Four ways - the Policy Holders will be benefited from Insurance Bill

NEWS & VIEWS ON INSURANCE BILL:
The Cabinet, headed by Prime Minister Narendra Modi, has approved incorporation of amendments suggested by a Parliamentary select panel in the Insurance Laws (Amendment) Bill, 2008 that proposes to raise the foreign investment cap in insurance companies from 26% to 49%. The Rajya Sabha is likely to take up the Bill for consideration and passage next week. Though the increase is composite, meaning, the 49% would be inclusive of all forms of foreign direct investment and foreign portfolio investments, insurers are eager that the long-awaited amendment is one step closer of getting passed and that they'll be able to get fresh investment for the sector.
"The industry was not expecting a composite hike and the foreigner partner were expecting that they will be able to increase their stake up to 49%. So, that's a slight dampener. But we are happy that the long-standing demand is finally being met, in some form," says Sanjay Tripathy, Sr. VP and Head Marketing, Product, Digital; E-Commerce, HDFC Life.
"It is almost certain that all the existing players will need to infuse substantial capital in order to grow and penetrate into uncovered areas more so health insurance players. This will also be helpful to the country where more players will come into operation thereby increasing the competition and better service," added V. Jagannathan, Chairman-cum-Managing Director, Star Health and Allied Insurance.

Apart from the increase in foreign investment cap, there are 110 clauses more in the Insurance Laws (Amendment) Bill, 2008.

Here are some amendments that benefit you as a policyholder:

1. No Claims to be rejected after 3 years: To protect the interest of the policyholders better, the period during which a policy can be repudiated on any ground, including misstatement of facts, has been confined to three years from the commencement of the policy or renewal/ revival or date of rider, whichever is later. So, no policy can be called in question on ground of misstatement after three years.
The original Bill had proposed a timeframe of five years, from the existing two year period. "As an insurer, this means, the policy acceptance stage would be even more critical for us now. Since post three years no claims can be rejected, we will have to put a few more checks and balances and stringent analytics to control fraud at the policy issuance stage," says Tripathy of HDFC Life.

2. Steep penalties to curb mis-selling: Under a new section introduced in the amendments, insurers will now be responsible for all acts and omissions of its agents, including for any violation of code of conduct and are liable to a heavy penalty of up to Rs 1 crore. The amendments also propose a fine of Rs 5 lakh has been in case agents offer kickbacks to the buyer of the policy, a common industry practice.

3. Insurers to maintain electronic records: To increase transparency, the amendments propose that the insurance company maintains a record of policies and claims in electronic mode and display the same on its website.

4. Bigger Agent force to increase penetration: Currently, the licensing of agents is done by IRDA. But going forward, appointment of agents is proposed to be done by insurance companies subject to the agents meeting the qualifications, passing of examinations etc. as specified by the authority. However, IRDA will still be empowered to take action against agents under Section 42(4) of the Insurance Act, 1938 and protect the policy-holders interests.
This provision is basically to ease the process of hiring agents and expand their network—an attempt to increase insurance penetration in the country. "Though this will help us recruit faster, because of the steep penalties we also have to ensure we recruit the right people," says Tripathy.
The definition of 'health insurance business' has also been revised to stipulate that health insurance policies would cover sickness benefits on account of domestic as well as international travel. However, it is still not clear whether this would mean all health indemnity plans will now have to cover claims on account of internationals travels or would this risk be covered separately under a different plan.

"NFGIE" - STRUCTURED MEETING WITH NEW INDIA MANAGEMENT ON 14.02.2015

14^th January, 2015.

TO ALL REGIONAL SECRETARIES

Dear Friends,

  

I take this opportunity to thank you all for the success of NFGIE in MBS Election 2015.  The result reflects the trust NFGIE enjoys amongst the NEW INDIANS. It is the fruits of the hard work of all the leaders at grass-root level throughout the year.  The result also underlines the need to undertake some measures to be taken by us to meet the future challenges lying before us.

Biennial Conference of NFGIE is also due. It is my suggestion to hold the said Conference on 14 and 15th  March 2015. The Structure Meeting for Cl-111 will be held on 14th FEB, 2015 and at that time standing Committee will finalise the venue of NFGIE Biennial Conference. It is my suggestion to hold the Meeting at New India Centre to minimize the cost.

