Page 6 - Insurance Times July 2022

surance cover of Rs 1 lakh to be pro- Arjun Sharma, practice leader (sports, After the embargo of Russian oil and
vided to the devotees in case of death events & entertainment) at Gallagher tankers, the EU and the United King-
on the temple premises of Char Dham Insurance Brokers. dom agreed to impose a ban on provid-
located in Uttrakhand. ing insurance to any ships carrying Rus-
"This is the first time when insurance UK insurance broker sian oil imports anywhere in the world.
cover is being provided to the pilgrims. Officials hope to have this in place by
Howden to buy 100% in
Letters have been sent to the sub divi- the end of the year, effectively shutting
Indian arm
sional magistrates of Joshimath (for out one of the largest crude oil produc-
Badrinath), Ukhimath (for Kedarnath), UK-headquartered insurance broker ers from the maritime export market.
Badkot (for Yamunotri) and Bhatwadi Howden will increase its stake in its Without insurance, tankers would be
(for Gangotri). They have been asked Indian arm from 49% to 100%. The turned away from global ports.
to inform the committee in case of any group, the largest non-US broker glo-
But while EU officials are celebrating
mishap on the temple premises. After bally, has received regulatory approval
a win, some analysts warn of the wider
the report from the SDM concerned, for the transaction.
economic consequences of clamping
the BKTC will initiate the further
Speaking, Howden India Insurance down on an industry critical to inter-
course of action," said Ajendra Ajay,
Brokers chairman Praveen Vashishta national trade.
chairman of BKTC. He further informed
said that the increase in stake to 100%
"The restrictions on the insurance are
that this year's insurance premium has
would allow the company to pursue
very specific, as it's a distinct market,
been provided by Manav Utthan Sewa
inorganic growth by bringing in more
maritime insurance," Nikolaos
Samiti, a trust run by tourism minister
capital. Although Vashishta did not di-
Satpal Maharaj. Farantouris, Professor of Law at the
vulge the deal size, the transaction is
University of Piraeus, told CGTN.
"From next year onwards, we aim to expected to be in millions of dollars
"That's why many analysts, including
increase the scope of the project, and given that the company ended March
myself, believe there will be an in-
either the committee or the state gov- 2022 with Rs 125 crore of income and
crease in price in the near future, and
ernment will pay for the premium," Rs 34 crore of earnings before interest,
it's possible to see the price of a barrel
the chairman said. He also stated that taxes, depreciation and amortisation
reaching close to 135 dollars."
the insurance has been done through (ebitda).
United India Insurance Company Lim- United India Insurance
The company now targets to double
ited in Dehradun.
business organically by FY26 and may be first up for sell-off
achieve Rs 250 crore of income after
Washed out T20 match to United India Insurance could be the
increasing employee headcount from
top choice for privatisation as the gov-
claim Rs. 45 crore 250 to 400. In India, Howden has built
ernment initiates discussions on plans
a reputation of being an arranger of
The fifth and final T20 cricket match to sell a general insurance company.
speciality insurance covers.
between India and South Africa, which
According to sources, the Centre is ini-
was abandoned because of rain, is
tiating work on the privatisation of a
likely to trigger claims of Rs 40-45 European Union to ban
public sector general insurer.
crore. In a sign of the maturing of
insurance for tankers that
event insurance business in India, com- "United India Insurance is being seen
panies are still willing to cover events carry Russian oil as the first candidate for privatisation
in the general insurance sphere. The
for up to Rs 150 crore even as many The European Union's (EU) announce-
Centre could go in for an Air India-kind
global underwriters are retiring hurt. ment of its sixth package of sanctions,
of stake sale, "said a person close to
including a partial ban on Russian oil
"The international event insurance
the development.
imports, was hugely significant. Foreign
market was severely hit following the
policy chief Josep Borrell called it "a big While discussions have already started
pandemic. It was not just sporting
blow to (Vladimir) Putin's war chest." on the privatisation of a general insur-
events like the Olympics or Wimbledon,
there were thousands of events across One element of the package, a ban on ance company, a formal proposal is yet
the world that got cancelled. The providing insurance on tankers carry- to be formulated.
number of underwriters in the London ing Russian crude oil, looks likely to "Given the financial health of the three
market has reduced by 50%," said have a particularly large impact. PSU general insurers, it is essential that
6 The Insurance Times, July 2022