Page 9 - The Insurance Times April 2025

not only incentivizes safe driving but Supreme Court decision on motor insurance claims
also makes car insurance more adapt-
able to individual driving patterns. to speed up payouts
With this initiative, Zuno General Insur- The Supreme Court decision asking courts and tribunals to direct insurance
companies to transfer motor accident claim amounts directly to the claim-
ance aims to provide a more data-
ants’ bank accounts is expected to expedite payment of claim amounts, in-
driven and personalized insurance expe-
surance officials said.
rience, offering customers a structured
way to monitor their driving behavior “The general practice followed by the insurance companies, where the com-
and optimize their coverage costs. pensation is not disputed, is to deposit the same before the tribunal. In-
stead of following that process, a direction can always be issued to transfer
Bajaj to buy out Allianz's the amount into the bank account(s) of the claimant(s) with intimation to
the tribunal,” the SC said.
stakes in insurance JVs Ashwani Dhanawat, Executive Director & Chief Investment Officer, Shriram
In the biggest insurance sector deal in General Insurance, said, “Any effort to expedite the settlement of claims is
India, Bajaj group will buy out Allianz's highly appreciated. We commend the Supreme Court’s directives aimed at
26% stakes in their life and non-life in- streamlining the claims process, specifically its mandate for insurance com-
surance ventures for Rs 13,780 crore panies to deposit motor claims directly into claimants’ bank accounts, en-
and Rs 10,400 crore, respectively. The suring timely compensation.”
deal will make both insurers fully In- “We are deeply committed to providing claimants with prompt and seam-
dian-owned. less settlements. As of FY 24-25, 20 per cent of the claim amount has been

Under the share purchase agreement, directly paid to claimants, while 80 per cent has been disbursed to the tri-
Bajaj Finserv will acquire about 1%, bunal. We recognize that delays in the claims process can be frustrating for
Bajaj Holdings and Investment nearly claimants, and as such, we continue to focus on accelerating the settlement
process, ensuring it is both efficient and hassle-free. Our ultimate goal is to
20%, and Jamnalal Sons 5%, totaling
ensure that claimants receive the compensation they are entitled to, with-
26% in each company. After the acqui-
sition, Bajaj Finserv's stake in both out unnecessary delays,” Dhanawat said.
firms will rise to just over 75%. Once
help drive more value for shareholders. With "R2" approval, the company is
the joint ventures are terminated,
Bajaj and Allianz will pursue indepen- Despite relaxed FDI limits, Allianz did one step closer to commencing rein-
surance operations.
dent insurance strategies in India. not increase its stake due to a dis-
agreement with Bajaj after a pre- However, it can be in the business only
The 24-year-old partnership will end
agreed plan to raise the stake within after meeting the requirements of
after Bajaj acquires at least 6.1% and bringing in the necessary initial capital.
Allianz is reclassified from promoter to 15 years could not be implemented.
Valueattics Reinsurance is owned by
investor. The company has filed the
Oben Ventures LLP, promoted by Goyal,
stock exchange disclosure. Valueattics Rs set to be-
and FAL Corporation, backed by Watsa
Bajaj Allianz Life has an embedded come India's first pvt rein- with Fairfax Financial Holdings.
value of nearly Rs 23,000 crore. The "There was a longstanding need to
life insurance company has a 3% mar- surer have private reinsurance players in In-
ket share in term of premium, while IRDAI approved the first reinsurance li- dia, and becoming India's first private
the non-life venture has 7% market cence to a private player, Valueattics reinsurer marks a significant milestone
share as of Feb. Reinsurance, backed by Prem Watsa for us. With this, the Digit group of
and Kamesh Goyal.
Sanjiv Bajaj, Chairman and MD of Bajaj companies (general insurance, life in-
Finserv, said the two companies, built So long GIC Re, a public-sector entity, surance, and reinsurance) will strive to
with Allianz, have a combined pre- was the only player in the field. "This become a one-stop solution for all in-
mium exceeding Rs 40,000 crore while marks a significant step in fostering surance needs, allowing us to provide
maintaining strong solvency margins. competition within the reinsurance full-spectrum risk coverage," said
He added that single ownership would sector," Irdai said in a statement. Goyal.

The Insurance Times April 2025 9