India Inc, renewing their insurance policies, have not been offered any further discounts by the insurance companies. Insurers are offering the same discount this year that was offered last year ie 80-90 per cent post-detarrifing.
Four public insurance companies — New India, National Insurane, United India and Oriental Insurance — are now aggressively pursuing companies in order to maintain their market share and grow their top line business.
Public sector insurers had the benefit of huge balance sheet and higher solvency margin; private players have made efforts to get a pie of the corporate business through co-insurance.
FMCG major Unilever has got the insurance cover from a consortium of companies, including four public insurers and four private players. Last year, the cover went to Iffco Tokio General Insurance Company.
“There are companies offering discounts as high as 90 per cent, but our choice depends on the underwriting practices and the strength of the insurer,” said a senior executive dealing with insurance of a big corporate.
Oriental Insurane grabbed the cover for the country’s premier engineering organisation Bharat Heavy Electricals (Bhel) from United Insurance. Sources close to the development said that Oriental has offered over 90 per cent discount to the public sector company.
Private insurer Reliance General grabbed two major covers — Steel Authority of India (SAIL) and NDTV where the sum assured is Rs 1,000 crore and Rs 375 crore, respectively.
Public sector iron and steel producer SAIL had to reissue the insurance tender as Bharti AXA General Insurance withdrew after winning the bid. Bharti AXA, who is said to have quoted 92 per cent discount, withdrew from the policy as it was not sure of the reinsurance support and the risk involved.
As a result of the huge losses in the medi-claim covers, discounts in this segment have come down by 20-80 per cent, depending on their experiences.
“This year public sector has been more aggressive in acquiring the top line then their private peers,” said Optima Insurance Brokers Chief Executive Officer Rahul Agrawal.
