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  • Life Insurance India - News & Updates

    • Additional Life Cover Along with Loans

      While car loans, home loans, etc. do come with flexible tenures and handsome interest rates, the capacity of paying a loan back completely depends on the status of income of the borrower, his dependents, and his existence.

      In case you, being the borrower of the loan, pass away without settling the total loan amount, the provider of the loan will have the full right to foreclose your property, and your family in turn might be rendered completely helpless. To deal with a scenario like this, a term or whole life cover will prove to be immensely beneficial. If you have invested in a comprehensive life insurance policy, your family can make use of the death or the maturity benefit (in case you survive) to repay the loan amount.

      Apart from paying the loan amount back to the provider, a life insurance policy also makes sure that there is sufficient financial coverage for the entire family after demise of the policyholder. It helps tide over any financial losses that the family may have incurred during that time period.

      31 August 2018

    • ULIPs are best-in-class as far as charges are concerned: Tarun Chugh

      Issues with Unit Linked Insurance Plans have always been a deterrent in the past for people buying life insurance, said the MD and CEO of Bajaj Allianz Life Insurance, Tarun Chugh. But he is of the opinion that the new ULIPs are highly beneficial in terms of charges.

      An online survey at the insurer’s website has revealed that the life goals of men and women in a specific age group are alike. Most people who participated in the survey did not require just protection, but also the ability to enjoy life.

      The improved transparency in ULIPs, reduction in misselling, and the ability to switch without having to pay long-term capital gains tax are positive trends in the industry. Bajaj Allianz has also observed a three-fold increase in the premium of ULIPs off late.

      30 August 2018

    • Single Premium Plans: To Buy or Not to Buy

      A recent hike in the sell of single premium policies is a major indicator that such plans have gained momentum and immense popularity amongst masses in India.

      During the period of April - June, 2018, market officials and professionals reported a growth of 54.75% y-o-y in the segment of individual single premium policies. Regular premium businesses only reported a hike of 3.84% during the same timeframe.

      Many professionals have attributed this sudden likeness for single premium plans to rising interest rates. Mentioned below are a few elements that you must take into consideration before purchasing single premium policies:

      Single premium policies are comparatively more expensive. People tend to purchase simple term plans by paying minimum premiums. It is advisable to compare the rates before investing.

      Owing to a high upfront premium, single premium policies might not be a feasible investment idea for salaried individuals. Salaried individuals are known to make better profits and gain better returns by servicing regular premium policies.

      Life insurance professionals tend to dangle the tax benefits in insurance policies, to an extent where purchasing a life insurance policy means saving on tax liabilities.

      One must invest in any financial product, be it a single premium policy, only after having read the policy documentcarefully.

      29 August 2018

    • Single Parents and Life Insurance Policies: Their Importance

      A comprehensive life insurance policy acts like the most reliable safety net in one’s life. Moreover, if you are a single parent taking care of your offspring - right from their sustenance needs to their education and marriage, owning a comprehensive life insurance policy will only make your life easier.

      However, in order to do so, you must possess adequate knowledge about the very sector of life insurance, its operations, premiums, and so on. Let us take a look at some of the most important things that single parents must be aware of before purchasing a life cover for their children:

      Understanding the math behind life insurance premiums and total coverage: While a majority of the population feels that a young couple with children has to own a life cover, only a handful feel the same way about single parents and their need to own a life insurance policy. Moreover, since a single parent has all the responsibilities (financial, house duties) on himself, it is obvious that his/her liabilities will also be increasingly higher. Therefore, a thorough analysis of one’s expenses and total liabilities must be conducted before a life insurance policy is purchased.

      How life insurance operates: If anyone is likely to be at a loss after your death, a life insurance policy in that case is a must for you. The primary objective of a life insurance policy is to provide financial protection to the family of the policyholder.

      28 August 2018

    • SBI Life Insurance Office Instituted in Vijayawada

      A new regional office (RO) was recently inaugurated by State Bank of India Life Insurance Company in Sri Hari Towers, KP Nagar, for the Andhra East region of India.

      The inauguration of the new office was carried out by MD and CEO, Mr. Sanjeev Nautiyal. Apart from Mr. Nautiyal, officials present in the ceremony were Mani Palvesan, Chief General Manager, M Anand, President, Zone II, SBI Life, Ganesh V, Regional Director, Andhra Pradesh Region, SBI Life.

      On the special event of the launch, the CEO and MD said that health adversities caused by lifestyle habits have increased at a tremendous rate over the last few years. This is the reason why awareness and perception about insurance has undergone drastic changes, wherein people do not view insurance products as mere tax saving tools anymore, but as holistic solutions to complex healthcare problems.

      27 August 2018

    • Life Insurance Bonds to be Given to Farmers in India

      One day before India celebrated its 72nd Independence, the farmers of the country received a little something from the State Government.

      In an effort to provide increased guaranteed financial protection and coverage to that population of India that is responsible for people’s sustenance all across the country, Agriculture Minister P. Srinivas Reddy has provided comprehensive life insurance bonds to more than 27 lakh farmers in the country. These bonds were distributed amongst the farmers between 6 August and 13 August.

      Furthermore, P. Srinivas Reddy also said an amount of Rs.600 crore has already been paid to the Life Insurance Corporation of India (LIC) as premiums to these life insurance bonds. For those farmers who still do not possess knowledge about the prevalent scheme, are required to consult/visit agriculture extension officers for the purpose of enrollment by 13 August 2018.

      The insurance scheme designed by the State Government is a huge step towards imparting a sense of security to the most vulnerable section of the society. Ever since the concept of insurance has undergone evolution, its penetration percentage in India has not been that high. With measures and schemes like these, it is possible for an underprivileged Indian farmer to receive benefits similar to that of a middle-class working individual.

      The farmers, however, are required to pay a bare minimum amount for paddy insurance by the end of the month of August, 2018.

      24 August 2018

    • Difference Between Traditional and Non-Traditional Policies

      Traditional participating insurance policies might not be the best bet for an investor if he/she is looking for certainty in terms of returns and proceeds.

      Traditional policies: These are the ones that have their primary investment in bonds are considered to be low-risk investment instruments. Investors of traditional life insurance policies receive a guarantee in some form, that might be partial or complete. These investors also receive a partial or complete guarantee of cash flow over the policy term.

      Further, traditional policies can either be participating or non-participating in nature. Where participating policies are concerned, they come with a certain degree of uncertainty, declared bonuses, and partial guarantee. Moneyback and endowment plans are the most common examples of traditional participating policies.

      Where traditional non-participating policies are concerned, the benefits are guaranteed at the inception and there are no declared bonuses. Participating policies are highly recommended to those who have an inclination towards bonuses, and non-participating are meant for those who want guaranteed certainties. Traditional insurance policies are highly suitable to people who have a low-risk appetite.

      Non-traditional policies like unit-linked insurance plans, on the other hand, incorporate the components of both insurance and investment. In a typical non-traditional policy (like ULIP), a portion of the premium is invested in products such as equity, debt, and money market funds. As compared to traditional life insurance policies, non-traditional policies are big on their returns, guaranteeing around 12-15% returns on equity investments, 8-9% on debt instruments.

      23 August 2018

    • Is Income a Determining Factor While Purchasing Life Insurance Policies?

      One must choose a life insurance policy after taking multiple elements into consideration. One of the most important elements is a person’s income and how much they can spend on monthly/yearly/half-yearly premiums. One also has to make sure that the sum assured one chooses is 10 times than the current expenses. This can be done through in-depth analysis of future expenses such as pending financial debts, children’s education and marriage, daily expenses, and so on.

      A few important factors are elucidated below:

      Current expenditure: The primary objective of a life insurance policy is to provide financial security to the family of the life assured in case of an unfortunate event. A sure shot way of calculating future expenses is adding all the current expenses and multiply them by 12. The expenses that one should consider herein are children’s education fees, premiums paid by family members collectively, and so on.

      Income multiplier: Multiplying one’s income with their age group is an effective way to determine the estimation of sum assured amount that one should go for. In this method, one is required to subtract their total expenditure from the net income earned, and after that simply make use of the multiplication factor.

      Other liabilities and assets: Investment in houses and properties in considered to be highly fruitful where returns are concerned. A high proportion of the Indian population take home loans, in order to purchase a house/property of their choice. Repayment of such loans is a financial liability that one must take into consideration while calculating expenses.

      22 August 2018

    • High upfront commissions in life insurance products

      An IRDAI working committee is looking at the possibility of offering level commissions for the entire tenure of a life insurance policy. This is in contrast to the high upfront commissions that are provided to distributors for some policies at the moment. This is expected to improve the persistency ratio of life insurance products and will bring down the statistics of mis-selling to a large extent.

      High upfront commissions are seen in traditional life insurance products. The commission paid for the first year is usually between 35% and 40%. It reduces in the following years as well. In the case of unit-linked insurance plans, the commission given to agents is 6-7% in the initial year. Then, it gradually reduces. It is found that ULIPs purchased offline have tough competition from online ULIPs as there is a significant difference in the cost of these policies.

      It is found that high upfront commissions and low renewal commissions encourage distributors to influence customers in purchasing new policies as opposed to staying invested through their existing policies. This, effectively, erodes the value of the entire investment itself. A level commission structure is expected to mitigate the ill-effects of the agents’ incentive and improve persistency.

      In this regard, opting for a term insurance policy for the individual’s insurance needs and a mutual fund investment for savings is the best option.

      21 August 2018

    • Life Insurance Product Regulation Moving at a Fast Pace

      A new set of product regulations is all set to embark on a journey with the life insurance industry. The Insurance Regulatory and Development Authority of India (IRDAI) has recently instituted a full-functional working group to handle matters in this regard.

      A committee had been established by IRDAI in the year 2017 to keep a strict check on the regulations revolving around life insurance. The subsequent report from this committee was submitted in December 2017. To take things forward and mull over the recommendations made by the committee, IRDAI has now set up the full-fledged working group.

      The proposed report from the committee in 2017 displayed recommendations revolving around life insurance products. The report had evidently proposed major changes in the operations of the life insurance industry which includes self-regulation efforts on the insurance provider’s end, higher surrender values, flexible investment options in insurance and loans against plans such as ULIP and endowment plans.

      In addition to this, the committee had also recommended a level playing field operating in the sector of health insurance for life insurance providers who are at par with general insurance providers and independent health insurance.

      20 August 2018

    • What Happens if the Nominee of a Life Insurance Policy is Not Defined?

      In the world of life insurance, nominee is that person who receives the death benefit (Death Benefit Sum Assured) from the insurance company in case the insured/policyholder passes away untimely. According to the general rule of thumb, whenever an individual decides to purchase a life insurance policy, he/she will be required to choose a certain beneficiary or nominee who would receive the accumulated money from the insurance provider.

      A nominee can be anybody from the family of the policyholder. Choosing a nominee usually rests on the insured person himself. The beneficiary could be his/her wife, children, some distant relative, and so on. The law, however dictates that where a nominee is a trustee, he/she is not the owner of the assets owned by the insured. In simpler terms, a nominee is like a caretaker of the assets. He/she will be required to give away the assets to the legal heir if the insured has appointed one. A legal heir is someone who is mentioned in the insured individual’s will.

      However, if the insured does not have a will, then allocation of assets is dependent on the law of succession.

      Nomination is essentially the right to receive, whereas the ownership rights are with the legal heirs, in most cases. Therefore, if an insured individual does not have a nominee for his/her policy, the assets will directly be transferred to the legal heir.

      17 August 2018

    • Factors Determining the Size of a Life Insurance Cover

      If an individual spends Rs.1 crore on a term insurance policy, and at a later stage gets married and procreates, he/she might feel that the cover is insufficient. This is because future expenses are always going to surpass the present ones. All expenditures of the future will have to be taken into consideration before one decides how much insurance to purchase.

      One of the many expenses that a policyholder needs to consider is loans and financial debts. One has to ensure that a chunk of one’s income is always saved up in order to pay off home loans, education loans, and so on.

      Following are some of the determining factors of a life insurance cover:



      Yearly income

      Household expenditure on a yearly basis

      Loans and other financial debts

      Children’s education and marriage

      Emergency needs of family members

      Assets and other liabilities

      Existing value of the life cover

      16 August 2018

    • Life insurance companies will witness moderate growth in business in the first quarter of FY19

      Life insurers are expected to witness moderate growth in the first quarter of the financial year 2018-19 due to higher base and cyclicality. The growth is expected to continue in the subsequent quarters based on high penetration potential and structural modifications. The new business premium (NBP) is based on a hike in retail growth. The monthly business figures indicate an increase in the protection products offered by businesses.

      The consolidated net revenue of Bajaj Finserv will be increasing by 27% year-on-year in Q1FY19. SBI Life Insurance is expecting 20% hike in net premium income based on single premium growth and persistency improvement for renewals. ICICI Prudential Life Insurance will be witnessing a reduction in its new business premium based on higher base the previous year. The renewal premium may remain stable with balanced persistence.

      14 August 2018

    • IDBI Federal Life stake no more on sale after the takeover of IDBI Bank

      The stakes of IDBI Federal Life Insurance which were for sale as IDBI Bank required the capital, are not on sale anymore after the takeover by Life Insurance Corp. of India (LIC). As per the terms of this acquisition, IDBI Federal LI will have to infuse Rs.13,000 crore in the IDBI Bank. Since this company will be on the block after the clearance of the Union Cabinet to collect 51% stake in IDBI Bank Ltd, there is no chance to have the IDBI Federal LI in the market in the coming days. Earlier IDBI Bank had the plan of selling its entire stake of 48% in the joint venture for around Rs.3,000 crore.

      13 August 2018

    • Mutual Funds Offering Life Covers: Are They Sustainable?

      The Union Budget 2018 has brought in a wave of new changes in the sector of finance and has provided the underprivileged with enormous options of investment and other opportunities.

      The Finance Act of 2017 established a long-term capital gains tax on equities. Therefore, amongst investors and peers, unit-linked insurance plans (ULIPs) have become a popular product that one can invest in. Several insurance experts and insurance providers for this reason have commenced pushing out this product (ULIPs) in the market in a hope that taxation will not be a matter of concern for investors.

      With respect to this, mutual fund organisations have started emailing investors saying that in case they (the investors) choose to invest via the Systematic Investment Plan (SIP), they will be eligible for a free life insurance cover. For those who do not understand the nitigrities surrounding the very concept, a free cover is what will be offered along with SIP investments one makes in mutual funds.

      However, there are multiple terms and conditions operating in this regard. On the maximum cover, a cap is placed and the investor will be required to complete a minimum tenure in order to extract benefits from the insurance cover. It has been designed in a way that the more you invest via SIP and the longer your investment is, the more benefits will you be able to extricate.

      10 August 2018

    • Life Insurance Protection Policies Expected to Drive New Premiums

      A 9% growth in single premiums have been reported by private insurers in the month of June, 2018. This percentage stood at 4% in the previous year, hence the hike has come as a huge sigh of relief. The financial year 2019 is expected to be groundbreaking for unit-linked insurance plans although the existing focus on protection businesses will continue to drive the current value of new business for large players in the market.

      Improved Growth in the Indian Economy

      The APE of the private sector had gone up by 12% on a year-on-year basis in June 2018. This in turn resulted in a 6% growth on a year-on-year basis for the first quarter of the Financial year 2019. Moderation in the capital markets along with a tremendous hike in the interest rates will most likely hinder the inflows to the financial savings of capital markets. In the sector of mutual funds, equity inflows have undergone a negative hike o Rs 10,700 crore from `13,200-13,600 crore in the preceding two months.

      Most established insurance providers are gradually balancing their portfolios and are therefore incorporating more and more traditional insurance policies under their name. Additionally, most of the large and more established businesses have their focus on the high margin protection business, which will drastically enhance the component of VNB.

      9 August 2018

    • Factors that Help Determine Life Insurance Cover

      If you are purchasing a term insurance policy that is worth Rs.1 crore, you must do so after taking into account all the expenses that will be increased in the future. For example, if, you get married after the purchase of the policy, your dependents increase in number and so do your responsibilities. Now, this cover of Rs.1 crore seems like nothing in comparison to the financial requirements you might have 10 years down the line.

      To cover the difference in your finance 10 years later, you will be required to invest in a larger cover right now. Hence, if you buy a cover of Rs.2 crore, it might be a reasonable amount and approach to secure the future of your family and yourself. India still remains to be the only country with a maximum population that is uninsured. In fact, in a country such as India, the importance of insurance policies are rarely highlighted and there is very little awareness amongst people about the same.

      Even though pure protection term insurance policies have garnered immense attention from people for their sheer feature of cost-effectiveness, the average Indian household is still susceptible to financial bankruptcy in case any unfortunate event befalls them. Insurance experts and financial gurus have always advocated the need to set an estimation one’s financial goals. This means that one must analyse the amount of cover one needs based on the lifestage requirements arising at that point of time. A person must plan in a way that the term insurance policy lasts till the retirement period of the policyholder.

      Moreover, one-time expenses such as children’s education, marriage, and so on must also be kept into consideration while purchasing a life insurance policy (irrespective of whether it is a whole life cover or a term plan).

      8 August 2018

    • Purchasing Life Insurance Policy: Choosing the Right Insurer

      In order to maximise financial returns and ensure that your family members are safe even after your demise, purchasing a life insurance policy with add-on benefits is the right approach to take. If you purchase a life insurance policy at an early stage, you will not only be able to protect your family from unforeseen costs but also pay off any existing debts.

      With the establishment of numerous life insurance policy providers in India, choosing the right one has become ever more difficult. The sure shot way of gauging a life insurer’s potential as a company is to glance through his/her claim settlement ratio. HIgher the ratio, better are the chances of the insurer being reliable and settling claims when needed the most. The insurance company must also be able to settle early claims as swiftly as possible.

      Mentioned below are a few elements that one must ponder before choosing an insurance provider:

      Early claims: The insurer must have a decent track record in this regard. More than 80% of claims must have been settled by the insurer within a period of 15 days. This means that the insurer is proactive when it comes to claim settlement.

      Lapse ratio: This component essentially helps an individual understand the trend of insurance firms such as which life insurance is currently high in demand. This ratio also helps one decipher which insurance provider to go with.

      7 August 2018

    • Future Generali India Life Insurance Launches New Applications

      With the launch of two digital initiatives Chatbot Reva and Whatsapp for Service, Future Generali Life Insurance is the first ever entity to launch an application of such huge capacity in the insurance space.

      These initiatives will primarily provide real-time solutions to the queries of people by means of natural language processing and artificial intelligence. Therefore, finding a solution to any insurance-related query will henceforth be just a click of a button away. The ‘Whatsapp for Service’ is essentially an initiative that will focus on the providing a range of multiple services to the consumers including a facility wherein they will be able to access their policies on the application. Other activities that one can accomplish on this platform are Aadhaar or PAN document verification at the time of policy renewal, receiving alerts and other important notifications, document collection, and so on.

      Robotics Enabled Virtual Assistant (REVA) is essentially like a guide that will assist policyholders in the future during their purchase of the policy, or during the policy enquiry process. REVA incorporates in its system the natural language conversion feature by means of which it is able to assist people on the portal.

      These initiatives are considered to be absolute breakthroughs in the sector of insurance.

      6 August 2018

    • Annual Premium Equivalent (APE) Growth Predicted by Life Insurers

      In June, 2018, the life insurance industry evidently reported a flat premium growth as the APE percentage stood at 4.1% on a year-on-year basis at Rs.4,733.2 crore. However, a recent data revealed contrasting facts. It displayed that the private players in the life insurance sector posted an 8.9% APE growth whereas Life Insurance Corporation of India or LIC experienced a 1.3% dip in its growth.

      In the previous year, APE growth of multiple players in the life insurance sector was in double digits. Compared to that, this year’s growth has come as an unpleasant surprise at the APE growth has significantly come to a halt. The report that revealed this statistic also stated that growth in Q1FY19 has been relatively soft, as compared to other financial years. Industry gurus and professionals hold the opinion that business operations are usually slow and stagnant during the first few months of a new financial year.

      Data from the Insurance Regulatory and Development Authority of India (IRDAI) revealed that the premiums of the first year in life insurance companies took a hike by 14.83% at Rs 16,611.57 crore against Rs 14,466.13 crore during the same period, in the preceding year.

      3 August 2018

    • Life insurance sector's collection increased by 10.78% in Q1

      The life insurance sector in India witnessed an increase in their collections by double digits in the June quarter. This premium increase in the collections is attributed to the enhanced focus of the insurance companies on the single premium products. According to the recent data released by the Insurance Regulatory and Development Authority (IRDA), the collections increased by 10.78% to Rs.33,166 crores in the first quarter of the year compared to that of the previous year. While the premiums of the Life Insurance Corporations increased by 6.20%, the collection of the overall private sector is registered to be 21.7%. HDFC Life Insurance, Tata AIA, Max Life, and Birla Sun Life are among the private life insurance companies who posted substantial growth. However as per the IRDA data, the ICICI Prudential Life with 11.63% market share grabbed the position of the largest achiever in the individual regular new premium income section.

      2 August 2018

    • Protection Life Insurance Policies Expected to Drive New Premiums

      The private sector operating in the domain of life insurance has recently reported a growth of 9% in their individual premium amounts in the month of June 2018. This percentage has seen a substantial hike from the figure reported in May 2018 (which was 4%).

      Financial gurus and experts from all over the country have been saying that Financial Year 2019 will be fruitful for Unit-Linked Plans although the focus given to protection business will remain to increase value of the new business (VNB) for large players.

      Capital market moderation and a significant increase in the interest rates is said to substantially reduce the intensity of capital inflow to capital market financial savings. Mutual funds equity inflows have been stated to be standing at Rs.10,700 crore from `13,200-13,600 crore in the preceding two months.

      1 August 2018

    • Factors to Consider While Purchasing Cancer Insurance Plan

      Despite cancer being the most dreaded illness to have ever surfaced on the face of the Earth, people continue to remain uninformed about its graveness and financially unprepared for when it materialises. Insurance providers, too have become proactive regarding the matter and have commenced offering targeted protection against cancer.

      Distributors often tend to indulge in selling only those policies that incorporate the savings element. The sensitivity amongst people to be covered against cancer (as a disease) is relatively low and hence the struggle to minimise expenditure on cancer treatments and facilities continue to skyrocket.

      On a global level, cancer as a disease is now responsible for taking the lives of one-sixth of the population of India. Even though technology has made a breakthrough in all sectors of human lives and early detection of cancer has become ever so easy, the costs of treatment incurred still remains high.

      Factors One Must Keep in Consideration:

      Exclusions: There are certain restrictions placed by insurance providers on cancer coverages. For example, the sum assured amount for early stage cancers are reduced by 20-25%. If the cancer has been detected at a later stage, the insured receives the whole sum assured amount minus the claim paid out.

      Critical Illness: A cancer-oriented policy will not cover any other critical illness whatsoever. A critical illness rider can be purchased along with a life insurance policy to cover any critical disorders mentioned at the time of purchase of the policy.

      31 July 2018

    • Reasons why People Must Purchase Life Insurance Policy

      One can never be too confident about the chronological occurrence of events in one’s life, although, one can always be prepared for the worst. This is the reason why insurance experts, gurus, and professionals advocate purchasing a life insurance policy early on in life.

      The amount of money one receives as remuneration must not be a deciding factor towards purchasing a life insurance policy. Since life is unpredictable, one cannot be aware of the contingencies that might present themselves when least expected. For example, if the sole breadwinner of a certain family passes away in an accident or is diagnosed with a fatal illness, the whole family’s security is jeopardised.

      Therefore, to elucidate the importance of life insurance, mentioned below are a few benefits of the same:

      Life insurance policies secure the family of the insured in case an unforeseen event befalls him/her. The lump sum amount (sum assured) that is made available to the family by the insurer in fact helps the family cope with the immediate financial requirements and also serve as an effective savings tool.

      In case the insured passes away with a loan (home loan, car loan etc.) that is unpaid, it is likely to put immense financial burden on the family. The sum assured amount from the life insurance policy has the potential to take care of such expenses, thereby vastly reducing the family’s financial burden.

      If the insured falls gravely sick and is compelled to quit his/her job, that will most likely create an tremendous amount of pressure on the family. More than recuperating from a loss of income, the family of the insured will have to bear the costs of treatment (of the insured) as well. A life insurance policy helps during such times.

      30 July 2018

    • Life insurance companies will witness moderate growth in business in the first quarter of FY19

      Life insurers are expected to witness moderate growth in the first quarter of the financial year 2018-19 due to higher base and cyclicality. The growth is expected to continue in the subsequent quarters based on high penetration potential and structural modifications. The new business premium (NBP) is based on a hike in retail growth. The monthly business figures indicate an increase in the protection products offered by businesses.

      The consolidated net revenue of Bajaj Finserv will be increasing by 27% year-on-year in Q1FY19. SBI Life Insurance is expecting 20% hike in net premium income based on single premium growth and persistency improvement for renewals. ICICI Prudential Life Insurance will be witnessing a reduction in its new business premium based on higher base the previous year. The renewal premium may remain stable with balanced persistence.

      27 July 2018

    • Open Offer To Be Made by LIC to IDBI Bank Shareholders

      Life Insurance Corporation of India, the insurance mammoth, is expected to not receive any relaxation from the takeover code of the Securities and Exchange Board of India, and is required to make an open offer to IDBI Bank’s shareholders. Doing so will meet the requirements set by the Securities and Exchange Board of India which requires an acquisition of over 25% in a listed company to make an open offer. The stocks of IDBI Bank increased by 9.05% and closed on the Bombay Stock Exchange at Rs.53.20 yesterday. According to a government official, an open offer will be made by LIC and it will serve the best interests of shareholders who have more than 8% shares in IDBI, adding that there will be no participation from the government in the open offer.

      26 July 2018

    • Benefits of Purchasing Life Insurance Policies

      Life insurance policies help individuals and their families in many different ways. With the rising costs of healthcare and other commodities, owning a life cover that provides multiple benefits has gained utmost importance. Out of the many investment options (stocks, bonds, etc.), life insurance is considered to be the most simple and easy to understand along with being the one that provides a guaranteed lump sum amount of money at the end of the policy term

      The reasons why one should purchase a life insurance policy are many. Some of them are mentioned below:

      A facilitator of savings: More than providing a comprehensive life cover, life insurance policies instills the habit of disciplined saving in the individual. One can easily build a decent corpus with the assistance of a life insurance policy. Such policies are easy and require minimum skills from the consumer, and the final yield is tremendous. A caterer of multiple needs of the life insured: Life insurance policies can cater to a wide range of needs depending on the phase of life that the insured is at. By carefully analysing one’s existing and future liabilities, one can easily fall back on a life cover to meet financial goals. Examples include child’s education, marriage, retirement, and so on. A flexible financial instrument: There are multiple plans that life insurance incorporates. If one does not want to purchase a whole life cover, there are term plans to choose from. Term insurance policies are relatively less expensive and do not provide a maturity benefit to the surviving policyholder. A life insurance policy is also flexible in a way that it allows the family members of the insured (by providing enough coverage) to look at other investment options, barring a life insurance policy.

      25 July 2018

    • Reasons Why One Must Purchase Life Insurance Policy

      Life insurance policies can be looked at from two angles predominantly. From the investment perspective, premiums paid towards life insurance policies are eligible for tax benefits, and from a protection perspective, it is the financial cover that comes in handy for the family of the insured after the latter has passed away. Before one invests in a life insurance policy to fulfill one’s investment needs, one needs to do so to protect one’s family.

      Therefore, to elucidate the importance of life insurance policies, mentioned below are a few reasons why one should purchase one today:

      Sum Assured: Purchasing capital assets and saving money for one’s later stages of life becomes thoroughly possible with a life insurance policy. When the life insured survives the policy term, he/she receives a guaranteed sum assured amount (maturity benefit) from the insurer which can thereby be used for further investments in instruments like fixed deposit.

      Financial Liberty: If an individual is the sole breadwinner of a family, purchasing a life insurance becomes utterly necessary for him/her. This is because in case of the insured individual’s sudden death, his/her family will be rendered helpless financially. During such times, a life insurance policy’s death benefit (provided by the insurer) helps the family overcome some of the financial problems, thereby rendering their lives easy and hassle-free.

      24 July 2018

    • LIC Housing Finance to introduce loans with term cover

      LIC Housing Finance is planning to launch a new home loan product soon. The significance of this product is that the product will come with a low cost term insurance along with it. The company is planning to make its home loan product stand out by naming a competitive price for this term cover. The term insurance will also help in offering added security to the company. The company is also planning to offer both existing and new regular home loan borrowers an option to take part in a group protection policy. The difference here is that the bundled product does not have any additional premium that will have to be paid by the borrowers. The home loans at LIC Housing Finance starts at 8.35% and they are planning to increase their market reach by differentiating their product from the rest of the options available in the market.

      23 July 2018

    • Life Insurance Business Could Be Spun Off by Postal Department

      The Jan Dhan Yojana – the Centre’s flagship for financial inclusion, has seen the postal department make plans to improve its life insurance products. Manoj Sinha, the Minister of State for Communication, revealed that there are 2 really good products that can be availed for lower premiums in comparison with those offered by the Life Insurance Corporation of India. He added that however, both the products have not been utilised to their full potential. He also said that the insurance industry has massive potential, so they are now trying to make it a distinctive insurance company under the postal department. Top of the plans is to create an independent strategic business unit which they hope to complete in the coming 2 years. The Rural Postal Life Insurance scheme and the Postal Life Insurance scheme were previously available only to employees from the government sector, but the government extended it to professionals like engineers, doctors, bankers, lawyers, architects, management consultants and CAs as well as to employees of certain companies.

      20 July 2018

    • Tax Benefits Offered in a Life Cover

      Any amount of premium paid towards a life insurance policy will be eligible for a Section 80C deduction up until the limit of Rs.1.5 lakh in the course of any financial year. People sometimes assume that this benefit is applicable for LIC (Life Insurance Corporation of India) policies only. This is not an accurate fact, any policy obtained from any insurer (private or public) will be eligible for this deduction under the Income Tax Act, 1961.

      An important point to keep in mind here is that any premium whose value is more than 10% of the sum assured amount, and which was issued after 1 April 2012, will not be eligible for the Section 80C deduction. With regard to insurance policies that were issued before 1 April 2012, the limit is fixed at 20% of the total sum assured amount.

      The maturity amount that is received by the policyholder at the end of the policy term is completely exempted from tax as per Section 10(10D) of the Income Tax Act, 1961.

      19 July 2018

    • IDBI Managing Director Likely to Receive 5 Year Term After LIC Deal

      Life Insurance Corporation of India is all set to obtain a majority stake in the state-run lender. Having said that, Managing Director of IDBI Bank, B Sriram is believed to receive a 5-year term under LIC.

      LIC is believed to be in contact with B Sriram for his sheer experience and knowledge in the sector of finance and banking. Sriram will remain at helm, however, LIC may induct other board members if it deems suitable. Before joining IDBI bank as an MD, B Sriram headed the State Bank of India as their Director.

      With privatisation of IDBI bank, Sriram’s tenure will henceforth be eligible for an extension. B Sriram assumed office in IDBI after CEO and MD, MK Jain became the deputy governor of the Reserve Bank of India.

      18 July 2018

    • LIC-IDBI Agreement: How Insurers Invest

      IDBI Bank, which is a state-owned lender, has been facing troubled times off late, but the Life Insurance Corporation of India has offered to bail the bank out, leaving a number of people across the country with raised eyebrows. Some of the industry experts have said that it was against the interest of the insurer’s policyholders. The Insurance Regulatory and Development Authority of India approved of the company holding a majority stake in an entity, thereby effectively waiving off the regulatory limit which was earlier set at 15%. This move has also been the subject of widespread criticism. Companies that have a corpus of less than Rs.50,000 crore can purchased no more than 10%, while companies with a corpus of between Rs.50,000 crore and Rs.2.5 lakh crore are limited to purchasing 12%, and those with a corpus in excess of Rs.2.5 lakh crore have the approval to buy stakes of up to 15%. LIC has received the approval to raise stake in excess of 15%.

      17 July 2018

    • Investing for Retirement and Securing Children’s Future

      In majority of cases, purchasing life insurance policies for children is not a recommendable approach to take, mostly because young children are dependents and will most likely remain so for an extended period of time. Since children do not make salaries, investing in a life insurance policy solely for them might not be the best choice.

      Life insurance premium rates usually increase with a person’s age. This is because the risk factor is accentuated and a person is more likely to contract diseases and fall ill in their old age as compared to a younger age. However, the chances of your children getting priced out of a life insurance policy deal are quite slim.

      In case you want to invest in a comprehensive insurance policy while knowing that your dependents are protected, term insurance policy is the route to take. Additionally, you should also contemplate investing in a health insurance policy for covering emergency medical situations. It is not a good idea to depend wholly on an employee cover as they might be lacking in multiple benefits that you can make use of. Another way of insuring your child’s future is having an emergency kitty and filling it at regular intervals. You may either choose a savings bank account, an FD, or small-time savings scheme.

      In conclusion, if you want to secure your future after retirement and also leave behind savings for your children, you will need to evaluate each of your financial goal. Investing in debt and equity mutual funds might help you attain your short-term goals, however, you will need a comprehensive life insurance policy to cover your dependents after your demise.

      16 July 2018

    • LIC-IDBI Agreement: How Insurers Invest

      IDBI Bank, which is a state-owned lender, has been facing troubled times off late, but the Life Insurance Corporation of India has offered to bail the bank out, leaving a number of people across the country with raised eyebrows. Some of the industry experts have said that it was against the interest of the insurer’s policyholders. The Insurance Regulatory and Development Authority of India approved of the company holding a majority stake in an entity, thereby effectively waiving off the regulatory limit which was earlier set at 15%. This move has also been the subject of widespread criticism. Companies that have a corpus of less than Rs.50,000 crore can purchased no more than 10%, while companies with a corpus of between Rs.50,000 crore and Rs.2.5 lakh crore are limited to purchasing 12%, and those with a corpus in excess of Rs.2.5 lakh crore have the approval to buy stakes of up to 15%. LIC has received the approval to raise stake in excess of 15%.

      13 July 2018

    • Investment Products to Create Wealth in the Future: ICICI Prudential Life Insurance

      Factors such as global trade wars and other macroeconomic elements have had a serious impact on the market as a whole. However, despite the status quo, executive director of ICICI Prudential Life Insurance, Sandeep Batra believes in the potential of investment products and their sheer ability of generating tremendous wealth in the future.

      Highlighting grave issues like inflation, Sandeep Batra further said that even though the economical growth predicted for the future might not be entirely stable, India’s nominal 10% growth creates huge scopes of generating wealth and curbs the issue of inflation massively.

      For this vision to materialise, however, investors in India will be required to instill the component of financial discipline at their fundamental core. Investing in a property or house might seem like a gainful step, as it (the property) remains untouched while still generating money for the borrower, in most cases. Market linked and equity products might experience some fluctuations in the future, however the overall gain will remain unhampered.

      When talking about ‘savings-cum-insurance products’, Sandeep Batra regards ULIPs to be highly profitable as their benefits are relatively more transparent and charges involved are minimal.

      12 July 2018

    • New Rules Command Commission Payment Among Insurance Agents

      With removal of Section 44, the old rules surrounding commission payments have undergone a drastic change. According to the new rules, if the agent has not been rendering his/her services to the policyholder, then commissions are not provided either.

      Renewal commissions typically are paid to the agents when they offer some services to the customers. They act like remuneration for the agents. Therefore, if an agent is not serving the customer anymore, providing them with a renewal commission will not make any sense.

      Even though the rule of providing commission to dead or non-servicing agents has not been done away with completely, the insurance sector has started taking the quantum of business brought in by every agent into consideration before handing out commission money.

      11 July 2018

    • IndiaFirst Life Insurance Company Welcomes New CEO, Rushabh Gandhi

      IndiaFirst Life Insurance Company recently appointed Mr. Rushabh Gandhi as the new Deputy Chief Executive Officer effective. Mr. Gandhi took office on 1 July 2018.

      Mr. Gandhi has played a crucial role in the history of IndiaFirst. From the 20th rank, he has successfully elevated IndiaFirst to rank 13. Owing to his efforts, IndiaFirst in today’s date is the most widely popular insurance provider in India.

      On top of that, IndiaFirst’s retail APE has also undergone a major financial hike from 160 crore to Rs 575 crore in 2017-18, showing a 53% CAGR.

      10 July 2018

    • Bonus Accrued from Participating Life Insurance Policies

      The concept of a bonus is highly rewarding as it is an amount that is provided over and above the amount that a person is entitled to (at a job). Employers usually incentivise activities in offices by handing out bonus money to the good performers. Monetary gain usually instills a feeling of confidence in the individual and motivates them to work harder.

      In the world of insurance, the concept of bonus operates in the same manner. Bonus is that portion of money that is made available to policyholders over and above the assured amount. However, this bonus is provided only after the insurer has analysed the needs of the potential purchaser. Upon completion of the analysis, the bonus amount is provided. Insurance companies these days have become super proactive and have started recommending participating insurance policies to potential purchasers because of their bonus feature.

      Participating policies are the ones which extract a portion from the corporation’s profits. These policies are entitled to the profits earned by the corporation. For such plans, bonuses are offered on a yearly basis by insurance companies. These profits are either provided as a cash payout at the rate that has been declared initially, or they come as reversionary bonuses that get attached to the policy and increase in value every year. The lumpsum bonus is thereafter provided when the policy matures or if the policyholder passes away during the policy term. In case an insurance policy has been surrendered by a policyholder, only the discounted value of the accumulated bonus amount is handed to the individual.

      Participating insurance policies offering bonuses are meant for those investors who want a sense of security for the future and for moderate risk consumers. These policies provide a guaranteed upside in the form of bonuses and this extra income can act like a boon for many policyholders.

      The types of reversionary bonuses offered alongside participating policies are simple reversionary bonus (SRB), compounded reversionary bonus (CRB), terminal bonus, and interim bonus. Each of these have different features and each are paid out during different times.

      9 July 2018

    • Paytm Expected to Offer Life Insurance Policies to Partner Stores

      In a bid to promote all things digital, Paytm has recently announced that it will provide life insurance policies to offline partner stores (that are eligible for the same). The insurance policies will also be extended to the staff members of these partner stores.

      However, it is important to note that Paytm’s initiative Paytm Life Insurance Corporation Ltd will not be the one selling the insurance policies to potential customers. Whereas, an existing player from the insurance sector and market will be the one responsible for selling the life insurance covers.

      The COO of Paytm, Kiran Vasireddy firmly believes in the scope that digitisation holds. He believes that the responsibility of promoting the idea of digital economy falls on Paytm. The offline partner stores are basically assisting Paytm by spreading awareness amongst the masses about the importance of paying digitally without worrying about cash.

      Regarding this measure as one of the most important steps towards promoting digitisation, Paytm COO also said that cashless insurance will not only provide the much-needed financial security to staff members and their families but also promote the importance of going cashless, even while buying an insurance policy.

      6 July 2018

    • Taxation of Life Insurance Money

      The nominee of a policyholder is not taxed in case of the policyholder’s demise. The proceeds will be sent to the nominee upon the death of the insured. However, if the policy falls under the category of Keyman policy, the proceeds will be subject to tax. Life insurance policies that are availed between the 1st of April 2003 and the 31st of March 2012, tax will be charged in case the premiums applicable to the policy are more than 20% of the sum assured. The tax rate applicable will be marginal. Life insurance policies availed after the 1st of April 2012 will attract tax if the premium payments applicable to the policy are more than 10% of the sum assured.

      5 July 2018

    • Government’s Newly Launched Insurance Scheme Expected to Create Job Opportunities

      With the launch of Ayushman Bharat mission, India is expected to create over one lakh job opportunities for people all over the country.

      The sector of private hospitals and their corresponding expansion is expected to empower people the most. Under Ayushman Bharat, it is expected that the Government will empanel more than 25,000 hospitals in order to meet the healthcare needs of the society comprehensively. It has been assumed that if 300 new private hospitals are opened under the scheme and approximately 200 employees are hired at each of these hospitals, then 60,000 additional jobs are created inadvertently.

      Moreover, unskilled and semi-skilled job opportunities will also increase with the launch of Ayushman Bharat. It is estimated that the scheme will most probably help empower more than 80 lakh unskilled and semi-skilled workers and push them towards job opportunities such as construction of hospital buildings, expansion of existing properties, and so on.

      On top of that, the established workforce will also be required to intimate people about the policies under Ayushman Bharat mission. The Government is also expected to hire more than two lakh individuals on a temporary basis.

      4 July 2018

    • Reasons to Invest in Life Insurance Policy Early On in Life

      The benefit of protection is a prerequisite of any life insurance policy, however, they (life insurance policies) are considered investable for a range of other reasons as well. Their saving component and being able to help in situations of debt are a few examples of the many services life insurance policies offer. These days, however, people’s attention has shifted from the protection component to the tax saving component of life insurance policies. Therefore, mentioned below are a few points why people must look at life insurance policies as an essential for protection:

      Life insurance policies offer vast financial security that has remained unmatched by any other policy in the sector. Investing in a comprehensive life insurance policy guarantees the safety of an individual, and in case of untimely death of the individual, the policy hands out a death benefit in lump sum amount to the family members of the policyholder. Term insurance policies, however, are pure protection plans and cover only the insurance part with no maturity benefit at the end of the policy term.

      If an individual has purchased a life insurance policy, he/she will be able to make a deduction claim up to the amount of Rs.1.5 lakh under regulations provided by Section 80C of the Income Tax Act, 1961.

      Life insurance policies like unit-linked plans or ULIPs are highly comprehensive in nature. They not only offer protection to the insured but also help in building a substantial corpus to fulfill future needs (post retirement requirements). The policyholder also has the freedom to avail a loan against the policy wherein the sum assured acts like security.

      Life insurance policies usually provide a cushion for the finances of a family. Sole breadwinners must purchase a life insurance policy for they offer valuable protection to the family in case of untimely demises.

      3 July 2018

    • How to choose a life insurance plan for yourself

      With multiple insurance products like term plans, unit-linked insurance plans, endowment plans, money back plans, etc. available in the market it often becomes difficult for the customers to choose the right one. Ideally, you should buy a life insurance policy based on your insurance investment purpose. If you are an individual having no dependents you needn't invest in a life insurance policy at all. Contrarily, if you are someone having a family comprising of parents, spouse, and children then buying a life insurance policy is a must for you to secure the future of your dependents. It will be wise to buy a term plan as such plans offer a higher amount of assured sum at lower premium rates. However, the term plan should ideally have a high claim settlement ratio of more than 90% with the lowest premium. In short, whatever policy you choose, be very clear about your insurance goals and based on that take the decision.

      2 July 2018

    • Implication of Credit History on Life Insurance

      Credit history plays a vital role in determining multiple things with respect to finance. Whether a person will be able to repay a loan or how they handle credits are strong determinants of obtaining life insurance policies.

      Most insurance providers look at credit scores of potential policy buyers to check whether or not they are in a position to repay the loan back. Information that are also looked at are medical history, how you have driven your vehicle, records of your education, and so on.

      In order to foster risk management, insurance companies often make use of advanced software technology. Greater the data, more will be the accuracy and hence less energy will have to be put in medical examinations before obtaining life insurance policies.

      29 June 2018

    • Mergers and Acquisitions Complicate Affairs in Insurance

      Max Life Insurance recently withdrew from the race to the acquisition of Federal Life Insurance owing to factors like complications in the mergers and acquisitions procedures.

      According to multiple industry experts and professionals, M&A deals are often put on hold or are scraped off altogether, due to factors concerning valuations. According to the Insurance Laws (Amendment) Act, any given insurance company has to be valued at a fair amount. This includes their financial assets and factors such as value of new assets and liabilities of the policyholder.

      When an insurance company is valued, the collection of future premiums is also a matter of consideration, especially for the sector of insurance. However, factors like renewal rate often lead to scraping off of merger deals.

      28 June 2018

    • Life Insurance Policies for Workers Approved by NEMA

      National Emergency Management Agency or NEMA recently approved a group life insurance policy for its workers. This has ushered in a new era of policy for the staff members of NEMA

      Furthermore, NEMA has also planned to establish a new condition of service for its staff members and also plans to institute a committee to introduce pertinent recommendations. This resulted in a sort of dispute created by the workers of NEMA as they felt that the new law does not conform to the existing labor norms.

      Additionally, NEMA officials also commented that every necessary action to ensure the welfare of the staff members will be taken.

      27 June 2018

    • Life Insurance Policies: Family Protection and Beyond

      The economic/financial impact that befalls a family if their sole breadwinner passes away suddenly is great. Where the loss incurred emotionally is intangible and incomparable, there are many ways to ensure that the financial gap created due to the misfortune is balanced to a certain extent.

      One of the ways to ensure that the gap is less is by the means of purchasing life insurance policies for family members, from parents, spouse, children, to grandchildren, grandparents, and more. These days, life insurance in the contemporary world has established an unilateral meaning. People either take their surroundings casually or invest in a life insurance policy only for tax saving purposes. Protection for the family must always be the primary reason for investing in an all-inclusive life insurance policy.

      However, there are multiple factors that are taken into consideration before an insurance provider offers a life insurance policy to a certain individual. Some of these factors are lifestyle, age, existing status of health, and so on. Of all these factors, health and age are the most important ones. This is because as an individual grows old, he/she becomes more and more susceptible to diseases and illnesses and thereby requires more medical attention. Spending lump sum amount of money on medical costs is surely not the ideal thing to do. This is where protection offered by life insurance and health insurance policies come in handy.

      Another crucial thing one must take into consideration before investing is how much is just enough. This will be based on the discretion and the needs of the policyholder and his/her family.

      26 June 2018

    • Importance of Life Insurance for Kids

      Purchasing life insurance policies for children, especially newborns, might not seem like a very important task to accomplish as children are dependent wholly on their parents/family members for support. Yet, investing in a life insurance policy for kids is utterly important as it offers protection during unexpected medical emergencies.

      Mentioned below are a few reasons why you should invest in a life insurance policy for your child immediately after he/she is born.

      Life insurance policies protect people from the burden of spending money from their own pockets by offering coverages. Moreover, if you have a policy, you can allow yourself to be relatively peaceful and less stressed during a contingency.Parents can save a substantial portion of money on college funds as a whole life policy acts as a cash-value element.It ensures that kids have insurability in some form. Investing in a term life insurance policy is usually advisable for children.

      25 June 2018

    • Life Insurance market in India to be led by term protection plans and ULIPs

      Increasing financialisation, favourable demographics, and a large protection gap are causing a structural growth in the Indian life insurance segment but it has also been a roller-coaster ride for the industry. Disproportion in pricing and a high penalty for policyholders surrendering non-linked savings is causing a dent in the profitability of the life insurance sector which has a penetration of more than 50% in India. High penalty surrender charges in non-linked savings is a growing concern among the policyholders and many are hence, resorting to unit-linked insurance plans (ULIPs) which have no surrender charges after 5 years. Term protection plans also offer a better proposition to investors than traditional modes of savings.

      22 June 2018

    • Life Insurance penetration in India can be boosted through simplification and digitisation

      Compared to the 3.47% global penetration of life insurance coverage, India has a penetration coverage of only 2.72%. Besides the Western countries, when it comes to the Asian countries, India again has a lower insurance penetration in comparison to Taiwan, Thailand, Malaysia, and Hong Kong. Insurance penetration is the ratio of total premiums submitted in a specific year against the Gross Domestic Product (GDP) of the country. As per the experts, by making the life insurance policies simpler and digitalised, the penetration level of life insurance policies in India can be increased significantly. If the insurance policies are simple in nature, the potential customers can easily understand the policies without making repetitive queries.

      The most vital reason contributing to the low penetration rate in India is that when people find difficulty in understanding the insurance product, they simply tend to ignore the product and skip buying it. Moreover, instead of buying the life insurance policies directly from the fund house, people prefer to buy them online. However, when it comes to increasing the level of penetration of life insurance in the country, India still has a long way to go.

      21 June 2018

    • Role of Aegon Life Insurance CPO expanded

      Mumbai based insurance provider Aegon Life Insurance has recently announced the expansion of the role of its current Chief People Officer, Saba Adil. While she will continue to serve as Aegon’s Chief People Officer, she will also be handling additional responsibilities as the Chief Operating Officer of the company. She is offered the new position with effect from May 2018. Under this new role, she will be handling the responsibility of creating a superior and distinguished customer experience. However, she will continue reporting to the MD and CEO as before.

      Saba has started her journey with Aegon as one of their founding members in 2007. She has an overall experience of more than 18 years in multiple roles which include project management, human resource, and customer operations. According to Vineet Arora, the MD, and CEO of Aegon Life Insurance, she has been an active member since the inception of Aegon and has played a very powerful role in taking the company towards growth. During her tenure with Aegon Life Insurance, Saba has designed and introduced an insightful business strategy while also leading a customer-driven innovation project. She is expected to make many more significant contributions to the growth of the company.

      20 June 2018

    • Dream Builder Plan Launched by IDBI Federal Life Insurance

      Considered to be a revolutionary in the field of insurance, IDBI Federal Life Insurance recently instituted its newest insurance policy known as the ‘Dream Builder Plan’. The scheme is essentially non-linked, non-participating in nature and will henceforth give out Guaranteed Annual Payouts which is a portion of the Sum Assured amount made available during maturity of the policy. This portion will be offered during the concluding three years of the policy term.

      The most striking feature of the Dream Builder Plan is that the policyholder can choose his/her Maturity Sum Assured (MSA) amount.

      19 June 2018

    • Life Insurance Premiums and Costs: Ways to Save Money

      Even though life insurance policies have attained importance and have managed to grasp the attention of thousands of people in India, the concept remains to be distorted as people continue to hesitate investing, owing to the factor of high costs. Life insurance policies play a vital role in providing financial support to families of policyholders during unfortunate events. Moreover, premiums paid towards life insurance policies attract huge tax benefits.

      Mentioned below are a few tips in which people can save chunks of money, while still being able to invest in life insurance policies:

      Invest in a life insurance policy as early on in life as possible.

      While investing, keep in mind that premiums for term policies are relatively lower than whole life policies. Analyse your need then make the investment.

      Purchase only after you have completely understood your needs. Extra covers will mean paying extra premiums.

      Scan the market carefully before deciding which insurer to go with.

      Enhance your physical as well as mental health.

      Ensure that your premiums are paid well on time.

      Keep in consideration the final expense insurance.

      18 June 2018

    • Efficient Ways to Reduce Premium Amount of Life Insurance Policies

      Not only is a life insurance policy a reliable backup plan, but it also serves the purpose of securing one’s future. India alone houses around 360 million insurance plans (life, health, car, and so on) in today’s date.

      Where a life insurance policy can act as a financial support for the future, staying in tandem with the premiums might get difficult for a handful of people. A study conducted recently revealed that savings in India is likely to take a major hike of 35%, which is an improved figure as compared to 26% in 2010.

      However, the only way to make more money is by saving whatever you can. Therefore, the below-mentioned points will give you an idea as to how you can reduce your premium amount to a bare minimum:

      Invest in an insurance policy early on in life

      Choose a policy period best suited to your needs

      Invest in the sector of health insurance as medical emergencies are unpredictable

      Invest in insurance policies online to save time and for additional benefits

      Pay your premiums on time

      Smart investing goes a long way in ensuring that you do not spend extra money.

      15 June 2018

    • Telangana government launches Rs.5 lakh free life insurance scheme for farmers

      On 4 June 2018, the Telangana State Government signed a MoU (Memorandum of Understanding) with the Life Insurance Corporation of India for the implementation of the free life insurance scheme launched for the state farmers. Under this insurance scheme, 58 lakh of farmers within the age group of 18 to 60 years will get a lifetime life insurance cover at a premium of Rs.2, 271 which will be paid by the government. As per the terms of this scheme, regardless of the cause of death, the family of the affected farmer will get Rs.5 lakh compensation within 10 days of claim submission. However, it is mandatory for the farmers to appoint a nominee while availing this scheme.

      While signing the MoU on Monday, Chief Minister, K.Chandrasekhar Rao called this initiative to be the best thing done by him in his entire life. He also stated that the state governments' focus from now on will be to make agriculture financially feasible for the farmers. For the fast implementation of the scheme, he has provided a set of directions to the agricultural officers and instructed them to take the full responsibility of its quick execution. The government will start distributing the insurance bonds among the farmers from 15 August 2018.

      14 June 2018

    • Things to Consider Before Investing in Life Insurance Policies

      While buying a health insurance policy, the important things that one must keep in his/her consideration are waiting periods, network hospitals, riders available, add-ons, and so on. Buying a life insurance policy, on the other hand, demands a completely different set of things to consider.

      Life insurance policy: The sandwich generation - people who take care of children or provide for the senior citizens of their family are the ones who need life insurance policies the most. Life insurance plans provide a total sum assured to the policyholder’s family in case of his/her sudden demise. The general thumb rule while buying a life insurance policy is to make the purchase early on in life. Therefore, a life insurance policy which has 10-15 times more worth than your current salary is a safe route to take.

      13 June 2018

    • HDFC Life Insurance unveiled its advanced chatbot, Elle

      HDFC Life Insurance has recently introduced its chatbot Elle which is a path-breaking innovation in the domain of Artificial Intelligence (AI). A chatbot is an advanced software developed to conduct conversations with people on various web portals without any kind of human intervention. With a similar purpose, the chatbot Elle is designed to carry one-to-one discussions with the stakeholders of the company and handle all their queries and requirements.

      By making use of natural language processing and artificial intelligence, this smart website Chat Bot will address all the specific needs and requests of the policyholders of HDFC Life Insurance. Elle is capable of answering the queries and confusions of the customers related to the policy details, handling premium receipt requests and several other statement-related inquiries. With the launch of this innovative tool, HDFC Life Insurance has now moved one step forward in serving its customers.

      12 June 2018

    • Best online life insurance policies in India

      Life insurance is one of the most optimum ways in which one can protect their family. It safeguards the family members in the event of the life assured’s untimely demise. The policy provides a sum assured to the beneficiary of the policyholder at the time of his/her disability/death. Some of the most popular online life insurance schemes in India are listed below:

      Tata AIA Life Insurance iRaksha TROP Plan - This is an online term plan with return of premium that has gained a lot of popularity in the recent past. Women get lower premium rates under this scheme.

      SBI Life eShield Plan - This is a pure term insurance policy that can be purchased online. The premium rates for this plan are relatively very low. The plan offers level cover and increasing cover options.

      Aegon Life iTerm Insurance Plan - This online life insurance plan provides policyholders life cover until the age of 100 years. There is also no upper limit on the sum assured, as the coverage can be increased based on one’s needs.

      11 June 2018

    • Buying life and health insurance policies is a must for every individual

      Even though there are a variety of insurance policies available in the market, an individual should lay the maximum focus on buying an adequate number of life and health insurance plans. While a health insurance plan is a must buy for everyone to cover themselves against the high medical costs, a life insurance policy is a tool to safeguard one’s dependents from all sorts of financial struggles in their absence. With the increase in health issues and life-threatening diseases such as cancer, heart ailments, kidney and liver diseases etc. it has become extremely important for every individual to include sufficient health and life insurance plans in their insurance portfolio. These insurance plans will not only protect you and your family from the unexpected financial crisis but will also offer you peace of mind.

      8 June 2018

    • Insurance companies change the pitch of advertising life insurance plans

      Life insurance companies have started adopting new approaches to advertise life insurance plans. It is seen that generic event insurance such as wedding insurance has not struck a chord with consumers. The fact that the word “death” was included in policy wordings made wedding insurance look like a bad omen. This product was later sold as an event cancellation policy that avoided the usage of the word “death”.

      Savings and investment goals can be met with investment in mutual funds, bank deposits, real estate purchase, etc. But the significance of life insurance lies in the fact that it offers financial protection in the event of death - this sort of coverage is not offered by any other instruments.

      The right kind of messaging is required to help consumers assess the financial consequence of a death in the family and make wise investment decisions.

      7 June 2018

    • Results from Canara HSBC Oriental Bank of Commerce Registers 51% Increase in Profits

      An announcement from Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited reported a net profit of Rs.168 crore in the financial year 2017-2018. The profit indicates a 51% increase in profits from the previous financial year.

      In the last fiscal year, the company has grown by 34% in terms of new individual business premium. The industry, on the whole, has registered a growth rate of 19%. In the past 3 years, the company has a recorded compounded annual growth rate of 36% in comparison to the overall industry growth rate of 16%.

      There has also been an increase in the company’s gross written premium from Rs.2,295 crore to Rs.2,781, indicating a 21% growth. In addition to the above, Canara HSBC Oriental Bank of Commerce has also recorded an overall settlement ratio of 97.18%, 13th-month persistency of 77.9%, and a 1% decrease in its operating expense ratio.

      The company has diversified the services it offers and has several digitally-enabled services.

      6 June 2018

    • 4 Best Life Insurance Policy Riders To Buy

      Riders are the most cost-effective options to enjoy the extreme coverage of a life insurance policy. Custom riders are a must for the policyholders to optimise the policies as per their lifestyle and individual requirements. Here are the 4 best riders to incorporate in your life insurance policy:

      Accidental permanent and partial disability- This rider insures the policyholder against permanent or partial disability caused due to accidents. If he/she is unable to lead a normal life after the accident, the insurer either gives a lump sum amount or waive off the premiums while offering the assured sum.

      Accidental death rider- This add-on offered with the term plans is a staple for individuals who are the only earning member of the family. In case of accidental deaths, the beneficiaries receive a separate rider amount, either a default amount or an amount selected by the owner, along with death benefit.

      Critical illness- It not only helps to meet the medical expenditures but also acts as an income-substitute at the time of critical illnesses. Since it covers the owner against the critical ailments mentioned in the policy it is indeed a very economical way of safeguarding oneself from diseases.

      Waiver of premium- The Waiver of Premium (WOP) rider proves to be very helpful at the time of emergencies. If the policyholder is unable to pay the annual premiums due to accidental disability or detected with a life-threatening illness, this rider will waive off the future premiums.

      5 June 2018

    • The Right Way to Buy an Insurance Policy

      The most important element to keep in consideration is the amount you want to be insured for. The ideal route to take while contemplating investing in a life insurance policy could be 10 years’ worth of what you are earning currently.

      However, this also varies with time as factors like family size, assets, etc. start playing a major role in the financial situation of the household in determining the expenditure. The easiest way to calculate this is by estimating the total budget of a family in case the sole breadwinner passes away.

      The sure shot way of wrapping your head around the concept of insurance is by keeping it separate from the idea of investments. It is important to not look at life insurance policies solely as tax saving tools, because they solve a greater purpose of protecting one’s family in case of the policyholder’s demise. Most agencies indulge in this habit because they are able to extract huge commissions but ideally, insurance policies should be gauged by the number of benefits they offer.

      4 June 2018

    • Major Life Insurance Scheme Cleared by Cabinet of Telangana

      With respect to farmers in Telangana, a huge insurance scheme has recently been launched providing each of them with a Rs.5 lakh cover. This scheme is believed to spring into action on 15 August 2018.

      Agriculture Department officials are expected to produce a list of the most eligible farmers in Telangana, present it to LIC officials and thereafter make the premium payment accordingly. The documents of the insurance policy will be forwarded to the respective farmers post 15 August 2018. The proposal for this scheme was recently approved by the State Cabinet.

      This scheme fell under the administration of LIC and it will entail a premium of upto Rs.2,271 for each individual farmer. Additionally, these premiums are believed to be paid by the State Government on behalf of the farmers who are eligible.

      1 June 2018

    • Chatbot Elle: An HDFC Life Insurance Initiative and What it Offers

      In order to better serve its customers and policyholders, HDFC Life Insurance has recently launched a chatbot on its website called Elle. A bot is nothing but a computer designed software programme that aims at assisting consumers and resolving their issues.

      Henceforth, with the assistance of Elle, an individual will be able to resolve his/her queries regarding anything, request for invoices (premium receipts), and so on. The bot’s main objective is to reduce the hassle that customers have to go through to resolve a query. It also simplifies the mechanism, hence there is minimum effort on the consumer’s end.

      Chatbot Elle is slightly different in its operations as compared to a live chat window. Where in a live chat window, you have a human being on the other end, Chatbot Elle uses artificial intelligence to sort out problems.

      31 May 2018

    • How to Decide Your Life Insurance Coverage Amount

      Choosing a life insurance policy can be a confusing especially when one is young and in the pink of health. However, life’s unpredictability should be a reason why one should consider purchasing a policy that would help secure loved ones in trying times. When unsure of the coverage amount one should choose, the following factors can help one gain a bit of clarity.

      One’s current level of income is a factor that should be considered first. Most financial advisors suggest that one’s life insurance cover should be at least 10 times more than their annual income. The next factor to consider is debt. The sum assured in this case should be enough to cover any existing debts plus a financial safety net for the beneficiaries. Age is another factor that helps determine the amount to opt for. Younger individuals can opt for term life policies while older individuals can choose a money-back policy.

      Life insurance covers provide a financial stability for family members after the death of the policyholder.

      30 May 2018

    • Why is Investing in a Life Insurance Policy the Wisest Choice?

      Apart from offering a coverage for an individual’s entire lifespan, life insurance policies also help save taxes. This is the reason why insurance companies witness a surge of policyholders at the end of each financial year.

      Postponing your investments until a later date or for the end of the FY is not considered a viable option. Additionally, viewing a life insurance policy solely for its tax saving features is also not a good approach. Hence, given below are a few reasons why life insurance deserves more credit than we generally tend to give.

      A whole life policy basically has you covered for your entire life, provided you are paying the premiums on time.

      A term insurance (as the name suggests) covers you only for a specific period of time, although, the maturity amount is given only after the demise of the policyholder.

      A money back plan gives the beneficiary the opportunity to receive maturity amount in regular intervals or periodically.

      An endowment plan essentially allows the beneficiary to obtain the maturity amount.

      An annuity plan generates a payment stream upon maturity.

      29 May 2018

    • Why Should you Invest in Life Insurance?

      Other than sectors such as banking and FMCG, investors have been observed to invest in the sector of life insurance. The concept itself dates back to the year of 1818 Kolkata (Calcutta) introduced the first ever insurance company, Oriental Life Insurance.

      Over the years, life insurance policies have undergone major changes and adaptations. In today’s date, a life insurance policy is essentially a backbone for an individual, as it not only covers them for life but offers additional benefits as well.

      Listed below are a few reasons why investing in a life insurance policy is the smartest choice one could make.

      India has an extremely low penetration of life insurance policies, which automatically makes it a sector with high growth potential.

      Even though people have started investing in life insurance policies more often, it still remains to be a sector which is grossly underinsured.

      India, as an economy, is growing at a tremendous rate which means the per capita income is also likely to surge.

      Institutional investors such as FIIs and pension funds totally adore this sector solely for the kind of visibility it provides with its policies.

      According to this year’s Union Budget ULIP and LTCG investments will henceforth be tax exempted. This, also, is a great news for the sector of life insurance.

      28 May 2018

    • Life Insurance Vs Self-Insurance

      A technique that mainly focuses on risk management, self-insurance is nothing but keeping aside a certain sum of money (known as corpus) to deal with an unexpected unforeseen event. It is basically a step towards prevention of risk by in turn devising a mechanism wherein individuals invest in multiple financial products except insurance. However, whether a self-insurance plan is safer than a life insurance is highly debatable.

      Financial advisors and professionals, on the contrary, have been reinforcing time and again that life insurance is the best guarantor of financial security and no other plan can surpass it. This statement comes after years of first-hand research and evidence collection. Therefore, stated below are a few reasons why life insurance is a considerably safer route as compared to a self-insurance plan.

      You are covered from the first day itself. It may take you years to build a corpus and while you are still at it, you may face some unfortunate event which you might not be prepared for. A life insurance policy essentially helps deal with such uncertainties.

      The stability offered by life insurance is guaranteed, whereas that might not be the case with a self-insurance plan. Self-insurance schemes are always subject to market risks and have the potential to generate losses as well. A standard life insurance policy will give you guaranteed returns along with a death benefit maturity.

      You will have access to cash at any given time. The facility to borrow money during times that you need it the most is readily available in life insurance.

      25 May 2018

    • How Much Should be Ideally Spent on a Life Insurance Policy?

      Depending on the kind of circumstances that a family has to endure, investment in a life insurance policy is advised or suggested. However, sometimes you might be confused about the amount to invest. You might think it is too much or too less. It is important to keep in consideration here that two people with the exact same incomes can lead entirely different lifestyles and will hence have different set of expenditures. Therefore, their life insurance coverages will also vary.

      Mentioned below are some of the elements that are important to assess a life insurance cover:

      1. Carefully determine all your expenses (barring income) which includes household expenditure, child care requirements, and so on.

      2. Make sure that you are not compromising your children’s future in your absence.

      3. Consider the number of loans that are in your name.

      4. Account for another expenses that might get difficult to pay for when you are not there.

      5. Keep your spouse or partner in mind for their welfare.

      24 May 2018

    • Mistakes to Look Out for While Investing in a Life Insurance Policy

      Every individual is bound to make mistakes. However, certain mistakes can be avoided, especially when it means investing in plans and policies. Therefore, to prevent you from making the same mistakes time and again, given below are a few of the most common fallacies that people often tend to go wrong with while purchasing life insurance plans.

      Not being able to properly communicate your needs: Being very precise about your needs goes a long way in ensuring that you invest in just the right plan. Seek the help of an advisor in this regard.

      Not taking into consideration every small aspect: If you fail to provide accurate information in your form, there are high chances of your claim being rejected. It is always a good idea to do this yourself instead of seeking help of a third party.

      Not cross checking details of verification: If your life insurance contract has some discrepancy or you are not satisfied with the information, you can always make a return of the policy and ask for a refund on the same.

      Not telling your family members or asking for their opinion: A policy is meant to benefit an entire family. Therefore, it might get difficult for them to understand the terms of the policy at a later stage in life.

      Not sustaining your commitment: If you discontinue, surrender, or lapse your life insurance policy halfway through, it might have grave consequences in the future.

      23 May 2018

    • Chief Minister Chandrasekhar Rao in Talks with Authorities of LIC

      The principal authorities for the departments of Agriculture and Finance has been advised by the current Chief Minister to put on hold whatever conversations they have been having with LIC professionals. These authorities have been in cahoots with LIC officials to bring into existence a scheme which includes lower premiums and such.

      Ever since the Central Government has introduced this scheme, the states have been opining that free provisions must be provided to their respective farmers. Before this insurance scheme gets its official launch, CM Rao wants the procedure to be completed.

      22 May 2018

    • Quantifying Life Insurance Policies: How Much is Just Enough?

      The kind of life insurance cover that you are opting for usually depends on two important factors. The first one being your family’s or your condition and the second one being your source of income.

      However, two people having the exact same income can have entirely different needs and therefore may end up spending their money in completely different ways. In that case, it is advisable that they opt for a policy best suited to their needs. An insurance personnel who has experience in this regard will be able to give fairly reasonable suggestions.

      Contemplation of scenarios that do not involve you is another important factor in determining which life insurance cover to invest in. For example, if you have kids, you will need help with them and will therefore incur expenses on child care. Therefore, calculate all your household expenses before deciding on a life insurance policy. You need to choose a plan that will essentially ensure that your children’s future is not affected in any way. When you already have a job, or are running your business, it might not be possible to calculate how much money your child’s education will cost. However, planning wisely and then investing in a life insurance policy goes a long way in ensuring that the next 10-15 years of your life are uncomplicated and stress free.

      Apart from your household responsibilities and childcare expenditure, there are loans that you might have taken. A good policy takes some of that burden off of you and your liabilities.

      21 May 2018

    • Factors Affecting Life Insurance Plans

      People all over the world, especially young adults, have still not grasped the core meaning and absolute necessity to invest in a life insurance policy. Life expectancy is usually not a matter of great concern for young adults, and the senior citizens are, more often than not, busy paying their mortgages.

      However, most of the times, in many cases life insurance policies are negated, or cancelled out entirely because the individual might not qualify for the same. This could be attributed to different factors, one of which is lifestyle. This will automatically mean that the person should have bought a life insurance policy early on in their life. However, age is not the sole contributing factor towards a person not being able to buy a life insurance policy. Other factors such as consumption of cigarettes, alcohol, job type, and so on are often the reason why policies are declined to some people.

      Statistics lay the groundwork for all insurance companies. What they do is basically gauge the frequency at which a person is falling sick (which again is dependent on many factors) and thereby determine whether or not they are eligible to buy a life insurance policy. Even if the life expectancy is not hampered, the total insurance cost along with the person’s capacity to attain the same will be affected. If you are a regular smoker or an avid drinker, chances are that you will be required to pay comparatively higher premiums.

      18 May 2014

    • Overall growth of SBI Life Insurance in FY18 better than other peers

      The Value of New Business margins of SBI Life increased from 15.4% in FY17 to 16.2% in FY18. This is partially due to the lower expense ratio and persistency related assumption change. The overall annual premium equivalent(APE) growth of SBI was at 27% in FY18 which was much better than their peers. SBI Life’s VNB margins also increased to 16.2% from the 15.4% margin in FY17. With the strong distribution strength that SBI has, the short term growth is also expected to be much stronger than their peers.

