Press Esc to close
Monday 23 January 2017
News updated at 1:43 AM IST
Weather
Max: 28.9°C
Min : 15.3°C
In Bengaluru
Sunny day

Insurance firms not impressed

New Delhi, Feb 28, 2013 (IANS)

Suresh Nandi, Feb 28, 2013, Mumbai, DHNS

Although the Union Budget 2013-14 proposals presented this morning appear to assist the insurance industry to widen its reach and distribution network -- like allowing banks to act as insurance brokers and introduction of the Insurance Bill in the Parliament - a large segment of insurance industry still feels it is a lost opportunity from the life insurance industry perspective.

Life insurance segment had hoped for tax exemptions in health and other segments, as the end customer will gain through the wider reach of Insurance in smaller towns and through banks’ distribution network.

HDFC Life MD & CEO Amitabh Chaudhry said Chidambaram has introduced several positive measures that would aid growth including a clear hope on passing of insurance and pension bills. "Increase of surcharge (from 5 to 10 percent) would result in a higher tax bill,” he added.

General insurance segment is happy as the Budget has some hidden positives for the non-life insurance sector, like unifying KYC norms for banks and insurers that will make the process of buying insurance hassle-free. Insurance companies will be empowered to open branches in Tier II cities without prior IRDA approval.

In this context, Bajaj Allianz General Insurance CFO Milind Choudhari said: "Simplifying the process of opening branches in non-metro areas will help boost penetration and reach out to the vast uninsured population in rural areas along with the steps of allowing banks to operate as brokers and banking correspondents to sell micro-insurance products. Setting up special adalats for TP (third party) claims will help in facilitating faster settlement of long pending TP claims.

Tata AIG General Insurance's CFO Miranjit Mukherjee said: "General Insurers will be able to offer insurance covers to customers in Tier II & III cities; whom we believe can gain much by protecting their home and assets from future unforeseen risks. The Regulator has always been supportive of the Insurance industry in its efforts to increase penetration and this move by the Government will aid the IRDA’s objective."

As Rashtriya Swastha Bima Yojana (RSBY) will be extended to cover autorickshaw pullers, taxi drivers, sanitation workers and rag pickers, it will augment the Governments’ objective of financial inclusion to the lowest strata of society, pointed out Mukherjee.

Bharti AXA General Insurance CEO & MD Dr Amarnath Ananthanarayanan said: “The consolidation of all government schemes like RSBY to extend coverage to rickshaw pullers, taxi driver, rag pickers and mine workers will increase the overall premium for the industry. The industry will look forward to the passing of the Insurance Bill in the budget session as an affirmative step for bringing FDI."

 

Go to Top

Photo Gallery
Olympic finalist Gymnast Dipa Karmakar being felicitated with Assames japi,Khoria and gomacha...

Olympic finalist Gymnast Dipa Karmakar being felicitated with Assames japi,Khoria and gomacha...

A boat man carries Hindu devotees in the river Yamuna early in the morning during magh Mela in...

A boat man carries Hindu devotees in the river Yamuna early in the morning during magh Mela in...

Austria's Michael Matt speeds down the course during an alpine ski, men's World Cup slalom...

Austria's Michael Matt speeds down the course during an alpine ski, men's World Cup slalom...

Punjab tableaux artists pose a photo during a press preview in New Delhi on Sunday...

Punjab tableaux artists pose a photo during a press preview in New Delhi on Sunday...

AIADMK leader SP Velumani inaugurates Cattle race after the urgent law was passed for...

AIADMK leader SP Velumani inaugurates Cattle race after the urgent law was passed for...

Bollywood actors Madhuri Dixit and Manish Paul atteded the Umang Mumbai Police Show 2017 in...

Bollywood actors Madhuri Dixit and Manish Paul atteded the Umang Mumbai Police Show 2017 in...

Youngstres and Students during the protest to Lift ban on jallikattu and impose ban on PETA...

Youngstres and Students during the protest to Lift ban on jallikattu and impose ban on PETA...

India Captain Virat Kohli celebrate after his 50 runs during 3rd ODI against England at Eden...

India Captain Virat Kohli celebrate after his 50 runs during 3rd ODI against England at Eden...

Rescue and relief work in progress at the site where Jagdalpur-Bhubaneswar Express train derailed...

Rescue and relief work in progress at the site where Jagdalpur-Bhubaneswar Express train derailed...

Samajwadi Party Vice president Kiranmoy Nanda, SP state president Naresh Utam and Congress state...

Samajwadi Party Vice president Kiranmoy Nanda, SP state president Naresh Utam and Congress state...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523