Insurers set to benefit from emigrating-worker covers

The Centre's initiative to compulsorily insure emigrants going abroad for employment has received immense support from the general insurance industry, under the scheme Pravasi Bharatiya Bima Yojana 2003.

Emigrant workers can now find protection relief under this policy "" covered from medical emergencies, accidents and even frauds or loss of employment.

While war risks are not included, the scheme covers expenses of repatriating victims of fake work visa rackets.

The four state-owned general insurance companies and ICICI Lombard General Insurance Company have started to tap the Rs 1,000-crore premium market.

What's interesting is that even as insurers expect to make a loss on this 'social obligation' portfolio, since the respective company product was filed with the insurance regulator, many companies have downward revised prices.

"This is on account of the intense competition to garner a share of the huge market," said insurance company officials. On an average, over four lakh emigrants take off yearly.

ICICI Lombard is the first off the block to launch the web-enabled emigrant travel insurance scheme, targeted at the financially weaker and exploited section of society.

"It is easier to sell the cover if it is web-enabled," said ICICI Lombard head of strategy, Sudhir Salian.

The company is understood to have sold 400 policies in the first two days, and expect to garner at least 10 per cent market share.

Also in the fray is Bajaj Allianz General Insurance Company, which sees Kerala as "the top market for such policies", said the company's CEO designate Kamesh Goyal.

The insurance scheme framed by the Labour Ministry in consultation with the Ministry of External Affairs, was launched by the prime minister Atal Bihari Vajpayee on his birthday on December 25.

The insurance scheme has been framed by the Labour Ministry in consultation with the Ministry of External Affairs.