Insurance Newsletter – February 03 to 07, 2014

The DIPP guidelines have clarified that the foreign investment limit will consists of FDI, foreign institutional investors (FII) and non resident Indian (NRI) routes.

February 08, 2014 2:29 IST | India Infoline News Service
Top Stories

DIPP allows 26% cap for FDI, FII, NRI investment in insurance
The Department of Industrial Policy & Promotion (DIPP) on Wednesday has released new foreign direct investment (FDI) policy guidelines for the insurance sector while retaining the FDI cap at 26 percent.

The DIPP guidelines have clarified that the foreign investment limit will consists of FDI, foreign institutional investors (FII) and non resident Indian (NRI) routes.

The DIPP has also specified definitions of each of these four sectors and most of these definitions have been taken from the Insurance Regulatory and Development Authority (IRDA) rules and norms regarding insurance companies, insurance brokers, third party administrators and surveyors.

IRDA forms panel to review recommendations of FSLRC

The Insurance Regulatory and Development Authority (IRDA) on Friday has formed a nine-member committee to review the 14 non-legislative recommendations made by the Financial Sector Legislative Reforms Commission (FSLRC).

The committee will also examine the extant legislative and regulatory framework in compliance 14 non-legislative recommendations (NLRs), IRDA said in an order.

The non-legislative recommendations are related with consumer protection, transparency and capacity building, among others. The IRDA said the committee will submit its report by end of April 2014... Read more

IRDA proposes draft norms on micro insurance plans
The Insurance Regulatory and Development Authority (IRDA) has issued a revised set of proposals on micro insurance products.

The IRDA has invited feedback on the revised set of proposals by February 14. After this, the final set of regulations will be drafted.

They shall come into force on the date of their publication in the Official Gazette, IRDA said.

According to the IRDA draft, partial withdrawals may be permitted from the second policy year onwards, subject to ensuring maintenance of a minimum balance equivalent to one annual premium in the policy account... Read more

Domestic News

New India Assurance Q3 profit rise 36%
The General Insurance major, New India Assurance Company Limited continued its impressive performance by posting an increase of 36% in Profit After Tax to Rs. 701 crores for the period upto December 2013.
Declaring the Third Quarter results Mr. G. Srinivasan, CMD told the press that the global premium of the company grew by 15% to touch Rs. 10255 crores. The Indian business increased by 16% to reach Rs. 8337 crores. The company has been able to increase its market share for the year.
Accelerated claims settlements and underwriting caution, saw the Incurred claims of the Company coming down to 86% from the previous year’s 89%. The operating expenses ratio also came down marginally to 23.65 % from 23.82 %. Company’s combined ratio came down to 120% at the end of December 2013 from 122% recorded on 31st December 2012... Read more

Max Life Insurance Q3 PBT up 15% to Rs. 657 crore
Max Life Insurance, India's leading life insurance company announced its nine months results for the Financial Year 2012-13. The Company continued its profitable growth journey and recorded a Profit before Tax of Rs. 657 crore, up 15%, while the total revenue recorded an increase of 2% to Rs. 4,560 crore. The Company also performed well on other parameters like Assets Under Management that increased by 31% to Rs. 20,080 crore over the corresponding period last year and Sum Assured that touched Rs. 1,64,293 crore, recording an increase of 10%. The Company has a solvency margin of 551%, which clearly indicates its strong and stable financial position... Read more

Bajaj Allianz Life successfully completes Special Revival Campaign
In order to help policyholders renew their lapsed Life Insurance policies, Pune-based Bajaj Allianz Life Insurance had launched a Special Revival Campaign. This campaign started on the 18th Jan 2014 and ended on 31st March 2014. The purpose of the campaign was to renew lapsed policies that fall under their prescribed revival period.

Special benefits were extended to the Policy Holders under this campaign such as 50% waiver of interest amount on Traditional Policies.

The private insurer also relaxed its underwriting norms by simplifying the DGH (Declaration of Good Health) form and waving medicals for the policyholder's whose age is up to 55 years.

Standard Chartered Bank, Max Bupa tie up for bancassurance
Standard Chartered Bank and Max Bupa announced their bancassurance corporate agency arrangement to provide Max Bupa’s comprehensive health insurance offerings to the diverse customer base of Standard Chartered Bank across the country.

The arrangement comes on the back of IRDA’s guidelines which permits a stand-alone health insurance company to avail the services of Corporate Agents of other Life and / or Non-Life insurance companies to distribute their products in addition to the existing arrangements of the Corporate Agents with one life and one general insurance company... Read more

Canara Bank, Apollo Munich Health Insurance offer “Energy” for diabetes patients
For the customers of Canara Bank, living with diabetes does not have to be bitter any more. The bank announced that in association with Apollo Munich Health Insurance Co,  it will offer “Energy - The Sweetest Thing for individuals living with Diabetes Mellitus 2 and/or hypertension” - to its customers. To start with, the product is being offered across top eight cities in India. Leading stand-alone health insurer, Apollo Munich Health Insurance launched ‘Energy’ at the end of 2013 and has received rave reviews for the unique product offering in the marketplace... Read more

Tata AIA Life unveils Insurance Secure 7
Income protection is a key requirement in today’s environment. Tata AIA Life Insurance Company Limited (Tata AIA Life) helps fulfill this critical need through Tata AIA Life Insurance Secure 7, a simple offering that provides income protection with the added advantage of guaranteed returns*.
“Our research shows that customers have varying expectations from their insurance solution, be it income protection, payback of the premiums, or earning returns on the premiums paid. Tata AIA Life Insurance Secure 7 is a limited pay plan that helps customers to break free from all their limitations by fulfilling their different life needs. The solution provides customers with protection and good value for money,” said Amitabh Tapadar, Chief Marketing Officer, Tata AIA Life Insurance... Read more

Max Life Insurance i-genius wins coveted Golden Mikes 2014
Max Life Insurance i-genius has won the Golden Mikes 2014, one of the most coveted Indian Radio awards, for its programme Chote Geniuses ki Kahaniyaan – with Neelesh Misra” on 92.7 Big FM. Max Life Insurance won the award in two categories for this unique media property 1) Best first time effective use of Radio and 2) Best Use of Branded content/ sponsorship on Radio. Earlier in 2013, Max Life Insurance i-genius had launched a nationwide hunt for young writers through its progamme, i-genius Young Author’s Hunt. Authors Ruskin Bond and Chetan Bhagat along with the editorial team at Rupa Publications India shortlisted the top 50 stories from 5,000 plus entries received from across India.  The collection of these stories formed the book ‘i-genius – A Twist in the Tale’... Read more 

International News

69% firms say advisers with CFP certification see a higher rate of AUM growth
Financial services firms around the world reported that certified financial planner (CFP) professionals are more productive, generate higher revenue and profit, and reduce corporate risk and client complaints. The research, conducted by Comparator, an Australian benchmarking organization with more than 10 years experience in wealth management/financial advice benchmarking, surveyed 92 financial services firms in 12 territories, representing 120,117 financial advisers and 11,568 CFP professionals... Read more


Top up plan: Enhance your medical cover at low-cost premium
Most people on an average buy health insurance cover between Rs. 1 lakh and Rs. 3 lakh. This amount may be sufficient for minor surgery. However with rising healthcare expenses, the above sum insured may not be sufficient.

Many people are also concerned about the limited amount of sum insured—which their health insurance plans offer—since medical expenses have increased tremendously. At the same time, these expenses can neither be delayed and unavoidable... Read more

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