Page 53 - The Insurance Times August 2024

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Goods vehicle insurer must pay passen- exposed. All three are absconding. The scam involved ob-
taining death certificates and cremation receipts with the
ger accident claims: HC help of a medical practitioner, identified as Dr Ashutosh
Insurance companies must compensate victims of motor acci- Yadav, 50, who is also absconding.
dents, even if the passengers were travelling illegally in a goods Investigations revealed that Kanchan alias Pavitra had
vehicle, Gujarat HC has ruled. The insurer can later recover taken insurance policies from a total of five private compa-
the amount from the vehicle owner, HC said. The case involved nies using two separate Aadhaar card and PAN card.
a tanker accident in Banaskantha in May 1995, which resulted
in injuries and fatalities among the passengers.
Zurich Insurance to increase India staff
Five claims were made under Motor Vehicles Act. In 2005, Zurich Insurance Group AG plans to increase headcount in
a tribunal ordered New India Assurance Co Ltd to compen- India by 40% over the next three years, adding 600 people
sate the victims and later reclaim the amount from the following its acquisition of a majority stake in Kotak
tanker owner, as the vehicle was insured. Mahindra Bank Ltd.'s general insurance unit.
The insurance company contested this decision in HC, ar- The Swiss firm is pursuing growth in the "super important,
guing that it should not be held responsible for illegal pas- super attractive market" as it looks to expand business
sengers in a goods vehicle. They maintained that the "across the board", said its chief executive officer for Asia
vehicle's insurance did not cover passengers since it was Pacific.
meant to carry only one person, and the vehicle owner vio-
lated provisions of MV Act. "India will soon be the world's third largest economy, the
largest working age population, the biggest middle class
After hearing the case, Justice Sandeep Bhatt said, "The amongst emerging markets, the strongest route of growth
manifest object of provisions of MV Act is to ensure that in the G20 for insurance," Tulsi Naidu said in an interview.
the party, who suffers injuries due to use of motorcycle, will
There are opportunities to grow in commercial, small and
be able to get damages for the injuries sustained or death.
medium enterprise, assurance, auto and general insurance,
Naidu said, noting the business has already recorded growth
Woman 'dies' twice as hubby son claim
of 40% "over the past few years."
Rs. 1.1 crore insurance "The penetration level for general insurance in India is a

In an insurance fraud involving Rs 1.1 crore in claims of quarter of the world average," she said. "We see the de-
which close to Rs 70 lakh was already received, a 45-year- velopment of digital as one of the things that is a big en-
old woman from Bhayander, Kanchan Pai, also known as abler in terms of insurance access."
Pavitra, allegedly faked her death twice in two years, re- The Swiss firm completed its 55.6 billion rupee ($666 mil-
ported.
lion) purchase of a 70% stake in Kotak General Insurance
Her husband and son collectively claimed Rs 1.1 crore from Company Ltd. last week, becoming the first foreign insurer
five private sector insurance companies between 2021 and to enter the country after investment limits were relaxed
2023. in 2021. Pending and completed insurance deals for India

They had received nearly Rs 70 lakh in death claims and assets over the past five years total more than $14 billion,
were awaiting the remaining amount when the fraud was according to data compiled by Bloomberg.

48 August 2024 The Insurance Times