""FLASH NEWS""

"" Listing of state general insurers may be staggered.""...""" New India Assurance launches “New India Premier Mediclaim Policy” with exclusive features and Sum Insured upto Rs. 1 crore""".... “The tentative decrease in D.A. Slabs is 9 for the months from February,2017 to April,2017 - The net number of slabs for Feb.,2017 stands at 469"".."" ALL MEMBERS OF NFGIE/GICEU: PL ENSURE PAYING LEVY ON WAGE REVISION IMMEDIATELY ON RECEIPT OF ARREARS TO THE RESPECTIVE STATE /REGIONAL UNITS TO STRENGTHEN FINANCIAL POSITION OF NFGIE AS WELL AS STATE UNITS OF GICEU""....."" WAGE ARREARS WILL BE PAID ON 05th FEB.,2016""...."" WAGE REVISION FILE WAS CLEARED BY FINANCE MINISTRY ON THURSDAY 14TH JAN.,2016 ONLY. EXPECTING NOTIFICATION AT ANY TIME. HOWEVER, ON TUESDAY 19TH JAN.2016 GIPSA GOVERNING BODY MEETING HELD AT 'GOA'. PAYMENT DATE MAY BE DECIDED BY GIPSA AUTHORITY.""..."" NEXT ROUND OF DISCUSSIONS WITH GIPSA ON 04TH, 5TH & 6TH nOV., 2015 AT HOTEL GOLCONDA,HYDERABAD- NFGIE SLOT FOR DISCUSSIONS ON WAGE REVISION WITH GIPSA AT 2 PM ON 04.11.2015""...""Received a call from Mr A K Singhal, Advisor, GIPSA to our National Federation General Secretary, Mr P S Bajpai regarding the next round of Wage Talks on 29th October 2015 (Thursday) at Mumbai. Detailed Circular follows.""..."" We have been informed by Mr. Vasant Khande,Mumbai that Mr. Ashish Shelar,MLA and BJP President of Mumbai is going to attend our NFGIE conference on 1st October,2015 in Chennai""...""Wage revision and Pension Option – Programme of Agitation::: 1. Lunch Hour demonstrations in all centres on 15th and 23rd September.2. Signature campaign (memorandum addressed to Finance Minister) to complete by 23rdSeptember.;3. No late sitting in offices and no work on Saturdays, Sundays and Holidays w.e.f. 23rd September, 2015;4. Joint Employees meetings in all offices to campaign;5. Perspective of strike actions in October ""......"23RD JULY IS NEW INDIA'S FOUNDATION DAY(23RD JULY, 1919). ON THIS HAPPY OCCASSION, LET ALL NEW INDIANS TO RE-DEDICATE THEMSELVES ONCE AGAIN TO BRING BACK IT'S GLORY AND TO RETAIN NO.1 POSITION WITH PROFITS




""NEW INDIA ASSURANCE BEATS COMPETITION, GETS $9.5 BILLION AIR INDIA DEAL. One of India’s biggest public sector general insurer, New India Assurance (NIA) led consortium of public sector insurance companies has been awarded the contract to insure Air India’s huge fleet of 126 aircrafts worth 9.5 billion dollars. The consortium outbid the tender submitted by private general insurance companies, for this contract floated by Air India. NIA will insure Air India for 9.5 billion insurance cover for a premium of $22.5 million, which would be a one of the biggest aircraft insurance deals in the whole of Southeast Asia. PSU insurers continue to insure Air India for 4th year in a row"".....""Thank u all for staging a successful DHARNA today (06.7.2015) all over India as part of JFTU programme. At Mumbai we met Chairman GIPSA who informed that ministry is insisting on wage settlement on bank line only. Still they are pursuing with the ministry for getting sanction for a better package for PSGI Companies citing various factors. Due to this GIPSA is delaying resumption of wage negotiation. More stringent TU action is needed by JFTU against Ministry of Finance stand. JFTU will decide its further programme....Than 'Q'...Sujit Bagchi,General Secretary, "NFGIE""...""


TOTAL WEB VIEWERS

Thursday, November 24, 2011

IRDA Tightens Rules for websites vending insurance products

DEAR VIEWERS,
The Insurance Regulatory and Development Authority (IRDA) today issued stringent guidelines for websites vending information on insurance products of various companies and enabling comparison before buying.

