News this week
Cabinet approves 49% FDI in insurance biz
The government said that the Cabinet has approved 49% FDI (foreign direct investment) in insurance industry. The Cabinet approved amendments to the Insurance Bill. The move is expected to pave way for inflow of about Rs. 25,000 crore in foreign funds in the sector, market reports said. The proposal for FDI in insurance sector has been pending since 2008 and once into force it will help attracting long term capital apart from improving the overall investment climate of the country. The industry has been demanding a raise in the FDI limit for a long time so as to attract adequate funds for the expansion of the sector. Allowing 49% FDI in the sector would apart from initiating new insurance products in the markets will also help the sector attract global standards and practices, and lead to product innovation.
49% FDI in insurance will ensure overall devpt: Exide Life
The government said that the Cabinet has approved 49% FDI (foreign direct investment) in insurance industry. The Cabinet approved amendments to the Insurance Bill. Following the news insurance companies stocks surged on BSE. Kshitij Jain, MD & CEO, Exide Life Insurance, said, “It is a very good news that the Cabinet has approved to ease the FDI cap to 49% cap on Insurance. The industry over the last 12 years has attracted over Rs 34,000 crore of capital across all the private life insurance companies and over the next five to 10 years. The industry requires as much if not more in terms of fresh capital to be able to fund its growth and its expansion.”... Read more
New norms for management control for insurance in FDI
The government will issue new guidelines for management control and voting rights that have raised concerns among shareholders of insurance companies, according to a media report. The government will release fresh rules on the voting rights and management control to clear any confusion in the insurance sector, the report added. "The composite cap in the insurance sector is proposed to be increased up to 49 percent from the current level of 26 percent with full Indian management and control through the FIPB route," union Finance Minister Arun Jaitley had said while presenting his maiden budget.
Kotak Life Insurance launches Assured Income Accelerator
Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life Insurance) announced the launch of Kotak Assured Income Accelerator, a pioneering plan that factors in the ever increasing cost of living by paying an increasing annual guaranteed income during the payout phase. Annual payout of the guaranteed income commences after the premium payment term is over. At maturity, Guaranteed Maturity Benefit is also payable along with the last installment of the increasing guaranteed income. The product also offers the convenience of three different payment and payout terms to suit needs of different customers... Read more
Future Generali India Life launches Care Plus Plan
Future Generali India Life Insurance Company Ltd (FGILI), a joint venture between Future Group - the leading retailer of India, Generali Group - a global insurance group and one of the world’s 50 largest companies and IITL - a leading NBFC, announces the launch of Care Plus Plan which is a pure Term Insurance Plan. The Insurance industry in India has undergone significant transformational changes over the last decade; however, majority of the population still remains uninsured. The need for life insurance stems from the need to provide financial security to the family, through a robust value proposition and offer high quality, simple and convenient products and services... Read more
Life Healthcare to invest Rs. 764cr in Max Healthcare
Life Healthcare (LHC), a $2bn South African healthcare major, is set to invest up to an additional Rs. 794 Cr in Max Healthcare (MHC), a private healthcare provider. LHC will pay Rs. 67.50 per share to equalize its stake with Max India in MHC, in an all cash transaction which puts the enterprise value of MHC at Rs 3,650/- Cr and its Equity value at Rs. 2,884 Cr. In January 2012, Life Healthcare had invested Rs 50.24 per share, translating to Rs 516.5 Cr, to acquire a 26% stake in Max Healthcare. The current transaction will lead to equalization of stake of both joint venture partners as envisaged in their original JV agreement. Post transaction, both JV partners will have equal representation on the MHC Board. The brand name of Max Healthcare will remain unchanged... Read more
Cigna TTK Health Insurance, Jabong.com associating marathon
Cigna TTK Health Insurance and Jabong.com are associating with the marathon as the Health Insurance and Online Retail partners respectively. Cigna TTK has established a distinct position in the health insurance industry as a company that takes care of its customers not just when they are ill but also encourages them to stay healthy. The registration for the Standard Chartered Mumbai Marathon 2015.
Gaurav Rajput, Chief Marketing Officer, Cigna TTK Health Insurance commented that – “We are delighted to be associated with Standard Chartered Mumbai Marathon 2015 as the Official Health Insurance partner.”... Read more
Critical illness cover: Do you need it?
The Indian entrepreneurial ecosystem has been flourishing over the last decade with a steady increase in the inflow of venture capital into new business models. The lure of being an entrepreneur leads many young individuals towards an independent journey. Being one’s own master becomes more attractive than the security provided by the monthly pay cheque, especially for the younger crowd... Read more