GREETINGS ON ""63rd INDIAN REPUBLIC DAY""

DEAR VIEWERS,

.....EDITOR

IRDA slaps a fine of Rs 20 lakhs on Future Generali Life Insurance

DEAR READERS,

Insurance Regulatory and Development Authority (IRDA) has slapped a fine of Rs 20 lakhs on Future Generali Life Insurance for violation of norms.

According to IRDA, Future Generali permitted various unlicensed individuals to solicit and procure business through Insurance For You (Future) when the entity itself was not licensed i.e approved by the Authority as Corporate Agent.

In April, 2011, IRDA carried out an onsite inspection at the Hyderabad Branch of Future Generali to investigate business by the unlicensed – Insurance For You (Future).

In its circular, IRDA said, "The Insurer's contention that the business booked by the individual agent was inadvertently categorized under corporate agency is not acceptable. The Insurer has also not been able to explain to the satisfaction of the Authority, the reasons for signing of the Agents Confidential Report by persons other than the agent."
The authority has ordered Future Generali to pay a fine of Rs 20 lakh within 15 days from the date of receiving the order. 

....EDITOR

Oriental Insurance aims for Rs 65 billion growth in business this fiscal

DEAR READERS,

Public sector insurer, Oriental Insurance Company which touched Rs 55 billion or Rs 5,500 crore in premiums last year, is aiming to touch Rs 65 billion this fiscal.
 

R K Kaul Chairman & Managing Director, Oriental Insurance Company said that the company aims to achieve a business growth of Rs 65 billion (Rs 6,500 crore) in the current financial year 2011-12 and touch Rs 100 billion mark in the next 3 years.  "We are maintaining an annual growth rate of 16.5%. Last year, we garnered business of approximately Rs 5,500 crore (Rs 55 billion). Within the next three years we are hopeful of touching Rs 10,000 crore (Rs 100 billion) mark," he added.

 

Speaking to reporters, at an event, he stated that Oriental Insurance is particularly positive about the health insurance segment.
 

Oriental Insurance Company has insurance solutions for varied needs of individuals and has a large network of offices and employees – more than 900 offices and 15,000 employees across India.

......EDITOR

United India bags ""Tamil Nadu Government contract to provide Health Insurance ""

DEAR READERS,

United India Insurance, a public sector insurer, has bagged the Tamil Nadu Government contract to offer health insurance scheme.

According to the contract, UNITED INDIA will provide a Medical cover of Up to Rs.4 Lakh for a period of 4 years. The Health Insurance Scheme seeks o give priority to Government Hospitals and will cover 950 types of medical treatments.

The previous Government's Health Insurance Scheme - Kalaignar, provided a cover of Rs.1 Lakh covering only 642 types of medical treatments.
The new Health Insurance scheme is expected to generate premiums close to Rs.600 Crore.
 .....EDITOR

Sachin buys Rs 100 cr insurance cover for dream house

DEAR VIEWERS,

Having moved into his "dream house", Sachin Tendulkar has now secured his five-storey Bandra residence with a Rs 100 crore insurance cover, one of the biggest insurance deals by an individual.

The cricket icon has bought the insurance from a consortium of general insurers, according to industry sources.

"A consortium of general insurance companies has given an insurance cover for the cricketer's home in Bandra for a value consideration of Rs 100 crore," an official of a public sector general insurance company, who wished not to be named, said. As per the official, all the four state-run GIs along with a private insurer have provided the cover.

"Oriental Insurance Company, United India Insurance, New India Assurance and National Insurance Company are the four government-owned general insurers providing the cover along with a private insurer," the official said, adding the annual premium would be around Rs 40 lakh.

According to another insurance official, the cover has been taken in two parts. While a fire insurance policy has been obtained for Rs 75 crore, an additional cover of Rs 25 crore has been bought for household items like furniture, electronic gadgets and cricket accessories among others. The fire insurance covers losses from blaze, terror attacks, natural disasters like earthquakes, and burglary among others. The insurance covers the cost of the land, compound walls, besides electrical equipment.

The Tendulkars had moved into the sprawling 6,000 square feet villa in Bandra (West) in September from a flat that had been allotted to the maestro under sports quota.

