Top Stories
IRDA to cover travel, personal accident, CI under health insurance
According to the draft guidelines issued by Insurance Regulatory and Development Authority (IRDA) in May, travel, personal accident and critical illness (CI) covers will come under the health insurance segment.
“Health insurance business means the effecting of insurance contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, travel health insurance and personal accident cover,” said the IRDA draft.
At present, personal accident and CI covers come under miscellaneous business. The Health Insurance Act, which comprises health insurance, does not include travel, personal accident and CI covers. Hence to include these covers under the health insurance may require the approval of finance ministry… Read more
General insurers must declare claims in IPO offer: SEBI
On 25th July, SEBI (Securities and Exchange Board of India) released disclosure norms for initial public offerings (IPOs) launched by general insurers. The disclosures must accord to the format published by Insurance Regulatory and Development Authority, the market regulator said.
While equity markets are regulated by SEBI, IRDA supervises the insurance industry. Under the new IPO norms issued by SEBI, GICs (general insurance companies) must also declare cross-selling and claims while going in for an IPO, and must declare risk factors, which will act as guidance.
A GIC will also be mandated with declaring the maximum possible loss ratio to potential investors, SEBI said. Claims under review must also be disclosed and classified by age and type, SEBI said.
IRDA to relax equity investment rules for insurers
The Insurance Regulatory and Development Authority (IRDA) is considering relaxing the 10% ceiling on equity investment by insurers in a company. This move will not only attract long-term investments into the equity markets but it will also give greater investment flexibility to Life Insurance Corporation of India—India’s largest institutional investor.
In 2008, the insurance regulator amended investment norm that prohibit an insurer from having more than 10% stake in a company. In April 2012, LIC had come under the scanner of IRDA for exceeding investment limit in 78 companies—of which only 27 were listed. Some companies where LIC has exposure in excess of 10% include L&T, ITC, JSW Steel, MTNL and Wockhardt. IRDA had said it would not force LIC to reduce its stake immediately nor would it set a time frame for the exercise… Read more
Maruti Suzuki to bear revenue loss of Rs. 4 billion
Carmaker Maruti Suzuki may have to bear the revenue loss of more than Rs. 4 billion due to disruptions at its plant as its insurance claims is restricted to a just Rs. 50 million damage to plant, according to media reports.
Maruti has an insurance cover worth Rs. 162.13 billion from four insurers —Iffco Tokio General Insurance, Bajaj Allianz, National India and United India. The insurance plan does not cover the loss of production due to interruptions, but only damages to plant and machinery, insurers said. Iffco Tokio General is the major insurer with 60% exposure to the Maruti account, followed by Bajaj Allianz with 17.5%, National India 15% and United India 7.5%... Read more
Leader Speak
We plan to underwrite our 1st policy on 1st Oct: Magma Fincorp
Sanjay Chamria, VC & MD, Magma Fincorp, said, “Magma HDI General Insurance is a 74: 26 joint venture between Magma Fincorp and German insurance major HDI-Gerling. HDI-Gerling is part of the third largest insurance group in Germany, Talanx Group. The promoters have infused an initial paid-up equity capital of Rs. 2.08 billion into the new general insurance joint venture.”… Read more
New Launches
ICICI Lombard offers Overseas Student Travel Insurance
The fall season has officially begun and students will be keeping a close eye on universities abroad while planning their higher education. For safeguarding students and securing their stay abroad, ICICI Lombard General Insurance Company Ltd offers Overseas Student Travel Insurance, a comprehensive health plan designed in a manner that understands the needs and requirements these students… Read more
Aegon Religare Life launches iHealth plan
Aegon Religare Life Insurance has announced the launch of an online health plan called the Aegon Religare iHealth plan. This plan is available exclusively and is specially targeted at individuals looking for simple, comprehensive and cost effective insurance solutions.
Domestic News
IRDA: More entities to sell micro insurance product
The Insurance Regulatory and Development Authority (IRDA) has proposed to broaden the product portfolio and distribution network of the micro insurance sector. The regulator has allowed more organization and individuals to sell the product.
IRDA has proposed to allow cooperative banks, regional rural banks, primary agricultural cooperative societies and individuals (shopkeepers, medical store owners, petrol pump owners, public telephone operators) to act as micro insurance agents.
According to IRDA, a majority of the products offered under micro insurance are mostly term assurance. It has asked insurers to consider diversifying the portfolio of micro insurance products by including savings-linked and health cover features.
Madras HC increases compensation award for accident victim
Madras High Court Bench at Madurai rejected the verdict given by Motor Vehicle Accident Compensation Tribunal and increased the compensation awarded to the accident victim’s family by a lower court.
The case was related to a woman fruit vendor aged 60, who was killed in an accident on 28 January 2010 after being hit by a car. Her sons demanded compensation, as they were completely dependent on their mother. The tribunal awarded Rs. 1 lakh as compensation and directed the National Insurance Company to give it to her two sons… Read more
Provident Funds and MP Act: Implementation & difficulties
“To achieve the objectives of the Provident Fund Scheme, it is must to ensure a high degree operational and administration efficiency of the PF Organization instead of time consuming formalities. The present EPF and MP Act have lot of burning issues and confusions,” Chairman, Industrial Relations Committee, PHDCCI, Ravi Wig said… Read more
HDFC Life sells 4,000 policies of Smart Woman Plan
Private insurer HDFC Life said it had sold over 4,000 policies of its Smart Woman Plan launched in June. The company said that it has received a good response for Smart Woman Plan which is designed to cover specialised risks concerning women, including pregnancy complications and cancer… Read more
Pan Card Club to pay compensation of Rs. 50,000: Consumer Forum
The Thane District Consumer Redressal Forum has ordered Pan Card Club to pay compensation of Rs. 50,000 to the widow of a rickshaw driver who died of heart attack.
The Forum has cleared the New India Insurance Company of all the charges levelled against it and held that it was not liable to pay the compensation to the applicant widow as the policy premium was not received by it.
According to the Forum, Pan Card Club had failed to explain the provisions of the membership and personal accident insurance details to the rickshaw driver who took the club membership… Read more
LIC Finance Q1 results drops 11% at Rs. 2.27 bn
The Board of Directors of LIC Housing Finance announced its un-audited results for the first quarter ended on June 30, 2012. The company has recorded a healthy growth in business during the first quarter ended June 2012. In the individual loan category, LIC Housing Finance sanctioned Rs. 49bn, a growth of 33 % over the corresponding period of the previous year, whereas the disbursements in that category were Rs. 44.7bn, a growth of 29% over the corresponding period of the previous year… Read more
HDFC Life among India’s ‘Best Companies to Work for 2012’
HDFC Life has been acknowledged as one of India’s Top 50 ‘Best companies to Work’ for the third consecutive year. This year HDFC Life featured among ‘Top 25 Companies to work for’ and ranked 23rd in a study conducted by Great Places to Work®Institute, India in partnership with Economic Times… Read more