      17 May 2018

    • Taking the “Insurance is an investment’ approach

      Still, in this day and age, loads of people still view insurance as an investment, and therefore, are only concerned about the returns that their policy provides. When taking this approach, people often tend to give lesser importance to getting the right policy which is suited to their needs. This is especially true in the case of term insurance which many people view as a loss if no claim is raised and no premiums are returned. However, the story is quite different when it comes to purchasing endowment plans or unit-linked insurance plans (ULIPs) which often provide insufficient coverage but charge very steep premiums. Experts are of the view that insurance and investments must be kept separate. While term insurance is the best choice in terms of insurance, one can invest in a number of avenues like mutual funds, fixed deposits, stocks, shares, etc. for the purpose of investing.

      16 May 2018

    • Importance of ensuring you have adequate life insurance

      Insurance is fast becoming a necessity at par with others like food, shelter, clothing, etc. The government has been offering various life insurance schemes via partner banks and post offices to allow people to have some form of insurance coverage. Even employers are nowadays offering some basic form of life or health insurance coverage to their employees for their well-being. Also, more and more insurers are nowadays adopting various channels to create and raise awareness regarding the importance of having insurance. This has definitely lead to more and more people buying insurance to protect their loved ones. However, when it comes to buying insurance, many people are lost about the amount of coverage they should be getting to cover their loved ones.

      Premiums over coverage

      One of the biggest reasons why under-insurance still poses as a problem in the insurance transactions because people end up giving priority to premiums over getting adequate coverage. Several people who seek to purchase an insurance policy will give importance to the tax-saving aspect of the policy than to ensure that the plan they are buying is actually fit for their needs or would provide a sufficient amount of coverage in time of a misfortune. Same is the case with employers who regard insurance premiums as a cost. As a result, they end up providing covers which are barely sufficient to provide financial aid to the family of an insured policy member. What people completely miss acknowledging is that getting adequate coverage is way more important than saving tax or reducing expenses.

      15 May 2018

    • Life insurance sector Savings in financial assets

      The life insurance market in India largely consists of savings. One of the greatest boosters for life insurance as a product has been the increase in financial asset savings. Post-demonetisation, investments/savings in financial assets like real estate and gold are being closely monitored by the government. In fact, the real estate industry is still reeling from the effects of demonetisation which imposed restrictions on cash payments.

      Tax deductions are another reason why insurance is viewed as a very lucrative investment option by tax payers. After all, insurance buyers are entitled to claim income deductions up to Rs.1,50,000 for premiums which they pay towards an insurance policy. moreover, for certain types of insurance policies, the returns on investment and death benefit is also exempt from tax under the provision of Sec 10 of the Income Tax Act.

      14 May 2014

    • Life insurance sector growth to be spurred by key structural drivers

      India’s life insurance sector is looking at hopeful times ahead with greater growth. The industry has registered robust double-figure growth in terms of new business premiums since 2015-16. This growth is now expected to rise further by nearly 20% in the coming 5 years. Some of the key factors which are expected to drive growth for the industry, include greater focus on protection plans, lower penetration, greater savings in financial assets after demonetisation, boost from bancassurance, and increased adoption of digital channels.

      Speaking of insurance penetration in India, it continues to be low, at 2.72%, as opposed to 3.47% which is the global average. In terms of insurance density, the global average is $353, while in India, it still remains at $46.5. This is especially low, when compared to a number of other Asian countries, which taken measures to up their insurance density and penetration. For instance, in 2017, Hong Kong had insurance penetration of 16.20%; Japan had insurance penetration of 7.15%; South Korea with 7.37% and Taiwan had insurance penetration of 16.65%. However, the low insurance penetration in the Indian market surely gives hope that there is much room for improvement in the future.

      10 May 2018

    • Are you adequately insured?

      Your family is undoubtedly one of your greatest possessions and wouldn’t you do anything to ensure that they are safe and well-provided for? Life Insurance is one such tool which can go a long way to ensure that your loved ones will be safe if a misfortune were to strike. Life insurance is not just meant to support your family when you’re not around. It can also be invaluable help when you may have been injured or rendered disabled in case of an accident or illness.To ensure that you have purchased life cover that is adequate for you and your family, here are some things which you must consider when deciding on the coverage amount.

      Be sure of your budget – When investing in an insurance policy, be aware of how much of your income you can comfortably allocate towards insurance premiums. While you may want to get more than adequate cover for your loved ones, what is the use of the premiums for the same will lead you to live a compromised lifestyle. Therefore, invest for a sum assured which you are confident is affordable for you.

      Family’s needs – One of the most important factors to find out your adequate amount of life cover is to assess your family’s needs and expenses. only after you know how much your family requires to sustain their lifestyle can you reach a figure which would be sufficient to cover those needs.

      Future financial obligations – Every individual has their own set of commitments which they have promised to fulfil not only for themselves, but also for their loved ones. Be it purchasing a house, funding your children’s education, weddings, your own retirement, etc., one needs to factor in all of these expenses as well in their insurance coverage to ensure that these obligations are fulfilled, no matter what may happen.

      9 May 2018

    • Benefits of Whole Life Insurance

      Whole life insurance is a popular type of life insurance plan which basically provides cover for an entire lifetime. These plans have a savings and a protection component. The death benefit is a fixed amount which is paid to the nominee if the insured dies before the end of the policy term. If the insured survives the policy term, which is usually 100 years, then the policy turns into a matured endowment policy. Premiums for these plans are usually significantly more expensive than term insurance plans since the coverage period is much longer.

      Whole life plans provide a string of valuable benefits to policyholders who are looking to stick to a single insurance plan for their entire lifetime. Some of the notable benefits are as follows:

      Lifetime coverage – a whole life plan provides coverage for your entire lifetime, which means that you don’t have to worry about your coverage period expiring. This is far more convenient as compared to term plan which offer coverage for a limited tenure of a maximum of 30 years.

      Continuous cover & periodic payments – Whole life plans accumulate survival benefit which increases over the policy tenure. Whole life plans also provide lifetime coverage at in exchange for premiums which remain fixed during the tenure of the policy. There is a guaranteed sum assured and performance-linked bonuses which are provided.

      Fixed premiums – the other advantage of whole life plans is that they do not have increasing premiums. The premiums remain unchanged during the entire premium payment tenure of the plan.

      Tax benefits – policyholders can avail tax benefits on the premiums paid and also the returns received under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

      Loan Option – The option to take a loan against your life insurance policy is applicable for whole life policies. The loan facility can be availed only after the policy has acquired a surrender value.

      Additional source of income – The returns you receive as bonuses under a whole life plan can be an additional source of income for your loved ones and help them take care of their needs.

      8 May 2018

    • India’ life insurance sector retailing 776 products

      According to the data released by the Life Insurance Council on March 31, the Indian life insurance industry currently offers a total of 776 products, among which 587 are individual products, while the remaining 189 are group insurance products. Out of the 587 individual life insurance products that are available, 557 of them are sold by private life insurance players, while the remaining 30 are sold by Life Insurance Corporation of India (LIC).

      However, the need for such a large number of policies has often been questioned, especially since life insurance is a complicated products for most people to understand. It takes a minimum of 3 to 4 personal visits by the agent to convince a customer to purchase a policy. In this scenario, the large number of policies now available only adds to the confusion. Also adding to the confusion is the jargon which insurance companies use to lay down the terms, conditions, coverage and other aspects.

      In light of this, IRDAI has been constantly discouraging insurance providers from rolling out multiple products/policies in a year. Currently, an insurer can only launch 5 products in a year, especially since the existing products offer ample options to the customer. This step has been taken in light of the situation where the requirement calls for only a few simple-to-comprehend policies which will cater to the needs of the several hundreds who are in need of life insurance.

      4 May 2018

    • Life Insurance Sector To Benefit From Rise In Savings & Protection Growth

      At the end of FY17, the Indian life insurance industry was valued at Rs.4.2 trillion with 2.72% of insurance penetration and insurance density at $46.5. In the last 10 years, i.e. FY07 to FY17, private life insurance providers have registered nearly 2x growth in comparison to Life Insurance Corporation of India (LIC) and the CAGR (compound annual growth rate) in terms of total premiums stood at 10.4%. in the coming few years, i.e. FY17 to FY20, the industry expects a similar trend to continue wherein the private insurance players are likely to record CAGR of 18.4%, along with an industry growth of 13.5%.

      Experts have predicted that the steady increase of insurance funds in overall financial saving, along with a growth in financial savings will be responsible for the growth of the life insurance industry. The flexibility and dynamic nature of the Indian capital market is expected to help drive the growth of investment-linked insurance products. As for improvement of insurance penetration and growth of insurance players, these two will be driven by innovations in product design in the insurance protection segment. Experts have estimated that the new business premium (NBP) segment will witness an average growth at the rate of 20% to 30% over a period of the next 3 years.

      2 May 2018

    • ICICI Prudential Sees Rise in New Business; Net Profit Down by 16%

      For the quarter which ended on 31 March 2018, India’s leading insurance provider, ICICI Prudential Life Insurance, has registered a drop of 16% in their net profits which stood at Rs.341 crore. During the previous fiscal, i.e. 2017-18, the company recorded a 4% decline in their net profits which dropped down to Rs.1,620 crore. This drop in net profit was attributed to the strain of increasing new business which resulted from new business growth.

      Mr. Sandeep Batra, executive director, ICICI Prudential Life Insurance, said that the company has been laying increased focus on offering products that are highly customer centric. In the previous fiscal, the firm’s saving business with regards to annualised premium equivalent (APE) rose by 15.4% and APE for the protection business grew by 71.5%. This growth in the APE of protection and savings business, along with improvements in cost-efficiency and persistency have been the key drivers of strong growth in value of new business (VNB).

      ICICI Prudential Life also recorded a 93.1% increase in their VNB which rose to Rs.1,286 crore in the last fiscal, as against Rs.666 crore which was recorded in the previous fiscal. The company also recorded a 16.1% rise in their embedded value, which stood at Rs.18,788 crore; Assets under management (AUM) of ICICI Prudential Life stood at Rs.1.39 lakh crore at the end of the financial year 2017-2018, as compared to Rs.1.22 lakh crore which was recorded for the financial year before that.

      27 April 2018

    • LIC West zone touches record high in new business premium chart

      For the first time in the history of the Indian life insurance sector, LIC’s (Life Insurance Corporation of India) western zonal office has set a milestone in the individual new business premium segment by collecting in the just-concluded financial year which ended on March 31, 2018. The zonal office has brought in a record high first premium of Rs.9,002 crores after successfully selling over 35 lakh policies. This figure in itself is a record breaker and is the highest volume to ever be recorded by any LIC zone at any time.

      LIC’s western zone, which includes states of Maharashtra, Goa, Gujarat, and daman & Diu, have contributed to almost 21% of the overall premium, said Mr. Vipin Anand, Zonal manager (West), LIC. This zone performed especially well in terms of sale of new life insurance policies which were launched by LIC during the second half of the concluded financial year FY18. In the high end segment of the target audience, policies like LIC Jeevan Shiromani and LIC Bima Shree were found to be the most popular. With a min. sum assured of Rs.1 crore and Rs.10 lakh being offered by both these policies respectively, these two policies have been primary contributors to driving the high-volume of sales.

      Another policy which also contributed greatly to the surge in sales was the immediate pension product called LIC Jeevan Akshay VI. This policy alone helped contribute new premium worth Rs.4,600 crore.

      26 April 2018

    • Life insurance plans for senior citizens

      The world of life insurance has much to offer in terms of protection for senior citizens, for whom, the main objective is to ensure that their dependent is provided for in case of their own sudden death. Now, the two major types of plans best suited for senior citizens are whole life insurance plans and term life insurance plans. Besides these 2 major options, the third option available is a Guaranteed Life Insurance Plan.

      Term Life Insurance

      Term plans are pure risk protection plans which provide cover against the biggest risk, of death. These plans have certain set features like a fixed coverage tenure, a high sum assured, and no survival benefits. If they survive the policy term, no benefit payout is made. Term plans are among the most inexpensive forms of life insurance as they do not have any added frills attached. Some term plans may offer additional riders at additional premiums. Some term plans also come with a renewal option wherein the coverage duration can be renewed or extended after it is over, despite the increase in age.

      25 April 2018

    • Bajaj Allianz Life Insurance Goal Assure

      Thanks to recent changes, ULIPS re now gaining popularity among investors for a number of reasons. Bajaj Allianz, one of the market leaders in the life insurance space has recently launched a new ULIP (unit-linked insurance plan) which offers some special features like reimbursement of mortality cost on plan maturity, and zero premium allocation charge. In life insurance jargon, this is a type-1 ULIP wherein if the insured dies during the policy term, their nominee will be entitled to either the fund value or the insurance cover, whichever amount is higher.

      Under this plan, the maximum amount of sum assured offered is at least 10x the annual premium, which can also go up to 20x the annual premium for higher premiums, longer policy terms or younger applicants. From the investment point of view, this plan has a lot to offer. One can choose from 8 funds to invest in, which include one hybrid fund, one liquid fund, 4 equity funds, one index fund, and one debt fund. The fund selection can either be done by the policyholder themselves, or they can choose from 3 types of investment strategies which will pre-allocate funds as per the investor’s goal.

      24 April 2018

    • HDFC Standard Life Q4 Performance

      HDFC Standard Life, which is among India’s leading private sector life insurance company, recently published their annual earnings for FY18. The company has recorded robust performance which can be attributed to strong premium growth and margin improvement. In spite of the premium valuation, the company’s return ratios are also constantly improving.

      In the last quarter of FY18, the insurer posted healthy premium growth which has been driven by a balanced product portfolio. In terms of total premium, the company recorded a 20% year-on-year growth; in terms of new business premium, 32% year-on-year growth was recorded; in terms of renewal premium, the company recorded 11% year-on-year growth. In terms of individual annualised premium equivalent (APE), the insurer recorded a year-on-year growth of 31% which stood at Rs.4,890 crore for FY18.

      23 April 2018

    • Life insurance for senior citizens

      Besides providing life cover, the other important purpose of a life insurance policy for senior citizens is income replacement. Retirement is a time which can cause anxiety for many people as their regular inflow of income or salary stops. While most senior individuals may have few responsibilities by the time they retire, they may have a dependent spouse to support. In case the retired individual passes away, their spouse or dependent may not be financially equipped to take care of their own needs, in which case, an insurance policy can prove to be invaluable.

      Life insurance plans for senior citizens

      The world of life insurance has much to offer in terms of protection for senior citizens, for whom, the main objective is to ensure that their dependent is provided for in case of their own sudden death. Now, the two major types of plans best suited for senior citizens are whole life insurance plans and term life insurance plans. Besides these 2 major options, the third option available is a Guaranteed Life Insurance Plan.

      Term Life Insurance

      Term plans are pure risk protection plans which provide cover against the biggest risk, of death. These plans have certain set features like a fixed coverage tenure, a high sum assured, and no survival benefits. If they survive the policy term, no benefit payout is made. Term plans are among the most inexpensive forms of life insurance as they do not have any added frills attached. Some term plans may offer additional riders at additional premiums. Some term plans also come with a renewal option wherein the coverage duration can be renewed or extended after it is over, despite the increase in age.

      20 April 2018

    • Over 50% of LIC’s Cancer Policies Purchased in Sold In Maharashtra, Gujarat, Tamil Nadu & Kerala

      LIC recently announced a unique cancer cover plan which offered a sum assured of approximately Rs.50 lakh. Within a short span of time, the plan has become quite popular, with 88,750 policies already sold across India. Out of this total, nearly 58.5% of the LIC’s cancer policies have been sold in 4 states – Kerala, Maharashtra, Tamil Nadu, and Gujarat. In the west zone which comprises of Gujarat and Maharashtra, 26,280 policies have been sold while in the south zone which comprises of Tamil Nadu and Kerala, 25,670 policies have been sold. Both these zones combined account for the majority of the cancer policies that have been purchased. Interestingly, according to a state-level disease burden study which was released in November 2017 indicated that Maharashtra, Tamil Nadu, Gujarat, and Kerala, despite occupying a higher spot on the development scale, are rapidly on their way to becoming hot-beds for non-communicable diseases like cancer.

      However, LIC isn’t the only provider to offer cancer insurance. There are a number of private sector insurers like Aditya Birla Health Insurance, Future Generali, ICICI Prudential, Max Life Bupa, HDFC Standar Life, Aegon Life, Bharti AXA, and a few more who also offer cancer cover solutions. some of the popular cancer cover plans currently available in the market include Aegon Life iCancer Insurance Plan, HDFC Life Cancer Care Insurance, ICICI Pru Heart & Cover plan, MaxLife Bupa Critical Illness, Future Generali Cancer Plan, and Bharti Axa Cancer Insurance Plan.

      19 April 2018

    • Life insurance as a tax planning tool

      The start of the financial year is usually a time when people are busy planning their taxes and investments. Tax planning is not something to be taken lightly, but sadly, that’s exactly what happens. Most people end up doing their tax planning in a rush, and as a result, they end up investing in tax-saving investments which would do little good or benefit to them in the long run.

      When it comes to tax saving instruments, life insurance is one of the most popular instruments which hundreds of people chose every year. The popularity of life insurance rests on a number of reasons, two of which are financial security to your loved ones in times of a misfortune, and attractive tax savings on premiums and returns. Different types of life insurance policies offer varying tax benefits. Let’s take a look at these.

      Under Section 80C of the Income Tax Act, policyholders can avail tax deductions on premiums up to Rs.1,50,000 which they pay towards receiving coverage. This can also include premiums paid for life insurance covering one’s spouse or child.

      Under Section 80CCC, those who have taken an annuity or pension plan can avail deduction up to Rs.1 lakh. Upon maturity, 1/3 of the accumulated amount is tax free while the rest is taxable.

      Under Section 10D of the Income Tax Act, the death benefit which the nominee receives after the demise of the insured is also tax-free. Similarly, benefit received under ULIPs and retirement plans is also tax-free as per Section 80CCC.

      18 April 2018

    • Single and unmarried: Do you need life insurance?

      This is a question asked by many prospective life insurance buyers who are single and unmarried. Thing is, when it comes to life insurance, it is always wise to have it, than not. When it comes to buying it, experts have always suggested to buy a policy while you’re still young. This is for a variety of reasons, the most important of which is premiums. When you are young, you are likely to be in good health, with no or few health-related issues. As a result, when you approach an insurer for life cover, you are more likely to be offered a low rate on premiums, as compared to someone who is twice your age will be quoted for getting the same amount of cover. The simple difference here is the age. The older you are, the greater a risk you pose for the insurer, especially in terms of health.

      If you are single and unmarried, you can still buy insurance as the premiums you will get now, will be the lowest. The best time to purchase insurance will be when you have just started working and can afford to pay the premiums. However, the reality is that most of us only think about getting life insurance when we are married, have kids, or are no longer as healthy as before. However, what people fail to realize is that by this time, the premiums you have to pay for getting life cover will be higher than what you’d have paid a few years back, owing to increased age and deteriorating health. Young age is associate with lower mortality, hence the risk associated with the buyer is lower, which translates to lower premiums. As a young adult, you can opt for a policy which gives you the option to increase your sum assured with age, assuming your responsibilities will also increase with age. This way you can ensure that your loved ones will be sufficiently covered at later stages in life.

      17 April 2018

    • Critical illness cover via life insurance

      Critical illness covers are offered not just as add-on covers with life or health insurance, but can also be purchased as stand-alone plans. The purpose of a critical illness cover is to basically offer financial assistance to the insured when they are diagnosed with a critical illness like cancer, the treatment for which can make a big dent in one’s savings. The idea behind the plan is to help the insured take care of the treatment expenses this cover is usually available as a rider at a very reasonable premium. The premium for this policy will be determined based on a number of factors like how many illnesses have been covered under the plan, term of the policy, benefit amount, and the how old the insured is at the time of taking the policy. for instance, an individual of 35 years of age wo has taken a policy with a sum assured of Rs.2 lakh will be paying an annual premium in the range of Rs.300 to Rs.500.

      16 April 2018

    • Standard Chartered, KKR Most Likely To Invest in Max Life

      Earlier this week, Max Financial Services Ltd. announced the decision of its board to approve the fundraising proposals which has been submitted by leading companies like KKR Capital Markets India Pvt. Ltd, Standard Chartered Bank, TPG Global LLC, and a number of other co-investors. The proposals have been submitted for acquisition opportunity. The board of Max financial Services, on March 21, gave their approval to a fund raising of Rs.5,000 crore via debt for investment in Max Life, by way of a qualified institutional placement, or preferential issue in order to partly finance the capital that is needed for funding opportunities related to acquisition.

      13 April 2018

    • April may be the best time to buy life insurance

      There is no wrong time when it comes to purchasing life insurance. Any time is a good time. However, if you are looking for the ‘best’ time to invest in a life insurance policy, April is the month. In India, it has been the trend for many years that people purchase insurance especially towards the close of financial year. Data from each year’s IRDAI report indicates that a majority of the insurance business flows in especially during the close of the financial year i.e. March. The major reason for this is that March is also the tax season when people are looking for avenues to invest in, to save on tax. However, many times, these purchases end up overshadowing the primary purpose of life insurance altogether i.e. providing protection.

      But April, may be the best time to actually purchase an insurance policy, for a number of reasons. April is a relaxed period, after the targets have been met and the pressure on agents and sales people is low. Which means that they are more likely to give you time and answer your queries with patience and make suggestions accordingly. Also, at the beginning of the new financial year, many people would have had received their hikes, which means more money. As a result, even customers are more likely to have not only better liquidity, but also more time to research on and buy the most fitting plan for themselves, for protection purposes.

      12 April 2018

    • Not Compulsory to Link Aadhaar To New Insurance Policies, Clarifies IRDAI

      Sometime in the past few weeks, the Supreme Court of India passed orders for indefinite extension of the deadline for linking of Aadhaar with financial services like mutual funds, insurance policies, existing bank accounts, etc. However, despite that linking of Aadhaar is still compulsory at the time of opening a new bank account. Complaints have also been flowing in regarding undue demand for Aadhaar at for purchase of financial products like mutual funds, and insurance policies.

      Following the orders passed by the Supreme Court, the Insurance Regulatory and Development Authority of India (IRDAI) made it clear that customers will not be required to provide their Aadhaar Card details at the time of purchasing a new insurance policy. In light of existing policies, the deadline to link Aadhaar has been extended indefinitely.

      However, the regulatory body offered further clarifications that for purchase of new insurance policies, customers will be granted a period of 6 months, starting from the commencement date of account opening with the insurer, for submitting their Aadhaar details, and PAN (permanent account number) or Form 60, with the insurer.

      In case they do not hold an Aadhaar card, the customer will be required to submit any other ‘officially valid document’ as per the list of documents mentioned in the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. A per the rules, the officially valid documents’ include driving licence, passport, PAN card, job card issued as per Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and the voter identity card issued by the Election Commission of India.

      11 April 2018

    • Short guide on choosing the best life insurance cover

      When it comes to buying life insurance, most people find it challenging to decide the amount of life cover they should purchase. The answer to finding that out lies on evaluating your family’s financial situation.However, there’s more to choosing insurance than just that. Here are some pointers which you must remember.

      Income replacement - Account for replacement of income and expenses involved in enabling your family maintain their lifestyle, even when you cannot provide for them. Do remember that added expenses might accumulate in your absence, like hiring a nanny, or childcare.

      Children’s future expenses – If you have dependents like young children, then their future –related expenses must also be taken into account while deciding insurance cover. Consider expenses like their school/college fees, marriage expenses, helping them set up their business, etc.

      Loans taken – If you have taken a loan and pass away suddenly without repaying it fully, the burden of the repayment will fall on your loved ones. Take into account any unpaid loans or liabilities in your coverage amount estimate.

      Retirement funds for your spouse – When deciding insurance coverage, don’t forget to take into account your retirement. If you are not around but have a dependent like a spouse, then make sure you create a fund so that your spouse can have a comfortable retirement.

      10 April 2018

    • How life insurance makes life simpler

      The concept of life insurance has been developed to protect against financial loss that is caused due to an unfortunate event like death of a family’s breadwinner. In case the insured dies suddenly, their nominee/beneficiary will be entitled to receive the sum assured benefit which will help them take care of their lifestyle and expenses for some time to come. We all know that life insurance is essentially a contract between the insurer and the insured. Some of the important components of this contract include:

      Death benefit - This is the pre-specified amount which the insurer pays to the nominee in case of the insured’s death.

      Premium payment – Premiums for a life insurance plan are determined based on a variety of factors like the age of the insured, their occupation, their income, their health condition, lifestyle habits, etc.

      Cash value – Life insurance policies act similar to a savings account wherein the insured can build a corpus of funds which they can later use to take care of their needs.

      6 April 2018

    • HDFC Standard Life Insurance Crosses Rs.1 trillion mark in market cap

      HDFC Standard Life Insurance Co. Ltd, one of India’s leading life insurance providers, has recently become part of the select group of organizations whose market capitalisation has crossed the Rs.1 trillion mark on the exchange. The shares of the company recently traded at an all-time high of Rs.497, which was 3.4% higher than the last close, as per the data released from BSE. Since it has been listed, HDFC Standard life’s share has gained more than 71.3%. This year alone, the company’s share has risen 23%. HDFC first launched their IPO on 16 November 2017 and priced their issue at the rate of Rs.290/share. The IPO saw subscription of over 5 times.

      For the quarter ended December, HDFC Standard Life recorded net profits worth Rs.207.32 crore, which is a 14.8% increase from the corresponding quarter from last year when the recorded profits stood at Rs.180.63 crore. The insurer has also registered a 33% rise in new business premium during this period, which stood at Rs.7,070 crore, as opposed to Rs.5,330 crore in the corresponding period last year. The company’s assets under management (AUM) has also grown by 27%, which is much faster than the average of 20-24% that has been recorded in the past few years.

      5 April 2018

    • How to decide which insurance scheme is best suited for you

      Despite being filled with plenty of memorable moments, the nature of life is best described as unpredictable. The purpose of having an insurance policy is to protect your loved ones against the adverse financial consequences which are brought about due to misfortunes such as death of an income earner. When it comes to purchasing insurance, there are many options available in the market currently. However, choosing the right policy is paramount to receiving adequate protection that is suited to your particular life situation.

      Buy insurance while you are still young When it comes to insurance, it is best to purchase it while you are still young. The earlier you purchase an insurance policy, the lesser you will have to pay towards getting cover. This is simply because younger individuals are more likely to be healthier, and hence can benefit from lower premium rates when purchasing insurance. If you are in your 20s, it is advisable to go for a term insurance plan, which provides pure risk protection for a fixed number of years, and for a high sum assured. In case the policyholder dies before the policy is over, the nominee is entitled to the death benefit.

      Purchase insurance in-line with your financial goals Don’t buy insurance without assessing your future financial requirements and goals. When purchasing insurance, give priority to plans like life insurance and health insurance. Purchase riders which you think will be necessary in providing adequate protection to your loved ones.

      Buy insurance only as per your needs Before purchasing insurance, do your research about the kinds of plans that are available out there. You do not have to stick to conventional plans which offer basic protection. There are a number of insurance covers which have been designed to cover specific situations or risks. for instance, insurance cover for misplaced home or vehicle keys, cover for getting a second medical opinion in case of health insurance, etc.

      4 April 2018

    • How to make a death claim in case of life insurance

      The purpose of a life insurance policy is to protect the financial security of the insured’s family, in case of their (insured’s) death. The nominee chosen under the policy is the one who is will be responsible for filing a death claim in the event of the insured’s death. The procedure for filing a death claim is given under.

      Inform the agent – The first and foremost step in case of filing a death claim is to inform your agent about the death. The agent will then assist you with the documentation and information which must be provided in support of the claim.

      Claim intimation – After the agent has been informed, the nominee must inform the insurer about the claim as well. The claim intimation must provide details of the cause, date, and place of death.

      Claim form – The next step of the process is to obtain and fill up the claim form. This form is usually downloadable from the insurer’s website or from their branch. This form must be filled up completely with correct information, along with the supporting documents which have been asked for.

      Documents required – In case of filing for a death claim, nominees will usually be asked to provide the insured’s Death Certificate, the original policy document, Deed of assignments (if any), and the hospital Discharge form. In case there is no nominee assigned to a life insurance policy, the person making the claim must attach adequate proof that they are legally entitled to file for a claim.

      Verification of claim – After all the necessary paperwork has been received, the insurer will then proceed to verify the claim. During this process, they may ask the nominee/claimant to provide additional documents, if necessary. If the claim is found to be genuine. The insurer will proceed to pay the death benefit amount, and if there are any discrepancies found, the claim will be rejected.

      3 April 2018

    • Life insurance persistency remains low in India

      Life insurance persistency numbers in the Indian insurance industry are yet to come up to global statistics. As per the Handbook of Statistics which was published in 2017, statistics indicate that one in 3 insurance policies don’t make it past the 5 years mark, in terms of persistency. Compared to the global average, these numbers reflect very poorly, especially considering that globally, life policies manage to retain nearly 90% of customers after one year of sale, while the average persistency after 5 years stands at 65%. Persistency ratio or persistency is basically the term which defines the length of time that a customer holds on to their insurance policy. This is measured in terms of policy renewals done by the customer for their policy.

      The downside of this doesn’t just affect the insurer, but also the policyholder, as they stand to lose their money by way of hefty exit penalties. However, all is not lost. Persistency numbers seem to showing an uptick. The average persistency ratio for the 13th month in FY16 stood at 61%. This number rose to 65% in FY17.

      2 April 2018

    • 5 mistakes to avoid when buying a Life Insurance policy

      There are a number of ways one can save for the future, from the conventional mode of just parking money aside in a savings account, to investing in savings schemes - which come with an interest over deposits and tax benefits, investing in equities, bonds and other such market-linked instruments to buying a Life Insurance policy. Considering that investing in a Life Insurance policy is a life-long investment, one has to make the right decisions and avoid the most common mistakes we have come across when buying a Life Insurance police. Read below and make sure you do not make these mistakes when you purchase a Life Insurance policy.

      Since you’re probably going to do this just once in your life, ensure that you read the fine print of the policy conditions before making the purchase. Make sure that the policy conditions suit you, if not, halt the process of buying a policy till you’re satisfied. Apart from this, ensure that the personal details that you have entered are accurate - including the details of your nominee or dependents. Ensuring that these vital details are correct will avoid any future confusion.

      Either before or just after you have purchased the policy, make sure that you know exactly what you are in for. Make sure that everything as stated in the policy is what you agreed upon before signing it - from the sum assured, estimated maturity value, estimated death benefit, premium cost, name of the nominee and so on.

      As soon as you have bought the Life Insurance policy, make sure that you share all the required details with your nominee[s] and dependents. Take them through the details of the policy and most importantly through the claim process and what they’re expectation should be.

      As soon as you purchase a Life Insurance policy, the Insurance company will grant you a free-look period of either 15-30 days. Make sure you utilise this period to assess whether the policy suits you or not. If not, you can return the policy within the free-look period for not cost at all.

      30 March 2018

    • How AI Will Lead Life Insurance In The Future

      Artificial intelligence isn’t an alien concept and many industries across the world actively use it in today’s date. Among them is the life insurance industry, and experts in the field are of the view that AI will help revolutionize the way business is carried out. There are several insurance providers across the world who are already utilizing AI for the purpose of risk analysis, which enables them to determine premiums with greater accuracy, based on data. It is worth noting that machines are now rapidly picking up the job of spotting discrepancies in premium assessments, applications, and claims. Normally, an insurer will cater to thousands of clients, and the possibility of human error in terms of claim processing is only natural. However, AI is helping insurers overcome these human errors and help streamline the insurance process.

      Besides risk analysis, many life insurance providers are also utilizing AI for reviewing claims and look for details which could help detect fraud, details which are likely to be missed by claims review experts. With the introduction of AI, insurers have already seen a drop in the instances of fraudulent claim payments, and in turn, help insurers evaluate and set a realistic premium for applicants.

      Another aspect where AI is proving to be invaluable is in increasing efficiency. Typically, employees will easily take months to look through the thousands of claim-related documents. However, with the help of AI, this tedious and time-consuming job can be made much simpler. There are AI programs which can help sort through thousands of documents within just a few minutes, spotting data points and identifying errors or inconsistencies which can easily be overlooked by an employee.

      29 March 2018

    • Who needs life insurance

      ‘Do I even need life insurance?’ This is a question which almost every prospective life insurance buyer has in their mind before buying a policy. And it is a well-founded one. While experts say that most families do not have the adequate resources to recover from a tragedy, critics hold the view that insurance is an unnecessary expense, as the chances of usually very slim.

      The truth of the matter actually is, that not every person needs to have life insurance. As per the general rule, only those people who have dependents need to get life insurance to protect the financial security of their dependents. Those who do not have any dependents, do not require insurance cover. In a typical scenario, dependents usually include children, spouse, siblings, or aged parents.

      The purpose of having life insurance is to basically provide your dependents with financial assistance to enable them to continue their lives, even after you are no longer supporting them. It is most ideal for young professionals who may be supporting dependents. In case of death, the life insurance policy will provide much needed financial support to the dependents for the coming few years.

      Life insurance is also essential for stay-at-home parents, who also have considerable financial value in a household. In the absence of a parent, the surviving spouse will have to employ a caretaker to raise the children, and that can cost a considerable amount of money. Therefore, even stay-at-home parents require insurance.

      Life insurance is also essential for those who are nearing retirement, and wish to cover their spouse in case of misfortune. A life insurance policy can provide added financial assistance to the surviving spouse to take care of their needs.

      28 March 2018

    • Make sure your Life Insurance Policy is adequate

      As with investments in stocks, mutual funds, saving schemes and so on, investing in a Life Insurance policy is a long-term investment as well. Before purchasing a policy, one really needs to look at the purpose of buying a particular type of insurance policy. A lot of policyholders purchase Life Insurance policy just probably they are getting a good deal on the premiums or either to just save on tax.Considering that one is purchasing a to financial secure him/her family, a few things need to be kept in mind before buying the policy and during its tenure.

      To ensure that your Life Insurance policy offers adequate coverage for you and your family in case of an emergency, one needs to make sure that the sum assured or the maturity benefit or death benefit is at least 15-20 times one’s current income.

      Consider expenses such as one’s wedding, child’s birth and education, purchasing a house and so on.

      Make sure that your evaluate the efficacy of your insurance policy every 3-5 years - all while considering the market inflation. If you do feel that your final payout at maturity will not suffice taking note of the inflation percentage, make sure that you purchase various add-ons and extra coverage to boost your maturity value.

      Buy an insurance policy as early as possible. One should buy an insurance policy when they are younger as the younger a person is, the cheaper are the premiums. For those older who wish to buy an insurance policy, the premiums will certainly be a lot more expensive.

      27 March 2018

    • Why you should buy insurance under the Married Women’s Property (MWP) Act

      For anyone who wishes to buy an insurance policy, open a savings account, or enroll themselves in a savings scheme and so on, when filling in the application he/she will have to assign a nominee of their choice. The nominee can either be the dependent of the account or policyholder, a spouse, parents, children, etc. The reason for the nomination is that if by chance the account or policyholder passes away, all the proceeds are passed on to the assigned nominee or the legal heir of the concerned person. Recently, the Government of India has rolled out the Married Women’s Property (MWP) Act, in which the right of the wife/spouse is protected by law when it comes to the proceeds of her late husband being passed to her and her children.

      26 March 2018

    • Insurance industry Likely To Grow To $280 Billion By 2020, Says Vice President

      In light of the country’s steady economic growth, the Vice President of India, Mr. M. Venkaiah Naidu recently said that the Indian insurance industry is all set for tremendous growth in the coming few years. His prediction was that the insurance industry will grow to $280 billion by the year 2020, from its last valuation of $84.72 billion from 2017. The Vice President said that investments which have been made by insurers under multiple sectors in the FY 2016-17 amounted to Rs.30.76 lakh crore, out of which, over Rs.2.40 lakh crore was done in the infrastructure sector.

      Speaking about the likely growth, Mr. Naidu said that it may be attributed to the growing number of people in the middle class population of the country, and the general rise in people’s disposable incomes, along with increased awareness towards the importance of having insurance coverage.

      19 February 2018

    • Ensure You Get These 3 Figures Right When Buying Life Insurance

      The demand for life insurance has been growing with every passing year, as more and more people are coming to realize its importance. Out of the many types of life insurance plans available, term plans are one of the most popular owing to their various benefits such as affordable premiums, high amount of sum assured, easy to understand, no hidden charges, minimal documentation, no medical check-ups, etc. Before purchasing life insurance, it is important for every buyer to assess their needs and then decide the plan which is most suited for them. When buying a term insurance plan, there are 3 important things which every buyer must remember.

      Sum assured: When deciding your coverage sum assured amount, never just pick a random figure which you think may be sufficient. There is a lot of homework that must be done before you decide your plan coverage. The failure to do so, can often lead you to being under-insured. To ascertain a sum assured amount that is sufficient, you must take into account your assets, liabilities, your family’ lifestyle expenses, your probable future needs, cost of inflation, and any other expenses which are likely to occur. The most often used rule of thumb is to take a sum insured amount that is 10x to 12x of your current annual income.

      Policy term: Ideally, your policy term must be up to the time period till you have dependents. Say, you have young children who are likely to become financially independent in another 10 years, then your policy term must be for at least 10 years. Another factor to consider when deciding your policy term is your retirement. Choose a policy term which covers you up till retirement. For instance, you are 40 years old, and the retirement age for your profession is 60 years, then you must take a policy for a term of at least 20 years.

      Premium paying term: The premium payment term is the period for which premiums have to be paid on the policy. This term may differ from the policy term in many cases. Premium payment can usually be done in 2 ways – single premium payment, or regular premium payment (monthly, quarterly, yearly, etc.). under the regular premium payment option, you are usually allowed to choose the premium payment term which may be equal or less than the policy term.

      14 February 2018

    • Max Life Emerges As The Likeliest Candidate To Buy IDBI Federal Life

      According to various sources, it has come to light that Max Life Insurance Co. Ltd is going to be the most likely candidate to get a majority stake in IDBI Federal Life Insurance Co. Ltd., which is currently valued at approximately Rs.6,000 crore. Max Life is most likely to acquire a majority 51% stake in the firm.

      IDBI Federal Life Insurance has multiple stakeholders such as IDBI Bank Ltd., which holds a 48% stake, while Ageas SA/NV (a leading Belgian life insurer) holds 26% stake. Various insurance companies have expressed interest to buy assets in IDBI Federal Life’s insurance. These include bigwigs like Tata AIA Life Insurance Co. Ltd, Kotak Mahindra Life Insurance Co. Ltd, Aditya Birla Sun Life Insurance Co. Ltd and Exide Life Insurance Co. Ltd. The potential advisor appointed by IDBI Federal for this deal is likely to be JP Morgan. Also, the firm is keen on concluding the deal before March 31, to further save on taxes, said a source privy to the discussions.

      13 February 2018

    • Reviving a lapsed life insurance policy

      Life insurance is a contract between an insurer and the policyholder wherein the latter commits to pay a certain sum of money on a pre-decided basis, in exchange for receiving life insurance cover from the insurer. However, if the policyholder fails to make premium payments on their policy, the policy will lapse after a certain time period and cease to provide coverage. In such a scenario, the policy needs to be revived, subject to certain conditions as laid down by the insurer. Here are some points to guide you on reviving a lapsed policy.

      Time If a policy has lapsed, it can be revived only if it has not crossed the maximum revival time period as stated by the insurer, which is usually two years from the date of the first unpaid premium. Also, revival of a policy will be dependent on its type.

      Get revival quote from insurer For the revival of a lapsed policy, the policyholder needs to get a revival quote for the policy from the insurer. This quote is usually the collective sum of overall premiums that are unpaid for the policy and need to be paid to the insurer for reviving the policy.

      Declaration of good health For revival of a lapsed policy, insurers may ask the policyholder to submit a declaration of good health, depending on the sum assured under the policy and the age of the insured. A medical check-up will be necessary if the policyholder has an adverse medical history or the requirement for the same is compulsorily needed for revival.

      Unpaid premium For the revival of a lapsed policy, the insured will be required to make premium payments for all the due premiums that are remaining to be paid on the policy, along with any interest or penalty charges that the insurer has levied towards the revival.

      Penalty As mentioned above, for the revival of a lapsed policy, the insurer may charge a penalty amount, wither on the period of policy lapse, or on the premium amount payable for policy revival.

      12 February 2018

    • Shriram Life Insurance partners With SureBuddy to offer free insurance cover

      Shriram Life Insurance recently announced that it has entered into a partnership with SureBuddy, following which it will be offering insurance cover worth Rs.50,000 to SureBuddy users, free of cost. The life insurance policy being offered will be accessible on the Android app called 'FREE Life Insurance powered by SureBuddy'. However, this free life insurance coverage comes with advertisements which will be sent to the user’s mobile phone. Mr. Casparus Jacobus Hendrik Kromhout, MD and CEO, Shriram Life Insurance Company said that this free life insurance service has been provided with the objective of making life insurance accessible to a larger group of people with the help of a medium which has the power to also transform the insurance scenario in the country.

      9 February 2018

    • What insurance agents won’t tell you when buying insurance

      When it comes to buying insurance, one has to be cautious and smart. Many people end up taking help from life insurance agents to guide them in choosing the right plan. However, ne must be quite careful when employing the assistance of insurance agents who may be associated with a particular insurer. They will try to attract your attention to plans which are bundled together and give the impression that you can maximize your income two-fold or make great savings on taxes. However, these ‘bundled’ plans are usually traditional plans where there is no transparency provided on the costs or the investment returns.

      8 February 2018

    • 2018 Will Be A Year Of Consolidation For Insurers

      When it comes to the sustenance of the insurance sector in 2018, there are multiple factors which will pay a vital role. These include the possibility of disruptions, customer awareness and perception of life insurance, and certain macro-economic factors. At present, the penetration of and awareness about the importance of having life insurance is very low in India. The life insurance industry in India has one of the lowest margins in terms of New Business Margins. The protection gap too, is quite low. All these factors have given rise to multiple challenges for companies which are looking to expand their footprint in a financially viable manner.

      The effective solution to these challenges lies in increased digitisation of financial services and creating a deeper digital footprint which customers leave behind. Speaking of the macroeconomic front, the larger economy is likely to gain momentum. The impact left behind by the implementation of demonetisation, and GST (Goods and services Tax) has been absorbed by the industry. Financialisation of savings is expected to continue to aid the growth of the life insurance industry.

      As of now, India has 24 insurance companies who are working in a highly competitive and capital-intensive market. in a scenario where the top 5 insurance companies hold nearly 75% of the industry share, whereas the remaining players are struggling to sustain themselves, consolidation is inevitable and will only help the industry, and the customers as well.

      18 January 2018

    • Life Insurance Being Considered For Protection More Than Just As A Tax-saving Tool

      For years, life insurance has been seen as more of a tax saving tool which hordes of people would invest in at the time of filing their taxes. There was little awareness regarding the true purpose of insurance and a majority of people have made hasty decisions regarding the purchase of a life insurance policy. However, things have changed in the past few years, thanks to increased awareness about the importance of having life insurance as a protection tool. As per statistics, there was an overall fall in the number of life insurance policies which were sold during 2016-17. However, the overall cover value increased by nearly 14% which basically indicates that the Indian insurance industry is now evolving to be perceived as not just a tax saving tool, but essentially as a life protection instrument.

      As per the most recent annual report submitted by IRDAI, the collective number of policies which have been sold dropped to 264.56 lakh as opposed to 267.38 lakh policies which were sold a year ago. However, the amount of total cover that was provided went up from Rs.3,66,943.23 crore to a total of Rs.4,18,476.62 crore. Out of the total 264.65 lakh new life insurance policies that given during the year, nearly 201.32 lakh had been issued by LIC, whose share dropped by 2.02% points over the past year.

      Speaking of total premium income, LIC reported a drop in market share which stood at the 72.61% in 2015-16 but fell to 71.81% in 2016-17. However, private insurers witnessed a rise in their market share which went up from 27.39% to 28.19%. By March 2017, the Indian insurance industry comprised of a total of 62 insurers, out of which 24 were life insurance companies, 23 were general insurance companies, and 6 stand-alone health insurance companies and 9 re-insurance companies, which also included foreign reinsurers' branches and Lloyd's India.

      11 January 2018

    • What To Keep In Mind When Buying Term Insurance

      Term insurance is known to be the purest form of life insurance. Considering that, it is one of the most ideal types of life insurance that an individual can take to provide dedicated protection to his/her family against financial difficulties that may arise due to unforeseen circumstances. Term insurance is also one of the most popular type of life insurance as it is highly affordable and simple to understand. Since it does not involve any investment element, the only charges you pay for are towards protection of your loved ones and nothing else. So, if you are in the market for a term insurance plan, here are some things which you must keep in mind.

      Who is it ideal for?

      A term plan is designed to provide financial assistance to the beneficiary of a policyholder if the policyholder has passed away before the end of the policy term. There is only a death benefit which is offered in the event of the death of the policyholder. Term plans do not offer any survival benefit. However, policyholders can avail tax benefits on premiums paid towards a term plan. However, this is not the reason why one must take a term plan. A term plan is most suited to an individual who is financially supporting dependents such as a spouse, aged parents or children. In case of the policyholder’s death, their dependents will stand to suffer financially and that is exactly what a term plan prevents from happening. However, if you are an individual who does not support any dependents, you do not need a term plan. This may also apply to a retired person or someone who is not earning an income.

      Are you eligible for a term plan?

      The fundamental purpose of insurance is to cover risks. Underwriting is the process using which an insurer determines the risk associated with an applicant and also to fix the premium to charge on a policy. Assessing an applicant’s health is an important part of the underwriting process. When buying a term plan, most applicants are asked to take a medical test. However, buying term insurance is usually a cheaper proposition for younger applicants who are more likely to be in better health in their early years as compared to someone buying term insurance at the age of 40 years and may be suffering from some illness. Besides your health, there are a few other things which play an important part in the underwriting process. These include your employment history, your annual income, your employment position, etc. While the aforementioned factors do not have a direct impact on your insurance eligibility, they do influence the amount of coverage that the insurer decides to provide you with.

      11 January 2018

    • Axis Bank looking to acquire life insurance business, no further talks of joint venture with Max Life

      According to reports from official sources, Axis Bank is currently scouting the market to acquire a life insurance business. The decision for the same was approved by the bank’s committee in the December quarter. An official privy to the developments said that Axis Bank has recently enlisted the help of a leading US-based investment bank to look for a suitable midsize player for acquisition. The likely choices which have emerged so far include IDBI Federal Life Insurance and Tata AIA. A bid has already been submitted for IDBI Federal Life Insurance.

      The decision taken by Axis Bank to forego any talks of a joint venture with Max Life were triggered by the insurer’s decision to exit the life insurance segment by way of a merger with HDFC Life Insurance. However, the joint venture plans between Max Life and HDFC Standard Life also did not materialize. Also, after Axis Bank made a bid for IDBI Federal Life insurance, they did have some preliminary talks with Max Life as well.

      According to an official privy to the discussion, Axis Bank did have an initial discussion regarding the life insurance business acquisition with Max Life Insurance. However, due to different standpoints on valuation, the discussion was not held any further. Instead, Axis Bank has now revealed plans to branch out on its own in terms of insurance, considering that insurance has been somewhat of a golden goose for some of the country’s leading banks involved in the financial services sector.

      10 January 2018

    • What You Should Know About Taking A Loan Against Insurance

      When it comes to life insurance policies, many people are unaware of the fact that they can also take a loan against their life insurance policy. Loans on life insurance policies are often provided by the insurance provider themselves or by a bank/NBFC (non-banking financial company) who provide the loan against a security. However, the facility to avail a loan against a life insurance policy is not applicable for term insurance policies and ULIPS. Here are some quick points to remember with regard to taking a loan against your life insurance policy.

      Quantum of loan

      The maximum amount that you can avail under this type of a loan will be dependent not only on the type of life insurance policy you have but also the policy’s Surrender value. The loan amount sanctioned under such a loan is usually a fixed percentage of the policy’s Surrender value. In the case of traditional money back policies or endowment policies, the loan amount may be as much as 80% to 90% of policy’s surrender value. Some insurers may decide on the maximum quantum of loan based on payment of a minimum of 50% of the total premiums.

      Documents Required

      To apply for the loan, the policyholder must fill a loan application form. The completed form must be submitted along with the original policy document, payment receipt for the loan amount, and the copy of a cancelled cheque. This is the basic documentation that is required. However, the requirements in terms of documents may vary from insurer to insurer.

      3 January 2018

    • Max Financial & ICICI Prudential Life Among Top Bets Under Listed Life Insurance Space

      In the listed insurance space, two of India’s biggest life insurers, ICICI Prudential Life Insurance Co. Ltd and Max Financial Services Ltd. have clinched the top bets, which has definitely strengthened the case for private insurers. As per data obtained from Bloomberg, out of 16 analysts who tracked ICICI Prudential Life, 14 gave it a rating for buy or outperform, and the remaining two gave it a ‘hold’ rating.

      The current scenario is definitely favourable for private life insurers, as the data has indicated. JM Financial Institutional Securities Ltd. noted that the average premium equivalent (APE) market share of private insurers went up from 30% from a year ago to 51.2% in November, in contrast to the industry growth of 24%.

      2 January 2018

    • Should you always opt for an insurance firm with a high claim settlement ratio?

      Insurance firms usually advertise their high claim settlement ratio on their website as a way of catching the attention of prospective policy buyers. While a high claim settlement ratio is certainly desirable and an important parameter that to consider before purchasing a life insurance policy, it is not, in fact, advisable to make a decision solely on the basis of the claim settlement ratio reported by the insurer.

      Firstly, the settlement ratio of an insurance company is indicative of their underwriting guidelines. It is very likely that the insurer might revise these guidelines every few years, thereby impacting the claim settlement ratio for the upcoming years. Also, the claim settlement ratio alone is not indicative of the insurer’s effectiveness, unless it is looked at in context with the overall number of claims that have been settled, total number of policies, nature of the insurance product, etc.

      Thus, while the claim settlement ratio is a good yardstick to measure the effectiveness of the insurer, it shouldn’t be the sole parameter that you consider. As a policy buyer, when researching different plans available in the market, make sure to read through the insurer’s history and background. Further, at the time of purchasing the policy, ensure to disclose all relevant information about yourself to the insurer. By doing so, rather than relying solely on the insurer’s likelihood to settle the claim, you are also ensuring that your claim has a good chance of being honoured by the insurer.

      9 January 2018

    • The benefits of Limited Premium Payment Insurance Plans

      Traditionally, when a policy buyer purchased a life insurance policy, he/she was expected to pay the due premiums for the duration of the policy tenure. However, nowadays, life insurance providers are also offering insurance products with limited premium payment terms. Thus, when you purchase a limited premium payment policy, you are essentially only paying the due premiums for a limited period of time, but are eligible to avail the benefits of the policy for the complete duration of the policy tenure.

      Limited premium payment plans are also not exclusive to any one type of insurance product. Insurers offer endowment plans, ULIPs, term insurance plans, etc. with a limited premium payment tenure.

      When should you purchase a limited premium payment policy?

      While any individual can choose to purchase a limited premium payment policy, such policies are best suited for individuals who don’t have a steady source of income or are self-employed. These plans can also be opted for by individuals who are planning to retire in a few years and by those who have suddenly witnessed a rise in their disposable income. Individuals who may not be able to pay the due premiums for the duration of the policy tenure can also choose a policy with a limited premium payment tenure.

      There are several advantages in purchasing a limited premium plan provided the policy matches your needs and financial goals. However, before purchasing such a policy, it is essential to take note of the fact that the premiums rates are likely to be higher than normal since the policyholder is only paying the due premiums for a limited period of time. Thus, if you can afford the higher premium rate, a limited premium payment policy can give you the same returns as a normal insurance policy.

      8 January 2018

    • Premiums Of Government Insurance Schemes May be Hiked In FY19

      Government–run insurance schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana are more than likely to witness a hike in premiums in the next financial year. An official in the private life segment said that proposals have been sent to the concerned officials to revise the premiums since claims on these policies have been high. Currently, the Jeevan Jyoti Bima (JJB) which is a term insurance plan charges a yearly premium of Rs.330. The accident insurance plan named Suraksha Bima Yojana (SBY) charges an annual premium of Rs.12 only.

      The personal accident scheme run by the government has run into loss ratios of over 200%. However, a senior official privy to these discussions commented that the premium hike cannot be too sharp as it might hurt the policyholders. The officials are concerned that the rise in premium has a high chance of affecting the rate of policy renewals. In the life insurance segment, there have been a fair number of fraudulent claims which were rejected. Keeping this in mind, the officials are likely to also make changes to these insurance schemes which will also help them in dealing with fraudsters.

      5 January 2018

    • Budget 2018: Centre Must Take Steps To Promote Growth Of Life Insurance Segment

      Life insurance is one of the most popular and also important sectors in India. However, at present, the insurance industry in India is being greatly affected by a large number of disruptions. Keeping in mind the upcoming Budget 2018, a special committee set up by the insurance regulator (IRDAI) put forth a list of suggested changes for the life insurance segment. For the approaching Union Budget, the committee suggested that the Modi government increase the Life Insurance premium tax deduction under Section 80C of the Income Tax Act, 1961.

      Currently, the law allows a deduction of up to Rs.1,50,000 for investments that have been done in multiple avenues such as mutual funds, life insurance plans, pension plans, etc. the deduction is also available in case of other expenses such as tuition fees, etc. However, to encourage the growth of investment in the life insurance segment, the committee has suggested that the limit of deduction under life insurance be increased. They suggested that this can be done by introducing a separate deductible limit for life insurance premium for up to Rs.200,000 and also enhance the overall investment limit under the provisions of the Income Tax Act, 1961 to up to Rs.3,00,000.

      In their report, the IRDAI committee emphasized that a change is much needed in the current investment norms in order to improve returns that are generates by funds while also considering the risks associated with each asset class. In addition to changes in the deduction limit, the committee also suggested that the mandatory proportion of G-secs be lowered in Pension 7 General Annuity Fund, and the Life Fund so as to shift the focus on and increase exposure of other lesser known high-yield assets such as equity, property or high rated corporate bonds.

      4th January 2018

      • Insurance providers need to ensure that prospective customers meet policy parameters, says Consumer Forum

        The Consumer Forum recently ruled that insurance providers selling insurance policies need to ensure that buyers undergo a medical examination before letting them purchase the policy, in an effort to reduce instances of claims being rejected as a result of concealment or non-disclosure of vital health-related data on the policy buyer’s part. Thus, the Consumer Forum has now said that insurance providers have to make sure that all policy buyers meet the eligibility criteria and parameters that are specified under the policy, including the screening of previous medical conditions like cancer, diabetes, hypertension, etc.

        News and updates on Cancer insurance

        15 January 2018

      • HDFC Standard Life’s New Business Premium increases by 33%

        HDFC Standard Life Insurance, which is the third-largest, private-sector life insurance provider in India, has reported a 33% growth in their new business premiums, for the period that ended in December 2017. The insurer’s new business premium rose from Rs.5,330 crore, which was collected last year, to Rs.7,070 crore.

        While the majority of the insurer’s product mix was made-up of market-linked insurance products, protection products, too, saw an increase of 27.3%, in terms of the new business premiums. As a result of the steep growth reported for all products, the life insurance firm’s assets under management (AUM) rose by 27%.

        News and updates on term insurance

        24 January 2018

      • Forty applications for the post of new chairman of IRDA

        T S Vijayan, the chairman of the Insurance Regulatory and Development Authority of India, will leave office on February 21, 2018. Nearly 40 experienced personnel from the field of insurance have applied for the post.

        The initial notification stated that the applicants should have at least a 30- year work experience, should have been the secretary to the government of India or held an equivalent position at the Centre or the State. V K Sharma, the chairman of LIC and G Srinivasan, the chairman of New India Assurance are a few among others who have applied for the post of chairman of the IRDA.

        The revised notification by the department of financial services stated that chairmen of public sector general insurance companies and senior executives of LIC can also submit applications. CEOs of large financial institutions from the private sector can also apply. The term of the chairman is for a period of 5 years and he/she is authorised to a sum of Rs.4.5 lakh per month.

        News and updates on term insurance

        18 January 2018

      • Government term insurance schemes might see an increase in premium rates in FY19

        The government-backed term insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, and the accident insurance scheme, Pradhan Mantri Suraksha Bima Yojana, will likely see a slight increase in premium rates, in the next fiscal year. It is reported that this change in premium rates is attributed to the high number of claims settled.

        Currently, the Pradhan Mantri Jeevan Jyoti Bima Yojana plan is offered at an annual premium of Rs.330, whereas the Pradhan Mantri Suraksha Bima Yojana is offered for a nominal rate of Rs.12 p.a. Thus, the loss ratio on the accident insurance scheme has crossed 200%. However, in an effort to still keep the two schemes affordable, there will only be a minimal hike in the premiums for both schemes.

        9 January 2018

      • SBI Life Insurance posts 21% growth in Q3 net profit

        In its third quarter which ended on 31 Dec 2017, SBI Life insurance, one of India's biggest private life insurance player, recorded 21% increase in their net profit, which stood at Rs.230.28 crore. In the corresponding period for the previous financial year, the insurer recorded a net profit of Rs.190.43 crore. The insurer's annualised premium equivalent (APE) from new business also increased by 39.3% and was recorded to be Rs.5850 crore till the period up to 31 Dec, 2017.

        Besides this, the insurer also recorded an increase in its quality of business which was indicated by their 13th month persistency which stood at 81.5% on 31 Dec 2017. For the same period in the last fiscal, the figure was reported to be 79.8%. SBI Life also registered a 32.7% growth in its renewal premium which stood at Rs.8,860 crore as on 31 Dec 2017. There was also a dip in the company's operating expense ratio which went down from 8.9% in April-Dec 2016, to 7.7% in April to December 2017.

        The insurer's assets under management (AUM) rose by 23% touching Rs.1.16 lakh crore as on 31 Dec 2017, and net worth grew by 20.6%, touching a figure of Rs.6,440 crore as of 31 Dec 2017. To top it all, the insurer recorded a solvency ratio of 2.06, as compared to 1.5 which is the minimum required as per IRDAI regulations.

        31 January 2018

      • HDFC's profits in Q3 up by 233% post life insurance stake sale

        HDFC, which is a leading housing finance company in India and a key stakeholder in HDFC Life, has announced a net profit amounting to Rs.5,670 crore for its third quarter that ended in December 2017. This was a 233% increase over what the company announced for the same period, last fiscal. This extraordinary surge can be attributed to the gains made by the company from selling a part of its stake in HDFC Life in an Initial Public Offering (IPO). The company has also been offering affordable loans, which have also increased the income earned from operations.

        31 January 2018

      • Max Life launches first-ever online ULIP

        Max Life, which is one of the leading insurance firms in the country, recently launched a Unit Linked Insurance Plan (ULIP) called Max Life Online Savings Plan. This policy will be available only through online channels. The policy was launched in an effort to help policyholders create long-term wealth and to help them meet key milestones in their lives.

        The policy, which comes in two variants, provides maximum returns to customers by way of their Zero Policy Administration and Zero Premium Allocation charges. Policy buyers can also choose any policy tenure between 5 and 30 years and a suitable premium payment term. In terms of the fund options, the insurer offers policy buyers the option to choose from up to five funds, which include debt funds, equity funds, and balanced funds.  

        24 January 2018

      • Reliance Nippon Life ties-up with Bank of Maharashtra

        Reliance Nippon Life Insurance has recently signed a bancassurance agreement with the Bank of Maharashtra. Bank of Maharashtra, which has over 1,880 branches across the country, will help Reliance Nippon Life to further their customer outreach. This partnership will also complement the existing financial solutions offered by the bank, including the savings, protection, and investment solutions.

        Reliance Nippon is currently one of the leading private life insurers in India. The company already has a large distribution network with over 700 branches across the country, and more than 10 million policyholders.  

        23 January 2018

      • Term Insurance Is a Must-have For Financial Security

        Term insurance plans are amongst the most preferred type of insurance which many people go for. The biggest reason for this is the affordability of term plans, which makes it within reach of a large number of people. Term plans usually offer policyholders with a high amount of coverage at a low cost, for a fixed number of years. Considering the time factor, term plans are the most useful for young professionals who are financially supporting someone like a spouse or children, or both. On the death of the policyholder, the nominee gets the Death Benefit amount.

        There are various reasons why term plans are a must-have. Some of the important ones are listed below.

        Competitive pricing – term plans are one of the cheapest pure risk cover plans available in the market, especially when compared to other plans like endowment plans, or ULIPs.

        Easy to comprehend – Term plans are very easy to understand, even for a layman. The plan offers coverage for a fixed amount, for a fixed period. In case of death within the policy period, the nominee gets the death benefit sum assured amount.

        Tax benefits – Policyholders are eligible for attractive tax benefits if they invest in a term plan.

        Timely and quick payouts of Death benefit sum assured in case of claim.

        Many term plans also offer a number of additional benefits.

        29 January 2018

      • Term Insurance Is a Must-have For Financial Security

        Term insurance plans are amongst the most preferred type of insurance which many people go for. The biggest reason for this is the affordability of term plans, which makes it within reach of a large number of people. Term plans usually offer policyholders with a high amount of coverage at a low cost, for a fixed number of years. Considering the time factor, term plans are the most useful for young professionals who are financially supporting someone like a spouse or children, or both. On the death of the policyholder, the nominee gets the Death Benefit amount.

        There are various reasons why term plans are a must-have. Some of the important ones are listed below.

        Competitive pricing – term plans are one of the cheapest pure risk cover plans available in the market, especially when compared to other plans like endowment plans, or ULIPs.

        Easy to comprehend – Term plans are very easy to understand, even for a layman. The plan offers coverage for a fixed amount, for a fixed period. In case of death within the policy period, the nominee gets the death benefit sum assured amount.

        Tax benefits – Policyholders are eligible for attractive tax benefits if they invest in a term plan.

        Timely and quick payouts of Death benefit sum assured in case of claim.

        Many term plans also offer a number of additional benefits.

        29 January 2018

      • Budget 2018: Proposition made to separate tax exemption limits for Life Insurance Products

        The last announcement made, related to the life insurance sector, in a Union Budget was in FY14-15, when the FDI limit was raised to 49%. It is expected that certain changes will be made in regards to the life insurance sector in the upcoming Union Budget 2018.

        At present, various financial instruments such as insurance premiums, EPF contributions, etc. are covered under one tax slab of Rs.1.5 lakh. Thus, people are hopeful that separate tax exemption limits will be made for life insurance and pension products alone, in the upcoming Budget.

        Also, GST (the Goods and Services Tax) has resulted in insurance premiums increasing for various insurance products, thus making it a less attractive investment option for policy buyers. Policyholders and insurance firms are hopeful that they will see the GST being waived of insurance premiums, in the upcoming fiscal year.

        17 January 2018

      • Speculation About Budget 2018 – Will insurance plans get enhanced tax relief?

        The Union Budget 2018 is all set to be released on Feb 1. In the past financial year, some government reforms like implementation of GST, and demonetisation have caused widespread inconvenience to the citizens of the country. In that light, people are looking forward to the announcement of tax reforms and arrangements from the upcoming budget, which would hopefully make life easier and also provide relief to taxpayers. Some measures which the people are hoping to see are:

        · Enhancement in tax slabs for tax payers – Currently, tax exemption is available to those within the annual income bracket of Rs.2.5lakh, which people are hoping would be increased to Rs.3 lakh. This would greatly benefit small taxpayers as it would increase their disposable income.

        · Increase in tax deduction limits under Section 80C – At present, tax deduction of up to Rs.1.5 lakh is allowed under Section 80C of the income Tax Act, 1961. In the coming budget, taxpayers are hopeful to see that limit raised to Rs.2 lakh which would help in giving a boost to savings and investing.

        · Independent tax-deduction for term insurance – the insurance industry has urged the government to create a separate tax deduction clause for term insurance investments in order to not only encourage people to insure themselves, but also get further tax benefits.

        · Enhance tax-deduction limit for health insurance under Sec 80D – Like term insurance, tax payers are also hoping to see enhanced tax benefits for investing in health insurance which is governed by Section 80D of the Income Tax Act, 1961.

        · Reduction in GST on insurance premium – the implementation of GST has hiked insurance premiums considerably, thereby discouraging many people to forego buying insurance altogether. With an 18% GST on life and health insurance premiums, insurance as a whole has become inaccessible to many people who can no longer afford it.

        · Make pension plans tax friendly – Currently, income received under pension plans is taxable. Tax payers are hoping for some tax relief on that front where pension insurance income may be treated at par with NPS, which is a retirement scheme introduced by the government.

        25 January 2018

      • Budget 2018: Proposition made to separate tax exemption limits for Life Insurance Products

        The last announcement made, related to the life insurance sector, in a Union Budget was in FY14-15, when the FDI limit was raised to 49%. It is expected that certain changes will be made in regards to the life insurance sector in the upcoming Union Budget 2018.

        At present, various financial instruments such as insurance premiums, EPF contributions, etc. are covered under one tax slab of Rs.1.5 lakh. Thus, people are hopeful that separate tax exemption limits will be made for life insurance and pension products alone, in the upcoming Budget.

        Also, GST (the Goods and Services Tax) has resulted in insurance premiums increasing for various insurance products, thus making it a less attractive investment option for policy buyers. Policyholders and insurance firms are hopeful that they will see the GST being waived of insurance premiums, in the upcoming fiscal year.

        17 January 2018

      • Insurance Terms Which You Must Know

        When it comes to life insurance, a majority of people purchasing the policy do not have much idea about their purchase, barring a few basic things like the sum assured, premium, tenure, etc. of the plan. If someone’s taken a policy themselves without going through a broker, they are far more likely to have a better idea of what they are purchasing, as compared to someone who may have left their policy purchase to the services of a broker or insurance agent. Even when we purchase the policy, how many of us actually go through the policy document and its details? Hardy anyone, would be the honest answer.

        Life insurance is something that is designed to protect our loved ones from any financial calamity which might fall their way if the breadwinner of the family happens to suddenly pass away. When it comes to purchasing life insurance, it is very important for not just the policyholder, but also the nominee to be fully aware of all the vital terms which are used in life insurance, to ensure that they fully understand what they are getting. Some of the important terms which one must be familiar with are policyholder, assignment, beneficiary, claim, nominee, coverage, premium, exclusions, maturity or death benefit, rider, sum assured, etc.

        22 January 2018

      • Term Insurance as an effective tool of life insurance

        When it is pure risk protection that you are looking for, a term insurance plan is the best option that you can go for. Term insurance have been widely popular for a number of reasons. First, they are the purest form of life insurance that one can get, second, they are very affordable, and third, they provide a high sum of cover. Term plans are simple in their functioning as well and easy to understand. A term plan is usually taken for a term period of 5-30 years for a specific amount of sum assured. This sum assured would be provided to the insured’s nominee in case the former happens to pass away before the policy term is over. The sum assured is known as the death benefit. There is no maturity or survival benefit provided under a term plan. Some of the noteworthy benefits which term plans offer are:

        Cost-effective Protection – Term plans are among the most affordable types of insurance available in the market. The fact that these plans do not provide a maturity benefit is the primary reason why they are expensive as there is no payout made on the policyholder’s survival through the policy term. Furthermore, if you buy the plan online, you are likely to get it for even cheaper.

        No Additional Costs Attached – When it comes to insurance, plans often have a number of additional costs attached. For instance, ULIPs or unit-linked insurance plans have an investment element attached to them wherein fund management costs, fund allocation costs and a number of other costs come into play. With term plan, there is nothing such, thereby helping bring down the cost of premiums drastically.

        Ideal for sole income earners – Term plans are a must-have for individuals who are the only ones earning an income in their household, and have family members dependent on them financially. In case something were to happen to a sole income earner within a family, the family members are likely to fall into financial distress soon after the demise of the income earner. To prevent this from happening, it is important to have a term plan to cover your family’s needs.

        17 January 2018

      • Some basic information about insurance claim settlements

        In the life insurance segment, death claims are divided into 4 categories - claims settled, claims rejected, claims written back and pending. While 3 types are self-explanatory, the fourth type which is of particular interest is ‘claims written back’. These are basically claims which have not been claimed by the insured due to a variety of reasons such as incomplete documents or litigation. Now, when it comes to rejection of claims, that happens for a number of reasons. However, based on reports, a maximum number of claims which have been filed before the policy has completed 3 years, have been rejected due to fraudulent reasons. Ms. R.M Vishakha, CEO at IndiaFirst Life Insurance said that insurers usually tread a fine line when it comes to providing a simple-on-boarding process versus making sure that only genuine claims are settled. In case a claim has been made before the policy hasn’t even completed 3 years, the insurer will be more thorough in verifying the claim. If the insurer detects any instance of fraud in the claim, the same is rejected outright. For most claim settlement cases which go to court, the verdict is mostly settled in favour of the insurance company.

