Page 5 - Insurance Times June 2019

General Insurance

Drivers using mobile likely meet accident 4 times more,
Insurers prepare for 'Cy-
says WHO
clone Fani' claims
Drivers, who use mobile phones during driving, are likely to meet with accident
Insurers are taking preparation to
four times more, as stated by World Health Organi-
p r o c e s s
zation. Using mobile phones on roads poses a much
claims af-
higher risk for all road-users. As per WHO, no con-
ter cyclone
clusive evidences are there to show that hands-free
F a n i
devices are safer than hand-held phones indicating
devasted
how distraction in any form increases manifold the
parts of Odisha. However, many say
chances of accidents.
underinsurance continues to be the
Several studies across the globe suggest that drivers take their eyes off the road
bigger challenge.
for an average of 4.6 seconds out of every 6 seconds while texting. This means
"The unfortunate reality is that the
a driver would cover a football field without looking at the road while driving
uninsured losses in most natural ca-
at a speed of 80-90kmph and texting. The WHO says the use of a mobile phone
lamities are much higher. I don not
can impair the performance of several driving tasks, leading to longer reaction
think the situation will be much dif-
times to detect and respond to unexpected driving-related events, impaired
ferent here," said Roopam Asthana,
ability to maintain correct lane position and slower braking reactions with more
CEO and whole-time director, Liberty
intensive braking and shorter stopping distances.
General Insurance.
While developed countries identified the use of mobile phones as a major risk
Mostly, claims for damage of prop-
factor for road fatalities nearly 7-8 years ago, it was only in 2016 that the In-
erty, hospitalization, vehicles and
dian government took note of this emerging crisis. According to the annual road
some for damage to crops are ex-
accident data published by the road transport ministry, while 2,138 people were
pected. However, due to State's im- killed in 2016 in accidents caused due to use of mobile phones, 4,746 were
proved disaster management effort, injured. The deaths increased to 3,172 in 2017 and the number of people in-
life insurance claims are expected to jured also rose to 7,830. "Still the actual number of people killed in such acci-
be largely less. dents is not properly captured. The government has made a good beginning
and we hope there will be an improvement in the data," said K K Kapila, chief
The general insurance density in
of the International Road Federation.
Odisha is at Rs 706 in 2017-18,
which was lower than that in a num-
ber of States. Insurance density is Chola MS registers Rs 4,428 cr premium in FY 19
defined as the ratio of premium un-
Cholamandalam MS General Insurance Com-
derwritten in a given year to the to-
pany, said it has achieved a Gross Written Pre-
tal population. An executive with an
mium of Rs 4,428 crore during FY19, registering
insurance company said, "Insurance
a year-on-year growth of 8 per cent. Profit be-
companies will now begin work and
fore taxes (before exceptional items) stood at Rs
set up camps to process insurance
314 crore, with an investment corpus of over Rs
claims in the State."
7,600 crore.
The Insurance Times, June 2019 5