Insurance queries: Keep lifecycle needs in mind

While taking an insurance product, what should I look at and is it better to purchase a term policy instead of an endowment policy?

-G K Srinivasan

Insurance is purchased to secure yourself and family against unforeseen eventualities such as death, permanent disability, financial emergency or loss of income and planned events with high financial implication such as child’s education, marriage etc. Choice of a product should be based on an individual’s lifecycle needs, financial capacity and risk appetite. A pure term plan does not have a savings component hence you can buy higher cover at relatively lower rates. Ulips focus more around generating higher investment returns and are opted by more aware investors who are willing to take calculated risks. Traditional plans on the other hand are feature-based products that normally have a larger insurance component than Ulips. They provide higher death benefits, even growth of investments over the policy term...

Rs 50 lakh fine imposed on 6 insurers, including Reliance, HDFC

Rs 50 lakh fine imposed on 6 insurers, including Reliance, ह्द्फ्क

New Delhi: Insurance regulator IRDA imposed Rs 50 lakh fine on 6 insurance companies, including private sector players Reliance General and Apollo Munich Health in 2009-10 for failing to comply with various norms, including rural and social obligations.

Fines were also imposed on Life Insurance Corporation, General Insurance Corporation, HDFC Standard Life and HDFC Ergo General, said the annual report of Insurance Regulatory and Development Authority (IRDA).

The maximum penalty of Rs 20 lakh was levied on Reliance General for violation of IRDA's regulations and guidelines, while the sectoral watchdog imposed fine of Rs 10 lakh on Apollo Munich Health for non compliance to rural and social sector obligations during 2008-09

The country's largest insurer LIC was fined Rs 5 lakh in January this year as it failed to comply with obligations towards rural sector in 2008-09, the report said.

IRDA imposed Rs 5 lakh penalty on re-insurer GIC for failure to comply with the investment.regulations during 2009-10. Penalty of Rs 5 lakh each was levied on HDFC Standard Life and HDFC Ergo for failure to comply with rural sector obligations in 2008-09 and 2007-08 respectively,

Now, a Ulip that de-risks stock mkt?

New Delhi: Private insurance firm ING Life today launched a unit linked product called Market Shield that provides guaranteed net asset value (NAV) to customers.

The Unit Linked Insurance Plan comes with unique benefits of maximising returns and adequate protection, ING Life Chief Marketing & Strategy Officer Uco Vegter said after unveiling the product here.

"It is designed such that our customers can benefit from market's upwings due to high equity participation, but secures their investment from losses, when the markets are volatile," he said.

The plan provides customers a guaranteed NAV throughout the term of the product and not just at maturity unlike most available products, he said.

The product, focused at mass affluent customers, would invest in both equity and debt and would be managed on daily basis through dynamic asset allocation technique, he said.

The product also ensures guaranteed NAV or current NAV applicable for all benefits like partial withdrawal, death benefit and surrender...benefit, he said. For a premium paying term of five years the minimum premium payable is Rs 48,000 and for premium paying term of 10 years, the minimum premium payable in Rs 36,000 per annum. The life cover would vary between 10 to 20 times depending.,

ING Life launches ING Market Shield

ING Life launches ING Market शिएल्ड

New Delhi: ING Life India, in its 10th year of operations, launched a new unique Unit Linked Insurance Product, which provide the customer the opportunity to participate in the equity market while protecting investments from its downside.

The new ULIP, ING Market Shield comes with unique benefits, allowing customers to maximize their returns and have adequate protection.

Speaking at the launch Uco Vegter, Chief Marketing & Strategy Officer, ING Life India said, “ING Market Shield is a one of its kind unit linked insurance product. It is designed such that our customers can benefit from market’s upswings due to high equity participation, but secures their investment from losses, when the markets are volatile. The plan provides the customer a Guaranteed NAV throughout the term of the product and not just at maturity unlike most available products”

This process ensures maximum exposure to the stock market, while minimizing the downside risk....Unlike most Highest NAV products available in the market right now, this plan assures the Guaranteed NAV at all times through the term of the policy including Death,

Insurers’ investment portfolios up 30% in ’09-10 at over Rs 12 lakh cr

Mumbai: The accumulated investments of the insurance sector in various segments of economy increased by 30.38% to Rs 12,71,527 crore on March 31, 2010 against Rs 9,75,258 crore on March 31, 2009.

Life insurers contributed 95% of total investments (93.96% in 2008-09), according to the insurance regulator’s annual report for 2009-10. The contribution of public sector companies stood at 82% of the total investments held by the sector, although with the stabilisation of the operations of the private sector insurers, their portfolio of investments has been growing at a fast pace in recent years. The various sources of funds available for investment by life insurers can be broadly classified as funds from traditional products and Ulip products.

The total funds invested by life insurers as on March 31, 2010 was Rs 12,05,155 crore (Rs 9,16,365 crore in 2008-09), of these Rs 3,31,619 crore (27.52 %of total funds) represented Ulip funds and the.remaining Rs 8,73,536 crore (72.48 %) is the contribution by traditional products.

The share of Ulip funds in total investments has continued to grow in recent years reflecting the public preference for these products.

During the reporting year, Ulip funds contributed 55% of the incremental investments (26.39 % in 2008-09). While Ulip funds contributed Rs 1,58,856 crore (Rs 39,686 crore in 2008-09) of the incremental investments, the contribution by the traditional products was Rs 1,29,934 crore (‘Rs ,10,710 crore in 2008-09).The central government securities and approved investments are two major avenues for parking of funds by the life insurers.

Based on a further segregation of funds under the traditional products and Ulips, Life Fund contributed Rs 7,32,613 crore (60.79 %), Pension and General Annuity & Group Fund contributed Rs 1,40,923 crore (11.69 %) and Ulip fund share was Rs 3,31,619 crore. During 2009-10, the share of Ulip in total investment has.gone up from 18.85% in 2008-09 to 27.52%. Non-Life insurers contributed 5% of total investments made by the insurance industry. The total amount of investments made by the sector as on March 31, 2010 was Rs 66,372 crore.

IRDA sets up committee on third party motor cover

IRDA sets up committee on third party motor कवर

New Delhi: Insurance regulator IRDA today set up a committee to look into issues related to third party insurance cover for motor vehicles.

The IRDA constituted a committee under chairmanship of M Ramaprasad Member (non-life) and 12 other members, including representatives from non-life insurance industry.

A third party insurance is a policy under which the insurance company provides cover for motor vehicles for injuries or damage done to a third party.

"Offering motor third party liability cover to commercial vehicles has been a challenge for non-life insurers in view of the tariff controls prevailing and non-availability of credible data and statutory provisions," Insurance Regulatory and Development Authority (IRDA) said in an order.

It further said that since 2006, many issues relating to the adequacy of the premium charged for the cover and various alternatives to address the issue were brought to the notice of the insurance regulator.

The terms of reference of the committee are to review.the current arrangement and examines the possibility and modalities to be adopted for creating declined pool of commercial vehicles to ensure the availability of third party liability cover to all commercial vehicles.

Besides, to examine the possibility to provide third party liability cover to the driver, in addition to the vehicle.

Also, the methodology of pricing to provide the necessary adequacy and reasonableness of third party insurance cover. The time frame for submission of the recommendations by the committee is three months,

Cost cuts put pvt insurers in a spot

Cost cuts put pvt insurers in a स्पोट

Mumbai: The insurance regulator’s recent directive to cap expenses on unit-linked insurance policies and private insurers’ consequent bid to trim costs by shutting some of their smaller branches seem to have had a collateral impact: Though the policyholders’ investments are safe and the company strong, many customers start worrying when a branch downs shutters.

“Some insurers are facing this crisis now. Though nothing is wrong with the company, branch closures create a wrong impression. People feel private life insurers are fly-by-night operators. What is being faced by a few companies will be faced by others too,’’ said the CEO of a leading private insurer.

Private life insurers are cutting costs as they implement the stringent Ulip norms. Sources say many insurers including ICICI Pru Life, HDFC Life and Max New York Life are adjusting to the low-margin Ulip regime by closing branches. Private life insurers have shut almost 400 branches since...September 10.

However, Irda chairman J Hari Narayan said there was no fear among the policyholders as their investments were quite safe. “If any branch closure was happening in the industry, then it was due to the fact that the life insurers’ administrative expenses can’t exceed their certain specified limits as per the Insurance Regulation Act. We don’t force life insurers to cut their costs for the initial five years. But, by sixth year onwards, we do strictly enforce the rule on them,’’ he clarified.

SB Mathur, secretary general, Life Insurance Council explained that when insurers were worried about their bottomline and topline, they couldn’t leave their policyholders in the lurch. “There is no fear psychosis. There was a 40% growth in the first-year premium in October. If the net reduction in terms of number of branches has happened by 60, it doesn’t make any difference as it doesn’t even.

SBI Life becomes largest pvt insurer

New Delhi: SBI Life has overtaken ICICI Prudential to become the country's largest private insurer in terms of first year premium collection, garnering a new business of Rs 4,698 crore in April-December this fiscal.

ICICI Prudential collected the first year premium of Rs 4,651 crore in nine months to December, according to the data released by Insurance Regulatory and Development Authority.

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74 per cent of the total capital in the JV and BNP Paribas Assurance holds the remaining 26 per cent.

In percentage terms, new business of ICICI Prudential, a 74:26 joint venture between ICICI Bank and UK-based Prudential Plc, increased by almost 21 per cent compared to the same period last year. While SBI Life's growth was 7 per cent during the April-December period.

