Non-life insurers to offer cover for alternative treatments
According to media reports, many non-life insurers are in the process of launching retail health insurance policies that cover alternative forms of treatments, while several insurers—which already cover such treatments—are in the process of increasing the limits.
Alternative treatments are also called ‘Ayush’, includes ayurveda, unani, sidha and homeopathy. At present, alternative treatments are offered by seven non-life insurers out of 24 companies with certain limits and conditions. Some of the insurers that cover hospitalisation under alternative treatments are New India Assurance, United India, Oriental Insurance, National Insurance and Tata AIG among others.
In many ways, treatment under alternative forms of medicines is quite similar to the treatment procedures followed under allopathic medicine. But, because alternative forms of medicine are still considered outside the scope of traditional medicine, most non-life insurers do not cover such treatments in their health insurance plans.
The reports said, “New India Assurance, which covers alternative treatments up to 25% of the sum insured, has already filed a product with Insurance Regulatory and Development Authority (IRDA). The product would cover a higher amount for alternative treatments against the existing limit of up to 25% of the sum insured.” The state-run general insurer covers ayurveda, unani and homeopathy, if the treatment is availed in a government hospital… Read more
Insurers reduce discounts on own-damage motor policy by 20%
According to media reports, non-life insurers have reduced discounts on commercial and private own-damage motor policy by 20%, as third-party motor risk moves to ‘declined pool’.
The IRDA (Insurance Regulatory and Development Authority) recently formed the declined pool and had replaced the third-party motor pool. The declined pool will have lower contribution from industry for the insurance cover at about Rs. 12 billion against over Rs. 60 billion earlier.
The reports added, “Third-party motor risk, which earlier went to the third-party pool, will now put pressure on insurers and they will have to take the claim on their balance sheet. This will prompt insurers to emphasise on better underwriting and management of risk.”… Read more
FM: State-run general insurers to increase policy premiums
In a letter to state-run general insurers, the finance ministry has asked state-run general insurers to increase premiums on health insurance, motor and other policies. The letter was addressed to National Insurance, Oriental Insurance, New India Assurance and United India Insurance. The ministry has also asked the public sector insurers to stop undercutting each other to attract customers.
The letter said premiums on all stand-alone group health insurance policies coming for renewal this year should be increased, with regard to the total expenses. As the four non-life insurers reported a decline in their net profit despite growth in premium, the finance ministry asked them to restructure their premiums and turn around their loss-making branches. The net combined losses of the four insurers on group health insurance were estimated at Rs. 15 billion in 2011-12… Read more
In Focus Stories
IRDA issues new guidelines for health insurers
All health insurers will now have to provide health insurance to citizens up to the age of 65 and settle all claims in 30 days.
Under the new regulations, Insurance Regulatory and Development Authority (IRDA) has advocated that health insurers will have to provide an entry and exit age. They will have to provide an entry age of up to 65 years. The regulator also said that health insurance policies will not have an exit age for policy renewal.
All policies will allow for treatment across India. Also, life insurers can offer products with a four-year term, while non-life insurers can offer products up to three years. The IRDA has asked all stakeholders to send in their feedback by 30th June… Read more
Marine hull insurance premium income rises only 1.05% in FY12
General insurers’ premium income from marine hull and aviation policies grew less than 5% in the financial year ended 31 March 2012 because of the slowdown in expansion in the sectors.
According to the IRDA data, marine hull insurance premium income grew 1.05% to Rs. 10.06 billion, while income from aviation premium grew 4% to Rs. 4.86 billion.
The gross written premium for the industry increased 23.23 % to Rs. 470 billion in FY11-12, driven by increase in health and motor insurance.
Max New York Life net profit zooms 159% to Rs. 7.33 billion for FY12
Max New York Life Insurance, the largest non-bank owned private life insurer, recorded 10% growth in gross premium to Rs. 63.91 billion while the profit increased 159% to Rs. 7.33 billion for the financial year ended 31 March 2011-12.
The company also performed well on other parameters like asset under management, recording a growth of 24% to Rs. 172.15 billion over the last financial year, while solvency margin increased to 534%. Max New York Life has now one of the lowest customer complaints incidence ratio at just 0.2 per thousand for FY11-12. The company’s outstanding claims ratio has come down to 1.6% as on 31 March 2012… Read more
M&M, Travelers Group to enter general insurance business
According to media reports, Mahindra & Mahindra Ltd (M&M) is in talks to form a general insurance joint-venture with the US-based insurance company Travelers Group.
The Indian utility vehicle maker had appointed global professional services provider KPMG to find a partner with technical experience for operating a general insurance company.
International insurers have been seeking to enter India's insurance market despite the Indian government constantly deferring decision on the much awaited Insurance Amendment Bill. The revised Insurance Laws (Amendments) Bill proposes to retain foreign direct investment (FDI) limit in insurance sector at 26% from 49% proposed earlier.
The Standing Committee wa
s concerned that the increased role of foreign capital (49%) may lead to the possibility of exposing the economy to vulnerabilities of global markets which may lead to capital flowing outside the country and also endanger the interest of policyholders… Read more
IRDA issues guidelines on approval of agents training institutes
On 25th May, Insurance Regulatory and Development Authority (IRDA) has issued a circular listing standard instructions and guidelines applicable for approval/renewal of agents training institutes.
For the purpose of accreditation of private Agents Training Institute, the proof of ownership/ tenancy of the premises (ATI registered office and branch) in the name of Agent Training Institute are sufficient for accreditation. In case of in-house Agents Training Institute where the training center is in the branch approved by IRDA, copy of IRDA approval of branch is acceptable.
SBI Life Insurance receives PSU Award 2012
SBI Life Insurance Company Ltd was awarded the “Top Indian Public Sector Enterprise” under the Insurance Sector for 2012.
M. Veerappa Moily, Minister of Corporate Affairs, Government of India presented the award to Vincent Sussfeld, deputy CEO, SBI Life Insurance and Ashutosh Sharma, regional director–North 2, SBI Life Insurance in the presence of Kaushal Sampat, president & CEO–India, Dun & Bradstreet.
Dun & Bradstreet is the world’s leading provider of global business information, knowledge and insight. The award felicitated the leading PSUs through ‘PSU Awards 2012’ across various sectors and categories of business excellence.
Prudential Plc to acquire SRLC America for $621 million
Jackson National Life Insurance Company, an indirect wholly-owned subsidiary of Prudential plc, entered into an agreement to buy SRLC America Holding Corp (“SRLC”) from Swiss Re. Jackson will pay US$621 million (£398 million) in cash for the business, financed from its own resources. The purchase price will be adjusted as explained in more detail in the explanatory notes below. Swiss Re will retain a portion of the SRLC business through reinsurance arrangements to be undertaken prior to completion. The transaction is subject to regulatory approval and is expected to complete in the third quarter of 2012.
SRLC is a life insurance business that sits within the US division of Swiss Re’s Admin Re. The primary operating subsidiary of SRLC is Reassure America Life Insurance Company (“REALIC”), which since 1995 has completed a significant number of transactions through stock acquisitions and reinsurance arrangements and has acquired a diverse portfolio of traditional US life business. The earnings of SRLC are derived from seasoned, long-duration cash flows generated principally from term life, whole life and basic universal life products. Jackson will acquire assets related to the subject business of approximately £6.7 billion and approximately 1.5 million policies… Read more