Insurance provides relief to victims of natural disasters

Hyderabad: Union Minister of State for Finance Namo Narain Meena on Wednesday stated that insurance sector always played key role in providing relief to the affected areas and lives in the aftermath of natural disasters. Addressing the inaugural session of 8th Meeting of the Asian Forum of Insurance Regulators held here, the Minister said natural disasters like that happened in Uttarakand recently would impose financial burden on insurance and reinsurance companies. "It is perhaps necessary to embed insurance products into the National Disaster Management Policy to bring out the role of insurers and reinsurers in meeting the objective of the national policy", he said. Insurance penetration had increased in the country after economic reforms were brought in and insurance sector was reformed in the year 2000, he added. "Today, 39 insurance companies in the private sector are operating in the country in collaboration with established foreign insurance companies", he explained Meanwhile, T S Vijayan, Chairman, IRDA, had indicated favouring banks to sell products of multiple insurance companies, as the move would help deepen insurance penetration in the country. He also also said discussions with all the stakeholders are currently underway and final view will be taken on this issue after due consultations. Vijayan's comments assume significance as the Reserve Bank is reportedly of the view that banks should restrict themselves to one single company and continue to be an 'agent'. "Whether it is called a broker or an agent, it has representation of people. Banks are not going out to acquire customers. They are utilising the customer base of their own. Whatever the name you are going to call," the IRDA chief told reporters on the sidelines of the event.