Third Party Motor Insurance Is Extremely Unprofitable For General Insurers’

MD and CEO of IFFCO TOKIO General Insurance, S Narayanan feels that unless the premium rates in general insurance space are consistent with claims cost plus expenses the profitability will be elusive. In conversation with Ritu Kant Ojha of The Indian Express, Narayanan says that because of the extreme unprofitable nature due to inadequate premium levels, most companies are critical of Third Party insurance especially in case of commercial vehicles. “This is one area where premium rates are controlled by the regulations. This should be made free and companies should be able to charge their own premium rates after filing with IRDA” he says. Excerpts:

With the competition increasing in the General Insurance space are we going to see lower premiums and better services?

Premium in most classes of insurance has reached a plateau and there is every likelihood of rates firming up. In terms of products, we are likely to.

In 2010, insurers made clients kings

In 2010, insurers made clients किंग्स

New Delhi: The insurance industry will remember 2010 as an eventful year in which insurance regulator Irda came out on top in a turf war with market watchdog Sebi over the regulation of Unit-Linked Insurance Products, with the end result of such schemes becoming investor-friendly.

Sweeping regulatory changes with regard to ULIPs have already set the tone for the New Year.

"2011 will be a year of transition and adaptation for the life insurance industry. After having witnessed the changes in the financial market, consumer sentiments and regulatory changes, going ahead life insurance will need to focus on and be sold as a long-term contractual savings and protection tool," Max New York Life Insurance Managing Director Rajesh Sud said.

In April, 2010, a spat between the Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA) over regulation of ULIPs – which are hybrid insurance products in which a portion of..the investor's premium is invested in equity -- led to the metamorphosis of such products.

To end the acrimony between the two regulators, the government issued an ULIP Ordinance on June 18 as capital markets regulator SEBI and insurance watchdog IRDA could not resolve their dispute over which of them was empowered to regulate such products.

Thereafter, the Securities and Insurance Laws (Amendment) and Validation Bill, 2010, was passed by Parliament to address the issues of jurisdiction between the financial sector watchdogs.

The Bill enabled the establishment of a joint body under the chairmanship of the Finance Minister and with representation from the four financial sector regulators and the Finance Ministry. As per the Bill, the Reserve Bank Governor would be vice-chairman of the joint committee.

After the promulgation of the Ordinance, IRDA tightened the norms for these schemes by increasing the lock-in period and raising the risk cover to make a significant distinction..

DTC set to change tax burden on insurance

DTC set to change tax burden on इन्सुरांस

Each one of us has different rationale or purpose for availing insurance. The reasons could vary from securing ones retirement, meeting children’s education or marriage expenses or to secure one’s life. Therefore, when the proposed Direct Tax Code (DTC) becomes effective from April 1, 2012, one should assess the impact of insurance plans and take informed decisions while continuing with existing investments and for future plans.

Under DTC, the amount received under a life insurance policy would be taxed on maturity as normal income, if the premium payable in any year, during the policy term exceeds 5% of the sum assured. As per the current taxation laws, receipts from a life insurance policy are exempt from tax provided the premium payable for any of the years does not exceed 20% of the sum assured.

In case of policies which are not exempt, the amount of premium paid .

Mediclaim premiums may rise in 2011

Mediclaim premiums may rise in २०११

New Delhi: The insurance industry will remember 2010 as an eventful year in which insurance regulator Irda came out on top in a turf war with market watchdog Sebi over the regulation of Unit-Linked Insurance Products (Ulips), with the end result of such schemes becoming investor-friendly. Sweeping regulatory changes with regard to Ulips have already set the tone for the New Year.

“2011 will be a year of transition and adaptation for the life insurance industry. After having witnessed the changes in the financial market, consumer sentiments and regulatory changes, going ahead life insurance will need to focus on and be sold as a long-term contractual savings and protection tool,” Max New York Life Insurance managing director Rajesh Sud said.

As far as general insurance is concerned, mediclaim policy premiums witnessed an increase as insurers tried to cut down their losses due to excessive claims.

What is more, four public sector general insurance firms—Oriental Insurance,.

Thereafter, the Securities and Insurance Laws (Amendment) and Validation Bill, 2010, was passed by Parliament to address the issues of jurisdiction between the financial sector watchdogs. After the promulgation of the Ordinance, Irda tightened the norms for these schemes by increasing the lock-in period and raising the risk cover to make a significant distinction between Ulips and mutual fund products.

At the same time, dealer commission rates were reduced and disclosure norms tightened to ensure greater transparency of Ulip schemes.

Echoing a similar view, Bharti AXA Life chief marketing and operations officer (CMOO) Mark Meehan said, “It’s short-term pain, but long-term gain for the insurers.” The industry has been quick to adjust to the changed landscape and improve operational processes and the quality of their distribution chain, said Aviva India managing director T R Ramachandran.

Rel Life got max policy sales among pvt insurers in Apr-Nov

New Delhi: Anil Dhirubhai Ambani Group company Reliance Life Insurance has emerged as the leading private sector insurer in the country in terms of the number of policies it sold in the first eight months of the current financial year.

Reliance Life Insurance sold 13,12,389 policies between April and November, 2010, as against 12,61,668 in the corresponding period last year, according to IRDA data.

"Our wide-ranging products, catering to every section of the society, and pan-India presence with quality service helped us notch up this business milestone," Reliance Life Insurance Executive Director and President Malay Ghosh said.

Reliance Life was followed by Bajaj Allianz and ICICI Prudential, which sold 9,49,183 and 8,26,904 policies, respectively, between April and November this year.

Nevertheless, the country's largest insurer, Life Insurance Corporation, continued to lead the pack when it came to policy sales, notching up 1,93,54,765 new customers in the first eight months of the ongoing fiscal, down 1 per.

PNB seeks JV partner in insurance sector

PNB seeks JV partner in insurance सेक्टर

New Delhi: Punjab National Bank said its plans to foray into insurance business are alive and is looking for a joint venture partner.

"PNB has decided to have a fresh comprehensive re-look at its strategy for insurance business in India with a view to provide full range of financial products to its Indian customers and to realise full value of Bank's reach and customer base," the bank said in a statement here.

The bank said it is looking for opportunities in both life and non-life business.

It invited expression of interest (EoI) for strategic partnership in life insurance and non-life insurance business from Indian and international companies.

"The bank will evaluate these opportunities and may form strategic tie-ups with interested parties," PNB said.

It said it is open to any operating model ' whether existing in the industry or new ' for such strategic partnerships.

"The bank is looking for opportunities both in short-term and long-term. In this.

HDFC Life launches ProGrowth Flexi

Mumbai: Private insurer HDFC Life today launched ProGrowth Flexi, a Unit Linked Insurance Plan with minimum monthly premium of Rs 2,500.

“In line with our customer centric approach, for the first time in the industry, HDFC Life offers 30 day free look-in. As ULIPs are the under the new regulatory regime are different, we believe that the customers may need time to get familiar with the new generation of ULIPs and fully comprehend the benefits available under the policy,” HDFC Life Managing Director and CEO Amitabh Chaudhry said in a statement here.

The product also has flexible premium payment options, five investment funds, and the flexibility to change premium paying term.

This ULIP product is targeted at those who are seeking a life insurance plan that is affordable and flexible and at the same time provides value, he added.

HDFC Life is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life,.

Edelweiss Tokio Life Insurance gets approval from IRDA

Mumbai: Edelweiss Tokio Life Insurance Company, a joint venture between Edelweiss Capital and Tokio Marine, said it has received the initial R1 approval from the Insurance Regulatory & Development Authority (Irda).

R1 is the first step of regulatory clearances required for carrying on the business as a life insurance company in India.

"Life insurance premiums are likely to increase from the present level of Rs 2 lakh crore to about Rs 10 lakh crore in the next decade. We are excited by this opportunity and are confident of bringing a differentiated offering leveraging product development capabilities, understanding of Indian consumer needs and our partners' global experience," Edelweiss Tokio Life Insurance Director Deepak Mittal said in a statement.

Tokio Marine is one of the world's largest insurance groups headquartered in Japan. With over 130 years of experience in the insurance sector it has expanded its reach across geographies in life and non-life insurance sectors.

SBI Life launches Ulip plan Smart Horizon

SBI Life launches Ulip plan Smart होरिजों

New Delhi: Private sector SBI Life today introduced a Unit Linked Insurance Product (Ulip) – Smart Horizon -- aiming to provide long-term capital appreciation.

"The unique Automatic Asset Allocation feature makes Smart Horizon ideal for many evolving Indian investors who do have the time to make fund allocation decisions on an on-going basis," SBI Life Managing Director M N Rao said in a statement.

Automatic Asset Allocation (AAA), an algorithm-based active investment allocation mechanism. This IT-based system developed by testing over 5,000 potential scenarios in the Indian equity and bond markets, determines the optimal risk-return combination, it said.

The investment will be made in such a manner that initially there will be higher exposure to equities, followed by increasing exposure to debt and money markets as the plan nears maturity. Thus, AAA mechanism ensures better returns for investors, while protecting their capital, it said.

PNB buys out insurance JV, sells MF biz

PNB buys out insurance JV, sells MF बिज़

* PNB buys partners' stakes in life insurance joint venture

* PNB sells entire stake in MF venture to Principal

* Scouting for strategic partners for life, non-life ventures

India's state-run lender Punjab National Bank restructured its insurance and mutual fund joint ventures by buying out its partners' stake from the insurance venture and selling its entire stake in the mutual fund joint venture, the bank said in a release on Thursday.

