Sug­ges­tions for progress

Banking Frontiers - - Insurance -

Less than 1% of the homes in In­dia are in­sured and if cat­a­strophic event oc­curs it will wipe away the ef­fort and money of at least 10-15 years of build­ing a home. In such in­stances, the eco­nomic loss is more than the in­sured loss. To in­crease pen­e­tra­tion of in­sur­ance and to pro­tect the ci­ti­zens in a bet­ter man­ner, Ba­jaj Al­lainz Gen­eral In­sur­ance feels it re­quires a com­bined ef­fort from the reg­u­la­tor and the govern­ment to in­tro­duce NatCat Para­met­ric in­sur­ance. Ta­pan Singhel, MD and CEO, says: “There is a need to bridge the ‘pro­tec­tion gap’ through para­met­ric in­sur­ance, wherein, if a loss-mak­ing event is trig­gered, the govern­ment can pay the claims to peo­ple’s Jan Dhan ac­count di­rectly. The pre­mium for home in­sur­ance can be in­cluded as a part of prop­erty tax. This will en­sure that max­i­mum peo­ple are cov­ered for cat­a­strophic event, thus avoid­ing any neg­a­tive im­pact on our econ­omy.”

Ba­jaj Al­lianz Gen­eral In­sur­ance wants to change the per­cep­tion about the in­dus­try by bring­ing in ease of process and pro­vide need-based so­lu­tions. The in­sur­ance in­dus­try to­day is per­ceived as the one which does not pay claims. Singhel ar­gues: “How­ever the re­al­ity is that the com­bined ra­tio of the in­dus­try is 113.9% which in­di­cates that the in­dus­try is pay­ing claims.”

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