Apart from myself and  Working President  1 delegate  each from Chennai, Karnataka ,Kanpur, Hyderabad, Ludhiana and Baroda  is required  to  attend  Structured Meeting.  Apart from these, Mr. Vijay Apte of Pune will be asked to attend the meeting since it will not involve any cost.   Since the no of Representatives in Structured Meeting is limited to 8 outstation delegates only, it is my request to all to kindly cooperate with me.   I have already written a letter to MR. P. Nayak GM (P) to increase the no. of delegates to 12.  Regional Secretaries of  Chennai, Karnataka ,Kanpur, Hyderabad, Ludhiana and Baroda are hereby requested to forward the name of the Delegate to me  and book railway   ticket  for Mumbai  immediately in the entitled class to attend the Structured Meeting on 14th Feb.

 SUJIT BAGCHI

General Secretary 
NFGIE

PAYMENT OF EX-GRATIA To ELIGIBLE EMPLOYEES IN PSGI COMPANIES

FOLLOWING IS THE MAIL CORRESPONDENCE 

From: Arvind Singhal <aksinghal55@gmail.com>
Date: Mon, Jan 19, 2015 at 8:09 PM
Subject: Re: Non-Release of Ex-gratia in lieu of Bonus.
To: Sujit Bagchi <sujitbagchi56@gmail.com>

Dear Sujit da,

It has been cleared and conveyed to the Co.s. today.

Regards,

A K Singhal
Chief Executive, GIPSA
Mob. Nos. 83350 80094 & 93503 55005

On 19 Jan 2015 15:56, "Sujit Bagchi" <sujitbagchi56@gmail.com> wrote:

Dear Singhalji, 

  

You are aware that Payment of ex-gratia  in lieu of Bonus to the eligible employess  in PSGI Companies is awaiting clearance from MOF  Govt. Of India for quiet  a considerable time.The eligible  employees are getting restive  for this unusual delay. Needless to add that Festive Season, the usual disbursement period  has passed away , it is causing much embrassement for all of us. Pl. do the needful at the earliest to get it clear  from the concerned Deptt. 

Thanking you.

 Sujit Bagchi.

 General Secretary (NFGIE)

Posting of Female employees vis-à-vis Ministry Circular.

21.01.2015

THE CHAIRMAN-CUM-MANAGING DIRECTOR

THE NEW INDIA ASSURANCE CO. LTD

87, M G ROAD, FOR,

MUMBAI  400 001

Dear sir,

Re: Posting  of  Female employees vis-à-vis Ministry Circular.

Hope you are aware of the Circular dtd 23.9.2014 issued by Ministry of Finance (Govt of India ) regarding posting of Female employees on appointment and promotion.  We wrote several letters to you  as Chairman  GIPSA in PSGI Companies for early implementation of the same. It is very unfortunate that though a CONSIDERABLE  TIME has elapsed , it seems that you are not very serious in implementing  the said Circular in the industry ,while the female employees continue to suffer.  For instance, I am citing the Case of a female employee of Bengaluru RO,  Ms. C.S Bharathi (SR No.26672) who was promoted in the current Promotion Exercise  to AO under para 13.2. and  posted to Hasan Branch , a place 200 KM away from her present place of posting Bengaluru. It is not possible  for a lady employee to commute daily  from her residence to Hasan  Branch. On receiving the  Posting Order at Hasan, she appealed   to GM(P)  for  reconsideration of place of posting and submitted papers relating to illness of her husband who  has been  suffering  from spine problem and also retina detachment. Her husband underwent spine surgery some days back.

 At that time, I  wrote  to GM(P) to reconsider the place of posting  and again on 14.1.2015 I spoke to GM (P) for his favourable action in this respect.  GM(P)   informed me that  revised recommendation  from Bengaluru  DGM  is required. Accordingly, I pursued  DGM  Bengaluru  for his sympathetic response in the matter.

    On verifying all these papers DGM Bengaluru was kind enough to  send a fresh recommendation  on Monday (19.1.15) for Ms  Bharathi  CS, at CHANNAPATNA, A PLACE 60 km AWAY FROM Bengaluru  city and possible to commute daily. 

To-day, since morning I am trying to contact Corporate HRM  to know about development in this regard, but without any result . Now, I am placing the whole matter before  you for  immediate action in this respect.  Otherwise , I will have no option but to refer the matter to concerned Ministry against the non-implementation of the said circular.

