Page 7 - Insurance Times JUNE 2022

the insurance premium initially to reinsurers from disclosing underwriting ence for electric vehicles, including the
popularise it, though in the long run, profits for each segment. The relax- instances of fire that are coming up,"
it is desirable that such products be ations follow representation from com- said Adarsh Agarwal, chief distribution
made affordable to smallscale fishers panies and are aimed at bringing the officer at Digit Insurance. If more such
and farmers. It also recommended insurance markets onshore. events take place, the company could
that micro insurance can be a poten- incorporate such risk while pricing pre-
RecentlyIRDAI issued a circular ex-
tial solution as effective linkages be- miums, he said.
empting foreign reinsurance branches
tween insurance companies and fishers
from publishing their financial results in
are yet to be developed. newspapers and from filing steward- NIC's drone insurance
ship returns where they disclose their
Insurers get nod to design action taken as investors in companies. policy getting good trac-
products for fire, allied The regulator has also exempted all tion
general insurance companies and rein- With the surge in sale of unmanned
perils
surance branches from making public aerial vehicles (UAVs) or remotely pi-
In order to increase insurance penetra- disclosures on their underwriting per-
loted aerial systems, the drone insur-
tion and provide a wider choice to poli- formance segment-wise.
ance policy of the National Insurance
cyholders, IRDAI has allowed insurance
According to an insurance broker, if Co (NIC), the first-of-its-kind from a
companies to design new and
India wants to increase domestic rein- PSU general insurer, is getting a good
customised products for dwellings, mi-
surance capacity or seek to become a traction in the market.
cro and small enterprises for Fire and
regional reinsurance hub, it needs a
allied perils. Mr.Ashok Kumar Lahuty,appointed ac-
regulatory environment that will draw
tuary and chief risk officer told that it
The regulator has issued a circular in
international companies. He added
has already written some drone poli-
this regard. "This move will enable in-
that many large reinsurers do not need
cies. Besides, it is getting lot of propos-
surance companies to broaden the
a local presence as they can do busi-
als and queries in this regard. The ar-
coverage already provided in the stan- ness overseas, and a local presence
eas where it has issued policies include
dard products by offering innovative
adds to compliance costs.
agriculture, training, BVLOS, survey
add-ons or varying the existing provi-
sions to meet the needs of the policy- Insurance Premiums on 2- and mapping, aerospace and
holders in terms of suitability and materology and aerial photography. "It
wheeler EVs may rise
affordability," IRDAI said in a release. is going to be a huge market," said
Insurance premiums on two-wheeler Lahuty.
The move by the regulator comes af-
electric vehicles (EVs) may rise as insur-
ter the introduction of standard prod- According to The Drone Rules, 2021,
ers reassess risk based on recent fires
ucts in this segment, namely Bharat drones can be significant creators of
and malfunctions. While deaths and
Griha Raksha, Bharat Sookshma employment and economic growth due
injuries due to accidents will be cov-
Udyam Suraksha and Bharat Laghu to their reach, versatility, and ease of
ered under existing insurance plans, EV
Udyam Suraksha in April 2021.
makers may have to compensate for use, especially in India's remote and
IRDAI has clarified that it does not damage or loss of life due to manufac- inaccessible areas. "India has the po-
impose any minimum rate for premium turing defects. tential to be global drone hub by
setting by insurance and reinsurance 2030," it added.
There have been multiple two-wheeler
companies in order to provide clarity
fires said to involve batteries recently, Based on their weight, drones can be
to insurers.
with some even resulting in loss of life. divided into five categories - nano
This prompted roads, transport and (weighing up to 250 g), micro (250 g
Compliance for foreign re-
highways minister Nitin Gadkari to to 2 kg), small (2-25 kg), medium (25-
insurance units eased caution manufacturers, saying the 150 kg), and large (over 150 kg). All
government will order a recall of faulty
IRDAI has rationalised the compliance drones except nano require a licenced
vehicles and impose penalties on any
norms for branches of foreign reinsur- pilot and permit from the Director
company found to be negligent in its
ance companies, including Lloyds, op- General of Civil Aviation (DGCA). Alti-
processes.
erating in India. The regulator has also tude and speed restrictions vary across
exempted non-life insurers and foreign "We are monitoring the claims experi- categories.
The Insurance Times, June 2022 7