Insurance Newsletter - November 12 to November 16, 2012
SBI Life Insurance, the leading new generation life insurer has been rated as the “Most Trusted Private Life Insurance Brand, 2012”, for the second consecutive year as per the Economic Times Brand Equity- Nielsen Survey
More than 70% of workers lack unemployment protection
More than 70% of workers worldwide have no statutory access to unemployment insurance or any type of unemployment assistance, the International Labour Organization (ILO) said.
Unemployment insurance schemes exist in 72 countries out of 198 monitored by the ILO, most of them being middle- and high-income countries. The proportion of unemployed workers without any such income security is even higher (86 per cent) if one includes those who haven’t paid social security contributions long enough to qualify for unemployment benefits, as many unemployment insurance schemes are based on contributions… Read more
Insurance for HIV/AIDs patients soon: Reports
Since providing insurance cover for HIV/AIDS patients is expensive, insurance companies in India were usually hesitant to provide insurance policy to these patients.
In September 2011, the Delhi High Court directed IRDA (Insurance Regulatory and Development Authority) to provide health insurance to PLHIV/AIDS. In February 2012, IRDA released the draft norms asking for feedback and stating that the final guidelines for covering PLHIV/AIDS would be issues by October 2012. However, in absence of data to price such products, the final guidelines could not be released, the media reports said… Read more
Non-life insurers invest to set up TPA in 6 months: Reports
State-run non-life insurers that have started setting up a common third-party administrator (TPA) would initially invest Rs. 1 billion. The four insurers plan to set up the TPA company in the next six months, the media reports said.
The four state-owned non-life insurers are setting up a common third-party administrator to settle medical insurance claims. The move is aimed at cutting down huge claims ratio and enhancing profits… Read more
Terms commonly used in health insurance plan
Before you plan to buy an adequate health insurance cover become an informed consumer. Read the definitions of commonly used health insurance terms. It serves as a dictionary to help you understand common terms used in health insurance… Read more
Delhi govt to review emissions norms: Reports
The Delhi government is set to check vehicular pollution in the city as part of a five-year action plan. Benefits of car's insurance cover are likely to be linked to the vehicle's pollution and may be included in new regulations that are likely to be implemented, according to media reports.
The Delhi government and the Centre for Science and Environment will review emission norms for new vehicles… Read more
In-person verification for investment in ‘new’ mutual funds
From December 1, 2012, certain additional information needs to be submitted as well as an ‘in person verification’ (IPV) needs to be completed for further investments in any mutual fund (other than the one in which the investors have already invested).
SEBI (Securities and Exchange Board of India) vide circular MIRSD/SE/Cir-21/2011 dated October 5, 2011 has recommended / mandated all mutual fund investors, that the standard KYC form and supporting documents is to be used in accordance with the uniform KYC guidelines… Read more
IRDA widens definition of infrastructure facility
The IRDA (Insurance Regulatory and Development Authority) has widened the definition of ‘infrastructure facility’ under its Registration of Indian Insurance Companies Regulations.
In a gazette notification, IRDA made an amendment to the regulation wherein the term ‘infrastructure facility’ will be replaced by ‘harmonised master list of infrastructure sub-sectors’, as specified by the department of economic affairs, ministry of finance… Read more
Reliance Life posts net profit of Rs. 310 million for Sept quarter
Reliance Life Insurance reported net profit of Rs. 310 million for the quarter ended September 30.
Reliance Life—part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital—total funds under management increased 16% in the second quarter of current fiscal to Rs. 194.17 billion. The total premium (net of reinsurance) for the September 2012 quarter was Rs. 10.03 billion.
On quarterly basis, Reliance Life's net profit zoomed 63% from Rs. 190 million in the quarter ended June 30, 2012.
Tata Power insurance scheme helps slum dwellers
Tata Power Delhi Distribution Ltd on Tuesday paid Rs. 1 lakh to a slum dweller under a unique insurance scheme meant for residents of slums who take metered electricity connection, the media reports said.
The Tata Power-backed company supplies power in North Delhi. It gave a cheque of Rs. 1 lakh to Kuresh Khatoon, wife of Md Nadeem of Shalimar Bagh who died in a motor accident recently.