Thanking You,

Yours faithfully,

Sd/-xx xx xx

SUJIT BAGCHI

GENERAL SECRETARY

NFGIE

Year-End Special: 2015 will be year of opportunities if Insurance Bill is passed

The Insurance Laws (Amendment) Bill, which has been passed through the Ordinance route, will shape the course of the insurance industry in the next year.The year 2014 was marked by structural changes for traditional insurance products, guidelines for which were implemented from January.    Besides this, the stock market growth also bought the unit-linked insurance products (Ulips) back into focus. While this led to premium growth for some life insurers, overall industry growth remained muted, with players like Life Insurance Corporation of India (LIC) seeing a premium drop in April-September period.

Similarly, on the non-life insurance side there was a slower rate of premium growth due to the slowdown in the auto industry. With a large portion of premiums coming from the motor segment, drop in sales led to a lower growth rate in motor insurance premium and hence overall premiums.Gopal Balachandran, CFO, ICICI Lombard General Insurance, said as the headwinds to growth subside with efforts from policy-makers and an overall improvement in the macroeconomic scenario, the industry is expected to pick up pace.

The general insurance industry mirrors the prospects of corporate investment and retail growth. Any incremental momentum on these fronts will positively impact the industry growth, he added.

On the general insurance, industry players said newer avenues have opened up in areas of liability and directors and officers liability space with changes in the companies Act.

Further, both standalone health insurance companies and non-life companies are awaiting details of the Universal Health Care Plan, proposed by the Narendra Modi government.

Unviable pricing and heavy discounts to corporates were a matter of concern, especially in the group health and property space. However, Insurance Regulatory and Development Authority (Irda) came out with detailed guidelines on pricing of risk and cautioning insurers against offering unviable and cheap rates below the burning cost.

Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance, said they were hopeful and expect a resurrection of the industry given the measures taken by the regulator to correct pricing within the industry. He said this was coupled by the initiatives by the new government at the centre like smart cities, digitalisation, Make in India and financial inclusion among others.

With a better economic condition, insurers said higher rate of double digit growth can return to the industry. Non-life sector, which was growing at almost 18 per cent in FY14, slowed down to around 12 per cent in FY15 (till October 2014).

K K Mishra, MD and CEO, TataAIG General Insurance, said the industry is expected to maintain momentum and achieve better double digit growth, say 15 per cent or more, in FY16 too. This growth, he said will depend on economic and industrial growth within and beyond India.  “Health insurance and focused penetration into existing distribution remain our key growth drivers. We are eyeing healthy growth over our current base. We will keep the momentum on in motor, and will grow the sustainable segments within the overall portfolio,” said Mishra.

On the life insurance side, though the initial months of the year went into refilling of the existing products and completing the product bouquet, competition in online term pricing was also seen.

Tarun Chugh, MD and CEO, PNB MetLife, explained the new portfolio of products would offer lower commissions, higher surrender value, uniform life protection and provide more transparency.

“If the Insurance Amendment Bill comes through, the industry will be reenergised in 2015 with the infusion of capital and we can look forward to a 5-10 per cent growth rate. The investments will be done in product innovations and to increase market penetration which is currently pegged at 4 per cent of GDP (gross domestic product),” he added.

The industry is also looking forward to the digitisation initiatives of the regulator with respect to Common Service Centres (CSCs) and insurance repositories. New models of distributions, including banks as brokers and Insurance Marketing Firms are also being looked forward to.

Distribution models will be relooked, with digitisation and banks-as-brokers guidelines coming in. We will also see more investment in technology to drive customer centricity.

Deepak Mittal, MD and CEO of Edelweiss Tokio Life Insurance, said the investor sentiment will also improve further with the passage of the Bill through the ordinance route. He also added that customer on-boarding and post sales services will also see improvement in the near future.

Estimates suggest a 49 per cent foreign direct investment (FDI) cap will bring long-term capital and newer players into the industry from next year.

Chugh said at present the total capital deployed in the life insurance sector is about Rs 35,000 crore. The FDI in this (assuming 26 per cent) is close to Rs 8,700 crore. He said if the cap is raised, the sector stands to gain additional Rs 7,800 crore as FDI.

“The industry at this stage does need long-term capital for growth and expansion, which only FDI can bring in. FDI not only brings in capital and foreign exchange immediately into the economy but enables companies to invest further in managerial ability, technical knowledge, administrative organisation, and innovations in products and processes,” said Chugh.

Vibha Padalkar, ED & CFO, HDFC Life, said the overarching theme of the Bill is to empower the regulator.

Defaults by insurers will also attract heavy penalty. Padalkar said the Bill also proposes to increase the overall quantum of penalty on insurers from the current Rs 5 lakh per incident of violation to Rs1 lakh per day per incident, going up to a maximum of Rs 1 crore per incident, whichever is less in an attempt to increase insurers seriousness to any default.