PNB bought its partners'--Principal Financial Group Mauritius (PFG) and U K Paints--stake of 26 percent and 32 percent, respectively, from the insurance joint venutre, Principal PNB Life Insurance Company.

After taking over the stake from PFG and others, PNB's holding in Insurance Broking Company is now 81 percent and in Principal PNB Life Insurance Company Ltd is 88 percent, PNB release stated.

The bank is now looking at strategic partnerships in life and non-life insurance business and has also invited expressions.

All About Maternity Insurance

Maternity insurance is an insurance product that covers maternity related expenses. This was not covered until few years ago but because of increased awareness and competition, many insurers are covering it under the health insurance plan. This concept is not very popular in India but it is slowly catching up.

Maternity coverage is provided as a rider on a main health insurance package. You can pay extra premium to get the coverage. Some insurance companies do not charge extra premium but put a waiting period and cap the expenses claimed under maternity coverage. Some insurance companies cover it under OPD expenses. In majority of the cases, maternity insurance is covered by group policy in the company.

Currently all major insurance providers such as ICICI Lombard, Max Bupa, Apollo Munich, Star health, and others provide it as rider to the main health insurance.

Why should you take it

Maternity expenses are increasing because of increased.

Irda asks insurers not to charge differential premium

New Delhi: Insurance regulator Irda today asked insurance companies to refrain from charging policyholders differential premium without prior approval of the watchdog.

In the papers submitted to Irda before launching any product, insurers mention a range within which the premium rates would vary depending on unfavourable risk factors.

"It should be ensured that no premium quotation is given which is outside the range filed with Irda and a rate which the underwriter and Appointed Actuary did not approve," the Insurance Regulatory and Development Authority (Irda) said in a circular issued to all general insurance companies.

Irda asked insurers to market their products in accordance with the terms and conditions as approved by the watchdog.

However, Irda has noticed that some insurers offer premium rates outside the range filed with Irda, offer discount in premiums and offer enhanced benefits on the product without charging any premiums.

"This is unhealthy practice, which besides attracting regulatory penal action, will impact.

Understanding travel insurans

Understanding travel insurance

The feeling of being away from work, in a land where nobody knows you, with much to explore and feel, and with lot to learn and share, all of it adds to our travel experience. This is the time when we do not want to think of unwanted events. Travel insurance helps you precisely do that. The travel insurance can be availed for as little as 2 days of travel to a year and it covers you against travel related unanticipated events.

Current schemes in the market

The insurance can be provided to individual travellers, family, and group. Within this category, the scheme can be availed for students, business, leisure, and adventure. You can also avail multiple travel insurance or single travel as per your travel frequency. The plan is also available for different regions of the world.

Almost all the insurance companies such as New India Assurance, ICICI Lombard, TATA AIG,

Moser Baer ties up with Macquarie SBI Infra for proj in MP

New Delhi: Moser Baer Power Projects said it has tied up with Macquarie SBI Infrastructure for funding its Rs 580 crore thermal power project in Madhya Pradesh by offering the latter minority stake in the project.

MB Power Madhya Pradesh Ltd, a subsidiary of Moser Baer Projects Private Ltd is developing a 2,520 MW thermal power plant in multiple phases at Anuppur in Madhya Pradesh with an investment of Rs 13,700 crore.

"Macquarie SBI Infrastructure would invest Rs 580 crore for developing the first phase of 1,200 MW of the Anuppur power plant," Moser Baer Projects Private Ltd Promoter Deepak Puri said at the company's press conference.

"Macquarie SBI Infrastructure would be picking up 'significant' minority stake in the project," Puri added.

The power project is expected to be commissioned in phases by the end of 2014.

The coal for the power project would be sourced from the South eastern Coalfields.

"We are very pleased Macquarie SBI Infrastructure.

ULIPs: Investment under new rules

You should not expect immediate gains from ULIPs.

Changes in ULIPs structure

There has been much discontent among the investors of ULIPs. Some of the reasons for this discontent can be attributed to investors’ ignorance and some can be to ULIPs sales people’s exaggerated claims on returns. The ULIPs fund houses have also been chided by SEBI for not maintaining transparency.

As a result, IRDA has come up with new rules for ULIPs structures. These changes are applicable since Sep, 2010. Some of the changes are:

Increase the minimum investment period: The minimum number of premium paying years and the lock in period has been increased to 5 years.

Even distribution and cap on the charges: The charges will be evenly distributed over the term of the investment. IRDA has also capped the charges on ULIPs.

Canara HSBC OBC Life Insurance rolls out ULIP plan

Canara HSBC OBC Life Insurance rolls out ULIP प्लान

New Delhi: Canara HSBC Oriental Bank of Commerce Life Insurance Company said it has launched a new unit linked plan, which aims at providing cover to a child's future and fulfilling the financial needs.

The company has entered into child protection space by launching Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart Plan, the insurer said in a statement.

Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart is a unit linked insurance plan that provides long-term investment opportunity to build a bright future for your child, the statement added.

The company is owned by Canara Bank (holding 51 per cent) and Oriental Bank of Commerce (23 per cent) and HSBC Insurance (Asia Pacific) Holdings (26 per cent).

"Our Future Smart Plan ensures that the future financial needs of a child remain undisturbed even in case of an unfortunate event," Canara HSBC OBC Life Insurance Director (Sales, Marketing & Products) Mario Perez said.

Aviva launches two traditional insurance products

New Delhi: Private insurer Aviva Life Insurance on Thursday launched two new insurance plans that seek to address concerns on loan protection, income protection as well as offer guaranteed returns.

Life Shield Platinum comes with options to choose the protection need ranging from life protection, income replacement or loan protection, Aviva Life Insurance said in a statement.

The other plan Aviva Dhan Varsha, traditional investment cum protection plan which gives a guaranteed addition of 6 per cent to 9 per cent of the life cover along with life protection and riders to secure one's future, it said.

"We believe that term insurance products like Life Shield Platinum will act as a catalyst in providing protection to many more Indians at affordable rates," said Aviva Life Managing Director T R Ramachandran.

Home loan: Beware the insurance agent

Buying a dream home is something which all of us desire. However, not many of us are lucky enough to have money to buy the home on a down payment and hence need a home loan. Taking a home loan is a tedious process where the lender checks your eligibility and then the credit history. All this takes time and when finally the approval comes, you are already tired. The papers you need to sign to get the loan are a whole bunch and it is a common practice to sign all papers without going through the details mentioned in the paper. One of the papers along with home loan documents is its insurance. Lets discuss what should be your approach while dealing with the home loan insurance.

Why home loan insurance
Buying a home on a loan entails a liability of paying back the loan. In case of your unfortunate death...during the pay term, you would not want your family to become homeless. A home loan insurance insures that the insurance company pays for the balance amount, should something happen, to you.

How does it work
Suppose you take a home loan insurance policy for Rs 25 lakh and in the next 5 years you pay about Rs 5 lakhs. Unfortunately, if something happens to you and your family is unable to repay rest of the 20 lakhs outstanding then the home loan lender is in full right to sell off your house and recover rest of the amount. However, if you have a home loan insurance policy, it will take care of your balance amount of Rs 20 lakhs that you need to repay. You can choose the coverage of a home insurance policy between a reducing balance or on a flat basis.

Bajaj Allianz offers traditional, ULIP products

Mumbai: Private insurer Bajaj Allianz on Tuesday launched two products, one in traditional and in unit linked category, catering to the financial needs of various stages of life.

"Both these insurance plans offer an opportunity for securing a better financial future. Designed to take care of financial needs in various life stages, these two insurance plans to offer one of the lowest premiums in the market," Bajaj Allianz Marketing (Head) Akshay Mehrotra said in a statement here.

Super Cash Gain, a traditional money back plan, gives cash back at regular intervals in the form of a periodic income.

This product starts at a monthly premium of Rs 600 and comes with the option to select up to four-times of base sum assured as life cover, it said.

Money Secure is a regular premium ULIP that provides security to investment with guaranteed maturity benefits.

'Protect investors, crack down on spurious calls'

New Delhi: In the wake of rising spurious calls with attractive insurance policies on offer, sector regulator IRDA has asked industry players to tackle the menace to protect the interest of investors.

The Insurance Regulatory and Development Authority (IRDA) in a letter to the Chief Executives of all General and Life Insurance companies has said that it has received complaints about certain spurious calls identifying themselves as IRDA employees in a bid to sell policies.

"It is necessary for the insurers too to get this matter investigated and initiate necessary action," IRDA executive Director A Giridhar said.

IRDA has filed a police complaint to stop this menace and also issued a notice cautioning people regarding such callers.

In addition, IRDA has also written to some of the insurers, whose names these callers are purported to have used.

The regulator asked the insurance companies, "to initiate necessary steps to help eliminate this menace where ever such call.

Cost cuts put pvt insurers in a spot

Cost cuts put pvt insurers in a स्पोट

Mumbai: The insurance regulator’s recent directive to cap expenses on unit-linked insurance policies and private insurers’ consequent bid to trim costs by shutting some of their smaller branches seem to have had a collateral impact: Though the policyholders’ investments are safe and the company strong, many customers start worrying when a branch downs shutters.

“Some insurers are facing this crisis now. Though nothing is wrong with the company, branch closures create a wrong impression. People feel private life insurers are fly-by-night operators. What is being faced by a few companies will be faced by others too,’’ said the CEO of a leading private insurer.

