With the removal of administered pricing mechanism / detariffing in respect of
fire and engineering insurance policies, personal lines of insurance like health
insurance re expected to log strong growth.General
Insurance- Life after Detariffing organised by Chennai business magazine Industrial
Economist, on 8 June, 2007, Insurance Regulatory and Development Authority
(IRDA) chairman C S Rao said, even before detariffing the health insurance business
portfolio has moved a rank to third after motor and fire. Prior to the opening
up of the sector, health insurance had lagged behind motor, fire and engineering
to Rao, all these years Indian non-life insurers did not find the necessity to
look at personal lines of business in a serious manner as the corporate sector
had been yielding handsome premium. But with the freeing of tariff rates, insurers
have to look at other segments for growth, he added.
with him, K N Bhandari, secretary general, General Insurance Council, said, hereafter
the insurers would adopt the right management practices to accelerate growth.
"The objective of detariffing is to minimise cross-subsidisation and end
the level of distortion at the market place."
the theme of the seminar, S V Mony, former chairman, General Insurance Corporation
of India, and the secretary general, Life Insurance Council, cautioned policyholders
that getting a low premium quotation while selecting their insurers need not imply
a higher claims paying ability.
said the time had come to differentiate between the men from the boys and promoters
of non-life companies had to get their act together with more disciplined risk
underwriting. He also called upon the industry to give its suggestions to the
Standing Committee of Parliament that is going into the amendments proposed to
the existing Motor Vehicles Act. He said the suggestions
should not be driven by bottomline perspective alone. The industry''s suggestions
should keep in mind the welfare of the public.
S Viswanathan, editor, Industrial Economist, welcomed the gathering.