She added the Amendment Act has also approved Securities Appellate Tribunal as the appellate authority for the insurance sector, which should bring in more transparency and discipline in the sector.

Demand for Ulips is also expected to take a further uptick. Since the stock market has been showing positive signs of growth, there is interest towards buying equity-linked products.

Rishi Piparaiya, director, marketing and direct sales, Aviva Life Insurance, said though it is probably a bit early to say but with the trajectory of the markets and introduction of some extremely competitive plans, we should see an uptick in the demand for Ulips in 2015.

Anuj Agarwal, MD and CEO, Bajaj Allianz Life Insurance, said till November, 55 per cent of our individual business came through Ulips. “Going forward, we expect to have an ideal mix of 50 per cent traditional products and 50 per cent Ulips.”

Alok Bansal, co-founder & CFO, Policybazaar.com, said though they do see double-digit growth for insurance sector in FY16, this will not be across the board.

The passage of the Bill will be the key, he said. “While we welcome the decision of Modi-led government to pass the insurance Bill through Ordinance, we feel that it won’t really boost investments for the existing players. The existing insurers might get into serious discussions with foreign investors, but unless government gives a clear idea on the passage of the Bill, it will continue to hold back both the parties to go ahead with the deal,” he said.

NEW YEAR GREETINGS - 2015

Meeting with GIPSA at New Delhi on 1st Jan, 2015

Dear Friends,

Just now we have received a message  from our General Secretary, NFGIE, Mr Sujit Bagchi that GIPSA has agreed to  Off-Line Examination  procedure for promotion  from Sub-staff/R.C to Assistant as earlier.  Please inform all concerned.

Thanking you and wish you a Happy New Year.

DEBASISH BANERJEE

JT. SECY. NFGIE

Cabinet Approves Insurance Bill, Rajya Sabha May Take Up Next Week

 The Cabinet approved late on Wednesday the Insurance Amendment Bill with a composite foreign investment cap of 49 per cent for presenting it in Parliament, incorporating the changes suggested by a house panel.

The Cabinet, headed by Prime Minister Narendra Modi, approved incorporation of amendments suggested by a Parliamentary select panel in the Insurance Laws (Amendment) Bill, 2008, sources said.

The Rajya Sabha is likely to take up the Bill for consideration and passage next week.

Earlier, the Select Committee in its report to the Rajya Sabha had suggested hike in composite foreign investment limit in insurance sector to 49 per cent which would include foreign direct investment (FDI) as well as portfolio investment.

At present, only 26 per cent FDI is allowed in private sector insurance companies. The hike in foreign investment limit is estimated to attract about Rs 25,000 crore of overseas funds in the sector.

"The Committee recommends that the composite cap of 49 per cent should be inclusive of all forms of foreign direct investment and foreign portfolio investments," the report said.

Congress support for the Insurance Laws (Amendment) Bill, 2008, is crucial as the ruling NDA does not have majority in the upper house.

The Bill, which has been pending since 2008, may not have a smooth ride in the Rajya Sabha with certain political parties opposing further opening of the insurance sector to foreign investment.

Parliamentary Panel Gives Recommendations on Insurance Bill

New Delhi: Paving the way for the long pending Insurance Bill to be placed in the Rajya Sabha, the Parliamentary Select Committee has given its recommendations on amendments to the Insurance Act that seek to raise foreign direct investment or FDI cap to 49 per cent.

Finance Minister Arun Jaitley said that he was hopeful that the insurance market expansion would take place once the Insurance Amendment Bill is passed by Parliament.

He was speaking at a meeting with British insurer Standard Life's chairman, Gerry Grimstone, and Kotak Group's chief, Uday Kotak.

"The Finance Minister expressed his sense of satisfaction as the Parliamentary Select Committee has given its recommendations with regard to the Insurance Amendment Bill referred to it," an official statement said.

It, however, did not spell out recommendations by the committee headed by senior BJP leader Chandan Mitra.

There was speculation that the report may contain a few dissent notes by Opposition members in the committee.

The term of the committee, set up in August, was last month extended by two more weeks till December 12 to submit its report.

The Bill proposes to raise the composite foreign investment ceiling (including FDI, FII and NRI) from 26 per cent to 49 per cent.     

The approval to hike the FDI limit from the current 26 per cent, a proposal which has been pending since 2008, is expected to attract long-term capital, besides improving the overall investment climate.