Tata Power Delhi Distribution offers the scheme free of cost to slum dwellers who take metered electricity connection. The scheme covers around 1,62,000 consumers in over 220 slum clusters in the company's distribution network, the reports concluded.
Muthoot Finance to offer national pension scheme
Kerala-based Muthoot Finance Ltd has signed an agreement with the Pension Fund Regulatory and Development Authority (PFRDA) to offer National Pension Scheme (NPS).
According to George Alexander Muthoot, managing director, Muthoot Finance, with the company’s pan-India presence and around 4,000 branches in urban and rural areas, it will ensure that the advantages of NPS reaches the maximum number of Indians… Read more
Health insurers seek relaxation on indicative premium
Health insurance companies have requested insurance regulator to relax proposed rules on indicative premiums. Health insurers have expressed their concern to IRDA (Insurance Regulatory and Development Authority) through the General Insurance Council, the media reports said.
IRDA had asked health insurers to indicate premium to be paid by policyholders in the first five years in an exposure draft in October. This proposed rule is applicable to all new products filed by insurers with the regulator for approval, the reports added… Read more
FM, labour ministry in talks for investments in IDFs: Reports
To attract long-term investments in the infrastructure sector, the finance ministry is in talks with the labour ministry to allow provident funds (PFs) to invest in IDFs (infrastructure debt funds), the media reports said.
The labour ministry administers over Rs. 5 trillion through the Employees' Provident Fund Organisation (EPFO), which manages the retirement savings of 60 million organised sector workers. Around Rs. 2 trillion is estimated to be managed by gratuity, pension funds run by India Inc and the new pension scheme (NPS) run by the Pension Fund Regulatory and Development Authority (PFRDA), the reports added… Read more
SBI Life is Most Trusted Private Life Insurance Brand: ET Brand Equity-Nielsen Survey
SBI Life Insurance, the leading new generation life insurer has been rated as the “Most Trusted Private Life Insurance Brand, 2012”, for the second consecutive year as per the Economic Times Brand Equity- Nielsen Survey… Read more
An overview of the Australian insurance market
The general insurance industry in Australia has undergone a paradigm shift in regulation and operating dynamics over the last decade. The growth of the industry has been greatly helped by both an expanding economy and population level that have grown from 15.6 million in 1985 to 22.1 million in 2011. The brokers remain the largest medium for distribution for commercial insurance whereas the personal line segment like homeowners insurance or motor vehicle insurance, etc are heavily influenced through online system directly by customers… Read more
Only minor damages to buildings from direct wind: Post-Sandy Survey
Damage from storm surge and flooding caused by Superstorm Sandy is widespread—but there is only minor damage to buildings from direct wind, according a field survey report this week from Willis Re.
Willis Re is the reinsurance arm of Willis Group Holdings, the global insurance broker. After Sandy’s landfall, representatives of Willis Re’s catastrophe management services team spent four days in affected areas assessing the damage caused by wind, storm surge and flooding… Read more
FEMA may need flood insurance bailout after Sandy: Reports
The National Flood Insurance Program, a FEMA (Federal Emergency Management Agency) subsidiary, has $2.9 billion in borrowing capacity. However, superstorm Sandy-related losses are expected to be $6 billion, FEMA said in a meeting of the Federal Advisory Committee on Insurance on Wednesday.
FEMA will probably seek a congressional bailout of its flood insurance operations, as claims from Sandy could be around four times greater than the program's capacity, according to media reports.
National Flood Insurance Program is essentially the country's only flood insurer for residential properties.
India Network Foundation to cover pre existing conditions for US visitors
India Network Foundation, sponsor of Accident and Sickness Insurance programs for visitors to the United States, announced on 10th November a new enhanced insurance plan to provide coverage for pre existing conditions.
The new insurance plan is unique in the United States providing out-patient, in-patient, accidental death and dismemberment, medical evacuation and repatriation benefits associated with any pre existing medical condition. The India Network Accident and Sickness Insurance program is underwritten by ACE American Insurance Company, United States, A+ (Superior) rated company by AM Best. Claims of the program are administered by a third party administrator, Administrative Concepts, Inc. (ACI)… Read more
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