The Hindu Business Line : Non-life market set to have 6 more players

Factors such as introduction of new standard market wordings and buoyancy in automobile and health insurance, among others, would drive growth in non-life insurance business, Mr K.N. Bhandari, Secretary General, General Insurance Council told Business Line over phone from Mumbai.

“The adoption of new standard market wordings in tariff-free regime will be more beneficial for a policy holder, besides providing greater flexibility for insurers in the customisation of different products,” Mr Bhandari said.

GIC, a couple of days ago, had proposed new guidelines for standard market wordings in fire, engineering and automobile insurance.

Proposed wordings

“For instance, there is only one definition of ‘fire’ for all products in the fire insurance. But now, any combination of circumstances under fire insurance can be designed. This allows greater customisation and a consumer cannot be misled by tariff wordings,” he explained.

The proposed wordings are also in line with the global insurance practices. “Globally, all developed countries are using these words. By offering flexibility to customise products, they would lure foreign insurers to Indian market. They will also be able to get re-insurance contracts more easily,” he opined.

The council had requested the Insurance Regulatory and Development Authority (IRDA) to bring the proposed wordings into force from January 1, 2008.

Bright prospects

On the growth of non-life insurance, Mr Bhandari said the market would register good growth for last two years. In addition, the interest of foreign non-life insurance companies in India is also growing.

Currently, there are 12 non-life insurers in the market. “There will be 50 per cent growth in this over the next six months. As many as six new players will enter market soon,” he said.