For every product that is sold through these websites, the “web aggregators” earn a commission from the insurance company they have tie-up with. Until now, there have been no guidelines on the amount of commission payable or the pre-requisites to enter into an insurance web aggregation business. The new guidelines will help standardise norms.

As per IRDA’s draft guidelines, companies will now need to have a minimum net worth of Rs 10 lakh, and they will have to register themselves with IRDA to become eligible for providing information related to the insurance sector on their websites.

Starting February 2012, web aggregators would not be allowed any sponsored content on their website. They will not be allowed to use any rating, ranking, endorsement or bestsellers  of insurance products. There would be cap of Rs 1 lakh on the fee paid by the insurance companies to the web aggregators. To plug the gap of paying fee via other means such as training, infrastructure development, Irda has disallowed “reimbursement of expenses” by insurers.

They will get remunerations only if leads provided by them result in sale, which is capped at 25 per cent of the total commission payable on the first-year premium. The current industry average per lead is around Rs 100. From February, it would come down to Rs 10.

“These guidelines will result in the end of insurance aggregation in India. Under these conditions it does not make any sense for us to function as aggregators in the market anymore”, said Yashish Dahiya, CEO, Policy Bazaar.

...EDITOR









Monday, November 14, 2011

PROMOTIONAL EXCERCISE WITHIN CLASS-1 CADRES-2011

DEAR ALL,

WE HAVE RECEIVED A COMMUNICATION FROM OUR APEX BODY THAT THE GIPSA GOVERNING BODY HAS ACCORDED APPROVAL FOR CONDUCTING PROMOTIONAL EXAMINATION WITHIN THE CLASS-1 CADRES, WITH OUT "FAST TRACK" MODE (.)  

THE EXAMINATION  LIKELY BE HELD EITHER ON 11TH OR 18TH DECEMBER, 2011, SUBJECT TO AVAILABILITY OF EXAMINATION CENTRES .   

WITH WARM GREEETINGS,

M. HANUMANTHA RAO   T. GOPALA KRISHNA
   PRESIDENT          GENERAL SECRETARY

Saturday, November 12, 2011

UNITED INDIA INSURANCE SET FOR 10% DISINVESTMENT, AWAITS GOVT. APPROVAL

DEAR ALL,
Government-run United India Insurance (UII) is geared up for 10 per cent disinvestment, whenever the government takes the call, the company’s chairman G Srinivasan said. His comment was in response to a query on reports about the centre planning to divest 10 per cent stake each in closely-held insurance companies like New India Assurance, United India, National Insurance and Oriental Insurance.

“We have not received any intimation or timeframe from the government as yet. But, we are fully geared up for the divestment process, as and when the government takes a call on that,” he said.

Meanwhile, the company, which announced the results for the first half of the financial year 2011-12, has registered a net profit Rs 341 crore for the six months ending ending September 30, against Rs 218 crore in the corresponding period last year. A fall in underwriting loss ratio (losses due to poor underwriting practices) to 82 per cent from 94 per cent last year and a reduction in management expenses helped the insurer in clocking healthy profits, Srinivasan explained.

The third-party motor pool system, in which motor insurance claims were settled according to the market share of the insurer, resulted in many non-life insurers suffering huge losses last year. UII effected an increase in its motor insurance premium, which helped in reducing its losses.

“Though, we have increased premium rates, they are still not adequate. Third-party premiums have to go up and the portfolio needs to breakeven to become viable. We hope to see a decontrol in the third-party pool to happen eventually,” Srinivasan said.

The gross premium of the company grew 27 per cent during the first half of this financial year to Rs 4,033 crore, against Rs 3,178 crore registered in the corresponding period last year. The company also saw its market share increase marginally to 14.61 per cent from 14.26 per cent in first half of last year.

Motor premium income saw the highest growth of 38 per cent in the first half of FY12 to Rs 1,351 crore, followed by health insurance, which grew 33 per cent to Rs 1,168 crore.

.......EDITOR

Wednesday, November 9, 2011

Third party motor insurance pool may get scrapped

DearViewers,
Insurance companies have been knocking on the doors of the regulator for scrapping the third party motor pool, which was set-up by all general insurers in India to collectively service commercial vehicle third party insurance business. J Hari Narayan, IRDA Chairman said that the industry has been demanding it for some time.

