ZEE BIZ EXCLUSIVE: BIG – General Insurance Companies get IRDAI nod to raise premium on Corona Kavach Policy; BUY New India Assurance, ICICI Lombard stocks, Anil Singhvi says

BIG development for general insurance companies and for the customers. Zee Business’ Anurag Shah brings an exclusive news that will not only impact insurance companies including the listed ones but also customers and the investors. The pressure on general insurance companies is likely to come down, Shah said in this report. This will have a positive impact on ICICI Lombard General Insurance Company Limited and The New India Assurance Company Limited. 

In the second wave of the Coronavirus Pandemic, the claims received by the General Insurance Companies increased significantly. Even the direction by Insurance and Regulatory Development Authority of India (IRDAI) to launch health insurance cover exclusively for the treatment of Covid-19 – Corona Kavach – at low premiums created pressure, he added. As a result of which, the general insurance companies created such terms and conditions on the policy that it became unviable for customers to get this policy.  

See Zee Business Live TV Streaming Below:

The big development is that the companies have now been allowed to increase the pricing of the said policy and have already started increasing the premiums.  

It was being said that the price has been increased also because it has been one year since the policy was launched. 

Shah said that this news is favourable for the insurance companies. With talks already over the third wave, the companies are likely to sell the policies with higher premiums, Shah said. He said that this news augurs well for all the general insurance companies.  

He said that this may also have a direct impact on other health insurances in their portfolios as other products may also be allowed with higher premiums. 

Shares of ICICI Lombard shares were trading at Rs 1472 around 12 pm on the NSE, down by 0.8 per cent from the Friday closing price. Meanwhile, New India Assurance shares were up over 3.8 per cent and were trading at Rs 164.60 around this time.  

Zee Business Managing Editor Anil Singhvi said that the insurance stocks have performed badly because of the onslaught of the pandemic on the businesses. This is the right time to invest in these stocks, he said. The below par results being announced by listed companies is on the back of higher claims because of the Covid-19. 

There is now more awareness among the people for health insurance and that will help the cause of the insurance companies to further their business.  

Singhvi said that New India Assurance is one stock which is his favourate. He said that this stock must be in your portfolio. He said that this stock can do wonders for you. He puts the target price of Rs 200-225 over the one-year period.

Watch Zee Business Tweet Video Below:

ZEE BUSINESS EXCLUSIVE

ICICI लोम्बार्ड, न्यू इंडिया अश्योरेंस के लिए बड़ी खबर...

कंपनियों को कोरोना कवच पॉलिसी में प्रीमियम बढ़ोतरी की मंजूरी मिलना शुरू- सूत्र

अनिल सिंघवी- ICICI लोम्बार्ड, न्यू इंडिया अश्योरेंस को पोर्टफोलियो में जरूर रखें@AnilSinghvi_ @anuragshah_ pic.twitter.com/0gKnMTNgO7

— Zee Business (@ZeeBusiness) July 26, 2021

Meanwhile, ICICI Lombard shares are also expected to do well.