Top Stories
Finance ministry meets insurers to revive the sector
Finance minister P Chidambaram met life insurers to discuss ways to revive the sector, including tax-related issues and the industry’s concerns over the constant regulatory changes by IRDA (Insurance Regulatory and Development Authority). The meeting was held in New Delhi on 4th September.
Mr Chidambaram suggested insurers to prepare action points on major concerns such as products and distribution, investment norms, taxation and micro insurance. A follow up meeting will be conducted in the next couple of weeks to focus on industry demands… Read more
Insurers to demand appellate tribunal for the sector
Insurance companies are likely to demand an appellate tribunal for the sector. The insurers are expected to take up this issue with IRDA (Insurance Regulatory and Development Authority) and the finance minister P Chidambaram in a meeting on Tuesday, the media reports said.
The meeting is aimed at removing the obstacles hindering the growth of industry. At present, IRDA doesn’t have an appellate tribunal. According to insurers, three things will be stressed in the meeting—issues in the industry, issues with the regulator and those regarding tax, the reports added… Read more
Only 13 health policies sold in June 2012
Just 13 non-linked health policies in individual single premium (without-profit sub-category) were sold in June 2012 against 60 policies sold in June 2012, according to the latest data released by IRDA (Insurance Regulatory and Development Authority).
The IRDA released figures of monthly business of life and non-life insurers and segment wise. Only 14 linked health policies (without-profit sub-category) were sold in June 2012, compared with 105 in June 2011. The with-profit category figures stood at zero… Read more
New business income of life insurers gain 16% in April-July
The life insurance industry registered 16.37% growth in new business income in April-July, according to IRDA (Insurance Regulatory and Development Authority) data.
LIC’s (Life Insurance Corporation of India) income rose 23% to Rs. 238.58 billion during April-July. The growth declined by a relatively poor performance of private insurers with 0.9% decline in income from sale of new policies. SBI Life reported 21.43% decline in business by selling new policies to Rs. 12.58 billion while ICICI Prudential reported 24% increase to Rs. 13.99 billion.
IRDA approves 30% stake purchase of PNB in MetLife India
The IRDA (Insurance Regulatory and Development Authority) has approved a 30% stake purchase by Punjab National Bank (PNB) in MetLife India Insurance Company on 31st August.
“The IRDA considered the proposal for change in the shareholding pattern of MetLife India Insurance Company Limited and broadening the definition of ‘Indian Promoter’ as defined under the IRDA (Registration of Indian Insurance Companies) Regulations, 2000 to include a Limited Liability Partnership,” the regulator said in a press release… Read more
IRDA seems to have Life Insurance Council as merely a forum
Insurance companies have been constantly working on positioning Life Insurance Council as an association headed by a professional secretary general, the media reports said.
However, IRDA (Insurance Regulatory and Development Authority) doesn’t seem to accept this. IRDA wants the body as merely a forum for the industry under the ambit of the regulator. This intention of IRDA has become obvious in the appointment of the senior official in place of SB Mathur, who retired as the secretary general last week, the reports added… Read more
Trivia
Neil Armstrong’s Life Insurance Policy
Next week, on 13th September, a memorial service to honour astronaut Neil Armstrong will be held at the Washington National Cathedral located in Washington, DC. People around the world have been remembering the former American astronaut Neil Armstrong. He died on 25 August 2012, at the age of 82 in his home state of Ohio, from complications of a cardiovascular procedure. All of us know that Neil Armstrong was the ‘first’ man to walk on the moon… Read more
New Launches
Aviva India launches mobile application
Aviva Life Insurance has launched its mobile application Aviva Mobile. Customers can now keep track of their investments on the move by downloading the application free of cost on any Android, Blackberry/RIM and iOS based smart device. The user friendly application enables customers to check their policy and fund details, request for premium receipt, pay premiums and access Aviva India’s product suite on the go. Aviva Mobile also allows customers to access the latest stock market news, live cricket scores and get instant weather updates at the click of a button… Read more
ICICI Lombard launches Complete Health Insurance plan
ICICI Lombard General Insurance Company Ltd has launched a unique health insurance product called "ICICI Lombard Complete Health Insurance". Keeping the needs of the customer in focus, this flexible product has been designed to meet the health insurance requirements of the customer and the complete family… Read more
Domestic News
LIC to invest Rs. 500 bn by FY12-13
Life Insurance Corporation of India (LIC) is planning to invest Rs. 500 billion in equities in the financial year 2012-13. LIC is also aiming to increase its investment in public sector units (PSUs) as government has instructed it to prepare for divestments. LIC has earmarked Rs. 200 billion for upcoming PSU share sale, the media reports added.