There are about two dozen private sector insurance firms both in life and non-life segment.

Once the Insurance Bill is passed, the foreign investment ceiling in pension sector too would increase to 49 per cent. 

In the Rajya Sabha, the ruling NDA does not have a majority and would require support from other parties for the passage of the legislation.

Mr Grimstone and Mr Kotak are co-chairs of the India UK Financial Partnership.

Mr Jaitely further said that insurance, banks, mutual funds and securities are among the areas of cooperation between India and the UK.

Mr Grimstone said there is great potential for foreign investment in India in various sectors including insurance, infrastructure and pension.

He further said that the UK corporate sector will play an important role in making the 'Make in India' programme a reality and success.

Earlier, the India-UK Financial Partnership was launched by the UK's Chancellor of the Exchequer and the Finance Minister of India to deepen financial services links between the two countries and to strengthen co-operation between London and Mumbai, among the world's leading financial centres.

The Partnership will focus on development of corporate bond market, mutual sharing of expertise on financial sector and market regulation, enhancing financial training and qualification and financial inclusion.

The focus will also be on cross-border provision of financial and insurance services, pensions, internationalisation of the Rupee and infrastructure funding.

The statement said, "The partnership is about deepening the links between the two countries' financial services industries."

Cabinet Clears Panel Report on Insurance Bill: Top 10 Facts

The Cabinet on Wednesday (10.12.2014) cleared a parliamentary committee's recommendations for a composite cap of 49 per cent on foreign investment in insurance in a report tabled in the Rajya Sabha.

The select committee report said that the cap on foreign investment in insurance includes foreign direct investment and foreign portfolio investments.

The select committee had in its report recommended 110 amendments to the Bill. In order to win Congress support, it had adopted 88 amendments by the Congress earlier. Support of the Congress will be critical in the Rajya Sabha where the NDA is in minority.

The Congress, however, did not dissent against the report adopted by the select committee, unlike the TMC, JDU, CPM and the Samajwadi Party, who are against increasing the FDI cap.

The government is in a rush to introduce the Bill for passing on Monday, Congress sources say the party will clarify its stance once the Bill is moved in the upper house.

Finance Minister Arun Jaitley said in his maiden Budget speech in July that the "composite cap" in the insurance sector should be increased to 49 per cent from the current level of 26 per cent, with full Indian management and control.

Here are the top 10 takeaways:

1) The Insurance Laws (Amendment) Bill aims to raise the ceiling on foreign direct investment (FDI) in insurance to 49 per cent from the current 26 per cent limit.

2) This marks a reversal from the BJP's earlier stance when it was in Opposition. It had then opposed raising the cap on FDI in insurance from 26 per cent. But last year it said it was not against raising the limit on FDI in insurance, but wanted certain caveats and conditions to "safeguard the interest of the people".

3) The 49 per cent FDI that the BJP-led NDA government proposes will be a composite cap - which means that foreign capital can flow in either as direct investment or via the portfolio route, or as a combination of both. So foreign investors can either directly buy equity from the company or can buy shares on the stock market. (How higher insurance FDI limit could benefit you)

4) The new measures will allow insurance companies to list on stock exchanges.

5) Barring public sector insurance companies, all other insurance companies will potentially benefit from a higher FDI cap.

6) To allay fears that Indian entities may lose control, the Bill provides that management must remain with Indian companies. And the approval of the Foreign Investment Promotion Board (FIPB) will be needed on any investment over 26 per cent.

7) Experts have said that a higher foreign direct investment limit in insurance could result in inflows of Rs. 40,000 crore to Rs. 60,000 crore over time, and immediate inflows of around Rs. 20,000 crore.

8) The Insurance Bill and the Sebi Bill, which aims at giving more teeth to the market regulator, were cleared by the Union Cabinet in July, days after Finance Minister Arun Jaitley made a promise to do so in his Budget speech, noting that "the insurance sector is investment starved. Several segments of insurance sector need expansion". (Cabinet approves 49% FDI in insurance)

9) The BJP had suggested 11 amendments in the Bill and had listed it in the Rajya Sabha. But the Congress had wanted these referred to a select committee.

10) Insurance was opened up to the private sector in 2000 with the Insurance Regulatory and Development Authority (IRDA) Act, 1999. From seven then, the number of companies operating in the life, non-life, and re-insurance segments has gone up to 53.

