Insurance Newsletter – March 24 to 28, 2014

India Infoline News Service | Mumbai |

The Insurance Regulatory and Development Authority of India (IRDA) has started a study on subsidisation of premium for group insurance policies

Top Stories

IRDA hikes third-party motor premium
The Insurance Regulatory and Development Authority (IRDA) has hiked the premium for third-party motor insurance from April 1, 2014. The IRDA on Tuesday released the order titled premium rates for motor third party liability insurance covers for the year 2014-15. The IRDA has increased motor third-party premium in the range of 9% to 20%. For passenger cars below 1,000 cc, it has hiked the third-party (TP) premium from Rs 941 to Rs 1,129. For passenger cars with engine capacity between 1,000-1,500 cc, the TP premium will go up from Rs 1,110 to Rs 1,332. For engine capacity above 1,500 cc, the premium will go up from Rs 3,424 to Rs 4,109... Read more

IRDA to check if insurers treat policyholders equally
The Insurance Regulatory and Development Authority of India (IRDA) has started a study on subsidisation of premium for group insurance policies. The regulator has received several complaints of unjust discounts given to group policies and it wants insurance companies to stop this practice. TS Vijayan, Chairman, IRDA, said that people in group insurance pay a far lower premium at the cost of individuals who would end up paying more. Speaking to the media on the sidelines of the launch of a new diabetes health insurance plan by Star Health and Allied Insurance Company on Thursday, Vijayan said, “IRDA will study all aspects of the issue and will come out with its findings. The regulator will ask General Insurance Council, the apex body of non-life insurer, to provide it with the data on this to understand whether insurers treat all their policyholders equally.
 
IRDA allows advance premium collection
In order to allow advance premium collection, Insurance Regulatory and Development Authority (IRDA) has revised its linked and non-linked insurance products regulations. “Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year,” IRDA said to the CEOs of life insurance companies in a circular on Monday. According to the regulator, if the advance premium is collected for the next financial year, then insurers can collect the same “for a maximum period of three months in advance of the due date of the premium”. The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date.

Leader Speak

We are looking to add about 1 lakh customers annually: Aegon Religare Life
Insurance is just another financial instrument amongst many others. Do not evaluate insurance as an ‘either-or’ option but as an important component of your financial portfolio. If nothing else be adequately protected, Yateesh Srivastava, COO, Aegon Religare Life, says... Read more

Domestic News

Insurers report 22% drop in annualised premium equivalent
Life Insurance Corporation of India's annualised premium equivalent decreased 13% on year-on-year basis, while private insurers reported a decline of 22% from a year ago, data collated by big insurers indicated. The annualised premium equivalent is estimated by taking individual regular premium plus 10% of new single premium. For the industry, the annualised premium equivalent fell 17% from a year ago to Rs. 3,254 crore. Total new business income, including individual and group, stood at Rs 7,780 crore in February 2014, down 2.45% from the year-ago month, the data added. In the April-December period, the industry had reported a 22% rise in income from selling new policies, and LIC a 31% increase.

IRDA to raise fund for common services centre
The Insurance Regulatory and Development Authority (IRDA) said that it has asked insurance companies to pay Rs 20 lakh each to the Common Services Centre (CSC) e-Governance Services India Ltd. e-Governance Services is a special purpose vehicle (SPV), which has been set up to offer services through the CSC. The insurers can market certain categories of retail insurance polices and services through the CSC-SPV and its common service centers, the IRDA said in a notification on Monday... Read more

Star Health launches new diabetes policy
Star Health and Allied Insurance Co Ltd., on Thursday, rolled out a more expansive diabetes insurance policy, called Star Diabetes Safe. The policy would cover a diabetic person’s regular hospitalisation expenses, irrespective of the number of years the person may have been living with disease. The pre-insurance medical test is only optional. The policy covers all the complications of Type I and Type II diabetes—including heart-related problems. Though the entry age for the policy is 18 to 65 years, renewal is allowed life-long. The sum insured options range from Rs. 3 lakh to Rs. 10 lakh.

