Home insurance has limited takers, MD, New India Assurance Co Ltd says

It may be recalled that, post the Chennai floods last year property worth several crores was lost. Yet, the home insurance segment does not have many takers. This was what G Srinivasan, Chairman and Managing Director of The New India Assurance Co. Ltd., said in his address to the media.

“There are about 26 crore families in India and only 17 or 18 crore families have home insurance. Awareness and the inertia only can prompt people to take advantage of home insurance. There are a lot of misconceptions in the minds of people about home insurance. It would be encouraging if home owner have their home insured. The golden rule is do not be penny wise and pound foolish while opting for a home insurance plan. At The New India Assurance Co. Ltd., we are offering various products in this segment and we have also trained our agents who will in turn help clients chose the right home insurance policy.” Srinivasan said.

He  was addressing the media during the press meet that was called for to commemorate the silver jubilee celebrations of the Coimbatore Regional Office of The New India Assurance Co. Ltd.

Throwing light on the insurance sector, he said in all there are 30 companies that offer a variety of insurance services, of them all The New India Assurance Co. Ltd is one of the largest. “Our market share has increased in the last four years. We have about rupees 50,000 crores that is invested in mutual funds and in other investments.” Srinivasan said.

Commenting on the demonetization of high value currency, Srinivasan told the media that initially the public was finding it difficult to pay their respective premium. “However, now things are back on track and the premiums are coming in cheques. About 17% of the premiums are paid in cash.”

When asked about making travel insurance mandatory for railway passengers, Srinivasan said “Travel insurance was compulsory for all rail passengers. This was about five years ago. However, currently travel insurance for railway passengers is optional.”

Moving the focus to motor insurance, Srinivasan said “If the Government is able to fix the loop holes in the Motor Vehicle Amendment Act, it will help the insurance sector a great deal and it will also help to being down the number of accidents that are taking place on our roads.

Traffic violators and those who do not follow discipline on our roads must be penalised. This, in his opinion can help bring down road accidents too. In our country annually 1,50,000 die in road accidents and 4,00,000 people are severely injured in road accidents every year.”

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