Private life insurers are cutting costs as they implement the stringent Ulip norms. Sources say many insurers including ICICI Pru Life, HDFC Life and Max New York Life are adjusting to the low-margin Ulip regime by closing branches. Private life insurers have shut almost 400 branches since...September 10.

However, Irda chairman J Hari Narayan said there was no fear among the policyholders as their investments were quite safe. “If any branch closure was happening in the industry, then it was due to the fact that the life insurers’ administrative expenses can’t exceed their certain specified limits as per the Insurance Regulation Act. We don’t force life insurers to cut their costs for the initial five years. But, by sixth year onwards, we do strictly enforce the rule on them,’’ he clarified.

SB Mathur, secretary general, Life Insurance Council explained that when insurers were worried about their bottomline and topline, they couldn’t leave their policyholders in the lurch. “There is no fear psychosis. There was a 40% growth in the first-year premium in October. If the net reduction in terms of number of branches has happened by 60, it doesn’t make any difference as it doesn’t even...comprise 1% of the total number of branches of 12,000.”

Rajesh Sud, MD & CEO, Max New York Life said while his company had shrunk its office space at some places, it had also combined the large number of branches to smaller ones. “On retrenchment of non-performing staff and cost management, the Irda regulations were more coincidental. In fact, Irda has signalled the direction for the industry,’’ he said.

Be the author of your health!

Gautam Buddha once said, "Every human being is the author of his own health or disease." And nothing can be truer than this. We are the only ones who can control our health, no matter how hard we try to shun off this responsibility. So when it comes to our health, we do the best we can: avoid certain foods, exercise when we can and try to change the lifestyles that we lead. And the one thing we often take for granted is insurance. Now at this point you must be thinking: I already have life insurance. Why would I need one for my health? This is a folly that most people make. Having life insurance is not the same as having medical or health insurance.

If one is to break down our life into phases, broadly there are two important parts - the first when you are young and...employed, the second when you retire and are old. In the first stage, health policies can ensure that you have a cover to handle any unforeseen medical expenses and do not to derail your financial wellbeing. In the second phase, the policy is required not just to cover medical emergencies but also long term health care, a concept that is still to catch on in India.

Ask yourself these questions: what would you or your family do if during at any point of life you are stuck by an excruciating illness? How will you financially cope during such a time? Though these questions may be scary, this will give you an idea that you will be prepared financially during such times.

Analyse the current medical situation: While planning for a health or medical insurance, it is important to look at the increasing costs of medical procedures. And with raising inflation,we usually end up underestimating the likely expenses.

Stay away from medical debt: One of the dangers of not opting for adequate health cover is falling into debt due to medical expenses. Having medical insurance will help you to be prepared in case of emergencies and hospitalisations, and not be adversely hit by rising inflation costs.

Look out for a feasible deal: While you are thinking of health or medical insurance, you may feel that going for the cheapest option is the best bet, but read the terms of the policy properly before buying. This becomes necessary as you may realise that several health policies only cover hospitalisation expenses up to a certain level.

Research all the existing plans in the market with your financial planner to select a policy that suits your needs. If employed, don't forget to ask your organisation about the इन्सुरांस.

‘Third Party Motor Insurance Is Extremely Unprofitable For General Insurers

MD and CEO of IFFCO TOKIO General Insurance, S Narayanan feels that unless the premium rates in general insurance space are consistent with claims cost plus expenses the profitability will be elusive. In conversation with Ritu Kant Ojha of The Indian Express, Narayanan says that because of the extreme unprofitable nature due to inadequate premium levels, most companies are critical of Third Party insurance especially in case of commercial vehicles. “This is one area where premium rates are controlled by the regulations. This should be made free and companies should be able to charge their own premium rates after filing with IRDA” he says. Excerpts:

With the competition increasing in the General Insurance space are we going to see lower premiums and better services?

Premium in most classes of insurance has reached a plateau and there is every likelihood of rates firming up. In terms of products, we are likely to...see a number of add-on products and services. Service levels will surely improve. This could well be the differentiator rather than the price.

People have had issues with the TPAs that they take too much time in responding and even when they do, the claim is not given for 100 per cent amount?

Third Party Administrator (TPA) is a relatively new concept and would take some more time to adopt towards a more efficient approach. They need to invest more in technology and employ quality manpower so as to improve turnaround times.

Regarding settlement of claims for 100 per cent, this is done based on the policy conditions. Some policies may have a restrictive coverage for which the claim cannot be paid in full.

High claims ratio remains a concern for the general insurers. What is the reason and what steps is the industry taking to bring it down?

With a desire to...acquire market share, insurers have cut down on the premium rates. On the other hand the claim costs have been going up due to inflation. Unless the premium rates are consistent with claims cost plus expenses profitability will be elusive. Better claims management and plugging of leakages can also help improve claim ratios.

IFFCO TOKIO has completed a decade in India. Do you plan to expand now? Are you looking at an IPO in near future?

We have grown into a Rs 1,875 crore company (in terms of GWP) with a presence in over 440 locations in the country. Our geographical expansion is an ongoing process.

We need to have clarity on the legal and regulatory areas. IRDA is expected to spell out guidelines in this regard. We are prepared for changes in the shareholdings pattern, so as to meet the requirements of law and regulations.

In 2010, insurers made clients kings

In 2010, insurers made clients किंग्स

New Delhi: The insurance industry will remember 2010 as an eventful year in which insurance regulator Irda came out on top in a turf war with market watchdog Sebi over the regulation of Unit-Linked Insurance Products, with the end result of such schemes becoming investor-friendly.

Sweeping regulatory changes with regard to ULIPs have already set the tone for the New Year.

"2011 will be a year of transition and adaptation for the life insurance industry. After having witnessed the changes in the financial market, consumer sentiments and regulatory changes, going ahead life insurance will need to focus on and be sold as a long-term contractual savings and protection tool," Max New York Life Insurance Managing Director Rajesh Sud said.

In April, 2010, a spat between the Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA) over regulation of ULIPs – which are hybrid insurance products in which a portion of...the investor's premium is invested in equity -- led to the metamorphosis of such products.

To end the acrimony between the two regulators, the government issued an ULIP Ordinance on June 18 as capital markets regulator SEBI and insurance watchdog IRDA could not resolve their dispute over which of them was empowered to regulate such products.

Thereafter, the Securities and Insurance Laws (Amendment) and Validation Bill, 2010, was passed by Parliament to address the issues of jurisdiction between the financial sector watchdogs.

The Bill enabled the establishment of a joint body under the chairmanship of the Finance Minister and with representation from the four financial sector regulators and the Finance Ministry. As per the Bill, the Reserve Bank Governor would be vice-chairman of the joint committee.

After the promulgation of the Ordinance, IRDA tightened the norms for these schemes by increasing the lock-in period and raising the risk cover to make a significant distinction...between ULIPs and mutual fund products.

At the same time, dealer commission rates were reduced and disclosure norms tightened to ensure greater transparency of ULIP schemes. As a result, the product became more investor-friendly.

The lock-in period for all ULIPs was increased from three years to five years, including top-up premiums, thereby making them long-term financial instruments which primarily provide risk protection. In contrast, ULIPs were earlier more like an investment product.

IRDA also directed insurers to evenly distribute charges on ULIPs during the lock-in period to ensure that high front-ending of expenses was eliminated.

These new guidelines offered a superior value proposition for customers and ensured that life insurance was promoted as a long-term protection and savings tool, Sud said.

Echoing a similar view, Bharti AXA Life Chief Marketing and Operations Officer (CMOO) Mark Meehan said, "It's short-term pain, but long-term gain for the insurers.

DTC set to change tax burden on insurance to the date of receipt of the proceeds) would be allowed as a deduction from the proceeds received under

DTC set to change tax burden on insurance

Each one of us has different rationale or purpose for availing insurance. The reasons could vary from securing ones retirement, meeting children’s education or marriage expenses or to secure one’s life. Therefore, when the proposed Direct Tax Code (DTC) becomes effective from April 1, 2012, one should assess the impact of insurance plans and take informed decisions while continuing with existing investments and for future plans.

Under DTC, the amount received under a life insurance policy would be taxed on maturity as normal income, if the premium payable in any year, during the policy term exceeds 5% of the sum assured. As per the current taxation laws, receipts from a life insurance policy are exempt from tax provided the premium payable for any of the years does not exceed 20% of the sum assured.

In case of policies which are not exempt, the amount of premium paid (up...to the date of receipt of the proceeds) would be allowed as a deduction from the proceeds received under the insurance policy. i.e. if the amount received on maturity is Rs 5,00,000 and total premium paid is Rs 2,20,000, the amount taxable will be Rs 2,80,000 (5,00,000—2,20,000). However, this deduction would not be available to any amount of premium, which has already been allowed as a deduction in any previous financial year. The maximum limit for deduction for investments in life insurance would be Rs 50,000, in addition to the deduction of Rs 100,000 available for contribution to certain approved funds. However, the limit of Rs 50,000 is a combined limit for life insurance, health insurance and tuition fees. For instance, if one makes an annual contribution of Rs 80,000 towards life insurance premium and Rs 20,000 towards provident fund, currently, the maximum deduction he would get would be.Rs 100,000, but under the DTC he would get a deduction of Rs 70,000 only.

For equity-oriented life insurance schemes (where more than 65% of the total proceeds are invested in equity shares) an income distribution tax of 5% has been introduced. The income distribution tax is payable by the insurance companies. However, the distributions or payments on which such income distribution tax is paid will not be taxable in the hands of the policyholders.