(With inputs from Reuters)

DOMICILIARY LUMP SUM PAYMENT OF MEDICAL BENEFIT

December 08, 2014

MR. P.NAYAK

GENERAL MANAGER (HRM)

THE NEW INDIA ASSURANCE CO.LTD

87, M.G.ROAD

FORT

MUMBAI – 400001

Dear Sir,

This has reference to the domiciliary lump sum  medical payment to officers and employees in New India Assurance Co. Ltd.   We draw your kind attention to the  point No. 8  of Email  dt. 1^st. July 2014 sent  by  Mr. Madhu Elayath  to all RO/ LCBO Incharges which  reads as under – “If the spouse of an Officer is working in the industry in Class III/IV cadre, and if Officer or Development Officer is covered under Medical Benefit Schemed applicable to Officers/Development Staff, such spouse is not eligible to receive lumpsum payment towards domiciliary benefit”.

I request you to kindly recollect  that we are  regularly   drawing your attention to this anomaly on various meeting  with you in the past, urging your action to remove this discrepancy. We had also  cited manual  of United India   which allows such payment.  We have also stated you that   such payment is also being released by other PSGI companies.  When both husband and wife  engaged in the same cadre  are being eligible  to receive such payment what wrong  the poor  class  III Spouse  of an Class I cadre has done by not receiving the same is hard to  comprehend. It  is very hard to find any logic or rationale behind such decision. Only your initiative is essential  to remove  such anomaly.

Your intervention in this matter is very much solicited and request your good self to instruct the concern department to settle the issue immediately.

Thanking you,

Yours faithfully,

 SD/-XXXX 

SUJIT BAGCHI

GENERAL SECRETARY

NFGIE

NEW INDIA ASSURANCE - MBS ELECTIONS-2015

NEW INDIA MUTUAL BENEFIT SOCIETY (MBS) ELECTIONS- 2015 -ON 07th JAN.,2015

NATIONAL FEDERATION OF GENERAL INSURANCE EMPLOYEES’ (NFGIE)

AND

ALL INDIA GENERAL INSURANCE SC/ST EMPLOYEES’   WELFARE ASSOCIATION (AIGISC/STEWA)

2^nd December, 2014

Dear Brothers and Sisters,

RE: ELECTION TO THE MBS TRUSTEES IN NEW INDIA (2015-2019)

We are pleased to offer our sincere thanks to you all for giving us the opportunity to manage the affairs of MBS ever since from its inception.  The election for the next term has become due and the date of election has already been notified which you must be aware.  The date of election is 7^th January, 2014.  Like PF Election it is proposed to hold elections by electronic mode (online).

This time the National Federation of General Insurance Employees (NFGIE) and All India General Insurance SC/ST Employees’ Welfare Association have decided to jointly fight in this election like previous PF Trustee Election.  The candidates nominated by the joint body indicating their Name and Serial Nos. are furnished below for your information.

NAME	SERIAL NUMBER	MARK
DINESH HARISH JADHAV	2	CLICK
SUBHASH GUNAJI  KADAM	5	CLICK
SOPAN KESHAV   PAWAR	6	CLICK

The personal details of the above named candidates are also given briefly for your consideration please.

1.      SHRI DINESH HARI JADAV (BALLOT SL. NO..2)

is Senior Assistant working in DO – 111900. Over the years  he has been very active, dedicated and loyal member of NFGIE, kept himself deeply engaged in rendering due services efficiently to all the staff members irrespectively.  By virtue of his sincere and pro-employee attitude he was elected in the post of Vice-President of NFGIE.   For the social activities in various fields he has attained much appreciation.   His personal behavior and dealings and especially the initiative released in performing the duties as a member of MBS Trustee for the last five years was praiseworthy across the country.  

2.      SHRI SUBHAS GUNAJI KADAM (BALLOT SL. NO..5)

is a Senior Assistant presently posted at Mumbai – RO-III (U/W Hub), a long time activists of NFGIE and elected as Vice-President. For his long sincere and dedicated service for the Organization once again he has been nominated for the MBS Trustee.  In promoting the cause of the employees’ welfare in general he played an active role to enhance company’s contribution for improving the span of activities of the MBS.  No word is enough to praise his performance and successfully completing the task he assumed as a worthy member of the Trustee.

3.    SHRI SOPAN KESHAV PAWAR (BALLOT SL. NO..6) aged around 42 years, young and dynamic Development Officer joined the company on 1^st November, 1999.  He is working in DO 112800, in New India Centre, 7^th Floor, Mumbai and for his able leadership in All India General Insurance SC/ST Employees Welfare Association earned praise from all concerned.  He is reputed for social activities and fellow feelings amongst the members all over the country. For the last few years he has been successfully performing the duties of General Secretary, Western Zone, All India General Insurance SC/ST Employees Welfare Association.

