Insurance policies set to be cheaper and tailor-made

De-tariffing in the general insurance sector has increased competition among big players, leading to products being offered at lower prices

By Ahmedabad Mirror Bureau
Posted On Sunday, March 15, 2009 at 03:02:57 AM




With total de-tariffing in the general insurance sector in force since January 1, 2009, insurance policies are set to be more affordable. Speakers at a seminar in the city on Saturday, saw representatives of many insurance companies said the decontrolling of insurance products will elevate the general insurance market to global standards as insurers would be able to offer a wide choice of customised products in fire, engineering and motor insurance.

The seminar ‘Total de-tariffing of the Insurance Industry’, organised by Unison Insurance Broking Services Pvt Ltd, was attended by officials of a number of insurance companies, besides brokers and insurance agents.

Unison India Insurance Co Ltd, GM, A Asthana said, “Product decontrolling would create more opportunities for customisation on international lines and trigger an increase in competition between insurance companies. ”

Talking about the effect of recession on the insurance industry, CEO & MD of Tata AIG General Insurance Company Ltd, Gaurav Garg, said, “There are five domains in insurance industry which have suffered. The auto insurance has suffered as finance for vehicles has declined. Travel insurance has come down as people have avoided non-essential travel. Marine exports have suffered as shipments orders have declined. The construction and infrastructure projects have also come to a standstill, and lastly corporates have stopped public issues etc.”