Page 7 - Insurance Times November 2020

It is hereby clarified to all policyhold- Their gross premium income stood at In India, the past few incidents include
ers that the letter issued by MoRTH Rs 95,526.89 crore in the same period damage to aircraft parts of Jet Airways
does not include motor insurance poli- of 2019-20. The cumulative premium and SpiceJet in separate incidents,
cies, which needs to be renewed as per of public sector insurers during April- apart from a Su-30 fighter jet crash and
the renewal date. All vehicle owners September period of the fiscal rose KingAir C-90 crash, among others. They
are advised to get their insurance poli- 0.86 per cent to Rs 43,347.49 crore. have also led to losses of around Rs
cies renewed on or before the due The private sector insurers saw 1.78 2,500 crore.
date of renewal for continued validity per cent increase in their cumulative The Sukhoi Su-30 crash in July 2018 had
of the insurance policies," the GIC said premium collection at Rs 53,484.06 led to insurance losses of Rs 250 crore.
in a note. crore during April-September, the data New India Assurance, which is the
showed. The cumulative premium of country's largest aviation insurer, was
General insurers see standalone health insurers grew 28.10 liable to pay the losses.
nearly 6 pc fall in premium per cent to Rs 7,812.39 crore during The Chennai floods in December 2015,
the period. when several aircraft and private jets
income at Rs 22,775 crore
belonging to companies were dam-
in Sept Aviation insurance losses aged, saw insurance losses of Rs 400
Non-life insurance companies reported touch an all-time high as crore.
a 5.55 per cent decline in gross pre- claims hit Rs 3,700 crore Due to a rise in air crashes and dam-
mium income at Rs 22,774.60 crore age due to flights skidding from the
during the month of September of the A series of major and minor air-crash runway, there has been a cumulative
incidents have led to aviation insurance
current fiscal year, as per Irdai's data. increase in the risk rating for airlines.
The 34 non-life insurance companies losses touching an all-time high of Rs At the time of renewal of insurance
had garnered a premium income of Rs 3,700 crore. The insured loss of close
to Rs 664 crore in the recent AI Ex- policies, this risk rating is taken into
24,111.78 crore in the same month of
press crash led to a further spike. account. Higher the risk rating (directly
previous fiscal year 2019-20.
proportional to past claims), greater is
The public sector insurers witnessed a Insurance sources said that 2014-2020 the insurance premium applicable.
6.08 per cent fall in gross premium has been the worst six years for the Reinsurers which provide risk cover to
aviation insurance segment. The size
collection at Rs 10,959.88 crore in Sep- insurers against large risks, like avia-
of the Indian aviation insurance mar-
tember FY21 as against Rs 11,669.43 tion, also increase premiums when
crore in the same month a year ago, ket is estimated to be around Rs 8,000 there are higher claims.
the Insurance Regulatory and Develop- crore.
ment Authority of India (Irdai) data The last crash occurred in August Pollution among the top
showed. The private sector non-life 2020, when an Air India Express Vande risk factor for deaths in
insurance players reported a 5.04 per Bharat flight with 191 passengers and
cent fall in premium at Rs 11,814.71 crew from Dubai, skidded off the table- India
crore in September 2020 as against Rs top runway and fell into a 50-feet val- Long-term exposure to air pollution
12,442.35 crore a year ago. ley, breaking into two, while landing at contributed to around 6.7 million
However, the seven standalone health the Karipur airport, Kozhikode, Kerala. deaths globally from stroke, heart at-
tack, diabetes, lung cancer, chronic
insurers among the non-life insurance "The crash led to a claim of close to $89
companies registered a 38.04 per cent million, of which about 57 percent of lung diseases, and neonatal diseases in
2019 with China (1.8 million) and India
jump in premium income at Rs the payout pertained to the hull loss
(1.6 million) together accounting for
1,543.62 crore during the month from and baggage claims, passenger deaths
Rs 1,118.24 crore a year ago. The to- and injuries accounted for the rest. more than half of such deaths, says the
tal premium collected by the 34 non- This is among the highest claims and annual 'State of Global Air 2020' re-
port, released.
life insurance players during April-Sep- will lead to a rise in premiums from
tember period of 2020-21 increased FY22 onwards," added a senior public While stating that air pollution is glo-
1.37 per cent to Rs 96,831.55 crore sector insurance official. bally the fourth highest cause of death,
The Insurance Times, November 2020 7