        Claim settlement record

        When it comes to life insurance, it is important for a policyholder to be aware of their insurer’s claim settlement record. Ideally policyholders must track their insurer’s claim settlement record over a duration to look assess whether there is an improvement or fall. If there is little or no improvement in the insurer’s claim settlement record, it may be wise to look for another insurer.

        Policyholders must ensure that they exercise utmost caution at the time of filling their policy proposal form. This is to ensure that all your details are correct and if you were to raise an early claim, the chances of it being rejected would be minimal.

        16 January 2018

      • Ergo and Manulife look to acquire Legal & General’s stake in IndiaFirst Life Insurance

        Internationally-based insurers Manulife Financial Corp and Ergo International AG are currently holding discussions to acquire the 26% stake in India-based insurance firm, IndiaFirst Life Insurance. The 26% stake in the company is currently held by UK-based Legal & General Group Plc. IndiaFirst has hired Ambit Corporate Finance to help them find a buyer. The life insurance firm is a joint venture between India-based Bank of Baroda and Andhra Bank, which hold a 44% and 30% stake in the insurance company, respectively. The remaining stake is owned by Legal & General.

        15 January 2018

      • Axis Bank looks for opportunities in the Life Insurance Sector

        Axis Bank is looking to enter the life insurance space by acquiring a stake in IDBI Federal Life Insurance. The same move was sanctioned by the executive committee of Axis Bank in December, last year. It is also reported that the bank is making use of the services of an investment bank based in the US to find a mid-size insurance firm, which can be acquired. Axis Bank is also considering acquiring insurance firm Tata AIA.

        Currently, the bank is partnered with both Max Life Insurance and LIC, within the life insurance sector. In the general insurance sector, the bank has formed a partnership with Tata AIA. Axis Bank had recently raised a sum amounting to Rs.11,625 crore by issuing warrants and shares.

        11 January 2018

      • Premium Payment Options Under Term Insurance

        Affordable premiums and high cover are the two primary reasons which have driven the popularity of term insurance plans. The idea of a term insurance plan is very simple and easy to understand. The plan provides a fixed amount of cover to the policyholder for a fixed duration ranging from 5 years to 30 years. If the policyholder happens to die before the end of the policy term, the sum assured benefit amount is provided to the nominee. Premium payment is an important aspect of the policy purchase process and here are the different options one has when it comes to premium payment on term plans.

        Regular Payment Option

        Under the regular premium payment option, which is also one of the most commonly availed option, the premium is paid on a regular basis. The frequency for payment can either be monthly, quarterly, half-yearly, or annually. This mode of premium payment is most convenient as it is affordable by most policyholders who can decide he frequency as per their convenience.

        Limited Payment Option

        Under a limited premium payment plan, the premium payment term is shorter than the policy term. This means that the policyholder has to pay premiums for a limited term but can continue enjoying the benefits of the policy for the entire policy term. This option is most ideal for people who may have occasional spikes in their income and can pay the higher premium.

        Single Payment Option

        Under this option, the entire plan premium is paid in a single shot, usually at the inception of the policy and may work out to be cheaper in comparison to the regular premium payment option.

        11 January 2018

      • Reliance Nippon Life to declare first interim dividend, post listing

        Reliance Nippon Life Asset Management will be considering their first dividend, post listing, next week at their board meeting. The company’s Board of Directors are expected to meet on January 16 to discuss declaring the interim dividend, three months after the listing. The board will also be approving financial results that were unaudited for the last nine months, up to 31 December 2017. Reliance Nippon Life, which is a leading asset management company in India, was the first mutual funds to list on the Indian bourses.

        10 January 2018

      • Manipal Global Education Services to conduct Training Program for Future Generali Employees

        Manipal Global Education Services will be conducting a customised training program on life insurance for future employees of Future Generali India Life Insurance. The one-year program will be held at the in Bangalore at the Manipal Global Academy of BFSI Campus. The program will comprise on-campus training for a period of 4 months, internship for 2 months, and on-the-job training at the insurer’s office for a period of 6 months.

        Upon completion of the program, students will receive a Post-Graduate Diploma in Life Insurance and will also be offered a permanent position with Future Generali. The training program is expected to commence in February this year.

        8 January 2018

      • Government-run term insurance and accident cover plan see high enrolment

        The government–run personal accident insurance scheme called Pradhan Mantri Suraksha Bima Yojana (PMSBY) has recorded total enrolment of 132.57 million by 8 Jan 2018. The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) which is a government-run term insurance plan provided coverage to 52 million individuals for a sum of Rs.2 lakh/person.

        Both these insurance schemes were launched in May 2015 under the Jan Suraksha Yojana initiated by PM Modi. Both these schemes come with a validity of one year and can be renewed automatically by way of automatic debit of premium from the policyholder’s bank account. Premium chargeable for the Pradhan Mantri Suraksha Bima Yojana (PMSBY) personal accident insurance scheme is Rs.12 per annum, whereas the premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) term insurance scheme is Rs.330 per annum.

        The Pradhan Mantri Suraksha Bima Yojana (PMSBY) personal accident insurance scheme is a yearly renewable scheme which offers cover against accidental death and disability for an amount of up to Rs.2 lakh. This scheme is open to all individuals who hold bank accounts and are between the age group of 18 to 70 years. The coverage period under these schemes commences from 1 June and ends on May 31 of the following year.

        The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a yearly renewable term insurance scheme which offers life insurance cover worth Rs.2 lakh to all individuals who hold a bank account and are aged between 18 years to 50 years. This scheme provides cover in the event of death caused due to any reason, which also includes murder or suicide. However, despite the low premiums, multiple fraudulent claims have been raised under these policies across India in cases where policyholders have staged accidents or are issue of policies under the name of already deceased people.

        11 January 2018

      • Bajaj Allianz seeks tax-free status for term insurance products in Union Budget 2018

        Life insurance firm Bajaj Allianz is currently seeking a tax-free status for their term insurance plans in the Union Budget 2018. The MD and CEO of Bajaj Allianz Life Insurance, Mr. Tarun Chugh, also said that they have asked for tax incentives for certain pension plans, much like the tax benefits that are available under the NPS or National Pension Scheme.

        In terms of the growth in business, the insurance firm has witnessed a 58% growth in rated new business and a 65% growth in the individual rated premiums. In terms of the product portfolio offered by the insurer, 65% of the products offered by the insurer are unit-linked plans, whereas the remaining 35% is comprised of traditional insurance products.

        Bajaj Allianz recently tied-up with a co-operative bank based in Mumbai and is also looking at entering bancassurance partnerships with a few other banks. The company is currently rated number four in terms of the assets under management (AUM) and has a net worth of Rs.9,000 crore.

        9 January 2018

      • Union Budget 2018: Centre may take initiatives to increase growth in life insurance sector

        It is reported that a committee that was created by the Insurance Regulatory and Development Authority of India (IRDAI) recently submitted a report which suggested certain changes which the government can make in the life insurance segment. Thus, as a result, the upcoming Union Budget for the year 2018 could see the tax deductions for life insurance policies under Section 80C of the Income Tax Act, 1961 being raised from the current Rs.1,50,000 lakh to Rs.2 lakh.

        The committee also suggested that a significant change should be made to the current investment norms in order to increase the returns generated by various investment funds. Thus, the committee has recommended that the proportion of ‘G-Secs’ in pension/annuity funds and life funds should be lowered.

        4 January 2018

      • Limited Term Premium Plans – Who Are they Beneficial For

        Limited period premium payment plans are life insurance plans wherein the policyholder gets the option of making premium payment on their policy for a limited number of years, usually 5 to 10 years. However, the coverage is provided for the entire policy term. The term of premium payment will vary depending on the duration and type of the policy you have taken. In case of a term insurance plan, the premium payment period will be lower than the term of the plan. Here are the various plans which offer the limited premium payment option.

        Endowment Plans

        The limited premium payment option is available under Endowment plans. Here, the policyholder can choose a premium payment term between 5 to 25 years for policies with a longer duration. The option of limited premium payment under Endowment plans is usually available ‘with-bonuses' and ‘fully guaranteed’.


        Unit Linked Insurance Plans or ULIPs are another type of insurance that is available with the limited premium payment option. ULIPs with limited premium payment options are similar to single premium insurance plans wherein the policyholder can pay the premium for a term of 15 years in a term of 5 years.

        Term Plans

        Term plans are also known as pure risk protection plans wherein the coverage term can go up to 40 years, or till the policyholder reaches 80 years of age. However, there is an option to make premium payments for a much shorter term. Limited premium payment term plans are ideal for those who have varied income. Similarly, these plans are also suitable for those who may not be sure about their premium payment capacity for the entire policy term. in short, these plans are most ideal for individuals who are self-employed and do not draw a fixed salary each month.

        Advantages & Disadvantages of limited premium payment plan


        • No need to commit to paying premiums for a long term.

        • No risk of losing benefits provided under the policy like the maturity benefit.

        • You get insurance coverage for the entire policy term despite paying premiums for a limited period.

        • If the policyholder surrenders the plan, the surrender value is given to the policyholder


        When you opt for a limited premium payment plan, you must understand that your monthly premium outflow in this case will be much higher as compared to when you pay premiums as per the regular policy term. Before choosing this option, assess your payment capacity to ensure that you can make the premium payment.

        9 January 2018

      • Future Generali Partners With Manipal Global To Launch Customized Talent Development Program

        Future Generali India Life Insurance recently announced their partnership with Manipal Global Education Services (MaGE) which will be responsible for developing a customised Life Insurance Training Program for the insurer’s future employees. The year-long post-graduate diploma programme will be conducted at the Manipal Global Academy of BFSI Campus, Bangalore and will include on-campus training, internship and on-the-job-training at Future Generali Life Insurance branches.

        After the students have successfully completed the training course, they will be awarded with a post-graduate diploma in Life insurance, along with an employment offer to work at Future Generali Life Insurance. the candidates for the training programme will be selected on the basis of a pre-defined process set up by the insurer itself. The programme commences from February 2018 onwards.

        5 January 2018

      • HDFC Standard Life Insurance is best bough on correction

        Speaking about HDFC Standard Life, Mr. Vijay Chopra of Enochventures.com was of the view that people who enter such companies must do so with a long-term goal in mind. Life insurance companies hold immense potential as the investments that flow in to these companies are usually locked-in for a longer duration, considering which, these companies will pay off. He is of the view that HDFC Standard Life has undergone a slight correction following their listing. Mr. Chopra was appreciative of the management present at HDFC Standard which has sound corporate governance. It is primarily due to this reason that he views HDFC Standard Life as a good company to invest in.

        3rd January 2018

      • How Life Insurance Is Expected To Grow In 2018

        The insurance industry in India is all set to achieve increased growth in 2018. This growth is likely to be driven by the rise in the portion of financial assets in household savings, as well as by low penetration. With time, the savings patterns of households in India is evolving despite the prevalent low-interest rate situation. This has led to the rise of life insurance which is now seen not only as a risk mitigation tool but also as an attractive form of investment. This year, the support for the insurance industry is likely to come from bancassurance, agency expansion, government policies, and digitalisation.

        Look Back at 2017

        In the past year, the private sector individual annual premium equivalent (APE) gained strength, thanks to demonetisation and led to increased financial savings. First year life insurance premium has grown by 16% on a year-on-year basis, to 1.81 lakh crore. The figure of number of policies served was over 1.5 crore in 2017, as compared to 1.37 crore in the year before that.

        What To Expect in 2018

        In the present year, the life insurance industry will look to establish a closer alliance with customers, as well as bring about a change in the existing scenario of how insurers service policies and engage with customers. Technology will be at the helm driving this change as insurers up the degree of customisation of need-based products. In terms of products, ULIPs and guarantees are likely to drive the premium growth for the life insurance industry.

        2nd January 2018

      • Finance Ministry looks to merge all government insurance policies with PMJJBY and PMSBY

        The Finance Ministry may soon be merging all government-sponsored insurance schemes with the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY). These two schemes are currently subscribed by over 18 crore people within the country and merging other insurance covers with these schemes can help increase the economies of scale for the two schemes.

        It is reported that currently at least eight schemes have already been merged, and the ministry is looking to merge more such schemes. The merging of these government-sponsored schemes along with linking Aadhaar to insurance is a way for the government to identify individuals with no insurance coverage.

        26 December 2017

      • UK-based Legal & General looking may sell stake in IndiaFirst Life Insurance

        It is reported that UK-based Legal & General is looking to sell its stake in IndiaFirst Life Insurance. IndiaFirst Life, which was launched in the year 2010, is a joint venture between Bank of Baroda (BoB), Andhra Bank, and financial services firm Legal & General. Bob holds a 44% stake in the life insurance firm, while Andhra Bank and Legal & General hold a 30% and 26% stake, respectively.

        The India-based joint venture partners are reportedly looking to bring in a foreign investor to replace Legal & General. The promoters have appointed Ambit Capital to help them find a suitable investor. IndiaFirst Life Insurance has recorded a profit of Rs.35 crore for FY16-17. The company is targeting a net profit of Rs.50 crore this fiscal year.

        21 December 2017

      • Term Insurance should be made mandatory under Union Budget 2018, says life insurers

        In 2014, insurance companies requested the government to make term insurance compulsory for working professionals. However, the plan was not implemented in the budget that year. Generally, money-back or endowment policies are preferred because the claim amount received is generally high. But the fact that the high protection element is absent in such policies goes unnoticed. Term insurance policies, on the other hand, have higher protection.

        According to a report prepared by a global reinsurer named Swiss Re, life insurance amounts to only 2.7% of India’s GDP. The total insurance penetration, including all types of insurance products, amounts to 3.44% of the GDP as against the world average which is 6.23% of the GDP.

        29th December 2017

      • Quick guide for purchasing life insurance

        Many people don’t give a thought to purchasing life insurance. However, many others who do, mainly focus on aspects like the premium payable, payment terms or mode, sum assured amount, etc. Lesser importance is paid to the more important aspects such as the quantum of overage that will be provided, or which their dependents will need. Often, people buy insurance as an investment or a tool to save tax, and not as life cover, which it mainly provides. So, before you buy an insurance policy, here are some things you must keep in mind.

        Search for a policy online

        Thanks to technological advancements, it has become easier than ever to not only look for but also purchase insurance policies online. The online world has made it much easier for one to not only get information about the various types of insurance but also help you select the policy that is right for you, without enlisting the help of an expert. In addition to a large number of public and private insurance providers that are now selling their policies online, many third party websites have also come up which help you not only compare between but also choose the best policy as per your needs.

        Do you need life insurance? If yes, then how much?

        Life insurance is a must for those who are financially supporting dependents like a spouse or family members. However, for those who are not, life insurance may not really be necessary. If you do require life insurance, the next question to ask yourself, is how much coverage would be sufficient to take care of your family’s needs. While the rule of thumb mentions that life insurance coverage must ideally be approximately 10-15 times of your yearly income. However, there are many other factors which must be considered when deciding life insurance coverage such as income from other sources, number of dependents you are supporting, your debts, your family’s lifestyle expenses, etc.

        27th December 2017

      • Life Insurance Trends for 2018

        Life insurance has been gaining steady recognition over the past few years as people are realizing its importance. For the coming year some promising trends seem to have emerged for the life insurance industry. Read on to find out what some of the most important of these trends are.

        Internet is new marketplace

        Before the internet became the one-stop shop for everything, insurance was purchased on a face to face basis. Insurance salesmen would visit people at their house and the whole transaction in general required the physical presence of the insurance agent and the buyer, which was not only time-consuming but also cumbersome. However, times have changed drastically. Today, the internet has made it possible for you to not only search for but also buy life insurance policies from the comfort of your home. Not only that, the internet has also helped increase awareness among the younger generation about the importance of having life insurance.

        Increased Use of Cloud Computing

        One of the biggest reasons why people put off purchasing an insurance policy is because of the tedious and time consuming underwriting process involved wherein the buyer is required to provide the requisite details to the insurer. Due to this reason, a large number of people do not have insurance cover. Typically insurers require the applicants to provide details regarding their medical history, health status, occupation, family medical history, smoking habits, hobbies, occupation, etc. which is needed to determine the premium and also the coverage that the applicant would be eligible for.

        The answer to this tedious hassle has come by way of cloud computing wherein the applicant can simply use cloud computing to make their details accessible to the insurer. While people still may not trust the safety offered by cloud computing sites and software, there is no doubt that this technology helps save on time in an efficient way. Many insurers are also adopting could technology in place of the outdated legacy technologies.

        26th December 2017

      • Pros of Taking a Loan Against your Life Insruance Policy

        There are many insurance providers in India which offer life insurance schemes with a loan facility. This means that the policyholder can, during a financial emergency, avail a loan against their life insurance policy. there are many advantages which one can enjoy by taking a loan against their life plan, as opposed to taking out a personal loan or maxing out their credit card. For a better picture, let us look at the pros and cons of taking a loan against your life insurance policy.


        · If you have sufficient cash value under your life insurance policy, you can easily take a loan against your policy.

        · For loans taken against policy, the application process is far more relaxed as compared to the application process for a policy loan. All you have to do is fill out a form and submit it with your insurer. You will get your payment shortly without any delay.

        · Policy loans will not reflect on your credit report since they are availed under life plans which have sufficient cash-value.

        · Interest rates on policy loans are usually relatively lower than the interest charged under other kinds of loans.

        · Policy loans do not have a strict repayment schedule. If the loan taker fails to repay the loan amount, it will be recovered from their policy death benefit.

        · Loans against policy are a great option for those who want to borrow only a small amount.

      • ICICI Showcases Promising Growth

        Speaking to a major television publication, Ms. Shahina Mukadam, an independent market expert recently gave her views on ICICI Prudential Life Insurance Company. She was of the view that the leading insurer is among the largest players in the insurance industry and has showcased very promising growth in the past year. The insurer registered a growth of approximately 16% in terms of premiums in the first half of the financial year, and is expected to register a further growth of nearly 18% to 20% in the coming few quarters, according to the current management guidance. In terms of investment, she held the opinion that investors can expect to make a minimum of 10% to 15% in the medium term, indicating that it is beneficial to continue to hold on to the shares.

        22nd December 2017

      • 22nd December 2017

      • 10 Facts You Must Know About Insurance

        Insurance is something that is necessary for all of us. However, not everyone is aware how it works or what it really involves. If you would like to know more, here are 10 points about insurance which everyone must remember.

        When it comes to life insurance, it is best purchased when you’re still young. This is because the premiums will go on increasing as you get older, while you can get a policy at a low rate when you’re still young.

        You can avail tax benefits on premiums that you pay for life insurance policies under Section 80C of the Income Tax Act, 1961.

        A savings-linked life insurance plan is fitting for those individuals who are already covered sufficiently under a separate life insurance plan.

        Do remember that your car insurance policy will not provide cover against damage or loss caused due to vandalism, earthquake, hailstorm, fire, or an animal accident.

        The premium that you are charged towards your insurance policy will be heavily dependent on your credit score or credit rating. A low score will fetch you higher premiums, whereas a high score may help lower your premium quotes.

        If you have a personal car insurance policy, then you vehicle will not be covered for any damages it sustains while being used for any purpose other than personal use. For instance, if your vehicle has been damaged or involved in an accident while being driven to transport goods commercially, the policy will not be liable to cover damages.

        If you have purchased a health insurance policy, keep in mind that there is a waiting period for some specific conditions such as cataract, knee replacement, kidney replacement, etc.

        Health insurance policies will not provide cover for certain health conditions, and you must be aware of this in order to avoid confusion and frustration during a medical emergency or at the time of making a claim.

        Health insurance is often also provided by employers so you can also consider that.

        The primary purpose of life insurance is for risk protection, and not investment.

        21st December 2017

      • Deadline Extended For Linking Aadhaar, PAN With LIC Insurance & HDFC Life Insurance Policies

        In a recent announcement, IRDAI (Insurance Regulatory and Development Authority of India) has extended the deadline for linking of Aadhaar and PAN (permanent account number) with insurance policies. As per the announcement made by the regulator, the submission date of PAN, Aadhaar or Form 60 has now been extended till March 31, 2018. Prior to this announcement, the deadline being observed extended till Dec 31, 2017.

        However, even though the deadline has been extended, insurance policyholders have been advised to link their PAN and Aadhaar with their respective insurance policy to continue receiving benefits. During early November, IRDAI had put forth a circular which required all policyholders to compulsorily link their Aadhaar and PAN card details with their insurance policy. Failure to link the policy with Aadhaar or PAN cards could lead to issues at the time of claim settlement.

        21 December 2017

      • Tips on How To Choose The Best Insurance Policy

        Insurance is a very important commodity in today’s times. However, with the plethora of options available out there, finding the right plan can often be quite a task. Further adding to this challenge is the fact that many customers often go for a plan that is heavily marketed, without giving much thought to their own needs. This often results in them buying the wrong plan. An ideal insurance portfolio must include different types of investments and insurance as well. To purchase insurance one must take into account various important factors such as their age, their income, the number of dependents they are supporting, their lifestyle, etc. Here are some quick tips on how you can go about choosing the right insurance plan.

        Assess your needs – this is the first step in the process of buying insurance. you must first evaluate your needs and requirements which will help you decide on the type of policy that is fit for you, and also the amount of cover you need so that your loved ones are financially secured in the event of a misfortune. Calculate the requirements of your family members and also find out the amount of money you can put aside to invest in an insurance policy.

        What perks is the policy offering – When you are out to choose an insurance plan, do consider the perks and benefits that each plan offers as well, so you can make an informed decision.

        Compare multiple quotes – this is an important part of the insurance purchase process. You must not settle with the first offer that you get, but look around and get premium quotes from multiple insurers before you make a decision. The rates for the same type of plan may differ from insurer to insurer, as can the benefits. To ensure that you are getting the best plan in terms of benefits offered and price, it is important to get multiple quotes and compare them based on factors like benefits, perks, premiums, etc.

        Ask questions – When it comes to buying insurance, do not shy away from asking questions, After all, you are going to be paying towards your policy for a considerable number of years, you have every right to know about all aspects of the policy. Before you commit to make premium payments, make sure you clarify all your doubts regarding the policy, no matter how insignificant or minor they may seem.

        20 December 2017

      • Vodafone Enters Partnership With Aviva Life Insurance for Red Protect

        One of India’s leading telecom operator, Vodafone recently announced its tie-up with Aviva Life Insurance, one of the leader’s in the Indian insurance sector, to launch a mobile plan which comes integrated with life insurance cover that is worth up to the monthly rental amount for 20 years. This plan is called Red Protect and has been designed for Vodafone post-paid customers who will now be able to get life insurance cover along with their cellular plan. The Red Protect plan starts at a tariff of Rs.499/month and will allow many young professionals to provide valuable insurance cover to their families. To activate Red Protect, customers will be required to call 199, and make the choice of the monthly rental + sum assured combination which suits them best.

        On the occasion of the launch of Red Protect, Nick Gliddon, Director, Vodafone Business Services said that this plan has been launched after receiving extensive feedback from customers and employers who are seeking plans which provide value over and above cellular mobility. Life insurance has been a unanimous choice of the majority of responders, said Mr. Gliddon.

        Speaking about the partnership with Vodafone, Mr. Trevor Bull, Managing director & CEO, Aviva Life Insurance, said that Aviva’s partnership with Vodafone is in line with the insurer’s philosophy of offering financial security to customers via simple solutions. Following the partnership with Vodafone Business Services, Aviva aims to reach out to more customers offering a fully paperless process which also includes instant policy issuance.

        19th December 2017

      • What makes insurance a must-have

        If you have bought yourself an expensive laptop, would you simply carry it in your hand everywhere or would you get a proper bag which it can be carried in to prevent it from collecting dust? The answer is quite obvious. The same way, life insurance helps protect your loved ones from any financial risk that might occur due to your sudden demise. The idea behind life insurance is to purchase a policy which offers a specified amount of sum assured that is provided to your beneficiary in the event of your sudden death. Life insurance is an indispensable tool for a majority of people in India who financially support their family and have far more responsibilities to shoulder.

        Life insurance is something that will benefit you greatly when you purchase it at a young age. Though insurance is different from investment, it can also be taken to complement your investments, if done wisely. It acts as a financial back-up for your family’s needs at a time when you may no longer be around to provide for them.

        Life insurance plans are available in several types, each type serving a specific purpose. Term insurance is meant for pure risk protection and does not offer survival benefits, whole life insurance offers over for an unlimited period of time and allows you to leave behind a legacy as well, endowment policies provide a death benefit and a maturity benefit, children’s insurance plans are designed to ensure financial security to your little one later in life, annuity plans help you create a corpus for enjoying your retirement without worries.

        19th December 2017

      • Metrics To Evaluate A Insurance Provider

        While most people only interact with an insurer as customers, they are usually required to extend their knowledge to a particular area i.e. products. As customers, they will only need to know about the different products that the insurer sells, embedded costs, insurer’s performance record, claim settlement process, etc. However, with the recent IPO launch by ICICI and SBI Life, customers will now also be interacting with insurers in the capacity of shareholders. Therefore, it is crucial they know the key financial parameters which are needed to be understood for analysing the value of a life insurance company.

        Embedded value

        Insurance is a long-term agreement between the insurer and the insured wherein the latter pays premiums towards the policy to receive coverage for the chosen period. The insurer makes profits from the future income that they receive by way of premiums. Therefore, the amount of future profits that an insurer is able to generate with current business is the measure of the company’s value. This measurement is done by embedded value (EV) which basically represents the total of the present value of combined future profits obtained from the net worth of existing business and shareholders. Therefore, the higher the volume of business that an insurer generates, the higher their embedded value will be.

        Value of new business (VNB)

        Value of new business or VNB indicates an insurer’s value based on the new business it has acquired in the previous year. It is essentially defined as embedded value of new business that is measured at the point of sale.

        Value of new business margin (VNB Margin)

        VNB margin is another metric used to evaluate an insurer. This is calculated by dividing the value of new business (VNB) by annualised premium for 1 year and gives the profit margins of a company. Companies which have high VNB margins are considered to be more profitable. VNB margins also indicate an insurer’s product mix.

        19 December 2017

      • DHFL Pramerica Life Insurance teams up With OpenText for digital transformation

        One of India’s leading insurance provider, DHFL Pramerica Life Insurance recently announced the completion of a wide scale digital transformation project in partnership with OpenText. This project has helped the insurer digitize their key business processes, right from creation of insurance policy documents to management of channel partners and insurance agents.

        DHFL has entered into a multi-year contract with OpenText under which the latter will provide DHFL Pramerica with implementation support and managed services so the insurer can sustain their digital transformation and also continue to receive support for long-term user adoption and satisfaction.

        OpenText has been deployed by DHFL Pramerica Life Insurance for not only generation but also management of documents which the customers receive such as insurance quotes and policies. As a part of the insurance process, customers also have to provide multiple forms and documents and OpenText Content Suite will help DHFL Pramerica to manage this sensitive information in a secure manner.

        In addition to helping manage customer interaction, OpenText Process Suite will also enable the insurer in terms of policy processing across multiple teams. OpenText Process Suite will also be used to automate interactions with insurance agents in order to ensure that this crucial channel can deliver quotes and information in compliance with business rules and regulatory requirements in a swift manner. This will further help ensure that key business processes, content, and information is passed on not only to customers, but also, partners, employees and agents in a secure manner across multiple platforms like mobile devices and desktops.

        14th December 2017

      • Kotak Launches SmartLife Plan with Yearly Cash Pay-outs & Protection Up To Age 75

        In an effort to expand their customer base, Kotak Mahindra Life Insurance Company Ltd., one of India’s leading private life insurance provider recently unveiled a new life insurance plan called SmartLife Plan. This is a non-linked, limited pay, participating life insurance plan which provides cover for a long term of 75 years and will offer customers the flexibility to choose a bonus option that best fits their life goals. The plan also offers customers the option to get a cash bonus which will be paid out in the form of yearly cash pay-outs after the end of the first policy year. Policyholders also have the option to collect the yearly cash bonuses into a corpus which can be accessed regularly as and when needed.

        The key advantages which this plan offers include protection up to the age of 75 years, the flexibility to choose between 2 Bonus options - Cash payout or Paid-Up Addition, enhance the plan’s protection with additional riders at additional premium, and start benefiting from the bonus option from the end of the first policy year onwards. This plan also offers the standard tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961. Policyholders can enhance the coverage of the base plan by attaching a rider.

        There are various add-on riders available with this plan, such as the Kotak Term Rider which offers additional death cover over and above the base plan, Kotak Accidental Death Benefit Rider which provides a lump sum benefit in the event of accidental death, Kotak Permanent Disability Benefit Rider which offers regular cash payouts if the insured is rendered disabled following an accident, Kotak Life Guardian Benefit which offer premium waiver on future premiums and continued coverage if the policyholder dies, Kotak Accidental Disability Guardian Benefit which offers waiver of premiums and continued coverage if policyholder is rendered disabled due to an accident, and Kotak Critical Illness Plus Benefit Rider which offers a sum assured if the policyholder is diagnosed with any of the 37 covered critical illness.

        14 December 2017

      • Why term insurance is the most effective risk protection tool

        The loss of a loved one is irreplaceable. However, financial support during such a tough time can make a world of a difference to an aggrieved family. In the event of the death of an income earner, the family is at the risk of compromising on their lifestyle, or may even have to cut down on bare necessities.

        Term insurance plans have for long being known to be one of the most effective forms of life insurance because of the pure risk protection factor they carry. These plans can help provide a high amount of cover at a very reasonable cost. But that is not the only benefit which they offer. Here are some more:

        Term plans are a very economic life insurance option

        To cover the risk of untimely death, term plans offer the most cost-effective option in terms of coverage. These plans offer a death benefit if the policyholder happens to pass away before the policy term. There is no benefit provided if the policyholder survives the policy term. The lump sum benefit provided under this plan can help your dependents take care of their short and long term needs in the future.

        High cover at low premiums

        High cover at low premiums is one of the most important benefits of term insurance. For example, a 30-year-old, non-smoking male can get coverage worth Rs.1 crore for a duration of 40 years on the payment of a premium as low as Rs.10,000 per year. If the policy has been purchased early, the premium can be lower. The amount of coverage opted for will depend on your family’s lifestyle, your current and future assets and liabilities, and future expenses.

        Monthly income benefit

        In the event of the death of the sole income earner of a household, the family is at great risk of having to compromise their lifestyle or even on the bare necessities. Also, when a family is undergoing a stressful time following the demise of a loved one, it can be very difficult to make the right decision, especially regarding investment of the benefit lump sum pay out which is usually a substantial amount of money. However, term plans often carry a provision wherein the death benefit can be split in parts. One part of the benefit is paid in lump sum after death, while the remainder is paid in equal monthly instalments over a specified period of time. This way, the family does not have to worry about investments to take care of their future needs.

        13 December 2017

      • Vodafone to begin offering Red Protect, an enterprise mobile plan with life insurance

        Vodafone’s Enterprise Postpaid customers can now avail life insurance for their loved ones along with their cellular plan. Vodafone is now offering Red Protect under which customers can avail life insurance along with their mobile plan. The tariff for this particular plan starts as low as Rs.499/month and can help individuals provide life cover to their family at an affordable cost. This scheme has been introduced as a part of Vodafone RED and will be available to only select enterprise customers.

        13th December 2017

      • Life insurance is likely to become a dominant industry in the near future

        According to current trends, life insurance is likely to become a dominant industry in the near future. More and more households are directing their savings towards financial instruments like insurance and equities, a trend which will only pick pace in the coming years, thanks to strong economic growth. As per the on-going trend, more and more people are now leaning towards purchasing life insurance as a risk protection tool, instead of a savings or investment instrument. According to reports, the ratio of GDP to household savings seems to be declining but financial savings has risen from 44% to 58% of the GDP in 5 years, up to March.

        12th December 2017

      • Term Insurance Plan + SIP makes for an unbeatable combination

        Making money is nearly everyone’s objective in life. However, only if you have money will you be at the risk of losing it. Loss of money can happen in a number of ways like theft, robbery, investment losses, loan, etc. However, if you have money that cannot be used during an emergency, is as good as having no money. Talking about a term insurance plan, and a Systematic Investment Plan (SIP), both are meant for different end uses.

        As we know, the future is unpredictable. Considering that, a term plan, and a SIP can collectively provide you with a robust financial cushion in the event of a misfortune. While a SIP can help take care of long term needs, a term plan will provide you with peace of mind for all times.

        SIP are available in various types, each meant for fulfilling long and short term goals. However, if you have taken a single term insurance plan with an adequate amount of cover, it should also be sufficient. Term plans are pure risk protection plans which offer cover for a specific number of years. They are usually one of the most affordable types of life insurance. Also, these plans, like any other life insurance plan, will help you saveon taxes as well. These days, one can easily purchase term insurance plans online.

        12 December 2017

      • How To Avoid Getting Your Life Insurance Claim Getting Rejected

        Claim settlement is a very delicate aspect of life insurance which can go both ways. While a majority of times, life insurance providers settle claims without a hassle, other times, claims may be rejected outright for a variety of reasons. However, in a majority of cases where a life insurance claim has been rejected, it is mostly due to incorrect information being provided at the time of application or proposal, which is the wrong thing to do. Always remember to fill in the correct details regarding the following on a life insurance application form.

        Occupation and income – Life insurance providers decide the highest cover you are eligible for depending on your income. Therefore it is necessary that you provide the correct figures pertaining to the same so they can decide exactly how much cover you can get.

        Details of health – The other important factor which can lead to rejection of a proposal or claim is providing incorrect health/medical details. If you do not inform your insurer about your health condition in full honesty and hold back important details such as a pre-existing condition, etc., your insurance proposal may be rejected or your beneficiary will stand to lose the claim.

        Family’s medical history – Along with your income, and health related details, it is equally important that you provide the insurer with accurate details pertaining to your family’s medical history. Often, a person may have a family history of a chronic illness such as a heart disease, diabetes, etc., which is more than likely to affect them as well. Do not hide the same from your insurer or it can lead to rejection of not only your proposal but also your claim.

        11th December 2017

      • The importance of choosing the right insurance policy

        When choosing a life insurance policy, the decision greatly depends on the future goals you have regarding not only your personal life, but also your professional life. You needs will be different if you have decided to raise a family, vs. if you plan to stay unmarried. Likewise, if you are a business owner, or a professional, or a salaried person, there are life insurance options which are designed to fit your future goals.

        Choosing the right life insurance policy is important for a variety of reasons. First, it can help you get tax relief on your income. Next, it can help you accumulate tax-free income which your beneficiary can utilize to take care of their short and long term expenses when you can no longer provide for them. These policies also help to replace income and provide a regular monthly income to your dependents later in life.

        Your life insurance premiums depend a great deal on your age and the condition of your health at the time of purchasing the policy. The younger you are, the lower your premiums are likely to be, owing to better health.

        There are different types of life insurance policies that are available nowadays, such as whole life insurance plans, term insurance plans, endowment plans. Each policy is designed to offer different benefits and is suited to different requirements. Before you purchase a policy, assess your needs and those of your family so you purchase a plan that is suited to your collective needs. After all, insurance policies come at a cost which has to be paid regularly over a continued period of time and if not budgeted properly, can eat into your expenses.

        8 December 2017

      • HDFC ERGO launches solar energy shortfall insurance policy

        India’s leading non-life insurer, HDFC ERGO General Insurance Company has recently unveiled a solar energy shortfall insurance policy which will cover non-traditional and non-physical damage related risks which are faced by solar energy projects. Diving into details, the policy is designed to provide cover to utility-scale solar farms, green fields, portfolios of rooftop installations designed for residential/commercial buildings, and a few more similar projects. Under risks related to non-physical damage, the policy will cover risks like insufficient sunshine and the impact of the same on such projects.

        The policy will also provide cover against the risk of a system being installed incorrectly or not in accordance with the manner it was intended to under the design phase, as well as the impact of the aforementioned on the revenue. Furthermore, the policy will also cover calculation errors in project yields that had been created before the project commenced operations.

        Mr. Anuj Tyagi, Executive Director, HDFC ERGO General Insurance Company said that this policy has been launched keeping Indian solar energy sector’s potential in mind. This policy is just the starting step to help insure losses that may occur owing to non-physical damages.

        7 December 2017

      • How much life insurance do you need?

        Life insurance requirements for different individuals will vary for a number of reasons. Each person has a different financial situation in life, along with their own unique life situation. Due to this, the life insurance requirements of every person will also be very unique. While there is no fixed formula to help you calculate the amount of life insurance that you need, one can determine the amount they need by answering the following questions for themselves.

        Calculate your current monthly expenses – Calculate and find out how much your family ends up spending in a month on an average. This is important to ensure that the premium that you are going to pay for your policy can be adjusted with the current income and spending. After all, a high sum assured will be accompanied with high premiums as well.

        Consider the cost of inflation – Inflation is something which will only continue to rise with time. When you’re estimating your living costs for the future, don’t forget to take into account the cost of inflation.

        Take stock of your debts and liabilities – Debts will greatly affect the value of life insurance coverage that you take. Pending loan repayments, credit card bills, etc. must be taken into account when you are deciding on the sum assured of a life insurance plan. Take a cover amount which is enough to help you clear all these debts/liabilities, and also have sufficient balance remaining which your family can depend upon financially.

        Your future responsibilities – For individuals who financially support a family, be it their spouse and children, or aged parents, it is very important to consider their family’s future needs when computing the amount of life insurance they need. Some future expenses may include children’s education expenses, medical needs of aged parents, household expenses, medical needs of a special child, etc.

        8th December 2017

      • Insurance policies That Help Minimize Losses Caused By Natural Calamities

        Natural disasters can strike unannounced and cause tremendous damage, not only to life but also property. Earthquakes, hurricanes, floods, and landslides are some of the more common ones which have caused widespread destruction to mankind in the recent past. Accidental insurance is one of the small but significant ways in which people can minimize their loss that such disasters leave behind.

        It is devastating to be stripped of all your possessions. For those who are living in an area where natural calamities are a frequent occurrence, getting the following types of insurance is a necessity. No one wants to awaken the morning after a disaster to find all their worldly possessions destroyed.

        • Home insurance will ensure that you are covered not only against the financial loss that is caused to the structure of your house, but also to the valuable contents of your house like furniture, electronics, etc. if you deem it necessary, do purchase add-on cover over the base plan to enhance its coverage.
        • Term insurance is one the purest types of life insurance which protects against the risk of death. Term plans are often the most recommended type of insurance as they provide high amounts of coverage at very affordable costs. If the policyholder passes away before the policy period is over, their beneficiary is entitled to the death benefit which can help them take care of their immediate and long term needs.
        • Personal accident insurance can come in very handy at the time of a natural disaster which can leave behind extensive damage. While a person may not perish during a natural disaster, but the probability is high that they might suffer serious injury or be rendered disabled afterwards. This is where personal accident insurance can be invaluable as it provides financial assistance to the individual who has been permanently or temporarily disabled after being injured during a natural calamity. The benefit payable under a personal accident plan will vary depending on the severity of the disability.
        • Health insurance is another important policy to have at all times. After a calamity, chances are high that people have been injured during the event and are in need of immediate medical attention. A health insurance policy will help cover your emergency room trips, outpatient treatment, inpatient treatment, medicines, etc.

        7th December 2017

      • Aditya Birla Sun Life Income Shield Plan – A Term Plan With Monthly Income

        The concept of life insurance has been around for a long time and millions of people have benefited greatly from it. However, there are different kinds of life insurance plans that are offered these days such as term plans, traditional life insurance plans, endowment plans, annuity plans, etc. Today, we will be discussing about a unique term insurance plan offered by Aditya Birla which provides the policyholder with a monthly income which increases at a pre-set percentage every year.

        Aditya Birla has launched a pure term insurance plan known as the Income Shield plan which has been designed in a way that it provides the beneficiary with a monthly benefit in the event of the sudden demise of the policyholder. If the policyholder survives the policy term, the beneficiary will not be entitled to any benefit. Under this plan, the benefit pay out structure is unique in a way that it provides the death benefit by way of monthly instalments. Policyholders also have the option to increase the amount of this periodic income each year by a pre=set percentage. Furthermore, this plan also includes the benefit of waiver of premium on the occurrence of pre-listed conditions or events.

        6 December 2017

      • Buying a life insurance policy? Don’t ignore these things

        Life insurance is a must-have in every person’s portfolio. There are many reasons for which people buy life insurance such as protecting their loved ones from financial risks, for financial reasons such as saving up for your child’s future education, marriage, or even saving up for your own retirement. This is why it is all the more important to not just understand all aspects of the policy, but also things which you must avoid doing.

        Not Knowing What You Want Insurance For – Many people buy insurance for reasons such as saving tax or investment. What people forget is that the main purpose of life insurance is to provide financial security to your loved ones. However, many people are also unsure of the reason for which they want to purchase life insurance which is not the right way to go about it.

        Not knowing how much coverage you need – Before you commit to making the payment for a policy, ensure that you have assessed your financial situation. Take stock of your current assets and liabilities and then decide how much cover you really need.

        Not knowing the type of plan you want – There are multiple types of life insurance policies that are available in the market these days such as term plans, endowment plans, retirement plans, child insurance plans, ULIP plans, etc. first find out the reason for which you are getting an insurance plan and then you will be better able to decide the plan that is suited for those needs.

        Not Knowing The Premium Paying Term – The other thing you should be careful about is the premium payment term for your plan. Every plan has a different premium paying term which determines how much premium you will have to pay. With the PPT, you can also determine the returns you are likely to get.

        6th December 2017

      • Mistakes to Avoid When Purchasing Life Insurance

        The whole purpose of getting a life insurance policy is to to ensure that your dependents and family members are financially secure if you were to ever pass away suddenly. A life insurance policy will provide your nominee or beneficiary with a sum assured amount if and when you pass away. This money can be utilized to look after the household expenses, children’s upbringing costs, education, wedding, and to pay off any liabilities that are remaining. If you buy a life cover plan without doing the necessary homework, you are far more likely to end up buying a plan which is unfit for you.

        When you decide to buy life insurance, avoid making these common mistakes.

        Purchasing a life insurance plan to save on tax - When you do that, not only will you be putting the financial security of your loved ones in jeopardy by purchasing a plan that is unfit plan, but will also be wasting money towards premiums. Don’t purchase a life plan on a whim. Do proper and thorough research on the various plans available and pick one based on your particular life situation and requirements.

        Not knowing the difference between insurance and investments - Many buyers are under the illusion that insurance is an investment. This is not true. Due to this reason, they end up purchasing life insurance policies like endowment or money back plans which provide guaranteed returns after the maturity period. Avoid doing this at all costs. Insurance is a separate requirement. If you want to ensure the financial security of your loved ones, you must get a term insurance plan which provides cover against the risk of death. Term plans are very affordable and enable you to get a high amount of cover at a low cost. The money that you save on premiums can be redirected towards making investments in capital maximizing avenues like mutual funds.

        Young people don’t need insurance – When it comes to life insurance, the only person who does not need it is someone who is single and does not have any one depending on them financially, either at the moment, or even in the foreseeable future. If you are young, but have your parents or a sibling depending on you financially, you must take life insurance to secure their future financially. It is highly advisable for young people to buy insurance because they can get it at a much lower cost than someone who is older. Young age is associated with lower health risks and hence insurers are more favourable to provide cover at a lower cost.

        5th December 2017

      • Bajaj Allianz Insurance to Launch Digital Branches via Mosambee

        One of india’s leading insurance provider, Bajaj Allianz Life Insurance Company, has begun adopting digital branch services through Mosambee to extend the scope of their service offerings.

        Mosambee is a handheld device which provides the services of a mobile branch and offers customers a range of customer services like getting premium payment certificates, obtaining account statements, payment of insurance renewal premiums, checking claim status, locating branches, SMS services for updating PAN and Aadhaar details, mobile number, email ID, fund value, account statement, bonus statement and claim status, contact details for sales enquiries and service-related queries.

        The greatest benefit of this service is that customers will now be able to pay their renewal premium via multiple payment modes like cheque, DD, chip and non-chip based credit and debit cards, online payment, etc. in addition to this, they will also have the option of making payments using eWallets soon.

        Tarun Chugh, CEO, Bajaj Allianz Life Insurance Company said that the insurer is among the very first company to in the insurance industry to adopt this unique initiative. They hope that customers will appreciate the insurer’s commitment to provide service requirements which will enable them to utilize their time better and not have to physically visit a branch office.

        5 December 2017

      • Basics of Income Replacement Insurance Plans

        What is an Income Replacement Life Insurance Plan

        One of the more popular type of life insurance is an income replacement life insurance plan. The whole idea behind these plans is to enable the policyholder’s beneficiary to not only be able to look after their short term needs, but also the long-term ones.

        How they work

        The typical working of an income replacement life insurance plan is such that the benefit pay out is divided in 2 parts. A specified portion of the benefit will be paid to the beneficiary in lump sum, while the remainder of the benefit is paid over a pre-set period or number of years, in regular, equal monthly instalments. For example, a policyholder has taken an income replacement plan which gives a sum assured of Rs.2 crore. Now the policyholder has the flexibility to allocate a part of that sum assured in two parts wherein one part will be paid in lump sum to the beneficiary on the event of the policyholder’s death, while the remaining part of the sum will be paid to the beneficiary in monthly instalments over a span of 10 years, to help them take care of long-term expenses.

        It is important to know that income replacement plans are available in multiple variants. The main difference between these variants is in terms of the benefit pay-out schedule and structure. Under one variant, the monthly pay out will increase at a pre-set percentage, based on the rate of inflation. Under the second variant, the benefit pay out is only provided in the form of monthly pay outs for a specified number of years.

        4th December 2017

      • Why It's Important to Know The Difference Between Insurance and Investment

        Insurance and investment are two things which form a very important part of your financial portfolio. Insurance provides you with protection against risks like specific losses, illness, death, damage, in exchange for premiums, investments turn for payment of a specified premium. Invest, on the other hand, entails investing money in financial instruments which help grow your capital.When it comes to securing your financial future, the right insurance policy can have a significant impact on your wealth. After all, the idea if not to buy the most expensive insurance plan, but the one which will help build your investment.

        Lets compare between term insurance and an endowment/money back plan. From the point of investing, a majority of people will go with the endowment/money back plan which provides a maturity benefit after the policy expires. Premiums for endowment policies are significantly higher than those of term insurance plans.

        Nearly 35% - 40% of your investment goes into the pockets of insurance agents as commission. Which leaves about 60% remaining, which is the actual amount which is directed towards providing insurance cover and investment.

        Considering this, it is hard to guess what the wiser thing to do here is. It is wiser to calculate the amount of cover you really need, instead of purchasing a costly insurance plan which comes with high premiums and provides you returns later. Buying a cheaper term insurance plan is a better option here because the money which you have saved can instead be invested in another avenue like a mutual fund. When it comes to insurance. it is very important to know the difference between insurance and investment.

        4th December 2017

      • LIC Asks Policyholders to Link Aadhaar & PAN to policies

        LIC, India’s biggest life insurance provider has instructed its policyholders to link their Aadhaar and PAN to their LIC policies. The message has been communicated to the policyholders via a notice on the LIC website. To facilitate the same, LIC has come up system which will enable policyholders to link their Aadhaar details with their policies online. Insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) had earlier stated that it is mandatory to link the Aadhaar number with insurance policies. Following this, the regulator had instructed insurers to comply with the statutory norms. IRDAI has said, "The Authority clarifies that, linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017," IRDAI said.

        1st December 2017

      • Life Insurance Basics: In Brief

        The concept of life insurance is quite a simple and uncomplicated one to understand. The basic idea of a life insurance plan is to purchase a policy with a specified amount of sum assured. On the event of your death, the policy will provide the sum assured to your beneficiary or nominee which you name. This is the simple part. The slightly more complicated parts are the ones which come before you even take a policy. Questions such as how much coverage to take? Which type of life insurance plan is best suited for you? What is the premium payout option should you choose? And so on and so forth.

        A life insurance policy can be an indispensable need for someone who has dependents to support, but may not be as important for someone who doesn’t have to support anyone financially. For those with dependents like young children, a spouse, or even aged parents, the responsibilities and expenses can increase with time.

        Various Purposes of life insurance

        The purpose for which you use your life insurance policy will depend on your financial situation. People take life insurance plans for purposes like estate planning, leaving a legacy for their children, transferring wealth, achieving estate tax liquidity, etc. Before you take a policy, ensure that you assess your situation so that you don’t end up buying the wrong policy. Also, younger people pay lesser towards life insurance premiums.

        How much life cover should you get?

        When it comes to deciding the amount of life coverage, the most followed rule of thumb is that the amount of cover must be approximately 6 to 8 times of your total yearly income. However, there are other factors to consider as well. Take into account the number of dependent family members, the time period for which they will depend on you, mortgage, loans, liabilities, children’s upbringing expenses, estate planning, etc. If your spouse is working, you must take into account their income at present and what it is likely to be in the future.

        Which type of life insurance plan should you get?

        When you are undecided about the type of life policy you need, just go by the principle of choosing one which ensures to provide enough to your family members when you are not around. This is the one and only rule that you must stick to when selecting a policy. After all, the whole point of taking a life insurance plan is to ensure that your family is financially provided for in your absence. This becomes especially important if

        You have mortgages and loans remaining to be paid off, and if you pass away, the burden would fall on your family members.

        1st December 2017

      • Cytecare looks to raise $75 million to expand Cancer Care hospital chain

        Cytecare, which currently runs a Cancer Care centre/hospital in Bangalore, is looking to raise a sum of $75 million in an effort to expand their chain of cancer care hospitals. Cytecare had previously raised $30 million from high net worth individuals to build their Bangalore hospital. It was also reported that their Bangalore-based hospital, which launched just a year ago, will break even in the near future. Cytecare is trying to identify a location within the country to launch their second hospital, at present.

        News and updates on Cancer insurance

        29 November 2017

      • LIC launches Cancer Care Insurance Plan

        Life Insurance Corporation of India (LIC) will be launching a cancer care policy as part of their health insurance offering. The sum assured for the said policy will range between Rs.10 lakh and Rs.50 lakh. The cancer care policy is a non-linked insurance plan and the premiums are payable on an annual or bi-annual basis. Any individual between the ages of 20 and 65 years can purchase this policy, which is also available digitally on the insurer’s website.

        Upon the diagnosis of early-stage cancer, the insurer will pay the policyholder 25% of the payable benefit and future premiums will be waived for the next three years. If the policyholder is diagnosed with major-stage cancer, the insurer will pay 100% of the sum assured. In addition, an income benefit which will amount to 1% of the overall sum assured will be paid every month for the coming 10 years, regardless of whether the policyholder survives this period or not. Future premiums will also be waived off.

        News and updates on Cancer insurance

        15 November 2017

      • Kotak Life Introduced Kotak e-Term Plan

        Kotak Mahindra Old Mutual Life Insurance recently announced the launch of a new comprehensive term insurance plan called ‘Kotak e-Term Plan’. This term plan offers 3 coverage options – Life option, Life Plus option, and Life Secure option - each of which offer varying benefits.

        Under the Life option, the policyholder will get pure risk protection against death which has resulted from any cause. Under the Life Plus option, customers get the benefit of not only the Life option, but also additional cover against death following an accident. Under the Life Secure option, the policy holder will get the added benefit of waiver of future premiums and continued insurance cover in the event of total & permanent disability.

        Under the Kotak e-Term plan, customers also have the option to get add-on cover to enhance their coverage to take care of increased responsibilities at important stages of their life, or even at specific intervals. The plan also offers you the flexibility to choose from 3 pay out options by which the nominee will receive the benefit amount. These options include benefit payout in lump sum, in the form of a recurring yearly payout or by way of an increasing recurring yearly payout.

        30th November 2017

      • ‘Provide Group Insurance to Bar Council Members’, Rajasthan High Court

        The Rajasthan High Court has urged the Bar Council of Rajasthan (BCR) to provide it’s members with the facility of group life insurance. In Rajasthan, about 65,000 lawyers are members of the Rajasthan Bar council.

        The petition for this was given by Mr. Lokesh Sharma, the direction for which was given by the single bench of Justice M N Bhandari. The court noted that the Bar Council of Rajasthan possesses funds worth Rs.71 crore, and is also collecting an annual fund worth Rs.7 crore by way of member contributions.

        Currently, as the court also observed, the maximum amount which a member is entitled to in the event of a fatality is Rs.2.5 lakh, which is unreasonably low and must be increased. It was also noted by the counsels to the petitioner that even though there is a provision in place for providing group life insurance, the welfare fund committee has not provided the members with the benefit due under the group life insurance.

        29th November 2017

      • What Not To Do – Term Plan Claim Settlement

        When it comes to life insurance, most people have one nagging concern. Claim settlement. Most policyholders are concerned whether, in the event of their death, will the nominee have to make endless rounds of the insurer’s office, submit document after document, and basically struggle to get the insurance claim paid, which is supposed to be rightfully theirs.

        When it comes to term insurance, people tend to forget that this is a relatively uncomplicated product with little in terms of fine print. It all boils down to the fact that whether or not the policyholder has been honest, clear, and careful at the time of applying for the policy and also when it comes to providing information to the insurer. If they have followed the set protocol when it comes to applying for a term plan, there are almost zero chances that their claim will be rejected or even delayed.

        There are quite a few mistakes which people make when it comes to buying a term plan, which can often lead to rejection of claim. Here is a brief list of mistakes to avoid.

        • Submitting incomplete information, concealing facts or providing incorrect information while applying for the plan.
        • Not fully disclosing your non-medical information, such as income, occupation, geographical location, etc.
        • Disclosing incomplete or incorrect information pertaining to your medical status, lifestyle, and family history.
        • Not disclosing or giving incorrect information regarding any pre-existing diseases that you have. This information is very crucial when it comes to getting health-related riders like critical illness, with your term plan.
        • Avoid taking the medical test if you have opted for a high sum-assured which requires the applicant to undergo one.
        • Not updating their nomination details after every important life event like marriage, starting a family, etc.
        • Not keeping your nominee prepared and aware about the claim filing and settlement process.
        • Letting the policy lapse by forgetting or discontinuing premium payments.
        • If your nominee delays the claim filing much after the claim has occurred.

        27th November 2017

      • India First Life Looking To Be Included Among Top Insurance Companies

        IndiaFirst, one of the country’s top private insurance provider, is employing aggressive marketing in target segments like rural regions to clinch a place on the list of top ten insurance providers in the industry. At present, IndiaFirst is placed on the 12th position from the top, on a list which comprises of 23 life insurance providers, including the state-owned Life Insurance Corporation (LIC). To expand its network and reach to the rural masses, IndiaFirst plans to sell policies via the vast and well-spread network of 2.70 lakh CSCs or Common Service Centres located across India.

        IndiaFirst Life currently has a customer base of over 1.1 crore and was launched in 2010 following a joint venture between Bank of Baroda, Andhra Bank, and the UK-based leading risk, wealth and investment brand called Legal & General.

        29th November 2017

      • India First Life Launches First Micro-insurance plan Called ‘Insurance Khata’

        IndiaFirst Life Insurance (IndiaFirst Life), one of India’s leading life insurance provider, recently unveiled a one-of-a-kind micro-insurance plan called ‘Insurance Khata’. This plan has been launched mainly for individuals who are employed with the informal sector and agricultural labourers who earn seasonal incomes. This plan is otherwise known as a recurring single premium term with return of premium (TROP), in common industry terms.

        The ‘Insurance Khata’ micro-insurance plan will be offered to the target audience primarily via the 2.4 lakh Common Service Centres (CSC) which are located across India. The same was communicated at the product launch event by R.M.Vishakha, MD & CEO at IndiaFirst Insurance.

        The most attractive feature of this micro-insurance plan is that the plan holder has the flexibility to pay premiums in parts, as per their convenience. Given the income limitations that the target group of this plan faces, the Insurance Khata plan has been designed in such a way so that the total premium paid by the policyholder will be returned to them at the end of the policy term, all the while providing life insurance cover as well. Additionally, the cost of servicing of this plan is low.

        Under this plan, customers can continue to increase the sum assured and continue getting paid their premiums back, as they mature. This plan is available in 3 tenure options of 5 years, 7 years, and 10 years.

        28th November 2017

      • Risks You Run On Stopping Your Life Insurance Premium

        Have you ever wondered what happens to your insurance policy when you cease premium payments on it? Not many people know it, but if you suddenly stop premium payment on your life insurance policy, whether you are not satisfied with it, or are financially unable to pay the premiums, it can lead to consequences. To give you an idea, we have taken the example of a traditional life policy and will list down the options one has when they stop making premium payments on this specific policy.

        What Is a Traditional Life Insurance Policy?

        A traditional life insurance plan is one which combines the elements of savings with protection. In addition to getting a pay out, the policyholder is also entitled to a maturity bonus. Traditional plans invest in fixed-income investments which usually offer returns of 4% to 6%.

        When Premiums Are Discontinued

        Life insurance as we know, is a long term agreement. Due to this, if you stop premium payments on it suddenly, the maturity benefit will be affected and you may end up not getting the same at all. However, if you are not able to continue your traditional policy due to unavoidable reasons, here are the options you have to minimize the damage.

        Surrender the policy

        Your first option is to surrender the policy. Now this option is only available if your policy attains surrender value. Policies attain a surrender value only after premiums have been duly paid for 2-3 years, based on the terms of the plan. When you surrender your policy, the surrender amount is immediately paid to you, but once the policy is surrendered, the life cover will cease immediately. Also, depending on the year you surrender the policy, there may or may not be tax implication on the same.

        Paid-up policy

        A policy attains paid-up status only if the policyholder ceases premium payments on a policy which has attained surrender value. When a policy becomes a paid–up policy, it will continue to provide maturity benefit and life cover, but both will be proportionally lower. This calculation is done based amount of premiums due versus the amount of premiums paid against the policy. Paid-up policies are not eligible for bonus. Policyholders receive the paid-up value of the policy when it matures.


        A policy will lapse and not offer benefits any longer if it is discontinued after it has attained surrender value but is still within the initial years of the policy term.


        If all the requisite conditions have been met, most companies will allow customers to revive a discontinued policy. For revival, the policyholder will be required to submit a late fee, in addition to making pending premium payments.

        27th November 2017

      • Riders That Can Help Enhance The Coverage of A Term Plan

        When it comes to term insurance, simply getting a plan is often not sufficient. Term plans, as we know, provide protection only against the risk of death. They don’t provide cover against other risks such as accidental disability (permanent or partial), loss of income due to disability, etc. While people do tend to choose term plans with care, they often forget about getting riders.

        Riders are add-on covers that can be taken over and above your base term plan and will provide added coverage. If you are looking to get a rider over your term plan, here are some which you must consider getting.

        Waiver of Premium Rider – This rider will help ensure that you are financially independent especially when misfortune strikes. Insurance coverage is provided in return of premiums, which are decided based on the policyholder’s income and employment status. However, if they were to lose their job and or are not able to make enough to make ends meet, they would still have to pay insurance premiums. What this rider does, is waive your future policy premiums so you can save that money to take care of other essential expenses. This way you continue to be protected and also save additional money.

        Critical Illness Rider – If you are someone who has a family history of a critical illness, then this rider is fit for you. Medical expenses are rising and the costs of treating critical illnesses are is simply skyrocketing. Often, people end up spending their life-savings towards the treatment of a critical illness. This is when a critical illness rider can be invaluable as it helps cover the costs the treatment of such illnesses. Under this rider, you usually gets a lump sum amount on the diagnosis of a critical illness. The same can be used to pay for the treatment.

        Accidental Death Rider – This rider has been designed to provide your loved ones with additional financial support if the policyholder passes away. Under the rider, the nominee is entitled to an additional sum assured, which is provided over and above the sum assured of the base term plan. With this rider, you can ensure that your family has financial assistance at a time when they may most need it.

        24th November 2017

      • Types of Life Insurance

        When it comes to life insurance, it is very important to know the type of insurance that will fit your particular requirements. As we all know, different individuals have differing needs when it comes to insurance coverage. Hence, it is important to know about the different kinds of life insurance plan that are there and what benefits they offer.

        Term Insurance – This type of insurance is the purest form of life insurance where coverage is offered specifically against the risk of death. Term plans are valid only for a specific duration like 5, 10, 15, 20, 25, and 30 years. If the policyholder passes away before the policy expires, their nominee will be entitled to a death benefit. However, there are no benefits paid on survival past the policy expiry date. There is also no saving component included in term plans.

        Whole Life Insurance – Whole life insurance plans, unlike term plans, offer insurance cover for an unlimited period of time. These plans not only offer a death benefit, but also sometimes a survival/maturity benefit, which can be given in the form of a legacy to your loved ones.

        Endowment Policy – Endowment policies are the typical life insurance policies which provide not only a death benefit, but also a maturity benefit. If the policyholder dies before the end of the policy term, or is rendered disabled due to an accident before the policy term is over, their nominee will be entitled to receive the death benefit. If the policyholder lives through the policy term, they will be entitled to a maturity benefit, which also acts as a saving component.

        Children’s Policies – For those who wish to ensure financial coverage for their children, child insurance plans are the right option. These are like regular life insurance plans where the nominee or policyholder will be your child, who will be entitled to receive the benefits under the policy, if anything were to happen to you. With child insurance policies, you can create a corpus which goes to your child when they attain a certain age.

        24th November 2017

      • SBI Life to Cut Premiums For Term Plans

        Competition in the insurance market is currently quite tough. Many insurers have taken measures to gain market share by slashing their policy rates. Among the many to do so is India’s leading private life insurance provider, SBI Life, which is the latest to hop on the bandwagon to lower rates for their term plans. The announcement for the same is expected to be made in December. The revision of the premium will be done on the basis of the insured individual’s age and the tenure of their policy.

        Mr. Arijit Basu, MD & CEO, SBI Life Insurance said that the company has been reviewing premiums of their plans every 4-5 years, on the basis of the mortality experience. Due to increased awareness, the general health status of the target age group opting for term insurance has seen improvement. Considering this, the insurer has decided to lower the premiums. He also said that SBI Life is relying on their digital and physical expansion to get a greater stronghold in the domestic market. The insurer currently has 765 branches located across India, and plans to open 35 more in the near future, making the total count at 800. With their expanded presence, the company aims at gaining greater exposure. Also, the company is constantly investing in IT, and 25% of their total expenditure is directed towards IT, said Mr. Basu.

        23rd November 2017

      • Calculate How Much Life Insurance You Need With This DIY Life Insurance Calculator

        For most of us, life insurance is something that simply cannot be ignored. While those who are not supporting any dependents may not need it as much as those individuals who have dependents relying on their financial support. With life insurance, you can stay assured that your dependents will stay financially protected in the unfortunate event of your death.

        The first step in buying a life insurance policy is determining how much life insurance you actually need. This is something you can find out by asking yourself 3 important questions. First, is there anyone who is financially dependent on you? Second, if you do have a dependent, for how long will they depend on you? And third, considering annual inflation @ 7%, how much funds would they need, including payments and liabilities?

        With this approach, it will become much simpler for you to actually arrive at a figure which is ideal for you, considering your dependents and their needs. Also, while you are at it, do be cautious to not over-insure or under-insure yourself, as both these can prove to be financially harmful in the long run. Take help from an expert or professional to figure out the amount that is ideal for you.

        22nd November 2017

      • Why Choose Whole Life Insurance

        What is whole life insurance?

        As the name suggests, whole life policies are life insurance plans which provide cover for a lifetime. Under a whole life plan, policyholders usually have the freedom to choose the sum assured, and tenure of the policy, besides other things. The policy provides survival or maturity benefit and premium collection may be done either or a specified period during the policy or throughout the policy tenure.

        Benefits of Whole Life Plans

        Lifetime coverage – One of the most important benefit provided by a whole life plan is that it provides insurance coverage for your entire life. Whole life policies are also known as permanent policies for this reason. There is no specific time period defined for the policy’s tenure and it goes on indefinitely. This eliminates the hassle of having to look for a new policy as your policy will go one till you die.

        Predictable Premiums – The other benefit which whole life policies offer is consistency in premiums. Premiums for whole life policies will stay the same, which means that you don’t have to worry about any hike in premium as you grow older or your health deteriorates.

        Cash Value – Lastly, when you purchase a whole life policy, you don’t lose your money in premiums. The policy accumulate a cash value as the policy term progresses. A part of your policy premium is redirected towards the providing coverage while the rest is redirected to a savings account. Compare this with a term plan where if you survive the policy term, you are not entitled to any benefit. The money that goes into savings accounts earns dividends and will increase over time. Hence, it is safe to say, whole life policies are an ideal insurance and retirement coverage option.

        22nd November 2017

      • IndiaFirst Life Insurance targets 43% Growth in Net Profit this fiscal

        IndiaFirst Life Insurance is eyeing a growth of 43% in its net profit in the current fiscal. The company’s net profit during 2016-2017 was Rs.35 crore, and they are expecting to achieve a net profit if Rs.50 crore this year. The company is looking to retain their position as the fastest growing private-sector life insurance company by achieving this target.

        The company which launched in the year 2009 attained its break-even in just the 6th year after its inception. The insurer currently offers a total of 35 insurance products, which include 21 individual plan, 8 group plans, 5 combi plans, and one rider. The latest offering from IndiaFirst is a child protection policy called Little Champ.

        20th November 2017

      • HDFC Standard Life’s Shares list at 27% over Issue Price

        HDFC Standard Life Insurance, the third-largest private sector life insurance firm in India, saw a strong market debut with shares trading as high as 27% due to good subscription and positive market conditions. The firm’s shares opened at Rs.313 against the issue price of Rs.290. The shares recorded an intra-day high of Rs.369 and an intra-day low of Rs.303.

        The company’s Rs.8,695 crore IPO was oversubscribed 4.9 times by the last day of the bidding process, which began on 7 November 2017 and ended on 9 November 2017. The issue involved the sale of up to 19,12,46,050 shares by HDFC and 10,85,81,768 shares by Standard Life Mauritius. Currently, HDFC and Standard Life hold a 51.69% and 29.35% stake in the life insurance firm, respectively.

        17th November 2017

      • Most common riders available with life insurance plans

        For individuals who are financially supporting dependents like young children, aged parents, or a spouse, getting a life insurance policy is a must. While life insurance policies are designed to provide all the necessary basic coverage, one always has the option of customizing the policy as per their lifestyle, with the help of add-on riders. Most insurers do offer riders along with life insurance plans to help the policyholder get enhanced coverage at a nominal cost. Some common riders available with life insurance policies listed below.

        Waiver of premium – This rider is offered by several insurers to help policyholders deal with a financial crunch following unfortunate situations. Usually, in the event of an accidental disability, or diagnosis of a critical illness, the rider will waive off future premiums either for a specified period, or for the remainder of the policy.

        Critical illness – This rider often acts as an income replacement. The amount that is paid under this rider is usually utilized towards meeting additional expenditures that have arisen due to the critical illness. While different plans will provide cover for differing critical ailments, it is wiser to find out which critical illnesses your insurer covers before getting the policy. Some major life-threatening diseases that are usually covered under critical illness riders are cancer, heart attack, tumour, kidney disorders, etc.

        Accidental death rider – Though nearly all term plans do provide cover against accidental death, this rider has been introduced especially for the beneficiaries. Therefore, in case of your accidental death, you nominees will not only get the death benefit payable under the base plan, but also the sum assured payable under the rider. The amount of the sum assured under the rider can either be selected by the policyholder, or could be a pre-decided amount set by the insurer.

        21st November 2017

      • Getting A Loan Against Your Insurance Policy

        Not many people are aware that their life insurance policy can often also become a blessing in disguise in more than one ways. For instance, if you ever find yourself in urgent need of cash, you can take a loan against your life insurance policy. While many banks allow people to pledge their life insurance policy for a loan, many insurers also provide their customers with loans in times of need. Here’s how it works.

        Policies against which loans can be taken

        To begin with, it is important to know the types of life insurance policies which you can get a loan against. Commonly, one can avail a loan against an endowment policy, and a money-back policy. However, loans are usually not provided against Unit Linked Insurance Policies (ULIPs) and term insurance policies.

        How is loan amount determined

        After you have confirmed that you are eligible for a loan against your policy, the next thing to find out is the loan amount that you are eligible for based on your policy. For loans taken against life insurance policies, the loan amount is usually determined based on certain factors like the policy’s surrender value, number of premiums you have paid towards the policy, and the number of years that the policy has completed. The surrender value of a policy is the policy’s current value in the time it is terminated voluntarily by the policyholder. Therefore, if you have paid a higher number of premiums towards your policy and the greater the number of years that the policy has been in force, the higher will be it’s surrender value. As a result, the higher the surrender value of the policy, the greater will be the loan amount you can be eligible for against the policy. For instance, your policy which provides cover for up to Rs.10 lakh, has a surrender value of Rs.4 lakh. The loan amount that you could be eligible for against your policy could be anywhere around Rs.3.20 lakh to Rs.3.60 lakh.