"Everyone has a dream of owning a house. I, too, had this dream. I am happy that I was able to fulfill it," Tendulkar had said while moving into his new abode. The cricketer's residence stands on a plot that earlier housed a dilapidated bungalow, which he had bought for Rs 39 crore in 2007. It has been secured with high-walled fencing to avoid curious onlookers. CCTV cameras and sensors have also been installed. With this deal, Tendulkar has joined a select league of industrialists and filmstars who have taken such high insurance in the recent past.

---EDITOR

Mistake in filling details by an errant insurance employee causes trouble

DEAR VIEWERS,

Worli-resident, Ria Alamchandani had taken a health insurance policy from New India Assurance Company. According to standard procedures, the customer submitted her photograph along with the policy form, listing her sex as female. The medical insurance policy was issued for Rs 2 lakhs.
In May, 2009, Ria was admitted to a hospital in Marine Lines and with Acute Appendicitis and had to undergo an emergency appendix operation. The hospital authorities sent a request to the third party administrator (TPA) with the estimated cost of the operation and hospitalisation, requesting authorization for about Rs 65,000.

To the surprise of the policyholder and her family, the TPA reverted saying that the expenses could not be sanctioned as the policy listed the sex of the policyholder as male.

Ria’s father Rajan, contacted the insurance company who in turn told the TPA that it was an error and sent a fresh endorsement. Following this, the TPA contacted the hospital authorities to tell them that Rs 40,000 had been sanctioned.

The policyholder’s father moved the South Mumbai District Consumer Disputes Redressal Forum stating that the word Ms before name of the policyholder clearly suggests that she is a female. In addition to this Ria had also submitted her photograph along with the policy form.
Ria will be paid compensation of Rs 10,000 plus litigation costs of Rs 5,000. The Forum has directed the insurer New India Assurance to conduct an inquiry to find the employee whose error caused the policyholder mental agony.

.....EDITOR

Two Insurance Companies ordered to settle Motor Insurance Claims Rejected earlier

DEAR VIEWERS,

The Mumbai suburban district consumer disputes redressal forum passed a judgement ordering two insurance companies – New India Assurance and Chola MS to settle motor insurance claims of two vehicle owners, which were earlier rejected by them.

The first case involves Gunapal Shetty, who had taken a car insurance policy for his Tavera from New India Assurance Company. On June 26, 2009, the vehicle owner found his car missing from the spot where he had parked it in Chembur at night. He contacted the police authorities and filed a complaint. In February 2010, he contacted his insurance company to raise a claim. The insurer rejected his claims on the grounds that there was a breach in the conditions laid down in the policy as Shetty had given the car on hire.

Shetty approached the forum which observed that the purpose for which the vehicle was used cannot be a ground for repudiation of claims. The forum ordered New India to pay Rs 4.5 lakh plus 9% interest from the date the claim was filed which comes to Rs 80,000. In addition to this, it asked New India to pay Rs 5,000 as compensation to the policyholder.

In a separate case involving Cholamandalam MS and bike owner Kamal Bhisaniya, the insurance company had rejected the claim on grounds that there was a delay from policyholder’s end in filing the claim.

On March 5, 2006, Andheri-based Bhisaniya found his bike missing and reported it as stolen to the police department. After a week of no success in finding the bike, he contacted the insurer and filed a claim. Chola MS rejected the claim ass there was a delay in filing the claim.

The forum observed that delay in filing claim cannot be grounds for repudiation and held the company guilty of deficiency in service. It ordered Chola MS to pay Rs 35,000 plus 9% interest plus a compensation of Rs 2,000.

....EDITOR 

Employers cut down health insurance benefits due to increasing costs

DEAR VIEWERS,

The cost of health insurance coverhas gone up and employers are changing the benefits offered to employees in a bid to adapt to the situation. According to employee benefit survey conducted by Marsh India, a 20% increase in cost of health insurance is forcing employers to ask their employees to make a co-payment on policies. Co-payment means that the employee has to pay a part of the costs incurred when making a claim and the remaining part is paid by the insurance company. Around 33% organisations have applied co-pay on claims as compared to 13% last year.
The survey covered 1,800 employees in 188 organisations as well as 5 insurance companies, 5 third party administrators (TPAs) and 5 health and wellness solution providers.
The average policy premiumcost per employee has increased from Rs 6,800 in 2008-2009 to Rs 9,300 in 2011.  Over the last two years, under the group medical cover offered by companies, the average Sum Assured has come down to Rs 300,000 from Rs 500,000.
The survey reveals that over the next 3 years, more than 52% employers are likely to make changes in the benefits offered by them. Close to 90% of the employers have adopted some form of cost containment measures in their benefit plan as compared to 81% last year.

