Budget 2013 has many implications for general insurance sector: G Srinivasan, The New India Assurance CO

NEW DELHI: The Budget has many positive implications for the General Insurance Sector. Banks being allowed at act as Insurance Brokers will increase insurance penetration as the large number of Bank Branches could be leveraged to distribute Insurance Products in a more effective manner, said the CMD of The New India Assurance CO.

Commenting on the Union Budget 2013 G Srinivasan said, "Allowing the general insurance companies to open offices in tier-II and below towns without the regulatory approval will speed up opening offices in smaller towns."

The Public Sector General Insurance Companies will ensure that there is an office in all towns upto tier-IV by 31st March 2014. This will facilitate better insurance penetration.

Using KYC norms for Bank for insurance purpose will be a great facility for the customers as it will avoid duplication of efforts. Expanding RSBY Scheme to be expanded to include Rickshaw pullers, taxi-drivers etc, will go a long way in providing health insurance to people of this Country.

Public Sector Insurance Companies will use Adalats in a large manner to dispose of pending Motor TP Claims to bring in faster relief to the accident victims.

The Budget will allow Banking correspondents to sell micro insurance products. This will lead to insurance being available in smaller towns and villages through a large number of Bank correspondents, he said.