We fervently hope, in consideration of the worth, ability and dedicated service rendered by the nominees sponsored by the joint body with the sole object of upholding the cause of employees, you shall come forward and exercise your franchise in their favour making them victorious, at the same time shall frustrate the vested interest of the unholy alliance as was demonstrated in the last PF Election, 2014.

Since the formation of the MBS Trust, we have all along had MBS Trustees nominated by NFGIE.  We seek your valuable support to get the 3 candidates of the alliance headed by NFGIE to be elected this time also.  In fact, it is the National Federation which gave this idea of a Benefit Society long years ago which is now in its current form, MBS. We are proud to mention that other PSGI companies followed our company in this respect.  The Federation has definitely shaped the role and functioning of the MBS in all these years without any hassle.

 The MBS Trust has proposed to bring in the following benefit measures for the welfare of the employee members of the MBS. 

1.     Cost of Text Book Re-imbursement to be enhanced to Rs. 1,000/- up to Graduation level.

        2.     Opening up of new Holiday Homes to serve the needs of members.

 3.   Durable Article loan for education purpose such as Laptop, Computer, materials for engineering        and medical students to be modified. 

4.       Enhancement of Railway Fare re-imbursement to cater for Garib Rath fare.

5.       Modification of Education Grant for Children of members to include more numbers of children by reducing percentage of marks.

There has been lot of welfare measures undertaken by the MBS.  Still there are ample scopes to improve further.  Federation has been striving to improve the facilities and privileges of MBS from the inception and maintained age-old tradition.  Employee members demand towards the Joint Panel Candidates shall always be honoured which we assure.

We now request your effective support in casting votes on specified date, i.e. 7^th January, 2015 and make the Joint Panel candidates successful in the MBS Trustee Election.  We once again assure that Trustees of MBS shall remain very sincere as usual in providing service to the employee members. We take this opportunity to convey our heartiest greetings to you and your family members and wish a very HAPPY NEW YEAR 2015. 
            SUJIT BAGCHI                              DILIP PAWAR

   GENERAL SECRETARY                        CHAIRM

                  NFGIE                                    AIGISC/STEWA

  NFGIE  : ZINDABAD        AIGI SC/ST EWA :  ZINDABAD

New India Assurances advises AP government to take disaster cover

Dear Friends, 
General insurance company, New India Assurance has advised the Andhra Pradesh government to take disaster cover for losses arising from the severe catastrophe as it located in coastal region.
Disclosing this, G Srinivasan, CMD of New India Assurance said, "We have proposed the state government to cover for loss of life and personal property." 
The states bordering the coastal area are usually victims of cyclones and floods and state insurance companies are often forced to speed up the settlement by government with minimum documentations. The suggestion is made to ensure that even those who have not taken insurance would be covered if the state government takes a universal cover. The move may also be triggered by the Jammu & Kashmir High Court ruling that said that insurers should settle claims immediately before conducting surveys in J &K floods. 

Srinivasan said that insurers expect claims to be in the range of Rs 3000 crore for floods in Jammu & Kashmir and Hudhud Cyclone in Vizag. He added that they may not be many claims on account of Cyclone Nilofer which hit Gujarat since it is not too severe. 

"We have received 2800 claims valuing Rs 200 crore for floods and Rs 800 claims valuing Rs 300 crore for the cyclone," said CMD. New India Assurance will suffer a loss of Rs 50 crore each due to cyclone in Vizag and floods in J &K. "Almost 80 per cent of the claims in J & K have been paid and nearly 50 per cent of the claims in Vizag have been paid in insurer," he said declaring half yearly results. 

New India has reported a 40 per cent growth in net profit to Rs 899 crore for the first half year ending September 2014. The global premium rose 12 per cent to Rs 7728 crore and its market share improved to 16.5 per cent. The underwriting losses stood at Rs 1060 crore against Rs 915 core a year ago. 

"The company is aiming at 15 per cent growth this year. As of now retail is driving the growth but we do expect growth in engineering as we see lot of confidence coming back in the economy," Srinivasan said. 

...EDITOR

General insurers mull hiking premia for natural disasters

Dear Friends,
After the recent J&K floods and Cyclone Hudhud which battered Andhra Pradesh and Orissa coasts, taking a heavy toll on the profitability of non-life insurers, the industry plans to increase premia under the catastrophe category. 

