GIC is learning a hard lesson, for not computerising its mammoth operations. When the TAC decided to withdraw the two-stage hike in third party premium for motor insurance citing lack of proper database on motor claims experience, GIC had no option but to meekly withdraw. It is open knowledge that court awards on third-party claims are bleeding the industry, but GIC was forced to accept the lower premium and thereby brace itself for losses running into several crore.

Insurance-linked scheme

Close on the heels of two tax-related loan products, Vyasya Bank has launched an insurance-linked savings bank account termed premium savings bank account which will offer insurance cover on injury and death due to road, rail, air or sea accidents. It also covers injuries and death caused by snake bites, electrocution , drowning and riots. The insurance cover is for a period of Rs 3 lakh and for a period of three years. While the minimum balance is pegged at Rs 1,000 for thesavings scheme, the bank has coordinated with United India Insurance to offer this facility. Sources say that this is a strategic product offering by Vyasya Bank as it has already expressed intentions to enter the insurance sector, when it is opened up.

IRA to set new norms

An insurance seminar was organised recently by the Consumer Action Group in Chennai. Insurance Regulatory Authority chairman N Rangachary was one of the key speakers at the seminar. He said the IRA would enforce new rules and guidelines to protect the interests of consumers once the insurance industry is opened up. Consumers would be free to choose their own surveyor for damage claims. Allaying fears expressed by certain people that opening up of the insurance sector would be detrimental to the interests of consumers, the IRA chief categorically stated that IRA would come out with guidelines on the rights and obligations of the insurer and the insured.

LIC pension branches

LIC Class-I Officers Association hasforwarded a memorandum to the chairman, G Krishnamurthy, seeking to increase the number of dedicated branches for pension and group saving schemes. If the move is implemented, the number of vacancies will increase for officers. According to officers, this is necessary because while the marketing of pension schemes is done by the existing branch network, the servicing of pension business will have to be done by the dedicated branches.

GIC healthcare company

Indications are that the GIC and its subsidiaries are planning to set up an exclusive healthcare company to manage the Rs 1,000 crore Indian healthcare market. The new company will be a management services company having an equity capital of Rs 25 crore. Private companies will also be roped into this venture. Managed healthcare is a new concept in India, though it is a vital social infrastructure in western countries. A lot of groundwork has to be done in order to make the new company successful. Networking among, doctors, hospitals, clinics,medical shops is essential. The basic strategy will be to float a new marketing company which will prepare the overall framework of products , pricing, database and R & D activities.

--Insurance Today