According to the Insurance Act, equity exposure in a single entity is limited to 10%. LIC can invest up to 10% of the capital employed by the investee company, or 10% of the fund size in a corporate entity, whichever is lower. The capital can be invested in share capital, free reserves and debentures or bonds.
Should you opt for mutual funds with free insurance cover?
Fund houses like ICICI Prudential Mutual Fund, Reliance Capital Asset Management Company and Birla Sun Life Mutual Fund have been launching insurance-wrapped funds.
ICICI Pru MF introduced Systematic Investment Plan Insure facility (SIP Insure) in selected schemes in May 2012. SIP Insure is an optional feature in addition to SIP. A group life insurance cover shall be provided under this facility by a life insurance company. The premium for providing such cover shall be borne by ICICI Prudential AMC. The minimum installment will be Rs. 1,000 for all schemes except ICICI Prudential Tax Plan for which the minimum amount is Rs. 500. Maximum age up to which SIP Insure is available is 55 years… Read more
Health insurance for your parents
Anuja Gupta, 63 years old, recently renewed her health insurance for senior citizens for the second year. Ms Gupta felt that she was lucky as she had an adequate health insurance cover. When Ms Gupta, a widow, was suddenly hospitalized a couple of months back, she didn’t have to worry about the high cost of her medical treatment because of her health insurance policy… Read more
Women LIC agents’ meet organised on 3rd September
The session Life Insurance Corporation Agents’ Organisation of India (LICAOI) held in Mangalore on Monday pointed out the benefits that need to be provided to women LIC agents. Among the demands for women LIC agents included providing them provident fund, pension, health insurance, pensions and welfare schemes. Of the 1 lakh LIC agents in Karnataka, 40,000 are women.
IndiaFirst: Moving towards safer roads through AutoLife
IndiaFirst Life Insurance, a joint venture between two public sector banks—Bank of Baroda and Andhra Bank along with UK's risk, wealth and investment company Legal & General announced their Social responsibility initiative towards road safety through Autolife.
The announcement was made by Dr P Nandagopal, Managing Director & CEO, IndiaFirst Life Insurance. As per figures recorded by the National Crime Records Bureau 2011, accidents have been showing a rising graph with 2.2% more deaths reported in 2011 than in 2010. Worryingly, the World Health Organization predicts that road accidents will become India's third biggest killer by 2020… Read more
Max Bupa expands footprint in Karnataka
Max Bupa, a specialist health insurance company, today announced the opening of two new Branch Offices in Bangalore, located in Malleswaram and Indira Nagar extending its network to 19 branch offices across India. Showcasing its strong growth trajectory in the Indian health insurance market, the company also celebrated the milestone of having insured more than 300,000 customers in its third year of operations… Read more
New Appointments
Tata AIG General announces senior management change
Tata AIG General Insurance Company announced that Gaurav Garg will move on from his role as MD and Chief Executive Officer of Tata AIG General Insurance in mid-September 2012. The Company has achieved all round progress under his leadership and has won several awards taking the Company to an enviable position. Gaurav will continue to assist the Company for a period of time as Advisor to the Board and Senior Management… Read more
Atanu Sen takes over as MD and CEO of SBI Life
Atanu Sen has taken over as Managing Director & CEO of SBI Life Insurance, the largest private life insurer, of the country, from the incumbent M. N. Rao, who retired on 31st August, 2012. A Post Graduate in Economics from Calcutta University, Sen started his career with SBI in 1977 as a probationary officer… Read more
V Manickam appointed Secretary General of Life Insurance Council
V Manickam, Ex- Managing Director and CEO of LIC Pension Fund took charge as the Secretary General of Life Insurance Council. A qualified Chartered Accountant, having more than 29 years of service in Insurance & Pension Industry, has been appointed by the Insurance Regulatory and Development Authority, Hyderabad recently… Read more
International News
AIG launches sale stake in former Asian unit AIA
American International Group Inc launched the sale of a stake in its former Asian unit AIA on Thursday, providing the insurer with funding to help repurchase up to $5 billion of its stock from the US government, according to media reports. While no other details have been announced by US Treasury about another share sale, its latest lockup expired early this month, meaning an offering would potentially bring the government's investment below 50%, the reports added… Read more