Big hike in insurance covers for Ganpati mandals

During all the Ganesh Utsav celebrations, the increasing prices of raw materials have increased the cost of idols by thirty per cent this year and hence the insurance cover too has shot up.

The ‘Ganpati Seva mandal’ at King's Circle is the richest in city and according to sources, has insured its festivities for fifteen for a stupendous amount of Rs. 150 crore. At the pandal, the Ganpati is decorated with gold and silver ornaments and various types of precious stones. At the Lal Bag Pandal, the insurance cover is worth Rs. 14 crore.

Although Ganesh Utsav festivities are celebrated all over the country, the celebrations are most elaborate in Maharashtra. Lord Ganesh idols were established in homes and various public places, after performing traditional pooja. 

As per the Mumbai civic body, a total of 191000 idols are installed across the city; of which 180650 are in local households and 10350 are at Ganesh Mandals. 

Insuring companies to play key role in vehicle designing

Insuring companies have started working with auto manufacturers into making some fine changes in auto designs with an aim to reduce insurance claims. This way, both insurers and auto manufacturers are benefiting as it aids in cutting down claims ratio and a reduction in turnaround time at workshops. 

ICICI Lombard, Bajaj Allianz, Royal Sundaram, National Insurance, New India Insurance and Iffco Tokio are some of the names who cooperate regularly with auto manufacturers Ford, Maruti Suzuki and Hyundai, giving them advice on causes of claims. 

Auto manufacturers use these feedbacks to calculate modes of cutting down damage due to accident and miserable road conditions. Design changes are carried out if found to be cost-efficient, helping to bring down the claims. 

Maruti Suzuki has been commonly obtaining technical inputs from insuring companies on reasons of claims for the last 3-4 years.

Star Union Dai-ichi registers 23.2 percent growth on premium basis

Life insurance company-Star Union Dai-ichi (SUD Life), has recorded a growth of 23.2% as on 31^st July on the premium basis. This year it is Rs. 148.98 crore as against Rs. 120.90 crore as on 31^st July 2010. 

Star Union Dai-ichi Life Insurance Company Ltd is a joint venture between Bank of India, Union Bank of India, and Dai-ichi Life Insurance of Japan.

Even though the private life insurance sector is registering a negative growth rate of 24.8%, the company has achieved a high growth rate of 23.2%. 

The company sold 19,631 policies in 2010, which has increased to 26,049 policies in 2011. The insurer is basically a Bancassurance company at this point and is selling its policies through Union Bank of India, Bank of India, and seven Regional Rural Banks.

SUD Life MD and CEO, Kamalji Sahay said in a statement, "We aim to continuously provide the highest levels of service excellence and to this end our quality initiatives have played a pivotal role. At Star Union Dai-ichi, we constantly explore ways to provide solutions to a wide variety of customers. We recognise and adhere to these evolving trends in customer psychology to provide customised solutions to meet these aspirations."

Long-term insurance products gaining over bank deposits

As opposite to popular belief, Bank deposits, in spite of their safety features are quickly losing their appeal among Indians. It is being seen that over the last three years, Indians are favouring to save in long-term insurance products and government-backed savings products.

The fiscal year 2010-11 saw a sharp drop in bank deposits accounted from 53% in 2008-2009 to 42% as per the data released by the RBI last week. Efficaciously, out of every Rs. 100 saved, Indians are setting aside Rs. 42 for bank deposits as compared to Rs. 53 3 years ago.

People are investing in life insurance policies and government-backed savings products like post-office savings and national savings certificates. These products offer approximately 8% return as compared to 4% in saving accounts. 

Financial experts assign this changing savings pattern to aggressive marketing by insurers, increasing financial literacy and looking for of better investment yields.