Insurance Newsletter - July 14 to 18, 2014

India Infoline News Service | Mumbai |

Max Life Insurance also achieved average claims settlement turnaround time of 6 days against 30 days permissible as per the regulations

Max Life achieves 0.04% in outstanding claims ratio in FY14
Max Life Insurance announced a milestone achievement of 0.04% outstanding claims ratio in the FY2013-14. In absolute numbers, this means that as on March 31, 2014, Max Life Insurance was left with just 4 outstanding claims. Max Life Insurance also achieved average claims settlement turnaround time of 6 days against 30 days permissible as per the regulations. The Company is trending well on its promises of claims guarantee to its policyholders. For FY ’14, Max Life has paid 99.95% of all death claims within 10 days of receipt of relevant documents/ information. Fund value has been paid within 48 hours in 99.83% of claims on Unit Linked policies. Additionally,100% of death claims received on policies more than 3 year old have been paid... Read more

Tata AIA Life Insurance announces Bonus for Policyholders
Tata AIA Life Insurance Company Limited has announced bonus for its policyholders on all eligible products for the financial year 2014-15. Bonus will be given to the policyholders completing 10th, 11th, 12th, and 13th year. The rate of bonus will vary as per the plan and years of policy term completion. Compounded Revisionary bonus, which is computed on the sum assured and all accumulated bonuses, ranges between 3.75% to 5%. Simple Revisionary bonus ranges between 2.75% to 10% and, cash dividend is 17.9% & 34.7% per Rs. 1000 sum assured on the company’s most popular plans Tata AIA Life MahaLife & Tata AIA Life MahaLife Gold respectively. The Company has also announced Terminal bonus as a percentage to Reversionary bonus, ranging between 3% to 70%. The Terminal bonus is will be give on applicable products covering policy term completion from 10 to 13 years... Read more

IDBI Federal launches 8-day claim settlement guarantee
In the business of insurance, the timely claims settlement is a vital service function that needs no special emphasis. The claims settlement record of an insurer is an important yardstick of its performance and plays a pivotal role in the decision making process of the customers. In line with its customer centric approach, IDBI Federal promises death claim settlement in 8 working days-under the initiative ‘8 Days Claim Settlement Guarantee’.  The initiative will be effective from July 08 onwards and will only be applicable for claims filed after this date. The Company has announced that it will settle death claims in just 8 working days. In case it fails to do so, the Company will pay an interest of 8% per annum, calculated on a daily basis, on the death benefit for each day of delay beyond 8 working days. The nominees can also track their claims status through the Company website, www.idbifederal.com, by simply entering the policy number and date of birth of the life insured... Read more

Karnataka Vikas Grameena, IndiaFirst Life offer insurance benefits to masses
Karnataka Vikas Grameena Bank (KVGB) owned by Government-Sponsored by Syndicate Bank, in Karnataka offers insurance through one of the youngest and fastest growing life insurers in the country, IndiaFirst Life Insurance.
The announcement was made by Ashok Reddy Nukala, Chairman, Karnataka Vikas Grameena Bank and Kamalakar Sai, Director Sales, IndiaFirst Life. Karnataka Vikas Grameena Bank will offer all its Recurring Deposit customers simple and hassle free insurance under the IndiaFirst group term plan. The bank plans to cover 10000 lives in FY 2014-15.

“I am sure this will help us offer our rural customers a complete basket of financial products. IndiaFirst has been very active in providing insurance cover to the rural populace. We are certain that this will contribute in the overall business growth of the bank in the long term,” said Mr. Ashok Reddy Nukala... Read more

Proposal to increase FDI in insurance is welcomed: Aviva Life
The Finance Minister in his budget 2014-15 has recognized the contribution that a growing insurance sector can make to the economy, particularly for long term investments in infrastructure. He has alluded to a multi pronged approach for encouraging insurance sector, rightly pointing out, "Benefits of insurance in India have not reached a large section of the people and insurance penetration and density are very low. The Government would work towards addressing this situation in multi-pronged manner with the support of all stake holders concerned.” TR Ramachandran, CEO & MD, Aviva Life Insurance, said, We welcome the announcement of proposed increase in FDI cap in the Insurance sector from 26% to 49%. The inclusion of this aspect among the initial opening paras of FM speech indicates the strong intent of the government to pass the Insurance amendment bill which is welcome... Read more

ICRA budget reaction: Comments on Insurance Sector
Karthik Srinivasan, Sr. VP, Co-head, Financial sector ratings, ICRA Ltd, said, “On expected lines, the composite cap on FDI in insurance has been increased from 26% to 49% through the FIPB route. The hike in FDI will help the players to raise capital as well as attract more foreign players to enter the Indian insurance market which remains an underpenetrated market.”

The penetration reduced to 3.2% in 2012 for Life segment from 4.6% in 2009 and remains even lower at 0.8% for non-life segments in 2012. The Insurance Bill, which has been pending from 2008, if passed during the current year could bring in more reforms and aid in increasing the performance and penetration levels. While the General Insurance sector would require capital of Rs 75-175 billion over the next five year with higher requirement from the private sector, the Life Insurance companies are well capitalised as on date on the back of improved profitability and moderation in growth and accordingly would require capital only as the growth picks up.

Learning

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. However, a lot of planning is required before venturing out on your own, not just from the business perspective but also on the personal front. This decision has a bearing on both you and your family. Your family’s goals, such as your children’s education and their marriage, should not become captive to how your business fares. Being your own boss comes with a host of uncertainties like unregulated earnings, lack of proper savings and absence of a corporate health insurance... Read more
 

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