Financial Daily from THE HINDU group of publications
Sunday, May 07, 2006
Financial Daily from THE HINDU group of publications Sunday, May 07, 2006 |
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Markets - General Insurance Radhika Menon
Edelweiss has received 60-70 claims to the tune of Rs 1.5 crore in the last few months and majority of them are for losses due to punching errors.
Mumbai , May 6 The bull run at the stock markets has also sparked an increase in the number of insurance claims arising out of punching errors by stock traders. Insurance brokers say the margin of error has increased with more number of trades being conducted per minute. It is mandatory for all stockbrokers to have liability and professional indemnity cover. While the liability policy covers losses against punching errors and infidelity of employees, brokers are also buying add-on covers such as third party liability and malfunctioning terminals. Mr H.L. Chopra, Director and Advisor, Edelweiss Insurance Brokers, said "around 90-95 per cent of the claims that are coming in now are due to punching errors made during transactions. The other reasons include wrong entries in the books of accounts". Edelweiss currently holds the mandate for being the sole insurance broker for around 600 broker-members of the BSE. The policies are being issued by New India Assurance Company. Edelweiss has received 60-70 claims to the tune of Rs 1.5 crore in the last few months and majority of them are for losses due to punching errors. With the increase in the number of trades, occasional errors in pressing the "sell" button instead of the buy "button" and vice versa do occur, said Mr Chopra.
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