Sanjay Kedia, CEO of Marsh India said, "Companies will have to look at engaging with the employees to have a more preventive strategy and for early detection of illness to bring down cost."
"Understanding the underlying cost drivers and adopting appropriate measures such as employee engagement and wellness initiatives will result in greater long-term suitability. Some of the changes such as co-pay are aimed at having some kind of reasonable behaviour among those covered. Or else, there is a tendency to go for the most expensive room at the costliest hospital," he added. 

The survey shows that the parental coverage sponsored by organizations under group health insurance has reduced from 51% to 40%.

.....EDITOR

INSURANCE COMPANY ORDERED TO PAY ""DIABETIC POLICY HOLDER""

DEAR VIEWERS,

It is a widely known fact that hiding pre-existing ailments from the insurance company can result in rejection of claim. However, in a recent judgement passed by the South Mumbai District Consumer Disputes Redressal Forum, the insurance company was ordered to pay Rs 5.5 lakhs plus 9% interest to a diabetic policyholder.
 

The policyholder, Kanhaiyalal Ruia, had taken a mediclaim policy from United India Insurance in 1994. After the insurance company rejected his claims, he filed a complaint before the forum in October 2005. Ruia told the forum that he enjoyed good health in 2001, however his wife underwent some health complications in August 2001. His wife had to undergo hospitalisation and during this period, Ruia noticed an injury on his left toe.
 

At the time, he thought it was because of a shoe bite and because he was more concerned about the health of his wife, he took the injury lightly. The injury did not heal fully, after which he consulted a physician who found that his blood sugar levels were high. The physician attributed the high blood sugar levels to extreme mental stress and trauma and prescribed medication. Despite this, the wound did not heal and 3 months later the wound had become infected.
 

In December 2001, he was admitted to a hospital and the doctors amputated his left toe. In February 2002, he had to undergo another operation where the doctor’s had to amputate his left foot.
 

At the time of filing the medical insurance form, the doctor made an error stating that the patient suffering from diabetes since 15 years instead of 15 days.
 

To rectify this error, the doctor said, "As the complainant's foot was amputated, he thought that he was suffering from diabetes since last 15 years and accordingly he made the noting. Later on he realized that he had totally misunderstood the situation, and immediately issued a corrigendum and corrected his mistake." 

The forum observed, "There is no evidence prior to 2001, that the complainant had taken medical treatment for his diabetes."  It also said that the company's refusal to meet the claim amount "was without any basis and illegal". The insurer was ordered to pay the claim plus 9% interest plus Rs 8,000 for mental agony and harassment.

........EDITOR

HOW INDIA IS GRADUALLY BECOMING THE ""INNOVATION HUB FOR THE WEST""

DEAR VIEWERS,

Nirmalya Kumar and Phanish Puranam are Professors at the London Business School (LBS). They are also co-directors for the Aditya V. Birla India Centre at the B-school. Working together they have just written India Inside - The Emerging Challenge to The West which has been published by the Harvard Business School Press. In this interview, they speak to CD on how India is gradually becoming the innovation hub for the West. Excerpts:

What made you write this book?

Phanish: Thomas Friedman's The World is Flat made a number of good points about how India has become a destination for providing services to the rest of the world. But there is something in it that we did not agree with, which was the presumption that this was a steady state. India is good for services but the innovative work will continue to stay in the West and that's what will keep the West competitive globally. So the question we are really trying to answer in this book is, 'Can India be in innovation what it already is in services for the rest of the world?' And the answer is yes.

So where are the Indian Googles, iPads and Viagras?

Phanish: That is a wrong question to ask. The question is heavily biased towards thinking about innovation as products which are made for end consumers around the world. As I just said, that is not the only kind of innovation. So yes, I don't think there are any Googles, iPads or Viagras on the table today, but that has nothing to do with whether Indians are doing innovation that impacts the world.

Nirmalya: India can be the innovation hub for the world without doing any Googles, iPads and Viagras for the rest of their lives.

Can you elaborate on that?

Nirmalya: When multinational companies innovated earlier, the whole process was in R&D labs in the home country. Today what they do is that the break up that project into three or four sub-projects and do them in parallel. One may be done in Japan, one in Germany and one in the US. But one of the parts always comes to India. And that's why 700-750 MNCs have set up R&D labs in India.

