A universal health insurance plan proposed by Irdai and amendments to the Motor Vehicles Act will be key drivers for the general insurance industry, which aims to reach a business of Rs 3.35 lakh crore by 2024-25.

A.V. Girijakumar, chairman and managing director of Oriental Insurance Company Ltd, on Friday said the total premium of non-life business is estimated to grow to Rs 3.35 lakh crore by 2024-24 from Rs 1.7 lakh crore at present.

“Health insurance will be a key growth driver. The Arogya Sanjeevani Scheme expected from April onwards will increase the insurance coverage,” Girijakumar said at an MCCI event.

The family floater policy, which is universal in structure, will offer a sum insured of up to Rs 5 lakh. But each of the insurance companies will have the option to price and market the product differently. “Even after Ayushman Bharat, there is scope to extend the health cover,” he said.

“The amendments to the Motor Vehicles Act will push for more vehicles to be insured and this is good for everyone, including the insurance companies, as the distribution of risk will be better and the consumers will also get a better price. Today, not even 50 per cent of the vehicles on the road are covered by insurance. So, there is a vast potential for growth and the pool will only get larger,” he added.

He added that the regulator is mulling use-based insurance, especially for the motor segment, depending on how much a car is being driven.

He said that the penetration of non-life insurance, as a percentage of GDP, is 0.97 per cent in India at present, which is expected to grow to 2.5 per cent in the coming years.

Premium growth

Oriental Insurance Company is eyeing a 6 per cent growth in premium in the ongoing fiscal.

“This year we expect premium to be at around Rs 14,250 crore against Rs 13,450 crore last year,” Girijakumar said, adding that the company has been focussing on consolidation and faster claims settlement.

The board of the state-run insurance company is expected to meet next month to decide on its growth course.

The company may require a capital infusion of Rs 3,000 crore to grow its business next fiscal but is open to tweak its business plan for the fiscal depending on the situation.