The country's largest non-life company — New India Assurance — will soon seek the regulator's approval to sell a combined policy that covers personal accident, household and health insurance. The combined feature is expected to increase retail penetration of personal accident and household insurance on the back of growing sales of health insurance.
Although personal accident policies have been around for decades and are much cheaper than term insurance covers sold by life insurers, sales have not picked up because agents do not find it economical to sell these policies. For instance, under New India's standalone personal accident cover, one can be insured for Rs 4 lakh for as low as Rs 125.
Same is the case with householders' cover — a policy that protects both the house and its contents. The innovation that New India plans to offer is a floating sum insured for household items. Thus, the insured would be able to claim for up to a particular value rather than declare and insure each and every item in the house. "We will file the combined policy with the regulator shortly," said G Srinivasan, CMD, New India Assurance.
The move to push retail sales comes at a time when growth in corporate insurance is stagnating. Growth in fire insurance has slowed to 7% despite robust growth in motor and health insurance. "Retail business has grown faster than corporate. As a result, the share of retail has grown by two to three percentage points to 65%," said Srinivasan. He added that, going by New India's numbers, the ratio of claims to premium was lower in retail than in corporate business.
Srinivasan said the company will add 20,000 agents during the current 2013-14 financial year. He said the company has recorded a net profit of Rs 701 crore in the first nine months, which was a rise of 36% over the corresponding period last year. The company's domestic premium has risen 16% to Rs 8,337 crore while global premium grew 15% to Rs 10,255 crore.
The Times of India
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