Star Health plans low-premium cover for poor
Star Health has now crossed a landmark figure of Rs. 1000 crore in retail Health Insurance business. The insurer is working on a low premium cover for economically weaker sections of the society. At present, there are only a few government-backed insurance covers for this section of people. At present, the company provides cashless hospitalization across 6000+ network hospitals serving nearly 14 lakh policy holders. Star Health have issued close to 14 lakh policies covering over 41 lakh persons as on February 2014... Read more

Dena Bank makes preferential issue to LIC & GIC
Dena Bank has made a preferential issue of 5.32 crore equity shares to Life Insurance Corporation of India for Rs 282 crore; and 1.58 crore shares to the General Insurance Corporation for Rs 84 crore. The Bank approached LIC and GIC for capital infusion to meet the credit requirement of the economy as well as to maintain regulatory capital adequacy ratios and both the institutions have given their 'ln-principle' approval to infuse capital funds of Rs. 335 crore and Rs. 100 crore respectively, in the Bank by way subscription of equity shares on preferential basis, Dena Bank said in a filing on the Bombay Stock Exchange... Read more

Max Life Insurance launches Shiksha Plus Super
Max Life Insurance launched Shiksha Plus Super, a unit linked child plan. Max Life Shiksha Plus Super is a 360-degree child plan that provides resources for the overall development of your child even in absence of resource provider. With the launch of this product, the company also completes its product suite for all life stage based needs. Rajesh Sud, CEO & Managing Director, Max Life Insurance said, “The launch of Shiksha Plus Super completes our suite of products required for all life stage needs that are compliant with the new guidelines effective January 1, 2014... Read more

Cigna TTK Health Insurance launches ProHealth
Cigna TTK Health Insurance a joint venture between U.S. based global health service leader, Cigna Corporation and Indian conglomerate TTK Group, announced the launch of a health insurance product “ProHealth” with an add-on Critical Illness option. Announcing the launch, Mr. Sandeep Patel, CEO and Managing Director, CignaTTK Health Insurance Company Limited said “We strongly believe that different consumers have different requirements, hence we have developed ProHealth to be flexible to consumer’s unique needs. The product has four variants and multiple customization options to cater to all consumer segments. Also at Cigna TTK our focus is on Health & Wellness, hence we have introduced unique benefits such as healthy rewards and health maintenance benefits to encourage consumers to stay healthy. In addition our Healthy life service solution ProLife, provides consumers with online programs to live a healthier lifestyle.”... Read more


E-health records to be of immense use to insurers: Govt
The Government on Friday said that it has decided to introduce a uniform system for maintenance of electronic health records (EHR) by hospitals and health care providers in India. The government has taken initiatives to implement standard protocols, standard codes for treatments, diagnosis, diseases and to maintain health records through various methods including electronic models. EHR is considered to be secure, real-time point of care, patient centric information resource for medical professionals, according to a circular published on IRDA (Insurance Regulatory and Development Authority) website... Read more

IL&FS Financial to close infra debt fund by Sept
IL&FS Financial Services is likely to close its infrastructure debt fund by September, according to a media report. IL&FS Infra Asset Management, which manages the infrastructure debt fund, expects to close $1 billion of its targeted $5 billion infrastructure debt fund by September, the report added. Till date, the company has raised Rs 750 crore and expects to raise additional Rs 750 crore by March 31. The company has pooled in funding from public sector insurers, including General Insurance Corporation of India, Oriental Insurance and United India Insurance, which will together pick 2% stake each in the company... Read more

International News

MH370: Almost all Malaysians had life insurance
The Life Insurance Association of Malaysia (LIAM) has said that 47 of the 50 Malaysians on board the ill-fated Flight MH 370 had insurance policies. The figure comprised 38 passengers and 12 crew members and their life insurance policies were with 14 companies in Malaysia. Meanwhile, in a separate statement, AIA Bhd said it would get in touch with the families of its policyholders on the flight. "We assure the families that we will get in touch with them to expedite the processing of the life insurance claims within the next 24 hours.”... Read more

Learning

Get the most out of your Car Insurance
Comprehensive motor insurance policy without Add-on covers, in reality is not comprehensive in its true sense. If motor insurance policy holder has to pay from his wallet (partly or fully) for replacing rubber or metal parts in case the car met with an accident, then the entire purpose of insurance gets defeated. One can overcome this if motor insurance is bought with some very useful add on covers like Engine protection, Road side assistance, Protection for no claim bonus, Nil depreciation, Return to invoice and Personal belongings. Furthermore, spare parts in high-end cars are very expensive. It is recommended that cars valued upwards of Rs. 8-Rs. 10 lakh should have Add-on covers as part of the motor comprehensive policy. This reduces the financial impact on the car owner in the event of a claim... Read more  
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.