        Also, the eligibility of getting a loan against your life insurance policy will also depend on the policy being in force for a minimum period of 3 years. Hence, premiums on the policy must be paid for a minimum period of 3 years for one to be eligible to take a loan against it.

        The bank/insurance company may or may not charge a processing fee for loan taken against an insurance policy. Also, interest charged on loans taken against an insurance policy are relatively lower than those charged by with a personal loan.

        21st November 2017

      • Aegon Life Seeking Fintech Partnerships In Digital Drive

        In an effort to expand it’s customer base via the digital platform, Aegon Life Insurance looking to establish partnerships with fintech companies. The company is looking to start selling its policies online. When it comes to premium collection, among the 23 private sector life insurance providers, Aegon Life is only a step ahead of Sahara Life. The top position on the list is help by none other than LIC (Life Insurance corporation), which is the sole state-owned life insurer in the life insurance segment.

        During and interaction, Mr. Saibal Ghosh, Chief Investment Officer, Aegon Life Insurance, said that though market share is something that the company is constantly striving for, the current point of focus is to build the business more towards direct-to-customer and also increase adoption of digital mediums especially those with an omni-channel concept. Further adding to this statement, he said that the company’s focus will largely be on digital, considering that digital is set to the the next big thing. With this in mind, Aegon Life is seeking digital partners and also financial services companies which focus on digital.

        Talking of premium collection, Aegon Life earns around 30-35% or one-third of its business via digital platforms such as the mobile application or internet-based online channels. The remaining policies are sold through the company’s direct channel consisting of sales personnel.

        As per the data released by IRDAI (Insurance Regulatory and Development Authority of India), in October 2017, the insurer’s new premium collection increased by more than double Rs.9.37 crore, as compared to Rs.4.35 crore recorded in October 2016. During the period of April-October 2017-18, the insurer’s new premium increased by 74.4% to Rs.58.85 crore, as opposed to Rs.33.74 crore recorded earlier for the corresponding period.

        20th November 2017

      • Good teamwork & sound processes the reason behind IndiaFirst’s success, says CEO RM Vishakha

        IndiaFirst, one of the country’s leading insurance provider, commenced operations 8 years ago. Celebrating their anniversary recently, the company’s CEO, R.M. Vishakha took the occasion to speak about the company’s philosophy and core mission of securing lives and creating value.

        IndiaFirst started operations as the 23rd entrant in the insurance industry. Over the years, the company has grown to and now sits at the 13th position from the top, aiming to break into the top 10 list in the near future. Since its inception, the insurer has served about 10 million customers and currently has nearly 4.5 million on their books.

        The company made its first profit at the end of its 5th year of operation. In the last fiscal (2016-17) recorded a profit of Rs.35 crore on a gross written premium of Rs.2,265 crore. The insurer’s individual premiums grew at 82% in the last fiscal, while this fiscal, the figures continue to climb at a whopping 108%.

        Ms. RM Vishakha attributes this more than impressive growth to a balance of good teamwork and establishment of sound processes, which collectively have started to deliver results. She also mentioned the importance of setting up processes which help retain the passion of the sales force so that there is a balance which is always maintained between passion and processes.

        Also a part of retaining this balance is to weed out defects in the process which often resulted in mis-selling earlier. The company has set guidelines and a rule engine when it comes to selling policies to potentially vulnerable customers. This process helps check whether or not the policy has been sold to the right customer. In the same way, after the sale of the policy, the insurer carries out a back-end check which is part of the pre-issuance process where the customer is asked whether or not they have understood the product they have purchased and also to find out whether or not the policy may have been mis-sold to them. The company has also modified its sales process wherein any mis-selling of policies by sales persons will result in consequences. This move has cut mis-selling of policies by half and has increased customer persistency ratios from 63% to 74%.

        20th November 2017

      • SBI Life Likely To Lower Premiums To Gain Back Market Share From Private Players

        In an effort to catch up with its private sector rivals like ICICI Prudential Life, and HDFC Life, SBI Life is likely to lower the premium rates on it’s term plans by over a quarter in an increasingly competitive insurance market. SBI Life is expected to bring down their premium rates by as much as 30%.

        When compared, a 30-year-old, male, non-smoker individual shells out Rs.13,796 for a Rs.1 crore cover under the e-Shield term plan offered by SBI Life. After the premium cut, this cost would fall down to almost Rs.10,000. However, the same person would be paying Rs.10,798 for a similar plan by ICICI Prudential; Rs.8,968 at Kotak Life, and Rs.11,480 at HDFC Life.

        SBI Life said the reduction of premium rates has been facilitated by the lower costs for issuance of online term policies. When compared to other private players, SBI Life has the lowest expense ratios. The insurer has also improved its expense parameters which have, in turn, helped with effective pricing of the products.

        17th November 2017

      • Postal Life Insurance Likely To Become Major Business Segment For India Post

        The Department of Posts (India Post) has high hopes from the Postal Life Insurance (PLI) and Rural PLI schemes, which are expected to become a prospective business segment in the coming months. In Andhra Pradesh, the business turnover from these two insurance schemes contributes to nearly 10-12% of the business volume. This percentage is only expected to grow to almost 20% by the end of the current fiscal.

        Mr. V. Santhanaraman, Director of Postal Services, Kurnool, recently inaugurated the Aadhaar updation centre at the Tirupati Head Post Office. Speaking on the occasion, he said that India Post is planning to expand operations of several of it’s business propositions.

        PLI was first introduced in 1884 and was meant for employees working with the Posts and Telegraphs department. However, post-independence, the service was extended to State and Central Govt. employees after independence. A modified version, known as ‘Rural Postal Life Insurance’ was launched in the 1990s, in an effort to offer life insurance services to the rural sector.

        Considering the great success of the Postal Life Insruance scheme till now, India Post is now contemplating to extend this service to other sections of the society such as government school teachers, affiliated college lecturers, registered professionals and even employees who are hired by the State Govt. on contractual basis. Mr. Santhanaraman also announced that considering there is an ever-growing demandfor enrolment of new entries, Aadhaar updation centres will soon be converted into Aadhaar enrolment centres.

        16th November 2017

      • HDFC Standard Life Insurance Debuts On Bourses On Nov 17

        Following a very positive response on their public issue, HDFC Standard Life Insurance Company is all set to make their debut on bourses on 17 Nov 2017. The life insurance provider is a subsidiary of HDFC, one of India’s biggest housing finance company. For their debut, the issue price has been fixed at the higher end of the price band of Rs.275-290 per share.

        After ICICI prudential Life, and SBI Life, HDFC Standard Life will become the third life insurance provider to be listed on the exchange. Their Rs.8,695-crore initial public offer (IPO) which was held between 7 Nov to 9 Nov was subscribed 4.90 times. During the public offer, there was 16.60 times subscription in the qualified institutional buyers (QIBs) category, 2.29 times subscription in the non-institutional investor category, and 94% subscription in the retail investor category.

        HDFC Standard’s public issue consisted of 19,12,46,050 equity shares by HDFC, and up to 10,85,81,768 shares by Standard Life Mauritius. Currently, HDFC is the owner of 51.69% stake in the HDFC Standard Life joint venture, while the Mauritius based Stand Life owns nearly 29.35% stake. For the public offer, the global coordinators and book running lead managers were Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).

        17th November 2017

      • Tips On How To Choose The Best Life Insurance Policy

        Purchasing life insurance is a process which requires some caution and understanding. If you simply go and buy the first life insurance plan that is offered to you by an insurer, you can bet that it won’t be the right plan for you. Before you purchase life insurance, you must pay attention to your needs and requirements. And that is just the start. There is a lot more that is involved in the process of identifying your needs and matching them to the right life insurance plan that is available. We bring you some important tips which can make the task of selecting and purchasing the right life insurance plan easier for you.

        Never choose a life insurance policy based only on the premium. If you go for a cheaper policy, it is more than likely that the policy will not offer adequate coverage for your needs. Before you even begin to shortlist policies, evaluate your needs to find out which type of life insurance plan is best suited for you.

        It is most ideal to invest in a life insurance policy when you are young. This is because, the younger you are, the healthier you are likely to be, hence the lower your premiums are likely to be as well.

        There are various aspects which you must consider when evaluating a life insurance policy for yourself. Consider the policy’s benefits, features, sum assured it provides, the riders it offers, exclusions, terms & conditions, etc.

        Choose the policy period as per your requirement. When deciding the tenure of the plan, consider your liabilities and expenses such as mortgages, children’s upbringing, education, wedding, your retirement, etc.

        Take your age into consideration when you choose a life insurance plan.

        It is advisable to pick a plan which offers living benefits.

        Find out about the policy’s free look period before you buy it. Check the free look period of the policy in advance. It is advisable to compare between multiple policies online so you can see which one offers the benefits that you need and generally ticks all the boxes that you want it to.

        15th November 2017

      • Kotak Life Insurance Not Planning To Go Public In The Near Future

        Kotak Life Insurance, India’s 7th largest insurance provider, recently announced that it has no plans of getting publicly listed for at least the coming the 4 to 6 quarters. In the recent public offers launched by major players like SBI Life Insurance, and HDFC Standard Life, the large investors have given a fairly positive response. Mr. G. Murlidhar, Managing Director at Kotak Life said that the company does not have any plans on going public as of now. in terms of capital, the insurer is currently well-capitalized and is in no need of additional funds.

        As per reports, Kotak Life is not the only company which is refraining from hopping on to the IPO bandwagon. Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance, two of Bajaj Finserv’s insurance subsidiaries, are also not planning on going public anytime soon.

        2017 has seen the launch of some very successful IPO, especially those launched by big players like ICICI Lombard, General Insurance Corporation (GIC Re), and New India Assurance, which saw major subscription by institutional buyers. However, there was not much subscription from retail investors.

        Speaking of premium, Kotak Life registered a 21% year-on-year growth in new business premium business which stood at Rs.1385 crore at the end of October 2017. Kotak Life is now wholly owned by Kotak Mahindra Bank after the latter acquired 26% stake from Old Mutual Plc for Rs.1292 crore. Kotak Life also stood ahead of Life Insurance Corporation, having collected total new premium collected worth Rs.105939 crore by Oct 2017, while LIC collected Rs.77978 crore.

        14th November 2017

      • Deciding How Much Insurance You Need

        While buying life insurance is not difficult in itself, it is however the process that must be undertaken with care. Before buying life insurance, one needs to find out the amount of insurance coverage they actually require. There are some important factors which come into play when it comes to determining the life insurance coverage one requires, which are as follows:

        · Current assets – Take stock of all your current assets such as your bank savings, investments, PPF savings (Public Provident Fund), fixed deposits, etc. Remember, the greater your assets, the lower will be the insurance coverage you will need.

        · Current debts – Also take stock of all your current and likely future debts. The higher your debt (current and future), the higher will be the amount of insurance you will need to cover your dependents against the burden of that debt. Debts includes home mortgage payments, any financial liability, credit cards dues, any other loan payments, etc.

        · Your family’s requirements – When it comes to deciding your insurance requirements, it is crucial that you go over your family’s expenses. The few aspects to keep in mind are the cost of enabling your family to maintain their lifestyle when you are no longer around, in how many years will your minor children become self-dependent, have you enough savings so that your spouse may be financially secure after retirement, etc.

        · Additional expenses – Just like every individual is unique, every family will also be unique, in terms of their situation. Often, families have ailing elderly who need constant medical attention, or a specially abled child who might also be in need of specialized medical attention. If you have someone in your family who would require special attention in the future, this attention will also be an added cost. Make sure you account for this cost when calculating your insurance coverage, so such individuals are also well taken care of, if you are not around.

        13th November 2017

      • How Aviva’s Heart Care App Helped The Insurer Gain New Business

        With incidents of heart diseases on the rise, India has been rightly crowned as the ‘heart disease capital of the world’. As of 2015-16, only 30% of the country’s population has opted for health insurance. However, given the current stats, there is ample opportunity for insurers to gain market share. And Aviva Life Insurance has recently done so with great success, thanks to their digital endeavours.

        Aviva recently adopted a new business model which lays focus putting digital first. Aviva recently launched a new heart care product to expand their customer base. This product was launched across multiple digital channels such as social media, on the insurer’s online policy selling website Instalife, it’s mobile app, and the customer portal. Moreover, the insurer also launched a heart age calculator micro site to attract more customers.

        The entire process is fully automated from end-to-end and there is no human intervention. This product has enabled Aviva to carve a niche market segment that focuses on digitally savvy customers. The success of the product is quite evident as it helped the insurer increase their business volume by 10%, within the first six months. Aviva also recorded an uptick in their operational efficiency, thanks to the adoption of AI-based underwriting process.

        16th November 2017

      • Post-GST, Term Insurance Still A Preferred Tax-Saving Instrument

        Term insurance plans have always been and will continue to be popular, come what may. This is solely because of the benefits which these plans provide, which are financial security to your loved ones with a high sum assured at a low cost. Besides this, the other important benefit provided by term plans is tax savings.

        The Goods and Services Tax (GST) which was implemented in July 2017 has affected the demand and sale of innumerable commodities, some of which suddenly became more expensive, while a few became marginally cheaper. However, despite the changes, the demand for term insurance continues to remain, more or less, the same. Why? Here are some reasons:

          • Since GST has been rolled out, insurance experts have been of the view that one should look at the long term benefits provided by a life insurance policy, instead of delaying their purchase based on the 3% increase in premiums. This is because the policyholder is likely to get a higher sum assured at the same premium, not to forget the tax benefits on premium paid.

          • Term plans provide high sum assured at a low premium, which means that you can ensure greater protection of your loved ones at affordable costs. For instance, someone earning Rs.10 lakh per year can easily get a life cover worth Rs.1 crore.

          • Under Section 80C of the Income Tax Act, 1961, you can get tax exemption from your taxable income if you pay premiums for a term plan that you have taken either for yourself, your spouse, or your children. Tax benefits are provided for term plan premiums worth up to Rs.1.5 lakh.

          • Newer term plans which come with critical illness cover offer added tax benefits on premiums up to the amount of Rs.25,000 under Section 80D of the Income Tax Act, 1961. Also, benefits received by the beneficiaries are also exempt from tax under Section 10 (10D) of the Income Tax Act, 1961.

        16th November 2017

      • Life Insurance Corporation of India launches cancer cover policy

        LIC (Life Insurance Corporation of India), one of India’s oldest and most trusted life insurance provider has recently launched a new cancer cover health insurance policy. The sum assured under this policy ranges from Rs.10 lakh to Rs.50 lakh. This is a non-linked under which the premiums can be paid not only in a yearly but also in half-yearly mode.

        The new plan was launched today by Mr. R. Thamodharan, Zonal Manager for LIC South Zone. In addition to being available offline, this plan can also be purchased online, as the insurer informed in a press release. All individuals in the age group between 20 years to 65 years are eligible to take this plan. The release for the launch also mentioned that this plan has been introduced especially considering the ever-increasing incidents of cancer being diagnosed and the extremely prohibitive costs of treatment that accompany. This plan will work to protect individuals from being adversely affected financially if they are diagnosed with cancer.

        Under this plan, 25% of the lump sum benefit payable will be paid if the policyholder is diagnosed with an early stage of cancer. In addition to this, the premiums payable towards the policy will also be waived for the coming 3 years. In case the policyholder is diagnosed with a major stage of cancer, 100% of the Sum Assured or Increased Sum Assured under Option II of the plan will be payable. From this amount, any claims paid towards an earlier stage of cancer will be deducted.

        Under Major Stage cancer income benefit, 1% of Sum Assured will paid per month to the policyholder for a period of 10 years, whether or not the life assured survives the next 10 years or not. Also, in case of major stage cancer diagnosis, all future premiums payable towards the policy will be waived.

        15th November 2017

      • Top Term Insurance Plans For Working Women

        Working professionals, especially if they are the sole income earners in their household, have much to gain from a life insurance plan. Be it a man or a women, life insurance can provide financial security to their loved ones and families in the time of misfortune. Among the plethora of plans available out there, a term insurance plan is often the best option, not only in terms of the coverage it provides, but also economically. Those who are the sole breadwinners of their household must not ignore or delay getting a term insurance plan as it may come in necessary when you least expect it.

        For working women, especially single working mothers, purchasing a term insurance plan is absolutely necessary. Here, we bring you some quick points to remember when you are looking to get a term plan.

        · Choose only as per your needs – term plans are simple and easy to understand, and there are plenty of them available online. Get a plan only after you have assessed your needs.

        · Longer coverage period – When you invest in a term plan at a young age, it is wise to take a plan with a longer coverage term. For most term plans, the minimum entry age is 18 years, and the maximum is usually fixed at 65. Do remember, as your age increases, the premium of the term plan will also increase assuming greater risk involved.

        · Single mothers – For working women who are also single mothers, it is absolutely necessary to purchase a life insurance plan. Given that your child is dependent on you for everything, it is important you secure your child’s future in case you are no longer there to provide for them. In case of single parents with children, the coverage amount will be determined based on the parent’s income. If you have a loan, and a young child, your risk factor will automatically go up.

        14th November 2017

      • On Final Day Of IPO, HDFC Standard Life Insurance Shares Subscribed 4.89 Times

        On the closing day of the initial public offering (IPO), HDFC Standard Life Insurance Company witnessed a 4.89 times subscription. While the total issue size of the IPO is 21,97,59,218 shares, it received bids for a total of 1,07,50,87,700 shares as per the NSE data. Also, the reserved category for non-institutional buyers and non-institutional buyers were subscribed by 16.60 times and 2.29 times respectively. The total number of applications received for the IPO is 11.37 lakh applications.

        10th November 2017

      • What is the Right Way To Determine The Amount Of Your Insurance

        If you have any experience dealing with the insurance brokers or agents, they would tell you to take insurance for the value equal to seven times of your annual salary. In a real life scenario, that cannot be the ideal way to determine the value of your life insurance.

        The basic idea of life insurance is to replace income when the insurer is not available to take care of the expenses of the family. Thus, the correct way to determine the amount of life insurance would be to see if it covers the expenses it should cover in the prevailing times minus the value of already existing assets that can be used.

        Therefore, never try to buy a life insurance policy by multiplying 7 or any other number with your annual salary. The right value can be obtained by determining the expenses and seeing what part of it can be covered by your current financial assets and social security schemes.

        10th November 2017

      • Insurance Industry Needs To Come With Innovative Plans To Drive Growth

        If we look at some of the leading insurance markets in the world, India lags behind by a huge margin in bringing innovation to the overall insurance industry. Huge demographic changes are taking place in India at a very rapid pace as the socio-economic profile of the country is undergoing a transformation.

        With one-third of the population below the age of 35, there is a huge market that can be catered to. The Life Insurance industry must drive innovation to help citizens with better financial security plans during and after their life. The scenario demands product designers to go beyond the basic idea of insurance to shift from luxury to necessity.

        9th November 2017

      • Linking Aadhaar With Insurance Policy To Be Mandatory

        The Insurance Regulatory and Development Authority of India (IRDAI) has recently issued a circular for all insurance providers referring to a gazette notification of the central government which makes Aadhaar and PAN/Form 60 mandatory to avail all kinds of financial services. The insurance regulator has made it mandatory for insurance providers to link every individual policy with the respective Aadhaar. The circular will have legal implications and life and general insurance companies have to implement the same immediately. The process to link Aadhaar with the insurance policy will be similar to that of linking Aadhaar with the bank account.

        9th November 2017

      • HDFC Life’s IPO Gets Fully Subscribed On The Second Day

        The Initial Public Offer by HDFC Standard Life Insurance has been fully subscribed on the second day. The issue has already received a total of 2,68,35,900 bids at the cut-off price and a total of 17,79,06,400 bids as on Tuesday. Post the IPO, the market capital of the third largest private sector life insurance company will range between Rs.55,247 crores to Rs.58,260 crores at the lowest and highest share price band. The HDFC Standard Life IPO will close on November 9th.

        8 November 2017

      • HDFC Standard Life Insurance IPO To Begin On November 7th

        HDFC Standard Life Insurance Company’s IPO of Rs.8,695 will be open for subscription from 7th November to 9th November. The Insurance arm of the Housing Development Finance Corporation (HDFC) will be offering up to 29,98,27,818 equity shares, out of which up to 10,85,81,768 shares will be offered for sale by Standard Life (Mauritius Holdings) Limited which holds 34.75% shares in the company.

        The price band for the IPO will be Rs.275-290 each share and bids will be allowed for a least of 50 equity shares and in multiples of 50 for a greater volume. The IPO is aimed at enhancing the brand name of 'HDFC Life' and to offer liquidity to its current shareholders.

        7th November 2017

      • Life Insurance Is A Selfless Act To Ensure Protection For Your Loved Ones

        Even if you cannot enjoy the benefits of life insurance while you are alive, it is something to do for your loved ones and their wellbeing. Life insurance is something that people do not tend to think about when they are young, and free from commitments. However, as people grow older and take on bigger responsibilities such as getting married, buying a house, or having children, there are certain things they need to seriously give a thought to. One such thing is getting a life insurance policy.

        Besides protecting your family against any unanticipated events, a life insurance can have several other financial and tax benefits. For instance, when you apply for a home loan, it is better to also have a life insurance policy to protect your family from the debts that are to be repaid by you. While many people look at life insurance as an investment option these days, it can be instrumental in providing your family the much needed financial assistance in their most difficult times.

        7th November 2017

      • Insurance Industry Sees A 113% Jump In Premium Collection Since Demonetisation

        After government’s demonetisation exercise that took place in November 2016, insurance firms have collected Rs.16,061 crores of first-year premium which is 113% more than the previous year’s collection (As per Insurance Regulatory and Development Authority of India).

        The biggest beneficiary of the nullification of high currency notes was the life insurance industry. According to experts, the demonetisation exercise along with some other fiscal reforms will lead to a structural change in the way savings are channelised in the country. In the first half of the current economic year, the insurance industry witnessed an 18% growth while in the second half it grew by 23%.

        6th November 2017

      • Bajaj Allianz To Not Go For An IPO In Near Future

        Sanjiv Bajaj, Managing Director of Bajaj Finserv clarified recently that the two insurance companies namely Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance are not looking for an IPO in the near future.

        In a financial conclave organised by the Bengal Chamber of Commerce, Sanjiv told that the two subsidiary insurance companies of Bajaj Finserv are well capitalized and that the solvency ratio of the company stands at 608% as on the end of September month.

        Several insurance companies including SBI Life Insurance, New India Assurance, and GIC have launched IPOs in the past few months. The IPO of HDFC Standard Life Insurance will also commence from November 7.

        6th November 2017

      • Life insurance Is More Than an Investment

        There is a growing trend when people are looking at insurance as an investment option rather than a protection. Especially, millennials prefer to invest their money into financial products instead of insurance as they expect quick and hefty returns from their investments and think there is ample time to get ready for the eventualities of death.

        Insurance is not an investment but a tool for protection in its truest sense. In India, people worry about the unforeseen events of life and what will happen to their loved ones after they are gone. But a very small percentage of people buy an insurance to secure their families in their difficult times. It’s time when people should realise that it’s not the return on investment (ROI) that they should look for when they buy a life insurance policy, it is the kind of benefits that their loved ones will receive after they are gone.

        A term insurance policy can be the most cost-effective way to safeguard the interests of your family in the event of your demise. While it is essential to have a mix of safe and risky assets, a term insurance policy should not be ignored.

        3rd November 2017

      • Additional Aspects of Insurance You Need To Be Aware of

        People in general are aware of the basic concept of insurance but the complexities around it tend to discourage them. However, there are certain aspects of an insurance that can have a range of benefits for policyholders. For instance, after a policy matures, the insured gets a loyalty addition to keep their policy active throughout the policy tenure.

        Most people are not aware of a few additional aspects such as ‘free look period’ and ‘premium reduction’. The ‘free look period’ feature allows policyholders to terminate the policy if they do not find the terms, policies, or the benefits of the policy satisfactory. The Insurance Regulatory and Development Authority of India (IRDA) allows 15-20 days of ‘free look period’ for the policy tenure of less than three years.

        The ‘premium reduction’ feature on the other hand enables teetotallers and non-smokers to avail insurance at lesser premiums. The insurance provider executes a procedure called ‘underwriting’ to assess the health of a policy applicant. Based on certain observations, the insurance provider determines if an applicant is eligible for a lower premium.

        Apart from the above-mentioned benefits, a policyholder may also opt for other add-ons with a little more premium. Before buying an insurance policy, policy seekers should compare various available options through credible third-party websites and choose the one that best suits their requirements.

        3rd November 2017

      • Increase your Life Insurance Coverage with a Rider

        A rider is an add-on cover than one purchases with his/her insurance policy in order to increase the level of coverage offered by the base policy. Riders are usually available for an additional premium. The most popular riders for life insurance policies are the Permanent Disability Rider and the Accidental Death Rider. If the policyholder meets with certain eventualities that fall under the rider’s inclusion criteria, the rider sum assured, in addition to the base policy’s sum assured, will be payable.

        Features of a Rider

          • A rider is usually available at a lesser cost than if you were to purchase a standalone insurance policy.

          • Since the rider is linked to one’s base policy, the policyholder is only managing a single insurance policy and not two policies.

          • When purchasing a rider, one must pay attention to the sum assured. In most cases, the rider sum assured cannot exceed the sum assured of the base policy.

        2nd November 2017

      • HDFC Standard Life Insurance Open to Acquisitions

        HDFC Standard Life has said that it is open to acquisitions of both big and small insurance players, including the merger with Max Life, which fell apart earlier this year, provided prior issues are resolved. The insurance firm’s Rs.8,700 crore IPO will be opening on 7 November 2017. The company will be trading at a price band of Rs.275-Rs.290 per share.

        The company is a joint venture between HDFC Ltd and Standard Life. By way of the IPO, HDFC ltd will be diluting 9.52% of their stake in the insurance firm and Standard Life will be selling a 5.4% stake. At present, HDFC and Standard Life own a 61.21% and 34.75% stake in the insurance firm, respectively. After the IPO, this will reduce to 51.69% and 34.75%.

        2nd November 2017

      • Star Health Insurance launches Insurance Plan for Cancer Patients

        Star Health Insurance and Allied Insurance have launched an insurance plan especially catered for individuals diagnosed with Cancer – the Star Cancer Care Gold. The insurance plan has a sum insured up to Rs.5 lakh, and can be purchased for anyone between the ages of 5 months and 65 years, provided they have been diagnosed with either Stage 1 or Stage 2 of the disease. The policy can be purchased by individuals without undergoing a pre-policy medical screening.

        The policy also covers the risk of disease recurrence, spread of the disease, and a second diagnosis of cancer. Hospitalisation expenditures, surgical/non-surgical treatment, and interventional treatment for non-cancer related diseases and ailments are also covered under this policy. Just like a regular health insurance policy, this plan also provides members an accident cover. The insurer also has a pan-India network for easy accessibility.

        News and updates on Cancer insurance

        25 October 2017

      • Things to Consider before Purchasing a Life Insurance Policy

        There are several important benefits to purchasing a life insurance policy. However, before you purchase a life insurance policy, here are a few factors you should consider:

        Firstly you will need to do your research on the types of insurance plans that are available in the market, and opt for one that best suits your needs.

        You can then proceed to comparing between various plans available in the market, and opt for one with a competitive price.

        Next, you will need to choose a preferred sum assured amount. Keep in mind that the sum assured you opt for will have to be large enough to meet the needs of your loved ones.

        Look out for any add-on riders that you can purchase to enhance the policy.

        Go through the policy brochure or meet with a representative to understand the policy terms and conditions in detail.

        Lastly, you will need to pay you premium as per the mode you have opted for.

        31st October 2017

      • 3 Mistakes you Should Avoid when Purchasing a Life Insurance Policy

        Purchasing a life insurance policy is of the utmost importance if you want to secure the lives of your dependents. However, before you purchase your life insurance policy, ensure that you don’t commit these common mistakes, in order to make the most of your policy benefits.

        Underestimating one’s life span when opting for a policy tenure: Life insurance policies come with a certain policy tenure and coverage will only be provided within that period. If you outlive your policy, it can be hard to extend the policy coverage at that age. Hence, ensure that you opt for a large tenure when purchasing the policy.

        Assigning a nominee: The death benefit is usually paid to the nominee that you assign at the time of purchasing the policy. If you don’t assign a nominee, there could be legal complications when it comes to paying out the benefit. In addition, you must also ensure that you provide the right contact details of your nominee, so the insurer can reach them without delay.

        Buying a policy after an illness has been diagnosed: While insurers might provide policies to individuals who have already been diagnosed with an illness, you must note that the premium can be significantly higher. Hence, ensure that you purchase your policy well in advance, before the onset of any illnesses.

        31st October 2017

      • How To Claim Maturity Benefits From Life Insurance Policies

        A life insurance policy that promises maturity benefits comes with dual benefits. Firstly, the family gets death benefits if the policyholder passes away or gets permanently disabled. Secondly, and more importantly, if a policyholder outlives the tenure of the policy, they are entitled to receive maturity benefits which may sometimes be more than what their family would receive in case of the death of the insured. Filing a maturity claim may involve minimum paperwork and can be easier than you think. Read on to know the documents required and the process to claim maturity benefits on your life insurance policy.

        30th October 2017

      • You May Have Life Insurance, But Get Your Perspective Right

        When it comes to the life insurance industry, people either have extremely positive or extremely negative sentiments. A majority of people in India lack the required awareness about life insurance and have formed opinions based on limited understanding of the concept. While they perceive it to be only limited to death benefits, the real scope of a life insurance policy can be extended to three main aspects, namely protection, savings, and investment. Read on to know the important factors that you must consider before getting a life insurance policy and how you can benefit from different types of life insurance policies.

        30th October 2017

      • HDFC Standard Life IPO to Launch on 7 November

        HDFC Standard Life Insurance will open its IPO on 7 November 2017. The firm’s IPO is expected to close on 9 November. The firm’s joint venture partners HDFC Ltd and Standard Life Mauritius will be selling a 9.55% and 5.42% stake in the company, respectively. Anchor investors will be permitted to start subscribing on 6 November, while the public will have to wait till 7 November.

        The promoters of the life insurance firm are expecting to raise around Rs.7,500 crore from the IPO. The price band per share is yet to be decided. Presently, HDFC and Standard Life hold a 61.41% and 34.86% stake in HDFC Standard Life, respectively. The remaining shares are owned by PremjiInvest and employees.

        26th October 2017

      • Aegon Life Launches New Term Insurance Plan – Aegon Life iTermForever

        Insurance firm Aegon Life has launched a new term insurance plan – Aegon Life iTermForever – which will provide policyholders a risk cover for life. The plan, which combines the benefits of a term insurance plan and a whole life plan, is a non-participating, non-linked, whole of life, term insurance policy. A few key features of the plan are:

        • In case the policyholder passes away, the insurer will pay a lump sum benefit to the nominee.
        • Policyholders have the option to pay their premiums for a limited period of time, and enjoy the policy benefits for life.
        • Additional riders and tax benefits can be availed by the life assured.
        • Female policy buyers and non-smokers are offers a lower premium rate.
        • Policyholders can also increase the level of protection, as per their needs, by paying an extra premium.
        • The plan can be purchased by any individual between 18 years – 65 years of age, for a minimum Sum Assured of Rs.25 lakh.

        26th October 2017

      • Guide to ensure a speedy and smooth life insurance claim settlement

        In the unfortunate demise of the life insured, it is important to ensure that the beneficiary or nominee gets a speedy life insurance claim settlement. There are certain steps one can take to ensure a smooth settlement of a life insurance claim which include:

          • The proposer must ensure the proposal form is filled properly. Before filling the form, it is important to read the terms and conditions of the policy to avoid any after-sale shock. If there are any objection to the terms and conditions, the policy can be cancelled during the free-look period.

          • Submit the relevant documents such as ID proof, age proof, address proof, and medical reports at the time of purchasing the policy in order to avoid claim rejection on the basis of furnishing false or misrepresented details.

          • Nominees should be appointed without fail and informed about the policy documents. In the absence of a nomination, the would-be nominee or beneficiary will have to run around to obtain a succession certificate.

          • Keep the insurance premium payment regular to ensure the policy is active and doesn't lapse. Lapsed policies can be converted to paid-up policy wherein the sum insured is reduced.

          • Disclosure of any pre-existing health conditions and any other life insurance policies one may hold is important so that a claim can't be denied on the basis of mismatched information.

        25th October 2017

      • ICICI Prudential Life reports net profit of Rs.421 crore in Q2

        India's largest life insurance company by new business income in the private sector, ICICI Prudential Life Insurance reported Rs.421 crore net profit in the second quarter. Shares of ICICI Prudential Life increased to 0.19% which is Rs.390.80 on the BSE. The insurance company has announced Rs.3.40 interim dividend per equity share of Rs.10 face value for the half year which ends on 30 September 2017.

        Taking advantage of the rally in stock markets, the insurance company is more focused on Unit Linked Insurance Products (ULIP). The company also posted a 17% increase in new business annualised premium. 80% contribution to the new business premium is from ULIPs. Executive Director of the insurance company, Sandeep Batra said that there has been an improvement in new business margin by 150 bps as the company focussed on protection and savings products.

        25th October 2017

      • Kotak General Looks To Expand Its Customer Base By Way of Acquisition

        Kotak General Insurance is open to acquisitions and is looking for inorganic opportunities to expand its customer base. CEO Mahesh Balasubramanium hinted that an acquisition would depend on the returns that can be generated through the activity. The subsidiary of Kotak Mahindra Bank has been growing at a rate of 15% per annum and generating more than Rs.1 lakh crore of premium each year. The company’s prime objective has been to expand its retail insurance business in India with major focus on health and motor insurance.

        24th October 2017

      • How to get adequate life cover by choosing the right life insurance policy?

        Life insurance is important to secure the financial future of your loved ones. Yet, India is one of the Asian countries with the highest level of underinsurance. In the past, customers were dependant on third-parties like insurance agents and brokers to make insurance decisions. At present, the consumers are equipped with insurance information in order to make their own decisions. Here is a guide to help you make important financial decisions like choosing a suitable life cover for you and your loved ones:

        Purpose of buying life insurance: Most individuals buy life insurance for investment or as a tax-saving tool. Life insurance is mainly for protection. Understanding this will help you choose adequate life cover and prevent you from being underinsured.

        Assess your financial needs: Based on your current income and expenses, choose a life cover that is not only affordable but also provides adequate financial protection to your family in your absence.

        Suitable life insurance policy: Once you have chosen a suitable policy, take into account the policy inclusions, exclusions, cancellation, grace period, beneficiaries, renewability terms, etc.

        Select the right insurance company: A high Claim Settlement Ratio (CSR) of an insurance company indicates the capability of the insurer to settle a high number of claims in that particular financial year. The claim process and grievance redressal procedure of the insurer have to be easy, simple, and effective.

        Sum Assured and Policy Term: Compare various life insurance policies across top insurance providers on a third-party website and get an instant quote on your chosen policy. Determine how much sum assured or life cover you require and until what age or policy term you need coverage.

        Policy return: After purchasing a policy, if you have any objections to its terms and conditions, you have a free-look period of 15-30 days within which you can return the policy and get a refund on the premium paid.

        23rd October 2017

      • A guide to buy a term insurance plan online

        Term plan is a traditional life insurance plan that offers pure life cover or protection for a specific period of time or term to the life insured. There is no profit component involved in a term plan. Term insurance policies are affordable and hence the most popular life insurance product in India. Term insurance plans can be purchased in 2 ways:

        • Offline method: Visit a branch of the insurance company in your locality. Get in touch with an insurance agent or broker who can guide you in selecting a suitable term insurance plan. Fill out a proposal form and make premium payment at the insurer's branch. After successful verification of your proposal form and health details, the insurer will issue your policy documents.
        • Online method: Visit a third-party website to compare various term plans across the top insurance providers.
          • Enter your personal details such as age, gender, place of residence, lifestyle habits like smoking and drinking, income, and expected life cover.
          • You will be given a list of suitable plans based on the details provided by you. Compare the features and benefits of each plan and choose the one that best meets your insurance needs.
          • To purchase the term plan, you can either carry out the process on the third-party website or visit the insurer's website. Upon successful payment of insurance premium payment using net banking, debit card or credit card, the insurer will send the confirmation to your registered email ID.
          • A detailed proposal form has to be filled out by the customer and submitted along with ID proof, address proof, and medical reports. If needed, the customer has to undergo a medical test.
          • After successful verification of the proposal form and the medical reports, the insurance company will issue the policy and send the policy documents to the customer.

        23rd October 2017

      • Agriculture insurance companies to settle 2016-17 kharif and rabi season claims this month

        According to C. Parthasarathi, the Agriculture Production Commissioner, only Rs.100 crore out of Rs.154.36 crore claim amount has been given to the bank branches where the farmers who have been insured hold their savings accounts. By 20 October, all agriculture insurance companies have been asked by the state government to settle claims related to the 2016-17 Kharif and Rabi seasons. The insurance companies must furnish details of the district and village-wise crop insurance in the assembly session conducted at a later date in October.

        18th October 2017

      • 17 October is international day of Eradication of Poverty

        The year, 2017 is marked as the 25th anniversary of UN declaration of 17 October as the international 'Eradication of Poverty' day. Poverty can be eliminated by providing the right financial tools to the poor.

        Poor people live in risky situations where there is a high probability of unemployment, death of a breadwinner or property loss. To protect themselves against such unfortunate events, easy access to the right financial tools such as health and life insurance products can help them cope. Studies have shown that affordable microinsurance designed for the poor can improve their healthcare and income crisis.

        In developing countries, insurance coverage for the poor is not predominant. In India, more than 80% of the Below Poverty Line households are not covered. Fortunately, India is a major market for the fast-growing microinsurance segment at 65%. About 37 million people are covered under Rashtriya Swasthya Bima Yojana (RSBY), a national health insurance scheme funded by the government. Mobile banking and digital payments are increasing the chances of reaching poor households. A major challenge of microinsurance is ensuring sufficient coverage and affordability.

        17th October 2017

      • Benefits Of Life Insurance For Women

        Life insurance is a commodity which offers the same benefits to men and women. Whether it is a man or a woman, either of them can apply and get life insurance coverage not only for themselves but also their loved ones. Moreover, as more and more women become socially and financially empowered, it has become even more important for them to not only insure themselves but also their loved ones against uncertainties that may strike unpredictably. Whether it is a working woman, or a housewife, women are contributing immensely to every sphere of life. At home, women juggle the challenging task of managing a household, along with raising kids. A growing number of households now have women as sole income earners or co-income earners. This makes them a very valuable part of the household, and their absence can bring about great financial turmoil. Life insurance offers a variety of valuable benefits for women. Besides providing financial security, it can also bring immense peace of mind.

        20th October 2017

      • Get Rs.2 lakh Life Cover @ Rs.330 with Pradhan Mantri Jeevan Jyoti Bima Yojana

        Life insurance is a necessity for all of us, especially for those who are supporting dependents financially. However, many people end up skipping life insurance because of its cost. While life insurance has become quite affordable in today’s times, it still may not be affordable enough for many people. Considering this, the government of India has introduced a special life insurance scheme known as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

        The unique selling point of this scheme is its affordability which lets the common man get access to the something as basic as life insurance in a simplified manner. One can avail life insurance cover worth Rs.2 lakh for a premium as low as Rs.330 per year. The main objective of launching this scheme has been to provide the benefit of life insurance coverage to the general population. The cover provided under the scheme is valid for one year and can be renewed on a yearly basis.

        This scheme can be taken from LIC and a few other private life insurance providers. Customers can also visit their bank to know more regarding enrolment for this scheme as several banks have also partnered with insurance providers to promote these schemes

        13th October 2017

      • 19.3% profit growth for ICICI Lombard General Insurance in Q2 FY18

        ICICI Lombard General Insurance has reported a 19.3% rise in net profit in the second quarter of FY18. In Q2 FY18, the profit after tax is at Rs.204.04 crore while in Q2 FY17, it was Rs.170.95 crore. After a Gross Direct Premium Income (GDPI) of Rs.3,173 crore, the insurance company has announced a dividend of Rs.0.75 per share. The GDPI increased by 16.7%, from Rs.5,565 crore in FY17 to Rs.6,494 crore in the first half of FY18. MD and CEO of ICICI Lombard, Bhargav Dasgupta said that the company is focusing on bringing down the combined solvency ratio. He also said that the loss ratios have improved in all segments except health, motor, marine, fire, and crop insurance.

        18th October 2017

      • Get Rs.2 lakh Life Cover @ Rs.330 with Pradhan Mantri Jeevan Jyoti Bima Yojana

        Life insurance is a necessity for all of us, especially for those who are supporting dependents financially. However, many people end up skipping life insurance because of its cost. While life insurance has become quite affordable in today’s times, it still may not be affordable enough for many people. Considering this, the government of India has introduced a special life insurance scheme known as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

        The unique selling point of this scheme is its affordability which lets the common man get access to the something as basic as life insurance in a simplified manner. One can avail life insurance cover worth Rs.2 lakh for a premium as low as Rs.330 per year. The main objective of launching this scheme has been to provide the benefit of life insurance coverage to the general population. The cover provided under the scheme is valid for one year and can be renewed on a yearly basis.

        This scheme can be taken from LIC and a few other private life insurance providers. Customers can also visit their bank to know more regarding enrolment for this scheme as several banks have also partnered with insurance providers to promote these schemes

        17th October 2017

      • Postal Life Insurance Now Open To Employees Of Listed Companies: Department of Posts

        Bringing good news to many, the Postal Dept. of the Telecom Ministry recently announced that the postal life insurance scheme can now be availed not only by professionals, but also employees working in listed companies as well. Union Telecom minister, Mr. Manoj Sinha said that the PLI (Postal Life Insurance) offers the highest bonus at the lowest premium, when compared to many public and private insurance providers. The scheme can now be availed by a number of professionals such as engineers, doctors, lawyers, architects, Management Consultants, bankers, charted accountants, etc., as well as by employees of companies which are listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

        Postal Life Insurance is one of the oldest life insurance scheme introduced as far back as 1884, for the benefit of Government and semi-Government employees. The Rural Postal Life Insurance (RPLI) was launched in 1995 with the objective of providing insurance cover to the weaker sections and women living in rural areas. The USP of the PLI and RPLI is high bonus at low premiums.

        13th October 2017

      • Life Insurers Record 25% Growth In New Business Premium In Sep

        According to reports, the life insurance industry has collected new business premium worth Rs.20,892.7 crore in September 2017, achieving a year-on-year growth of 24.6%. In September 2016, all 24 life insurance providers collectively clocked new premium of Rs.16,767.41 crore, as per data released by Insurance Regulatory and Development Authority of India (IRDAI).

        The state-owned Life Insurance Corporation (LIC) has recorded a growth of 37.6 percent. The insurer collected total premium worth Rs.11,117.48 crore in September 2016. As for the remaining 23 privately led insurance providers, SBI Life recorded a drop in its new business premium which stood at Rs.817.81 crore in September 2017 as compared to Rs.1,279.05 crore from last year. ICICI Prudential Life's saw a 14.9% growth in new business premium which stood at Rs.745.73 crore; HDFC Life saw growth of 24.7% and collected premium worth Rs.1,119.04 crore; Max Life rose by 24% and recorded premium collection worth Rs.396.63 crore in Sept 2017; DHFL Pramerica Life recorded the second highest growth of 64.8%, collecting new premium worth Rs.118.38 crore, and Bajaj Allianz recorded the highest growth, of 90% in new business premium, which stood at Rs.841.19 crore.

        Some insurers, however, registered a decline in new business premium. Among those were Birla Sun Life which reported a 21% decline in new premium, collecting Rs.359.45 crore, and Sahara Life's registering the biggest drop of 95% and stood at Rs.17 lakh as against Rs..14 crore in September 2016.

        12th October 2017

      • LIC Ahead Of Private Players In New Premium Collections & Growth At End Of Q2

        As per data released by the Life Insurance Council, state-owned insurer, Life Insurance Corporation (LIC) has recorded 23.68% growth, year-on-year, in new business premium collection, for the quarter of April to September 2017. This is phenomenal considering the growth of 14.42% which has been recorded by private sector insurers.

        According to data collected, life insurers collected new biz premium worth Rs.92,065.01 crore in the first 6 months of FY18, recording growth of 21.14%. LIC single-handedly managed premium collection worth Rs.68,224.29 crore, whereas private sector players managed to collect Rs.23,840.72 crore during this period.

        Under general insurance, total premiums collected during April to September were Rs.72,564.42 crore, amounting to 19.46% growth on a year-on-year basis. Out of this, private sector insurers registered 25.41% growth, whereas the public sector players saw a lower growth of only 14.42%.

        In terms of market share, the private sector general insurers held 48.17% whereas the public sector players held a majority share of 51.83 percent share. (including specialised insurers). Among other insurance segments, standalone health insurers recorded the maximum growth of 42.56% in the 2 quarters of the financial year, as compared to last year.

        11th October 2017

      • Reliance Nippon Life IPO Gets Approval From SEBI

        Reliance Nippon Life Asset Management Ltd. recently received the green signal from the Securities & Exchange Board of India (SEBI) to launch its approximately Rs.2,000 crore initial public offer. Reliance Nippon Life, the Reliance Group firm led by Anil Ambani, will have the distinction to be the first ever asset management company in India to launch an IPO. UTI Mutual Fund, a rival of Reliance Nippon, has also been planning an IPO for some time.

        According to the latest update on the Securities and Exchange Board of India (SEBI) website, the regulatory board has given its observations regarding the proposed Reliance Nippon IPO. According to the draft papers filed with SEBI, the company’s public issue will consist of 2.45 crore shares under fresh issue, in addition to 1.12 crore shares being sold by Reliance Capital, and 2.55 crore shares being sold by its partner, Nippon Life Insurance Company.

        The size of the proposed IPO is expected to be approximately 10% of the post issue paid-up capital of the company. Reliance Nippon is a joint venture between Reliance Capital of India and Nippon Life, Japan, and is the asset manager to Reliance Mutual Fund. For the initial share sale, the global co-ordinators and book running lead managers are JM Financial, CLSA, Nomura and Axis Capital. Reliance General Insurance has recently filed its draft papers with SEBI for the upcoming IPO. Other companies of the Anil Ambani Group which are already listed on the stock exchanges are Reliance Power and Reliance Communications.

        11th October 2017

      • IndiaFirst Life Looks To Break Even By 2019-2020

        IndiaFirst Life Insurance Company (IFLI), is all set to complete 8 years in the industry in November 2017, and according to a company official, the insurer also expects to break even by the year 2019-2020. RM Vishakha, Managing Director & CEO, IFLI said that the company has been accumulating modest profits in the last three years with a net profit of Rs.35 crore recorded in the last fiscal (2016-17). In the same light, the insurer is hopeful of earning a profit of Rs.50 crore this year as well.

        Currently ranked at the 12th spot, IndiaFirst is also aiming to become a part of the top 10 league of the insurance industry in terms of retail new business premium. Ms. Vishakha said that IndiaFirst is hopeful to achieve inorganic growth. The company, she said, is open to acquisitions which are the right fit.

        IndiaFirst is a joint venture between Andhra Bank, Bank of Baroda, and the UK-based financial and investment company Legal & General.

        10th October 2017

      • Tata AIG, ICICI Lombard, HDFC Ergo Likely To Witness Surge in Demand For D&O policies

        Following the suggestion by the Kotak Panel that Directors' and Officers' Liability (D&O) cover be made compulsory for independent directors, general insurance companies like HDFC Ergo, ICICI Lombard, and Tata AIG, and HDFC Ergo are expecting to see an upsurge in the demand for their Directors' and Officers' Liability (D&O) policies. Last week, the panel put in the suggestion that it must be compulsory for top 500 companies (as per market capitalisation) to get D&O insurance for its independent directors.

        this move has been suggested in order to provide security to directors of companies who can be held personally liable for decisions made not only by them but also by their fellow directors. As a result, they could face financial loss due to litigation from shareholders, creditors, competitors, suppliers, and regulatory bodies. This is where a Directors’ & Officers’ Liability policy will help in providing protection. These policies have 2 parts – one part covers breach of duty, neglect, misstatements or errors by the company or its employees, and the other part covers the same if done by directors.

        Mr. Sanjay Datta, Head of underwriting, ICICI Lombard General Insurance said that they expect greater demand for D&O policies following the recommendation forwarded by the Kotak panel to provide mandatory cover to independent directors. Citing situations of board fights such as Satyam, Mr. Dutta said that such events have resulted in an upsurge of enquiries for D&O cover.

        10th October 2017

      • SBI Life Planning To Open Branch in Bahrain By End of 2017

        In a move that will have SBI making its debut in the Middle East insurance market, SBI Life Insurance is looking to open their first branch in Bahrain by the end of 2017. According to company officials, the insurer has received the required regulatory approvals from the Central Bank of Bahrain and IRDAI (Insurance Regulatory & Development Authority of India) for opening the branch by December 2017.

        Initially, SBI Life's market is going to be limited only to that within Bahrain. However, the company plans to leverage its one-branch presence in the country to not only service the products it offers but also establish tie-ups with local banks with time. An official involved with the opening of the branch said that initially, SBI will be making use of the bancassurance channel. They are also looking towards establishing tie-ups with banks later on.

        In their soon-to-be-opened branch, SBI Life plans to offer traditional, unit-linked and term insurance products. The major target group for this branch will be NRIs living in Bahrain, but the branch will also serve local residents as well.

        SBI Life was established as a joint venture between India’s largest lender, State Bank of India and BNP Paribas Cardif, a French financial services company. At present, the only other Indian insurance company which has a presence in the Gulf is the government-run LIC (Life Insurance Corporation) which has headquarters in Bahrain. The international branch of LIC is known as LIC International which operates in GCC (Gulf Corporation Council) countries of Oman, Bahrain, Qatar, United Arab Emirates, Kuwait, and Saudi Arabia.

        9th October 2017

      • Policyholder Claims Cannot Be Denied Due To Delay In Filing: Supreme Court

        In a ruling that will bring immense relief to millions of policyholders around the country, the Supreme Court has ruled that insurers cannot deny a policyholder’s insurance claim if the delay in filing the claim has been satisfactorily explained. This ruling comes after a recent case presented before the court wherein a policyholder was denied their claim for a stolen vehicle. The bench of justice comprising of Mr. R.K. Agrawal and Mr. S. Abdul Nazeer said that the if insurers reject claims based solely on technical grounds by default, the same will only be a precedent in policyholders and customers, in general, losing confidence in the insurance industry as a whole.

        Speaking on the ruling, the Supreme Court has said that if the policyholder can satisfactorily explain the cause of delay in claim filing, the claim cannot be rejected or denied by the insurer, solely on the ground of delay. The court also added that it would be unreasonable and unfair on the part of the insurer to reject a genuine claim which has already been verified by the investigator.

        Surrounding this ruling, the apex court has also observed that in the case where a person has lost their vehicle, filing an insurance claim to get compensation may not be the first that they would do. Often the person will make all efforts to try and locate their vehicle. Considering this, the court said that while it is important that the policyholder informs the insurer immediately about the loss, any unavoidable circumstance which leads to delay in informing the insurer about the claim would not be a valid reason for rejection of claim on the insurer’s part. Decision to reject or deny a claim must be based on valid reasons.

        8th October 2017

      • Opt for term plans that offer protection as well as maturity benefits

        Term plan is the purest form of life insurance wherein the insured member is provided life cover for a fixed period of time. Customers prefer term plans as they offer a high life cover at an affordable premium. The premium amount for a term is fixed for the policy term. Term plans offer financial protection to the family or beneficiaries of the life insured in the unfortunate event of the demise of the insured member during the policy term.

        However, these traditional term plans offer zero return upon reaching maturity and the survival of the life insured. Therefore, customers think twice before opting for a term plan with no return on survival of the term. Hence, life insurance companies have designed a term plan that returns the total premium amount paid by the policyholder upon the survival of the term. This types of plan is called the Term Return of Premium (ROP) plan. Before deciding between a traditional term plan and a ROP plan, take the following factors into consideration:

        • Annual income of the individual.

        • Number of dependants, size of the family, single or married.

        • Personal loan, home loan, and other financial liabilities.

        Life insurance needs vary from customer to customer. If you are looking for a value-for-money product, then go for a ROP plan. Most Return of Premium plans have rider and conversion options. The premium amount of a ROP plan will be higher than a traditional term plan. What's more? Returned premium is not taxable. Therefore, you can avail tax benefits on refunded premium upon maturity as well on premium paid for the term plan. One example of a ROP plan is Click 2 Protect 3D Plus offered by HDFC Life with 9 different options. ROP plans can be hard to purchase after reaching 50 years of age. Therefore, opt for a Term Return of Premium Plan at a young age.

        6th October 2017

      • IRDAI to issue a fresh order in a case involving Reliance Life Insurance

        The Insurance Regulatory and Development Authority of India (IRDAI) had previously imposed Rs.85 lakh penalty on Reliance Life Insurance for violating various regulations which also includes the outsourcing norms. The insurer has been asked by the regulator to assess corporate business policy, and outline the standards of ethical behavior and business conduct. Reliance Life Insurance filed an appeal against the order issued by the IRDAI on 6 August 2015 order with the Securities Appellate Tribunal (SAT). On 3 October, SAT ruled that the IRDAI and Reliance Life Insurance will quash the impugned order of 6 August by consent. So, the IRDAI will issue a fresh order on merit after the insurer is given a chance at hearing.

        6th October 2017

      • SBI Life Shares Close 1.1% Higher At Rs.708

        Following the Rs.8,400 crore initial public offer (IPO) which was subscribed 3.58 times in the last week, the shares of SBI Life Insurance Co. Ltd. debuted almost 5% higher on the bourses this Tuesday. At the time of closing, the insurer’s shares closed 1.14% higher at Rs.708 per share on the Bombay Stock Exchange. At the time of opening, the shares had opened at 4.75% higher on the stock market valued at Rs.733.30 per share, as compared to the issue price of Rs.700. The shares were offered in the price band of Rs.685 to Rs.700 per share in the IPO.

        During the day, the insurer’s shares went up to as high as Rs.738 and fell as low as Rs.702.25. As per experts, the issue has been priced fairly and they recommend investors to invest in the IPO with a long-term goal.

        The IPO launched by SBI Life Insurance has been the largest that the market has seen since that launched by Coal India Ltd. Which was issued in October 2010. Going by issue size, SBI’s IPO is also the 4th largest.

        SBI Life Insurance was founded in the year 2001 as a joint venture between State Bank of India and BNP Paribas Cardif SA. Collectively, both partners sold 12% stake in the venture wherein SBI sold 8% and BNP parted with 4% stake respectively.

        5th October 2017

      • Apollo Munich & HDFC Life Launch Life-cum-Health Cover Plan

        Two of India’s leading insurance providers, HDFC Life Insurance and Apollo Munich Health recently joined hands to announce the launch of a dual cover plan known as the ‘Click2Protect Health Plan’. This unique plan has been designed to provide the benefits of 2 popular plans offered by each of the insurer - ‘Click2Protect 3D Plus (term) Protection Plan’ by HDFC Life and the ‘Optima Restore Health Indemnity Plan’ offered by Apollo Munich - thereby offering life insurance and health insurance cover.

        Throwing light on the newly launched product, Mr. Subrat Mohanty, Senior EVP, HDFC Life said that customers can avail the benefits of both these products, simply by filling up a single proposal form, medical reports, and premium, thereby adding to their convenience. He also said that customers get a 5% discount when they buy both these products together, thereby also saving money.

        According to a joint statement released by Apollo Munich and HDFC Life on the product, this single plan will carry a number of features such as waiver of future premiums in the event of an accidental total permanent disability or if the policyholder is diagnosed with a critical illness. The policy will also offer special premium rates for women and non-tobacco users.

        The hospitalization benefit which is a part of this plan, will cover in-patient treatment, and pre-and post-hospitalisation expenses. The plan also includes a Restore benefit, wherein cover amount will be restored to cover another illness or a family member, and Multiplier benefit, wherein the basic sum assured will increase by 50% for the first claim-free year, and by 2x for a second consequent claim-free year. The plan also includes a critical advantage rider which covers 8 critical illnesses like cancer and a number of heart ailments, along with providing overseas cashless treatment facility for these illnesses.

        5th October 2017

      • Risks of being underinsured

        In India, most people lack the proactive mindset to envision a safe existence and work toward it, which is why, although the insurance sector has seen an upward growth in the last 10 years, the penetration of life insurance is only around 3%. Those who have a life insurance policy to their name are sadly underinsured owing to limited knowledge and awareness of how life insurance works and how much life cover is needed.

        What does underinsured mean?

        Underinsured means the life insurance policy that one has chosen does not provide adequate cover. Having a life cover less than Rs.1 crore is considered insufficient coverage. One of the major reasons for overlooking the disadvantages of being underinsured is the widespread ignorance of the people who are ill-prepared for unforeseen, unfortunate events such as the demise or disability of the breadwinner of the family.

        Life insurance is purchased mainly as a tax-saving benefit rather than a financial tool that will safeguard the life insured against unexpected expenses. Many consider a life insurance policy with a small premium as the best policy for them. This is not true as a small premium means a basic life cover that will fail to provide sufficient coverage to the insured member. Insurance agents work on commission and therefore, push expensive life insurance plans that offer insufficient life cover at their potential customers.

        What to do if you are underinsured?

        First and foremost, assess one's insurance needs. If an individual already has a non-term life insurance plan, then he or she must purchase a term plan to get a more comprehensive insurance cover. Calculate the required sum assured and insurance premium amount based on the income, liabilities, and expenses of the individual. For instance, opt for a plan that offers insurance coverage worth 15 times the monthly income of the individual.

        5th October 2017

      • ICICI Prudential Life Insurance up 7% on value buying

        ICICI Prudential Life Insurance Company’s stocks gained 7% and climbed to Rs.415, which is an extension to Friday’s 2% gain on value buying on the National Stock Exchange (NSE).

        The trading volumes for the company’s shares increased more than double. A total of 4.2 million shares were exchanged till 1:05 PM, in comparison to 1.7 million shares which were traded on a day-to-day basis in the last 2 weeks on the NSE and BSE.

        Analysts at IIFL, the leading brokerage firm said that among the crop of private segment life insurance providers, ICICI Prudential Life Insurance is enjoys a leading position in the stock market, thanks to its cost competitiveness and robust distribution architecture. This has put the company in a good position to capture opportunities for growth which arise from buoyant equity markets, considering the company’s strong positioning as a seller of unit-linked products (ULIPs).

        4th October 2017

      • Kotak Life Insurance Aiming At 25-30% Growth In Premium

        According to reports, Kotak Mahindra Old Mutual Life Insurance is expecting a 25-30% rise in its income from premiums this year, as has been mentioned by Mr. Sudhakar Shanbhag, Chief Investment Officer, Kotak Mahindra Life Insurance. He said that the company’s year to date growth has been 37%. The full year’s growth is expected to be between 25% to 30%.

        In the last fiscal i.e. FY17, the insurer registered a 29% premium growth, which was much ahead of the industry’s growth which stood at 21%. The company recorded business premium income if Rs.2,850 crore and renewal premiums stood at Rs.2,290 crore. The insurer recorded a profit of Rs.324 crore on the total premium income of Rs.5,140 crore in FY17.

        Mr. Sudhakar said that nearly 35% of the total regular premium has been contributed by unit-linked insurance policies (ULIPs) and the remaining brought in from traditional insurance products. Under the retail section, nearly 20% to 25% of the regular premium has been brought in by single-premium polices. Looking from a bigger perspective, nearly 50% of the total premium has been contributed by group insurance business, said Mr. Sudhakar.

        3rd October 2017

      • 3 kinds of life insurance policies

        For most of us, life insurance can be quite a tricky matter to grasp. With so many terms, conditions, exclusions, and other infinite details, it can be quite a challenge to not only understand all of it but also decide which one makes more sense over the other. When it comes to purchasing insurance, many of us rely on the services of agents and brokers to not only break down the policy in simpler terms for us but also trust them with recommending a policy which is best suited for our needs. But, agents, in their hurry to earn their commission and also clinch the sale, will often end up telling us only about some of the terms and benefits of the policy, often leaving out the most important bits. This results in the customer purchasing a policy which is not suited for their requirements which only translates into loss of money and time. When it comes to life insurance, there is one thing which all customers must know before starting their search. All the life insurance policies offered by insurers fall under 3 basic types - traditional plans, unit-linked plans, and term plans. In this article, we will strive to tell you about each plan in brief. Furthermore, you can also find out what you must be cautious about when you consider a life insurance plan that falls under any of these 3 categories of life insurance plans.

        3rd October 2017

      • SBI Life Insurance Shares To Be Allotted Today

        SBI Life Insurance’s initial public offering, which was launched to raise Rs.8,400 crore ($1.3 billion) will be allotted today. The issue saw nearly 3.58x oversubscription on the last day of the bidding, which was September 22. SBI Life Insurance Co. Ltd., a subsidiary of State Bank of India, has recently launched their first ever IPO,, which was also one of the biggest IPOs to be launched in the past 7 years.

        SBI Life Insurance becomes the second life insurance company, after ICICI Prudential Life Insurance Co. Ltd, to launch their IPO and be listed on the stock market exchange. Nearly 29.5 million bids were made on the SBI Life IPO shares, as per the data received from the stock exchanges.

        Anchor investors such as GIC from Singapore, and Canada Pension Plan Investment Board have already given their commitment to subscribe to shares worth Rs.22.26 billion. The two primary shareholders of SBI Life Insurance, namely State Bank of India, and BNP Paribas Cardif, have sold 8% and 4% of their stake in the company respectively via the IPO.

        Following SBI Life are some other companies who are also planning to launch their IPO in the coming few months. Insurance giants like HDFC Standard Life Insurance Co. Ltd, state-run insurers like New India Assurance Ltd. and GIC Re have also recently filed for IPOs. All combined, they are expected to raise over $4 billion. According to leading market experts, given the booming IPO situation this year, IPO sales could very well fetch over $8.5 billion. a

        27th September 2017

      • How Life Insurance Can Help You Fulfil Your Financial Goals

        Most of us live under the impression that life insurance is an instrument which provides financial protection in case of a personal calamity. However, what most people aren’t aware of is, that life insurance can also serve as an efficient tool for financial planning and helping one meet their financial goals such as your buying a house or car, planning for your child’s education, wedding, saving up for your retirement, etc. Now, there are various types of insurance policies that are available in the market which are designed to cater to different insurance and investment needs.

        Here is a brief about which policies are suitable to be taken at different stages of your life.

        When You Are Getting Married

        If you are planning to get married, then you should make sure that a term insurance plan is a part of your financial portfolio. When taking a term plan, you should remember that the earlier you get the plan, the lower your premiums will be. At a younger age, your will be in better health and will have lower risk as compared to when you are older. Normally, the sum assured under a term plan is calculated based on your present salary and is typically an amount which is 15 to 20 times that of your annual income.

        When You Have A Child

        Term insurance plans are also known as pure term plans as they provide cover against the ultimate risk of death. If you have become a parent and are the only income earner in your family, then a term plan is again a must-have for you which can help protect your dependents from any unforeseen financial scarcity which may arise following your untimely demise. The other important reason why a term plan is important is, because it saves your depends from the burden of having to budget their needs in order to repay any liabilities such as loans, debts, credit card dues, etc. also useful to have is a term plan with riders which can help to further enhance the scope of coverage provided under the base plan. If you are planning to create a corpus for your child’s education, then a Unit Linked Insurance Plan or ULIP is your best option. ULIPs not only allow you to get life insurance coverage but also provide you with a chance to invest your capital in funds of your choosing so you can fulfil your financial goals.

        When It’s Time To Retire

        Retirement is a well-deserved period of every working person’s life when they do not have to worry about work any more. However, the period leading up to retirement can be anxiety-ridden for some people who have not started planning for their retirement. The key to achieving financial independence after retirement is to start saving from early on. Planning in advance is the most important thing you can do to ensure that you create a sufficient and comfortable retirement corpus for yourself and your dependent. For this purpose, a long-term ULIP plan is one of the best options. These plan are similar to mutual funds in working. The policyholder will pay a certain amount on a monthly basis which will get accumulated and can be utilized once the term of the plan comes to an end. The advantage of this plan is that it provides you with equity returns which will be higher as the years pass.

        25th September 2017

      • Day 2 of SBI Life Insurance IPO Sees 58% Subscription

        SBI Life Insurance’s IPO (initial public offer), which was launched on Sept 20, is reported to have been subscribed 58% on Thursday, which was the second day of the sale. As per the data received from stock exchanges, till 5pm, the portions of the shares reserved for institutional investors and retail investors had been subscribed 1.58 times and 0.37 times, respectively. The chunk of shares that had been reserved for high net worth investors had only been subscribed at 8%. SBI Life’s IPO will close on 22 September 2017.

        For the IPO, SBI Life has priced the shares in the band of Rs.685 to Rs.700 per share. At the upper end of the price band, the initial share sale will put the firm’s value at Rs.70,000 crore. The IPO is a pure offer for sale wherein SBI is offering 8% stake and it’s partner BNP Paribas is offering 4% of its stake. After the IPO, SBI and BNP Paribas will end up with 62.1% and 22%. SBI Life Insurance was founded in 2001 and is a joint venture between India’s largest lender, State Bank of India and BNP Paribas Cardif.

        22nd September 2017

      • Max Life and Birla Sun Life Have Initiated Merger Talks

        Two of India’s premier insurance providers, Max Financial Services, led by Analjit Singh and the Aditya Birla Group are in talks to explore the possibility of a merger of their life insurance businesses with the aim to create one of India’s largest and finest private life insurance company.

        Simultaneously, Mr. Analjit Singh is also reported to be in negotiation with UK-based Northern Trust which manages a trillion dollar of assets and PE firm Apax Partners to sell his promoter stake of 30% in Max Financial Services.

        Negotiations between the two companies are still in their nascent stage. However, there is no guarantee of a transaction to materialize from these negotiations. The key factor behind the talks being held for this merger is the fact that Birla Sun Life lacks large bank partners like Max Life has (Axis Bank, Yes Bank). Birla Sun Life has managed to tie up 6 banks last year, but these are mostly smaller banks. An official privy to the ongoing talks mentioned that the Max Life – Birla Life discussion are being held only at a shareholder level at present to figure out the correct structure. The discussions have not reached a board level yet. He said, that ‘increased scale can potentially yield to benefits of cost synergies as well as multi channel distribution, through agencies, brokers, direct marketing and bancassurance.’

        21st September 2017

      • SBI Life Insurance IPO Launches Today, Experts Suggest Getting Long-term Subscriptions

        SBI Life Insurance, a subsidiary of India’s largest lender, State Bank of India, is all set to launch its Rs.8,400 crore initial public offering (IPO) in the stock market today. According the experts, the issue has been fairly priced and it is best for investors to invest in the fund with a long-term perspective. SBI Life Insurance’s IPO is likely to be the biggest IPO to hit the market since the October 2010 public issue taken out by Coal India Ltd. In terms of issue size, SBI’s IPO is going to be the fourth largest.

        SBI’s has priced its IPO shares in the band of Rs.685-Rs.700 per share. In this IPO, SBI Life Insurance and it’s joint venture partner, BNP Paribas Cardif SA are going to sell 8% and 4% of their stakes in the life insurance firm respectively. While SBI is expected to collect nearly Rs.5,600 crore after selling it’s stake, BNP Paribas Cardif is expected to earn around Rs.2,800 crore.

        SBI Life insurance is currently ranked as the country’s biggest private life insurance provider in terms of new business premium (NBP) generated in each financial year since 2010. The insurer has also gained NBP market share in the private insurance industry which has gone up from 15.87% in FY15 to 20.04% in FY17. Between these two fiscal years, SBI Life recorded a CAGR (compounded annual growth rate) in their NBP of 35.45%, which is the recorded highest in terms of total premium among the top 5 private life insurers in the industry.

        Angel Broking analyst, Mr.Jaikishan J. Parmar said that SBI’s premium valuation is justified given its higher incremental market share gain. This is the reason why investors are being advised to subscribe to the issue with a long-term perspective. Experts are advising against investing in the issue with the objective to make listing gains.

        20th September 2017

      • Prataap Snacks & SBI Life Insurance All Set To Launch IPO

        2017 seems to be the year of IPOs. Following the IPOs of ICICI Lombard General Insurance (September 15-19), Capacit'e Infraprojects (September 13 to 15), and Matrimony.com (September 11 to September 13), SBI Life Insurance is the next company which is all set to launch their IPO on 20 Sept 2017 and expects to raise up to Rs.8,400 crore. Their issue closes on September 22. Opening on the same date is the IPO for Indore-based snacks maker Prataap Snacks, which plans to raise up to Rs.482 crore.

