IRDAI will not increase the premium rates of third party motor insurance.
The increase in premium rates would have had multiplier effect.
SIAM had requested IRDAI to not revise the premium rates.
At a time when the entire nation is fighting against the novel COVID-19 by remaining indoors and putting a stop at all non-essential outdoor operations, the economy and industries are bearing the brunt of it. The Society Of Indian Automobile Manufacturers (SIAM) had already said that the auto industry is incurring a loss of Rs. 2300 crore per day of closure and trying that the situation doesn’t worsen further, SIAM had requested the Insurance Regulatory And Development Authority of India (IRDAI) to not revise the third party motor insurance charges for FY2021. The IRDAI has accepted the submission and will be retaining its premium rate for the financial year.
Rajan Wadhera, President, SIAM stated, “We are thankful to the Insurance Regulatory and Development Authority of India (IRDAI) for keeping the Third Party Motor Insurance Premium Rates unchanged for all vehicle categories for the Financial Year 2020-21. This is in line with SIAM’s submission to IRDAI on retaining premium rates and, thereby, avoiding an increase in the cost of vehicle acquisition for end consumers.”
Flipkart co-founder Sachin Bansal’s bet on the insurance firm is part of his broader ambition in financial services industry.
The deal has been routed through Navi Technologies, formerly BAC Acquisitions which Bansal had founded along with IIT-Delhi batchmate Ankit Agarwal after selling stake in Flipkart in 2018. Sources said Bansal has bought out the entire stake in the insurer, held by Kapil Wadhawan-owned WGC. “Navi is actively scouting for opportunities in BFSI space,” a spokesperson for the company said when contacted . “Specifically, it is interested in the intersection of technology and financial services, where we believe technology can be harnessed to improve access and availability of financial services,” the spokesperson said.
DHFL General Insurance has about Rs 400 crore assets under management. “Bansal wants to get a footing into the banking and financial services sector. There has been a lot of talk about him being keen on obtaining a banking licence and has been looking at opportunities in the asset management space,” a source said. Bansal’s move to step into the insurance sector comes on the back of Navi Technologies acquiring a majority stake in Chaitanya Rural Intermediation Development Services, which runs a microfinance platform. Having picked up more than 90% stake in Chaitanya, he took over as its chief executive last year.
According to the information from sources, the Indian Space Research Organisation (ISRO) is eying to buy its first insurance policy for a domestically launched space satellite, the first since it began launching satellites in 1975. There can be two factors which are expected to have been influencing ISRO to begin buying satellite insurance.
Firstly, there is an unexpected setback in Project Chandrayaan-2, which cost nearly INR10 billion (US$139.4 million). Secondly, there is the success of ISRO’s Mars mission, which brought down reinsurance rates for Indian space exploration activities.
While ISRO has not insured launches conducted on Indian soil, it has typically insured launches done in partnership with other countries, such as Russia and the US. New India Assurance and other state-owned insurers were typically those tapped to provide cover for these projects, with reinsurance from the international market.