Motor Insurance
















.

Private insurance companies have been opposing the pool and allege that they are being forced to contribute disproportionately to the corpus.

Motor pool has been operational since 1st April 2007, and includes each and every insurer who is registered for carrying on general insurance business (including motor insurance business) under the Insurance Act, 1938. Standalone health insurance companies like Apollo Munich Health, Star Health and Max Bupa are exempted from it. General Insurance Council (GIC) acts as the administrator of the pool.

Public sector insurers like New India Assurance, United India Insurance, National Insurance and Oriental Insurance insure nearly 60 per cent or more of the markets.

Ritesh Kumar, Managing Director and CEO of HDFC Ergo General Insurance Company said that there are issues relating to third party motor pool, which is a concern for all general life insurance companies.

“Fundamentally, we want the pool to be dismantled. It is not benefiting anyone and pricing has to be corrected,” he added.

Earlier this year, IRDA allowed insurance companies to increase the
premiums on motor insurance. The hike was in the range of 10 to 65 per cent for all class of vehicles including private cars, two-wheelers, three-wheelers, commercial vehicles, goods carrying vehicles etc.

According to ASSOCHAM, motor insurance will continue to remain the largest category, contributing over 40 per cent of industry premiums.

Since this is an important issue, top executives, including HDFC chairman Deepak Parekh, ICICI Bank MD Chanda Kochhar, AIG country head & CEO Sunil Mehta and G Srinivasan CMD of New India Assurance as well as United India Insurance met the regulator last week to lobby for scrapping the third party motor pool.

General insurance sees a rise in premium collections in September 2011

Dear Viewers,
IRDA has released the business figures of general or non-life insurance for the month of September 2011. Total new business premiums collected by the four public sector insurers (PSU) - New India Assurance, National Insurance, United India Insurance and Oriental Insurance is Rs 2,663 crores. For the same period, the total premiums collected by the 18 private general insurance companies (including 3 standalone health insurers) is Rs 1827.72 crores.

New India Assurance leads the way with the highest premium collections of Rs 725.6 crores followed by the other 3 PSUs. Among the private insurers, ICICI Lombard leads the charts with premium collections of Rs 396.6 crores, followed by Bajaj Allianz General Insurance.

The three standalone health insurance companies – Star Health, Apollo Munich and Max Bupa have collectively garnered premiums of Rs 103.24 crores. Health insurance awareness in India is on the rise and these 3 insurers specifically cater to this segment with their wide range of innovative health plans. Star Health Insurance being a pioneer in the health insurance domain, launched the very first health plan for HIV / AIDS patient. Apart from this, the company has a product that cater specifically to diabetics. Max Bupa also launched a policy which covers upto 13 extended family members under one plan.

The total premiums garnered by all four PSUs and private insurers in September 2011 is Rs 4490.82 crores as against Rs 3310.53 crores in the corresponding period last year.

......EDITOR

Listing of public sector general insurance companies in the pipeline

Dear Viewers,
The government has started consultations on listing the four public sector general or non-life insurance companies – New India Assurance, United India Insurance, Oriental Insurance and National Insurance.

For the financial year 2010-2011, these 4 PSUs collectively crossed the Rs 25,000 figure in their new business premium collections. During the last financial year, these PSUs saw a decline in their net profit on account of lower investment income and also due to higher provisions and losses in motor insurance segment.

According to media reports, the finance ministry has already started internal discussions on the way forward and although it may take a while, it is not far-fetched. All companies may not get listed at the same time.
New India, which is the largest non-life insurer in India, is most likely to be the first one to get listed.

For the half year ended September 2011, New India Assurance mobilized Rs 4362.51 crore in premiums with a 20% growth over the corresponding period last year.
United India Insurance showed a jump of 28% by garnering Rs 3900.37 crore in premiums. National Insurance garnered Rs 3670.45 crore in premiums, a jump of 29% over the same period last year. Last in line is Oriental Insurance with Rs 3068. 42 crore in new business premiums, an increase of 16% over the corresponding period last year. The collective premiums by all four PSUs during April-September 2011 is 15001.76 crore with a 23% growth over the corresponding period last year.
General Insurance Business April-September 2011 and 2010
Listing of these state-owned insurers is likely to pave the way ahead for the private general insurance companies as well.
...EDITOR