        Prataap Snacks is an Indore-based snacks manufacturer which is expected to raise approximately Rs.482-crore via their initial public offer (IPO) which will open for subscription on 22 Sept 2017 and close on 26 Sept 2017. The price of equity shares being offered during the issue will be within the price band of Rs.930 – Rs.938 per equity share. Out of the total Rs.482 crore issue, Rs.200 crore will be via fresh equity issue and the remaining will be from offer for sale. Like SBI Life Insurance, eligible employees of Prataap Snacks will also be offered a discount of Rs.90 per share on the issue. Prataap Snacks manufactures products under the ‘Yellow Diamond’ brand, and aims to utilize the IPO proceeds to expand and increase its chip and namkeen manufacturing capacity by 50%. It also plans to use the funds for furthering marketing and brand building activities and also retire the debts.

        SBI Life Insurance is a subsidiary of the State Bank of India, the nation’s most prominent lender, and will be raising approximately up to Rs.8,400 crore. Their initial share sale offer will open on 20 Sept 2017 and close on 22 Sept 2017. The price per equity share will be within the band of Rs.685 - Rs.700. Eligible employees looking to purchase the shares will be offered a discount of Rs.68 per share on the offer price of each share. SBI Life’s IPO is going to be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

        19th September 2017

      • Insurance Industry Growth Driven By Private Life Insurers In August

        The life insurance industry continues to display remarkable growth and the situation looked quite promising as of August 2017. Last month, private life insurance companies registered a 29% year-on-year growth on their annual premium equivalent (APE). Life Insurance Corporation of India (LIC) registered Ape growth of 9.3% year-on-year at Rs.2,007.9 crore in August, which is lower than that of many other private insurance players. Senior industry experts are of the view that with a rise in equity markets, unit-linked insurance products are witnessing a far stronger growth at a faster pace as compared to traditional products.

        In its insurance report, Edelweiss said that the rise in financial savings and higher inflows following demonetisation have helped the industry register impressive growth. “Experts further anticipate proclivity for financial savings to continue and industry growth momentum to sustain,” it also said. Insurance companies such as Bajaj Allianz, IndiaFirst Life Insurance, SBI Life Insurance, and Kotak Life Insurance continue to record positive APE growth. As per the IRDAI (Insurance Regulatory and Development Authority of India) data, private insurance companies witnesses a 18.34% year-on-year growth in new premium which stood at Rs.18,251.98 crore in the current financial year, as against Rs.15,423.06 crore which was recorded in the corresponding period of last year. As per IRDAI data, for the month of August, the insurance industry recorded new year premium up to Rs.17,513.44 crore as compared to Rs.14,282.45 crore which was recorded in August of the last financial year.

        Individual APE of Life Insurance Industry (In Crore)

        Insurance Company Aug 2017 Year-On-Year Growth Percentage
        Bajaj Allianz 89.5 30.6%
        Birla Sun Life 63.1 24.8%
        ICICI Prudential 601 14%
        Kotak Mahindra Old Mutual 100.5 40.7%
        SBI Life 664.6 50.7%
        HDFC Standard Life 331.4 24.5%
        Max Life 214.7 23.2%
        Life Insurance Corp. 2007.9 9.3%

        18th September 2017

      • SBI Life Insurance & Prataap Snacks To Launch IPOs this week

        The year 2017 is undoubtedly a good one for the Indian IPO market as various companies are gearing up to launch their IPO. In September, India will see the launch of IPO’s by SBI Life Insurance and Prataap Snacks. Their initial share sale offers are expected to raise about Rs.8,882 crore.

        SBI Life Insurance is a subsidiary of the State Bank of India, the nation’s most prominent lender, and will be raising approximately up to Rs.8,400 crore. Their initial share sale offer will open on 20 Sept 2017 and close on 22 Sept 2017. The price per equity share will be within the band of Rs.685 - Rs.700. Eligible employees looking to purchase the shares will be offered a discount of Rs.68 per share on the offer price of each share. SBI Life’s IPO is going to be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

        Prataap Snacks is an Indore-based snacks manufacturer which is expected to raise approximately Rs.482-crore via their initial public offer (IPO) which will open for subscription on 22 Sept 2017 and close on 26 Sept 2017. The price of equity shares being offered during the issue will be within the price band of Rs.930 – Rs.938 per equity share. Out of the total Rs.482 crore issue, Rs.200 crore will be via fresh equity issue and the remaining will be from offer for sale. Like SBI Life Insurance, eligible employees of Prataap Snacks will also be offered a discount of Rs.90 per share on the issue. Prataap Snacks manufactures products under the ‘Yellow Diamond’ brand, and aims to utilize the IPO proceeds to expand and increase its chip and namkeen manufacturing capacity by 50%. It also plans to use the funds for furthering marketing and brand building activities and also retire the debts.

        18th September 2017

      • SBI Life Insurance Co. Ltd growth in FY18 comes at a good time for its IPO

        SBI Life Insurance Co. Ltd has seen phenomenal growth in FY2017. The growth has continued in the first quarter of the current fiscal year which is good for the Initial Public Offering (IPO). BNP Paribas Cardif and State Bank of India, the promoters of SBI Life Insurance Co. Ltd aim to get Rs.2,400 crore and Rs.5,600 crore from the IPO, respectively. The price of the IPO is set at Rs.685 to Rs.700 apiece. SBI Life Insurance is valued at Rs.70,000 crore at this price band. The insurance company's business premium has grown 35% between FY2015 and FY2017. The company's assets under management has increased 17.1% among its competitors. Bancassurance contributed 60% of SBI Life's new business premium for the June quarter and rest was contributed through agency.

        15th September 2017

      • Max Life Insurance looking for business opportunities with insurance companies

        Rajesh Sud, the MD and Executive Vice Chairman of Max Life Insurance said that after the merger with HDFC Standard Life didn't go through, Max Life is looking for business opportunities with public and private sector banks interested or involved in the life insurance business. The merger between HDFC Standard Life and Max Life Insurance didn't go through as the Insurance Regulatory and Development Authority of India (IRDAI) didn't approve the merging of an insurance business with a non-insurance business. Sud spoke at the SHRM India Annual Conference and Exposition 2017 event and said that in order to keep up to date with the changes and win in a fast-changing environment, character, action, and empathy are the key for organisations.

        15th September 2017

      • Is a term plan a good tax saving scheme?

        Term plans are pure life insurance plans that offer maximum life cover for an affordable premium. Before choosing a life insurance plan, it is advisable to consider your financial objectives and insurance needs. Life insurance serves not only as an investment plan but also a tax planning tool. An assessee is eligible for tax deduction for insurance premiums paid towards a term plan under Section 80C of the Income Tax Act, 1961.

        Eligibility for tax saving scheme

        Hindu Undivided Families (HUF) and individuals which includes spouse and children, are eligible to avail tax benefits for premium paid towards a term plan under Section 80C of the Income Tax Act, 1961. Term plan serve as a tax planning tool but it is imperative to know the terms and conditions under which the tax benefits are applicable.

        Tax deductions

        The total tax deduction under Section 80C is limited to Rs.1.5 lakh. Tax benefits for term plans are limited to 20% of the sum assured if the premium exceeds 20% of the sum assured during the financial year. For policies issued after April 1st, 2012, tax deductions can be claimed on the premium amount if it is not more than 10% of the sum assured.

        In the case of individuals with specified ailments or severe disability, tax benefit is available if the premium is not more than 10% of the sum assured. Individuals may be eligible for tax deductions on maturity proceeds under Section 10(10D) of the Income Tax Act, 1961. Bonus received under a policy term is not taxable. Death benefits paid as a lump sum amount to the nominee in the case of the demise of the life insured during the policy term is tax-free.

        14th September 2017

      • Why is life insurance important?

        Life insurance helps secure your family's financial future in the case of unfortunate demise of the life insured. The death benefit paid to the beneficiary can be used to pay off loans, education fees, wedding expenses, etc. Life Insurance can serve as an investment as well as a tax planning tool. Before choosing a life insurance plan, it is important to do your research and assess your insurance needs.

        Types of life insurance plans

        From term plans and endowment policies to ULIPs and money back plans, there are different types of life insurance products available in the market to meet the varying needs of the customers.

        • Term plans: This is the most traditional form of life insurance policy that is not only cheap but also offers maximum cover. Term plans are for a fixed period of time such as 10, 20, and 30 years.
        • Endowment plan: An endowment policy much like a term plan offers insurance cover to the policyholder for the entire policy term. It also pays a lump sum amount upon maturity. Endowment policies can be purchased as regular policies or Unit Linked Insurance Plans (ULIPs).
        • Unit Linked Insurance Plans: With ULIPs, you can build wealth in addition to offering the security of life cover. Part of the premium payment is invested in funds while the rest is directed towards life cover.

        How to assess your life insurance needs?

        Determining your insurance requirements can help you choose a suitable life insurance cover to secure the financial future of your family. Take your income, debt, future commitments, and family members into consideration. To select the right life insurance policy, visit a third-party comparison website like BankBazaar.com, compare various policies across the top life insurers, and get an instant quote on your chosen policy.

        14th September 2017

      • IPO of SBI Life Insurance to Start on September 20

        A subsidiary of India’s biggest lender SBI, SBI Life Insurance will enter the capital market on the 20th of September in an effort to raise almost Rs.8400 crore. The first share sale offer is set to open on the 20th of September and close on the 22nd of the same month, according to SBI. 2017 marks the second listing of a life insurance company following ICICI Prudential Life Insurance which went public in 2016. Sources have revealed that SBI Life Insurance’s price range for the IPO will be between Rs.685 and Rs.700, and that the company will likely raise around Rs.8400 crore. The public issue of SBI Life involves its promoters who are offloading almost 12 crore shares whose face value if Rs.10 per share. SBI is expected to dilute around eight crore shares while four crore shares will be offloaded by BNP Paribas Cardif SA. SBI Life Insurance is a joint venture between the State Bank of India and BNP Paribas Cardif which is an insurance holding company of France.

        13th September 2017

      • Important Things to Know About Life Insurance

        Life insurance is a great product to invest in as it offers peace of mind and helps you rest assured that your family will be financially able even in case something unfortunate were to happen to you. Life insurance is also a great option for saving for your retirement and old age, making it a crucial financial asset to possess.

        Who Needs It?

        Life insurance is a great option for anyone who has financial dependents, like a spouse who does not earn regular income, ageing parents, or young children. Life insurance provides a substantial amount of savings which can be used to cover your family in case you are no longer able to provide for them.

        How Much Insurance Do You Need?

        It is essential to seek professional help when determining the amount of cover you will require when taking out a life insurance policy. The most important factor to consider would be how much cover your family would require in case of your absence. You will also have to consider the period of time for which they will require financial support in case of your absence. Keep young children who will require financial support for their education as well as higher education in mind. You will also have to keep in mind any debts you may have and how much cover would be required to cover the same in your absence.

        How Much Will It Cost Me?

        Life insurance policies will cost you depending on a variety of factors, like your age, whether or not you have existing health problems, and the period for which you will require the financial cover. The payments towards life insurance policies are usually made on a periodic basis in the form of premiums. However, there are some policies that can be purchased with the payment of a single lump-sum amount.

        13th September 2017

      • SBI Life Insurance gets approval from SEBI for Rs.8,400 crore IPO

        SBI Life Insurance received approval from the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) of up to Rs.8,400 crore from September 20th to 22nd of this year. SBI Life’s IPO will be 12% of its equity capital or 120 million secondary shares. State Bank of India owns 70.1% of SBI Life Insurance while BNP Paribas Cardif holds 26% stake. The bank will sell 80 million shares while BNP Paribas Cardif will sell 40 million shares.

        Temasek Holdings and KKR Asian Fund are the other major shareholders who own 1.95% stake through their subsidiaries. The launch date is subject to the approval of the Registrar of Companies. Axis, Citigroup, SBI Capital, BNP, ICICI Securities, Deutsche Bank, Kotak, and JM Financial are leads on the IPO.

        11th September 2017

      • ICICI Lombard General Insurance All Set To Launch IPO on September 15

        ICICI Lombard General Insurance Company, a subsidiary of ICICI Bank, is all set to launch its IPO (initial public offer) on Sept 15. They are planning to sell up to 8,62,47,187 equity shares via the subscription, out of which up to 3,17,61,478 equity shares are being sold by the promoter, ICICI Bank, and up to 5,44,85,709 shares being sold by investor Fal Corporation. A reservation of up to 43,12,359 equity shares will be set aside for purchase by ICICI Bank shareholders. The issue will be open from Sept 15 to Sept 19.

        ICICI Lombard was established as a joint venture between India’s ICICI Bank and Fairfax Financial Holdings, based in Canada. According to the draft red herring prospectus filed by the insurer with SEBI (Securities & Exchange Board of India) in July, ICICI Bank holds a 62.95% stake in its general insurance company, FAL has 21.92% shareholding, Red Bloom Investment with 9.01% and Tamarind Capital Pte Ltd hold 1.59%. ICICI Lombard is the largest private-sector, non-life insurer in India, based on their gross direct premium income from FY17.

        ICICI Securities, DSP Merrill Lynch Limited, and IIFL Holdings will be global co-ordinators and book running lead managers to the issue. Edelweiss Financial Services, CLSA India Private Limited, and JM Financial Institutional Securities are book running lead managers to the issue. In addition to ICICI Lombard, 2 state-run general insurers - General Insurance Corporation of India and New India Assurance Company, along with 2 private life insurers - SBI Life and HDFC Standard Life are also planning to launch their IPO for which they are awaiting approval from SEBI.

        In its subsidiary ICICI Prudential Life Insurance, ICICI Bank has lowered its stake to 54.89% percent via the IPO that will launch later this month. ICICI Lombard is also the first life insurance company to be listed on the stock exchange.

        7th September 2017

      • What To Consider Before Taking a Term Plan

        If you want to purchase a term insurance plan, there is no shortage of them in the financial market. Term plans are an affordable and efficient type of life insurance which is ideal for people of all ages, ranging from young professionals to retired people. When it comes to purchase insurance, insurers are always trying to compete with each other so they can make the maximum sale. In order to do that, they offer loads of benefits with their policies which is a good thing for the customer. However, when multiple insurers do that, it can be difficult for one to choose between insurers for the right plan. To make the challenge a little simpler, here are some factors which one can look to consider when buying a term plan.

        • You must assess your needs and requirements before taking the term plan. Take your assets and liabilities into account.
        • After you have evaluated your needs, you can better decide the amount of coverage that you will need to sufficiently cover your dependents.
        • When deciding on a plan, look at the premium being charged and ensure that it is proportionate to the sum assured that is being provided under the plan.
        • Deciding the tenure of the plan is a crucial question. Look at your liabilities and calculate how long you will take to pay them off.
        • There is one term plan which provides returns of premiums when the plan reaches maturity. However, the premiums for this plan will be higher than those of a normal term plan.
        • Another important factor is choosing the right beneficiary. Appoint someone who you think is capable of handling finances i.e. the sum assured amount which will be received as death benefit.
        • Another important thing to consider is the life stage you are at when planning to take a term plan and which of your family members do you think will require financial cover.
        • One of the most important factors to consider when taking a term plan is reviewing your liabilities as they are paramount in deciding the amount of cover you should take and for what duration.
        • When taking a term plan, it is imperative that you decide whether or not your dependents are adept at handling and mam=nagging finances. Are you confident that they can wisely invest the sum assured received after your death or do you think you need to provide them with a monthly income.
        • Many term plans also offer the provision of providing the sum assured partly in lump sum and partly as regular income.
        • Another factor to consider when deciding the amount of cover under a term plan is factoring the cost of inflation when deciding the appropriate sum that will shield your dependents financially.

        6th Septemberr 2017

      • Customer Aadhaar Data Not Compulsory For Insurance Sale: IRDAI

        The Insurance Regulatory and Development Authority of India (IRDAI) has finally laid the long-standing debate on Aadhaar being a compulsory KYC requirement for insurance purchase, to rest. According to the most recent statement, IRDAI has ruled it is not compulsory for insurance companies to authenticate policyholders or clients data using their Aadhaar detail. This can only be done after the insurer has received the policyholder’s consent to do so. Through two circulars in 2013 and 2015, IRDAI had previously allowed Aadhaar based e-KYC service which was offered by Unique Identification Authority of India (UIDAI) for the KYC verification purposes. However, it has only recently clarified that the insurer can only access a policyholder’s details from UIDAI for identification and authentication after getting the concerned policyholder’s consent on a voluntary basis.

        This ruling by the IRDAI comes after the recent declaration given by a nine-judge bench of the Supreme Court, headed by former Chief Justice of India J.S Khehar (succeeded by Dipak Misra), which unanimously agreed to the Right to Privacy being a part of Right to Life and Liberty as assured by the Article 21 of the Indian constitution.

        In addition to this ruling, IRDAI has also said that for the purpose of KYC formalities, the information downloaded from UIDAI should be considered as sufficient. However, if there is an obvious and glaring differences between the name or photograph being unclear, the insurer is at liberty to carry out additional due diligence and maintain a record of the additional documents sought to pursue such diligence. These rules will be applicable to all categories of insurers, which includes standalone health, life, and general insurance.

        5th September 2017

      • The Parties Involved In An Insurance Contract

        As we all know, an insurance policy is a contract between not only the insurer and the insured but also other parties who are an equally important part. Let’s take a quick look at all the parties which are involved in an insurance contract.

        • Insured - The insured is the individual who is being covered against risks under the policy. In many cases, the insured may also be the policyholder. If the insured is not a policyholder, the insurer will ask about the insurable interest before approving the application. Close family members or business partners will have an insurable interest in an individual. Having insurable interest means that the policyholder must show that they will undergo financial loss in case of the death of the insured. This is the reason a person can not just purchase life insurance on anyone they wish.
        • Insurer – Insurer would refer to the insurance provider or company which provides the insurance cover to the insured in exchange for premiums.
        • Policyholder/Proposer/Owner – This is the person who purchases the insurance policy. The right of ownership over the policy lies with the policyholder and he/she will have the right to changes to the policy. The policyholder or owner is also liable to pay the premiums of the policy. Some of the rights of a policyholder are right to transfer ownership of the policy, right to alter policy provisions, right to surrender or cancel the policy, right to pledge the policy for a loan or to borrow against its cash value, right to name or change a beneficiary, right to decide how the death benefit will be provided to the beneficiaries, among other rights.
        • Beneficiary – This is the person who will be entitled to receive the benefits that will be payable under an insurance policy. Beneficiary or beneficiaries can be a spouse, parents, children, siblings or business partner, etc. there can be one or more beneficiaries named in a single policy. Under life insurance, beneficiaries are usually categorized as primary and contingent. Primary beneficiaries are those who will receive the death benefit in case of the death of the life assured. Contingent or secondary beneficiaries are those who will receive the death benefit if the primary beneficiary passes away before the life assured does.

        5th September 2017

      • IndiaFirst Life Insurance launches First Chatbot ‘IRIS – IndiaFirst Responds’

        IndiaFirst Life Insurance, one of the country’s leading insurance provider which is promoted by Andhra Bank and Bank of Baroda, and Legal & General, recently announced the launch of its first ever chatbot, IRIS - IndiaFirst Responds.

        The chatbot, IRIS, comes equipped with a wide range of features like product descriptions, premium statements, customer notices, fund value inquiries, application status, and surrender value inquiry. With the chatbot, IndiaFirst is aiming to strengthen the self-service facility that it provides for not only customers but also for field sales. The other objective of introducing the chatbots is to help in reducing the dependence on contact centres for basic requests or information, and replace the system with a modernized process which will help enrich customer experience.

        On the occasion of the launch, Mr. R.M. Vishakha, MD & CEO, IndiaFirst Life Insurance said that this facility has been introduced in line with the company’s philosophy of ‘customer first’. The constant endeavour has been to employ simple processes and procedures with the viable adoption of technology. ‘IRIS (IndiaFirst Responds) is a significant step towards offering end-to-end digital platform and deliver personalized solutions to our customers. This will also ensure empowering our sales force to meet customer requirements, real-time. As we are ambitious in our sales target, this is our effort to create a robust customer service process, to be able to handle high sales volume, going forward.

        Mr. Mohit Rochlani, Director, Operations & IT, IndiaFirst Life Insurance, further added that the chatbot will now enable customers to get instant solutions and answers to their questions. The response will now be received in real time and there is no need to wait. “The Real-time expense management adds a layer of improved functionality and simplifies the day-to-day functioning of our sales force. This will help them focus on what’s most important to us as team, which is offering the customer the best product and service”, he said.

        In addition to the IRIS chatbot, IndiaFirst has also rolled out a unique solution through an app called Knowledge base. This feature will empower the sales teams to search for various queries for various products and processes present in the company, so that they can get correct and accurate responses to their queries instantly while on the move.

        7th September 2017

      • SBI Life Insurance Likely To Launch IPO in Sept 2017; Plans To Raise Rs.8000 crore

        India’s biggest banking company, State Bank of India may be planning to launch the initial public offer (IPO) of its insurance arm, SBI Life Insurance company, in as short a time as the third week of Sept 2017, according to media reports. Through this IPO, SBI Life is aiming to raise an amount of nearly Rs.8,000 crore. The insurer is expecting to receive approval for the IPO from Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI) during the ongoing week itself. SBI’s Board of directors had already given approval for the IPO earlier this year in May.

        Up till September 2017, three insurance companies have filed draft papers for IPOs which are expected to collectively be worth approximately Rs.20,000 crore.

        Speaking about the IPO, SBI said that under the offer for sale, they will be offering up to 12% of equity shares. Out of this, up to 8% stake will be sold by SBI Life, while another 4% of the stake will be sold by BNP Paribas Cardif. In SBI Life Insurance, SBI owns a majority of 70.1% of the stake while the remaining 26% is held by Cardiff.

        6th September 2017

      • Breakeven Likely To Be Delayed Due To Strategy Shift, Says Aegon Life CFO

        Aegon Life Insurance Company, a leading general insurance provider in India will be experiencing a delay in achieving a breakeven in 10 years (around FY19). The insurer which was earlier all set to break even by FY19, will see that getting delayed by two to three years, said Mr. Rajeev Chugh, Chief Financial Officer of Aegon Life. In August 2016, Aegon Life shifted its strategy from a multi-channel presence to a more focussed digital one. The consequence of this was the insurer exited the agency channel, except for renewal of existing policies. The company now employs nearly 4,000 agents, which is about 2,000 less than the number employed before. The second strategy that the insurer has adopted is to have direct customer engagement by appointing relationship managers who will directly be communicating with customers. Not only will these relationship managers self-source but will also cross-sell policies to existing customers. The third pillar of their new strategy is to focus on group protection business which will provide access to a larger customer base.

        To implement these strategies, the insurer will work with equity brokerages and wealth managers and equity brokerages in order to tap into their client base. The immediate impact that this change in strategy had was a decline in premium income of the previous financial year, which came down from Rs.136 crore in FY16 to Rs.91 crore in FY17. This, Mr. Chugh said was due to the mid-course correction which will even out over the span of the next 2 years.

        For the current fiscal, the CFO expects a 50% growth which will is likely to push the turnover to about Rs.150 crore. He is also hopeful that the shift in emphasis will also result in a 70% to 80% rise in the customer base over the next 2 years.

        4th September 2017

      • India First Life Insurance Opens New Branch in Vijayawada

        IndiaFirst Life Insurance Company Limited, one of India’s leading insurance provider, recently celebrated the launch of two new branches which were inaugurated at Vijayawada and Rajahmundry in Andhra Pradesh. At the opening celebration were present Mr. Mohit Rochlani, Director- IT and Operations, IndiaFirst Life Insurance Co. Ltd., and Mr. GSV Krishna Rao, Circle General Manager, Vijayawada, Andhra Bank. With these 2 branches, IndiaFirst Insurance will have a total of 3 branches in the state of Andhra Pradesh. The third branch is already present in the city of Vishakhapatnam.

        Besides this, IndiaFirst also has a corporate agency tie-up with Chaitanya Godavari Grameena Bank (CGGB) in Guntur which has over 106 branches across the various districts of Andhra Pradesh. With this tie-up, they aim to provide insurance services to a larger number of customers, including those who are customers of Chaitanya Godavari Grameena Bank.

        Speaking on the occasion of the inauguration, Mr. Rochlani, Director- IT and Operations, IndiaFirst Life Insurance Co. Ltd., said, that with these two new branches, IndiaFirst is looking to strengthen its distribution network in order to achieve deeper insurance penetration in Andhra Pradesh which has great potential. The company aims reach out to a larger number of customers and provide them with access to their varied suite of products which includes protection plans, retirement plans, savings plans and wealth maximization.

        Speaking on behalf of Andhra Bank, Mr. GSV Krishna Rao, Circle General Manager, Vijayawada, Andhra Bank, said that following this partnership, Andhra Bank will strive to not only raise awareness regarding the importance of having insurance but also be able to offer simple and easy to comprehend insurance plans to their customers.

        He said that while Vijayawada is a fast growing metropolis, Rajamundry is a cultural hub, and both these cities together present vast opportunities for selling insurance products and services. With this partnership, people from these cities will not be able to access cutting-edge technology, tailor-made products and personalized insurance advisory.

        4th September 2017

      • Insurance firms To Employ Blockchain to Make Transactions Simpler

        13 insurance providers in India have joined hands to use a technology similar to blockchain with the objective of creating a central repository of policyholder data. This repository will help insurers in eliminating the need for the registration procedure for multiple policies.

        Speaking about the move, Mr. Akshay Dhanak, vice-president, business systems & technology at HDFC Life Insurance, said that if the same records are available to multiple life insurance providers in the chain, they can cut down on costs incurred on conducting tests and storing records, which would otherwise be high if the same was being conducted separately. He also said that there is still a lot remaining to be done with respect to insurance, such as KYC, medical underwriting, financial underwriting, etc. Having all this data on a blockchain will help eliminate duplication of these procedures.

        Blockchain is can be understood as a digital ledger which can store information of all cryptocurrency transactions. However, in this case, it is a distributed and decentralised method of storing information that will be based on the mutual agreement of the members of the blockchain. According to PwC’s Global Fintech Report 2017, 77% of financial technology institutions are expected to adopt blockchain as a process by 2020. The top areas of usage are predicted to be payments, fund transfer and digital identity management.

        Mr. Pankaj Pandey, CIO, IDBI Federal Life Insurance said that since there is a very small number of insurance companies present in India, it can be a challenge if more than one standard for blockchain exists. They are hoping for more and more companies to gradually become a part of the blockchain which can help detect multiple fraudulent claims efficiently as compared to claims of companies which are not a part of the platform yet.

        1st September 2017

      • HDFC ERGO Partners With ItzCash to offer insurance

        In an initiative to enhance their reach in tier II and III cities, India’s leading insurer, HDFC ERGO has recently announced a tie-up with ItzCash’s, also one of India’s leading payment solutions provider. HDFC has entered into a strategic agreement with ItzCash, which has a nationwide franchise network, in order to offer their insurance products.

        Following the partnership, HDFC ERGO will be offering a varied range of general insurance policies such as health insurance, motor insurance, and fire insurance. Also, the whole process, starting from application filing to making payments will be done digitally via ItzCash’s network. This will help eliminate the chances of human error and other types of delays so that customers get real-time service.

        Furthermore, another benefit of the partnership which customers will get is that they can pay their premium at the nearest ItzCash outlet. Mr. Anuj Tyagi, Executive Director, HDFC ERGO General Insurance Company said that the insurer looks forward to utilizing ItzCash’s proven business operations which will enable them to not only collaborate but also expand their reach by offering home, health, and fire insurance to a wider chunk of customers across India.

        1st September 2017

      • IRDAI has permitted usage of OTP for opening e-Insurance Account

        The Insurance Regulatory and Development Authority of India (IRDAI) has permitted the usage of One-Time Password (OTP) for opening e-Insurance Account (eIA). OTP is generated by the computer system and sent to the individual's mobile number or email to authenticate a transaction. OTP is allowed as an alternative to electronic signature which was previously considered a valid authentication. IRDAI has also permitted the verification of the e-Insurance Account holder through the e-KYC authentication facility provided by the UIDAI. UIDAI provides biometric authentication of an individual based on Aadhaar.

        11th September 2017

      • Uber To Provide Free Life Insurance To Its Drivers

        On the occasion of its 4-year anniversary in India, international cab service provider, Uber, recently announced that it would be providing free life insurance coverage to its entire fleet of drivers, beginning 1 September 2017. This unique policy will cover all drivers from the ages between 18 to 65 and provide cover of Rs.5 lakh (in case of death or permanent disability) and cover of Rs.2 lakh in case of hospitalisation which also includes a sub-limit of up to Rs.50,000 for outpatient treatment. This coverage is provided to drivers if they suffer from any of the aforementioned when they have logged in to the Uber app and are available for trip requests, en route or on a trip with Uber.

        This life insurance service for drivers has been launched by Uber in association with ICICI Lombard General Insurance, one of India’s leading insurance provider. Speaking about the announcement, Mr. Prabhjeet Singh, General Manager (North India), Uber, said that all the new schemes being implemented are to assist the drivers in the best way possible.

        For Uber, India is its largest market to date, far ahead of the U.S. The company has rolled out the insurance policy for nearly 4,50,000 drivers, including those from other Asian countries like Indonesia and Myanmar. Majority of the US is still not a part of this plan however.

        Speaking about the partnership with Uber, Mr. Bhargav Dasgupta, MD and CEO, ICICI Lombard General Insurance, said that the insurer has been one of the pioneering forces when it came to introduction of non-life insurance solutions which changing market dynamics and emerging trends. The Uber-ICICI Lombard partnership is also a step in that very direction.

        Besides insurance, Uber has also introduced a range of service like heat maps, driver destinations, pause requests and in-app chat, among others, with the aim of enhancing the experience for their driver-partners.

        31st August 2017

      • Canara HSBC Oriental Life launches ‘PoS - Easy Bima Plan’

        Canara HSBC Oriental Bank of Commerce Life Insurance Company (CHOICE) recently announced a new ‘Point-of-Sale’ product which has been designed for the mass-market segment. The ‘PoS - Easy Bima Plan’ is the first-ever PoS product launched by the insurer and is a pure term insurance plan which, in addition to providing life coverage, also includes a provision where all premiums paid during the payment term are returned if the policyholder survives till the policy matures.

        Speaking on the occasion of the launch, Mr. Anuj Mathur, Chief Executive, CHOICE, said that the plan has been so designed that it is hassle-free to purchase. the buyer has to go through a single-step identification process and fill up a simple proposal form. The documentation required for purchasing the plan is very simple and there is no requirement of undergoing a medical test. Another advantage of this plan is that it is highly affordable. Premiums for this plan start from Rs.1,000 per year. The plan also includes built-in double life cover to cover accidental death.

        The PoS – Easy Bima Plan will initially be available at a regional rural bank of Canara Bank. However, in the coming 2 months, the plan will be available for purchase at Canara Bank and Oriental Bank of Commerce (OBC) branches. A few more months down the line, the plan will most likely also be available online.

        31st August 2017

      • Credit Societies Likely To Get Insurance Cover Soon

        There is good news for credit societies located in Mumbai which will soon get to enjoy insurance coverage from government agencies like district cooperative banks. The state has 15,000 credit societies which have an overall deposit of Rs.25,000 crore. With no insurance cover, several depositors failed to get their deposits back when the credit societies were hit by a financial crisis.

        Co-operative minister, Mr. Subhash Deshmukh has mentioned that the decision to insure credit societies, most of which pertain to the farming sector, will cover all 15,000 organisations. He also mentioned how the cooperative infrastructure/system has been in a state of distress owing to the financial crunch. Therefore, considering that, there is an obvious and urgent need to insure and support the cooperative infrastructure in various sectors against risk.

        The proposal to insure credit societies has already been drafted and the department is expected to submit it to the state cabinet in the next meeting for a final confirmation. The demand to insure co-operatives was proposed by the federation of cooperatives which is presided by Mr. Kaka Koyte.

        Earlier, all cooperative societies in the state of Maharashtra had been asked by the government to donate 20% of their profits towards ‘public purposes’ and strengthening of other smaller societies. This rule was applicable to all cooperatives societies, except those in the housing sector.

        30th August 2017

      • After The Success Of Jan Dhan Yojana, Modi Govt. Now Looks To Get More Indians Insured

        The Jan Dhan Yojana, which was introduced by PM Modi 3 years ago, has done an impressive job of getting a vast chunk of India’s rural and semi-urban population into the banking sphere, and have made them a part of the formal economy. Under the Yojana, nearly 295 million beneficiaries have opened accounts which have an overall deposit of Rs.65,845 crore. Out of the overall beneficiaries who have opened accounts, a whopping 230 million have been issued debit cards which will give them some experience about the workings of the digital economy for the very first time. Over 170 million of the beneficiaries of the Jan Dhan Yojana hail from semi-urban and rural regions of the country. It is quite eye-opening to know that the number of Jan Dhan bank account holders in states like Uttar Pradesh, Jharkhand Bihar, and Chhattisgarh is more or less at par with the population of countries like Australia and Canada combined.

        In his address on Aug 27 to the nation, PM Modi said that individuals who have opened accounts under PMJDY (Pradhan Mantri Jan Dhan Yojana) have also received insurance benefit. With schemes like the Pradhan Mantri Suraksha Bima Yojana and the Pradhan Mantri Jeevan Jyoti Bima Yojana, where the premium ranges from Re.1 and Rs.30, the poor are gaining a new sense of confidence. Countless families have experienced the benefit of insurance as they received the sum assured of the policy after the death of the family head or in times of loss, within only a few days.

        However, as compared to the PMJDY, the other two insurance schemes - PM Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, both of which were introduced in 2015 have only been partly successful so far. The PMJJBY (PM Jeevan Jyoti Bima Yojana) life insurance scheme was only able to attract 35 million people across the country since its launch. With the PMSBY (Pradhan Mantri Suraksha Bima Yojana), which is an accident insurance scheme, things look only slightly better, as per the Finance Ministry data. Approximately 110 million people have opted to be covered under the PMSBY scheme. These numbers are nowhere close to spectacular, considering that the government is really pushing these two schemes with the aim of promoting social security for all in India.

        One of the reason why the accidental insurance scheme (PMSBY) is more popular than the life insurance scheme (PMJJBY) is the difference in premiums. Though both these schemes provide Rs.2 lakh of cover, the accident insurance scheme can be purchased by the poor on the payment of a measly premium of Rs.12 every year. Another reason why the accident insurance scheme is more popular among the economically challenged population is it assures a cover of Rs.1 lakh to the family of the life assured in case the latter suffers from a partial disability following an accident. The premiums for the life insurance scheme stand at Rs.330 per year, which is close to the daily income of many of these people.

        Another reason which has been a major contribution toward the non-adoption of these policies is that the policyholder does not have any control over it’s tenure or continuity. One of the terms of the insurance policy is that the buyer has no other option but to have the premium be auto-debited from their bank account.

        Also, insurers are quite reluctant to settle life insurance claims from those who are covered under these schemes. As per the finance ministry information, only 93% out of the total claims received have been settled by these insurers. The lower percentages of claim settlements are likely to further discourage people from opting for these schemes.

        30th August 2017

      • DHFL Pramerica Life Insurance Enter Into Partnership With Dhanlaxmi Bank

        DHFL Pramerica Life Insurance Company Ltd. (DPLI), one of India’s most trusted insurance provider has announced its tie-up with Dhanlaxmi Bank for the distribution of its portfolio of retail and group life insurance products. According to the agreement signed between the two, the 90-year-old Dhanlaxmi Bank will become DPLI’s corporate agent and help make life insurance products more accessible to customers.

        On the occasion of the tie-up, Mr. G. Sreeram, MD & CEO of Dhanlaxmi Bank said that the partnership with DHFL Pramerica will be instrumental in providing the best-in-class life insurance products to customers from varied segments. Mr. Anoop Pabby, MD at DHFL Pramerica Life Insurance said that with the association with Dhanlaxmi Bank, DPLI will be better able to continue working on increasing life insurance penetration by offering segmented products, supported by digital and CRM capabilities which will help make insurance more accessible to customers.

        The southern region of India is important potential market for DHFL Pramerica. an Following the tie-up with Dhanlaxmi Bank, the insurer will gain a stronger position and hold on its presence in state like Karnataka, Kerala, Andhra Pradesh and Tamil Nadu with the help of a strong distribution channel. With this strategic move, not only will DPLI strengthen its presence in the south but also be able to enhance their distribution footprint across the country.

        At the moment, DHFL Pramerica boasts of a total number of 103 branches across India, out of which 6 branches are located in 6 different south Indian cities of Chennai, Coimbatore, Bengaluru, Belgaum, Hyderabad and Kochi. The insurer offers 28 life insurance products and 6 add-on riders which fulfil various purposes like life insurance needs, children future protection, retirement planning, and more. DHFL Pramerica was established as a joint venture between Prudential International Insurance Holdings Ltd (PIIH) and DHFL Investments Limited (DIL), a wholly-owned subsidiary of Dewan Housing Finance Corporation Ltd.

        29th August 2017

      • Jan Dhan 3rs Anniversary: 30 Crore Families Have Got Jan Dhan Accounts, Rs.65,000 Crore Deposited

        The popular Pradhan Mantri Jan Dhan Yojana which was kick-started by Prime Minister Narendra Modi with the objective of promoting financial inclusion, has completed 3 successful years today. Started on 24 Aug 2014, the scheme was introduced to ensure that the common man gets access to a variety of essential financial services like banking, savings accounts, deposit accounts, remittance, pension, credit, insurance and more.

        Speaking on the occasion of its anniversary, the PM mentioned that a minimum number of 30 crore new families have got Jan Dhan accounts which have an overall deposit close to Rs.65,000 crore. He said that surveys have been conducted by banks to find out just how the common man has been able to benefit from not only the Jan Dhan Yojna scheme, but also various other insurance schemes like Pradhan Mantri Jeewan Jyoti Bima Yojna and Pradhan Mantri Suraksha Bima Yojna, and the Pradhan Mantri Mudra Yojna. The findings of the survey have been nothing short of inspiring.

        The Prime Minister said that these schemes are a way of saving for the poor and help empower their future. Individuals and families who have opened their accounts under the Pradhan Mantri Jan Dhan Yojna have benefited from insurance as well.

        Finance Minister Arun Jaitley mentioned that the JAM (Jan Dhan, Aadhaar and mobile) trinity has ‘’brought about a social revolution which will help bring all Indians into a common financial, economic and digital space, similar to how GST has created a unified market.’’

        Mr Jaitley also said that the JAM trinity not only benefit the people but also offers substantial benefits to the government, the economy and especially the poor. Highlighting its benefits, Mr. Jaitley said that with JAM, not only will the poor have access to financial services but they will also be cushioned against life's major shocks with insurance. All this while, government finances will get a chance to be improved due to the reduced subsidy burden and weeding out of leakages from the system.

        29th August 2017

      • Life insurance Is The Key To Providing Protection & Leaving A Legacy

        India is a family-oriented country where traditions and beliefs still hold strong. Putting one’s wishes aside to fulfil those of your loved ones has long been the norm. Also, many elders took it upon themselves to leave a legacy behind for the family, after their death.

        Considering the above, life insurance has been the key in allowing individuals achieve that. Life insurance policies which offer lifetime coverage are instrumental in helping one achieve both goals – of providing financial protection to their dependents in case of untimely demise, and also leaving behind a legacy for them. Under a whole life policy, the family of the life assured is entitled to receive the death benefit after the former has passed away, even if at the age of 100.

        This way, they can somewhat ensure that their loved ones will not be eft fending for themselves and will have some sort of financial cushion to fall back on. The benefit received after the life assured’s death can help the beneficiary take care of short and long term liabilities and expenses like loan repayments, household expenses, children’s upbringing, etc.

        24th August 2017

      • Must Provide Capital Commitment, Says IRDAI To Pros Seeking Insurance Licence

        The Insurance Regulatory Development Authority of India (IRDAI) recently announced that it is looking at capital commitment from professionals seeking or applying for an insurance licence. This is being done to ensure that the fund flow contuse unhindered to promote future growth, especially for those which are supported by short-sighted private equity players.

        Speaking on the matter, an IRDAI official said that it is looking for long-term investment commitment from promoters seeking a spot in the insurance space. In case of individuals seeking the same, IRDAI would like to ensure the capital of the promoter is long-term and their net worth strong.

        Currently, IRDAI is evaluating applications from three individuals who are backed by large funds and seeking to operate general insurance companies. These are Go Digit General Insurance by Kamesh Goyal, Acko General Insurance by Varun Dua and Aspire Health Insurance by Rajesh Relan. One of the applicants said that IRDAI is proceeding slowly when it comes to granting licences as they wish to evaluate who is the best candidate that can fund future capital call and ensure stickiness of capital. Adding to this, they also said that IRDAI is not keen on providing insurance licences to individuals turned promoters, which is why they are asking them for big capital commitment.

        When it comes to granting an insurance licence, IRDAI is laying maximum focus on the promoter’s the ability of build a successful business. This depends not only on the promoter’s ability at understanding the business but also the amount of capital they can bring into the business. This is due to the fact that insurance companies are in need of more funding from domestic sources since foreign direct investment has been capped at 49%.

        28th August 2017

      • Importance Of Having Adequate Insurance Coverage

        While many people have already become aware of the importance of having an insurance policy, there are many among these who do not know the importance of being adequately insured. According to the data available, a majority of households only put away 19% of their total savings towards life insurance. This is duly reflected in the fact that insurance penetration in India sits at a mere 2.72%, as opposed to 3.74% in Asia and 3.99% in Europe.

        When it comes to the discussion of under-insurance in India, it is not due to the rising rates of premiums for policies. In fact, premium rates have only gone up by a mere 3 to 4% in the past 4 years. The real reason for under-insurance lies in the fact that most policy owners fail to revise their policies to adjust to changed requirements. In case someone has received insurance cover from their employer, they live under the notion that the employer offered cover will be sufficient. However, this is seldom the case, due to which, many people end up paying hefty medical bills. In case of employer-provided life insurance, the same may hardly be sufficient to adequately cover the short and long term expenses of your dependents such as debts, loans credit card dues, day0to-day expenses, education expenses, etc.

        When it comes to assessing your insurance coverage, the thumb rule is to take an amount which is 10x your annual salary. Calculate the expenses your family is likely to incur in the coming 15-20 years and don’t forget to take inflation into account.

        24th August 2017

      • More and More Insurers Heading The IPO Way

        India’s IPO market seems to be in for a good time this year as more and more insurance providers hop onto the IPO bandwagon. There is a rush of insurers looking to tap into the increasing investor demand for financial assets. By the end of this year, at least 4 Indian insurance providers will be offering stocks via an IPO, bringing the total figure of IPO funds close to 500 billion rupees.

        HDFC Standard Life Insurance Co. is planning to raise as much as Rs.100 billion via their IPO, while SBI Life’s potential IPO could raise about Rs.85 billion rupees. Insurance providers are looking to benefit from the surge in the Indian equity market where there is a shortage of insurance stocks for investors who are looking to diversify their holdings in the financial industry. This surge in IPO offerings has followed after the Indian parliament’s decision to increase the foreign investment and ownership in the nation’s insurers from 29% to 49%.

        21st August 2017

      • Reliance Capital Files IPO Application To List Its General Insurance Arm

        Life insurance is a contract wherein the insured agrees to pay the insurer a fixed premium either regularly (for regular premium policies), for a fixed number of years (for limited premium pay policies), or just once (for single premium policies). However, what can one do in case they have an unexpected inflow of income and would like to direct the same towards their life insurance plan? This option is available under ULIPs or unit linked insurance plans where the policy permits the insured to top up their premiums. This is how it’s done.

        Top-up Premium

        Top-up premium is simply the amount of money which is paid at unspecified intervals and over and above the base policy premium, as specified under the insurance agreement. According to insurance rules, every top-up premium will be considered as a single premium contract. In simpler words, all the additional premium which you pay towards your ULIP must get you additional coverage as well.

        According to the regulations for single-premium policies, for those up to the age of 45 years, the minimum sum assured must be 125% of the single premium. For individuals above 45 years, the minimum sum assured must be 110% of the premium paid.

        The premium top-up option is usually not available under traditional insurance-cum-investment policies because these plans are usually accompanied with a minimum guaranteed return and are opaque. ULIPs, on the other hand, feature unbundled costs and offer market-linked returns.

        28th August 2017

      • ICICI Lombard’s InstaSpect to assist in faster claim settlements

        ICICI Lombard has introduced a video inspection facility, the InstaSpect, for car insurance claims that is nothing short of a phenomenon in the Indian insurance domain. A first-of-its-kind initiative in the industry, the live video inspection facility allows policyholders to record instant claims through the ICICI Lombard mobile app, ‘Insure’.

        Through the DIY app, the policyholder does the survey of the damaged car for expedition of the claim approval.

        The customer opens the InstaSpect option of the ‘Insure’ app and connects to the claims manager instantly. The manager guides the customer on performing a survey of the vehicle and streaming the video in real-time. The policy documents will also have to be uploaded following the survey.

        The claims manager then assesses the damage to the vehicle on the basis of the video and notifies the policyholder of the liability and next steps. A rough estimate of the liability and damage will also be calculated and conveyed to the customer.

        If the customer agrees to the estimate, the claims manager can approve the claim immediately. The repair of the car will commence after this approval. All other notifications and approvals will be provided to the network garage within a few hours.

        This spot-on vehicle inspection facility reduces the waiting time and boosts the transparency of the entire claims process.

        ICICI Lombard has taken a survey to assess the acceptance of the InstaSpect feature and has received an overall positive response from the participants.

        23rd August 2017

      • Birla Sun Life Survey Indicates Income Stability A Bigger Concern Than Price Rise in 2017

        Birla Sun Life Insurance Co. Ltd., one of India’s leading insurance provider recently conducted a survey to find out major financial concerns being faced by citizens of the country. The Birla Sun Life Protection Survey findings indicated that in 2013, rising prices were a primary financial concern of nearly 46% of the overall respondents. However, in 2017, only 13% respondents hold that view. This year’s Protection survey was taken by a total of 1,540 working individuals ranging from 22 years to 50 years of age, residing across 9 major Indian cities. For nearly 33% of the respondents taking the survey in 2017, job and income stability is a major financial concern, as compared to a mere 12% who had the same concern back in 2013.

        The second major concern among the respondents is rising health costs. Nearly 22% of the respondents taking the survey in 2017 mentioned it as another major worry, as compared to 10% of the respondents who felt the same in 2013. The other areas of concern included the rapidly declining value of money and the constant rise in household expenses, among other related concerns. In light of all this, ne positive trend has been observed, which is, that a larger number of respondents are now aware of the importance of having adequate insurance coverage.

        The need for insurance

        As opposed to 48% of respondents in 2013, nearly 60% of the survey respondents from 2017 mentioned the need to purchase insurance. Among these respondents, half of them mentioned that they have adequate coverage while 41% admitted to having inadequate coverage. According to financial experts, the ideal amount of life insurance cover one should have must be sufficient to allow the dependents (spouse, parents, and children) to take care of short and long term expenses like household expenses, loans repayments, children’s education and marriage expenses, etc. deciding on the amount of coverage that is needed can be done via two principal methods, says Mr. Prakash Praharaj, a SEBI registered investment adviser (RIA) and founder of Maxsecure Financial Planners. The need analysis method and income method are the two ways by which one can easily assess the amount of insurance coverage they require.

        According to him, term insurance is one of the best protection option as it is affordable and provides cover against the risk of death. Another option is life insurance which will protect against death and also a variety of health related issues.

        Planning for retirement

        As compared to a mere 13% respondents who acknowledged the importance of retirement planning, nearly 46% of the respondents taking the survey in 2017 observed the importance of beginning retirement planning from an early age. A higher number of people are now not only saving but also investing greater chunks of their earnings towards a retirement corpus. During the 2013 survey, about 19% of the respondents admitted to saving more than 25% of their income. In 2017, nearly 44% of the respondents admitted to saving the same or more.

        23rd August 2017

      • Max Life Insurance Takes Significant steps To Improve Customer Centricity

        Max Life Insurance, one of India’s leading life insurance provider has recently implemented some customer centric measures to encourage and build customer trust. The insurer has been successful in reducing the unclaimed overdue amount to customers from Rs.213 crore (2016) to a much lower amount of Rs.50 crore, as recorded on 31 March 2017. This figure could possibly be the lowest in the insurance industry where the Unclaimed Overdue to the customer has been recorded at Rs.10,469 crores as in March 2017. Over the course of the last 5 years, Max Life Insurance has registered an average reduction of 25% in this aforementioned amount, which is quite significant, considering that at the industry level, there has been an average increase of 51% increase in unclaimed overdue. In this regard, Max Life has been the only exception. Unclaimed overdue is the money that belongs to the customer but remains unpaid due to many reasons. As a result, it is an ultimate loss for the customer and this itself goes against the spirit of trust which customers have in their life insurance provider.

        Mr. Prashant Tripathy, Sr. Director & Chief Financial Officer at Max Life Insurance said that the company is forever on the lookout for opportunities to enrich the experience of their customers. As per their internal data analysis, the company found out that only a fourth of their customers have been banking their cheques within a month of it’s being despatched. Out of the total unclaimed overdue amount, 75% was pertaining to instances where the bank cheques had been issued over 6 months back. Having identified this problem, the insurer came out with an effective solution to the problem so they may help maximize the benefits of their policyholders.

        After much digging, Max Life has been able to identify the problem, the root of which is gaps in customer-insurer contact and failure on the customer’s part to update their bank account details with the insurer. Also, the penetration rate of banking is very low in India and an alarmingly high number of bank accounts continue to lie dormant as customers are still apprehensive of making electronic payments. To handle these issues, Max Life dedicated expert personnel from various departments such as finance, distribution, and operations to find solutions which are not only easy to execute but will also enable timely payment to customers.

        Within a short span of a year of implementing this solution, the insurer has achieved commendable results, and has been able to lower the unclaimed overdue amount to Rs.50 crore. They continue to strive to completely eliminate this in the course of the next few years.

        22nd August 2017

      • IRDAI Takes Steps To Make Insurance Even Safer For Customers

        In an effort to make insurance transactions more transparent, prompt and safe for customers, IRDAI (Insurance Regulatory and Development Authority of India) has recently introduced a set of regulations which will require insurance companies to regulations make a mention of important policy-related details like bonuses to be declared, revival scheme details, guaranteed surrender value, etc.

        Regulation Provisions

        IRDAI has stressed the importance of a board-approved policy to protect the interests of policyholders. Insurers will be required to mention policy details such as the Guaranteed Surrender Value of a policy, bonus types to be declared (compounded reversionary or simple), revival schemes, and more in the policy document. The email address of the policy servicing office must be compulsorily be given on the policy document as well.

        For health insurance policies, IRDAI has asked insurers to mention important details like specific and general exclusions, pre-existing diseases covered, general and specific waiting period, etc. they must also mention details of the third-party administrators, grievance redressal system, and policy migration guidelines as well. Also, insurers must settle all claims within a period of 30 days after the supporting documents have been received.

        How This Will Benefit Policyholders

        These regulations passed by IRDAI are set to benefit policyholders in many ways such as greater transparency on part of the insurance company. With the terms, conditions and other details being mentioned outright, the insurance transaction will become more transparent. Also, IRDAI has urged insurers to be more sensitive to customer needs so that more and more customers will be encouraged to not only purchase insurance but also renew their policies each year.

        When it comes to insurance, the core of the problem arises from the fact that policyholders seldom go through the terms and conditions of the policy themselves, given the often confusing technical language used. Because of this, they end up asking the agent to explain the same to them. However, many agents are also unable to comprehend these details easily, as a result of which, they are unable to translate exactly what the policy mentions. As a result, they may not be able to sell the policy.

        Considering this problem, the most suitable solution to remedy it lies in the simplification of policy conditions which are given in complicated technical terms. It is the duty of the insurer to ensure that the policyholder understands exactly what they are paying for and what they will get in return under the policy. Details, terms and conditions of the policy must be explained to the policyholder in the simplest of terms for better understanding on the policyholder’s part. Doing this can really benefit the insurers who will them be able to not only get the policyholder’s to fully understand the policy but also encourage the latter to renew their policy whenever it is about to expire.

        The other aspect of the insurance transaction which insurers must look to transform is the way in which policies are serviced and customer grievances addressed. Here, technology can be of great help and enable the insurance company to lower the margin of errors in transactions.

        When it comes to an insurer’s credibility, there are two aspects which can greatly influence the same. The first being the claim settlement ratio and the second being the time taken to resolve policy related issues. these two aspects can greatly affect the reputation of an insurance provider and either encourage or discourage a customer to carry out transactions with them in the future.

        21st August 2017

      • Reliance Capital Files IPO Application To List Its General Insurance Arm

        Reliance General Insurance Company (RGIC) recently became the fourth general insurer in India to file their IPO application with the IRDAI (Insurance Regulatory and Development Authority of India). With this IPO, Reliance Capital (RCap), the parent company of RGIC, plans to sell up to 25% of its stake in its general insurance venture. They plan to raise approximately Rs.1,500 to Rs.2,000 crore via the IPO. According to sources, the application for the IPO has already been filed by Reliance Capital for the RGIC IPO.

        Currently, Reliance General Insurance Company is wholly owned by Reliance Capital which is waiting for the regulatory body’s approval to sell up to 25% of its stake in RGIC in the initial offering. Apart from RGIC, Reliance Capital also has plans to list Reliance Nippon AMC and Reliance Home Finance on the market this year. According to sources, these listings are a part of the value unlocking measures being undertaken by Reliance Capital, as per which Reliance Home Finance is planned to be listed in September followed by Reliance Nippon AMC in October.

        The IPO for Reliance General Insurance is planned to be listed in November. However, earlier this year, in June, the board had already given the green signal to the proposal of listing the company independently on the stock exchange. With this IPO, the company is expecting to offer substantial value to all their stakeholders. Reliance General Insurance currently offers a wide array of general insurance products like health insurance, motor insurance, travel insurance, fire insurance, home insurance, and crop insurance.

        FY17 has been a good one for Reliance General Insurance. The insurer outperformed its competitors in the industry, recording 40% growth in FY17 along with an annual early gross written premium worth Rs.4,007 crore. Reliance General operates via a diversified distribution network which includes alliances with several leading banks like IndusInd Bank, Catholic Syrian Bank, Andhra Bank and Bank of India. The insurer has over 120 branches and 24,000+ agents across the country.

        14th August 2017

      • HDFC Life IPO To Test Its Claim On A Premium Valuation

        A year back, HDFC Life Insurance and Max Life were set to merge operations to form India’s biggest private sector insurance company which was pinned to be valued at Rs.45,000 crore with HDFC Life alone. However, the deal fell through, following which HDFC Life, which is India’s third largest insurance provider, has decided to proceed with an IPO (initial public offering). The promoters of HDFC Life have expressed the desire to have the valuation to remain as close to what the was going to be achieved following the merger with Max Life, if not more.

        For the FY17, HDFC Life’s embedded value has increased to Rs.12,390 crore. The final valuations will depend on what merchant bankers and selling shareholders decide at the time of the IPO. However, there are sufficient factors in favour of HDFC Life for commanding the valuation predicted following last year’s merger.

        The first factor is that quality of HDFC Life’s product mix is relatively superior to that of ICICI Prudential Life Insurance. 53% of HDFC’s portfolio comprises traditional policies unlike ICICI Prudential, who’s 74% share comprises of market-linked products. Also, HDFC Life boasts of a stronger franchise. It’s direct business network of branches contributes to over 50% of the new business premium which has grown at a CAGR (compounded annual growth rate) of 17.8% for the past 5 years leading up to FY17. This CAGR is also the highest among the crop of private insurance providers.

        The other factor which is likely to contribute towards the success of HDFC Life’s IPO is, that unlike last year, the stock prices will be lower this year, compared to those of ICICI Prudential Life Insurance. This is because ICICI Prudential Life Insurance currently trades at 4 times its embedded value for FY2017, while HDFC’s valuation of Rs.45,000 crore will put it the insurer at a multiple of 3.7 times its embedded value.

        ICICI Prudential was launched at a discount as compared with HDFC Life. On the day of the listing, the stock fell by 11% following the worry that its valuation was steep. However, the stock which was listed at Rs.330 per share has gained an impressive 29% and now stood at Rs.427.15 per share in a period of only 11 months. This itself will lend a helping hand to HDFC Life’s offering.

        21st August 2017

      • Guarantees Provided By Different Insurance Plans

        In today’s day and age, life insurance has become an essential commodity. Given all the risks which surround us, it is only sensible to not only have yourself but also have your loved ones insured against financial liabilities which can follow an income earner’s sudden demise. Before you buy a life insurance policy, the one thing you must consider is whether or not the cover you have purchased will be sufficient to cover the needs of our family.

        Different life insurance policies provide different types of guaranteed benefits. Some policies guarantee life cover for your dependents while others guarantee life cover which also includes an element of saving by way of investing premiums in various funds. Some policies provide life cover for a fixed term and no other benefits. So, in the end, you have to evaluate and decide which type of cover is best suited to your needs.

        Under life insurance, there are various plan providing a variety of guarantees which provide cover for different events which may take place during the policy term. These may include death, accident, or disability of the life assured. TO know more about what different insurance plans guarantee you, read further.

        Term Insurance Plans

        Term plans are also known as pure risk protection plans. This is because they only provide cover against the risk of death of the policyholder. Normally, term plans will provide cover of up to Rs.10 crore or higher. Under term plans, there is only death benefit sum assured which is provided in case of the premature death of the policyholder before the end of the policy term. There is no survival or maturity benefit which is provided after the policy matures or if the policyholder survives the policy term.

        ULIP (Unit Linked Insurance Plan)

        ULIP is another type of insurance policy which combines the benefits of life insurance cover with investment. Under a ULIP, policyholders get life insurance coverage along with a chance to invest in a variety of funds and get returns on the same. ULIP plans offer a minimum amount towards death benefit which is guaranteed but the actual amount provided under the benefit can be higher than the minimum guaranteed amount. It is however important to note that not all ULIPs offer guaranteed survival benefits. Few plans like ULIP pension plans do offer a minimum guaranteed survival benefit if the policyholder survives the policy term. Under ULIP plans, it is also likely that the amount of death benefit to be provided may increase as the fund value increases.

        21st August 2017

      • Life Insurance Sector Records 47% Growth in New Business Premium in July

        According to IRDAI data that was recently published, the life insurance companies have registered a whopping 47% growth under new business premium for the month of July. The new premium grew by 47.4% with a figure of Rs.20,427.68 crore. In comparison, the life insurance sector earned new business premium worth Rs.13,854.44 crore in the corresponding month last year. India’s biggest and sole public sector insurance company, Life Insurance corporation of India (LIC) alone recorded a 51.4% increase for premiums during the month of July. The insurer’s new premium stood at Rs.16,254.91 crore in July 2017, as compared to Rs.10,737.92 crore in July 2016.

        The remaining 23 private sector insurance companies registered an overall increase of 34% in the total business premium for July. As per the Insurance Regulatory and Development Authority of India (IRDAI) data, new business premium figure for July stands at Rs.4,172.76 crore as compared to Rs.3,116.52 crore which was recorded for the same month in 2016. SBI Life Insurance recorded a 25.3% increase in their income from premiums which stood at Rs.847.91 crore. ICICI Prudential Life also recorded an increase of 34.2% in their new premium income which rose to Rs.759.08 crore in July 2017.

        HDFC Standard Life recorded a 68.8% increase in their new business premium which stood at Rs.880.29 crore in July 2017, as compared to Rs.521.43 crore in July the previous year. Birla Sun Life also registered a 57.2% increase in their new premium income which stood at Rs.195.61 crore in July 2017. Canara HSBC OBC Life is one of the highest gainers who registered a whopping 75% increase in new business premium which stood at Rs 99.87 crore in July 2017.

        the overall premium collection by the insurance sector for the period between April to July 2017 increased by 18%. The total figure for July stood at Rs.53,659.66 crore as compared to Rs.45,247 crore that was recorded in July 2016.

        14th August 2017

      • Non-life Insurance Premium Increase By 9% in July

        The insurance premiums of non-life insurance companies recorded a 9% increase in the month of July. The new premium stood at Rs.9,791 crore as compared to Rs.8,975 crore which was recorded in July 2016. Out of the total premium which was underwritten by the general insurance companies during July, public sector insurance players collected a total of Rs.4,213 crore, a lower figure as compared to Rs.4,502 crore which was collected in July from the last fiscal. Private insurance players contributed nearly Rs.5,140 crore in the month of July 2017 and managed to get positive growth.

        Among the four public sector insurance companies, only National Insurance Company manged to achieve positive growth during July. They clocked an overall premium of Rs.1,123 crore this July as opposed to Rs.1,067 crore collected in July 2016.

        Although having retained the top position, New India Assurance saw a decline in their total premium for July, which dropped by 11% and stood at Rs.1,315 crore. United India Assurance recorded total premiums worth Rs.1,096 crore this July, s compared to Rs.1,220 crore last July. Oriental Insurance collected total premiums worth Rs.679 crore in July 2017 as compared to Rs.732 crore in July 2016.

        In the private sector, ICICI Lombard came on top after collecting a total underwritten premium of Rs.1,010 crore in July 2017, which was an 11% increase from last year’s July premium which stood at Rs.910 crore. Bajaj Allianz collected total premium worth Rs.590 crore in July 2017, which declined from Rs.598 crore in July 2016. HDFC Ergo General collected total premiums worth Rs.452 crore in July 2017 and saw a year on year increase as compared to Rs.320 crore which was collected in July 2016. The collected premium of 5 standalone health insurers grew from Rs.385 crore to Rs.552 crore.

        10th August 2017

      • Bajaj Allianz Life Insurance Launches Future Wealth Gain ULIP WIth Cancer Cover

        Bajaj Allianz Life Insurance Co. Ltd, one of India’s leading insurance provider has recently launched a new unit linked insurance plan (ULIP) known as ‘Future Wealth Gain’ which offers insurance cover if the life insured is diagnosed with cancer. This is a ULIP plan which offers the dual benefit of insurance cover along with the chance to invest money in market-linked funds.

        The Future Wealth Gain is classified as a type-1 ULIP where in the event of the death of the policyholder, the insurance company will pay either the insurance cover or the fund value, whichever amount is higher.

        There are two variants available under this plan – Wealth Plus and Wealth Plus Care. Under the first variant (Wealth Plus), in case the policyholder passes away during the policy term, the insurance company will provide either the sum assured or the fund value, whichever is higher, subject to a minimum payment of 105% of total premiums paid.

        Under the second variant (Wealth Plus Care), if the policyholder is diagnosed with cancer or passes away due to it, the insurer will pay either the sum assured or the fund value, whichever is higher, subject to a minimum payment of 105% of total premiums paid. Besides the aforementioned benefit, this variant of the policy also includes an income benefit where the remaining policy premiums are paid to the beneficiary as per the schedule under which they are due for payment. However, one must also remember, that the cancer cover provided under this variant is subject to an initial waiting period of 6 months. Also, individuals who are already diagnosed with cancer will not be eligible for this plan.

        The working of this policy is quite simple. The premiums paid by the policyholder will be invested in funds of their choice. Policy charges such as cost of insurance, will be taken care of from the fund value. Premium allocation charges, which can range from 0 to 8.5% in the first year, will be deducted from the premium amount itself.

        9th August 2017

      • General Insurance Corporation files draft papers for IPO

        General Insurance Corporation of India (GIC Re) recently filed a draft red herring prospectus (DRHP) for their IPO with SEBI (Securities and Exchange Board of India). GIC’s offer consists of a fresh issue of 1.72 crore shares, along with an offer for sale of 10.75 crore shares. As per the DRHP, the government’s share in the reinsurance firm after the IPO will reduce by 14.22%. GIC is making the offer based on the book building process and up to 50% of the offer will be allotted on a proportionate basis to Qualified Institutional Buyers (QIBs).

        Additionally, up to 15% of the offer will be available for allocation to non-institutional bidders on a proportionate basis, and up to 35% of the offer will be available to retail investors for allocation. GIC Re also said that it will not be receiving any proceeds from the offer for sale. The total proceeds received from the fresh issue of shares will be used for building the firm’s capital base to support growth of business, maintain current solvency levels and for other general corporate purposes.

        In terms of profits, GIC recorded a profit after tax of Rs 3,127 crore in FY17 which is a significant increase of 9.8% as compared to the profits from the last fiscal, mainly attributed to growth in investment income and crop insurance. GIC RE’s net worth stood at Rs.47,983 crore, as compared to Rs.38,281 crore. In the current fiscal, GIC Re registered total premium income of Rs.33,585 crore, which is an 82.2% increase from last year’s figure, which stood at Rs.18,486 crore.

        9th August 2017

      • IRDA Instructs Insurers To Lower Costs, Cap on Expense Ratio Likely

        IRDAI (Insurance Regulatory and Development Authority of India) chairman, Mr. T.S. Vijayan has recently hinted at a likely cap on expense ratios of insurance companies. If brought into effect, this move may force insurance companies to lower agent commissions, curb misselling of policies and offer affordable products.

        Speaking at the annual insurance summit organized by the Confederation of Indian Industry (CII), Mr. Vijayan urged insurers to take steps to offer cost-effective insurance policies to customers instead increasing the incentives of agents in form of commissions and only focusing on upping profits. He also mentioned about the insurance information bureau which analyses various ratios and provides bigger data about the insurance industry. He urged insurers to make use of this data. He also hinted at the likely imposition of a cap on management expenses of insurance companies, a step which may be taken eventually.

        Expense ratio in the insurance industry has been a measure of profitability and is calculated by dividing the expenses associated with acquiring, underwriting and servicing premiums by the total premiums earned by the insurer. Expenses may include employee salaries, advertising costs, and commissions for the sales people. Adding to this, he said that India’s insurance sector has been troubled with high expense ratios for over a decade. As per an analysis carried out by Willis Towers Watson in June 2016, the overall expense ratio for the life insurance industry, with the exception of Aviva Life, Sahara Life and Bharti AXA Life, decreased from 16.3% in 2014-15 to 15.5% in 2015-16, with concentrated efforts being made to rationalize expenses. State owned LIC (Life Insurance Corp. of India) continues to take the top spot by maintaining the lowest expense ratio of 8.5% in the industry.

        8th August 2017

      • IRDAI grants Embattled Sahara Life One More Week

        The ongoing Sahara Life issue has taken a new turn. In the last update, IRDAI (Insurance Regulatory and Development Authority of India) had ordered ICICI Prudential Life Insurance Co. Ltd to take over Sahara Life’s insurance business on 28th July. The takeover was to take place on 31 July. However, as per the new update, this takeover has been put on hold.

        On the date of the takeover, the Securities Appellate Tribunal (SAT) ordered a status quo after Sahara India Life Insurance approached the tribunal against IRDAI’s takeover order where Sahara’s life insurance business would be transferred over to ICICI Prudential Life Insurance. Following the appeal, the tribunal has asked IRDAI to respond to the matter by 4 August. The issue will be taken up for a final hearing on 7 August. Status quo implies that Sahara Life will continue to operate under the administration of IRDAI, which has appointed Mr. R.K. Sharma, GM at IRDAI, as the administrator. During this period, Sahara Life will not be allowed to issue fresh policies to customers but can continue to service existing policies till 7 August.

        Post status quo

        More clarity regarding this issue can only be expected after Aug 7 after the SAT has made a decision regarding the matter. Till then, Sahara Life can service existing policies, which includes claims and renewal of policies. They will not be permitted to issue fresh insurance policies. However, experts have assured that the customer’s interests will be given utmost priority in the matter, regardless of the decision that is reached.

        2nd August 2017

      • Aadhaar Not Compulsory For Insurance: IRDAI

        To bring the various rumours floating around, to rest, the IRDAI (Insurance Regulatory and Development Authority of India) has recently announced that Aadhaar will not be a compulsory requirement under the KYC section for insurance policies. Regarding the announcement, IRDAI Chairman, Mr. T S Vijayan said that while the Aadhaar will not be a compulsory requirement for insurance, it is the most uncomplicated one.

        Speaking LIC’s shareholdings in listed companies, Mr. Vijayan mentioned that regulation for investment is 15%, but in exceptional circumstances, exemptions may be provided for higher investment. However, in the end, all investments must be done with the objective of providing benefit to the policy holders and investors.

        On the topic of distribution in the insurance sector, the chairman said that more and more insurance providers are being urged to strengthen their distribution structure by combining technology with human touch. Technology can help in eliminating instances of fraud in the insurance sector. However, digitisation alone cannot eliminate fraud. As technology continues to grow, people will find a way to hack into it and commit frauds. To prevent this, it is necessary to combine the digital with the human matrix to capture individual behavioural data.

        8th August 2017

      • SBI Life Receives Final Approval from SBI Central Board for IPO

        SBI Life Insurance will soon become the second insurer to go public after ICICI Prudential Life. SBI has approved the dilution of its stake in the life insurance company through a public offering and has now received a sectoral regulatory approval. The Insurance Regulatory and Development Authority of India (IRDAI) has recently approved a Rs.7,000 crore IPO application filed by SBI Life. SBI Life follows ICICI Prudential as the second largest private life insurer. SBI Life’s net profit last year has shown a growth of 10.9% to Rs.954.65 crore from the previous year’s Rs.861.03 crore in March this year.

