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Indian general insurance business to stagnate in 2020 due to COVID-19:GlobalData

Decline in key sectors such as auto, manufacturing and construction is expected to heavily impact insurance industry as they account for more than 47 per cent of general insurance premiums in 2019.

Motor industry is facing severe slowdown due to supply chain disruptions, stalled production and low demand. In April 2020, automobile manufacturers registered zero sales due to the lockdown. Sales have picked up marginally in May after the lockdown restrictions were eased by the government; but are well below the pre-COVID levels.

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China-backed AIIB approves $750 million loan to India for COVID-19 response

Cofinanced with the Asian Development Bank, the budgetary support will go toward bolstering economic aid for businesses, including for the informal sector, expanding social safety nets for the needy, and strengthening the country’s health care systems. 

“Many of the world’s low and middle-income countries are still in the early stages of the health crisis but are already feeling the impacts of the pandemic. This poses an enormous risk for millions across India who have only recently emerged from poverty,” said AIIB Vice President, Investment Operations, D.J. Pandian.

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New India provides Rs 50 lakh Covid-19 covers to 22.12 lakh healthcare workers,settles 6 claims

However, the insurance cover despite being a well-publicised scheme, awareness of the same appearsto be little amongst some of State Nodal Agencies as a substantial number of some 75 claims, lodged till date are outside the purview of the policy on account of either the deceased not being a health worker or the deceased having died of other than corona related ailments, said Atul Sahay CMD, NIA..

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Disaster Financing:Nagaland,Swiss Re&Tata AIG strike India’s first-ever parametric deal,to kick in against excess rainfall

In addition to protecting the State treasury’s balance sheet, the transaction will enable Nagaland to build fiscal resilience against natural disasters.The parametric structure is designed to cover the entire state of Nagaland through six distinct zones, with a stepped payout feature to ensure funds are allocated where losses occur and in proportion to the amount of recorded rainfall, to mirror its impact. It based on a geospatially gridded dataset whose precipitation levels are derived from satellite observations .

G Satish Raju, Swiss Re said, “This is Swiss Re’s first disaster risk financing arrangement in India. Nagaland is a first mover and this transaction marks a positive step towards strengthening India’s resilience to natural disasters. With tropical cyclones Amphan and NIsarga hitting the eastern and Western coats of India in early 2020, the transaction serves as a timely model for other states looking to similar innovative re/insurance solutions that help protect their significant natural catastrophe exposures.” 

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Criticism mounts as New Delhi hospital beds run out amid COVID-19 surge

Less than a month ago, Kejriwal said the city’s hospitals were well equipped to fight the virus as the lockdown had given authorities enough time to prepare. “Delhi will win, corona will lose,” he said.While Delhi had around 10,000 novel coronavirus cases at that time, the number had jumped to 41,000 on Monday. India’s total numbers stood at 332,424, with Delhi, Mumbai and Chennai fueling the rise in infections.

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HDFC ERGO launches first-ever on-demand ‘Pay As You Fly’ insurance for drones

“Today, drones are becoming more and more popular in events and other outdoor commercial activities, which require skilled professionals to operate them. But, mistakes in operating and equipment failure may cause damage to third parties. Considering this we are launching this cover under our aviation insurance, which is a first in the industry, to safeguard drone owners and pilots from any third-party liability while flying a drone commercially.”Ritesh Kumar, MD & CEO, HDFC ERGO General Insurance Company

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Nationwide lockdown pulls down general insurance prms by 10% in May,New India maintains positive growth

“We have managed this performance thanks to our strong digital presence and the commendable team work shown by the Corporate team and our numerous office in-charges and their respective teams,`It has taken real hard work, in such challenging times, to stay in positives. What is more or equally important that during this period, when we are not able to open offices in a regular manner, we have continued to settle the claims with equal efficiency by electronic means. Hope its not  clichéd to say ‘tough times do not last but tough teams do’. However, it would be extremely challenging if such period continues for some more months,” said Atul Sahai, CMD,NIA

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Plea in SC raises concern over safety of healthcare workers amid COVID-19 pandemic

It alleged that during these “tiring and difficult times”, some of the most pressing issues faced by healthcare workers across the country are — non-availability of sufficient personal protective equipment (PPE) in numerous hospitals, non-availability of a sufficient number of COVID-19 testing kits, sub-standard PPEs, lack of basic facilities in isolation wards, non-payment of salaries and breach of government guidelines by some private hospitals.

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