Page 7 - Insurance Times May 2023
P. 7

More than 50% vehicles             ance and chairman of the General In-
           Insurance premium may
                                                                               surance Council.
                                            not insured: Govt
           increase due to harden-
                                                                               The insurance regulator has been dis-
                                            More than 50% of vehicles on Indian
           ing of reinsurance rates                                            cussing several measures to insure ve-
                                            roads are operating without the man-
                                                                               hicles operating without cover. IRDAI
           Property insurance is likely to cost
                                            datory thirdparty insurance. This was
                                                                               had suggested that insurance compa-
           more for large risks with insurance
                                            disclosed by the government in re-
           companies anticipating a hardening                                  nies could engage with state govern-
                                            sponse to a Parliament query. Minister
                                                                               ments and compare data from the re-
           of rates in the reinsurance markets.
                                            of state for finance Bhagwat Karad,
                                                                               gional transport offices with insured
           Most large insurance covers are re-
                                            replying  to a  query  from  Lavu  Sri
                                                                               vehicle data to ensure complete cov-
           newed in alignment with the finan-
                                            Krishna Devarayalu, said that there are
                                                                               erage.
           cial year, with policies starting from
                                            30.5 crore vehicles on Indian  roads.
           April 1.
                                            This is, according to data from the road
                                                                               EV charging stations sus-
           For the first time, many non-life in-  transport and highways ministry and
           surance companies have decided to  does  not  include  MP,  AP  and ceptible to cyber attacks
           link the pricing of fire insurance poli-  Lakshadeep. Of these vehicles, 16.5  Electric vehicle charging stations are
           cies to individual claims experience.  crore are uninsured.         also susceptible to cyber attacks and
           According to industry sources, the                                  cyber security incidents like any other
                                            The minister also said there is no pro-
           revision follows the regulator's di-                                technological application, Parliament
                                            posal to provide onthespot third party
           rective that rates published by the                                 was informed. In a written reply to Lok
                                            insurance cover for motor vehicles, and
           insurance information bureau need                                   Sabha, Union Minister Nitin Gadkari
                                            there is no deadline for covering unin-
           not be treated as a minimum rate.                                   said the Indian ComputerEmergency
                                            sured vehicles. Thirdparty insurance is
                                                                               Response  Team  (CERT-In),  which is
           Linking insurance rates to the track  designed to provide compensation for
                                                                               mandated to track and monitor cyber
           record of a policyholder enables com-  victims  of road accidents. There are
                                                                               security incidents in  India, received
           panies to give discounts to a maxi-  many uninsured vehicles asthere is no
                                                                               reports of vulnerabilities in products
           mum number of customers as claims  mechanism to ensure compliance.
           in property insurance have a low fre-                               and applications related to electric
                                            "Thirdparty motor insurance is manda-
           quency as against motor or health                                   vehicle charging stations.
                                            tory in India. However, many vehicles
           insurance. However, claim experi-                                   "The government is fully cognizant and
                                            remain uninsured. Often accident vic-
           ence-based pricing is bad news for                                  aware of various cyber security threats
                                            tims are unable to get adequate com-
           anyone who has had a large claim in                                 and is actively taking steps to combat
                                            pensation because of the lack of mo-
           the last three years. Insurers are                                  the issue of hacking," Gadkari said.
                                            tor  insurance,  and  each  year  this
           doubling rates for those who have
                                            pushes thousands of families below the  He said as per the information reported
           reported claims that are more than
                                            poverty line," said Tapan Singhel, MD  to and tracked by CERT-In, the number
           three times the premium paid.
                                            & CEO of Bajaj Allianz General Insur-  of cyber security incidents during 2018,
                                                                        The Insurance Times  May 2023       7
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