Page 7 - Insurance Times March 2016 Sample
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M&A plunge into action after FDI hike in insurance Health Insurance Policy
to cover overseas treat-
With the Centre relaxing FDI for insur- Aegon in Aegon Religare Life Insurance.
ance, this sector is set for a spate of Anuj Sah, Associate Partner with law ment & travel
M&A in 2016. Already seven companies firm Khaitan & Co, said that out of the
have announced deals where the foreign 35 joint ventures in the life and general Apollo Munich is set to launch Criti-
partners are raising their stake from 26 insurance industry, at least half of them cal Advantage, which covers eight
per cent to 49 per cent. critical illnesses treated abroad, and
will see the foreign partners in- will also pay for travel and accommo-
They are - Hong Kong-head- crease their stake.
quartered AIA in Tata AIA Life dation ex-
Insurance Company, UK-based Anuraag Sunder, Director-In- penses for
Bupa in Max Bupa Health In- surance, PwC said, "The FDI the insured
surance, Canadian insurer Sun flows will come over a period and an ac-
Life Financial in Birla Sun Life Insurance, of time and not in one year. companying
French insurer AXA in life and general It was not that the Indian insurance person.
insurance joint venture with Bharti En- sector was starved of capital but the
terprises, German Munich Re's insur- fact is it takes time to do its own due This is offered as a rider with its Op-
ance arm ERGO in HDFC ERGO general diligence. Getting both partners to sit tima Restore or Easy Health policy of
insurance and Dutch insurance group on the table and agree on numbers above Rs 10 lakh and is available for
and way forward is not easy". a sum assured of either Rs 1.5 crore
or Rs 3 crore. The premium for a 35-
Govt to buy drones to evaluate crop damage faster and year-old for the base policy and rider
accurately works out to about Rs 16,000.
In a bid to settle crop insurance claims drone technology", a senior Agricul- "While people have this fear of how
as quickly as possible, the government ture Ministry official told. to choose the best healthcare facil-
has decided to purchase unmanned ity, they also wonder how to fund
aircraft technology 'drone' for assess- Initially, the government will purchase their travel cost," said Antony Jacob,
ing crop damage faster and one drone technology and would order CEO, Apollo Munich Health Insur-
more accurately. ance.
for more after checking the
The move follows a direction feasibility and the Ministry's The new policy helps one to get
from Prime Minister plan is to purchase one treated for cancer, heart replace-
Narendra Modi for using drone for each State and at ment or repair, bone marrow trans-
modern farm technologies to least 20 drones in the next plant, neurosurgery, coronary artery
implement effectively Pradhan Mantri five years the official said. bypass surgery, pulmonary artery
Fasal Bima Yojana from June this year. graft surgery and aorta graft surgery
The cost of one drone and its mainte- under the cashless scheme. The in-
"We have already given an in-principle nance is estimated to be around Rs 70 surer will provide assistance in deter-
approval to National Crop Forecast lakh, which the government has al- mining treatment, travel and accom-
Centre (MNCFC) for purchase of a ready allocated in the 2015-16 Budget, modation of the insured.
the official added.
The plan includes second opinion
80% of vehicles plying on Indian roads don't have insurance option as well. The premium for a
cover of Rs 1.5 crore, or $250,000,
A majority of 'oversized vehicles' in the sion for such vehicles to comply with the for a 35-year-old is Rs 7,767 per an-
country, particularly car and two- norms by reducing their length, width num. For a cover of Rs 3 crore, or
wheeler carriers, are running illegally and height. This deadline was fixed in $500,000, the premium would be Rs
and pose a threat to other road users consultation with the operators and 8,947 a year. This product can only
as they have no insurance cover. SIAM, the apex body of automobile be bought as a rider with its health
manufacturers. insurance product.
Over 80% of over-sized vehicles in the
country are registered in Haryana, in "They have failed to meet the dead-
Gurgaon and Faridabad districts. With- line. We have now started issuing no-
out fitness certificates, the insurance tices to the vehicle carrier owners to
cover of such vehicles cannot be re- follow the rules or face impounding of
newed. In January 2015, the Haryana vehicles," a Haryana transport depart-
government had given one-year exten- ment official said.
The Insurance Times, March 2016 7
