Insurance policies are all set to take the ‘customisation’ path!!
The financial security covers will soon come with add-on services, by just paying some extra premium. The Insurance Regulatory and Development Authority (IRDA) has approved the customisation of non-life policies for extra premium that insurers for new products from January 2009.
So when you buy a motor insurance policy, you may get options like a temporary replacement of a car in case it breaks down, or even complete reimbursement of damages even if the vehicle is over five-years-old , by paying extra premium on the insurance cover.

The latest update from the Non-Life Insurance sector has confirmed that the once profitable Fire Insurance Business has now turned into a loss making unit for most Private players in the General Insurance sector.

The Economic Times reported that the scenario might be so bad that two of the players are looking for fresh infusion of funds to stay afloat and promoter of another is contemplating a complete sell-out.

So what went wrong? Most industry experts say that the agressive undercutting and sudden reduction in prices is to be blamed for this. This has led to a reduction in the percentage contribution of Fire Insurance in the overall protfolio's of Private Insurers.

Govt owned general Insurance companies are losing market share and the Pvt players are gaining speed in terms of market share in general life insurance business.This happening due to free pricing policy in this sector where the private players are more aggressive then State owned players.

The slower growth among state-owned companies has resulted in ICICI Lombard displacing public sector Oriental Insurance to become the fourth-largest insurer in India.