Miscellaneous insurance sees an uptick in customer demand

Premium collection from the miscellaneous category stands at Rs 8,397 cr in FY13, up from Rs 7,049 cr in FY12

The miscellaneous insurance segment, which is considered a small area of business by general insurance companies, has seen a rise in premium numbers thanks to a rise in customer demand. With packaged policies being developed in this segment, more customers are eager to buy these plans, say insurance companies.

According to data from the Insurance Regulatory and Development Authority, premium collection from the miscellaneous category was Rs 8,397.19 crore in FY13, up from Rs 7,049.37 crore in FY12. Of this, public general insurers accounted for Rs 6,598.94 crore.

Sanjay Datta, head (underwriting and claims) at ICICI Lombard General Insurance, says that miscellaneous insurance, especially in the area of travel insurance has gained prominence among customers. ICICI Lombard has a comprehensive travel insurance policy, which offers cashless hospitalisation benefits, medical assistance for family back home and coverage for all baggage. Apart from travel insurance, ICICI Lombard offers insurance policies such as wedding insurance, office package policy and workmen's compensation policy, among others.

K G Krishnamoorthy Rao, managing director and CEO of Future Generali India Insurance, said that miscellaneous insurance is a big segment as several categories are included in it. "With the package policies offered by insurance companies in this segment on the rise, this segment is picking pace."

The segment includes items such as travel insurance, fidelity insurance, workmen compensation policy, weather insurance policy among others. Some insurance companies include aviation in the miscellaneous category, while others treat it as a separate category.

Niche areas of insurance are a feature of the miscellaneous category. ICICI Lombard, for instance, has a package policy meant for shopping malls, multiplexes, cinema halls, hyper malls, and offers cover against fire, burglary, and other perils. Similarly, Fidelity Insurance policies, which are offered by both public and private general insurers, offer cover against financial loss on account of forgery, embezzlement and other fraudulent activities by employees.

The Plate Glass Insurance Policy is a another miscellaneous product that protects plate glass installations against the risks such as theft, fire or accidents which would damage the structure. Large real estate and construction firms take this policy to minimise financial losses due to such incidents.

Future Generali India Insurance offers a golf insurance scheme. This covers damage or theft to golfing equipment, personal accident cover in case of death, hospitalisation cover and dental cover, among others, to a policyholder.

Roopam Asthana, CEO and whole-time director at Liberty Videocon General Insurance, said that areas such as weather-based crop insurance, cattle insurance and, to a small extent, home and travel insurance have seen growth in miscellaneous segment.

Public general insurers have also begun offering customised products. New India Assurance, for instance, offers Neon Sign Insurance in respect of loss or damage to the neon sign installation. It covers loss or damage to the neon sign installation by accidental external means fire, lightning, external explosion and theft.

UNDER COVER

• ICICI Lombard has a package policy meant for shopping malls, multiplexes, cinema halls, hyper malls, and offers cover against fire, burglary, and other perils
• Fidelity Insurance policies, offered by both public and private general insurers, offer cover against financial loss on account of forgery, embezzlement and other fraudulent activities by employees
• The Plate Glass Insurance Policy is a another miscellaneous product that protects plate glass installations against risks such as theft, fire or accidents which would damage the structure. Large real estate and construction firms take this policy to minimise financial losses due to such incidents
• Future Generali India Insurance offers a golf insurance scheme. This covers damage or theft to golfing equipment, personal accident cover in case of death, hospitalisation cover and dental cover, among others, to a policyholder