The DTC is still in draft stage and may undergo further changes, more so, as India does not have a well designed social security system in place, it is important to create a retirement basket. Thus, tax payers would need to wait and watch to find out what is in store for them in the DTC.

Mediclaim premiums may rise in 2011

New Delhi: The insurance industry will remember 2010 as an eventful year in which insurance regulator Irda came out on top in a turf war with market watchdog Sebi over the regulation of Unit-Linked Insurance Products (Ulips), with the end result of such schemes becoming investor-friendly. Sweeping regulatory changes with regard to Ulips have already set the tone for the New Year.

“2011 will be a year of transition and adaptation for the life insurance industry. After having witnessed the changes in the financial market, consumer sentiments and regulatory changes, going ahead life insurance will need to focus on and be sold as a long-term contractual savings and protection tool,” Max New York Life Insurance managing director Rajesh Sud said.

As far as general insurance is concerned, mediclaim policy premiums witnessed an increase as insurers tried to cut down their losses due to excessive claims.

What is more, four public sector general insurance firms—Oriental Insurance,...New India Assurance, National Insurance and United Insurance— stopped their mediclaim cashless facility at about 150 top hospitals in select cities, including Delhi and Mumbai, alleging over-charging by these hospitals. However, after prolonged negotiations with the healthcare industry, the cashless mediclaim facility was restored in some of the leading hospitals. The claim ratio —which is still very high in the medical insurance business—is likely to exert pressure on insurers to hike premiums further in the coming year.

In April, 2010, a spat between the Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority (Irda) over regulation of ULIPs—which are hybrid insurance products in which a portion of the investor’s premium is invested in equity—led to the metamorphosis of such products. To end the acrimony between the two regulators, the government issued an Ulip Ordinance on June 18 as Sebi and Irda could not resolve their dispute over...who had the power to regulate such products.

Thereafter, the Securities and Insurance Laws (Amendment) and Validation Bill, 2010, was passed by Parliament to address the issues of jurisdiction between the financial sector watchdogs. After the promulgation of the Ordinance, Irda tightened the norms for these schemes by increasing the lock-in period and raising the risk cover to make a significant distinction between Ulips and mutual fund products.

At the same time, dealer commission rates were reduced and disclosure norms tightened to ensure greater transparency of Ulip schemes.

Echoing a similar view, Bharti AXA Life chief marketing and operations officer (CMOO) Mark Meehan said, “It’s short-term pain, but long-term gain for the insurers.” The industry has been quick to adjust to the changed landscape and improve operational processes and the quality of their distribution chain, said Aviva India managing director T R Ramachandran.

Rel Life got max policy sales among pvt insurers in Apr-Nov

Rel Life got max policy sales among pvt insurers in Apr-नोव

New Delhi: Anil Dhirubhai Ambani Group company Reliance Life Insurance has emerged as the leading private sector insurer in the country in terms of the number of policies it sold in the first eight months of the current financial year.

Reliance Life Insurance sold 13,12,389 policies between April and November, 2010, as against 12,61,668 in the corresponding period last year, according to IRDA data.

"Our wide-ranging products, catering to every section of the society, and pan-India presence with quality service helped us notch up this business milestone," Reliance Life Insurance Executive Director and President Malay Ghosh said.

Reliance Life was followed by Bajaj Allianz and ICICI Prudential, which sold 9,49,183 and 8,26,904 policies, respectively, between April and November this year.

Nevertheless, the country's largest insurer, Life Insurance Corporation, continued to lead the pack when it came to policy sales, notching up 1,93,54,765 new customers in the first eight months of the ongoing fiscal, down 1 per...cent from 1,95,77,088 a year ago.

However, the insurance industry as a whole saw a 6 per cent dip in policy sales to 2,63,51,967 in April-November, 2010, from 2,78,91,082 in the same period last year.

In terms of premium collections during the April-November period, ICICI Prudential was the top private player, mopping up Rs 4,053 crore, while SBI Life garnered Rs 3,952 crore.

They were followed by HDFC Standard Life (Rs 2,150 crore), Bajaj Allianz (Rs 2,033 crore) and Reliance Life Insurance (Rs 1,791 crore) in terms of total premium collection for the eight-month period ended November, 2010.

LIC collected a total premium of Rs 55,513 crore during the April-November period this year.

Overall, the 23 life insurers in the country collectively mopped up Rs 76,990 crore as new first-year premiums during the period, a 39 per cent increase from Rs 55,357 crore in the year-ago period.

The private sector, comprising 22 life insurers, collectively registered...Rs 21,476 crore worth of new business in the April-November period as compared to Rs 18,908 crore a year earlier, translating into a growth of 14 per cent,

PNB seeks JV partner in insurance sector

New Delhi: Punjab National Bank said its plans to foray into insurance business are alive and is looking for a joint venture partner.

"PNB has decided to have a fresh comprehensive re-look at its strategy for insurance business in India with a view to provide full range of financial products to its Indian customers and to realise full value of Bank's reach and customer base," the bank said in a statement here.

The bank said it is looking for opportunities in both life and non-life business.

It invited expression of interest (EoI) for strategic partnership in life insurance and non-life insurance business from Indian and international companies.

"The bank will evaluate these opportunities and may form strategic tie-ups with interested parties," PNB said.

It said it is open to any operating model ' whether existing in the industry or new ' for such strategic partnerships.

"The bank is looking for opportunities both in short-term and long-term. In this...way, the bank contemplates potential benefits to its customers by making available attractive insurance products," it said.

In June this year, PNB had parted ways with two of its partners, US-based Principal and Berger Paints, in a planned life insurance joint venture.

As part of agreement with the earlier partner, each of JV partner is free to undertake business of insurance brokerage or the business of life insurance independently.

The restructuring proposals have since received regulatory approvals, it said.

It was decided that PNB will buy the entire 26 per cent stake held by Principal Financial Group and 32 per cent participating interest of domestic firm UK (Berger) Paints in Principal PNB Life Insurance Company Ltd.

PNB's stake that time stood at 30 per cent in the proposed joint venture, while the remaining 12 per cent is with Vijaya Bank.

PNB had set up a committee to evaluate the prospects of entering the insurance business.

HDFC Life launches ProGrowth Flexi

HDFC Life launches ProGrowth फ्लेक्सी

Mumbai: Private insurer HDFC Life today launched ProGrowth Flexi, a Unit Linked Insurance Plan with minimum monthly premium of Rs 2,500.

“In line with our customer centric approach, for the first time in the industry, HDFC Life offers 30 day free look-in. As ULIPs are the under the new regulatory regime are different, we believe that the customers may need time to get familiar with the new generation of ULIPs and fully comprehend the benefits available under the policy,” HDFC Life Managing Director and CEO Amitabh Chaudhry said in a statement here.

The product also has flexible premium payment options, five investment funds, and the flexibility to change premium paying term.

This ULIP product is targeted at those who are seeking a life insurance plan that is affordable and flexible and at the same time provides value, he added.

HDFC Life is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life,.

Irda asks insurers not to charge differential premium

New Delhi: Insurance regulator Irda today asked insurance companies to refrain from charging policyholders differential premium without prior approval of the watchdog.

In the papers submitted to Irda before launching any product, insurers mention a range within which the premium rates would vary depending on unfavourable risk factors.

"It should be ensured that no premium quotation is given which is outside the range filed with Irda and a rate which the underwriter and Appointed Actuary did not approve," the Insurance Regulatory and Development Authority (Irda) said in a circular issued to all general insurance companies.

Irda asked insurers to market their products in accordance with the terms and conditions as approved by the watchdog.

However, Irda has noticed that some insurers offer premium rates outside the range filed with Irda, offer discount in premiums and offer enhanced benefits on the product without charging any premiums.

"This is unhealthy practice, which besides attracting regulatory penal action, will impact.the financials of the insurer, ultimately affecting the interest of the policyholders and shareholders as well. Such practices should be stopped forthwith,

Understanding travel insurance

The feeling of being away from work, in a land where nobody knows you, with much to explore and feel, and with lot to learn and share, all of it adds to our travel experience. This is the time when we do not want to think of unwanted events. Travel insurance helps you precisely do that. The travel insurance can be availed for as little as 2 days of travel to a year and it covers you against travel related unanticipated events.

Current schemes in the market

The insurance can be provided to individual travellers, family, and group. Within this category, the scheme can be availed for students, business, leisure, and adventure. You can also avail multiple travel insurance or single travel as per your travel frequency. The plan is also available for different regions of the world.

Almost all the insurance companies such as New India Assurance, ICICI Lombard, TATA AIG,...Bajaj Allianz, HDFC Ergo, and many others provide travel insurance covering medical and non-medical emergencies. The premium of travel insurance depends on cost of travel. Usually, the premium can be between 1% and 10% of the trip cost. Travel suppliers also offer insurance but the variety and coverage may be lesser. If you are looking for comprehensive travel insurance package, it is good to find out from insurance companies.

How to make the most of travel insurance

Travel insurance is very flexible in nature. You can choose, decide on coverage and pay the premium, accordingly. The basic travel policy will cover loss of baggage, medical emergency, and accident treatment. You can add more options as shown above for more coverage. Medical expenses are very high in overseas and hence you must take it. If you are travelling with kids or old parents, take more coverage on medical emergency. Shop around for...the deals offered by insurance companies. You should get quote from various agencies, compare, and then select the one meeting your requirement at affordable premium.