Which companies have done this?

Phanish: GE's Jack Welch lab in Bangalore. What they are doing is a part of a very large set of projects, all of which are geared towards making, say, a new turbine jet engine. The Bangalore lab does some of the design, testing and simulation work. And the other labs around the world do other parts. All of this is integrated to make the final jet engine. That's what gets sold to a company like Boeing. Boeing as a customer will see GE's brand on it, but nowhere will it be said that it is made in India or there is an Indian component in there. But that doesn't make the Indian innovation less critical.

In fact, it makes irrelevant the question of where it was designed, because it wasn't designed in any place. The same is true for Intel. If you look at the chip development and process development teams of Intel, they are distributed around the US, Israel and increasingly, in India. In fact, the Indian centre has now overtaken the Israeli one. Again, we have the Intel Inside brand, but there is no way to tell how much of it came from Israel versus India. What we are trying to argue is that there are significant Indian contributions here which clearly are innovative and create value, but they are not seen by the end consumer.

Which are the innovations in India that you are most excited about?

Nirmalya: The GSD ( Global Software Development) model is perhaps India's biggest innovation in recent times. All the innovation that is taking place in India would not be possible if we did not have the GSD model. Indian companies have become excellent at being able to take a geographical co-located task, separate it and then put it together again.

........EDITOR

General insurance companies not to be paid ceding commission

Dear All,

Insurers have to pay back commissions they have received this fiscal year.

Indian general insurance companies will no longer be paid a commission on the portion of business they are required by the law to re-insure with the state-owned re-insurer.
The decision, on a directive from the finance ministry, risks increasing the already hefty underwriting losses of non-life insurance firms, which have to mandatorily re-insure 10% of their business with the General Insurance Corp. of India (GIC Re). In a letter to GIC Re last month, the ministry argued that general insurers didn’t need to be paid a commission, given that re-insuring a portion of their business with the state-owned firm was mandatory, said three people familiar with the development.

Following the communication, GIC Re informed the insurance firms that they wouldn’t be paid the so-called “ceding commission” any longer, said the three people, who didn’t want to be named. The decision is effective 1 April, which means the insurers have to pay back any commissions they have already received this fiscal year.
GIC Re pays the ceding commission to the primary insurer as compensation for placing the business with it. The commission covers the insurance companies’ cost of underwriting and administering the business.
“Insurance companies used to get ceding commissions of around 20% of the total business ceded, depending on their underwriting track record. But with this, we will have to even refund the commissions that we have received so far this fiscal,” said the reinsurance head with a private general insurance company who did not want to be identified. “This will increase our underwriting losses.”
India has 24 non-life insurance companies, including four in the public sector, with combined gross underwritten premiums of Rs44,126 crore in fiscal 2010-11. According to industry estimates, the domestic general insurance industry incurred underwriting losses of around Rs10,000 crore in the fiscal year ended 31 March.
Insurance firms further insure their business with reinsurance companies to spread their risk. Re-insurers, in return for being paid a premium, accept a portion of the liability assumed by the insurance firms while selling a cover. “The whole idea behind setting up of GIC Re was the creation of domestic reinsurance capacity,” said Rahul Aggarwal, CEO, Optima Insurance Brokers. “But it is not fair to deprive insurance companies of the commissions for the obligatory cession. On a macro level, since GIC Re and the four largest general insurance companies (combined market share of 60%) are government-owned, it will only mean a transfer of funds from one state-owned entity to the other.” Most Indian insurance companies cede more than the compulsory 10% to GIC Re.
“Insurance companies incur underwriting costs such as agent commissions, policy formulation and paperwork and other administrative expenses,” the general insurance company official cited above said. “Commissions are paid to compensate the insurers for this.” A GIC Re official confirmed the development. “It will benefit us. Since it is applicable from this fiscal, the commissions that have been already paid out will be refunded back to us by the companies.”
The official, who spoke on condition that he not be named, didn’t divulge a figure for the refunds it expects to receive.
Non-life insurers have taken up the issue with the General Insurance Council, the industry lobby group, said Amarnath Ananthanarayanan, chief executive officer of Bharti Axa General Insurance Company.
“The General Insurance Council will approach Irda (Insurance Regulatory and Development Authority) and seek recourse,” he said. “In absolute terms, companies with a larger book size will be hit more.”
 ......EDITOR

PROMOTIONAL RESULTS - CLASS-III TO CLASS-I - PARA 13.1. n 13.2 FOR AP STATE

DEAR ALL,

 Today evening our H.O. has declared the long awaited promotional results from Class-III cadre toClass-I cadre. The following employees' have been declared as successful candidates for the 2011 promotional exercise.

