Insurance Newsletter – August 26 to 30, 2013

India Infoline News Service | Mumbai |

The insurance regulator pointed out that according to the Telecom Commercial Communications Customer Preference Regulations 2010

Top Stories 

Insurers can invest in private equity, debt funds: IRDA

The Insurance Regulatory and Development Authority (IRDA) has allowed insurance companies to invest in Alternative Investment Funds in Category-I and Category-II.

Earlier, this was restricted to Category-I. Now, insurers would be able to invest in private equity and debt funds. However, the insurance regulator said under Category II, at least 51% of the funds of such AIF would be invested in infrastructure entities, small and medium enterprise (SME) entities, venture capital undertakings or social venture entities... Read more

Insurers should follow TRAI norms for telemarketing: IRDA

The Insurance Regulatory and Development Authority (IRDA) has asked all the chief executives of life and general insurance companies to follow the regulations of the Telecom Regulatory Authority of India (TRAI) while carrying out their telemarketing activities.

The insurance regulator pointed out that according to the Telecom Commercial Communications Customer Preference Regulations 2010, those sending commercial communications should be registered with TRAI as a telemarketer... Read more

Soon demat insurance policies under one account

Insurance policyholders will soon be able to convert all their policies into dematerised or electronic form under one folio, irrespective of the insurance company and type of the policy, according to a media report.

The demat facility will be available for life, health and car insurance policies and will maintain the same under one account. However, no details about the exact time frame have been provided.

In case of demat insurance, there is no need for providing address and identity proof of the policyholder for every purchase and will bring in all the benefits of demat to the insurance business, including automatic reminders for premium, the report added... Read more

Domestic News

LIC Nomura MF, LIC introduce auto premium payment system

LIC Nomura Mutual Fund announced an auto premium payment system (APPS) in collaboration with LIC of India for investors to ensure timely payment of their LIC insurance premiums.

It is for the first time in India that mutual fund investors will have a facility of paying their premium on time without any hassles. Through APPS, the premium amount of the investor on due date will be remitted to LIC by LIC Nomura Mutual Fund, out of the investors fund... Read more

ICICI Pru Life, Edelweiss execute SLBS trades in insurance

ICICI Prudential Life Insurance and Edelweiss Securities have executed the first trade in securities lending and borrowing scheme (SLBS) in the insurance sector in India on the NSE (National Stock Exchange).

The trade follows a recent circular by the Insurance Regulatory and Development Authority, allowing life insurance companies to participate in the SLBS scheme... Read more

Anil Ambani betting on banking licence

Reliance Capital, which applied for a banking licence in June, is adequately capitalised for the next three years.

Addressing shareholders at the Company's AGM, Anil Ambani, Chairman, Reliance Capital stated inter alia: “Apart from the long term growth potential of the proposed bank as a profitable institution in itself, the immediate benefit to your company will be the reduction in our consolidated debt from approx. Rs. 20,000 crore to Rs. 5,000 crore, upon transfer of our commercial finance business to the proposed bank. This will improve our debt to equity ratio to a most conservative 0.5:1, far lower than industry standards.”... Read more

ICICI Sec, 10 others to act as investment advisers

The Securities and Exchange Board of India (SEBI) has authorised 11 entities to act as investment advisers under the new guidelines, which aim to provide more transparency in the stock market.

Earlier this year, SEBI had issued norms making it mandatory for any person or company seeking to advise investors to be registered with the market regulator for such activities.

Among the 11 entities include ICICI Securities IFMR Investment Adviser Services, Sensage Financial Services and Valuefy Solutions.

Faster insurance claims for those affected in Uttarakhand

The government has issued specific directive to Life Insurance Corporation of India (LIC) to accept a certificate issued by the Government concerned with regard to persons missing in recent Uttarakhand tragedy.

Necessary instructions in this regard have also been given by IRDA (Insurance Regulatory and Development Authority) to all life insurers for expeditious settlement of death claims of the victims of Uttarakhand tragedy... Read more

Regulation of commission rate to insurance agents
The Insurance Regulatory and Development Authority (IRDA) has notified Insurance Regulatory and Development Authority (Linked Insurance Products) Regulations, 2013 wherein, Regulation (9) prescribes levels of commission under the linked insurance products.

Similarly Commission norms in respect of non linked products have been prescribed in Regulation (21) of Insurance Regulatory and Development Authority (Non-Linked Insurance Products) Regulations, 2013.

As informed by the IRDA, the position regarding first year premium of the life insurance business in 2012-13 was 6.48% down at Rs. 1.07 trillion, while in 2011-12 it was 9.85% down at Rs. 1.14 trillion and in 2010-11, it was 15% up at Rs. 1.26 trillion.

Learning

Healthcare financing for medical professionals

What does a doctor do if he needs to expand his business or purchase a very expensive medical equipment. Does he take recourse to a home loan, mortgage loan or personal loan or is there a loan which is tailored to meet his professional needs. A number of financial institutions now provide healthcare financing... Read more

International News

MBK Partner plans to acquire ING Life Korea

Private equity firm MBK Partners is planning to buy its South Korean insurance unit for total cash proceeds of 1.84 trn won (1.05 billion pounds), says media reports.

According to reports, under the agreement, Dutch insurer will retain about a 10% stake in the South Korean unit.

The sale of the South Korean unit will leave ING with its Japan insurance unit left to sell, bringing it closer to fulfilling its agreement with European regulators, says report.

People brace themselves for riskier world: Survey

People around the world say they're acutely aware of the risks they may face in the future, and are ready to shoulder the financial burden personally. This is a key result from a landmark survey commissioned by Swiss Re on the occasion of its 150 years anniversary. At the same time, respondents of the survey want their political leaders to do more to tackle a riskier world ahead.

People were asked what concerns them most, including ageing, climate change, natural disasters, energy and food supplies. Almost everyone is worried about prospects for the economy. Concerns about global warming and natural disasters are also widespread... Read more
 

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