While you shop around, check with your existing insurance if you are already covered in some of the areas. For example, if your existing car insurance covers rental car accident, you need not take it again. Your premium will be less in this case. Your flight ticket or credit card may have already given you insurance on loss of baggage. Check if your health insurance already covers travel emergency. Most of the health insurance plans do within domestic travel.

If you are travelling in group, look for group discount. Most of the insurance companies give group discount up to 20% depending on the size of the group.

Moser Baer ties up with Macquarie SBI Infra for proj in MP

Moser Baer ties up with Macquarie SBI Infra for proj in म्प

New Delhi: Moser Baer Power Projects said it has tied up with Macquarie SBI Infrastructure for funding its Rs 580 crore thermal power project in Madhya Pradesh by offering the latter minority stake in the project.

MB Power Madhya Pradesh Ltd, a subsidiary of Moser Baer Projects Private Ltd is developing a 2,520 MW thermal power plant in multiple phases at Anuppur in Madhya Pradesh with an investment of Rs 13,700 crore.

"Macquarie SBI Infrastructure would invest Rs 580 crore for developing the first phase of 1,200 MW of the Anuppur power plant," Moser Baer Projects Private Ltd Promoter Deepak Puri said at the company's press conference.

"Macquarie SBI Infrastructure would be picking up 'significant' minority stake in the project," Puri added.

The power project is expected to be commissioned in phases by the end of 2014.

The coal for the power project would be sourced from the South eastern Coalfields.

"We are very pleased Macquarie SBI Infrastructure...Management has secured this investment," Macquarie SBI Infrastructure Management CEO Varun Bajpai said.

With the current investment from Macquarie SBI Infrastructure, the first phase of 1,200 MW which is anticipated to cost Rs 6,240 crore is fully funded.

"The remaining funding would come from equity infusion by the Moser Baer Projects Ltd," Moser Baer Projects Private Ltd Director Ratul Puri said.

Edelweiss Tokio Life Insurance gets approval from IRDA

Mumbai: Edelweiss Tokio Life Insurance Company, a joint venture between Edelweiss Capital and Tokio Marine, said it has received the initial R1 approval from the Insurance Regulatory & Development Authority (Irda).

R1 is the first step of regulatory clearances required for carrying on the business as a life insurance company in India.

"Life insurance premiums are likely to increase from the present level of Rs 2 lakh crore to about Rs 10 lakh crore in the next decade. We are excited by this opportunity and are confident of bringing a differentiated offering leveraging product development capabilities, understanding of Indian consumer needs and our partners' global experience," Edelweiss Tokio Life Insurance Director Deepak Mittal said in a statement.

Tokio Marine is one of the world's largest insurance groups headquartered in Japan. With over 130 years of experience in the insurance sector it has expanded its reach across geographies in life and non-life insurance sectors.

SBI Life launches Ulip plan Smart Horizon

SBI Life launches Ulip plan Smart होरिजों

New Delhi: Private sector SBI Life today introduced a Unit Linked Insurance Product (Ulip) – Smart Horizon -- aiming to provide long-term capital appreciation.

"The unique Automatic Asset Allocation feature makes Smart Horizon ideal for many evolving Indian investors who do have the time to make fund allocation decisions on an on-going basis," SBI Life Managing Director M N Rao said in a statement.

Automatic Asset Allocation (AAA), an algorithm-based active investment allocation mechanism. This IT-based system developed by testing over 5,000 potential scenarios in the Indian equity and bond markets, determines the optimal risk-return combination, it said.

The investment will be made in such a manner that initially there will be higher exposure to equities, followed by increasing exposure to debt and money markets as the plan nears maturity. Thus, AAA mechanism ensures better returns for investors, while protecting their capital, it said.

To avail the benefit of Automatic Asset Allocation facility, the customer can...choose either Plan A or Plan B, depending on his risk appetite, it said.

Under Plan A, the equity exposure is higher as compared to Plan B. The product also provides the flexibility to allow the customer to actively manage his investment through a choice of four funds namely, Index, Equity, Balance and Bond Fund. This option is possible under Plan C, it added.

The company, now, has a strong bouquet of six Ulips that cater to the long term wealth creation needs of varied customer segments.

The other market linked products are HNI-targeted Smart Elite, NAV-Guaranteed Smart Performer, No Medicals Ulip-Saral MahaAnand, Flexible Ulip-Unit Plus Super and Child Plan-Smart Scholar.

PNB buys out insurance JV, sells MF biz

PNB buys out insurance JV, sells MF बिज़

* PNB buys partners' stakes in life insurance joint venture

* PNB sells entire stake in MF venture to Principal

* Scouting for strategic partners for life, non-life ventures

India's state-run lender Punjab National Bank restructured its insurance and mutual fund joint ventures by buying out its partners' stake from the insurance venture and selling its entire stake in the mutual fund joint venture, the bank said in a release on Thursday.

PNB bought its partners'--Principal Financial Group Mauritius (PFG) and U K Paints--stake of 26 percent and 32 percent, respectively, from the insurance joint venutre, Principal PNB Life Insurance Company.

After taking over the stake from PFG and others, PNB's holding in Insurance Broking Company is now 81 percent and in Principal PNB Life Insurance Company Ltd is 88 percent, PNB release stated.

The bank is now looking at strategic partnerships in life and non-life insurance business and has also invited expressions of...interest for the same.

The Delhi-based bank also bought Principal's 26 percent stake and Berger Paints' 25 percent in the Insurance Broking Company. On the other hand, PNB sold its entire 30 percent stake in mutual fund venture to Principal, thereby exiting from the business. However, the bank will continue to distribute products of Principal PNB Asset Management company for next three years.

PNB and another state-run lender Vijaya Bank had entered into a partnership with Principal for life insurance and mutual fund joint ventures some years back.

However, the joint ventures had run into rough waters and the banks wanted to exit the alliance since the last few years.

All About Maternity insurans

All About Maternity Insurance

: Maternity insurance is an insurance product that covers maternity related expenses. This was not covered until few years ago but because of increased awareness and competition, many insurers are covering it under the health insurance plan. This concept is not very popular in India but it is slowly catching up.

Maternity coverage is provided as a rider on a main health insurance package. You can pay extra premium to get the coverage. Some insurance companies do not charge extra premium but put a waiting period and cap the expenses claimed under maternity coverage. Some insurance companies cover it under OPD expenses. In majority of the cases, maternity insurance is covered by group policy in the company.

Currently all major insurance providers such as ICICI Lombard, Max Bupa, Apollo Munich, Star health, and others provide it as rider to the main health insurance.

Why should you take it

Maternity expenses are increasing because of increased...complexity in delivery. Today the cost comes anywhere between Rs 25,000 to 1 lakh. Maternity insurance is a good way to reduce the burden on your pocket.

Important Points

First, you should check with your company whether maternity is already covered by group insurance plan. Most of the companies cover employees under a group plan. This is the best option.

Secondly, if you already have a health insurance plan, check if there is option to add maternity rider. Usually insurance companies are more open and liberal to give this rider if you have been doing business with them for some time.

There are some important points you should keep in mind while planning to add maternity insurance.

1. There is usually a waiting period of 3-6 years. This means you can only claim the maternity benefits after 3-6 years from the day you take health insurance. In case of group insurance under company plan,...the waiting period is 9 months.

2. The coverage is limited to a maximum amount of Rs 50,000. This number varies with insurance providers. The coverage again varies with the type of delivery; less for normal and more for caesarean.

3. Emergency cases are covered and hence this will be a big relief. However, you should check the sum insured in emergency cases as many insurance providers put a cap of Rs 50,000.

4. Check all the features, clauses, and process with the insurer the exact coverage under maternity rider.

5. Start early in life. You will not get maternity insurance after pregnancy as insurance providers take it as pre-existing condition. Even otherwise, you should check with your insurance providers regarding the waiting period.

Inclusion and Exclusion

Here is a list of coverage under the plan. All insurers may not cover all the aspects but the first three conditions are usually covered by all.

ULIPs: Investment under new rules

Changes in ULIPs structure

There has been much discontent among the investors of ULIPs. Some of the reasons for this discontent can be attributed to investors’ ignorance and some can be to ULIPs sales people’s exaggerated claims on returns. The ULIPs fund houses have also been chided by SEBI for not maintaining transparency.

As a result, IRDA has come up with new rules for ULIPs structures. These changes are applicable since Sep, 2010. Some of the changes are:

Increase the minimum investment period: The minimum number of premium paying years and the lock in period has been increased to 5 years.

Even distribution and cap on the charges: The charges will be evenly distributed over the term of the investment. IRDA has also capped the charges on ULIPs.

Top up plans: The top plans will have cover of 125 per cent of the...premium below 45 years of age and 110 per cent of the premium for people above 45 years.

Surrender charges: IRDA has also reduced the surrender charges to 15 per cent in first year to 5 per cent in 5 th year with gradual reduction.

For pension products: IRDA has fixed a guaranteed return of at least 4.5 per cent. This is a great step.

Provision for loan against investment: The investors can now take a loan of 40 per cent of NAV value from an ULIPs fund with 60 per cent equity component while the loan can be 50 per cent if the equity proposition is 40 per cent.

How to make the best use of ULIPs

The financial market has many products and all of them are designed to fulfil a specific need of people. This applies to ULIPs as well. The investors need to understand the ULIPs...and its features to make the most of it.

First, invest for the long term and do not forget “insurance” part of ULIPs. ULIPs is market linked insurance-cum-investment product that will provide good returns in long term. Since market is generally volatile in short term, you should not expect immediate gains from it.