PARA-13.1

HYDERABAD REGION:

1. Mr.P. Ramesh

2. Mr. M.S.V.Ramani

3. Ms.Nivedita Reddy

4. Mr. Y.V. Ramachandra

5. Mr. K.Bhaskar

6. Mr. D. Swamy

7. Ms. T. Bhavani

8. Mr. K. Rohit Kumar

VIZAG REGION: NIL

UNDER PARA 13.2

HYDERABAD REGION: NIL

VIZAG REGION:

1. Mr. M.N. Sagar

2. Mr. N.S.S.Sudheer Babu

3. Mr. M.R.J.Nanda

4. Mr. Deva Charan

GICEU-AP EXPRESSES ITS HEARTIEST CONGRATULATIONS TO ALL THE ABOVE EMPLOYYE'S. More details are awaited.

With Warm Greetings,

M. HANUMANTHA RAO         T. GOPALA KRISHNA

                            PRESIDENT                    GENERAL SECRETARY .

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

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

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

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.

.

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.

Listing of these state-owned insurers is likely to pave the way ahead for the private general insurance companies as well.
...EDITOR

IndiaFirst Life plans prepaid health insurance card

Dear Viewers,

IndiaFirst Life Insurance, which has 30-40 per cent of its revenues coming from investment products, wants to reduce its focus on that segment.

“Given the current market conditions, business is currently low in the investment product segment. We want to focus more on other segments now, and make sure there is equal balance,” Dr P. Nandagopal (Ex-OFFICER in New India Assurance), Managing Director and CEO, IndiaFirst Life Insurance, told Business Line.

The insurer, which began operations in November 2009, saw Rs 700 crore of new business during the last fiscal. Since it began operations, the company has seen premium income of Rs 900 crore.

“This year, we hope to maintain a 30-40 per cent growth rate,” said Dr Nandagopal.

According to him, IndiaFirst Life also plans to come out with a prepaid benefit card for the health insurance segment. The prepaid card will be issued along with the policy document, said Dr Nandagopal, adding that policyholders can swipe the card at the hospital and make claims.

Distribution channels

On distribution channels, he said that the company has expanded its alternative distribution channels by entering into third-party distribution agreements with regional rural banks and agencies.

“We expect 10 per cent of our retail business to come from them by this fiscal-end,” he added.

........EDITOR

D K Mehrotra tipped to be next LIC Chairman

DEAR VIEWERS,

A high level panel headed by the Finance Secretary Mr R S Gujral is understood to have zeroed in on acting chairman Mr D K Mehrotra to head the country’s largest insurer LIC. The panel interviewed five candidates here today including Mr Mehrotra for the post of regular Chairman.

Besides Mr Mehrotra, Mr Sushobhan Sarkar, executive director, international operations, Ms D Vijayalakshmi, executive director, investment, Ms Thangam Matthew, executive director, underwriting and reinsurance and Mr D D Singh, zonal manager, south, appeared in the interview, sources said.

Department of Personnel & Training (DoPT) Secretary Ms Alka Sirohi, Financial Services Secretary Mr D K Mittal, IRDA Chairman Mr J Hari Narayan, among others, were part of the panel, sources said.

The panel will now recommend the name to the Appointments Committee of the Cabinet (ACC) for final approval. Mr Mehrotra is the only candidate who is at the managing director level, while the other candidates are executive directors.

LIC has been without a full-time chairman since May, when the then-Chairman T S Vijayan’s five-year term ended and the government did not to grant him extension despite his having about two year service tenure left.

As an interim arrangement, the Additional Secretary in the Finance Ministry, Mr Rakesh Singh, was appointed as the LIC Chairman. Subsequently, Mr D K Mehrotra, LIC Managing Director, was asked to officiate as the chairman of the country’s largest insurer.

The selection panel had met in June to take a call on finalising names for the new Chairman, but could not reach a decision, candidates did not have the required clearance of the Central Vigilance Commission (CVC).

........EDITOR