The overall insurance sector is buzzing, says Zee Business Research Analyst Devanshi Ashar while pointing few positive triggers to each of the auto, health and general insurance segments.

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Madras High Court’s withdrawal of bumper-to-bumper insurance for 5 years has put some key auto insurance firm’s stocks in the red zone, Ashar said. However, with the withdrawal we may see revival in the auto insurance segment and gradually premiums may increase too, says Ashar.  

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Few insurers had pointed out that if bumper-to-bumper insurance comes into effect for 5 years, then only one company would get maximum gains and other companies won’t get any premium, the analyst said.

ICICI Lombard is one of the major players in the auto insurance category, she said.

The earlier order of 5 years bumper-to-bumper insurance will not be necessary for buying a new car now, Madras High Court observed while withdrawing the order. Bumper to bumper is the type of car insurance that offers complete coverage to the vehicle irrespective of the depreciation of its parts.

In another news related to the insurance sector, IRDAI (Insurance Regulatory and Development Authority of India) on Monday had allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022.

The insurance regulator earlier last year had asked all insurance companies to come out with ‘Corona Kavach’ policies (standard indemnity-based health policy) and Corona Rakshak policies (standard benefit-based health policy).