General insurers are likely to take a hit to the tune of Rs 4,000 crore from both these calamities. Though Cyclone Nilofar weakened, they have already kept their capital reserved to settle claims in this case too, industry sources said here today. "There may be a big hit to bottom lines due to recent floods and cyclones, but there will not be a big problem if the economy picks up steam. The first half is traditionally a lean period and the actual business will start coming in the remaining period of the fiscal only," General Insurance Council secretary general R Chandrasekharan said here today. 

"We are worried about Cyclone Nilofar. I hope that it will not cause damages on the Gujarat coast," New India Assurance chairman G Srinivasan said while speaking to media on the sidelines of an insurance summit held by Asia Insurance Post in Mumbai. United India Insurance chairman Milind Kharat already hinted that his company might increase premia in certain catagories of products in the light of losses borne by the company due to floods and cyclone. 

Private non-life insurer SBI General Insurance, which reported a 22 per cent spike in premium income in H1 of the current fiscal, against the industry growth of 10 per cent, said that its topline growth may take a hit due to the two recent two catastrophes, SBI General Insurance Managing Director and Chief Executive Bhaskar J Sarma said.

.......Editor

Insurance Bill to be taken up in current Winter Session

Dear Friends,

The long pending Insurance Bill, which seeks to raise FDI cap in the sector to 49 per cent, is expected to be taken up in the forthcoming Winter Session of Parliament. "The Select Committee is looking into the Bill. We will take it up in the Winter Session," a top finance ministry official said. 

The reform, according to experts, is expected to increase the flow of foreign investment to the tune of Rs 25,000 crore into the private insurance companies. The move would help insurance firms to get much needed capital from overseas partners. There are about two dozen private sector insurance firms both in life and non-life segment. 

The Insurance Laws (Amendment) Bill, which proposes to hike the FDI limit in the insurance sector to 49 per cent, has been caught in a logjam with the Congress-led opposition insisting that it be referred to a select committee. Bowing to opposition pressure, the government had in August agreed to refer the controversial Insurance Bill to the 15-member Select Committee. 

The committee is expected to submit its report by the third week of November. In his Budget 2014-15 speech, Finance Minister Arun Jaitley had said that the insurance sector is investment starved and there is a need to increase the composite cap in the sector to 49 per cent, with full Indian management and control, through the FIPB route.......EDITOR

"MBA" marks accepted by GIPSA as Technical Qualification

Dear All,

Upon continuous efforts/follow-up by Mr. Sujit Bagchi, General Secretary, National Federation of General Insurance Employee, Mumbai (our apex body) with "GIPSA" management, at last GIPSA decided to continue to treat "MBA" marks as Technical Qualification for the current promotional exercise.  This a great boon to aspirant promotees.

Wishing all the best to promotion aspirants.

With Warm Greetings,

M. HANUMANTHA RAO              T. GOPALA KRISHNA
PRESIDENT-GICEU-AP        GENERALA SECRETARY-GICEU-AP

"" P L L I ""

Dt. 06.08.2014
To
The General Secretary/Working President
NFGIE :HO

Dear Sir,

Recently our Director-General Manager Mr.K Sanath Kumar  released administrative Instructions on Payment of Profit Linked Incentive Scheme for the year 2012-13 along with the list of eligible few  offices under respective Regional Offices.

We all are well aware of the fact that Trade Unions are demanding for Profit Linked Incentives to all the employees in the Industry irrespective of cadre and class.

Basing on Trade Unions demand the  PLLI was distributed to all employees only once earlier somewhere during the period 1991-1994 after the  Wage Revision.  Having agreed by GIC/GIPSA  instead of continuing the same on yearly when ever company showing profits, but management  stopped  the benefit by putting several conditions.

Members are demanding for PLLI to all  basing on the over all performance of the HO not on  selected operating  individual offices.  We are also suggesting that as the name itself "Lump sum Incentive" which is invariably has   to be distributed all the employees equally and an additional top-up-amount can  be given selected offices where fulfill the PLLI criteria.  Amount is not criteria but profit of  over all New India should be given to all the employees which will give moral boost up to all the employees.

Recently our HO management instructed all the Regional Office granted Rs.200/- each employee as a token of small treat on the occassion of 96th foundation day.  Every employee of this industry was happy with this but no body count about the money.

Please take up the issue suitably with HO management as well as GIPSA there is the need to make it an annual feature hereafter in the interest of the welfare of the organization.

टी. ग़ोपाला कृष्णा
T.Gopala Krishna
General Secretary