        7th August 2017

      • Digitisation - How The Insurance Sector Is Benefiting

        Digitisation has played a very crucial role in an age when customers are on the lookout for instant solutions. The insurance sector is no stranger to the benefits of digitisation and has benefited from it to a significant extent already. With the help of digitisation, companies have been able to identify technological gaps in the process, as a result of which, they have been able to reach out to their customers in a fraction of the time taken before. Digitisation has also helped bring about a massive change in how companies do their business. As opposed to the older ways, where a business could only reach out to one customer at a time, now can reach out to multiple customers, in a shorter time and expanding its reach.

        Another significant change which digitisation has brought about is lowering the points of failure. In the insurance industry, there are multiple touch points that involve highly risky processes. Any error in these processes can not only cost the customer but also the company. With the help of automation and digitisation, companies can now reach out to their customers directly and reduce paper work by pulling information identity proofs like Aadhaar cards, PAN cards, and the like. This way, the chances of an error being committed are minimal.

        When it comes to insurance, several involved processes such as comparing between various products, purchase, servicing, underwriting, claim settlements, etc., are now carried out digitally. In an effort to reach out and address the needs of a larger volume of customers, insurers are now employing live chat bots on their websites to help resolve customer queries on a real-time basis.

        Another aspect of the insurance process which is more beneficial on the online platform is its purchase. As more and more people are now realizing, it is cheaper to get an insurance policy online, as compared to offline. With the elimination of intermediaries and middlemen in the process of online purchase, insurers are able to offer policies at a relatively lower price, hence providing higher value for money. From comparing policies to purchasing them, from getting claims registered to making premium payments, digitisation has transformed the insurance buying experience, making it streamlined, transparent and hassle-free. With the help of digitisation, insurers have been able to reach out to people in far flung areas, thereby making the service available to those who most need it.

        7th August 2017

      • Max Life Begins To Reap Benefits From Its Digital Initiatives

        About a year and a half back, Max Life Insurance started aggressively adopting digital mediums for distributing and servicing insurance products. At the time, below 5% of customers made use of digital channels to purchase insurance. Over time, with the use of the right strategies, the percentage of customers who have taken the digital approach to purchasing insurance from Max Life has gone up significantly to 20-22%.

        Mr. Manik Nangia, Director of Marketing & Chief Digital Officer of Max Life Digital initiatives, said that these digital drive has been aimed at increase productivity, bring down costs or reduce friction in processes. As an example, he mentioned that 3/4th of Max Life policies have been issued within a matter of 2 days. Also, the error rate has dropped since agents fill up the details in the presence of the customer who can verify it then and there. When it comes to reducing friction in the process, the digitization now doesn’t require a customer to provide their pay slips where the PAN number has already been provided. With the help of digitalization, agent’s calendars are synced on their phones, and reminders can be easily sent prior to meetings with potential clients.

        The analytics centre set up by Max Life has been crucial in serving the company’s complete value chain which comprises of distribution, customer service, retention, claims and fraud prevention.

        Speaking about the adoption of digital by the insurance sector, Mr. Avinash G. Singh, Associate VP of Investment Research & Analytics Practice at Aranca, a global research and advisory firm, said that the life insurance segment has been a tad slower than the general insurance segment in adopting digital. It will take at least 5-10 years for until the life insurance segment can see a significant chunk of policies to be impacted by digital, especially in semi-affluent and below households.

        4th August 2017

      • Private Banking Sector To Have A Clear Home Run Following PSU Consolidation

        Mr. Rohit Agarwal, Equity Fund Manager at Kotak Life Insurance recently gave his views on some of the events affecting the financial and insurance sector. Following the recent 25 bps rate cut by the RBI, there was a strong reaction from the markets which were expecting 50bps. Asked if Kotak would be adjusting their portfolio, Mr. Agarwal said that at this time, private banks which are making use of technology and employing digital platforms as their medium are simply far ahead of their peers, adding significantly to their market share with each quarter. He also said that a clear majority (70%) of the banking system market share has been and continues to be in favour of PSUs. However, with the likely consolidations in the PSU sector for the coming 2-3 years, the private banking sector will have a clear home run and will have the chance to actually choose the credit.

        Regarding the effect of the GST implementation on FMCG companies, Mr. Agarwal was of the view that the impact of GST has been quite evident on the FMCG sector in terms of destocking. However, it requires thorough evaluation to actually find out which companies will end up benefiting due t =o the GST implementation. While most companies will benefit, most does not include everyone. Also, the extent of the benefit won’t be the same.

        The system which was unorganized will definitely benefit by becoming increasingly organized. Stocks which are correcting 10-20% may actually end up offering good value in the long term. However, the restocking phase which began in July witnessed only minimal trade in the first 10 days of the month, following GST implementation. Due to this, expectations from the second quarter need not go high, just because the Q1 was a destocking phase. However, one can expect things to get better as the GST system gets more refined with time.

        4th August 2017

      • Kotak Life Insurance Unveils New Digital Campaign #LaterMayBeLate

        Kotak Life Insurance recently unveiled its latest digital campaign, #LaterMayBeLate which targets people between the ages of 30-40 years who have not bought insurance to secure the future of their loved ones. The campaign has been conceptualized by an agency called What’s Your Problem.

        The essence of the campaign is to tell the audience near death experiences can happen anytime and anywhere, experiences which can make us really think and act on securing the future of our loved ones. The ad is meant to urge the viewer to take insurance in order to avoid leaving their loved ones to fend for themselves.

        Jasneet Bachal, Senior Vice-President & Head, Marketing, Kotak Life Insurance, said that through the #LaterMayBeLate campaign, the company wants to create awareness among the viewers to not procrastinate anymore in protecting their loved ones. Though everyone wants to protect their family, people often procrastinate when it comes to purchasing life insurance cover, leaving the purchase for just another day. That life can be very uncertain and is something which these series of short films have tried to bring out. The campaign comes with the message that sometimes, later may be too late and we mustn’t wait for an emergency to act to protect our loved ones.

        3rd August 2017

      • SBI Life Insurance Planning To Offer Cover For Cancer Treatment

        India’s leading private life insurer, SBI Life Insurance, is looking to include cancer treatment as a part of its health insurance suite. Following the launch of a new term insurance product offering cancer treatment cover, the spokesperson for SBI Life Insurance said that the number of cancer patients is likely to go up significantly in the coming few years.

        The first cancer treatment specific insurance plan from SBI Life will be available for persons aged between 5 to 65 years. The minimum sum assured under the plan ranges between Rs.10,000 and Rs.50,000.

        With regards to international business, SBI has applied to the regulatory authorities in Bahrain to set up a branch in the country. The bank already enjoys a trusted presence in the country with two existing branches.

        3rd August 2017

      • Life Insurance Sector Expected To Witness 15-18% Growth in FY18

        The insurance sector in India is expected to record a 15% to 18% growth on an annual premium equivalent (APE) basis in the current fiscal year ending March 2018, said Mr. Karthik Srinivasan, Senior Vice-President at ICRA, a credit rating agency. In the previous fiscal, the insurance sector logged 19% growth in new business.

        Asked about the negative APE growth prediction for this fiscal, Mr. Srinivasan said that the 19% APE growth in the previous fiscal was quite unusual, given that the Ape growth in FY16 was only 11%. This year’s prediction is leaning towards the conservative side.

        Mr. Srinivasan also said that in spite of the widespread adoption of technology for various aspects of policy issuance and servicing, the life insurance sector has experienced an increase in the cost structure during the nine month period of last fiscal. This increase in expenses can be attributed partly to higher administration and partly to rise in employee related expenses, given that the industry is looking to scale up operations.

        2nd August 2017

      • HDFC & Standard Life Plan To Sell 15% Life Insurance Stake Via IPO

        HDFC (Housing Development Finance Corporation Ltd.), along with its UK-based joint venture partner, Standard Life Plc, have decided to sell a total of 15% stake in HDFC Standard Life Insurance Company Ltd via the IPO. The insurer’s board has approved the sale of almost 300 million shares via the IPO’s offer-for-sale. For the sale, parent company, HDFC plans to sell 191.24 million shares which translate to a 9.57% stake and Standard Life plans to sell 108.58 million shares which translate to about 5.43% stake.

        The IPO which HDFC Life has proposed is estimated to be valued approximately around Rs.7,000 crore ($1.1 billion) which is similar to the IPO planned by its rival SBI Life Insurance Co., which also picked merchant bankers. Last week, HDFC Life has filed its draft papers with the capital market regulator SEBI (Securities and Exchange Board of India).

        Prior to the talks of the IPO, HDFC Standard Life was planning a merger with Max Life, which would have resulted in the creation of India’s largest private-sector life insurer. The resulting company would have had annual premiums worth Rs.25,500 crore, easily crossing ICICI Prudential Life Insurance Co. Ltd., which became India’s first life insurance provider to go public.

        At present, HDFC holds 61.52% stake in the life insurance firm while Standard Life owns 35%. Other shareholders include Azim Premji’s family office PremjiInvest and company employees who hold about 3.5% of the stake.

        29th July 2017

      • 11,000 Women To Receive Life Insurance Cover On Occasion of Rakshabandhan

        On the occasion of Rakshabandhan, BJP MP from Aligarh. Mr. Satish Gautam has announced the gifting of life insurance covers to 11,000 women and girls in his constituency, this life insurance cover will be provided under the Prime Minister Suraksha Bima Yojana (PMSBY).

        Speaking about the announcement, Mr. Gautam was of the view that this life insurance cover would make for a very useful gift as it would provide security to the future of these women and girls.

        the yearly premium for the insurance scheme, which amount to approximately Rs.1.32 lakh, will be paid by the MP himself. The insurance policy will provide financial cover of up to Rs.2 lakh under PMSBY to the girls and their families against death or disability due to accidents.

        The PMSBY scheme provides a cover of Rs.2 lakh at an yearly premium of Rs.12. the cover is provided against the total and irrecoverable loss of both eyes, or loss of use of both hands or feet, or loss of sight of one eye and loss of use of hand or foot. If there is complete and permanent loss of sight of one eye or loss of use of one hand or foot, the policy will provide a sum assured of Rs.1 lakh. To avail this scheme, the applicant must be between the ages of 16 to 70 years and must have a savings bank account.

        27th July 2017

      • Subrata Roy Seeks More Time To Resolve Sahara Life Crisis

        Chairman of Sahara Group, Subrata Roy recently met the chairman of IRDAI (Insurance Regulatory and Development Authority) to seek more time to detangle the crisis at Sahara Life Insurance. Meanwhile, ICICI Prudential, India’s biggest private insurance player handed in a valuation report to IRDAI to acquire Sahara Life. Following governance related issues at Sahara Life, IRDAI recently appointed an administrator to run the crippled company. In the near future, all assets and liabilities of Sahara Life policyholders will be transferred to ICICI Prudential Life.

        However, Mr. Roy’s request for additional time has been turned down as IRDAI has has already appointed an administrator to run the Sahara Life. Mr. R.K Sharma, General Manager, IRDAI, was appointed as an administrator for Sahara Life on June 23.

        27th July 2017

      • Federal Bank Says No to Exit from JV

        Recent reports of IDBI Federal Life Insurance looking for a possible 100% stake sale has been dismissed by Federal Bank. Federal Bank, one of the key stakeholders in the insurance JV, has said that it is not looking for an exit. IDBI Federal Life Insurance is a joint venture between the Kerala-based Federal Bank, IDBI Bank and European insurer Ageas.

        Current valuations of the life insurance company show that the insurance provider was able to break-even in just five years since its inception, in 2008. As per the existing agreement between the JV partners, IDBI Bank and Federal Bank (the Indian partners) can dilute their holding in the JV, if Ageas wants to increase its stake.

        27th July 2017

      • HDFC Life Merger Called Off, Focus To Remain On HDFC Life IPO

        Last Wednesday, Mr. Deepak Parekh, Chairman of HDFC announced that the merger proposed between HDFC Life Insurance and Max Life is now off the table. HDFC will, going forward, be focusing on their launching the life insurance company to the public with their IPO (initial public offering). Mr. Parekh said that the IPO is expected to be launched by late November or by the first week of December. The HDFC Life and Max Life merger was announced in August 2016 with Max Life first merging with Max Financial Services being its parent company.

        Speaking about the update regarding the merger, Mr. Parekh mentioned about Section 35 of the Insurance Act, which clearly mentions that an insurance company can only be merged with another insurer. Adding further he said that IRDAI (insurance regulatory and development authority of India) referred the matter to the government and the Solicitor General, who collectively ruled that Max Life would no longer be considered an insurance company after merging with Max Financial Services. Since it is against Section 35 of the Insurance Act for a non-insurance company to merge with an insurance company, the merger proposal was rejected.

        Regarding its IPO, Mr. Parekh said that HDFC Life has already filed the necessary papers with the IRDAI. HDFC Life is yet to file an actuarial report to get the green signal from IRDAI to file for the IPO with SEBI. The approval for the same is likely to come through by mid-August, after which the insurer will file the draft herring prospects with SEBI.

        27th July 2017

      • Insurance Compulsory For All ECR Passport Holders From Aug 1

        From 1 Aug 2017, the Ministry of External Affairs (MEA) is set to implement a new move which will benefit a large majority of the blue collar workers seeking employment to 18 countries, especially the GCC (Gulf Cooperation Council0 countries. As per the proposed rule, all ECR category passport holders travelling to the specified 18 countries must be covered under a life insurance policy.

        Over 6 lakh Indians holding ECR category passports travel overseas every year to be employed as skilled, semi-skilled and unskilled workers in various sectors like construction, industrial, sanitation, agricultural and domestic services.

        As per the new regulations, every Indian citizen who applies for emigration clearance from the concerned Protector of Emigrants (PoE) must compulsorily get insured against accidental death or permanent disability leading to loss of employment while employed overseas for a minimum duration of 2-3 years for a minimum sum of Rs.10 lakh. The insurance cover shall remain valid regardless of change in employment or the worker’s location during the policy tenure. The cover shall also remain valid when the life assured visits India or any other third country.

        The move to make insurance a compulsory requirement is likely to be a blessing for states like Karnataka, Kerala, Andhra Pradesh, Tamil Nadu and Telangana which see a large number of individuals travelling overseas to work as blue collar workers. From Karnataka alone, over 1.5 lakh people are employed in Gulf countries. For them, the State Govt. is planning to introduce insurance coverage of up to Rs.2 lakh at the cost of Rs.99 per person.

        27th July 2017

      • Insurance Companies To Provide Coverage Details Of Farmers in Telangana

        Ahead of the kharif crop season, officials of the Telangana Agriculture Department recently met with insurance companies for a review of the insurance coverage status of the farmers. Chairing the meeting was Mr. C. Partha Sarathi, Secretary at the Agriculture Department while the attendees included Mr. Jagan Mohan, Agriculture Commissioner, representatives of Agriculture Insurance Company, Chola MS, National Insurance Company, United India Insurance Company, and other officials from the Agriculture Department. following the meet, insurance companies have been requested to provide the details of all farmers who are covered (including loanees and non-loanees), area insured & the premium collected for Kharif 2017.

        25th July 2017

      • SBI Life Insurance Launches IPO

        SBI Life Insurance Company Ltd. Recently announced its entry in the IPO domain. The life insurer has filed for an IPO and the initial public offering it has made is for up to 12 crore equity shares. The shares are being offered via a red herring prospectus and are likely to be listed on the Bombay Stock Exchange (BSE) and the National stock Exchange (NSE). The newly offered IPO is set to consist of offer for sale by State Bank of India of up to 8 crore shares and by BNP Paribas Cardif S.A. of up to 4 crore shares. Currently, the book running lead managers for the IPO include JM Financial, Axis Capital, BNP Paribas, Citi Group and Deutsche Equities India.

        17th July 2017

      • Insurance Companies To Provide Coverage Details Of Farmers in Telangana

        Ahead of the kharif crop season, officials of the Telangana Agriculture Department recently met with insurance companies for a review of the insurance coverage status of the farmers. Chairing the meeting was Mr. C. Partha Sarathi, Secretary at the Agriculture Department while the attendees included Mr. Jagan Mohan, Agriculture Commissioner, representatives of Agriculture Insurance Company, Chola MS, National Insurance Company, United India Insurance Company, and other officials from the Agriculture Department. following the meet, insurance companies have been requested to provide the details of all farmers who are covered (including loanees and non-loanees), area insured & the premium collected for Kharif 2017.

        25th July 2017

      • HDFC Life may probably cancel merger with Max Life and concentrate on IPO

        HDFC Life Insurance may cancel the plan to take over the life insurance business of Max Group. This is because both the organisations have not been able to make a proper decision about the alternative structure for functioning as one of the ideas for the new structure was declined by the insurance regulator.

        Apart from this, the shareholders of HDFC Life are also working with dedication to achieve the goal of listing plans. This can cause a delay in the merger.

        The Insurance Regulatory and Development Authority (IRDA) had declined the merger idea of 3 companies including Max Financial Services Ltd, HDFC Life, and Max Life Insurance in the month of May.

        14th July 2017

      • IDBI Federal Life Insurance Holds Talks Over A Possible 100% Stake Sale

        IDBI Federal Life Insurance, a joint venture between IDBI Bank, Federal Bank and Ageas, is in the process of hiring banks to manage a possible 100% stake sale. This move would mean an exit for all three of the current stakeholders. It is reported that the company is seeking over Rs.3,000 crore, with the inclusion of a premium control.

        Since the company is Bancassurance partners with IDBI Bank and Federal Bank, the sale is expected to get substantial attention and buyer interest. The significant captive customer base makes IDBI Federal Life Insurance an attractive option for investors. Citibank and Credit Suisse are reported to have already submitted their proposals. IDBI Federal Life Insurance is the most recent company in the insurance sector to look for an exit opportunity.

        26th July 2017

      • ICICI Prudential Life Records Rise in Q1 Net Profits to Rs.406 Crore

        India’s leading private sector life insurance provider,ICICI Prudential Life Insurance has recently announced its profits after tax of Rs.406 crore for the first quarter ended of the current fiscal year, which ended in June 2017. The recent profits are a modest increase from the company’s last year’s recorded profits for the corresponding quarter, which touched Rs.405 crore.

        In terms of annualised premium equivalent (APE), ICICI Prudential Life registered a growth of 68.4% in the first quarter of the current fiscal, as compared to the same quarter for the last fiscal. On APE basis, ICICI gained new premium Rs.1,704 crore in the first quarter of FY18 as compared to Rs.,012 crore collected towards new premiums for the corresponding period last year. There was also a 70.4% growth in the savings business and a 32.8% growth in the protection business for the same period.

        Mr. Sandeep Batra, Executive Director, ICICI Prudential Life Insurance, mentioned about the improvement in the 13th month persistency rate which increased to 86.7% in the first quarter as opposed to 85.7% registered last year. The insurer also registered a drop of 7.3% in costs in the current quarter, as compared to those recorded a year back. ICICI also recorded a 16.4% increase in their assets under management (AUM) which stood at Rs.1.26 lakh crore.

        25th July 2017

      • Life Insurance Penetration Can Benefit Greatly From Data Insights

        When it comes to life insurance, a customer retention duration ranging between 7 to 10 years is crucial in terms of profits. In insurance, customer retention is measured with the help of persistency rate which is basically the number of policies which customers renew every year over a period of time. A large percentage of customers do not renew their life insurance policies, as is evident by statistics released by IRDAI (Insurance Regulatory and Development Authority of India). The persistency rate in India stands at 61% for the year 2015-16, while internationally, the ratio is touching 90% in the 13th month itself.

        The persistency rate for life insurance is very low in India, something which is a matter of grave concern for life insurance companies. Persistency rate for life insurance is affected by 3 factors which are customers, agents and life insurers.

        The biggest cause for the low persistency rate in life insurance is because people continue to consider life insurance as a tax saving instrument instead of a protection instrument. Life insurance sales see a significant spike in the last quarter of every financial year (Dec-March) when individuals are in a hurry to invest in order to bring down their tax liabilities. However, in this transaction, all parties involved suffer losses.

        When it comes to the low life insurance persistency, there are several aspects which require attention. These include customer relationship management, product design, and selling practices adopted by agents. Also, data analytics can come to the rescue of the insurance segment plagued with low persistency rates. To enhance customer’s experience, the sales process needs to be digitized so that not only agents but also sales channels can be better monitored.

        24th July 2017

      • Reliance Nippon Life Insurance records 8% Growth in June Premium

        Reliance Nippon Life Insurance Company recently announced a rise in its total premium by 8%. The insurer’s premium for the period of April June went up to Rs.700 crore. The company’s assets under management were recorded at Rs.17, 400 crore on June 30, 2017 and have increased by a modest 10% as compared to the corresponding period from last year. Reliance Nippon was formed as a joint venture between India’s Reliance Capital and Nippon Life, Japan. Reliance enjoys a 51% stake in the venture while Nippon Life owns the remaining 49% of the stake.

        21st July 2017

      • Reliance Nippon Life Insurance records 8% Growth in June Premium

        Reliance Nippon Life Insurance Company recently announced a rise in its total premium by 8%. The insurer’s premium for the period of April June went up to Rs.700 crore. The company’s assets under management were recorded at Rs.17, 400 crore on June 30, 2017 and have increased by a modest 10% as compared to the corresponding period from last year. Reliance Nippon was formed as a joint venture between India’s Reliance Capital and Nippon Life, Japan. Reliance enjoys a 51% stake in the venture while Nippon Life owns the remaining 49% of the stake.

        21st July 2017

      • Insuring Loan With Credit Insurance

        As we move towards the future, temporary cash in the form of credit cards, loans, etc., is making it increasingly easy for us to forget exercising discipline or responsibility when it comes to finances. Financial risk management is blissfully forgotten until one comes face to face with a difficult financial situation.

        When it comes to investments, there are many mistakes which many of us are guilty of committing often. Some of these include not taking a credit life insurance, which is basically insurance against a loan. Credit life insurance protects your loved ones from the burden of repaying a loan, in case you pass away.

        The other mistake often committed is not securing the financial future of your family. Your responsibility towards your family does not stop at providing for them. It is also your duty to look after their needs if you were to not be around in the future. For this, a child or term insurance policy can provide much needed financial stability in case of uncertainty.

        The third oft made mistake is not planning for one’s retirement. Retirement is an inevitable stage of which comes in every employed individual’s life. For most people, retirement sets in around the age of 60 years and above. Retirement can often be an anxiety ridden time for those people who have not planned properly for it. It is a time when the individual has no source of regular income. To void this feeling, it is advised that one make a regular habit to save during their income earning years. In addition to that, several investment instruments like unit linked plans, dual benefit insurance policies, retirement policies, etc. have been have been designed exactly for this purpose.

        21st July 2017

      • HDFC Life Gets IRDAI’s Approval To File IPO Papers

        HDFC Life, the life insurance arm of HDFC, recently announced filing an draft with Insurance Regulatory and Development Authority (IRDAI) for an initial public offering. The insurer is also likely to receive the in-principle approval for its IPO from IRDAI in a short time.

        HDFC Life is comprised of two shareholders, HDFC & Standard Life Plc, both of which are expected to dilute stake through the IPO in the ratio of 3:1. In HDFC Life Insurance, HDFC owns 61.65% stake while Standard Life holds 35%. As for the merger with Max Life, HDFC Life Insurance did not get the approval not just from the shareholders but also from IRDAI, following which, it took the decision of launching their IPO for its life insurance business. The draft of the HDFC Life’s IPO related documents contains no mention of the Max Life merger in any capacity.

        20th July 2017

      • Bajaj Finserv Registers 22% Rise in Net Profit

        Bajaj Finserv recently announced an increase of 22% in their consolidated net profits for the first quarter of the ongoing financial year. The company’s profits stood at Rs.655 crore and have been driven by the growth in the NBFC sector and general insurance businesses. For the corresponding quarter last year, Bajaj Finserv recorded a profit of Rs.538 crore. The company’s asset under management (AUM) also recorded a growth of 39% and touched Rs.68,883 crore as on 30 June 2017.

        On the other hand, the company’s NBFC arm, Bajaj Finance, recorded an increase of 42% in the net profit which touched Rs.602 crore. The general insurance arm also witnesses a sharp hike in profits by 62% in the first quarter, reaching figures of Rs.213 crore. The company’s underwriting profit for the first quarter of the fiscal year stood at Rs.12 crore as compared to a loss of Rs.28 that was recorded in underwriting for the corresponding quarter last year. Bajaj Finserv recorded a 29% increase in their gross written premium which went up to Rs.1,973 crore in the first quarter. However, the life insurance segment of the company witnessed a drop in profits from Rs.244 crore in the first quarter of 2016-2017 to Rs.196 crore in the first quarter of the current fiscal. Renewal premium also went up by 11%, touching Rs.471 as compared to Rs.424 crore recorded for the previous year. Bajaj Finserv’s new business premium recorded an 18% growth and rose to Rs.683 crore as compared to Rs.580 crore recorded in the previous year.

        19th July 2017

      • Claim ratio of government schemes go up to 170% in FY-17

        The claims-to-premium ratio for the government term life insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), reached 121% in 2016-17. For the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the ratio went up to 170% in 2016-17.

        Both these schemes were released in May 2015 in order to offer reliable social security protection at an economical prices. For both the schemes, the premiums have to be paid by the end of May on a yearly basis.

        The high-claim ratios of these 2 schemes have resulted in a sense of pressure among other public as well as private insurers.

        17th July 2017

      • Income of life insurance companies on new business up by 6%

        The premium income of life insurance companies on new business rose by 6% to stand at Rs.33,156 crore in the first quarter of the current financial year. These figures are in comparison to the statistics last year.

        The first year premium on new policies in the private sector rose 12% to Rs.9.872 crore, as per data from the Insurance Regulatory and Development Authority.

        Life Insurance Corporation witnessed a growth in new business income by 3% to stand at Rs.23,284 crore.

        Other insurers that observed marked growth in new business premium are ICICI Prudential with 57% growth, PNB Metlife with growth of 22%, HDFC Life with 15% growth, and Max Life Insurance with 16% rise in new business premium.

        SBI Life observed 3% decline in new business as well.

        14th July 2017

      • HDFC Life and Max are planning to build a new merger

        HDFC Life Insurance Co. Ltd and Max Life Insurance Co. Ltd have postponed the deadline for discussing the mergers until the 31st of this month. Both the private insurers are planning to have a new merger structure after the insurance regulator rejected the actual 3-step union.

        The board of HDFC Life will be meeting soon in order to evaluate this new structure. Under this new structure, HDFC Life and Max Life will collaborate and merge to create a new company known as HDFC Plus. This new company will then have a new subsidiary which will soon have the insurance business. This indicates that HDFC Plus will function as a holding company for the insurance business.

        13th July 2017

      • SBI Life Insurance all set to go public

        Shares of the State Bank of India (SBI) gained more than 1% on Tuesday after the directors' board approved the dilution of SBI's stakes in its life insurance wing. Once SBI Life Insurance is listed on exchanges it would be the second insurer in India to go public.

        The IRDAI had approved SBI Life's IPO application of Rs.7,000 crore last week. This is the largest share sale by a life insurance company in the country. The company is currently awaiting the final approval from Sebi.

        In spite of pending approvals, the board has made a decision to go ahead with the sale of equity shares of up to Rs.8 crore. The price will be fixed at a later date after consultation with parent SBI and BNP Paribas Cardiff, the company's foreign partner.

        SBI Life has currently engaged Citi, Axis Capital, BNP Paribas, and Kotak Investment Bank to manage the initial sale of shares.

        12th July 2017

      • SBI Life Receives Final Approval from SBI Central Board for IPO

        SBI Life Insurance will soon become the second insurer to go public after ICICI Prudential Life. SBI has approved the dilution of its stake in the life insurance company through a public offering and has now received a sectoral regulatory approval. The Insurance Regulatory and Development Authority of India (IRDAI) has recently approved a Rs.7,000 crore IPO application filed by SBI Life. SBI Life follows ICICI Prudential as the second largest private life insurer. SBI Life's net profit last year has shown a growth of 10.9% to Rs.954.65 crore from the previous year's Rs.861.03 crore in March this year.

        11th July 2017

      • Canara HSBC Oriental Bank of Commerce Life Insurance collaborates with Dhanlaxmi Bank to promote bancassurance

        Canara HSBC Oriental Bank of Commerce Life Insurance, a leading private life insurer, has entered into an agreement with Dhanlaxmi Bank, a bank based in Kerala in order to promote life insurance products.

        The bank will be a corporate agent for the insurance company for a period of 3 years. However, both the bank and the insurance company plan to have a healthy relationship for a long period.

        The plan to sell bancassurance products is being implemented in order to help both customers as well as the banks. It is a cost-efficient plan and has also proved to increase the sale of life insurance policies.

        11th July 2017

      • Penetration of insurance in India increases to 3.49%

        A report by reinsurer Swiss Re indicated that the insurance penetration in India has seen a growth from 3.40% to 3.49% in the financial year, 2016-17. Insurance penetration is measured as a percentage of premiums to gross domestic product, i.e., GDP.

        General insurance penetration stands at 0.77%, while life insurance penetration is at 2.72%. Insurance density in India is at USD 59.7 for FY17, much lesser than the average for Asia. The global average for insurance density is USD 638.3.

        The report said that the initiatives undertaken by the Indian and Chinese governments to develop specific lines will support liability, credit, and agricultural insurance schemes.

        The report also mentioned that life premiums saw a hike of 8%, owing to the demand for immediate annuity plans post demonetisation. Further, it states that premiums are likely to increase in the coming years, owing to bancassurance systems, digital distribution avenues, and the promotion of protection schemes.

        7th July 2017

      • ICICI Prudential looking to take over Sahara Life

        Taking a swipe at the right time, ICICI Prudential is looking at a potential buy out of Sahara Life. In a statement confirming the move, ICICI Prudential said that they would like to confirm that we have expressed our interest to evaluate taking over policyholders liabilities and assets of Sahara Life. We are evaluating the way forward on the same. The last reported policyholders liabilities of Sahara Life is about 900 crore which is less than 1% of the company’s balance sheet size.

        06th July 2017

      • New crop insurance scheme sees overall positive response

        The campaign initiated by the Agriculture Department of the Kerala state government to increase the participation of farmers in the revised crop insurance scheme has seen success. The department has revealed that block panchayat level reports from Kozhikode district indicate that the revised scheme has been well-received. The scheme has not seen high popularity in urban areas of the distrcit, owing to lower population of farmers.

        Until recently, 10% farmers had only enrolled into the crop insurance scheme in Kozhikode district. Promotional events pertaining to the revised scheme has gained hundreds of fresh enrolments.

        The Deputy Director of Agriculture said that 50 individuals from each of the 81 Krishi Bhavans in Kozhikode had enrolled into the scheme during the drive. The revised insurance cover is provided for 25 crops, and will financially assist farmers in case of unprecedented events or loss.

        The government expects that the reloaded scheme will improve the participation of farmers in the future. Farmer’s organisations such as We Farm and Indian Farmer’s Movement (Infarm) have applauded the revised crop insurance scheme and its promotion. These bodies state that the increase in insurance coverage would greatly assist the ailing farming community.

        5th July 2017

      • Increase in life insurance premiums post GST

        The implementation of the Goods and Services Tax (GST) has resulted in an increase in life insurance premiums from 1 July 2017. The increase is basically between 30 basis points and 3%, based on the type of policy.

        Life Insurance Corporation of India stated that the rate of service tax corresponding to health and term insurance products and unit-linked plans will see a hike from the current 15% to 18%. The new business premium for pension and life products will go up from 3.75% to 4.50%. The premium for the first year of annuity products will also see a similar spike.

        The service charges of renewal premium will go up from 1.87% to 2.25%. The charges for single premium annuity products will rise from 1.50% to 1.80%.

        LIC also mentioned that GST will be applicable on the interest charged when premium receipt is delayed. The rate is based on the type of premium. GST will also be applicable on alteration fee, duplicate policy preparation, quotation fee, etc.

        Life insurance products such as Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY), and certain micro-insurance products approved by IRDA with maximum cover of Rs.50,000 are exempt from tax. Varishtha Pension Bima Yojana and Pradhan Mantri Jeevan Bima Yojana are also exempt from GST changes.

        4th July 2017

      • Under GST, all insurance plans will not attract 18% tax

        The Goods and Services Tax (GST) regime that was implemented on 1 July 2017 has increased the tax rate on certain insurance products from 15% to 18%. Contrary to popular belief, all products will not see a hike of 3% in tax.

        If you are buying a new insurance plan, i.e., motor, term, health, or unit-linked insurance product, the 18% rate of taxation will be applicable. Earlier, the rate of service tax on these products were 14%, and along with cess, the final tax rate would come up to 15%. Now, there is a flat 3% increase in the rate of tax.

        If you are buying an endowment plan or a single premium policy, the tax rate is 4.5%. For renewal premiums, the tax charged is 2.25%. For single premium annuity plans, the rate of taxation is 1.8%.

        Effectively, there is a differential rate of taxation in insurance, based on the premium paying term and the type of product. It is also understood that micro-insurance policies with maximum sum assured of Rs.50,000 and government-sponsored insurance products will be exempted from tax.

        4th July 2017

      • BSLI to double its protection business in FY18

        According to Pankaj Razdan, the MD and CEO of Birla Sun Life Insurance, the private insurance company plans to double its protection business from 4% in FY17 to 8% in FY18. BSLI launched its CritiShield Plan which will cover both renal as well as cardiac illnesses. The policyholder has the option to choose the illness condition level and also increase coverage. For heart attack, the cover can be between Rs.2.8 lakhs to Rs.10 lakhs while for kidney transplant, it can be between Rs.4.2 lakhs to Rs.6.9 lakhs. The CritiShield Plan is 70% traditional and 30% ULIP. BSLI offers 3 health insurance plans with 8 to 9 riders. The company's largest source of business is through agency channel. In FY17, the company saw 60% agent productivity with a 10% growth.

        13 June 2017

      • Another Product Regulation Revision Planned by IRDAI

        The insurance sector seems set for another product regulation overhaul as the IRDAI has made clear its plans to review products and structures of products every three to five years. The main reason behind the move is cited as the need to adapt to constantly changing market requirements. An insurance advisory committee has been constituted by the IRDAI and it consists of members representing the general insurance sector, the life insurance sector and intermediaries. Experts with knowledge on the matter have revealed that the idea behind the move was to ensure that the changes proposed will take into consideration the market segment and their particular needs.

        5 June 2017

      • Insurance premiums and bank charges to Go Up with GST

        The GST or Goods and Service Tax that is going to come into effect from July 1, 2017 is set to have an impact on a large number of goods and service being consumed in the country. From investments to bank charges, the GST is likely to affect almost everyone’s personal finances. Currently sectors like banking, insurance and investments like real estate, mutual funds, etc., carry a tax rate of 15% which is likely to go up 3%, making the overall tax go up to 18%.

        Under general insurance, car, health and other non-life types of insurance will witness a hike of 3% in tax with the implementation of GST. This in turn is likely to make insurance premiums more expensive for the general folk. As for banks, the transaction fee i.e. bank charges, are also likely to go up as well from and will now come under the 18% tax bracket under the new GST regime.

        1 June 2017

      • Tax hike under GST on financial services offered by insurance companies and banks

        Insurance GST is said to be the biggest tax reform in India since 1947. GST implementation is expected to raise the GDP by 2%. Ahead of the GST roll out on July 1st, all sectors are anticipating a rise in tax. It’s no different for financial services offered by banks and insurance companies. Service charges on insurance premiums, EMIs, and transactions using ATM, debit cards, and credit cards are expected to increase.

        Currently, customers pay 15% service tax but under GST, the service tax for banking services will be 18%. State Bank of India charges Rs.50 plus 15% service tax for transactions made beyond the 4 free transaction per month. This service charge will now go up by 3% under GST. Banks like Standard Chartered Bank, HDFC Bank, and SBI have started sending SMS notifications to customers about the increase in tax. ICICI Prudential Life Insurance has sent email notifications about 18% GST on premiums payable for term plans and fund management charges on ULIPs. GST will be launched by the Indian President, Pranab Mukherjee on July 1st, 2017.

        30th June 2017

      • HDFC Life, Max Bupa strategize for merge

        Following the IRDAI decline of HDFC Life and Max Bupa’s merge, the two reputed insurance companies are looking to remodel their strategy to get the approval. According to a spokesperson, the new structure is something that satisfies Section 35 of the insurance norms, is in compliance with Sebi regulations and in accordance with the existing taxation norms. We can’t share anything more than this at this stage. Once a decision on the merger (under the new structure) is taken, we will inform the exchanges and will be in a better position to explain the new route planned for the merger.

        29th June 2017

      • PM advocates Yoga and compares it to free life insurance

        While celebrating International Yoga Day in Lucknow, PM Narendra Modi mentioned that yoga plays a significant role in creating a sense of bonding among people. He also pointed out that the global appeal of the practice is what made UN accept the proposal to declare 21st June as International Yoga Day.

        He also stated that the observation of this day has popularised yoga around the world. He called out for standardisation of the techniques of yoga and encouraged youngsters to adopt it for good health. He said that yoga is responsible for enlightening the body and soul.

        Modi also compared the age-old practice to free life insurance which everyone should avail.

        23rd June 2017

      • Life Insurance, GST Councils to meet on Friday

        The Life Insurance Council will be meeting with the GST Council on Friday to have a discussion regarding the rates for the Goods and Services Tax (GST). The life insurance industry is pursuing a zero rate for life insurance or at least wants to come under the lowest tax slab. A rate of 18% was imposed on insurance rather than the expected 5%. Several representations were made and sent to the GST Council to request for a change in rates but the 18% which was previously decided on was levied. Insurers were also looking for an increase in the deadline for the implementation of the GST but this is unlikely to happen.

        Currently, a 15% rate of interest is applicable which includes taxes like service tax and a few other cess. An increase of 3% would directly impact the customer as insurance companies have decided to let the customer bear the extra costs.

        22nd June 2017

      • SBI Eyeing General Insurance IPO in Coming Fiscal

        India’s largest banking institution, State Bank of India, recently announced that it is planning to make their general insurance business public in the coming fiscal. The insurer reported profits in the last fiscal of 2016-2017, and has decided to wait out this ongoing fiscal to launch their IPO (initial public offering), said Mr. Dinesh Kumar Khara, Managing Director (associates and subsidiaries) at SBI. He also added that while SBI Life Insurance may launch the IPO, SBI and Cardif (SBI’s joint venture partner) will jointly offload 12% stake in the coming few months. Here, SBI has proposed to sell 8% while Cardif will sell 4%.

        In another announcement, Mr. Khara said that SBI General Insurance achieved a break-even status in 2016-17, which is the insurer’s 6th full year of operations. The insurer registered profits of Rs.153 crore opposed to the last year when they suffered losses of Rs.120 crore. The gross written premium went up by 27% and stood at Rs.2,607 crore in 2016-17 as compared to Rs.2,041 crore in 2015-2016. Mr. Khara also mentioned that SBI Life Insurance plans to soon file the Draft Red Herring Prospectus (DHRP) as well.

        SBI General Insurance was formed following a joint venture between SBI and Insurance Australia Group where SBI holds 74% stake and Insurance Australia Group holds the remaining 26%.

        21st June 2017

      • Private Life Insurers experience exponential growth in May

        Private insurers in the country have experienced an average increase in sales of 38%. Most believe the premium sales are a result of the customers willing to use insurance products as a tax savings tool. According to a source, Most large private players reported 20-30% growth in APE, high growth at ICICI Prudential Life (up 100% year-on-year) lifted private sector individual APE growth to 46%, excluding ICICI Prudential Life, the rest of the private sector reported 30% individual APE growth.

        19th June 2017

      • Group and Individual Single Premiums for May 2017 Fall for Private Insurers

        A decline in premiums was reported by private life insurance companies in both group as well as individual single premium categories on a month-on-month basis. Although the fall in May 2017 was 12.8% and 26.58% respectively for individual and group premium segments, the fall between last May and this May was reported at 10% and 24.43% respectively for individual and group single premium segments as revealed by the business figures released by the Insurance Regulatory and Development Authority of India.

        15th June 2017

      • IRDAI takes over the reins of Sahara India Life Insurance

        Insurance regulator, IRDAI stated that it will be taking over the management of Sahara India Life Insurance, going forward. The reason for the same was attributed to the company “acting in a prejudicial manner” to the interest of subscribers.

        IRDAI has appointed one of its general managers, R K Sharma, to administer the affairs of the insurance company. The insurance regulator mentioned that the administrator will be conducting the management of the business as per the provisions of the Insurance Act, 1938. IRDAI has asked the management and staff of the company to extend maximum support to the administrator in managing the affairs of the business.

        Sahara India Life Insurance had sold 665 policies during the April-May period this financial year, and this amounted to Rs.1.53 crore in revenue. The regulator mentioned that all policy servicing activities will be done according to the existing terms and conditions even after the change in management.

        13th June 2017

      • IndiaFirst Life Settles Claims Worth Rs.161 Under PMJJBY Scheme

        Leading private sector life insurer, IndiaFirst Life Insurance recently announced that it has settled claims up to the amount of Rs.161 crore under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme, providing support to nearly 8,000 families. The current policy period for the PMJJBY which began earlier this month has already recorded enrolment of nearly 2 million people. PMJJBY is a financial inclusion scheme which was launched in 2015 and is being promoted by the government. 2017 marks the three years enrolment that has been carried out by IndiaFirst Life Insurance for the PMJJBY scheme which provides individuals life cover of Rs.2 lakh on the annual payment of Rs.330.

        9th June 2017

      • BSLI aims for 15% growth in NBP in FY18 and introduces CritiShield

        Birla Sun Life Insurance (BSLI) said that it is anticipating a growth of 15% in new business premium (NBP) the financial year 2017-18. This growth will be equal to the growth in the insurance industry.

        The insurance company is also aiming at enhancing its digital platform. It also intends to raise its business share in the digital section to 5% by 2018.

        The company is planning to introduce 3 new products in the traditional insurance category. It will also be launching a new plan called CritiShield Plan. It is a comprehensive traditional health insurance plan which is non-participating in nature. This plan is dedicated to people who belong to the age group of 35 to 40 years.

        7th June 2017

      • Aviva Life Unveils New Online Term Plan Called ‘i-Life Total’

        India’s leading private insurance company, Aviva Life Insurance, recently announced the launch of a brand new online term plan known as the ‘i-Life Total’. This is a non-linked, non-participating life insurance term plan which comes with 4 options which are Protect – life cover with in-built terminal illness benefit, Protect Plus – life cover which doubles in case of accidental death, Protect Assured – 120% returns of all premiums paid until maturity and Protect Income – provides regular pay outs to your family if you are not around anymore.  

        5th June 2017

      • Life Insurers to seek better rates for GST regime

        The life insurance industry is set to meet with the Government to try to obtain better rates than what were earlier offered for the Goods and Services Tax (GST) regime. A formal representation is expected to be sent through the Life Insurance Council. Insurance agencies would be placed in the 18% tax bracket which is a 3% increase from the current 15% bracket. According to V. Manickam, Secretary General of Life Insurance Council, an insurance company under the new GST structure will have to fill out 1,800 forms once under the new bracket. This would eat into a lot of productive time that could have been spent on other important issues. The Insurance Regulatory and Development Authority of India (IRDAI) will soon be meeting with the Chief Executive Officers of various life insurance companies to discuss the issue of a higher service tax.

        2nd June 2017

      • News About Life Insurance

        HDFC Life revealed that it has now partnered with Catholic Syrian Bank in a bancassurance tie-up in an effort to distribute its life insurance products to the customers of the private lender. Through the partnership with Catholic Syrian Bank, HDFC Life is expected to provide some of its leading life insurance, pension plans and health insurance products to the 1.5 million customers across all its branches, who have been loyal to Catholic Syrian Bank.

        Amitabh Chaudhry, the CEO and Managing Director of HDFC Life said, “We are proud to announce our partnership with Catholic Syrian Bank, our first bank partnership in Kerala. In keeping with our endeavour to increase our reach and access customers across geographies, this partnership would enable us to offer our products to over 1.5 million customers of Catholic Syrian Bank across Kerala and other states.”

        16 May 2017

      • News About Life Insurance

        HDFC Life has partnered with Rubique to provide technology enabled solutions to individuals and SMEs. As per the terms of the agreement, HDFC will be able to offer its products through the digital platform of Rubique. This partnership will allow the company to increase its outreach to customers and strengthen its online activities. The company will be hosting its life insurance, health insurance, and automobile insurance in the digital marketplace, making it a one-stop solution. According to Rubique, the partnership aims to provide a unified and advanced customer experience in the insurance realm.

        12 May 2017

      • News About Life Insurance

        HDFC Life reported an 8% rise in their net profit at Rs 274 crore for the fourth quarter which ended on March 31, 2017. HDFC Standard Life Insurance Company (HDFC Life) is a non-listed joint venture subsidiary of Housing Development Finance Corporation (HDFC) Ltd. They are associated with the Britain's Standard Life. In a BSE filing, Housing Development Finance Corporation (HDFC) Ltd stated that the company witnessed strong growth in individual WRP of 26 percent in Q4 FY17 after witnessing slowdown in two previous quarter. They further stated that During January-March, its total premium grew by 18 percent.

        4 May 2017

      • Max Life-HDFC Standard Life set to merge directly

        To avoid the complications that could arise from a three-step merger, Max Life Insurance Co. Ltd. and HDFC Standard Life Co. Ltd. may just opt for a direct merger. The merger was announced by Max Life Insurance in the month of August last year. The insurers expect the deal to be finalized within 12-15 months. But, the companies have failed to sell and convince the concept to the Insurance Regulatory and Development Authority of India (IRDAI). Under the proposed plan, Max Life would first merge with Max Financial Services, its parent company. Then, Max Life would de-merge from Max Financial and then merge with HDFC Life. The deal has been held up due to the interpretation of the prevailing laws under Section 35 of the Insurance Act, 2015 under which only insurers can merge.

        An alternative structure for this merger would mean that its due date would be pushed back by another 12-15 months.

        29 May 2017

      • Aviva Heart Care wins Product of the Year 2017

        For product innovation in the insurance category, Aviva Heart Care was voted Product of the Year 2017. The winner of this award is determined through a consumer research held by Neilsens across India. This face-to-face research focuses on identifying innovation in the insurance field. Product of the Year, considered as an international standard of consumer recognition, operates in 37 countries. Aviva Heart Care is a joint coverage policy for couples. Anjali Malhotra, the Chief Customer Marketing and Digital Officer of Aviva Life Insurance said that Aviva Heart Care is a relevant and unique healthcare plan that has resonated with the customers.

        26th May 2017

      • Aviva Heart Care wins Product of the Year 2017

        For product innovation in the insurance category, Aviva Heart Care was voted Product of the Year 2017. The winner of this award is determined through a consumer research held by Neilsens across India. This face-to-face research focuses on identifying innovation in the insurance field. Product of the Year, considered as an international standard of consumer recognition, operates in 37 countries. Aviva Heart Care is a joint coverage policy for couples. Anjali Malhotra, the Chief Customer Marketing and Digital Officer of Aviva Life Insurance said that Aviva Heart Care is a relevant and unique healthcare plan that has resonated with the customers.

        26th May 2017

      • Karnataka Bank enters into MoU with LIC

        A memorandum of understanding (MoU) has been established between Life Insurance Corporation of India (LIC) and Karnataka Bank for the sale of insurance products. The bank has recognised that customer’s needs are changing every day and they are moving firmly in the direction of improving customer satisfaction. The bank will now be able to provide a plethora of choices when it comes to life insurance products through each and every one of the 769 branches of the bank. LIC and Karnataka Bank are two time-tested entities that have been providing top-class services and products to its large customer base. LIC is one of the largest insurance agencies in the world and has a death claim settlement ratio of 99.90%. Both companies are looking forward to the future as this partnership is set to bloom.

        24th May 2017

      • Insurance To Mostly Fall Under 12% Tax Bracket In GST, Say Experts

        Following reports collected from sources in the tax consulting space, who have been working closely on the GST reform, have revealed that the GST council is not likely to reduce the tax to 5%. Currently, insurance policies are levied with a 14% service tax. There is also additional cess such as the Swachh Bharat Cess and Krishi Kalyan Cess which brings the overall payable service tax to 15% for policies with regular premiums.

        However, rates for insurance policies will not be hiked to 18% as both the GST council and the government are of the opinion that insurance is a savings/protection product. Higher rates will only bring down its sales.

        An official involved in the process said that if the GST rate is reduced to 5%, it will result in a huge deficit in tax collection. The committee has nearly reached a consensus on fixing the rate at 12% for insurance products. There is, however, no clarity, whether or not the rate will be different based on products or would it be universally applicable for all insurance products.

        The GST is set to become effective from July 1, 201, after which there will not be any additional cess that will be applicable on any services. Therefore, if insurance products are charged a GST in the 12% bracket, policy takers will still be paying lesser money towards tax.

        22nd May 2017

      • Centre Expecting Over 98% Renewals For Low-Cost Insurance & Social Security Schemes

        The Central Govt. is hoping for more than 98% for its inexpensive social security and insurance schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY) during the current fiscal year. To achieve this, the government is already ready with a plan. Banks and insurers already began the renewal improvement drive in the first week of May by publicizing and spreading awareness among people about the need to maintain enough balance in their accounts to enable auto debit of insurance premiums on a timely basis.

        There are more than 12.5 crore policies which have been subscribed under these 2 schemes. Renewal premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is Rs.330 and Rs.12, respectively, which is debited during May 21-31.

        The PMJJBY comes with a life cover of ?2 lakh, valid for one year, renewable annually. It is available to all individuals between the ages of 18 to 50 years holding a savings bank account and covers death occurring due to any reason. The PMSBY scheme offers accidental death and disability cover worth up to Rs.2 lakh for partial/permanent disability for a duration of one year, renewable annually. Eligible applicants must fall within the age group of 18-70 years.

        18th May 2017

      • Axis Bank looks for an insurance tie-up

        In a bid to increase the reach of its insurance products to customers across the country and add more products to its portfolio, Axis Bank is on the lookout for another insurance partner. With the guidelines stating that a bank can have a maximum of three insurance partners, Axis Bank who already has a tie-ups with Max Life and LIC is scouting for a third insurance partner.

        17th May 2017

      • Exide Life Insurance registers 27% growth in net profit

        Exide Life Insurance has stated that the company has registered a growth of 27% in net profit which now stands at Rs.112 crore for FY16-17. The company registered a growth of 36% in the category of new business premium and a 18% growth in total premium. Kshitiji Jain, MD and CEO of Exide Life Insurance, stated that this exceptional rise in growth has been fuelled by the continued commitment shown towards its customers along with a world class array of products like protection, investment, and savings plans. The company is one of the biggest names in the insurance industry which serves over 15 lakhs customers located around the country and manages assets to the tune of Rs.11,000 crore.

        12th May 2017

      • HDFC Life to work on merger with Max Life

        Despite plans of the merger between HDFC Life and Max Life reaching the surface almost 9 months back, no regulatory has been passed. To speed the process, Keki Mistry, the CEO of HDFC Life has announced that they will go back to the rudimentary stages of the merger to make it a possibility. Based on a report, the CEO said that they will have to relook at the complete structure and see merger directly between HDFC Life and Max Life. The proposed structure was suggested because by doing so, HDFC Life gets listed by merging with Max Financial Services.

        10th May 2017

      • Cheaper premiums for PM insurance schemes

        The Government of India has promised to grant cheaper premiums for their insurance schemes like Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)for those who avail or renew such insurance products on or before June 1st. Those availing or renewing their insurances after the specified date (June 1) will have pay the premiums at the standard rate.

        10th May 2017

      • The New POS Life Insurance Product by Edelweiss Tokio Life Insurance

        Edelweiss Tokio Life Insurance on Friday launched its over-the-counter life insurance product in India. The product known as POS Saral Nivesh is a non-linked, non-participating, endowment plan which comes with the benefits of life protection and savings. You can opt for POS Saral Nivesh by a paying a minimum monthly premium of Rs.1,000 or an annual premium of Rs.5,000. The sum assured offered under the plan can range from Rs.50,000 to Rs.10 lakh. According to the company, POS Saral Nivesh is the first insurance product to be approved by IRDA after introducing the guidelines on Point of Sale Life Insurance Products.

        9th May 2017

      • DPLI Registers PAT growth of 21% at Rs. 61.4 Cr in 2016-17

        DHFL Pramerica Life Insurance (DPLI), one of India’s major insurer, recently announced a 21% growth in profit after tax (PAT). The corresponding profit figure stood at Rs 61.4 crore for the fiscal year 2016-17 as compared to the PAT figure of Rs 50.8 crore in FY16. The company’s Gross Written Premium (GWP) rose by 24%, stopping at Rs 1,142 crore in FY17 as compared to Rs.920 crore in last financial year. The insurer’s Collected New Business Premium (NBP) also increased by 20%, touching a figure of Rs 874 crore as compared to Rs. 727 crore in the last financial year. DPLI’s asset under management (AUM) increased by 31%, touching a figure of Rs 2,707 crore in 2016-17 as compared to the AUM for 2015-2016 which stood at Rs 2,072 crore.

        Commenting on the figures, Mr. Anoop Pabby, MD & CEO at DPLI said that DPLI had performed very well across all areas like quality, customer centricity, growth and profitability. He added that the results are no surprise given DPLI’s ‘commitment towards building a customer-centric culture, a sharply segmented approach to distribution, investments in digitization and technology and launch of innovative and relevant products.’

        5th May 2017

      • SBI Life Insurance Sees 31% Rise in Net Profit

        SBI Life has recorded a growth in its net profit by 31% in Q4 of FY 2016-17. It’s net profit stands at Rs.336 crores, a sharp rise from the same quarter’s profit last year of Rs.256 crores. SBI Life’s individual new business premium (APE) also climbed up by 40%, indicating a profit of Rs.2,213 crores in Q4 of FY 16-17. For the same quarter last year, SBI recorded Rs.1,586 crores. Being one of the most trusted insurance companies in India, SBI Life Insurance has been able to round up a huge customer base. The company became the first private life insurer to go beyond the Rs.10,000 crore mark in New Business Premium. MD and CEO of SBI LIfe, Mr. Arijit Basu, stated that the last quarter for FY 2016-17 was excellent in terms of business and quality.

        4th May 2017

      • Life Insurance companies witness growth in digital payments for premiums

        Following the demonetisation of high-value tenders by the Modi-led Government on Nov 8, 2016, Life Insurance companies across the country have experienced record premium sales through digital payments or non-cash payments. Swiftly aligning with the vision of the government - the digital or cashless drive - insurance companies have given customers the opportunity to make online payments for their premiums. According to a source, digital payments have risen from 55%-60% to 75%-85%. According to an insurance executive, the growth has been seen largely in urban areas but the convenience of digital payments for premiums is rapidly taking a grip over rural areas as well.

        3rd May 2017

      • Reliance General Insurance racks up Rs.4,007 crore in FY17

        Reliance General Insurance Company Ltd. has amassed a total gross premium of Rs.4,007 crore in the financial year of 2017. This figure dictates a growth of 40% for the company when compared to the numbers of previous years. The company recorded a growth of 32% last year by racking up Rs.130 crore as profit before tax. The Return on Equity (RoE) has seen an improvement, standing at 11% from the previous year’s 9%.

        Reliance General has insured over 3 million farmers who come under the Pradhan Mantri Fasal Bima Yojana. The company’s online channel recorded a growth of 55% and saw a growth of 66% in the number of policies that were sold during this period. With a market share of 7.3% in the private sector, the company now aims at strengthening its distribution network by forging partnerships with top-tier banks like Catholic Syrian Bank, Andhra Bank, IndusInd Bank, and Bank of India.

        28th April 2017

      • Edelweiss Tokio Life Insurance obtains approval for “POS-Saral Nivesh”

        A joint venture between Edelweiss Group and Japan based Tokio Marine Holdings has received an approval from the IRDAI for “POS-Saral Nivesh” and this will be sold to customers over the counter. Edelweiss Tokio is the first to receive an approval from the IRDAI (Insurance Regulatory & Development Authority of India) to sell a product like this through POS channels and this is a category that is being explored in India for the first time ever. This product is aimed at providing a hassle-free process and instant gratification to customers who are seeking the same. The purchase process is simple, quick, and easy and takes only a few minutes to be completed. MD and CEO of Edelweiss Tokio Life has stated that the company is excited on receiving the approval required from the IRDAI and will be keen to see how the product will develop.

        27th April 2017

      • MSRTC increase insurance cover to Rs.6.15 lakh

        In the MSRTC (Maharashtra State Road Transport Corporation) board meeting held on 20th April, it was decided to increase the life insurance cover to Rs.6.15 lakh, in case of sudden death of an employee. The previous cover was of Rs.3.65 lakh. Diwakar Raote, MSRTC Chairman and State Transport Minister announced that the hike may take effect from 24th May. Apart from this, MSRTC also decided to reduce the secondary salary slab from three years to one. Although this has been a welcome step for MSRTC employees, they have been demanding a salary hike since many years, which has not received any response from the transport utility.

        25th April 2017

      • Life Insurance Segment Registers 26% Rise in Group Single Premia Income in FY17

        Group single premia products which make up for nearly 60% of LIC’s business recently witnessed an increase, boosting the overall new premium income of the life insurance industry by 26% in FY17. The new figure stands at Rs 1.75 trillion, as opposed to Rs. 1.39 trillion recorded a year back.

        For the other 23 private players in the insurance segment, the boost in growth can be attributed to group single products, which contribute to nearly 30% of the company’s business. The industry’s income from group single premia rose by 23%, to Rs.88,559 crore, followed by individual non-single premia which rose to Rs.50,500 crore.

        24th April 2017

      • Kerala State Government to introduce insurance scheme for pensioners, govt employees

        The state government of Kerala will soon be introducing an insurance plan for its service pensioners and government employees. The scheme is expected to benefit about 4.5 lakh government employees and teachers and 5 lakh pensioners. The decision was taken by the cabinet based on the suggestions of the 10th Pay Commission.

        Once the scheme is implemented, pensioners and employees will be able to avail cashless treatment at network hospitals. The government will bear the hospitalisation costs of these insured members. The insurance would offer coverage for outpatient treatments and pre-existing diseases as well.

        The medical reimbursement plan that is followed currently will be in force till the new insurance scheme is implemented. The interest-free loan that is currently provided for treatment of government employees and teachers will also be made redundant on introduction of the new scheme.

        The employees will be expected to pay Rs.300 as monthly premium towards the plan. The medical allowance of Rs.300 that the government currently pays pensioners will be stopped once the insurance scheme is implemented.

        The introduction of the insurance plan will substantially reduce the medical expenses borne by the government. For the implementation of the plan, applications from IRDA-approved insurance companies will be invited soon. Public sector insurers may be given priority over the private players while bidding for the scheme.

        21st April 2017

      • Demonetisation proves positive for the life insurance sector

        While most businesses in the country came to a complete standstill following the demonetisation of high-valued tenders by the Modi-led government, the life insurance sector rose to a 9-year high. According to sources, the life insurance sector grew by 16% and private insurers grew by 26% in the total number of premiums availed, giving the overall life insurance a 21% boost. A member of Kotak was quoted as saying that he expects the current momentum in life insurance/capital market inflows to continue in FY 2018 as investors continue to shift to financial savings from physical savings.

        20th April 2017

      • New business premium income of life insurers went up by 26%

        Amid dropping deposit yields and increasing liquidity, new business premium income of life insurers climbed 26% in March 2017. The move was spearheaded by the industry’s growth with the help of individual single-premium policies. Life Insurance Corporation outperformed other private insurers by reporting a growth of 27%, compared to its rivals who recorded 24%. LIC’s growth was aided by an 84% growth in its single-premium revenue. According to the latest data from the Life Insurance Council, new business premium for the financial year 2017 was at Rs.1.75 lakh crore from the previous year’s Rs.1.35 lakh crore. While, private insurers recorded a rise in new business premium from the previous year’s Rs.40,983 to Rs.50,625 in FY17.

        19th April 2017

      • Gujarat High court pleas to the Reserve Bank of India to increase insurance on bank deposits

        On April 12, 2017, the Gujarat High court raised a plea with the Reserve Bank of India to hike the insurance on deposits for bank accounts. The current insurance for deposit accounts stands at Rs.1 lakh, and fearing its past of bankruptcy, the Gujarat High court has pleaded with the RBI to increase the insurance from Rs.1 lakh to Rs.10 lakh.

        13th April 2017

      • Non-life insurance up by 32% in the Financial Year of 2016-2017

        According to the IRDAI, the gross premium collection in the non-life insurance sector has risen by 32% since last financial year, amounting to Rs.1.27 lakh crore. As per the date compiled by the IRDAI, public sector firms showed a rise of 28.9% in gross premium in 2016-17 to Rs.67,689.68 crore as against Rs.52,520.80 crore a year earlier. In the case of private sectors, premium for 2016-17 rose by 41.12% to Rs.5,859.80 crore against Rs.4,152.31 crore.

        12th April 2017

      • LIC drops Shares in SBI

        Life Insurance Corporation of India sold off more shares it was holding in State Bank of India. The popular insurance company previously reduced its stake in SBI from Rs.75.87 crore to Rs.70.31 crore. At the end of the quarter January-March 2017, LIC’s share fell to 9.94%, while MFsat held 8.42% and FIIs held 9.48%. Analysts say that LIC was geared up for profits in SBI, however after the demonetisation scheme was introduced, demand dropped and the industry slowed down. Overall, LIC’s holdings in 23 banks has dropped by 30%. In December 2015, LIC held Rs.38,373 crore in these banks which has now been reduced to Rs.26,837 crore, the lowest scene in four years.

        11th April 2017

      • Insurers hike premiums in certain categories of insurance

        General insurance companies have increased the premiums for certain categories of products in the new fiscal year. April is the time when most of the customers renew their policies. IRDA reports suggest that motor insurance, fire, and group insurance premiums have gone up by an average 20%. Areas such as property insurance too have witnessed a significant rise in premium amounts. While some segments of insurance remain unaffected, others have implemented loss-based revisions to the plans offered by them. The insurance industry closed FY 2016-17 at Rs.1.23 lakh crores which is comparatively higher than the sales figures recorded for the FY 2015-16.

        10th April 2017

      • SBI Life Insurance Prepared to Launch IPO

        State Bank of India’s life insurance arm, SBI Life Insurance recently announced that they have started preparing for the process of launching an IPO (initial public offering). In a statement, the bank said that it aims to divest about 10% through the IPO. However, SBI has not received approval for the same from the market regulator so far.

        SBI Life Insurance was established following a joint venture between SBI and BNP Paribas Cardif where a majority of 74% of the stake is held by SBI, while the remaining id held by BNP. By the end of September, SBI Life Insurance is expected to get all the necessary regulatory approvals and clearances. SBI Life Insurance's IPO follows suit after ICICI Prudential Life Insurance, leading private life insurer, managed to raise Rs 6057 crore through their IPO which was launched in September 2016.

        6th April 2017

      • Bajaj Allianz Life Insurance appoints new MD & CEO

        Bajaj Allianz Life Insurance has announced the appointment of Tarun Chugh as the company’s new Managing Director & CEO. Chugh will replace Anuj Agarwal, who has been moved abroad but within the Allianz group. Chugh comes with over 22 years of experience in the world of financial services which includes 12 years of experience in the life insurance sector. Tapan Singhel was awarded another 5 year term as the Managing Director & CEO of Bajaj Allianz General Insurance. During his tenure, Bajaj Allianz has introduced the benefits of insurance to people residing in over 800 Tier II and Tier III towns in the country.

        5th April 2017

      • Three shortlisted to hold 35% stake in ICICI Lombard

        Private equity funds, Warburg Pincus, Temasek, and Carlyle are the final three to contend for 35% stake in ICICI Lombard General Insurance Company Ltd. As per reports, the deal is expected to fetch up to $1 billion. The three companies were shortlisted after bids were received from four potential investors last week.

        The other contenders in the list were KKR, Blackstone, General Atlantic, and Advent. A final round of due diligence will be conducted before binding offers are submitted at the end of April this year.

        Temasek is an existing investor in ICICI Prudential Life Insurance, whereas Carlyle and Warburg lack sizeable stakes in the Indian insurance sector.

        4th April 2017

      • IRDAI Proposes Life Insurance to be Issued in Demat Format

        The IRDAI (Insurance Regulatory and Development Authority of India) has proposed to make the issuance of life insurance policies in demat format. The IRDAI has been trying to get insurance companies to switch to the demat form since 2013, but LIC (Life Insurance Corporation) has always resisted the move on grounds of data safety and its widespread geographical reach including rural areas. The new proposal suggests that all life policies beyond a specific premium threshold should be issued in the dematerialized form. It will affect both new and existing customers. At present, there are over 360 million life policies in force and it's expected to grow by an average of 12% to 15% in the coming five years.The demat format will provide a paper free, single view format that will be safer. It will help bring down processing fees and reduce premiums.

        31st March 2017

      • Tata AIA Life Launches mInsurance - Mobile Insurance

        With everything going mobile, it is about time that insurance policies also become available online. Tata AIA Life Insurance has made that thought a reality with the launch of their new mobile insurance product called mInsurance. This unique mobile insurance facility will allow customers to purchase term insurance cover simply with a recharge using a ‘special tariff voucher'. Tata AIA Life has only launched a pilot plan of the mInsurance in association with Tata Teleservices Limited in the states of Telangana and Andhra Pradesh.

        The mInsurance paperless cover is available to all Indian citizens who are aged between 18 to 80 years. there are no medical tests required to purchase this paperless cover. Customers who purchase from a select range of Tata DoCoMo mobile recharge coupons (Special Tariff Voucher or STV) will be auto-enrolled in this paperless life cover plan. This plan is available under 2 sum assured options of Rs 50,000 and Rs. 1,00,000. The details about the life insurance cover are sent to the customer via SMS which consists of the web link from where the customer can download the insurance certificate. In case a claim has been raised, the customer needs to contact the Tata AIA Life call center to proceed with the settlement.

        31st March 2017

      • State Bank of India All Set To Dilute 10% Of Its Stake In The Life Insurance Venture

        One of the leading banks in India, State Bank of India, recently stated that they have planned to dilute 10% of its stake in the life insurance venture SBI Life through public offer. The Executive Committee of Central Board has given approval to initiate the process to sale 10% of shares through initial public offer. After this stake sale, SBI’s stake came down to 70.1% from 74%. The insurer has an authorised capital of Rs 2,000 crore and a paid up capital of Rs 1,000 crore.

        30th March 2017

      • SBI to begin process for IPO of life insurance arm

        State Bank of India (SBI) has announced that they will soon begin the procedure for an Initial Public Offering (IPO) of the life insurance wing of the bank. The bank plans on selling 10% of its stake. The bank has stated that it would sell 8% stake in SBI Life while a senior executive of the bank has stated that BNP Paribas, who is a partner in this joint venture, will sell a stake of 2%. BNP Paribas Cardif owns 26% of the life insurer while SBI owns 70.1%. This move by SBI comes after the share sale that was made by ICICI Prudential Life Insurance Co. Ltd. in September last year.

        28th March 2017

      • Insurance cover for HIV/AIDS patients a distant dream, expensive despite Bill

        Patients who are suffering from HIV or AIDS continue to have zero respite in terms of insurance coverage even though there exists a Bill which has made it compulsory for State and Central governments to not only penalize discrimination and provide treatment to HIV-positive individuals. HIV and AIDs affected patients are considered high-risk by insurers who are more likely to charge them significantly higher premiums, say insurance experts.

        According to the Bill, the insurance provider is supposed to determine the amount of cover which will be required by such an affected person based on actuarial evidence. However, since both HIV and AIDS are primarily venereal diseases, there is prominent stigma which accompanies such diseases. Due to this reason, patients are often refused insurance cover not only by public but also private insurers.

        When it comes to preventing discrimination, the bill clearly states that an HIV positive diagnosis must not become a cause for an employer to discriminate against an affected employee. However, things are quite different in real life. Insurance providers often decline to provide insurance cover to any HIV-positive patient who is a part of the group insurance plan, as such a person is considered a high risk.

        Both life and general insurance segments have been steering clear of providing insurance to AIDS/HIV positive patients due to absence of concrete data regarding pricing for such patients.

        However, in India, the Star Net Plus policy by Star Health Insurance was the first policy which offered cover to HIV- positive people. individuals.

        23rd March 2017

      • General insurance companies observe gross premium growth of 32%

        General insurers have continued their positive performance streak and have observed a 32% gross direct premium growth in FY17, till February. The premiums had crossed Rs.1 lakh crore for the first time in January 2017, primarily due to the flourishing motor and health insurance market.