Second, ULIPs has many variants that can satisfy your needs. Look at the variants and see what suits you. A newly employed person can invest in aggressive plan while an old person may go for conservative plan.

Lastly, investors should also understand the charges and fee structure of ULIPs. This has been a major source of discontent. With new changes, the charges are easy to understand.

Canara HSBC OBC Life Insurance rolls out ULIP plan

Canara HSBC OBC Life Insurance rolls out ULIP प्लान

New Delhi: Canara HSBC Oriental Bank of Commerce Life Insurance Company said it has launched a new unit linked plan, which aims at providing cover to a child's future and fulfilling the financial needs.

The company has entered into child protection space by launching Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart Plan, the insurer said in a statement.

Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart is a unit linked insurance plan that provides long-term investment opportunity to build a bright future for your child, the statement added.

The company is owned by Canara Bank (holding 51 per cent) and Oriental Bank of Commerce (23 per cent) and HSBC Insurance (Asia Pacific) Holdings (26 per cent).

"Our Future Smart Plan ensures that the future financial needs of a child remain undisturbed even in case of an unfortunate event," Canara HSBC OBC Life Insurance Director (Sales, Marketing & Products) Mario Perez said. product offers tax benefit to customers on premiums paid under Section 80C and Section 10(10D) respectively, of the IT Act, 1961.

Aviva launches two traditional insurance products

New Delhi: Private insurer Aviva Life Insurance on Thursday launched two new insurance plans that seek to address concerns on loan protection, income protection as well as offer guaranteed returns.

Life Shield Platinum comes with options to choose the protection need ranging from life protection, income replacement or loan protection, Aviva Life Insurance said in a statement.

The other plan Aviva Dhan Varsha, traditional investment cum protection plan which gives a guaranteed addition of 6 per cent to 9 per cent of the life cover along with life protection and riders to secure one's future, it said.

"We believe that term insurance products like Life Shield Platinum will act as a catalyst in providing protection to many more Indians at affordable rates," said Aviva Life Managing Director T R Ramachandran.

Home loan: Beware the insurance agent

Home loan: Beware the insurance अगेंट

Buying a dream home is something which all of us desire. However, not many of us are lucky enough to have money to buy the home on a down payment and hence need a home loan. Taking a home loan is a tedious process where the lender checks your eligibility and then the credit history. All this takes time and when finally the approval comes, you are already tired. The papers you need to sign to get the loan are a whole bunch and it is a common practice to sign all papers without going through the details mentioned in the paper. One of the papers along with home loan documents is its insurance. Lets discuss what should be your approach while dealing with the home loan insurance.

Why home loan insurance
Buying a home on a loan entails a liability of paying back the loan. In case of your unfortunate death...during the pay term, you would not want your family to become homeless. A home loan insurance insures that the insurance company pays for the balance amount, should something happen, to you.

How does it work
Suppose you take a home loan insurance policy for Rs 25 lakh and in the next 5 years you pay about Rs 5 lakhs. Unfortunately, if something happens to you and your family is unable to repay rest of the 20 lakhs outstanding then the home loan lender is in full right to sell off your house and recover rest of the amount. However, if you have a home loan insurance policy, it will take care of your balance amount of Rs 20 lakhs that you need to repay. You can choose the coverage of a home insurance policy between a reducing balance or on a flat basis.

Choosing home loan insurer
It is not mandatory to take...home loan insurance from the lender. However, many lenders get into a tie up with an insurance company and involve in an arm-twisting techniques to pressurise a borrower into taking a home loan insurance policy from them. Many banks like ICICI bank, SBI, HDFC bank etc have floated their life insurance companies. When you apply for a home loan to a bank branch the bank executives may try to push you to buy a home loan insurance policy from them saying that your application may get delayed or rejected if you do not take a home insurance policy from them. Always remember that “insurance is a matter of solicitation” and no company can force you to buy an insurance policy from one particular company.

Bajaj Allianz offers traditional, ULIP products

Mumbai: Private insurer Bajaj Allianz on Tuesday launched two products, one in traditional and in unit linked category, catering to the financial needs of various stages of life.

"Both these insurance plans offer an opportunity for securing a better financial future. Designed to take care of financial needs in various life stages, these two insurance plans to offer one of the lowest premiums in the market," Bajaj Allianz Marketing (Head) Akshay Mehrotra said in a statement here.

Super Cash Gain, a traditional money back plan, gives cash back at regular intervals in the form of a periodic income.

This product starts at a monthly premium of Rs 600 and comes with the option to select up to four-times of base sum assured as life cover, it said.

Money Secure is a regular premium ULIP that provides security to investment with guaranteed maturity benefits.

SBI Life becomes largest pvt insurer

]

New Delhi: SBI Life has overtaken ICICI Prudential to become the country's largest private insurer in terms of first year premium collection, garnering a new business of Rs 4,698 crore in April-December this fiscal.

ICICI Prudential collected the first year premium of Rs 4,651 crore in nine months to December, according to the data released by Insurance Regulatory and Development Authority.

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74 per cent of the total capital in the JV and BNP Paribas Assurance holds the remaining 26 per cent.

In percentage terms, new business of ICICI Prudential, a 74:26 joint venture between ICICI Bank and UK-based Prudential Plc, increased by almost 21 per cent compared to the same period last year. While SBI Life's growth was 7 per cent during the April-December period.

LIC crosses 2.5 cr policies target

Mumbai: Life Insurance Corporation today said it has crossed the landmark 2.5 crore policies in the current year as of January 29.

"LIC has completed 2,52,44,846 policies and received Rs 34,137.12 crore in First Premium Income in the current financial year," the country's largest insurer said in a statement here.

The ULIP Plans under the new IRDA guidelines helped boost the figures substantially, it said adding that the new business under the new ULIP Plans as of January 29 stood at 1,098,663 policies generating a premium of Rs 5136.25 crore.

The Corporation's Endowment Plus, launched on September 20, 2010, has garnered 1,017,560 policies with a First Premium Income of Rs 4,804.12 crore, in just over 4 months, it said.

Pension Plus, the only regular premium pension plan available in the market after introduction of new rules has brought in 81,103 policies with a First Premium of Rs 332.13 crore, it added.

Insurers will pay damages only on forcible entry: NCDRC

New Delhi: Forcible entry into premises is a pre-requisite for an insured person to claim damages for burglary from the insurer, the national consumer forum has ruled, dismissing a cooperative credit society's claim for compensation for theft from its safe by its own staffers.

"In the facts and circumstances, the insurance company had rightly repudiated the claim of the complainant on the ground of lack of actual forcible and violent entry as also the involvement of the employees of the establishment of the complainant in the incident in question," said the National Consumer Disputes Redressal Commission (NCDRC).

The NCDRC gave its ruling on an appeal by New India Assurance Company, which had insured Dudh Sagar Daily Cooperative Society at Mehsana in Gujarat against burglary.

The state-run insurance company has come to the apex consumer forum challenging concurrent rulings of the Gujarat State Consumer Commission and Mehsana district consumer forum awarding a compensation worth over Rs...2 lakhs to the co-operative society for a theft which had been allegedly committed in collusion with two of its staffers.

The case of theft dated back to 1995, when nearly Rs 3 lakh was stolen from the safe of the cooperative society, which lodged a complaint naming its cashier and manager as suspects, who, however, were released later due to lack of evidence.

The police during its probe into the case found no evidence that cooperative society had been burgled as its entry gate was found intact and even the lock on the safe from which the money had gone missing, was found intact. The safe had been opened using a duplicate key, the police concluded in its investigation.

Accordingly, the insurance company refused to pay any damage to the cooperative society, saying its premises had not been burgled against which it was insured.

The cooperative society, in turn, moved the district consumer.forum, which, however, ordered the insurance firm to pay over Rs 2 lakh as damages for theft.

The district consumer forum's ruling was largely endorsed by the state consumer commission, promoting the insurance firm to move the country's apex consumer forum.

The apex consumer forum set aside the state commission order saying, the insurance company, rightly repudiated the claim for damages as the terms of the policy stipulated forcible entry into premises as one of the prerequisite for realisation

LIC launches two non linked plans

Mumbai: Life Insurance Corporation said it has launched two new non linked plans -- Bima Account I and Bima Account II.

These are the first Variable Insurance Plans under the new IRDA regime, LIC said in a statement here.

The plans are very simple, ensure liquidity for the customer, have guaranteed minimum returns, transparent charges and provide ample risk cover, it said.

Moreover, in Bima Account I there is no requirement of undergoing medical examination.

The entry age for the Bima Account I is from 11 years to 50 years while it is 8 years to 60 years for Bima Account II.

The minimum premium is Rs 600 per month under ECS mode for Bima Account I, while it is Rs 1,250 under Bima Account II, it said adding that the minimum yearly premium for Bima Account I is Rs 7,000; and Rs 15,000 for Bima Account II.

Irda bans outsourcing of core activities by insurance firms

Mumbai: Insurance Regulator Irda has announced the dos & don'ts of outsourcing in the fast growing insurance industry Core activities including underwriting, product design and all actuarial functions and enterprise wide risk management, investment and related functions, fund accounting, including NAV calculations, admitting or repudiation of all claims, bank reconciliation, policyholder grievances redressal, approving advertisements, market conduct issues, compliance with AML, KYC cannot be outsourced by the insurers, said Irda.

Insurers should not engage in outsourcing that would result in their internal control, business conduct or reputation being compromised or weakened, said Irda.

