NEW DELHI: Minister for corporate affairs Salman Khurshid on Wednesday set aside fears that the regulatory row between Sebi and Irda over
market-linked insurance policies could lead to investors losing confidence.
“Investors will have confidence that at the end of the day, even if there is disagreement between regulators, one regulator will prevail (over Ulip issue). It is only a matter of time. So investors need not worry,” Mr Khurshid told reporters on the sidelines of an Assocham event on transparency and accountability. He said regulators are new institutions and there were bound to be overlaps in their functioning.
Wednesday, April 21, 2010
Sunday, April 18, 2010
CONFUSION AND HAVOC
Customers are clearly confused about purchasing ULIPs now. The SEBI regulated ULIPs are more customer friendly and transparent while IRDA regulated ULIPs are more of a insurance companies' oriented kind. Whatever decision is made regarding ULIPs , a mutually friendly soultion has to be made.
Wednesday, April 14, 2010
Every time there has been a change in the norms for Ulips — whether it is the ban on short-term plans or the reduction in charges — new customers are better placed than the old ones. It is not clear what the regulatory regime will hold in future for life companies. But if the ban on entry loads into mutual funds is any indication, Sebi appears to be keen on having lower commissions and lower first-year charges on Ulips. It is quite possible that none of the existing charge structures will change and it is also possible that the entire dispute is about regulatory turf and not about giving the customer a better deal. Even under such circumstances, a prospective buyer loses nothing by waiting.
Tuesday, April 13, 2010
DEMAT
To start with, you will have to open an account with a depository participant (DP) and get a unique client ID number. Various banks and brokers are DPs. You could choose one based on your comfort level. Once the account is open, you will have to fill up a Dematerialisation Request Form (DRF) provided by the DP and surrender the physical shares, which you want to be dematted to the DP.
The DP upon receipt of the shares and the DRF, will send an electronic request to the company’s registrar and share-transfer agent through the depository for confirmation of demat. Each such request will bear a unique transaction number. Simultaneously, the DP will give the DRF and the shares to the company’s registrar and share-transfer agent with a covering letter requesting the registrar and the agent of the company to confirm demat.
The company’s registrar and share transfer agent will verify the documents so received and after necessary verification will confirm demat to the depository. This confirmation will be passed on from the depository to the DP, which holds your account. After receiving this confirmation, the DP will credit the account with the shares so dematerialised. The DP will hold the shares in the dematerialised form thereafter on your behalf. And you will become beneficial owner of these dematerialised shares.
The DP upon receipt of the shares and the DRF, will send an electronic request to the company’s registrar and share-transfer agent through the depository for confirmation of demat. Each such request will bear a unique transaction number. Simultaneously, the DP will give the DRF and the shares to the company’s registrar and share-transfer agent with a covering letter requesting the registrar and the agent of the company to confirm demat.
The company’s registrar and share transfer agent will verify the documents so received and after necessary verification will confirm demat to the depository. This confirmation will be passed on from the depository to the DP, which holds your account. After receiving this confirmation, the DP will credit the account with the shares so dematerialised. The DP will hold the shares in the dematerialised form thereafter on your behalf. And you will become beneficial owner of these dematerialised shares.
Saturday, April 10, 2010
SEBI ISSUES
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.
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.
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.
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