        The data released by the General Insurance Council (GIC) shows that the gross underwritten premium by the industry this year was Rs.1.13 lakh crore, when compared to Rs.86,526 crore in February last year, marking a growth of 31.69%. Private insurance companies saw a 33.8% growth in the gross premium income when compared to last year, while public sector insurers saw a growth of 24.47% this fiscal.

        Private sector insurance companies have seen higher growth in this sector, largely due to the improvement witnessed in the crop insurance industry. As per statistics, the general insurance segment has received premiums worth Rs.14,000-16,000 crore from the crop insurance segment. It is likely to reach Rs.18,000-20,000 crore by the end of this fiscal. The growth observed by specialised players such as AIC and ECGC is also significant.

        23rd March 2017

      • Online account for storing insurance policies will soon be a reality

        The Insurance Regulatory and Development Authority of India (IRDAI) may mandate the use of an online insurance repository by the end of 2018. The proposed electronic insurance account will be a storage space for insurance policies in the digital format.

        Users will be able to view their policies and make alterations, if needed. The electronic insurance system promises security, speed, and accuracy in insurance policy maintenance and change management.

        One of the main objectives of the plan is to make the policy document available as an e-policy to the user even in the event of loss or misplacement of the hard copy. If implemented, India will be the first country to have such a system in place.

        When the repository has tied-up with all insurers, the policyholder will be able to access all his/her insurance policies on one platform. Updation of the KYC can also be performed in the online system. Additionally, the move is expected to save the insurance industry around Rs.100 crore per year, as the costs associated with the physical maintenance of policies will not exist.

        22nd March 2017

      • IndusInd Bank has plans to launch its own general insurance company.

        IndusInd Bank is currently a bancassurance partner for Religare health insurance and Cholamandalam general insurance. The bank is evaluating the possibilities of setting up their own company to not just be a distributer but to also offer their own general insurance products. The idea is only in infant stages and a proposal has not yet been passed by the board. Many other public sector and private banks are exploring opportunities to set up their own distribution networks to sell insurance products from different insurers. General insurance is an industry that is not as cash intensive as life insurance. Companies are proven to turn a profit in about 5-7 years.

        17th March 2017

      • Birla Sun Life Insurance survey suggests women are underinsured in India

        According to a survey report published by Birla Sun Life Insurance, women in India are underinsured. The report states that only 50% of women in the urban regions have life insurance coverage. It also suggests that 72% of their male counterparts have purchased life insurance products.

        When the total women population in the country is taken into account, these figures are well below the expected levels. Birla Sun Life Insurance revealed that women account for only 23% of their overall customer portfolio.

        Pankaj Razdan, MD and CEO of Birla Sun Life Insurance said that due importance is not given to the risks faced by women, and it is crucial for them to be equipped with a life insurance policy. The report also suggested that only 26% of women get themselves insured at an early age, i.e., when they are between 20 and 30 years of age. It also stated that more women in the middle income group purchase savings-linked life insurance products. Wealth-related products are more popular among women in the low income group. The survey also reveals that women who earn higher incomes plan better for their retirement by purchasing pension-related products.

        The report further states that there has been an increase in cases where women have been beneficiaries in life insurance policies.

        10th March 2017

      • Growth of First Year Premium Significant in FY16

        The life insurance industry which consists of 23 private firms and one state-owned company (LIC) have recorded a significant rise worth more than Rs. 1.38 lakh crore by way of new policies. The life insurance segment led by LIC sprang back in 2015-16 and recorded a growth of 22.5 % by in terms of first year premium, as opposed to a drop of nearly 6% for the same period a year back.

        According to the data released by IRDAI, Life Insurance Corporation of India (LIC) recorded a growth of 24.69% by the sale of new policies and collected Rs. 97,891.51 crore in the financial year ending in March 2016. In the year 2015-16, the life insurance industry on a whole recorded a dip of 13.55% in growth in terms of first year premium. Leading banks and NBFCs like SBI Life, HDFC Standard Life, ICICI Prudential, Bajaj Allianz, Birla Sunlife and Max Life were some of the insurance players in the private sector who recorded a growth in the first year premium during 2015-16. Other insurers such as Reliance Nippon, Aegon, Aviva and Exide Life registered a drop in the premium earnings.

        9th March 2017

      • New Regional office opened in Bhopal by SBI Life Insurance

        SBI Life Insurance has now opened a new regional office in Bhopal. Arijit Basu, Managing Director and Chief Executive Officer, SBI Life Insurance, inaugurated the regional office in the presence of K.T. Ajit, CGM of SBI, Bhopal Circle, and Anand Pejwar, Executive Director, Marketing, SBI Life Insurance. SBI has extended its support to specially-abled children to facilitate easy conveyance to the Ability Development Centre which is run by a voluntary organisation called Arushi which is based in Bhopal. There are close to 150 children who train at this centre. These kids are either visually impaired or have some other physical impairments. Basu has said that SBI Life has observed a remarkable growth and the company is expanding its reach to Chhattisgarh and Madhya Pradesh.

        08th March 2017

      • Reliance General Insurance partners with Catholic Syrian Bank for expansion

        Reliance General Insurance and Catholic Syrian Bank have entered into a partnership with a vision to expand the insurer’s distribution network. Reliance General Insurance was earlier associated with several banks, including UCO Bank, for the distribution of their insurance products.

        Reliance General Insurance CEO, Rakesh Jain, mentioned that their business through banks stood at Rs.50 crore in 2015-16. In the current financial year, they aim to earn around Rs.200 crore from sales through this channel. The company intends to boost its topline by up to 15% through these tie-ups.

        As part of the alliance, the insurer’s products will be offered to 1.5 million customers of Catholic Syrian Bank, across 430 branches in the country. CVR Rajendran, MD and CEO of Catholic Syrian Bank, said that the tie-up will bring together the banking and insurance needs of their customers under one roof.

        06th March 2017

      • ETMoney and HDFC Life jointly launches data-led insurance plan

        ETMoney, a personal financial app backed by Times Internet, in alliance with HDFC Life has launched a data-led group term insurance plan. This plan, based on the spend pattern of the user, will be the first of its kind in the country.

        The policy is offered to more than 1 million users of the ETMoney financial application, and it has a coverage between Rs.25 lakh and Rs.50 lakh. ETMoney users can also avail tax benefits under Section 80C of the Income Tax Act. These savings could be up to 30% of the premiums paid.

        Mukesh Kalra, COO of ETMoney, mentioned that the millennials in India are currently underinsured. The newly introduced term plan will be a simple, cost-effective, and paperless method of starting their insurance journey. The company is also happy to be in partnership with an industry leader such as HDFC Life.

        HDFC Life MD and CEO, Amitabh Chaudhry, mentioned that they are proud of the fact that their association with ETMoney will help them reach out to the young customer through the popular financial app.

        2nd March 2017

      • Credit enhancement guarantee fund to be launched by LIC, IIFCL

        The government has finally made a decision to make India Infrastructure Finance Co. Ltd (IIFCL) as a lead promoter for a credit enhancement fund which was announced in the Union budget in February 2016. The fund which amounts to Rs.1,000 to Rs.1,500 crore is set to be announced in the month of April as the government is in talks with different foreign and domestic banks. In the initial stages, LIC was fixed as the lead promoter. But, life insurance norms states that LIC is not allowed to hold a stake of 20% or more in companies such as these. The credit enhancement fund will provide a further assurance that a loan borrower will ensure that their loan will be serviced.

        27th February 2017

      • Oriental Bank Has Partnered With Chola MS To Offer Insurance Products

        One of the leading private banks in India, Oriental Bank of Commerce, has joined hands with Cholamandalam General Insurance Company to offer a wide range of non-life insurance product. Going forward, Chola MS will sell their non-life insurance products to Oriental Bank of Commerce customers. Travel, motor, health, and home insurance are some of the insurances that will be sold by Chola MS. Animesh Chauhan, MD and CEO of the Oriental Bank of Commerce stated that they are happy to have partnered with Chola MS and are going to bring the best non-life insurance products to their customers. He further stated that Oriental Bank of Commerce customers will greatly benefit from this partnership.

        23rd February 2017

      • Life Insurers Report 35% Growth In New Business Premium

        The Life Insurance Industry in India reported a growth of 35% in new business premium as on January, 2017. The reason for hike in new business premium is mainly due to significant growth in the group as well as individual single premium policy. State owned Life Insurance Corporation of India(LIC) reported relatively higher growth than the private insurers. While the private insurers reported a growth of 26.31%, LIC recorded 39.06% growth in this financial year. A report from the giant of insurance industry, Irdai (Insurance Regulatory and Development Authority of India) supports this statistic. According to the report from Irdai, Rs.29 lakh crore new business premium was recorded by the Life insurance industry in India in this financial year. In the previous financial year, life insurance industry earned Rs. 85,871.62 crores premium.

        23rd February 2017

      • IndiaFirst Life looks to double revenues in FY17

        IndiaFirst Life Insurance is looking to double its profits in the financial year 2016-17, from the Rs.7.72 crore mark seen in the financial year 2015-16. RM Vishakha, MD & CEO of IndiaFirst Life Insurance, said that digitised mass markets and the rural domain will be the prime focus of the company. The insurer gets a large chunk of its income from distribution of policies at banks.

        Vishakha mentioned that about 90% of Andhra Bank branches were responsible for the sale of a policy throughout the year. Out of this, almost 60% of branches have sold an insurance product every alternate month. She also stated that 70% of the Bank of Baroda branches were selling insurance policies.

        Vishakha said that the opening of bank branch network to multiple insurance companies should not be mandated, as the banks have a large responsibility of selling policies. She also mentioned that the company has seen a 90% growth in premium in the individual segment, on an annual basis. Vishakha stressed that the company is looking to make a big entry into internet marketing, and the launch of their new website is a precursor to this. The CEO also stated that the company has reached almost 75% persistency in the renewal of insurance policies, a figure that is much higher than its competitors.

        22nd February 2017

      • Irdai To Form Actuary Panels For Life Insurance

        The Insurance Regulatory And Development Authority of India (Irdai) is all set to form dedicated panels for life insurance, health insurance, and other general insurance. Irdai has invited bids from actuaries ad firms who employ analysts to form the panel of actuaries. According to the bid document, each panel will be valid for a period of three years. For this year, the panel will be active from 1st April 2017 to 31st March 2017. The panel would be asked to give an opinion on the products filed by an insurer. Another responsibility of the panel will be to investigate the financial position of any insurer or to give a valuation report. The actuaries will also be required to approve the new products with their inputs and certification.

        21st February 2017

      • Launch of Life Pragati policy from HDFC Life

        Private life insurer, HDFC Life, has unveiled the Life Pragati policy that is targeted at the low income families in India. With the launch, they intend to widen the reach of life insurance to every single household in the country. The policy offers ‘with-profit’ life coverage that enables savings to grow with guaranteed premium returns. The plan, apart from enabling customers to save for future milestones, also provides financial protection to endure the uncertainties in life.

        At the launch of the product, the insurer stated that they have dedicated this product to the lower income group that constitutes almost half the population of India. They intend to help this strata of the society save for their future and also receive protection, without making a significant impact on their monthly income.

        20th February 2017

      • Post 3 years of launch, e-insurance still not seeing expected response

        As per current estimates, out of the 9.875 crore insured Indians, only 9 lakh have opened e-insurance or DEMAT accounts. This amounts to a mere 0.9% of the total insured population, indicating that the e-insurance initiative has not taken off like the other schemes introduced by the Government.

        e-insurance accounts are of immense help in events like tsunami or floods where people lose all vital documents that prove their identity. Data repositories opine that the biggest hurdle to the success of the initiative is the non-participation of LIC. Also, while the IRDAI has been in the forefront promoting the initiative, they have not mandated it. Another roadblock is the non-participation of majority of the general insurance industry in the initiative. Although 24 life insurance companies have signed up for e-insurance, only 8 general insurance companies have endorsed it. In addition, data repositories state that some life insurance companies consider establishing the infrastructure for e-insurance as an unnecessary cost.

        ICICI Lombard stated that more awareness needs to be created on the benefits of having an e-insurance account. The insurer is also trying to propagate the initiative through emails and social media.

        20th February 2017

      • Launch of Aviva Heart Care, India’s first heart insurance plan for couples

        On the occasion of Valentine’s Day, Aviva Life Insurance has unveiled the first heart insurance plan for couples in India, Aviva Heart Care. The plan provides cover for 19 severe, moderate, and mild cardiovascular diseases and procedures. A lump sum payment is made to the insured, irrespective of the treatment costs.

        The plan is unique as it provides coverage exclusively for cardiovascular conditions. The customer can avail coverage for his/her spouse as well, under the same policy at an additional premium. The plan has options for restoration of policy benefits when the basic sum assured is exhausted. The insurer claims that the plan is an answer to the problems faced by people who often have to depend on mediclaim or critical illness plans for such ailments. The coverage offered by mediclaim or critical illness policies may not provide a substantial payout, unlike the Aviva Heart Care plan.

        Other benefits of the plan include:

        • Comprehensive cover provided for 19 cardiovascular conditions.
        • Multiple claims can be raised, based on the severity of the condition.
        • Double coverage is offered for severe category ailments for both the policyholder and spouse.

        15th February 2017

      • Life insurance segment observes 11% rise in premium during Apr-Jan this fiscal

        The improvement in the spending capacity of the common man owing to the rise in per capita income has contributed to the spike in premiums collected by the insurance segment. The data released by the Insurance Regulatory and Development Authority of India (IRDA) has indicated that the premium collection by non-life insurance companies has risen by 31.7% in the fiscal 2016-17, to stand at 1.04 trillion rupees. On the other hand, life insurance providers observed a rise of 11% in AUM, when compared to the last financial year.

        The highest premium was collected by leading insurer, New India Assurance Co. Ltd., and this amounts to 156.4 billion rupees. ICICI Lombard tops the list of private sector general insurers with a premium collection of 91.4 billon rupees.

        The data also showed that public sector insurance companies mopped up 558.1 billion rupees, while private players collected 478.5 billion rupees during this interval. This clearly highlights the growth witnessed by the insurance sector and the stiff competition therein.

        15th February 2017

      • Life Insurance Corporation raises stake in Infosys

        Despite the fact that Infosys has made news with their top bosses involved a fearsome tussle, Life Insurance Corporation has increased its stake in Infosys to 7.02%, proving that it still has faith in the growth of the company. The largest institutional investor in the market, Life Insurance Corporation increased its stake by 4.45%. Earlier, the insurance company held a 3.25% stake in infosys, and the move makes them Infosys’s largest stake holder. Experts estimate that now Life Insurance Corporation now holds stakes amounting to more than Rs.1,400 crore.

        14th February 2017

      • PNB MetLife to introduce ‘Mera Heart and Cancer Care’ unit linked insurance plan

        PNB MetLife announced that they will soon be launching the ‘Mera Heart and Cancer Care’ plan to customers in India. MHCC will be a non-participating health insurance plan that provides significant benefits to cancer and heart patients across the country.

        The plan is tailor-made to offer comprehensive insurance coverage throughout all stages of heart diseases and cancer. The coverage under the plan offers a lot of flexibility, and buyers can customise it to avail special benefits for women at the payment of special premiums.

        07th February 2017

      • Indian Government may list 5 state-run general insurer to raise $1.6 billion

        In the next few months, the Indian Government may list out five state-run general insurers who would raise its stake sale to $1.6 billion in this fiscal year. In the recent budget announcement, the government claimed that there will be sale of unspecified stakes in United India Assurance Co. Ltd., New India Assurance Co. Ltd., General Insurance Corp of India, and National Insurance Co. Ltd. Bankers are expecting the sales to start by December. The insurance stake sales was approved by the Indian federal cabinet in January. It was decided at that time that the stakes in the companies would be cut in one or more tranches from 100% to 75%.

        3rd February 2017

      • Shares of ICICI Pru go up by 3% on cabinet’s approval for listing government-owned general insurance companies

        With the cabinet’s approved list of government-owned general insurance companies at the stock exchanges, the shares of Max Financial Services and ICICI Prudential Life Insurance Company have gone up by 1 – 3%. The government intends to lower its stake from 100% to 75% in five companies, namely – the United India Insurance, New India Assurance, General Insurance Corporation of India, Oriental Insurance, and National Insurance.

        The listing is expected to make way for these companies to source resources from the capital market for expanding their businesses, instead of depending on the Government.

        27th January 2017

      • Insurance industry to seek higher exemptions in tax in the upcoming budget

        Following demonetisation, the insurance industry is expected to focus on e-payment, compulsory home insurance, and higher tax exemptions in the next Union Budget. The insurance industry expects the upcoming budget to bring about a level playing field for annuities in the life insurance sector, resulting in more pension and retirement savings. MD and CEO of Edelweiss Tokio Life Insurance, Deepak Mittal said the expectations from the budget is to spur consumption with the help of higher tax-free slabs combined with higher infrastructure expenditure and a lower tax regime. Rajesh Sud, the Executive Vice CMD of max Life Insurance also expressed a similar view and said that the government might announce simplified income tax laws in line, expected to make the laws more competitive with respect to global economies. Various insurance companies expressed different expectations of the Union Budget for 2017-18.

        25th January 2017

      • HDFC Life sees a profit of 10% in April-December period

        HDFC Life has reported a net profit of Rs.645 crore in the April-December period for the financial year of 2016-2017. This is a 10% increase from the previous year which saw a net profit of Rs.589 crore in the same time period. The company reported a growth of 20% in total premium which was assisted by a 9% growth in renewal business and a 38% increase in new businesses. HDFC life, known for its affordable life insurance plans, has registered a 17% growth in assets under management with a 62:38 debt to equity mix.

        24th January 2017

      • New Panel Formed By IRDAI To Review Life Insurance Norms

        Insurance Regulatory and Development Authority of India (IRDAI) recently announced the constitution of a committee that it has set up in order to review the regulations surrounding life insurance products. The panel will be chaired by Mr. Amitabh Chaudhry who is the CEO at HDFC Standard Life Insurance.

        The primary agenda of the committee is to review the existing framework of norms for insurance product which are linked and also those which aren’t linked to IRDA, among other things. The committee is expected to hand in its report to IRDA on or before March 15, 2017. The committee consists of other distinguished members such as K S Gopalakrishnan, CEO, Aegon Religare Life Insurance, Sai Srinivas, Appointed Actuary, Bajaj Allianz Life Insurance and Sandeep Bakshi, CEO, ICICI Prudential Life.

        19th January 2017

      • 2016-2017 sees 72 new life insurance products being introduced

        The Insurance Regulatory and Development Authority of India (IRDAI) provided data which suggested that Life Insurance Corporation (LIC) surpassed private insurers with respect to the average number of new products that were offered whereas Unit Linked Insurance Plans (UNILPs) comprised of less than half the number of new products that were offered. According to the data produced by the IRDAI, LIC had developed four products out of which three of them were modified and offered from pre-existing products and only one was a new product. With the number of new life insurance policies being offered every year, the regulator had to curb insurers from filling up too many approvals as this would lead to a delay in these approvals being. The regulator also formulated a product planner rule to ensure that insurance companies wouldn’t seek the approval for more than five products a year. If the insurer surpasses this curb, IRDAI has said that the insurer would have to provide all the necessary data with respect to market research and product-wise arrangements.

        17th January 2017

      • HDFC Ergo joins New India, United, in credit insurance

        HDFC Ergo General Insurance, known for providing sort-after life insurance policies, announced today that the insurance company will be joining the incipient credit insurance segment which will offer complete cover to various corporate companies in the event of a possible default by their customers. HDFC Ergo joins companies like United, New India, Bajaj Allianz, ICICI Lombard and Iffco Tokio which offer similar products related to this subject. The Executive Director of HDFC Ergo, Mukesh Kumar, said that existing companies have been underwriting premiums to the tune of Rs.150-200 crore annually and that HDFC aims at selling around 100 policies spread over the next 18 months. HDFC Ergo will provide risk cover to exporters and their goods apart from offering cover to companies who are subjected to losses caused by customers who default on their policies.

        17th January 2017

      • Future General India Life Insurance to offer group credit life insurance

        Future General India Life Insurance announced that it will be collaborating with Vastu Housing Finance Corporation to provide a group credit life insurance called ‘Loan Suraksha Plan’. It is a plan that’s designed to cater to financial institutions to issue life coverage to new and existing borrowers. This will be a single premium plan which is said extend protection to the borrower to the amount of the home loan. The borrower will also have the option of extending his insurance coverage in case of additional loans and top-ups. Munish Sharda, Managing Director and Chief Officer of Future General India Life said that the company is looking forward in seeing their association with Vastu Housing Finance bloom and to offer their services through this new scheme.

        12th January 2017

      • Fino Paytech sells 12% stake to ICICI PLF and ICICI Lombard

        ICICI Lombard and ICICI Prudential Life Insurance have bought a 12% stake in Fino Paytech for Rs.150 crore. The company is now valued at Rs.1,200 crore. This deal will result in a twin effect with Fino Paytech working towards orders on foreign holding and to help the two insurers to easily sell their products to the people of remote villages. Fino Paytech recently sold a 21% stake to Bharat Petroleum for Rs.251 crore which has already employed its services at over 12,000 petrol pumps all across India. Fino Paytech has been awarded the payments bank licence after working as a business correspondent though Fino Paytech has been the only domestic remittance payments company.

        12th January 2017

      • Tata Motors Set To Launch Virtual Reality Outlets In 2017

        By mid-2017, Tata Motors is planning to open virtual reality outlets where customers can interact with the sales executive with ease, and enjoy shopping for a car in 5D. At least one executive will be appointed per showroom, to attend to the customers, and collect data. With the novelty of a virtual reality store, the company expects more customers to visit. Customers will get the opportunity to experience car shopping in 5D. This initiative also means lesser expense on real estate for the showrooms, especially in Delhi, Mumbai and other metro cities where obtaining a good real estate can be difficult.

        4th January 2017

      • Online Insurance Purchase Gets a Boost with Digital Sops

        The online insurance market does not even account for 1% of the gross premium amount of Rs.4.63 lakh accumulated by the insurance industry in the Financial Year 2016. But the government’s decision to incentivise online policy purchase from the public sector companies comes as a major boost for the future of this sector.

        This decision comes amid a plethora of other announcements made by the Central government to push the country towards a cashless economy. The government-owned insurance companies would now offer a discount or credit of up to 10% of the premium amount in case of general insurance and 8% in case of new life insurance policies sold through customer portals, if the premium is paid via digital means.

        According to IRDAI, purchase of online health insurance contributed to 2% of the total premium collected in health insurance sector in the Financial Year 2016. In the life insurance sector, online sales provided 0.52% of all the new premium collected.

        Although government sector insurers like LIC lead the insurance sector, they lag behind their private peers when it comes to online sales. According to Alok Bhatnagar, the co-founder of EasyPolicy, currently the market share of public-sector firms for purely online purchase of policies is not more than 15%.

        3rd January 2017

      • Rajan Wadhera to be President of Mahindra & Mahindra Automotive Division

        On 31st March, 2017, the current President and Chief Executive of Mahindra & Mahindra Automotive, Pravin Shah will retire from his post. He is to be succeeded by Rajan Wadhera, who will be managing the buses, trucks, and the construction equipment business in addition to the automotive segment. Rajesh Jejurikar is chosen to be the President of M&M’s Farm Equipment department, while Ashok Sharma will become the President of the company’s agricultural division. All 3 men will report to Dr. Pawan Goenka, the MD of Mahindra & Mahindra Ltd. Post demonetisation, the company saw a decrease in sale of commercial vehicles, and passenger vehicles by 14.03% and 32.78%, respectively.

        3rd January 2017

      • Tata AIA Bids To Take Over 70% Stake in PNB Metlife

        Following a board meeting held on Oct 24, recently held, Tata Sons, in association with their partner, AIA Group, will be making non-binding bid to acquire a 70% stake in PNB Metlife.

        The various stakeholders are MetLife International Holdings LLC which holds 26% stake, Elpro International which holds a 21% stake, M Pallonji & Company with 18% stake, Jammu & Kashmir Bank Limited owning 5% stake and the rest of the remaining stake of 30% is held by Punjab National Bank itself.

        Following a successful buyout of PNB’s stake, Tata AIA plans to merge it with Tata AIA Life Insurance Company. Tata AIA Life Insurance Company Limited (Tata AIA Life) was formed following a partnership between Tata Sons Ltd. and AIA Group Ltd. (AIA). PNB MetLife enjoys a trusted presence across 150 Indian cities with 7000 locations since 2001 and has a wide spread customer base.

        2nd January 2017

      • Life Insurance Profits Drop Despite 14% Growth in General Insurance

        India remains to be ahead of the UK and the US with a premium growth rate of 7.9% as compared to the average of 2.5% recorded by advanced countries. However the real test lies in the emerging markets where India has lagged behind, showcasing average growth rate of 9.8%. Looking at Asia where the average is at 8.2%, India has fallen behind countries such as Singapore, Thailand and Malaysia.

        After recording $71.78 billion in premium income in the year 2015-16, India has secured 1.5% of the global insurance market. This premium income can be largely split in two parts out of which $56.68 billion (78.96%) can be attributed to the life insurance industry and $15.10 billion (21.04%) to the general insurance industry.

        In India, life insurance providers recorded a drop of 2.4% in profits which came down to Rs 7,414.97 crore. this is despite the 14% surge in profits recorded by the general insurance industry, whose profits touched Rs 96,379 crore. India’s 4 leading insurers witnessed a 41% growth and general insurers have also recorded a modest profit from their health insurance segments.

        2nd January 2017

      • SIDBI partners with LIC to boost the venture capital ecosystem of India

        To boost venture capital investments and to promote MSMEs in the country, Small Industries Development Bank of India (SIDBI) has partnered with the Life Insurance Corporation of India (LIC). SIDBI portfolio covers various funds under the Funds of Funds operations, and this includes India Aspiration Fund, Aspire Funds, and Funds of Funds for Startups. SIDBI had earlier signed a memorandum with insurer in April 2016 with an aim to increase the funds under India Aspiration Fund. SIDBI also constituted a committee with experts such as HK Mittal, Kiran Karnik, Sanjeev Bikhchandani, and some more prominent professionals to bring orderliness and to improve productivity.

        11th January 2017

      • Amid increased e-wallets usage, insurance industry expands its portfolio

        With online cyber thefts occurring more frequently than a common cold, cashless transactions provide an ample breeding ground for cybercrimes. Our government has been encouraging our country towards cashless transactions. But with the increase in use of e-wallets, general insurance agencies are looking at developing new insurance products to cover cashless transactions.

        To ensure retention of customers, various mobile wallet companies like Freecharge and Paytm have started providing insurance to its customers to help drive customer perception of wallet safety while using their apps for online transactions. Such a move is bound to increase the frequency of mobile transfers and online banking.

        5th January 2017

      • Mobile & e-wallets Will Enable Insurers To Initiate Digitization

        The insurance sector in India is on the path of growth. Ever since privatization started, the size of the insurance industry has only grown by leaps and bounds. The sheer number of insurers in the private segment has increased 10 times. The penetration of life insurance alone rose to 2.6% in the year 2015 as opposed to 1.5% recorded in the year 2000. However, insurance continues to remain a product that requires selling and is still not seen as a necessity.

        The most glaring example in this case is the Pradhan Mantri Jeevan Jyoti Bima Yojana, a government backed insurance scheme which was introduced back in the year 2015 and was supported by a number of leading banks in the country. Even though the rates of renewal for the scheme went up by nearly a whopping 90%, the percentage of new enrolments in the second year were few and far in between. Put together, a total of 3 crore people have taken the PMJJBY scheme. However, looking at the upside of things, due to the PMJJBY, the penetration of insurance has been considerably noteworthy. Taking the example of this, awareness around insurance needs to be built so that the actual potential of the insurance industry can be realized.

        The year 2016 has provided the insurance industry with several historical developments such as the launch of the first IPO ever in the insurance segment and the merging of two major insurance companies.

        5th January 2017

      • Online Sales Of Aegon Life Insurance Doubled Over The Past Year

        Martjin de Jong, Chief Digital Officer of Aegon Life Insurance stated that Aegon’s life insurance online sales has increased two fold since last year. He stated that he expects this grow and that demonetisation will increase online sales of their insurance products. According to him, the other factors that will increase the digital sales of the company are young population, high growth in national income, and hunger for data. Aegon Life Insurance gets 35% of their sales from online portals. Whereas according to industry experts, only 2-3% of customers buy their policies online. Martjin stated that even if this percentage increases to 10%, insurance companies will grow vastly.

        26th December 2016

      • MetLife Launches Virtual Reality Insurance Experience in India

        MetLife Insurance firm and PNB MetLife has joined hands to launch a virtual reality customer service platform. This technology platform is called as “CobVRse”. Customers who are looking for customer service can experience a simulated 3D environment. This is the first virtual reality technology in the insurance industry in India. In these systems, insurance advisors will be portrayed as avatars named “Khushi”. Customers will be able to interact with these avatars. Currently, this system is implemented in 15 MetLife branches spread across 10 cities and towns in India. In the second phase, MetLife will introduce VR devices to their sales team.

        26th December 2016

      • Demonetisation Effect On Life Insurance Policies

        After demonetisation of Rs.500 and Rs.1000 currency notes was declared in India, people looked for ways to save their unaccounted money. Insurance companies were benefitted by this move as lot of them purchased life insurance policies. According to a report issued by the Insurance Regulatory and Development Authority of India, individual single premiums collected in the month of November after demonetisation was announced was Rs. 6,692 crore which is 507% more than the insurance premium collected in the month of November, 2015 of Rs.1,103 crore. On a monthly basis, life insurance segment grew by 170% from the previous month whereas the industry grew by only 28% on a month-on-month basis previously. Industry experts stated that demonetisation has impacted the life insurance sector positively as about Rs.12 trillion has come into the formal system.

        23rd December 2016

      • Massive Rise In Insurance Claims Due to Cyclone Vardah

        Cyclone Vardah was one of the severe natural calamities in India in the year 2016. The angry wind destroyed almost everything in the cyclone hit regions. As the cities and towns are recovering from the cyclone effect, numerous insurance claims have been made. Insurance companies are receiving high number of claims for huge amount. Insurance companies have stated that they will get claims worth Rs.350 crore due to Cyclone Vardha which struck Chennai coast on December 12. Most of the insurance claims are made by small scale businesses, warehouses, automobile sector, and godowns. J.S.Dhahiya, General Manager of United India Insurance Company stated that they have received more than 250 claims so far for a value of Rs.80 crore but they are expecting the value to go more than Rs.200 crore. The centre has decided to launch insurance cover for natural calamities going forward.

        23rd December 2016

      • Max Life and HDFC Life respond to the IRDA concerns

        In their response to the concerns raised by IRDA on the merger model, the companies, Max Group and HDFC Life have submitted the first set of arguments defending the merged life insurance businesses. It states that the companies have not altered the merger model and the newly formed division operates in accordance with Section 35 of the Insurance Act. The second argument put forward by the companies is that, Max Financial Services has its major form of business in life insurance segment under Max Life, hence IRDA should not consider Max Financial Services as a problem in this scheme of arrangement. The insurance regulator IRDA is in the process of examining the report submitted by the two firms.

        22nd December 2016

      • Government Offers Discounts On Insurance Policies Bought Online

        In an attempt to encourage people to go cashless, state-owned insurance company, Life Insurance Corporation are offering 8% to 10% discount on policies purchased online. The insurance companies are able to provide discounts as online sales reduces the servicing costs and the commission cost they pay to the intermediaries. Thus, the insurance companies share a part of their profit with the customer by reducing their premium. LIC has not launched any new policies after announcing about the online discount. Currently, LIC offers only two types of policies online, namely Term Policies and Immediate Annuity Plan. They offer Term Policies online to customers who ask for policy with a sum assured of above Rs. 25 lakh.

        22nd December 2016

      • Bajaj Alliance introduces its new life insurance policy - e-touch

        Combining both health insurance and term insurance in one policy, e-touch gives customers the benefit of having a term insurance as well as having accidental death/disability cover till the age of 75 - all in one plan. The plan has four variants: Shield - Life Benefit plus WOP Benefit, Shield Plus - Life Benefit plus ATPD Benefit plus WOP Benefit, Shield Super - Life Benefit plus ADB plus ATPD Benefit plus WOP Benefit and lastly Shield Supreme- Life Benefit plus ACI Benefit plus ATPD Benefit plus WOP Benefit. Vineet Patni, President and Chief Institutional Business Officer, Bajaj Allianz Life Insurance, says that he is pleased that Bajaj Alliance is the initiator for a plan such as this in the market.

        21st December 2016

      • SBI Life’s performance supports its deal with KKR and Temasek Holdings

        SBI gave a 3.9% stake in SBI Life to KKR and Temasek Holdings at Rs.460 a share, valuing the business at Rs.46,000 crores. Analysts are speculating on whether a value of Rs.46,000 crore for SBI Life that holds over 9% market share looks good. The answer will be found in its performance in the first half of 2016 to 2017. SBI Life showed a 77% growth in its new business premium to Rs.4,644 crores from 54%. Despite a rapid growth, it showed only a 6% rise in its net profit to Rs.428 crores for a 6-month period, ended in September.

        The deal values the company at 3.5 times its embedded value of Rs.13,000 crores for 2016- 2017. This looks average in comparison to ICICI Prudential Life Insurance valued at 3.45, and HDFC-Max Life at 4.3. Given the growth rates, analysts at Nomura Securities, state that SBI Life’s cost ratios are the best in the industry, leading to superior margins, and improving operating expense ratios. SBI Life has favourable earnings metrics. Its persistency ratios for 13th and 61st months are 77.4% and 26.97%, respectively, and its renewal premium business showed 20% growth.

        21st December 2016

      • Smart usage of money back plans can enhance returns

        Money back plans are popular among customers because of the returns generated at regular intervals. Though the returns generated are low, according to experts, smart usage of money back plans can enhance returns. Money back plan is the only product which provides survival benefit, maturity benefit, and insurance cover. According to V Manickam, Life Insurance Council Secretary, the real value of money back policy comes to prominence when you realize that value of money decreases over time. This effect can reduce purchasing power. With their regular payments, money back plans can help get better returns when the funds are deployed now, instead of doing it after 10 to 20 years.

        According to Anil Rego, Founder of Right Horizons, one of the smart uses of a money back policy is paying for the policy itself after sometime. He also added that loans can be a smart usage of these plans as it helps use an existing asset to get a better interest rate. Rishi Mathur, Head-Products, and Strategy, Canara HSBC Oriental Bank of Commerce Life Insurance, said that money back plans are ideal for short term financial requirements.

        21st December 2016

      • Bajaj Allianz Life Insurance Kicks Off Jan Jagruti in West Bengal

        India’s leading privately held life insurer, Bajaj Allianz Life Insurance recently launched a roadshow in West Bengal to increase awareness about insurance. Known as ‘Jan Jagruti’, the roadshow commenced on Dec 6 and will be conducted across 25 major towns and cities in the state. The Jan Jagruti drive is being conducted with the primary objective of raising awareness about the importance of car insurance and how it works to not only protect individuals but also their loved ones.

        20th December 2016

      • LIC’s new premiums saw a 140% increase following demonetisation

        After demonetisation of high value notes in November, data showed that LIC’s new premiums saw a 140% jump and collected Rs.12,528.07 crores as new premium on a year-on-year basis. Whereas, private life insurance companies saw a 50% growth in new business premiums for the month of November, and collected Rs.3,533.33 crores.

        From April to November, life insurers collected Rs.1,03,404.60 crores as first year premiums, showing a growth of 39%. LIC saw a growth of 44%, while private insurers gained 26%. According to insurance executives, 50 to 55% of premium payments have moved to online payment, credit or debit card payment, and cheque.

        19th December 2016

      • Aviva launches ‘Aviva Heart Care’ for couples

        Aviva announced a new heart insurance plan on 7 December targeting couples, which is first of its kind in the whole country. The product named ‘Aviva Heart Care’ comes as a joint policy offering and it provides protection against 19 different heart conditions ranging from mild to moderate and extreme. Policyholders can restore the benefits anytime, if the entire sum offered under the plan is used up for treatments. Regardless of the nature of treatment, the policy also gives the option of lump-sum payout. According to the company statement, Aviva Heart Care allows one to cover themselves and their partner in the same policy at an easily affordable price.

        16th December 2016

      • HDFC Life Enters Micro-insurance Segment

        One of India’s leading life insurer, HDFC Life recently launched themselves in the micro-insurance space with two brand new products - Jeevan Suraksha and Credit Suraksha which will provide affordable financial security to customers.

        On the occasion of the launch, Mr. Sujoy Manna, VP for HDFC Life (Products) said that that there is untapped potential in the micro-insurance space and HDFC will employ a multi-channel distribution network, while taking lessons from successes in the past to launch these new products for customers, while also increasing the penetration of micro-insurance. He also said that with this venture, HDFC will be able to tap into the financially under-insured

        By partnering with micro finance institutions, the private insurer will tap the financially under insured segments throughout India and also co-operatives which are a major part of the unorganized sector.

        15th December 2016

      • Insurances premiums and bonuses could be impacted all because of the falling interest rates

        With interest rates moving south swiftly, possibly a result of demonetisation, it is most likely that bonuses on insurance plans could be lowered and premiums going north. Milliman says that lower yields on fixed-interest assets has made it challenging for insurance companies to meet the terms they have guaranteed. He added that lowering the bonuses offered in insurance plans and increasing the premiums could be their only way forward. S.P. Prabhu, head-debt funds, IDBI Federal Life Insurance says that this is definitely how they would choose to move forward, that said, the increase of premiums will be minimal and not dramatic.

        14th December 2016

      • JetPrivilege Members To Be Insured By HDFC Life

        JetPrivilege members will be covered under a unique one year life insurance policy in association with HDFC Life. The policy is available exclusively to JetPrivilege members, who can apply for the policy online.

        The policy offers a number of benefits such as a choice of coverage (either Rs.50 lakh or Rs.75 lakh) at very affordable premiums. In addition, the policy will be provided without medical tests.

        The term plan will cover policyholders for 365 days and the cover amount will be determined by the membership tier level as part of JetPrivilege loyalty program.

        The partnership between HDFC Life and Jet Airways is the first of its kind for the airline, and it is confident that the life insurance plan will receive support from its loyalty membership customers.

        5th December 2016

      • Edelweiss Tokio provides Rs.1 crore cover to Indian Paralympic medal winners

        Edelweiss Tokio Insurance Company has provided a life insurance cover for every Indian paralympic medal winners from Rio 2016 Paralympics contingent.

        These athletes include Mariyappan Thangavelu, Varun Singh Bhati, Deepa Malik, and Devendra Jhajharia. They were all facilitated at the “Edelweiss Titans” event, an awards and recognition program to facilitate over-achievers within the group.

        The company had announced that it would be the first and only sponsor for India’s Paralympic team at Rio De Janeiro, Brazil.

        Rashesh Shah, Chairman of Edelweiss Group, spoke on the occasion and spoke proudly about the medal-winning athletes and stressed on the fact that these athletes, despite facing numerous hurdles, went on to win a medal for the country.

        The athletes too were happy with the recognition and were happy to be facilitated for their achievements in a land where cricket and bollywood are the only two things people seem to care about.

        2nd December 2016

      • 12% Increase in Products Offered by Life Insurance Companies

        The life insurance sector at the end of October 2015 had a total of 610 products in its portfolio, and that number has risen to 685 in October 2016, marking a 12.3% increase in the number of products made available to customers. This information was released by the Life Insurance Council, which revealed that the number of products so far as the private sector was concerned was 579 last year, and has currently grown to 650 in 12 months’ time. India’s biggest insurer – Life Insurance Corporation of India also witnessed a rise in the products offered, jumping from 31 to 35 in the space of a year.

        Between individual insurance products and insurance policies designed for groups, the former recorded a faster growth rate as the number of individual products rose from 451 to 518 between the October of 2015 and the October of 2016. A marginal increase was recorded with group products, as they rose from 159 to 167 in the space of a year.

        1st December 2016

      • PCMC Enables School Students to Avail Insurance Cover

        It is reported that more than 40,000 students will now be eligible for the scheme wherein parents will receive Rs.1 lac in case of the accidental death of their child on campus. Starting from Academic Year 2017-18, the PCMC (Pimpri-Chinchwad Municipal Corporation) will provide insurance cover to primary as well as secondary school students until they have completed their education. PCMC currently manages 136 schools that offer education to more than 40,000 students from classes I to VII. The PCMC budget has already made a provision of Rs.40 lacs for the same so that students can remain protected whilst their families also receive financial security in case of their untimely demise on campus.

        1st December 2016

      • Total Insurance Premiums To Touch Rs 26 trillion by 2020, says CII-KPMG Report

        According to a report put together by CII-KPMG, the total premium of the entire insurance sector, including life and non-life insurance, is predicted to touch a figure of Rs 26 trillion by the year 2020. The report was unveiled jointly by CII and KPMG also mentioned that India is yet to start on the path of distributing insurance products with the help of widespread use of digital channels, for which it is important for a considerable number of intermediaries to be a part of the insurance distribution process. Given the low rate of insurance penetration in India, the report also addressed the issue and has given some suggestions regarding the same. They have suggested that the insurance distribution channel strategy must be redesigned, in addition to creating financial awareness not only of the customers but also of the channel partners insurance landscape.

        30th November 2016

      • Banks To Offer Pension Schemes & Insurance To Jan Dhan Account Holders

        In an effort to encourage the transaction habit among Jan Dhan account holders and also make them aware of insurance services, the government plans to urge banks to pursue Pradhan Mantri Jan Dhan Yojana accounts which have seen an increase in deposits and offer financial products & services such as pension schemes and insurance. This move, which has been planned with the objective of providing Jan Dhan account holders with basic financial cover, comes in after the recent government led demonetization drive which has ceased the legal tender of after Rs 500 and Rs 1,000 notes.

        30th November 2016

      • Premium payment due date for life insurance extended by 30 days

        With the recent withdrawal of Rs.500 and Rs.1000 notes, the government has also specified limits on the amount that one can withdraw from banks. As the public faces a cash crunch from these restrictions, the IRDAI has extended the window for premium payment of life insurance policies by 30 days. This provision is for policies that fall due between 8th November and 31st December, 2016.

        All life insurance companies have been requested by the IRDAI to comply to this notice. The move was initiated following RBI’s extension of due date for the repayment of various loans that amounted to Rs.1 crore.

        29th November 2016

      • Now you can buy over-the-counter life insurance from a PoS person

        If you are a first-time insurance buyer looking for a simple product, you can now purchase it from a PoS (Point of Sales) person. You will be assured of a quick and easy sales process as the products sold will not be difficult to understand. For the purchase of complex insurance products such as ULIPs and deferred annuity plans, customers will have to go through the traditional route of approaching the agents.

        As per the guidelines released by the IRDAI, a PoS product will be simple to understand with all its advantages predefined and disclosed upfront. Some of the products that will be sold through this channel include term insurance with or without the return of premium, immediate annuity products, and non participating non linked endowment products. The PoS person will be employed by the insurer or an intermediate entity such as a broker.

        The aim of this initiative is to improve the penetration of insurance in smaller towns.

        25th November 2016

      • 30% Growth Reported From First Year Life Insurance Premium Income

        Life insurance companies have reported that their earnings from first-year premiums have increased by 30%. The data, released by the IRDAI, shows that life insurance companies amassed a total of Rs.87,344 crore for the period April 1st- October 31st 2016 through first year premium collection.

        The premium collection for the previous year for the same period was Rs.66,997 crore, making the increase around 30%.

        The largest contributor to this has been single-premium and group insurance policies. It was seen that regular premium policies, which comprise the chunk of a life insurer’s long term profitability, rose by about 14.4% year-on-year.

        24th November 2016

      • Following Demonetization, Insurers Request IRDAI To Grace Period For Policy Renewal Till Dec 30, 2016

        Reeling under the impact of the demonetization of high-denomination notes which has caused nation-wide inconvenience, life insurance providers have requested IRDAI to extend the grace period applicable for renewal of policies.

        Life Insurance Corporation of India (LIC), the state-owned insurance provider has revised its grace period which will not extended for an additional 22 days. The insurer has also waived penal charges applicable on delayed payments, along with scrapping medical examinations. This means that policyholders who have premium payments due in the grace period between November 9 and 30 will be allowed to make payments before the end of the month without having to give any penal interest. Policy holders will not require to submit a declaration of good health for this period if they have delayed in making their renewal premium payment.

        Insurers across India have asked the IRDAI to extend the grace period for policy renewal in order to provide some relief to policyholders who are due to make payments on their policies despite a serious cash crunch and widespread unavailability of the new high-denomination notes at post-offices, banks and ATMs.

        Normally, the grace period provided under life insurance policies for payment of premium is between 15 to 30 days, depending on the frequency of payments - quarterly, half-yearly or yearly.

        23rd November 2016

      • HDFC Standard Life and Max Financial Services to take up concerns over merger with IRDA

        HDFC Standard Life and Max Financial Services will be submitting their justification to the IRDA regarding the concerns they had raised over the merger of the two companies. The main concern was that the model for merger was not in alliance with Section 35 of the India Insurance Act. The transfer of liability from Max Financial Services into the merged company was also cited as an issue by the IRDA.

        After the merger, a listed insurance company was proposed to be created. Following this, the plan was to demerge the insurance business and then merge that part with HDFC Standard Life Insurance Company. The listed company minus the insurance vertical was to be combined with Max India.

        The meeting with IRDA was planned primarily to identify the changes that should be incorporated into the merger to receive an approval.

        22nd November 2016

      • SBI Life Insurance observes 5% hike in net profit

        SBI Life Insurance has announced that they have seen a 5% growth in their net profits in the first half of this financial year. The current figures stand at Rs.428.17 crore, while it was reported to be Rs.407.98 crore during the same period last year. The new business premium of the company also rose by 77% to stand at Rs.4,644 crore during the April-September period. Additionally, the renewal premium rose by 26% to touch Rs.3,715 crore during H1.

        The company’s operating expenses to GWP went down by 16% during the first half of this financial year. The AUM also rose to Rs.87,784 crore during this period, as opposed to Rs.74,554 crore during the same time last year.

        21st November 2016

      • Growth in Profit After Tax for SBI Life Insurance

        According to recent report, the Profit After Tax (PAT) for SBI life insurance has increased by 4.94%. The current PAT is Rs.428.17 crore. SBI Life’s Asset Under Management also increased from Rs.74,554 crore to Rs.87,784 crore. The same trend can be observed in new business premium which increased from Rs.2,626 crore to Rs.4,644 crore. There has been a growth of 26% in the collection of renewal premiums. According to Arijit Basu(CEO), improved performance by the distribution channels have led to this growth. There has also been a growth of 54% in the Individual New Business Premium.

        18th November 2016

      • Max Life Insurance Launches InstaClaim

        In an effort to make the claim approval process easier, Max Life Insurance has introduced a new service called as ‘InstaClaim’. With the help of this service, eligible customers can get their claims approved within one day. According to Rajesh Sud (Managing Director, Max Life Insurance), this initiative was taken to make the claim approval process faster, transparent and smooth. However, this service will be applicable for only those cases where the claim amount is less than Rs.25 lakh. It is mandatory to submit the required documents by 3 pm on any of the working days.

        18th November 2016

      • SBI Life Insurance to host its IPO within 2 years

        SBI Life Insurance, subsidiary and the insurance arm of the State Bank of India group, reportedly plan for an IPO in the coming 18 to 24 months.

        Although, the talk has been happening for the last year or so, a concrete decision has only been arrived upon now. To make this happen, SBI is expected to complete divesting 5% of its Life Insurance business by January 2017.

        This life insurance company is basically a partnership between SBI and BNP Paribas Cardif. By deciding on the IPO, SBI Life will join ICICI Prudential as the second insurance company to take the IPO route to raise money. Reportedly, ICICI raised over Rs.6000 crore with their IPO.

        The move has been decided upon in order to bring in more public investors into the fray.

        17th November 2016

      • HDFC and Max Life Insurance company merger halted comes to a halt

        In one of the biggest news related to the insurance industry, a suspected merger between HDFC Life and Max Life Insurance Company Limited (MLIC) has come to a sudden halt.

        This happened because IRDA, the insurance regulatory authority of India posed a few reservations pertaining to the merger.

        The two companies, however, have said that they will address the issue and clarify the matter with the regulator. Both HDFC Life and MLIC on September 21 to get an in-principle agreement from IRDA. But the regulator said that the deal cannot happen in the current form.

        Main reason for the halt is that Max India was looking to merge Max Life Insurance with Max Financial Services and then the demerge the insurance division to transfer to HDFC Life.

        No IRDA officials were available for comment on this issue.

        17th November 2016

      • SBI Looking to Sell Percentage in Life Insurance Arm

        The State Bank of India (SBI) is looking at selling a 5% stake in its life insurance arm, sources have said. The bank is approaching sovereign wealth funds and investors with the aim of selling up to 5% of SBI Life to gain capital before their scheduled IPO.

        SBI Life plans to be a listed company by the next year, which many believe is the reason for the disinvestment. The bank, however, has denied any IPO in the near future. The bank has stated that there is interest from Middle East funds as well as sovereign wealth funds like GIC.

        The deal would enable SBI to raise close to Rs.2,000 crore through the 5% disinvestment at its current valuation of Rs.40,000 crore.

        14th November 2016

      • Canara HSBC Oriental Bank of Commerce Insurance Company launches new ULIP

        The newest insurance company in the block, Canara HSBC Oriental Bank of Commerce Life Insurance has launched a unit-linked insurance plan specifically for High Networth Individuals (HNI). This plan, as the CEO said, is called the Platinum Plus Plan and has been introduced to fulfil customers’’ dual goal of security and investment at the same time.

        Anuj Mathur, the CEO, continued that this plan helps the company cater to a diverse range of people with varying payscales, risk, and needs. He also suggested that the company will work towards coming up with more such products which take care of a customer's’ multiple needs through a single investment. The plan will provide a favourable investment performance with the help of lower charges, wealth boosters, and loyalty additions.

        9th November 2016

      • SBI Life Insurance offers support to Red Cross Blood Bank

        In recent reports circling around Bhubaneswar it is being said that SBI Life Insurance has officially extended a lending hand towards Red Cross Blood Bank. As part of the firm’s CSR program, SBI Life has provided an ambulance to help the reach more people and also to ease the transportation woes. Executive Director of SBI Life Insurance, Mr. M Anand was present at the occasion where he presented the keys of the ambulance to Dr. Sanjay Ray, Chief Medical Officer of the blood bank.

        Speaking after the ceremony, Mr. Anand said that Red Cross lacks modern amenities which enable them to reach more people and that an ambulance was one of them. He also said that he hopes the blood bank reaches larger masses and assist them with their medical issues.

        8th November 2016

      • Rise in Bajaj Finserv’s Earnings

        Due to great performance of the general insurance business, the profits for Bajaj Finserv has increased by 30.5%. There has also been a rise of 42% in gross written premium. The current value for gross written premium is Rs.2,179 crore. However in the case of Bajaj Allianz Life Insurance, there has been a drop in its net profit. The consumer business have increased by 30%. There has also been some talks of Allianz separating from the Bajaj Group. Both the companies have not yet confirmed this news.

        3rd November 2016

      • September sees an 86% hike in non-life insurance premiums

        Non-life insurance providers have witnessed an 86.2% rise in their gross premiums for the month of September, this financial year. The hike has propelled the overall premium value to Rs. 14,950 crore. The premium collected for the same month during the last financial year was Rs. 8,029.62. As per IRDAI data, public insurance companies are seen to have taken Rs. 9,164.10 crore whereas private insurers garnered the remaining Rs 5,785.90 crore.

        Among the public non-life insurers, the premium of United India Insurance grew by 105.3% to stand at Rs. 1,796.72 crore, whereas that of Oriental Insurance rose by 78.5%. National Insurance Company saw a premium growth of 8.4% and the premium of New India Insurance grew by 27.6%.

        Among the private players, HDFC Ergo’s premium jumped more than 3 times to stand at 976.37 crore. ICICI Lombard saw a premium growth of 58.3% and the premium of Bajaj Allianz rose by 62.2%. Figures for Tata-AIG increased by more than two times to reach Rs. 494.19 crore.

        ECGC and AIC, the specialised PSU non-life insurers garnered Rs. 3,537.40 crore as premium during September 2016.

        2nd November 2016

      • Sundaram Finance announces merger of SIBS and LGFS

        Sundaram Finance Ltd. have decided to merge its fully-owned insurance subsidiary Sundaram Insurance Broking Services Ltd. (SIBS) with its other subsidiary LGF Services Ltd. T.T. Srinivasaraghavan, Managing Director of SFL mentioned that SIBS has been dormant for a while, and it was hence amalgamated with LGFS.

        LGFS is involved in the marketing and distribution activities of financial savings, insurance, investment and loan products. SIBS is engaged in financial intermediation, except in the areas of pension and insurance.

        2nd November 2016

      • PFI raises its stake in DPLI to 49%

        Prudential Financial Inc. declared that it has raised stakes in DHFL Pramerica Life Insurance Company (DPLI) from 26% to 49%. However, they have not disclosed the deal amount.

        As per the agreement, PIIH which is a subsidiary of PFI has increased the stake to reach the maximum authorised cap of 49%. Through this move, PFI attempts to extend its life insurance partnership with DPLI.

        Jan van den Berg, regional president of PFI, mentioned that DPLI has been instrumental in offering protection to families who are covered by life insurance in India. He also stated that PFI is looking for continued growth in the domain, and would be dedicated to the development of the collective venture.

        27th October 2016

      • New Disclosure Norms for the Listed Insurance Companies

        After consultation with Insurance Regulatory and Development Authority of India(IRDAI), market regulator Sebi has come out with certain disclosure norms for the listed insurance companies. According to Sebi, all the listed insurance companies will have to follow the same format as given by IRDAI while submitting the disclosures. For newspaper publishing purpose, the company will have to follow the format which is given by Sebi.

        26th October 2016

      • Gartner Advises Insurance Firms to Investigate Insurtechs

        According to Gartner, the insurance firms should increase their market insight on insurtechs to complement their digital strategies. Juergen Weiss said that insurtechs will play a huge role in accelerating innovation in the industries. Keeping this reason in mind, Weiss has advised the CIOs to examine different areas which are at par with the focus areas of insurtechs. They can also come up with different investments. Recent data reveals that around 60% of insurtechs have been launched in the last 3 years. However, the CIOs are still lagging behind as far as their digital strategies are concerned. Therefore, the insurers should come forward and grab the opportunities provided by insurtechs through Partner, Purchase, Invest or Acquire etc.

        26th October 2016

      • Max Life Insurance Predicts a Market Growth of 10-15 %

        Max life insurance predicts a market growth of 10 to 15 percent in the next two years. According to Mihir Vohra, the Director and Chief Investment Officer of Max Life insurance, global market trends are expected to leave an impact on the domestic figures for sure. He further added that the Federal Reserve’s decision to increase rates in December is likely to cause instability, yet the market has always provided more than the economy. Vohra asserts that the GDP growth rate of the country will also be determined by contributions from private sector. Speaking on the current market situation, he said that the local market is far more stable than the global market.

        24th October 2016

      • Bajaj Allianz gives an opportunity to customers of lapsed policies

        The private general insurance company Bajaj Allianz on Wednesday announced that they are providing customers an opportunity to revive their lapsed policies. Policy holders of lapsed accounts can apply between 14 October and 30 November to avail this benefit. It is applicable only to life insurance policies. The company also assures the continuation of life cover, bonus and tax benefits after renewal of policies. A similar move by Bajaj Allianz in 2015 had generated revenue worth Rs 95 crore from the revived policy premiums. The first-year premium of the company in Sep 2016 was reported to be Rs 442.70 crores.

        24th October 2016

      • Bajaj Life and Reliance Life key winner and loser in the first half

        The latest reports hitting the news suggest that insurance industry as a whole has seen immense growth over the first half of the 2016-17 financial year.

        In fact, the industry has grown by over 20% courtesy of healthy contributions by both private entities and the entities.

        Among the biggest winners and losers, we have Bajaj Life which grew by a massive 83% during the first half. This the firm achieved by focussing more on ULIPs by enabling rejig of its agency channels.

        Other winners include India First Life (79%), Exide Life, and TATA AIA, which all charted some positive numbers.

        Reliance Life, however, was the biggest loser in this segment as individual APEs went down by over 33% due to its shift from ULIPs to traditional policies. The firm, though, is positive that it will register positive year-on-year growth in the second half when the base effect comes into play.

        The latest trend also suggests that people are gravitating more towards mutual fund and ULIP offering and that they are ready to take the necessary risk to see profitable returns.

        21st October 2016

      • Edelweiss Tokio Life unveils a new online insurance plan

        Edelweiss Tokio Life Insurance introduced a comprehensive online insurance plan which provides life cover and an option to take care of critical illnesses.

        Speaking at the release of the product titled ‘Total Secure+’, the company’s representative said that this policy will continue to offer the death benefit. However, the sum a beneficiary receives would be a reduced amount as the policy includes the sum assured already paid.

        This policy, which is a non-linked and non-participating plan, comes with three different options like Life Cover, Life Cover with Basic Health including seven critical illnesses, and life protection with comprehensive health cover, which comprises of over 35 ailments.

        Edelweiss Tokio is a joint venture between Edelweiss, a diversified Indian financial conglomerate and Tokio Marine, one of the pioneers of Japanese insurance industry. The company was founded in 2011 and has Mr. Deepak Mittal as its chief executive.

        20th October 2016

      • Good news for Life Insurance industry as growth hits a new high

        Life Insurance industry in the country continued to post some impressive growth number during the second quarter of FY 2016-17 which ended in September.

        According to a report, it is being said that private insurance companies in particular have witnessed a 30% year-on-year growth.

        A report termed the Kotak Institutional Equities Research report, suggested that Life Insurance Corporation (LIC)’s growth was comparatively lower than private players, which stood at 29%.

        Senior officials in the insurance industry are of the impression that most of the growth has been seen due to the rise in equity markets, which means a major contributor for growth are ULIPs.

        The report also suggests that Bajaj Life seen the highest growth (80%) of all the private insurance providing firms in the country.

        Overall, the life insurance industry charted a growth of 20% in Annual Premium Equivalent (APE) during the first half of the 2016-17 financial year.

        20th October 2016

      • 61 Percent Rise in the New Business Premiums of Life Insurers

        Insurance Regulatory and Development Authority (IRDA) has observed a 61 % rise in the new business premiums of Life insurance companies from Sep 2015 to Sep 2016. The present value of total sales of LIC peaked up by 65.3 % when compared to the sales figures of the previous year. The remaining 23 insurers in the country have amassed Rs 5, 649.92 crores, which makes a 23 % rise from the last year’s sales. SBI Life’s new business premium doubled from 2015 while HDFC Standard crossed Rs 897 crores by this year. But the new business premiums of ICICI Prudential Life witnessed a negative trend.

        19th October 2016

      • Bajaj Allianz to come up with an Insurance Cover for Social Media Activities

        In a move to further modernize and enhance the scope of insurance policies, Bajaj Allianz has devised a scheme that will take care of the consequences arising out of the social media activities of individuals. According to the Managing Director of Bajaj Allianz Tapan Singhal, the insurance product will compensate for any of the third party damages arising out an individual’s actions on the web. The idea behind this concept is to insure a person’s social media activities much like the the cyber insurance cover for corporates. The policy will be designed to cover cyber theft, hacking, phishing and the like.

        18th October 2016

      • Centre to soon amend the Employees State Insurance Act

        Employees in the formal sector will soon be able to select health insurance policies from a wide range of products available in the market. Currently under the Employees State Insurance Corp (ESIC) scheme, it is compulsory for all individuals earning above Rs 21,000 to have a health insurance cover. According to sources, the Labour Ministry is expected to come up with a bill for amendment of Employees State Insurance Act 1948. Earlier this year, the finance minister had also proposed an option that allows employees to choose from different health insurance products recognized by the IRDA. The Labour Ministry will recommend Union Cabinet to approve this bill in the next Parliament session to be held in November.

        18th October 2016

      • Bank of Maharashtra Has Renewed Its Tie-up With United India Insurance

        The state-run Bank of Maharashtra (BoM) recently announced that it has renewed its tie-up with United India Insurance Company (UIIC). The corporate agency tie-up between the two companies will now enable customers to purchase any product from the suite of products offered by United India Assurance, at any of 1,896 Bank of Maharashtra branches across India. Customers will be able to buy a variety of insurance products like travel, personal accident, fire, motor, health and marine insurance from any of BoM branches.

        17th October 2016

      • Government Urges LIC To Support Startups with Finances

        The government of India has urged Life Insurance Corporation of India to offer financial support to startups. In addition to investment from pension funds and insurance companies, the government also hopes to see corporate India taking on social responsibility and helping out startup incubators and startups. The secretary of the Department of Industrial Policy and Promotion, Ramesh Abhishek, recently revealed that the money must be leveraged for startups and that state-run LIC manages over Rs.15 lac crore of assets that can be used to support the startup industry and help it find its feet among the bigger players.

        17th October 2016

      • Provident Fund Subscribers Covered under Life Insurance Up To Rs 6 lakh

        Starting Oct 1, all individuals buying new insurance policies will mandatorily be required to open an e-insurance account. For new insurers, the insurer will help facilitate the process, but existing policyholders shall have to get the account opened themselves.

        This regulation has been implemented for providing added convenience to the policyholder. Once the policyholder has fulfilled the KYC requirements individuals can safely store varied insurance policies under one account, retrieving which can become easy and convenient at the time of filing claim. Mr. S V Ramanan, CEO, CAMS Insurance Repositories Services said that over Rs 5,000 crore of maturity claims are simply lying with insurers across the sector due to policyholders having misplaced their policies, which must compulsorily be presented at the time of making a claim.

        The e-insurance arrangement shall also prove to be of great help to safeguard documents during natural disasters, given that applying and obtaining duplicate copies of insurance policy documents can be a task. Also, since duplicating an e-policy is not easy, this will also help keep in check cases of policy related fraud. Not only can policyholders view their policy details on the e-insurance account but will also be able to do much more like view scanned images of proposal forms and terms & conditions of the policy,

        The opening and maintaining of an e-insurance account is completely free of charge for policyholders. This arrangement in turn will allow insurance companies to save on costs of printing and mailing physical insurance documents.

        In order to open an e-insurance account, policy holders must submit an identity proof (PAN or Aadhaar Card), an address proof, their email ID, and their cellphone number.

        13th October 2016

      • P2P Lenders To Offer Insurance Cover To Borrowers

        Peer-to-peer lending platforms like i-lend, MicroGraam, LenDenClub and many others have tied up or are considering to tie-up with insurance providers to provide borrowers with cover against unexpected events like an accident or death, which can disrupt loan repayments. P@P lenders are joining hands with insurers like ICICI Prudential Life Insurance and HDFC Life Insurance to offer these benefits. Currently, the platform consists of about 14,000 borrowers and has disbursed loan claims worth Rs 22 crore till date.

        13th October 2016

      • SBI To Sell 5% Stake in Life Insurance Arm

        SBI (State Bank of India) may be selling a 5% stake in SBI Life Insurance to private equity funds.

        SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardiff, with SBI holding a 74% stake in the company.

        Sources claim the sales are already being negotiated, with the sale projected to net the bank close to Rs.1,950 crore.

        The bank is seeking a valuation almost three times the embedded value of Rs.13,000 crore.

        It is estimated that the sale will take place during the third quarter, but details are still sketchy.

        The reason for the sale is purported to be on account of the life insurer planning to go public. In light of this, it would be similar to the recent ICICI Prudential share sale to private investors before the insurer went public.

        12th October 2016

      • Exide Life Insurance Launches New Heart And Cancer Plan

        Exide Life Insurance has launched a new policy that offers benefits for heart conditions and cancer.

        Called the ‘Exide Life Sanjeevani’, the plan provides a fixed lump sum benefit upon a cancer or heart-related conditions. The plan also waives off future premiums upon diagnosis and allows for the claiming of existing health insurance.

        This is in addition to the plan providing double claims as well as tax benefits.

        The plan would enable policyholders who have been diagnosed with heart or cancer-related illnesses to meet the financial costs of their illness.

        12th October 2016

      • IndiaFirst Life Insurance Records Over Rs 10,000 Crore As AUM

        IndiaFirst Life Insurance, a partnership between Andhra Bank, Bank of Baroda and Legal & General (UK), recently hit another milestone after having crossed Asset Under Management (AUM) of Rs10,000 crore, putting their current AUM at Rs. 9061 crores. The insurer recorded a year-on-year growth of 43%, having accumulated over Rs1000 crore towards gross collected premium.

        7th October 2016

      • Aegon Life Insurance Revamps The ‘iTerm’ Online Protection Plan

        Aegon Life Insurance, the forerunners of the online insurance movement have announced the re-launch of their flagship ‘iTerm’ Insurance policy which will now come with advanced features. This comprehensive online protection plan is one of the most affordable plans offered by the insurer which is available at very low premiums, possibly the lowest in the industry. Some of the new features to be included in the plan going forward include additional Life Stage benefit where protection cover can be increased, provision to make monthly, semi-annual and yearly premium payments and increased policy term of 62 years.

        7th October 2016

      • Government Advises Farmers To Pay Premium For Crop Insurance Scheme

        The government has urged farmers in the district of Virudhunagar to pay premiums for crop insurance under the Prime Minister’s Crop Insurance Scheme. Implemented since July 21, the crop insurance scheme has been undertaken by New India Insurance. Mr. A. Sivagnanam, Collector has said that farmers who have taken a crop loan, the premiums will be deducted by the respective bank and paid to the insurance company.

        6th October 2016

      • Online Protection Policy Launched by Edelweiss Tokio Life Insurance

        Edelweiss Tokio Life Insurance Company Limited launched an online plan called Edelweiss Tokio Life – Total Secure+, which offers complete life protection through a life cover in addition to a critical illness cover option. Since the critical illness benefit works as an accelerated benefit instead of as an additional benefit, the policy shall continue with the death benefit. However, it will be reduced to the extent of the critical illness sum assured already paid.

        Total Secure+ from Edelweiss Tokio Life Insurance Company Limited is a non-linked, non-participating term insurance policy that can be availed in three variants: Life Cover, Life Cover with Comprehensive Health Cover covering 35 Critical Illnesses, and Life Cover with Basic Health Cover covering 7 Critical Illnesses.

        4th October 2016

      • Bank Of India Sells 18% Stake In Star Union Dai-Ichi Life Insurance

        Bank of India recently announced having sold 18% of its stake in Star Union Dai-ichi Life Insurance Company Ltd (SUD) to Dai-ichi Life Insurance Company Limited (DILIC). Following this transaction, Bank of India’s shareholding will drop from 48% to 30%, while DILIC’s shareholding will rise to 44% from 26%. Union Bank of India’s shareholding will continue to remain at 26%.

        30th September 2016

      • Composite Merger Plan of Max India Receives Green Signal from Shareholders

        Max India Ltd has announced the expansion of its operations by merging Max financial services with their insurance segment Max Life Insurance Company and HDFC Ltd. The business conglomerate has transferred insurance business from MergeCo (the combined fraction of Max Financial Services and Max Life Insurance) and the same is absorbed by HDFC Standard Life Insurance Company.

        This decision was given a go-ahead by the board members after majority of its shareholders voted in favor of the merger scheme. HDFC Ltd earlier in August had approved the merger with Max India, and the merged entity was mutually agreed to function with the same name, HDFC Life.

        30th September 2016

      • E-insurance Accounts Compulsory For New Policy Buyers

        All individuals employed in the organized sector have a portion of their monthly income directed towards their Employees’ Provident Fund (EPF) account each month. This deduction from the monthly earnings is eligible for tax deduction and also accumulates interest. While the EPF deduction is common knowledge, what many employees may not be aware of is that their monthly EPF contribution also entitles them to a life insurance cover. Known as the Employee Deposit Linked Insurance (EDLI), this insurance cover is provided to PF subscribers and is provided to their nominated heir in the unfortunate event of their demise.

        The EDLI scheme covers all individuals who are PF subscribers and are a part of the organized sector. With the amount of life cover recently hiked, PF subscribers are now insured under a life cover of up to Rs 6 lakh which can be claimed by their nominee or legal heir following their death. In addition to this amount, the nominee can also make a claim of Rs 1.5 lakh or 50% of the balance in the deceased individual’s EPF account, whichever amount is lesser, as bonus. The life cover (caped at Rs 6 lakh) and bonus will be applicable regardless of the employee’s age.

        28th September 2016

      • Ticket Sizes See 20% Increase for Life Insurance

        The life insurance sector has seen an almost 20% jump in ticket sizes for life insurance policies over the past 3 years, with the average ticket size going up to Rs.40,000.

        The higher Sum Assured rates have led to higher premiums, resulting in the rise in ticket prices.

        The type of plans also play a role in the increasing ticket prices, with ULIPs generally attracting higher ticket prices due to their higher returns.

        Additional riders and add-ons to basic policies are also the norm now, leading to an increase in the Sum Assured.