The new guidelines come into force with immediate effect. The insurers have to terminate all existing outsourcing contracts entered into in contravention of these guidelines before June 31. Beyond the time period specified herein, the Irda may relax time limit by 3 more months, on a case to case basis, in respect of existing contracts that are in contravention...of this circular.

Irda has said that the entities engaged for cheque pick-up shall have a net worth of at least Rs 10 crores. However, these conditions are not applicable to scheduled commercial banks and post office.

Such collection and pick up by agents who have not procured such business is regarded as outsourcing.

However, insurers need to carry out the due diligence on individual agents and corporate agents while outsourcing the same.

However, the total amount entrusted to be collected and picked up by agents and corporate agents for a given financial year should not exceed three times the renewal commission that the said agent earned in the preceding financial year.

It is also a prerequisite for carrying out activity that such agents are in existence at least for a period of two years. The insurer has to assign this activity to agents and corporate agents by..

Insurance: Motor pool system should be abolished

Insurance: Motor pool system should be अबोलिशेद

With the increase in claim ratio in the motor segment, it is hightime for the regulatory authority to discontinue the motor pool and let the general insurers manage the claims themselves, says SS Gopala Rathnam, managing director, Cholamandalam MS General Insurance Company in an interview with FE’s R Ravichandran. Excerpts:

Ho do you see the growth of general insurance industry?

For the nine-month period ended December 2010, the general insurance industry has grown by 22% to Rs 35,000 crore and is expected to end the current financial year with the same growth to Rs 42,500 crore. The growth is largely driven by motor, health, commercial followed with fire, engineering and marine sectors. Motor and health insurance hold the major chunk of the growth with 65% of the total business, followed by others. The industry is expected to grow at a CAGR of 15% over the next three years to touch Rs...68,000 crore owing to overall buoyancy in economic activities and higher disposable income.

There has been apprehension among general insurers on increasing claim loss ratio owing to motor pool contribution. Can you explain it?

The claim loss ratio has gone up sharply to 127% over the years and is expected to touch 160% if the existing pattern continues. Last year alone the industry had to incur Rs 650 crore loss as the claims overshot the seeding premium to third party motor pool. Since 2007, the industry had to lose around Rs 1,800 crore owing to various reasons. We are in talks with transport companies on claims aspect. Irda should abolish the motor pool and allow the individual companies manage their own claims or allow increase in third party premium. A committee is working on this issue.

How have been the industry's claim ratio and why the growth is...not happening as expected?

Private insurers are comparatively better placed in managing their claims. The claim ratio is 80% as comapred to public sector insurers claim ratio of 88% despite increase in prices. The major factor affecting the general insurance industry's growth owing to the people's tendency in not renewing their insurance for vehicles after initial period of one year. Nearly 75% of the two-wheelers sold are not renewed and nearly 45% of the cars sold are not renewed after first year. We have asked Irda to make it mandatory for a vehicle buyer to have a minimum of three to five year policy as the level of accidents are going up. Nearly 3% to 4% increase in claim ratio has been due to these accidents.

What are your growth plans?

We expect to end the financial year with Rs 950 crore business and a growth of 22%. Motor holds 60%, followed by..

Panel to frame rules for demat insurance policies

Panel to frame rules for demat insurance पोलिसिएस

Mumbai: In a move that will usher in demat of insurance policies, insurance regulator Irda on Thursday has set up a working committee to chart out the modalities for electronic issuance of insurance policies. India may be having low insurance penetration but has the largest number of insurance policies.

The working group is expected to submit its recommendations to the Irda before March 4, 2011.

Among other issues the panel will examine mechanics involved in issuance of electronic policies, examination of the legal implications and the required amendments, if any to the relevant regulations, guidelines and other circular issued by Irda, modus operandi of proposed electronic structure. The other issues like operational procedures to be in place for policy servicing , cost benefit analysis and any other issues connected to electronic policies will also be discussed by the panel.

A Giridhar,member, Irda will head the panel. The other members of the panel are ICICI...Prudentail Life Insurance MD & CEO Sandeep Bakshi, Birla Sun Life Insurance , CEOJayant Dua, Bajaj Allianz Life Insurance CEO V Philip, HDFC Std Life Insurance CEO Amitabh Choudhary, TATA AIG General CEO Gaurav D Garg, CDSL executive director PS Reddy and NSDL Database Management MD & CEO Manoj Vaish. Randip Singh Jagpal, DVS Ramesh and G Rajeshwar will represent Irda in the panel. Sources point out that Irda had already started discussion with two depositories NSDL and CDSL.

The Indian life insurance industry has around 30 crore life insurance policies and every year around three crore policies are being added. The demat of the policies will help the industry to settle the claims faster.

Insurers said massive depository support is required for dematerialising life policies. Getting life insurance policies into the demat form was an idea of APJ Abdul Kalam, who..had floated the concept when he was the President of India.

LIC introduces two new plans

Kottayam: Life Insurance Corporation of India has introduced two new plans Bima Account-I & II (table Nos 805 & 806). The plans are non participating variable insurance type of policies with regular mode of premium payment. The option of top-up facility is also provided.

Under these plans, there will be a policy holder account maintained separately for each policy holder, an official release said.

The premiums net of charges as specified will be credited to the policy holder's account and it will earn an annual interest six per cent per annum. This interest is guaranteed for the whole of policy term. The corporation may also declare additional interest based on its experience under the plan, it said.

In case of unfortunate death of Life Assured, when the policy is in force, the insured amount along with the balance in the account will be paid to the nominee. On maturity, the...life assured will be entitled to the amount in his account.

The policies are available for persons in the age group of eight to 60 years. The premiums can be paid in yearly/ halfyearly/quarterly/monthly ECS modes.

While the policy holder will be entitled to the full amount in his account after three years of premium payment by way of surrender value, Loan can be availed after completiton of one year from commencement provided at least one full year's premiums have been paid. IT benefits under Sec 80C and Sec 10 (D) are also available,

Mastek eyes acquisitions in insurance biz

Mumbai: Software services provider Mastek is scouting for acquisitions worth $10-$30 million in insurance vertical, its chief financial officer said on Tuesday.

Insurance business accounts for 44-45 per cent of Mastek's overall revenue.

"We see definite signs of growing at closer to industry rates next year," Farid Kazani told Reuters on the sidelines of a NASSCOM event. The company has been posting losses for the past three quarters in a row, largely on weakness in Europe.

Increase tax exemption limit on people: Life insurers

Mumbai: With the Budget 2010-11 around the corner, the life insurers have put forward their wish lists. The Life Insurance Council (LIC), the official representative body of the life insurers had recently met the standing committee on finance headed by former finance minister Yashwant Sinha to submit proposals for the Budget.

The LIC has proposed allowing Rs 1,20,000 of premium from life and health insurance policies to be exempted from tax.

Currently, a total of Rs 1,00,000 of investment, including the life insurance premium is eligible for tax exemption. Another Rs 20,000 of health insurance premium is also eligible for tax exemption.

The Draft Tax code(DTC) which may be implemented from March 11 has suggested an amount of Rs 50,000, including health insurance and tuition fees should be given tax exemption.

“Tuition fees should be separated from insurance premium as there is no co-relation between them,'' said LIC adding that alternatively government should allow...deduction for policies with 10 year maturity.

The life insurers also have a separate limit for deductions under Section 80C for long-term saving instruments like life insurance. Currently, the deduction under Section 80C also includes short-term saving instruments like some mutual funds and fixed deposits. Life Insurance and Pensions are the only segments of financial services that address the needs of individuals in the long-term. Hence, the government should look at encouraging people to save for long-term by providing a separate limit for long-term savings, said TR Ramachadran, CEO & MD, Aviva India “Insurance business is a long-term gestation business. Currently, we are allowed to carry forward losses for only 8 years. Most insurers do not make profit even in the 10th year. Hence, we recommend that the period for carry forward of losses is increased to 12 years, said Ramachandran.

The insurance industry in India is at a..nascent stage and taxing the maturity proceeds will adversely impact the life insurance business and the industry. It will discourage investors to invest in long-term savings as it may result in unjustified tax burden especially on those customers who do not avail the benefit under Section 80C. Amitabh Chaudhuri, MD & CEO, HDFC Life said, “I would like to see some changes in the DTC which may include to have clarity on the yields. The minimum guarantee on return in case of pension fund has got no relevance and hence I would like that it should be made an optional and the choice should be given to the customers.

Future Generali Insurance Week creates Guinness world record

Future Generali Insurance Week creates Guinness world रिकॉर्ड

Mumbai: Future Generali India today claimed that it has set a new Guinness World Record with its industry first initiative - Future Generali Insurance Week (FGIW), which it conducted between January 29 to February 6, 2011.

Future Generali India, the insurance joint venture between the Future Group and Generali of Italy, conducted FGIW across 103 Future Group retail outlets and over 190 Future Generali branches.

FGIW marked its successful culmination by gaining entry to the Guinness Book of World Records for the longest balloon chain in the world. This 20 km long chain formed by balloons signed by 10 lakh people, who are committed to getting adequately insured and thereby ensuring the security of their loved ones, through the FGIW, a company statement said here.

Insurance penetration in India is just 2.53 per cent in life and 0.61 per cent in non-life insurance (annual premium paid as percentage of country's GDP).

In terms of...Insurance density, the numbers are even more alarming - in developed nations like the US is it is 33 times, that of India, the UK is 73 times and Japan is 65 times. Even a country like Thailand is double than that of India, it said.