Sebi’s order asking 14 insurance companies to stop selling unit-linked insurance plans has turned into full-fledged regulatory battle withReviving lapsed insurance policy
the Insurance Regulatory and Development Authority issuing its own order directing the 14 companies to continue selling ULIPs.
“After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of Sebi are directed to note that notwithstanding the said order of the Sebi, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPs in accordance with the Insurance Act 1938” IRDA said in a late evening order on Saturday signed by chairman J Harinarayan.
This blog speaks all about updates related to Healthcare insurance industry. Tax and insurance related updates are dealt with.
Saturday, April 10, 2010
Thursday, April 8, 2010
GROWTH IN LI
The Life Insurance Council has projected 18% growth in total premium income for the life insurance industry in the financial year 2009-10.
Although final figures, released by the Insurance Regulatory Development Authority (Irda), are being compiled, Life Insurance Council secretary general SB Mathur told ET: “During 2008-09, the life insurance segment had mopped up a first premium income of Rs 88,000 crore while in 2009-10, there was an approximately 10-12% growth, which means that first premium income in the year just gone by is expected to be around Rs 1 lakh crore.”
Mr Mathur also said the industry is estimated to have garnered a total premium income of Rs 2.6 lakh crore at the end of 2009-10, against Rs 2.2 lakh crore in the previous fiscal, which means an 18% growth. Life Insurance Corporation (LIC) is expected to have earned total premium income of Rs 1.76 lakh crore in the year under review, against Rs 1.53 lakh crore in the previous financial year
Although final figures, released by the Insurance Regulatory Development Authority (Irda), are being compiled, Life Insurance Council secretary general SB Mathur told ET: “During 2008-09, the life insurance segment had mopped up a first premium income of Rs 88,000 crore while in 2009-10, there was an approximately 10-12% growth, which means that first premium income in the year just gone by is expected to be around Rs 1 lakh crore.”
Mr Mathur also said the industry is estimated to have garnered a total premium income of Rs 2.6 lakh crore at the end of 2009-10, against Rs 2.2 lakh crore in the previous fiscal, which means an 18% growth. Life Insurance Corporation (LIC) is expected to have earned total premium income of Rs 1.76 lakh crore in the year under review, against Rs 1.53 lakh crore in the previous financial year
Tuesday, April 6, 2010
ICICI LOMBARD
ICICI Lombard has emerged as the front runner for a fresh tender that SAIL has invited for its property and terror cover. The cover,
consisting of two components — mega all-risk insurance and a terrorism cover — carries a sum assured value of Rs 12,200 crore and Rs 11,600 crore, respectively.
According to an official involved in the bidding, “The original bidding procedure had to be scrapped since the L2, L3 and L4 bidders declined to offer co-insurance support as they found the L1 bid (Future Generali’s bid) abysmally low during the first round of bidding,” said the official. ICICI Lombard will now be offered 70% of the cover and SAIL has decided to invite another tender for the rest 30%.
In insurance lingo, when more than one insurer comes together to offer a cover, it is termed co-insurance. The company that offers bulk of the cover is the main insurer while others offer co-insurance. An insurance policy is termed mega cover when the sum insured at a single location exceeds Rs 2,500 crore. The SAIL cover is one such. According to the terms of the original tender, L1 was supposed to get 50% of the cover, while L2, L3 and L4 were to take 25%, 15% and 10% of the account, respectively. This means they would have received premiums in that ratio at the rate specified by the L1 and claims — if any — would have been paid by them in the same ratio. HDFC Ergo had emerged the second-lowest bidder (L2) at about Rs 7 crore followed by New India Assurance and Oriental Insurance.
consisting of two components — mega all-risk insurance and a terrorism cover — carries a sum assured value of Rs 12,200 crore and Rs 11,600 crore, respectively.
According to an official involved in the bidding, “The original bidding procedure had to be scrapped since the L2, L3 and L4 bidders declined to offer co-insurance support as they found the L1 bid (Future Generali’s bid) abysmally low during the first round of bidding,” said the official. ICICI Lombard will now be offered 70% of the cover and SAIL has decided to invite another tender for the rest 30%.
In insurance lingo, when more than one insurer comes together to offer a cover, it is termed co-insurance. The company that offers bulk of the cover is the main insurer while others offer co-insurance. An insurance policy is termed mega cover when the sum insured at a single location exceeds Rs 2,500 crore. The SAIL cover is one such. According to the terms of the original tender, L1 was supposed to get 50% of the cover, while L2, L3 and L4 were to take 25%, 15% and 10% of the account, respectively. This means they would have received premiums in that ratio at the rate specified by the L1 and claims — if any — would have been paid by them in the same ratio. HDFC Ergo had emerged the second-lowest bidder (L2) at about Rs 7 crore followed by New India Assurance and Oriental Insurance.
Sunday, April 4, 2010
RELIANCE CAP IN NEWS
Reliance Capital is in talks with Swiss Re for a proposed foray into health insurance. The discussions for a joint venture health insurance
company are understood to be taking place alongside talks for the Swiss reinsurer’s equity participation in Reliance Life Insurance.
company are understood to be taking place alongside talks for the Swiss reinsurer’s equity participation in Reliance Life Insurance.