayant Sinha said the level of
hobbled by losses on derivative bets on insurance penetration depends on a
The increase would be as high as 18.75 sub-prime mortgages. number of factors like, level of eco-
per cent for unregulated-banking activi- nomic development of the country,
ties by firms deemed to be in a riskier The potential for systemic risk in insur- the extent of savings in financial in-
tier, according to documents released by ance may become relevant where in- struments, and the size and reach of
the International Association of Insur- surers significantly deviate from the the insurance sector.
ance Supervisors. For traditional insur- traditional insurance business model,
ance products sold by safer companies, the association said in a fact sheet. The In relation to BRICS countries, India's
it would be 6 per cent. Global regulators rules are designed to reduce the prob- insurance penetration was better
are seeking to limit risk at the biggest ability and impact of distress or failure than China and Russia, but well be-
financial firms to avoid a repeat of the at a major firm. low South Africa, and only a tad
lower than Brazil.
The Insurance Times, December 2015 5
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