Insurance Newsletter – September 02 to 06, 2013

The IRDA on Friday refuted the World Bank-IMF (International Monetary Fund) report on Indian insurance sector

September 06, 2013 7:24 IST | India Infoline News Service
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IRDA refutes World Bank-IMF report on Indian insurance

The Insurance Regulatory and Development Authority (IRDA) on Friday refuted the World Bank-IMF (International Monetary Fund) report on Indian insurance sector.

IRDA chairman TS Vijayan said that it has dismissed an observation made in a World Bank-IMF study that the insurance regulator was not adequately independent.

“IRDA would like to assert that there is complete autonomy with regard to supervision and regulation of insurance sector in general and insurance companies and intermediaries in particular,” IRDA chief TS Vijayan said in a statement.

The enforcement powers are being strengthened in the proposed Insurance Laws (Amendment) Bill, Vijayan added.

LIC may have to wait more to invest 30% in equity: Reports

According to insurance experts, IRDA (Insurance Regulatory and Development Authority) may take time to allow Life Insurance Corporation of India (LIC) to invest 30% in equity segment, as quoted in a media report. Thus, the state-run insurer may have to wait more before IRDA permits it to invest up to 30% in equity market, the report added... Read more

There is complete regulatory oversight on LIC: IRDA

Insurers should have their own distinct trade logo: IRDA

The Insurance Regulatory and Development Authority (IRDA) has advised insurance companies to use distinct trade logos of their own. The insurance regulator in its exposure draft on “Usage of Trade Logo by Insurance Companies,” has pointed on the reputational risks associated with insurers’ using the trade logo of their business partners or promoters.

“Keeping in view the risks associated with trade logo and the long-term interests of policyholders, all insurers shall consider developing a distinct trade logo of their own so as to minimise not only possible confusion in the minds of insuring public, but also the costs, be it the consideration amount or the compensation, associated with the trade logo of the promoting partners,” IRDA chairman TS Vijayan said... Read more

Insurers to develop exclusive products for CSCs: IRDA

The Insurance Regulatory and Development Authority (IRDA) asked insurance companies to develop products to be sold exclusively through common service centres (CSCs) and file these products with the regulator for approval.

According to IRDA guidelines on the CSC model, these products shouldn’t have a sum assured exceeding Rs 2 lakh (except motor insurance), per life or risk.
CSCs are the front-end delivery points for government, private and social services to citizens... Read more

New Appointments

SBI Life elevates C Mehra as country head-emerging business
SBI Life Insurance has elevated Chandramohan Mehra as country head – emerging business. In his new role, Mehra will lead online sales, cross sell and international operations of SBI Life, private life insurer said in a press release... Read more

Domestic News

5 insurance repositories get license from IRDA

The Insurance Regulatory and Development Authority (IRDA) has given the status of insurance repositories to five companies.

The five companies include NSDL Database Management Ltd, Central Insurance Repository Ltd, CAMS Repository Services Ltd, SHCIL Projects Ltd and Karvy Insurance Repository Ltd... Read more

EPFO plans universal number for members from this fiscal

Employees' Provident Fund Organisation is ready to launch a system of monthly updating account on September 6, according to a media report.

According to EPFO, the objective is to make the EPFO online system customer friendly.

The retirement body will also set up core banking solution for 40 lakh pension accounts which will enable pensioners get payment on the first day of every month, the report added... Read more

There's a long way before we have strong pension segment: IndiaFirst Life

The Lok Sabha on Wednesday has passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill 2011, an important economic legislation that will attract foreign investment in the sector.

The Bill allows 26% foreign investment in the pension sector. Pension as a whole is a genuine requirement in a country like India. While its young population is a positive factor, in the long term the absence of a stable pension segment can be a major deterrent to an already strained economy. This is why it a strong and viable pension segment—especially for individuals to opt for, is critical for the economy. Hence this move in the right direction, Dr. P. Nandagopal, MD & CEO, IndiaFirst Life Insurance, said.

However, there is still a long way before we can rest with a strong pension segment, he added.


Get top up plan to enhance your health insurance

Mediclaim policies are useful for minor cases of hospitalisation or surgery. However, they may be insufficient to meet the high costs involved in treatment of ailments like a heart condition, a stroke or an organ transplant. This is where top up plans come into the picture... Read more

New Launches

LIC launches new group superannuation scheme
State-run Life Insurance Corporation of India (LIC) on Saturday has launched its new group superannuation plan, called New Group Superannuation Cash Accumulation Plan (NGSCA).
It is an employer-employee group scheme which is useful for employers having defined contribution and defined benefit superannuation scheme for their employees... Read more

International News

Asia-Pacific Insurer remain firm despite shifting economic conditions: S&P
Although economic conditions in Asia-Pacific are shifting, insurer credit profiles in the region remain firm, said Standard & Poor's Ratings Services in a report published.

The report, titled "Asia-Pacific Insurers Are On Firm Footing As Economic Conditions Shift," noted that Standard & Poor's expects most of its ratings on insurers in the region to be stable for the next 12 to 18 months... Read more

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