NICL plans simplified policy document

Kolkata, May 9(UNI) National Insurance Company Ltd(NICL), a public sector insurance company, is planning to introduce a simplified policy document for the policyholders.

Speaking on the sidelines of seminar, National Insurance company Limited CMD V Ramasaamy today said,''We have received requests from various customers to introduce simplified policy format where the policy holders will receive the clear guidelines on the areas which will not come under coverage.'' Mr Ramasaamy said the new format would only be introduced after April, 2008 when the insurance regulator IRDA would free several caps on the sector.

Discussing about detariffing in a seminar on "Detariffing on Insurance Industry" organised by FICCI, Mr Ramasaamy said de-tariffing was introduced in the insurance sector from January, 2007 following a report prepared by the consultancy firm IRDA and FICCI.

Intense competition was expected in the insurance industry following the detariffing. However, nothing of that sort had happened, he said adding insurance premium has been reduced in the fire and engineering sectors. Pre-detariffing regime, there was a lot of cross-subsidisation, which led to rise of the premium in certain sectors, including fire and engineering sector, while reducing in others.

He said de-tariffing would also help the customers as the policies would be now designed, keeping in mind the need of the customers, and new products would be planned by the companies.

Earlier the regulator used to fix the tariff, but following the de-tariffing, the insurance companies would now have a free-hand to fix the tariff.

Speaking at the programme, Oriental Insurance Company Ltd CMD M Ramadoss said after detariffing, 50 to 52 per cent premium have come down in fire and engineering insurance.

Mr Ramadoss also said industry data, both from private and public sector insurance companies, have shown that the growth had not been deterred by detariffing. In January, 2007 the private sector insurance companies have grown at the rate of 71.55 per cent while the public sector companies at the rate of 8.87 per cent. In February,2007 the private companies grew at the rate of 59.27 per cent while the public sector companies at the rate of 9.29 per cent.

UNI