Skymet bets big on weather insurance for air travellers

At Rs 250/year, travellers can get Rs 4,000 refund for delays of over 10 mins.

More biz from commodities, power, weather derivatives.

Insurance may be on offer in Yatra, TravelGuru travel portals.

Skymet is betting big on weather forecast, and is expecting traders and travellers to celebrate both sunny and gloomy weather days.

Here’s some cheer for stranded travellers: the country’s first private sector weather forecasting cell is in talks with major credit card companies, including ABN-Amro, American Express and SBI to offer weather insurance policy for air travellers.

For a premium of Rs 250 per annum, a traveller could get a refund of Rs 4,000 for delays of more than 10 minutes due to weather parameters. A Rs 1,000 premium will cover travellers completely. According to Mr Jatin Singh, Managing Director, Skymet, issues of travel delays due to fog and rain are exaggerated by the media.

The insurance could soon be available on travel portals such as Yatra and TravelGuru as a retail insurance product. Skymet is also working with Weather Risk Management Services to create a weather insurance policy for New Delhi Power Ltd (NDPL).

Derivatives

With revenues Rs 1.26 crore annually, and growing at 80 per cent year on year since it started operationsin 2003, Skymet is also optimistic about weather derivatives.

“The Forward Markets Commission is considering allowing trading of weather derivatives, and when that happens we believe it will open up huge opportunities for us,” said Mr Singh. Weather derivatives, or the concept of weather as a tradeable commodity, covers for change in demand, say for example for energy companies which would be affected by reduced consumption from a warmer-than-usual winter.

Noida facility

With a team that includes 10 weather forecasters, The company’s Noida facility has been equipped with Weather Research Forecast (WRF) Model, capable of generating forecasts for resolutions as low as 3 km, providing forecasts for three days and general weather outlook for the next seven days.

Inaugurating the new outfit, Dr Jagadish Shukla, Distinguished Professor, Climate Dynamics, George Mason University, US and President, Institute of Global Environment and Society, said there were more than 450 companies in the US affiliated with the national weather service.

Skymet, however, does not have the support of the Indian Meteorological Department and Dr Shukla suggests, in the company release, that the Government create infrastructure and allow the private sector to customise and distribute forecast.

Already providing weather forecasts to Reliance Energy for its power distribution, Skymet expects more business to come from commodities, power, and weather derivatives.

Client base

The parent company, BK Consimpex Pvt Ltd, a technology provider of instrumentation, radars and their maintenance, has clients like the Indian Meteorological Department, the Indian Air Force, and Indian Space Research Organization amongst others.

The company now hopes to be a global player in weather software development and integration of world class instrumentation. The company is also looking to expand its business of flight briefing system offered to major international airports and all Air Force stations in India.

Source: The Hindu Business Line

LIC provides Janashree Bima Yojana for people below poverty line.

Life Insurance Corporation of India, the country's largest life insurance company, has received a cheque of Rs 22,23,18,500 crore from Rajasthan government for covering 22,23,815 people. These are the below poverty line (BPL) families in Rajasthan.This coverage is being given by the Janashree Bima Yojana (JBY).
LIC's JBY provides insurance cover for death due to natural and accidental cause. It also provides cover for accident resulting into total or permanent disability. Besides, the scheme also provides scholarship of Rs 1,200 per annum without any extra cost for maximum two children

AVIVA and PML joins hand

Aviva Life Insurance and region based financial services providers Paul Merchants Ltd (PML) have entered into a tie- up through which Aviva plans to increase the insurance penetration in the NRI markets. Aviva plans to sell its products like Life Long, Save Guard, Life Saver plus and pension plus to PML customers. Aviva is looking forward to using Paul Merchants’ network of over 100 branches and more than 10,000 sub-agents in India. PML will sell Aviva's products initially in Punjab, Haryana, UP and Delhi through about 50 outlets.
Yash Jagdhari, regional director (North), Bancassurance and Business Partnerships, Aviva has said that the company has entered into a referral arrangement with Paul Merchants and their products would be sold to their customers by our advisors pan India. Aviva will also be initiating this business plan in Punjab, Haryana, Delhi and Uttar Pradesh at present. And gradually the company will expand in the markets of South and East India.
The company reportedly has a strong presence in Punjab through their bancassurance tie-ups and direct sales force. Mr. Jagdhari has hinted long term and aggressive plan for Aviva India and tie-up with Paul Merchants, which would enable them to expand their reach to the NRI customers.
source:insuremagic.com

Insurance cos set to get more financial leeway

The Insurance Regulatory Development Authority (IRDA) is set to allow insurance companies to invest in a few more financial instruments including derivatives.The proposed move will enhance returns for policy holders.

Currently, insurance companies are allowed to invest in around 58 financial instruments. A broadbasing of the categories of investments to include derivativesis now on the cards. “For policy holders, the move will mean higher yields with better risk management”, said S V Mony, secretary general, Life Insurance Council.

IRDA had proposed delinking the norms governing investment of assets by insurance companies from the main Insurance Act and bringing it under IRDA regulations.

The regulator plans to make a few changes which do not need an amendment to the main Act. One such change includes adding a few more instruments to the investment category known as “other than approved securities, said C S Rao, chairman IRDA


Source: The Economic Times

QBE AND RAJAN RAHEJA IN JV FOR GENERAL INS

21/July/2007
The QBE Insurance Group, Australian major -- has entered India's growing general insurance market by signing a joint venture agreement with diversified conglomerate Rajan Raheja Group.
According to sources, QBE will invest around seven million dollars initially for a 26 per cent stake in the JV, to operate in the Indian general insurance business.
A managing director will also be nominated by QBE and provide technical expertise. It has the option to increase its equity to 50 per cent ,if the Indian legislation permits so.
Frank O’Halloran, the QBE CEO has said that the group is excited about the opportunity to work in India 's rapidly growing general insurance market. He also expressed his delight on his partnership with the Rajan Raheja Group, which has extensive interests in India and a track record of successful joint ventures with foreign partners.
Subject to IRDA approval, the joint venture company expects to begin trading in early 2008