Page 6 - The Insurance Times May 2021

Dhyanesh Bhatt, Co-Founder & CEO, agents, 60+ corporate agents, and certificate of personal vehicles and
Gramcover, expressed excitement 17,000+ cashless claims service points 15% for transport vehicles. This rule is
about this partnership, "We should be (10,000 hospitals and 7,700 garages) proposed to come into effect from
able to create significant impact in the across the cities in India. October 1, 2021 as a part of the newly
coming years as we bring various rural While the year 2020 presented the introduced vehicle scrappage policy.
relevant product like parametric
world with challenges, 2021 is According to the new notification
insurance, price insurance, livestock
expected to be the year of hope. To issued by the ministry, in case a new
insurance etc to the rural customer at
corroborate this, the company has vehicle is registered against the
scale in a sustainable manner, thus recently launched campaign submission of "Certificate of vehicle
increasing their financial resilience."
#21ReasonsWhy with a motto to scrapping", it can avail a concession in
establish itself as a 'One-Stop-Shop' for the motor vehicle tax up to 25% for the
Motor insurance all the insurance needs of their non-transport vehicles; and up to 15%
premiums remain in customers, be it protecting in case of transport vehicles. These
themselves, their loved ones against concessions will be available up to 8
contraction till February
any medical exigency or protecting years for transport vehicles, and up to
The biggest business of non-life their movable/non-moveable priced 15 years for private vehicles.
insurers, motor insurance, is still in possessions. The #21ReasonsWhy is a The ministry has also invited
contraction. Till February, the segment 360-degree campaign across all the suggestions from the stakeholders on
has shrunk 4% in premiums collected. brands communication platforms the draft rules over the next month,
In the same period, the health including social media. after which it will issue the final
insurance premiums have grown by notification.
13%, with retail health rising 28%. Speaking on the campaign, Mehmood
Mansoori, President - Shared Services The scrappage eligibility of a vehicle
While group health has seen a growth & Online Business, HDFC ERGO will be primarily based on the fitness
of 9%, government schemes and
General Insurance, said, "The year of the vehicles through the Automated
overseas medical segments 2020 allowed us to reflect individually Fitness Centres in case of commercial
contracted. Among other segments, and prioritise our lives and that of our vehicles and non-renewal of
fire insurance premium is growing at loved ones over everything else. It has registration for the private vehicles. As
more than 28%, while engineering is allowed individuals to focus on having the vehicle scrappage policy has
increasing at 10%. Crop insurance the right insurance products to protect proposed, the commercial vehicles will
premiums have seen a decline of ourselves and our assets. Our be deregistered after 15 years in case
almost 6% till February. Overall, the campaign #21ReasonsWhy, focuses on of failure to get the fitness certificate.
premium of non-life insurers has seen educating consumers about their
a growth of 4% till February.
financial well-being and the Government may hike FDI
importance of insurance to deal with
HDFC ERGO crosses Rs. any unforeseen situations. The limit in pension sector to
10,900 crores in gross campaign will also highlight what 74%
consumers should expect from insurers The government may hike Foreign
premium; launches
and to consider the right insurance Direct Investment limit in the pension
#21ReasonsWhy campaign brand by asking questions that matter sector to 74% and a Bill in this regard
HDFC ERGO General Insurance the most while purchasing one." is expected to come in the next
Company has emerged as the most Parliament session. Currently, the FDI
preferred insurer in India by crossing Car owners can avail 25% in the pension fund is capped at 49%.
Rs. 10,900 crore in gross premium concession on road tax Parliament has recently approved a Bill
income YTD Feb 2021, covering more to increase FDI limit in the insurance
than 1.5 crores lives. against scrappage sector from 49% to 74%. Amendment
This growth during the pandemic has certificate to Pension Fund Regulatory and

been facilitated by HDFC ERGO's The Ministry of Road, Transport, and Development Authority (PFRDA) Act,
largest distribution network of 203 Highways has proposed a concession of 2013 seeking to raise FDI limit in the
branches, 323 digital offices, 1,40,000+ 25% in road tax against the scrappage pension sector may come in the

6 The Insurance Times, May 2021