• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

K.V. Kurmanath

Lack of database may slow down pace of switch-over

Hyderabad , Dec 31

Want an insurance policy for just part of the asset and don't want to pay premium for the whole property as you do now? Would you like to have a cover for a risk, like tsunami, that is specific to your locality? You can get a policy tailor-made to your specific needs in the detariffed regime, which begins on January 1, against the predetermined policies available now.

Besides, you can put forth your proposal to more than one insurance company and get the best deal.

As general insurance companies gear up for the detariffed regime, consumers can hope for plans that they would not have imagined of in the current regime.

"There will be freebie covers too tagged along with the policies. Companies are expected to meet your requirements as against the fixed generalised policies," said Mr K.N. Bhandari, Secretary-General of the General Insurance Council.

"This has happened elsewhere and this is going to happen in India too. We are only learning from their experiences," he added.

"The scope for innovation is mind-boggling. In fact, the real process of liberalisation (in insurance) will begin on January 1."

Speaking to Business Line about the shape of things to come in the new regime, he said that India was the last significant economy to embrace the detariffed regime.

On whether the new regime would lead to consolidation, he said there was great scope for more players joining the fray.

Hiccups

The entry into the new regime, however, is not without certain hiccups. "One of the major issues is lack of databases."

Companies need information to evolve policies. They need to go through the trial-and-error phase. It would take a couple of years for the market to stabilise.

Mr Bhandari, however, said that there was absolutely no cause for panic. "We have a robust regulatory mechanism in place. The solvency margins too are 1.5 times higher than the liabilities. There is no danger at all."

More Stories on : General Insurance | General Insurance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Chill in north as New Year dawns

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line