Non-life insurance

The non-life sector has a lot to offer its customers this year in health, terrorism and motor insurance cover. The ongoing price war in the industry is likely to continue for some more time. “I don’t think prices will stabilise very fast. It will take at least this calendar year for prices to stabilise,” says M. Ramadoss, chairman and managing director, Oriental Insurance Company. “2009 will continue to be tough. There will be strain on investment income and underwriting profits of companies,” he adds.

Mediclaim portability. People who are unhappy with their current health insurance provider will be able to switch to another company without losing out on the bonus accrued. The general insurance industry is working on mediclaim portability and should launch it soon. However, there is a catch to it. Only people in the age bracket of 18 to 45 years will be able to subscribe to it and enjoy the benefits up to 70 years of age. “Portability is meant to provide continuity to the customer. Any person within the age bracket of 18 and 45 years will be able to avail of this facility,” says S.L. Mohan, Secretary General, General Insurance Council.

Motor insurance. With the latest leg of deregulation happening, from this year onwards insurers will be able to offer customised policies. Customers will be able to enjoy add-on facilities like a replacement vehicle from the insurer while the vehicle owned by them is sent for repair, pick and drop facility, and so on. “The retail customer stands to benefit a lot from the motor insurance cover. However, all these services will obviously come at a price,” says Darvesh Panchal, practice leader, Prudent Brokers.

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