        This increase has been seen in offline as well as online plans, with the higher ticket price due to the desire for enhanced protection for online plans. For offline plans, need-based sales increases resulted in premiums and thus ticket sales increasing.

        This trend has been in sharp contrast to the earlier slashing of online insurance plans, where premiums dropped to as low as Rs.7000 annually. However, the online sector has staged a recovery and premiums are now at par with offline plans.

        26th September 2016

      • E-Insurance To Increase Insurance Process Efficiency

        With the IRDAI making issuance of e-insurance policies mandatory from October 1st, 2016, there will be a marked shift in the way insurers process policies. Motor and travel insurance policies will have to be issued electronically from October.

        At present, customers can choose whether they wish to have their policies in electronic or hard copy, so the process is not completely digital.

        However, the benefits offered by e-insurance are fast catching the eye of customers, as these policies offer easier storage and a hassle-free experience. The claims process will also be linked, making it more convenient for customers.

        Since operating costs will be reduced, customers will benefit from lower premiums.

        However, the industry still has a long way to go as far as preparedness is concerned, with many still in the process of linking their insurance repositories in order to issue e-policies.

        With only motor and travel insurance policies to be issued digitally, the vast customer base of life insurance and health insurance still remain.

        26th September 2016

      • Life Insurers Seek ‘Merit Rate’ Under GST Regime

        The Life Insurers Council held a meeting to discuss the possible implications of the Goods and Services Tax (GST) on the sector.

        The Council decided to urge the government to implement a ‘merit rate’ instead of the prevailing standard rate.

        The Council took this resolution to offset the possibility of an increase in insurance rates due to the GST being fixed at 18%.

        The initial demand was for a zero percent tax for life insurance, but this has been revised to a merit rate, with the life insurance industry submitting their suggestions to the Finance Ministry by the end of September.

        The sector fears that if the standard rate is levied, insurance will become more expensive which will serve as deterrent to more individuals from buying policies, especially among vulnerable sectors that would benefit the most from coverage.

        22nd September 2016

      • ‘Smart Junior Plan’ New Addition to Canara HSBC Life Insurance Portfolio

        Canara HSBC Oriental Bank of Commerce Life Insurance have introduced the ‘Smart Junior Plan’, a new children’s insurance policy to meet the education needs and safeguard the child’s future in the event of the insured’s (parent’s) untimely death.

        The plan provides a guaranteed 20% of the Sum Assured each year for the last 5 years of the policy term, which can be used towards funding the child’s education.

        The policy also offers policyholders the chance to customize the policy term based on individual savings and education plans.

        Flexible premium payment options and tax benefits add to the overall benefits associated with this plan.

        In the event of the life insured’s untimely death, the nominee stands to receive a lump sum payment and waiver of premium payment till the policy matures.

        21st September 2016

      • IRDAI To Issue Life Insurance Point of Sale Regulations

        The Insurance Regulatory and Development Authority of India (IRDAI) will be announcing norms to govern Point of Sale (PoS) transactions for life insurance. The move is touted to increase growth in the sector and improve insurance penetration.

        IRDAI had announced norms governing PoS transactions in October 2015 for both life and non-life insurers. As per the guidelines, PoS providers are permitted to sell insurance products that don’t require underwriting in the health and non-life sectors.

        As per the new norms, PoS distributors will be able to sell certain life insurance products as well.

        The proposal has met with enthusiasm by the life insurance industry. This move will help simplify the insurance distribution network and ensure better reach.

        21st September 2016

      • IRDAI Considers Two Factor Authorisation for e-Insurance

        The Insurance Regulatory and Development Authority of India (IRDAI) is considering two factor authorisation for e-insurance products in an effort to increase security.

        At present, motor and personal accident policies can be purchased through single factor authentication.

        As part of the two factor authorisation, IRDAI has advised insurers to issue One Time Passwords (OTPs) to individuals buying policies in addition to digital and electronic signatures. To facilitate this, IRDAI will be amending the existing regulations concerning e-insurance.

        This step will help prevent insurance fraud and make online insurance more credible, according to the insurance regulator.

        Current regulations stipulate that e-insurance policies can be issued only after digital signature or Aadhaar verification, which is a cumbersome process. In order to do away with this, IRDAI has come up with the two factor authorisation system where the individual verifies the information through an OTP sent to his registered mobile number.

        16th September 2016

      • IndiaFirst Life Records 28% Increase in Group Policies

        IndiaFirst Life Insurance, the private insurance company, has recorded an impressive year-on-year growth of 28%, which is a whole 10% more than the industry average of 18%. The Life Insurance Council website posted its results for the second quarter of 2016, and the top players in the market include ICICI Prudential, Bajaj Allianz and Star Union Dai-Chi, who recorded a decline of 38%, 20% and 56% respectively. IndiaFirst, on the other hand, achieved a YTD growth of 46% year-on-year, with the total business adding up to Rs.94.7 crore as on the 31st of July, 2016.

        14th September 2016

      • HDFC and Max Life Wait for CCI Approval

        HDFC Standard Life Insurance and Max Life Insurance now await the approval of the CCI (Competition Commission of India) following their merger to become one of the biggest insurance amalgamations in the world. Max India revealed in a statement recently that it had filed a joint application, seeking approval from the CCI.

        During a meeting that was conducted on the 8th of August, HDFC Standard Life Insurance Company’s board of directors, and representatives of Max Financial Services and Max India approved the entry into definitive agreements for the merger of business between the aforementioned entities via a composite Scheme of Arrangement.

        The exchange ratio and relative valuation of Max Life and HDFC Life is expected to be 31% and 69% respectively.

        14th September 2016

      • Insurance Portability To Become A Reality?

        The chief of the IRDAI (Insurance Regulatory and Development Authority of India) hinted that insurance portability could be a possibility in the near future. While he stated that IRDAI has not initiated the move, he encouraged debate on the subject.

        Currently, health insurance policies can be ported as standardization is required for portability to take place.

        Insurance products currently have a number of clauses, making it difficult to set up a road map for portability. Digitization of policies would be an initial step, following which the prospect could be considered.

        This move would benefit the insurance sector and enable it to grow. At present, estimates peg growth in the life insurance sector at around 15%, while the health insurance sector has seen close to 31% growth.

        13th September 2016

      • Marathwada Workers To Receive LIC Cover

        The Marathwada Labour Union has sought life insurance cover for its workers under the Central government’s Aam Aadmi Insurance Scheme. The scheme, which is being implemented by the government as well as the Life Insurance Corporation of India (LIC), is targeted at the working class, with premiums fixed at Rs.200 per person, to be paid by the state and central governments. Under this scheme, children of porters will receive a scholarship of Rs.100 per month, while nominees will receive Rs.30,000 in case of the insured’s natural death. In the event of the insured’ accidental death, the nominees would receive Rs.75,000.

        Under the scheme, the porters will have to open bank accounts to avail the benefits of the insurance cover and scholarships for their children.

        The Labour Union has also appealed to the authorities to increase the scholarship amount to Rs.1,000 per month.

        8th September 2016

      • Move to Increase Insurance Cover in India: FM

        At a function to felicitate the Life Insurance Corporation (LIC) on its 70th anniversary, the Finance Minister raised the need to bolster the country’s social security to enable the country to be an insured and pensioned society.

        With the growth seen in different sectors of the economy, he expressed a hope that India would soon have a social security apparatus providing insurance and other benefits to all citizens.

        At the function, he spoke of the need for low cost insurance options and the urgent need to extend such coverage to the agricultural sector as well as providing low cost medical insurance to all Indians.

        The government is slowly taking steps towards realising this objective through a number of upcoming schemes and initiatives.

        6th September 2016

      • Cancer Shield Plan Launched by Birla

        Birla Sun Life Insurance has launched a cancer shield plan, aimed at providing financial assistance and support in the event the policyholder contracts cancer.

        The rising incidence of cancer diagnosis in the Indian populace has prompted the life insurance company to introduce the product, which will provide protection and cover for both initial as well as later stages of the disease. The plan will provide the policyholder with a lump sum upon diagnosis towards meeting the cost of treatment and palliative care.

        2nd September 2016

      • Max Life Launches New Education Plan

        Max Life Future Genius Education Plan is a new insurance plan launched by Max Life Insurance to enable parents to save smartly for their child’s education. An education in today’s world can be an expensive affair and it’s best to think ahead. The plan is a comprehensive non-linked participating policy. The plan is designed to meet the educational needs of the child even in the event something unfortunate happens. The plan comes with flexibility that can be tailored to suit the needs of the parents and the child. Based on the child’s graduation, the policy term can be chosen between the ages of 13 years and 21 years. Tax benefits are applicable on the policy as per the prevailing tax laws. To be eligible for this plan, the buyer must be between the age of 21 and 45 years old. Rider policies are available to enhance the benefits of this plan.

        1st September 2016

      • Increase in Insurance Cover for Serving Army Personnel

        The insurance cover for officers of the APS (Army Postal Corps), Military Nursing Service officers as well as re-employed officers have been increased to Rs.75 lakh from Rs.60 lakh. There has been an increase in insurance cover from Rs.30 lakh to Rs.37.5 lakh for JCOs (Junior Commissioned Officers) and ORs (Other Ranks), including JCOs with honorary commission, APS and Defence Service Corps.

        The AGIF (Army Group Insurance Fund) has also capped the disability benefit for officers at Rs.25 lakh and Rs.12.5 lakh for JCOs or ORs with completely disability. However, army personnel who have asked to leave the military service due to drug addiction, alcoholism, and diseases which were acquired before joining service, will be ineligible for any disability pension.

        1st September 2016

      • 30% Projected Growth for Canara HSBC OBC Life Insurance

        The Canara HSBC Oriental Bank of Commerce Life Insurance is slated to grow at over 30% this year, according to estimates.

        The increase in growth is due to the company focussing on online growth and their targeting of Tier II and Tier III city customers.

        The growth percentage is even greater considering the overall sector posted growth of around 15% for the year 2015-16.

        The company, which is a joint venture between HSBC Bank, Canara Bank and Oriental Bank of Commerce, has stated that it plans to target the technology rich Tier II and Tier III cities, where smartphone use is slated to reach over 770 million users.

        The company is also hopeful that the changes being brought about in life insurance in terms of the introduction of regulations for e-insurance will lead to strong growth.

        30th August 2016

      • PNB Metlife Launches New Online ULIP Plan

        In a first of its kind for PNB Metlife, it has launched a new ULIP (Unit-Linked Insurance Plan) which can be purchased and managed online. Christened Metlife Mera Wealth Plan, this life insurance plan comes with multiple options to help insured members reap long-term monetary benefits along with protection for life.

        This ULIP comes with multiple premium payment options and offers loyalty additions every year from the 6th policy year onwards. The loyalty bonus continues until the time of maturity. It also provides further flexibility for policyholders to choose from self-managed or systematic transfer on the basis of their personal investment goals and risk appetite. The Mera Wealth Plan helps customers in planning long-term investment goals such as education, housing, retirement, etc.

        25th August 2016

      • Insurance to Become Innovation Hotbed With New E-Commerce Norms

        The insurance sector in India is likely to see a boost in innovation in the sector, especially with the advent of e-commerce markets.

        •Estimates project a 20% jump in sales through such platforms, hitting almost Rs.20,000 crore by 2020. The market has already seen exponential growth, from a mere $3.8 billion in 2009 to $38 billion (projected) by the end of 2016.

        •Fuelling this surge in sales are life insurance products, which have received a new lease on life through online policy sales, which are priced lower than the traditional term insurance policies.

        •An increase in travel insurance and motor insurance policies being purchased online has also contributed to the growth in the sector.

        Digital platforms and mobile applications are seen as the future of the insurance sector, with IRDA recently releasing guidelines regarding sale of insurance products online. This will result in giving a boost to already soaring online insurance sales and also serving to regulate the market.

        24th August 2016

      • Exide Life Partners with SVC Co-op Bank For Bancassurance Agreement

        Exide Life Insurance recently tied-up SVC Co-operative Bank for a bancassurance agreement. As a part of the deal, Exide Life insurance will gain access to 193 branches of SVC bank, which serve over 8 lakh customers. In return, SVC Bank will benefit from the technology, product innovation, and best in class training which is offered by Exide Life Insurance.

        Suhas N Sahakari, Managing Director of SVC Co-operative Bank said that life insurance is now considered not only as a form of protection but also as a form of investment. Speaking on the tie-up with Exide Life Insurance, he mentioned that the bank’s customers will definitely benefit from the added life insurance options which will now be available to them.

        22nd August 2016

      • Bank Of India Aims To Up Targets By Rs 500 Cr From Asset Sale

        In efforts to expand its capital base, the state-run Bank of India has managed to raise Rs 540 crore by monetizing its non-core assets. The company is planning to further raise a similar amount during the remainder of the year. Bank of India had previously raised Rs 540 crore in June by selling an 18% stake in a joint life insurance venture with Dai-ichi and Union Bank of India to the Japanese firm.

        22nd August 2016

      • PM Farm Insurance faces skepticism in Bihar

        Prime Minister Narendra Modi’s highly anticipated Farm Insurance Scheme has met a block in Bihar, where Nitish Kumar has pointed out numerous issues with it including the way it is named (‘Pradhan Mantri Fasal Bima Yojana’) and the real recipients. They claim that the scheme is intended to the benefits of the insurance firms rather than the agricultural workers. A chain of interactions between of Mr. Alok Kumar Mehta (Bihar Co-operative Minister) and Union Minister shows that they are unable to reach a decision. The PMFBY is introduced to offer life insurance for farmers at a lesser premium and to assist them to keep up farming even if the crop is damaged (due to natural or other related disasters).

        19th August 2016

      • Life Insurance Sector Registers 23 % Growth In First 4 Months Of FY17

        The life insurance sector has reportedly registered positive growth in first four months of FY17. The growth can be attributed to new business premium. Data released from the Life Insurance Council indicates that there was a rise of 22.66% in new business premium from life insurance in the first four months of FY17, as opposed to the corresponding time last year.

        This growth was headed by LIC, which registered a rise of 24.15% in new business premium in the months of April-July. Private insurers, on the other hand, registered a growth of 18.69% from new business premium, which now stands at an estimated Rs 11,914.86 crore. this growth was majorly attributed to participation in the ULIPs or unit-linked insurance plans.

        19th August 2016

      • ING to sell their South Korean life insurance arm

        MBK Partners, a private equity company had attained a cent percent stake in ING’s life insurance arm for KRW1.84trn from the Dutch Insurance Group. The last day to sell the company has been postponed eliciting rumor that MBK might simply back out from the sale. Investment leader JD Capital (based in Hong Kong) and two Chinese companies, namely, Fosun International and Taiping Insurance Group are apparently contemplating purchasing ING to expend their reach to Korean financial market.

        18th August 2016

      • INR 10 lacs insurance for sewerage labors proposed

        The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is planning to offer life insurance cover for INR 10 lacs in case something unfortunate happened resulting in grave injury or demise. This was announced by Mr. M Dana Kishore, the MD of HMWS&SB as the terrible losses of four workers in a manhole in Madhapur the previous week. They also held a sensitization training programme for the workers on precautions and correct use of equipment.

        18th August 2016

      • CEO of Oriental Bank of Commerce Reveals that there are No Plans to Raise Stake or Sell

        The CEO and Managing Director of Oriental Bank of Commerce, Animesh Chauhan, recently revealed that the bank has no intention of raising stake or selling its life insurance joint venture CHOICE (Canara HSBC Oriental Bank of Commerce Life Insurance Company). At the moment, Oriental Bank of Commerce holds a 23% stake in CHOICE. While HSBC holds 26% stake in the joint venture, Canara Bank has 51%. Chauhan stated that there is no question of altering or selling the company’s stake at the moment. He also revealed that the joint venture is performing quite well and is meeting the expectations set by the board.

        17th August 2016

      • Net Profits for First Quarter Increases 6% for SBI Life Insurance

        The first quarter of the financial year 2016-17 was a promising one for SBI Life Insurance as it recorded a growth of 52.73% in its gross total premium. Last week, the company reported that the net profit of the company grew by 6.43% to Rs.215 crore for the first quarter which ended on the 30th of June, 2016. SBI Life also released a statement according to which its net profit was Rs.202 crore during the first quarter of the previous financial year. The gross total premium of the company for the first quarter of FY 2016-17 increased by 52.73% to Rs.3,383, making it a significant rise in comparison with the Rs.2,215 recorded in the corresponding quarter of the previous financial year.

        17th August 2016

      • New close ended scheme introduced by Birla Sun Life

        Birla Sun Life Mutual Fund recently launched a close ended scheme designed to meet the requirements of certain investors. Titled “Birla Sun Life Fixed Term Plan-Series NR (1099 days)”, it is managed by Kaustubh Gupta, Sunaina da Cunha and Prasad Dhonde. The new fund offer was open from August 4th to 8th, with the scheme coming with nil entry and exit load. Investors can subscribe a minimum of Rs. 5,000, increasing their investment in multiples of Rs. 10. The scheme aims to offer returns through investments in fixed income securities which have a maturity date which coincides with the scheme duration. It will be benchmarked against the CRISIL Composite Bond Fund Index.

        16th August 2016

      • Insurance policy launched by Corporation Bank

        The CEO & MD of Corporation Bank, Mr. Jai Kumar Garg, unveiled their group credit life insurance scheme’ in partnership with LIC (Life Insurance Corp) in Mangalore on 4th August 2016. As per the bank’s official statement to the press, this scheme can be purchased by their term loan customers (aged between 18 and 60). The premium has to be paid only once. The loan can be covered under this scheme in the unfortunate event of loan applicant’s demise. Retail loans and loans for farming also come under this. As of now, this scheme is only available in Mangalore zone but will soon introduced in every Corp branch in the country.

        8th August 2016

      • HSBC, OBC Life & Canara Bank Join Hands TO Launch iNVESTSHIELD plan

        Oriental Bank of Commerce (OBC), HSBC and Canara Bank have come together to launch a brand new linked insurance plan known as 'iNVESTSHIELD' . this plan has been introduced with the aim of not only providing protection but also help an individual meet his or her present and future financial needs.

        The iNVESTSHIELD plan is an online linked plan which customers with the ‘Premium Funding’ option. Under this option, in the unfortunate event of the passing away of the life insured, not only will the policy provide the advantage of immediate benefit payout (calculated as 105% of the premium paid or Sum Assured, whichever is higher), the remaining premiums for the remainder of the policy term will be funded by the insurer. The fund value will be paid upon maturity. Additionally, based on their risk appetite, customers can choose between multiple funds and switch between systematic investments and funds.

        5th August 2016

      • Tata AIA Life announces Several Initiatives Towards Improving Customer Experience

        Tata AIA Life Pvt. Ltd., one of India’s foremost insurance organization, has introduced several initiatives to improve customer experience and bring about greater customer satisfaction. The company has come up with several initiatives to strengthen its motto of 'Making good happen' while also providing 'Ease of doing business' for its customers.

        As a part of these initiatives, the company has released a special charter which lists out pre-defined timelines regarding various processes like address proposal, service request, payout, claim settlement, grievance Redressal, etc.

        The initiatives undertaken by the insurer have begun to yield results already. This is especially evident in the claim settlement area where the company has recorded a high individual claim settlement ratio of 96.8% fir the fiscal o 2015-16, which is also one of the highest to be recorded by any player in the private insurance segment.

        4th August 2016

      • Axis Bank Partners With LIC To Sign Largest Bancassurance Deal

        LIC (Life Insurance Corporation) has recently entered into an agreement with Axis Bank, one of the nation’s leading banking institution, to sign one of the biggest bancassurance deals. As a part of the agreement, Axis bank will now make LIC’s products available to it’s own customers.

        Following the liberalization of norms directing sales of insurance products by banks, called Bancassurance, the Axis-LIC deal is one of the biggest tie-ups in this regard. Bancassurance, also known as channel sales’, is basically a model under which an insurance company partners with a bank to sell its products to a wider audience. a model where the insurance company join hands with a bank in order to sell its products.

        In the initial stages of the deal, Axis Bank will distribute life insurance products offered by LIC. Sale of these products will be carried out at all Axis Bank branches located in Bangalore, West Bengal and Haryana – Panchkula. The bank will also provide after sales facilities like premium collection and renewal of policies.

        3rd August 2016

      • Bareilly becomes home to SBI’s digital branch

        Banks across the country are working towards incorporating technology into their functioning, with digitisation set to improve the way we bank. State Bank of India, the largest lender in the country took a step towards this by launching its first digital branch in Bareilly. Titled ‘sbiINTOUCH’, these branches will provide banking solutions to the modern, techno-savvy customer, with individuals having the ability to open accounts, print personalised debit cards and seek banking advice via video-conferencing.

        Mr. Sunil Kumar Wadera, the Deputy General Manager of Bareilly region inaugurated the branch. A manager and customer reps will be present at the branch, guiding customers on how to use the digital interface and other facilities available. Individuals can open an account in under 10 minutes, thanks to an interactive ‘Account Opening Kiosk’, with another machine to print customised debit cards also on the anvil. SBI currently has 10 digital branches in Uttar Pradesh, with the bank looking to expand these branches to provide unique digital banking solutions to customers. In addition to banking products, a video conference room will help customers get an insight on products like life insurance, mutual funds, etc.

        31st July 2016

      • 27% Rise In HDFC’s Net Profit After Sale of Investments

        India’s largest mortgage lender HDFC (Housing Development Finance Corp. Ltd.) has made 27% higher profit owing to its one-time gains from its investments’ sale. A profit of Rs.867.52 crore was reported by HDFC during the quarter ending in June. Out of this, sale of its 22.9% stake in the general insurance arm HDFC ERGO to partner International AG generated a profit of Rs.725 crore.

        HDFC’s listed subsidiaries generated unrealised gains totalling up to Rs.64,375 crore. 33% of the consolidated profit of the company came from the subsidiaries of HDFC. Within a year, the revenue of the company went up by 15%, from Rs.14,726.18 to Rs.17.012 crore. HDFC reported a decent 7.8% rise in the net interest income to Rs.2,283,05 crore in the June quarter.

        30th July 2016

      • 4% Fall in Bajaj Finserv Shares Followed by Q1’s Missed Estimates

        Bajaj Finserv, which deals with financial services such as life insurance, Bajaj Finserv and general insurance, made a total income of Rs.2,912 crore, out of which the net profit reported was Rs.538 crore.

        The poor performance of the company’s general insurance business was a result of the company’s overall ratings. According to Bajaj Finserv, there was a 9% fall in the general insurance arm’s profit, before its tax deduction, at Rs.196 crore. The company had recorded a total income of Rs.2,212 crore with a net profit of Rs.467 crore in the previous financial year.

        29th July 2016

      • SBI Life launches 'Smart Privilege', a ULIP For HNIs

        The nation’s largest public sector bank, State Bank Of India, recently launched a new ULIP product specially designed for HNIs (high net worth individuals). Smart Privilege is a focused market linked life insurance plan which was launched by the insurance arm of SBI known as SBI Insurance.

        Smart Privilege is an insurance product which fulfils a dual purpose of allowing the investor to not only grow their wealth via investment but also provides life insurance cover. Customers can choose from a range of 8 choice funds in which to invest. Additionally, they have the flexibility to invest in a combination of funds as per their choice, along with which they have the flexibility to switch between funds and redirect their premiums any number of times during the term of the plan.

        For the Regular & Limited Premium Plans, the minimum age of eligibility of 8 years, while for the Single Premium Plan, the minimum eligible age is 13 years. the maximum eligibility age for the plans is fixed at 55 years. Regular and Limited Premium policies can be taken for a term of 10 years to 30 years, while the Single Premium Policy can be taken between a term of 5 years to 30 years. Premium payment for these plans can be done in a single lump sum or on a monthly, quarterly, half yearly or yearly basis.

        28th July 2016

      • Reliance Nippon Looking To Expand, Eyeing Tie-ups With Banks

        Reliance Nippon Life Insurance, a partnership between India’s Reliance Capital and Nippon Life Insurance, Japan, recently announced that it is looking to partner with banks as a part of its expansion activities. Mr. Manoranjan Sahoo, Chief Agency Officer at Reliance Nippon made the announcement, during which he said that banks have been granted approval by IRDAI to tie-up with insurance companies. He also mentioned that that the company is planning to appoint about 30,000 agents out of which 4,000 agents will be appointed in Tamil Nadu in the current fiscal year.

        27th July 2016

      • New Business Premium Contributes To 33% Growth of Life Insurance Industry

        In the very first quarter of the financial year, the Indian life insurance industry has recorded robust growth which has been driven by new business premium. Going with the data released by the Life Insurance Council, new business premium has risen by approximately 33.2%, for the quarter which ended on June 30, 2016. As compared to Rs 23,568.14 crore which was recorded under new business premium, the same has risen to Rs 31,392.23 crore in the first quarter of the current financial year.

        Life Insurance Corporation of India, the public sector life insurance company, recorded a growth of 37.53% under the new business premium category during the first quarter of the on-going financial year. The company’s total income from premiums rose from Rs 16,428.23 (during the previous fiscal) to Rs 22,592.22 crore.

        The private sector insurance industry which consists of 23 members recorded a growth in new business premium by 23.23%. Income from new business premium for the first quarter of 2016 was a total of Rs 8,798.34 crore, as compared to the previous year’s new premium earnings of Rs 7,139.91 crore.

        26th July 2016

      • Insurance schemes to be the focus for the Department of Post

        The Postal Department is looking to enroll more workers from unorganised sectors under the Pradhan Mantri Jeevan Jyoti Bima Yojana in Coimbatore. The Department would be focusing on three schemes, namely, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana - life insurance and Pradhan Mantri Suraksha Bima Yojana - accident insurance. A cover of Rs. 2 lakhs would be provided for accident insurance with a premium of Rs. 12, targeting autorickshaw drivers, conductors, state transport drivers and travel agencies. The Department is also planning to target migrant workers in Coimbatore for accident insurance cover. Under life insurance, a cover of Rs. 2 lakhs with a premium of Rs. 330 would be given to unorganised sector workers.

        25th July 2016

      • ICICI Pru Life IPO to be filed soon

        ICICI Prudential Life Insurance, one of the largest private insurance companies in the country is all set to expand its horizon, with the company ready to file an Initial Public Offer (IPO) in the coming weeks. The IPO of its shares is valued at around Rs. 4,700 crore, making it the largest IPO after the Coal India IPO of 2010. ICICI Bank will offer secondary shares through this IPO, with all formalities set in place. The company will approach the Insurance Regulatory and Development Authority of India (IRDAI) to vet the document, post which it will be put in front of the Securities and Exchange Board of India (SEBI) for market regulation.

        The IRDAI will be checking a number of factors before vetting the offer, including the past performance, solvency rate, capital structure, business record, etc. While approval from IRDAI could take up to a month, the SEBI is likely expected to take around 2 or 3 months to clear the IPO. The plan to offer an IPO received the get-go from the board of ICICI Bank in April this year. ICICI Pru has performed consistently over the last few years, amassing a profit of Rs. 1,650 crores in 2015-16, with assets worth Rs. 1,03,939 crore under its management. The company is currently valued at Rs. 32,500 crore, with the new IPO expected to strengthen its position.

        24th July 2016

      • Insurance premiums increase by 33% in first quarter

        The year 2016 has begun on a good note for insurance companies, with data released by the Life Insurance Council indicating a growth of 33% in terms of premiums in the first quarter of FY 2016-2017. Life Insurance Corporation of India (LIC) led the growth in terms of new business premiums, with premiums worth over Rs. 22,594 crore, a growth of around 37.5% when compared to the Q1 of last year. Private companies weren’t far behind in terms of new business premium, with a total of Rs. 8,798 crore received by them, indicating a growth of 23.23%.

        The primary reason behind this strong performance is linked to Unit-Linked Insurance Plans or ULIPs. The overall premium collected by all companies was Rs. 31,392.5 crore for the quarter, up from Rs. 23,568 crore for the same period last year. While the premiums increased, there was a marginal increase in terms of premiums sold, with around 47 lakh policies sold in the current quarter, compared to 46.4 lakh premiums which were sold last year for the same period. Companies like Max Life Insurance, Kotak Mahindra Old Mutual Life Insurance and HDFC Life witnessed growth ranging between 23 and 78% in the quarter, signalling a great beginning to the year.

        23rd July 2016

      • ICICI Pru Life Insurance Company Ltd. Files for the Largest Initial Public Offering

        ICICI Pru Life Insurance Company Ltd. has recently filed for an initial public offering that will be the largest when compared to IPOs in the past 6 years. The initial public offering of shares from ICICI Pru is expected to raise over 745 million dollars. This will mark the highest IPO in India, since the launch of shares from Coal India Limited in 2010. ICICI Prudential Life Insurance Co Ltd offers products such as ULIPs, Term Insurance, Retirement Plans, Money Back Plans, Rural Plans, Group Life Insurance Plans, etc.

        22nd July 2016

      • IndiaFirst Life Insurance Joins Hands With Nainital Bank

        IndiaFirst Life Insurance recently announced that it will be joining hands with Nainital Bank Limited in order to expand its reach for better distribution of its products. IndiaFirst Life insurance is a joint undertaking Andhra Bank, Bank of Baroda and Legal & General (UK).

        While recently making the announcement regarding the partnership, Rushabh Gandhi, Director of Sales & Marketing, IndiaFirst Life Insurance said that the partnership will not only help strengthen the company’s distribution network but also allow them to reach out to a larger customer base and establish a firm footprint in the Northern India region.

        Also speaking on the occasion, Mukesh Sharma, Chairman & CEO , Nainital Bank Limited said that the bank will only stand to benefit from IndiaFirst’s extensive and dedicated product offerings and their illustrious performance record. Together, the partnership will help make complete financial solutions to many more customers.

        21st July 2016

      • ICICI Prudential Life is most preferred private insurer for ULIPs

        Insurance penetration in India has been steadily increasing, with a number of private players entering the fray, offering a host of products. Unit-linked insurance plans or ULIPs account for a major portion of all insurance policies, with competition between companies being fierce. A recent report indicates that ICICI Prudential Life Insurance Company is the most popular private insurer for ULIPs in India, occupying 23.1% of the overall market share. A major reason for this is the fact that ICICI Bank has backed the company, which has given it more credibility and access to individuals who can invest more in ULIPs.

        The company raked in a net profit of Rs. 1,650 crore during FY 2016, a marginal increase compared to FY 2015. The total new business premium accumulated by the company was Rs. 6,765.89 crore, up by over Rs. 1,300 crore when compared to the previous year. SBI Life was the second most popular choice when it came to private insurers, followed by HDFC Life and Max Life.

        20th July 2016

      • Bajaj Finserv Strikes Record High on The Stock Market

        Bajaj Finserv, one of India’s leading financial services company recently hit a record high on the stock market with a rise of 21%, as opposed to the low 5% rise in the Nifty 50 index. Since the past 16 trading sessions, Bajaj Finserv’s stock has overtaken the market and grown by an impressive 21% from Rs 2,078 to Rs 2,511. According to media reports, Bajaj Finserv may possibly buy out Allianz’s stakes in Bajaj Allianz Life, talks for which are on.

        19th July 2016

      • Reliance Nippon Life Insurance adding huge workforce as field agents.

        Reliance Nippon Life Insurance Company has recorded that only 52% (68,000) of its existing 1,30,000 field agents are actively and regularly selling policies physically to customers. In a move directed at expanding their physical presence on the ground, the company plans to hire, train, and deploy at least 30,000 more field agents by the end of this fiscal year.

        The company is clearly taking huge steps directed towards establishing itself as a respectable and dependable insurer in the country, by also announcing a customer-friendly policy change – the company is planning to launch a money-back plan through which customers get guaranteed money back benefits on specific policy anniversaries.

        The company had also reported a loss of Rs.200 crore in the 2015-16 fiscal, following which the Reliance Nippon Life Insurance Company CEO Mr. Anup Rau resigned from his post, leaving the company afloat like a ship without a captain.

        Big changes are on in the Reliance Nipping Life Insurance Company, and experts suggest that it’s a crucial time make or break time for the company.

        18th July 2016

      • Premium collection increases by 7.9% in 2015 : Swiss Re sigma report.

        As the demand for non-life and life insurance products has increased, the premium collection has grown by 7.9% in 2015, according to a Swiss Re sigma report. When compared to the previous year, the increase has been quite high. Life insurance premium collection improved by 7.8% according to the report. Investment-linked products which showed growth via bancassurance channels contributed to the increase. Non-life insurance premiums reported a growth of 8.1%, with contributions mainly from health insurance, motor third party liability premiums and personal accident insurance. Though the study showed that the premium collection has grown, insurance penetration across the country has to still increase.

        17th July 2016

      • New Term Plans launched by Exide Life

        Exide Life recently launched new term plans which come with return of premium to replace its regular term plans. Termed “Exide Life Smart Plan”, this new return of premium plan will provide life cover in addition to assured returns once the policy matures. Available in three variants, it aims to provide multiple options to individuals. The existing regular term plan will be discontinued by the company, primarily on account of more demand for plans which offer return of premium. The three variants of this plan are the Classic, Step-up and Comprehensive, with the Classic plan offering 100% return of premium, the Step-up offering returns ranging between 110-150% of the premium and the Comprehensive offering partial return of premium. Policyholders can also choose to enhance the policy by opting for riders like a critical illness cover and an accident cover.

        16th July 2016

      • Life insurance sector in India records a 13.8% growth in May

        Life insurance companies have recorded an average premium growth of 13.8%, year-on-year, for the month of May. This amounts to a total of Rs. 17,952. Life Insurance Corporation (LIC) has shown a growth of 14.1% in average premium, amounting to Rs. 12,526. For private insurance companies, the average ticket size grew by 10.6%, amounting to Rs. 37,111. Companies like HDFC Life, Max Life, Bajaj Allianz and Birla Sun Life saw a growth ranging between 20% to 40%. Other insurers like Reliance Nippon Life and Shriram recorded a growth of 2.7% and 4.1%, respectively.

      • Insurance Providers To Provide Tailored Products Online

        The world of online retailing has opened up new avenues and prospects for a variety of insurance products. Owing to the cost-effective benefits due to the elimination of intermediaries, insurance companies are now offering travel, motor and health insurance products primarily via their websites. Online sales make up for up to 3% to 5% of the overall sales. Renewals further bump that figure to about 7% to 9%. Driven by this trend, insurance providers are now designing products based on customer reviews. Given that for millennials, the internet is nothing short of a lifeline, insurance companies are taking the cue and going the online way.

        14th July 2016

      • 14% growth in ticket size reported for life insurers.

        This fiscal period last year saw the ticket size for life insurers at Rs.15,744 crore – but the same period this year reports a ticket size of Rs.17,952 crore – a growth of 14%.

        This data is reported from the Life Insurance Council, indicates that the average reported growth for the size of life insurance policies has grown by 14% as compared to the same time period in the last fiscal year.

        Life Insurers in India today sell both – Unit Linked Insurance Policies (ULIPs) and traditional insurance policies, and data indicates that policy size could drop among the larger insurers as more focus is being put on traditional products.

        One of the problems currently being faced by insurers is that subscribers surrender their ULIPS. This is because the ULIPs are directly linked to the equity market – which is as volatile as it is rewarding, and panic surrendering of policies occurs during times of market lows.

        The current average target set by most insurers is between Rs.30,000 crore and Rs.40,000 crore for Unit Linked Insurance Policies (ULIPs) and between Rs.25,000 crore and Rs.30,000 crore for traditional insurance policies.

        Despite the popularity of ULIPs and the reported successes of private insurers who sell ULIPS, the Life Insurance Corporation of India (LIC) has reported a Rs.12,526 crore (14.1%) growth through the sale of traditional insurance policies.

        13th July 2016

      • ICICI Prudential To Launch Its IPO during Current Fiscal

        Chanda Kochhar, Managing Director & Chief Executive, ICICI Bank, recently announced that ICICI Prudential Life will be entering the capital markets in the current fiscal year with its initial public offer. Speaking at the 22nd AGM of ICICI Bank, Mrs. Kochhar said that the bank intends to launch the IPO during the current fiscal year, but the same will depend on the market conditions and approval which has to be given by the regulator. While no mention was made regarding the size of the IPO, this will be the first ever IPO to be launched by a life insurance company in India.

        12th July 2016

      • IndiaFirst Teams Up With IFMR To Extend Policy Distribution In Rural Areas

        IndiaFirst Life Insurance has recently partnered with IFMR Rural Channels and Services Private (IRCS) in order to enable the distribution of insurance policies to those residing in remote rural districts of the country.

        According the release, IFMR is offering life insurance policies via Kshetriya Gramin Financial Services (KGFS) in its 4 centres which are located in 5 districts in Uttarakhand, Odisha and Tamil Nadu. As a part of this association, IFMR plans to distribute the IndiaFirst Simple Benefit Plan which is a non-linked individual participating endowment Plan offered by IndiaFirst Life Insurance. R. M. Vishakha, CEO and MD for IndiaFirst Life Insurance said that this tie-up will enable IndiaFirst to make their products available in the mass market which will allow them to participate in financial inclusion.

        11th July 2016

      • Bharti AXA Life Monthly Advantage - new scheme by Bharti AXA

        The insurance major Bharti AXA has launched a new life insurance scheme called the Bharti AXA Life Monthly Advantage. It is a limited pay, traditional life insurance plan which offers guaranteed monthly pay outs till the maturity of the policy. Annual reversionary bonus gets accrued from the end of first year of policy and gets paid out at the end of the maturity. This is a non-guaranteed and component and may get paid only on maturity, death or accidental total permanent disability of the policyholder.

        Bharti AXA aims to make it easy for young couples to plan and save for the future and hence this new scheme is aimed at helping policyholders save in small amounts and take advantage of the monthly additional income which can also be invested further to generate more income for a later stage of life.

        10th July 2016

      • By 2030, EPFO aims to cover all under PF and pension

        Employees Provident Fund Organization or the EPFO has a goal of reaching out to the entire population of India and cover them under the PF and pension schemes by the year 2030. This is as per the vision document of the EPFO. The document has goals like universal social security coverage via pension scheme, PF and insurance. Best service delivery practices and state of the art technology are also parts of the vision document.

        A meeting between Central Provident Fund Commissioner, EPF Officer’s Association and the All India EPF Staff was held to identify and discuss the goals that the EPFO has for the year 2030. EPFO caters to over 3.5 crore subscribers and is the largest implemented social security scheme in the country.

        9th July 2016

      • 13.8% average ticket size growth for the Life Insurance industry

        The LIfe Insurance industry saw an average growth of 13.8% for ticket size or premium payments in the month of May. The average premium size rose to Rs.17,952 for the month of May. Life Insurance Corporation, which is a public sector insurance undertaking, posted an increase of Rs.12526. For private insurance players, the average ticket size showed a growth of 10.6% on an year to year basis and the average was Rs.37,111.

        However, two biggest private insurance players, ICICI Prudential and Kotak Mahindra saw a fall of 29.3% and 11.8% respectively in their average ticket size. The insurance industry has been facing issues since the recession in the year 2008. The government’s decision to allow foreign direct investment or FDI in insurance has placed the insurance industry in the path of new hope and opportunity.

        8th July 2016

      • The focus is on traditional insurance products, says Reliance Nippon

        As a part of its expansion plans, Reliance Nippon (life insurance provider) is set to launch three new products and pay more attention to products with assured returns. The chief agency officer of the company is said to have acknowledged that the company has filed for three products with IRDA, and are expecting quick approval on the same. Out of these three products, one is said to be ULIP (unit linked insurance plan), while the other two will be traditional insurance products. The last year wasn’t too promising for Reliance Nippon as it had experienced a negative growth. This year the company is expecting a huge rise in its business.

        7th July 2016

      • Private insurers Register Higher New Premium Growth in May

        Private insurers in India have recorded impressive growth of 26% in annualized new business premium for the month of May. This rise in growth is mainly attributed to the higher ticket size of the business. However, the state-owned Life Insurance Corporation of India (LIC) recorded a growth of 22% (year-on-year) in annualized first-year premium which was attributed to higher volumes.

        In the individual non-single segment, for a majority of players, the average ticket size has increased by a whopping 30% to 40%. While on one hand, the private sector continues to grow its market share with the help of stable group business, LIC, on the other hand, continues to boast holding a higher share in terms of single premium business, a segment in which private players have been exercising caution and being selective. Under the group business segment, the share held by private players went up to 26% in May, which is a modest 6% rise from 20% in the month of April.

        6th July 2016

      • Life insurance companies record increase in new insurance premiums.

        There was a rise in new insurance premiums by 26.6% for the month of May according to collections made by insurers. Life insurance premium amounts rose from Rs. 8,382.67 crore to Rs. 10,610.10 crore. Private sector general insurance companies saw a growth of 25.8%, which amounted to Rs. 10,610.10 crore in new premium collection during May. This growth has occurred from a figure of Rs. 2,580.89 crore, which was recorded for the previous year. Life Insurance Corporation of India (LIC) registered a 27% growth in new premiums amounting to Rs 7,361.75 crore. Private sector insurers like HDFC Standard Life, SBI Life, Kotak Mahindra Old Mutual Life and Exide Life also showed a robust increase in new insurance premiums. SBI Life saw an increase in 156% to Rs. 842.08 crore, HDFC Standard Life to Rs. 502.59 crore, Exide Life to Rs. 127.46 crore and Kotak Mahindra Old Mutual Life to Rs. 197.66 crore. Other insurers also saw a rise, namely, Canara HSBC OBC Life recorded an increase up to Rs. 66.32 crore, Max Life to Rs. 66.32 crore, Birla Sun Life up to Rs. 188.91 crore , Bharti Axa up to Rs. 39.69 crore and IDBI Federal Life up to Rs. 40.65 crore.

        4th July 2016

      • Mergers in the insurance sector on a rise

        After the much anticipated merger between Max Life and HDFC Life, Bajaj Finsery has been looking for a merger too. The Managing Director, Sanjiv Bajaj, of Bajaj Finsery opined that life insurance sector has a huge opportunity of growth in context to mergers. Though he refused to comment on the rumours of Finsery buying out Allianz’s stakes, he acknowledged that talks have been going on regarding a merger. Bajaj aims at strengthening its presence in the life insurance sector. This sector hasn’t been seeing a huge rise in sales in the past few years, in fact there has been a fall as customers have been buying other types of insurance more widely. Gradually, they expect this trend to be changing for the better and resulting in an increased business for the life insurance sector.

        5th July 2016

      • IRDAI approves electronic insurance for payment of life insurance policies.

        Electronic insurance is to become a compulsory requirement for life insurance annual premium payments equaling to Rs. 10,000 or above. According to IRDAI’s Issuance of e-Insurance Policies Regulations, 2016, this rule would come into effect from October 1st, 2015.

        New life insurance schemes have been introduced by the Coconut Development Board. The two schemes are Coconut Palm Insurance Scheme for farmers and Kera Suraksha Insurance Scheme for coconut climbers.

        Indian cricketer, Mahendra Singh Dhoni would be the new face of Exide Life Insurance, where the sportsman will be featured in the “Lamba saath, bharose ki baat” marketing campaign.

        3rd July 2016

      • IndiaFirst Life Insurance and Star Health Insurance come together for offering Combi plans

        Star Health and Allied Insurance Ltd. in association with IndiaFirst Life Insurance made an announcement of launching Star First Combi Plans. This step has been taken with a joint venture between Bank of Baroda, Andhra Bank and Legal & General (UK). Star First Combi Plan is basically a combo of life and health insurance plans. This five stage plan is an innovative product as it is a unique combination of the best of health and life insurance plans. Customers can now experience the best benefits of two different insurance plans in just a single plan with the Star First Combi Plans. They will be provided both health and life coverage. The Managing Director of Star Health Insurance opined that this combi plan provides dual benefits and protection with respect to a situation where he/she falls ill and has the health insurance plan taking care, and if he/she loses his/her life in the process, the life insurance coverage comes into play. Being the first of its kind, the company is really hopeful and confident about this product’s success.

        2nd July 2016

      • Dai-Ichi Life Insurance’s share in Star Union Dai-Ichi Life Insurance has increased to 44%.

        The 18% stake held by public sector lender, Bank of India in Star Union Dai-Ichi Life Insurance Company (SUD) has been sold to Japan's Dai-Ichi Life Insurance for a cost of Rs. 540 crores. Dai-Ichi Life Insurance will now have 44% stake in Star Union Dai-Ichi Life Insurance, as compared to the previous 26%. Bank of India has taken this decision due to the increase in FDI limits for insurance, as per the law. The increase in stake for Dai-Ichi Life Insurance will come into effect after the required approvals. Bank of India’s shareholding in the company will get reduced to 30%. Another shareholder, Union Bank of India will continue to have 26% stake in Star Union Dai-Ichi Life Insurance.

        1st July 2016

      • BigDecisions Partners With Edelweiss Tokio Life to Create Awareness Towards Critical Illness Insurance

        BigDecisions.com, a News Corp owned platform which provides financial advice recently announced that it would be partnering with Edelweiss Tokio Life Insurance for #BounceBack, an initiative introduced to raise awareness surrounding the need for critical illness insurance in India.

        The initiative has been started following the findings obtained from a survey and user data from BigDecisions.com’s which indicated the lack of awareness among people regarding this particular insurance. The survey conducted in this regard displayed that out of 3,70,000 visitors, only 2% were aware of critical illness insurance policies.

        #BounceBack, launched in February, is a unique initiative which has been started with the objective of creating awareness about critical illness insurance.

        30th June 2016

      • New Premium Collection by Life Insurers up by 27% in May

        Life insurers have collected new premium of up to Rs.10,610.10 crore in May, which is higher by 26.6%. Last year’s collection around the same time was Rs.8,382.67 crore. Out of the 24 life insurers, the companies belonging to the private sector reported a 25.8% hike in new premium collection with Rs.3,248.35 crore in May, while last year’s collection was Rs.2,580.89 crore.

        LIC’s new premium collection shot up 27% from May last year with Rs.7,361.75 crore. Some of the top private sector performers such as HDFC Standard Life, SBI Life, Kotak Mahindra Old Mutual Life and Exide Life reported a healthy hike in their new business premiums.

        29th June 2016

      • Life Insurance Corporation (LIC) might announce Credit Enhancement Fund soon

        Life Insurance Corporation (LIC) will soon set-up a credit enhancement fund to offer guarantees to infrastructure sector companies, helping them get funds from overseas markets and the domestic market at a low cost. The Secretary in the Department of Economic Affairs, Shaktikanta Das communicated the same in an interview. This move will help infrastructure sector companies receive credit enhancement. By utilising this facility, companies can grow from AAA- to AAA. The Credit Enhancement Fund would also help improve credit rating of bonds and attract long-term investments.

        28th June 2016

      • Max Group opens offer to increase stake in Max Ventures to 75%

        The Chairman of Max Ventures and Industries Ltd (MVIL) and Max Group promoter, Analjit Singh announced that the company would be opening options for stakeholders to invest in an additional 34.6% stake in Max Ventures. The promoter's stake would increase to 75% in Max Ventures and Industries Ltd. As per the Chairman , investors are looking to target health insurance, life insurance and allied activities. The investment offer is subject to provisions in certain laws inclusive of SEBI Takeover Regulations. Max Ventures has been evaluated for a market worth of Rs. 168 crores.

        27th June 2016

      • Mahendra Singh Dhoni signed as Brand Ambassador for Exide Life Insurance

        Cricketer Mahendra Singh Dhoni was signed as the brand ambassador for Exide Life Insurance. He will feature in the ‘Lamba saath, bharose ki baat’ marketing campaign of Exide Life Insurance.

        According to the company’s Director-Marketing, Mohit Goel, Dhoni will be perfect for featuring in the campaign as his commitment and stability echo with the life insurance product. This is Dhoni’s first endorsement of an insurance product. He feels connected to Exide Life Insurance’s belief that long term relationships build trust.

        26th June 2016

      • DHFL Pramerica Life launches health insurance

        DHFL Pramerica Life Insurance Co. (DPLI) has stepped into the world of health insurance by launching DHFL Pramerica Dengue Shield. This is a direct customer product, which is available online. DPLI has entered into an agreement with ItzCash. This will provide a customer awareness program about the health insurance policy. It will use over 75,000 retail touch points across the country. DHFL Pramerica Dengue Shield is not just an innovative product but it is also extremely pocket-friendly. It offers a long term benefit for 5 years and protects the policyholder against medical/hospitalisation expenses being incurred due to dengue treatment.

        25th June 2016

      • 18% stake in BOI’s Life Insurance Venture Star Union Dai-Ichi Sold

        In an announcement during an exchange filing, 18% stake in Bank of India’s life insurance venture Star Union Dai-Ichi was sold to Dai-Ichi, the largest life insurer in Japan. However, the transaction value was not disclosed by the bank. In the fourth quarter results, the bank’s chief, M Rego had announced the lenders plan to sell the non-core assets of the bank as well as stake in its subsidiaries, in an attempt to raise Rs.1,000 crore.

        Dai-Ichi will now have a 44% share in the Indian life insurance venture from a 26% share, previously. While Union Bank will still have a 26% share, BOI’s share will drop from 48% to 30%.

        24th June 2016

      • Merger with HDFC Life sends Max Financial Shares Soaring

        Max Financial Services saw a rise in its shares by 20% touching the highest trading permissible limit for the day at Rs. 514.50 on NSE. Stocks soared by 19.99% reaching Rs. 514.40 on BSE, touching its upper circuit limit. The incline can be attributed to the merger between Max Financial Services, Max Life Insurance and HDFC Standard Life Insurance. This is India’s biggest consolidation in the sector of private insurance. The Board of Directors of all three companies entered into an agreement of confidentiality and exclusivity to assess a potential merger of Max Financial Services and Max Life Insurance into HDFC Standard Life Insurance.

        23rd June 2016

      • SBI Life Insurance will be announcing the final decision on dilution of stakes soon.

        A decision on the dilution of stakes favouring the foreign partner, BNP Paribas Cardif will be taken by SBI Life Insurance within a period of two months. This announcement was done by the CEO and MD, Arijit Basu. Currently, SBI Life Insurance has a joint venture of 26:74 with BNP Paribas Cardif, a France-based company. According to the CEO, BNP Paribas Cardif would get an additional 10% stake, incrementing the total to 36%. With the 2016 Budget increasing foreign investment to 49%, foreign investors are incrementing their stakes across the market. SBI Life Insurance is aiming to achieve a 40% growth in new business premium and also improve sales through bancassurance models.

        22nd June 2016

      • Max Life and HDFC Life in talks for a merger

        Predicted as one of the largest deals in India, HDFC and Max Financial Services have decided to look at the possibility of a merger of Max Life into HDFC Standard Life. The companies have said that the agreement that they have entered into is confidential and with the purpose of carrying out the merger. This is estimated to give birth to India’s largest life insurance company, in the private sector. HDFC Life boasts of assets worth Rs. 16,313 crore, and a substantial market share too. Max Life hold premiums of Rs. 9,216 crore, and a mention worthy market share too. A trusted source within the company claimed that post the merger, Max may enjoy holding 24% of the newly formed merged company.

        21st June 2016

      • SBI Life Insurance Introduces ULIP – ‘Smart Privilege’ for HNI Market

        SBI Life Insurance has introduced ‘Smart Privilege’, an ULIP focusing on higher income individuals. By opting for the product, customers can not only avail life insurance, but also a chance to earn through investments in eight of the top chosen funds. The combination of funds can be chosen by the customer. Customers will also be allowed the flexibility to switch between funds and redirect premiums, as many times they want, at any point of the term plan.

        The minimum eligible age for taking up a regular or limited premium policy is 8 years, while for a single premium policy, the minimum eligible age is 13 years, while the maximum age is 55 years. The policy term option for regular or limited premium policies is between 10 to 30 years, while for single premium policies, it is between 5 to 30 years. Customers have premium payment frequency options of monthly, quarterly, half-yearly, annually or single.

        20th June 2016

      • SBI Life Insurance targets 30% to 40% growth in new business premium

        SBI Life Insurance is aiming to achieve a 30% to 40% increase in its new business premium for the year, 2016-2017. The company also aims to grow its gross total premium by 25% to 26% for the current fiscal year. SBI Life Insurance will focus on agency channels and banking for achieving this growth. A growth of 29% was got in total new business premium and 37% was recorded in rated individual new business premium by the company. Agency sales saw a 12% to 13% growth during the previous year. SBI Life Insurance is planning to increment the number of license-specified employees to improve sales. A new ULIP product will be launched soon for High Net Worth Individuals by SBI. Currently, SBI Life Insurance has 27 products for individuals and 20 products targeted towards groups.

        19th June 2016

      • DHFL Pramerica Life Insurance (DPLI) offers Dengue Protection Policy Online

        DHFL Pramerica Life Insurance (DPLI) is offering its Dengue Protection Policy online. This policy is called the “Dengue Shield”. The company feels that life insurance products are more relevant than other insurance products and should be readily available to the public. The digital platform offers better accessibility to this insurance cover. Dengue Shield is provided at a premium of just Rs. 1 for each day covered under the policy. The sum insured ranges from Rs. 25,000 to Rs. 50,000. The claims process is quick and easy, with no specific documentation requirements. The policyholder can choose either a annual premium payment option or the one-time premium payment option. By choosing the Single Premium Payment option, the policyholder can avail a discount of 21% on the premium. The Dengue Insurance Policy can also be taken as a group policy in the near future.

        18th June 2016

      • DHFL Pramerica Launches Dengue Shield Insurance

        DHFL Pramerica, a private life insurance company, has launched its first health insurance policy called DHFL Pramerica Dengue Shield. The policy has fixed benefits for individuals and is available online direct to the customer. Online products like this one have a mass market and are affordable for the customer. Dengue Shield starts as low as Rs.1 per day premium for a cover of Rs.25,000 sum insured. The highest sum insured available is Rs.50,000. The launch of this product was in partnership with ItzCash which will help it create awareness against dengue. DHFL Pramerica is clearly venturing into the health insurance space. The market can expect more health insurance products from DHFL Pramerica soon.

        17th June 2016

      • Pension product numbers dwindle at life insurers

        Since insurers are trying to get a level-playing field in the life insurance space with National Pension System (NPS), life insurance companies’ new pension products are continuing to reduce. In the Budget, there was introduction of more tax incentives for NPS. However, insurers did not give similar exemptions to pension policies.

        In the budget, the finance ministry, claimed that 40% of the pension wealth received by an employee from the National Pension System Trust will be exempt. A uniform tax treatment was the aim in terms of the recognised provident fund, superannuation fund and national pension system.

        16th June 2016

      • Insurance Providers Permitted To Offer Differentiated Pricing on Policies Online

        The IRDAI (Insurance Regulatory and Development Authority of India) has recently declared, in its draft norms for insurance in e-commerce, that insurance companies and providers can offer different prices for the products which they sell online. This sale will be done via a self-network platform. This is a welcome move as until now, insurance products could not be sold at differentiated prices on different sale channels.

        According to regulations, the self-network platform can be made available on different mediums like via mobile application, a website or even both. Only those organizations, including insurance companies, agents, intermediaries, etc., which have been granted a certificate of registration by the IRDAI will be permitted to sell their products. The range of products which will be allowed to be sold online include non-life insurance, life insurance and standalone health products as well.

        Various officials associated with leading insurance providers have remarked on this decision. Sanjay Tripathy, senior executive vice-president of marketing, analytics, digital and e-commerce, HDFC Life mentioned how this decision will not only help in the prevention of insurance related fraud but also help lower the cost of insurance in the long term. K. G. Krishnamoorthy Rao, MD & CEO, Future Generali India Insurance, commented that now insurance providers will be able to provide discounts on the same products online. Sharad Mathur, senior vice-president and national head-agency, digital and alternate channel, SBI General Insurance, remarked that not only will this move help grow the insurance penetration in the market but will also enable insurance companies to offer its products to those residing in the rural parts of the country. This move will encourage more individuals to purchase insurance online which will automatically help lower the operating expenses of the company itself.

        15th June 2016

      • Bajaj Allianz Life Insurance records a 7% growth in businesses.

        Private insurer, Bajaj Allianz Life Insurance has announced that there has been a 7% growth in its newer businesses amounting to Rs 2,885 crore. This has been reported for the financial year, 2015-2016, which is comparatively higher than the figure of Rs 2,702 crore recorded for the previous year. Bajaj Allianz Life Insurance has seen an increase in its profits amounting to Rs. 879 crores for 2016. With regards to new businesses, Bajaj Allianz Life Insurance is on the top amongst other competitors. A 105% growth has been shown by Bajaj Allianz Life Insurance in new businesses amounting to Rs. 533 crore through the Business Procurement channel. This can be attributed to contribution from partners like Micro Finance institutes and Regional Rural Banks. Bajaj Allianz Life Insurance has settled 1,65,244 claims and carries a Claim Settlement Ratio of 98.07%, the highest for a private insurance company. The company had introduced various products in the previous fiscal year like Bajaj Allianz Life Principal Gain (a ULIP) to improve its growth prospects. As on March 2016, the Assets Under Management for Bajaj Allianz Life Insurance increased by 1% to Rs. 44,107 crore and the solvency ratio was maintained at 793%.

        14th June 2016

      • New Digital Campaign Launched by Exide Life Insurance

        A new digital campaign called the “#IncomeKaTopUp” has been launched by Exide Life Insurance. This social media campaign focuses on the Exide Life Income Advantage Plan which was recently introduced by the insurer. The campaign has been able to capture the interest of its target audience within the first week of release. It is promoted across social media sites such as YouTube, Facebook and Twitter. Through this campaign, Exide Life Insurance hopes to boost the sales of its new product and create awareness of its benefits among prospective customers.

        13th June 2016

      • New set of rules to increase transparency of insurance agents

        It is now compulsory for agents to disclose how much commission they will receive from a life insurance policy (how much from the premium). This used to be applicable for unit-linked insurance plans (Ulips) only before. Customers can also request their agents to provide appointment letter or identity card which should verify their authenticity.

        Agents will have to let the policyholder know regarding their chances of the policy’s approval or rejection. Going forward, agents will have to disclose vital information of the policyholder, such as whether he/ she is a smoker, to the insurance companies since underwriting will be affected by this.

        12th June 2016

      • Life Insurance Company HDFC had a massive increase in sales after it equipped its sales force with Tablets

        Life Insurance Company HDFC equipped its sales force with tablets and apps which resulted in a huge increase in productivity. The overall TAT for Cancer Care policies have reduced massively. As one of the country’s leading private life insurance companies, it offers customers a variety of individual and group insurance solutions, It is also a joint venture between Standard Life PLC and Housing Development Finance Corporation Limited (HDFC). The life insurance segment comprises of pension, protection, investment, savings and health.

        11th June 2016

      • Smart Suraksha Plan and Assured Nivesh Plan Launched by Canara HSBC Oriental Bank of Commerce Life Insurance

        Two new life insurance plans – the Smart Suraksha Plan and Assured Nivesh Plan have been recently launched by Canara HSBC Oriental Bank of Commerce Life Insurance Company. The Smart Suraksha Plan is a protection plan that offers cover against the demise of the life assured. This aids in securing the future of his/her family and meeting their financial needs. The Assured Nivesh Plan is an endowment plan that offers an opportunity to enhance savings and avail life cover as well. The premium payment term is limited and the policy tenure is extended over and above this period.

        10th June 2016

      • ICICI Pru Life Insurance to Make an Initial Public Offering Worth Rs.6, 000 Crore

        ICICI Pru Life Insurance Company is planning to make an Initial Public Offering (IPO) worth Rs.6, 000 crore. If this happens, it would be the biggest first-time share sale in India. In the past 6 years, an IPO of this magnitude has not been made. ICICI Pru Life Insurance Company and ICICI Pru General Insurance Company are leading players in the insurance business. A plethora of life insurance products have been introduced in the market by ICICI Prudential, which contain expansive benefits.

        9th June 2016

      • HDFC sells stake in HDFC ERGO General Insurance Company

        In a move likely to strengthen its financial position, HDFC (Housing Development Finance Corporation) sold its stake in the joint venture with ERGO International AG. Valued at Rs.1,122 crore, this transfer saw HDFC giving up its 22.902% stake in HDFC ERGO General Insurance Company. A total of 12.336 crore shares were sold, with each share costing Rs.90.973.

        HDFC earned a total pre-tax profit equivalent to Rs.922 crore, while the post-tax profit stood at Rs.725 crore, earmarking a smooth transition for the company.

        8th June 2016

      • Canara HSBC OBC Releases New Policies

        Two new products have been launched by Canara HSBC OBC Life Insurance Company aimed at financial empowerment. The schemes are titled Smart Suraksha Plan and Assured Nivesh Plan.

        The Smart Suraksha Plan is a protection plan that offers high sum assured at affordable premiums. The plan is aimed at enabling the families of policyholders to sustain their lifestyle if something unfortunate were to happen to the insured.

        The Assured Nivesh Plan is a savings cum protection endowment plan that includes limited premium payment term wherein premiums are collected for a reduced duration compared to the policy tenure.

        7th June 2016

      • Reliance General Insurance Partners with IndusInd Bank to Offer Insurance Products

        A Corporate Agency agreement was signed by IndusInd Bank, with India’s leading insurance provider Reliance General Insurance. This partnership was formed with the aim of offering insurance products through IndusInd Bank branches. IRDAI had recently issued guidelines for multi bank partner deals for Bancassurance and this has paved way for the partnership between Reliance General Insurance and IndusInd Bank. IndusInd Bank expects to provide life insurance, health insurance, etc. to its wide customer base. The products offered by Reliance General Insurance is backed by state-of-the-art technology and offers extensive benefits.

        6th June 2016

      • Reliance Infrastructure Ltd’s net profit jumps to Rs. 659.85 crore.

        Reliance Infrastructure Ltd has recorded a 43.7% growth in net profit for the fourth quarter. This has been made possible due to lower expenses and a one-time gain in its procurement, engineering and construction businesses. The company’s net profit increased to Rs. 659.85 crore from Rs. 459.11 crore for the quarter ending in March, as compared to the previous year. Reliance Infrastructure Ltd has also shortlisted two bidders, namely CPP Investment Board and Canada-based Brookfield Asset Management Inc., to fund its 11 operational roads assets.

        5th June 2016

      • Life Insurance Corporation (LIC) aiming to double policy sales.

        India’s largest insurer, Life Insurance Corporation (LIC) is planning to increase its business to Rs. 4 crore with regards to new policy issuance. This target is being set for the current fiscal year and LIC will be hiring 2 lakh agents to reach its target. Life Insurance Corporation (LIC) has recorded a 25% growth in new policy issuance and has a market share of 70.44%, for the year, 2015 - 2016. The first year premium income was 76.84% for 2015 - 2016. LIC’s market share was above 80% for individual single premium businesses and above 85% for group single premium. According to the Chairman of LIC, Mr. S K Roy, life insurance penetration in India is still low and the company is looking to improve this by issuing more policies. With rising competition, LIC is hoping to achieve its target with a new round of hiring that is expected to commence soon.

        5th June 2016

      • Life insurance Sees 22% Growth From New Business Premium

        The year seems to have started on a hopeful note for the domestic life insurance industry which recorded growth of 22.55%. This Improvement can be attributed mainly to growth in the segment of group single premium policy. Private insurance companies witnessed a growth of 17.63% while the state-run Life Insurance Corporation of India (LIC) recorded a higher growth of 24.74%, as compared to the previous fiscal year.

        As per the recent data released by LIC, the life insurance market recorded business premiums at Rs 1.38 lakh crore in FY16, as compared to Rs 1.13 lakh crore which was recorded in the previous financial year. Private insurers, on the other hand, recorded business premium at Rs 40,983 crore previous financial year.

        Majority out of the 22.55% growth which the industry has witnessed can be attributed the sale of group insurance policies. LIC alone experienced a growth of 46.1%, which can also be attributed to group single premium policies.

        Many other prominent private insurers like SBI Life, ICICI Prudential, HDFC Standard Life and Birla Sun Life have recorded growth between the range of 14 percent to 30 percent in the previous fiscal year. SBI life recorded a growth of 28.55% in FY 16.

        4th June 2016

      • LIC Raises Stake in 13 Companies, Buys Shares worth Rs. 8000 Crore

        Life Insurance Corporation of India, one of the largest life insurance companies in India, has made use of market volatility to increase its stake in companies including TCS, HDFC Bank, HDFC and Maruti Suzuki, listed on Sensex. LIC has already been investing in blue chip companies whenever the market has been volatile and when Foreign Institutional Investors (FIIs) were selling. LIC not only sold shares worth Rs. 1852 crore in nine blue chip companies but also purchased shares worth Rs. 10, 000 crores in 13 sensex companies.

        3rd June 2016

      • Birla Sun Life Launches SecurePlus Plan

        Birla Sun Life Insurance (BSLI) recently introduced the BSLI SecurePlus Plan which is a non-participating traditional insurance plan. This plan will provide customers with a guaranteed secondary income during the payment period, which will double the amount of the yearly premium that has been paid with the life cover. Birla Sun Life Insurance is a subsidiary of Aditya Birla financial Services which deals in life insurance policies.

        Talking about the SecurePlus Plan, Pankaj Razdan, MD & CEO at Birla Sun Life Insurance mention this plan has been specially designed to aid individuals maximize their income and also get a chance to earn twice as much income on their premiums.

        The SecurePlus Plan provides cover to the policy holder for the term of the policy, at the end of which the policy holder will have to Income options to choose from. Option A entails that the policyholder receive increasing income of 1x to 6 times in a span of 6 years. The other option i.e. Option B which the policyholder has is to receive double the amount of premiums which they have paid for 12 years.

        Talking about the advantages, all returns received on both these plans under the SecurePlus will be eligible for tax benefits. In case the life insured passes away unexpectedly during the Payment Period, the nominee named in the policy document will stand to receive the Income Benefit Pay-outs as per a pre-decided schedule. Therefore, this plan also ensured that your family stays protected financially in your absence. Under this policy, policyholders will also have the benefit of receiving life cover, along with a sum assured amount between the range of 14.5 times to 19 times of the amount of premium paid during the term of the policy. Also, policyholders can benefit from the built-in Accidental Death Benefit which is included in this policy.

        2nd June 2016

      • Aditya Birla Nuvo Reports a Net Profit of Rs. 327 Crore

        Aditya Birla Nuvo, a subsidiary of the Aditya Birla Group, recently reported a Net Profit worth Rs. 327 Crore. This profit was accrued from its diverse products such as life insurance products, telecom services, etc. The revenue earned from its life insurance segment during this quarter of the financial year is Rs 2,039.18 crore. This indicates an 11.76% increase from the profit earned in the same quarter of the last financial year. The revenue that the company earned from its other financial services is Rs 989.9 crore. Last year, the net sales during the quarter was Rs 6,318.41 crore and this quarter the net sales stands at Rs 6,957.32 crore.

        1st June 2016

      • Government To Crack The Whip On Insurance Defaulters

        Hyderabad State Transport Department has decided to tighten the noose on all vehicle owners who may be driving without legal insurance documents. This decision comes after several insurance companies have shared details of vehicle owners, who are insurance defaulters, with the law enforcement authorities. The data which is likely to have been submitted includes details like the class of the vehicle, insurance premium amount yet to be paid by the defaulter, details of the insurance defaulter, etc.

        According to data released by IRDA (Insurance Regulatory and Development Authority of India), more than 55% of vehicles plying all over the country are doing so without valid insurance documentation. Also, close to 60% of vehicle drivers falling under the Cyberabad Police jurisdiction have failed to renew insurance policies for their vehicles.

        Transport Commissioner, Sandeep Kumar Sultania has said that the data provided by the insurance companies will be synchronized with the database of the Transport department, which in turn will aid the authorities to track down the insurance defaulters.

        Speaking of road safety, the police officials have mentioned that the number of road accidents has come down in the recent times. However, the majority of vehicles which are involved in fatal these accidents are often plying without valid insurance documents.

        BankBazaar News About Insurance

        31st May 2016

      • Birla Sun Life Expecting 13-14% Rise In Individual Premium Income

        The life insurance subsidiary of Aditya Birla Financial Services, Birla Sun Life Insurance (BSLI), is expecting a growth of about 13% to 14% from individual premium income for the current fiscal year.

        In the past year, Birla Sun Life BSLI registered an overall premium related income of Rs 5,700 crore, out of which Rs 700 crore is attributed to individual premium income, Rs 1,400 crore from corporate premium income and Rs 3,000 from renewals, beside others. The company boasts a market share of 7.7 % in the Indian private sector insurance market.

        Panjak Razdan, BSLI Managing Director and Chief Executive, said that the productivity of BSLI agents has risen by 14 % in the past fiscal year. Not only is the company expecting to recruit more agents in the near future but is also expecting a similar rate of growth in the current year, in terms of the performance of their agents.

        Speaking about ULIP, Mr. Razdan said that it had grown by 36% in the previous fiscal year and the company is expecting the investment to grow by another 35% to 40% in the current year.

        Birla Sun Life currently operates via a network of 70,000 agents and has 3 bancassurance partners – Karur Vyasya Bank, DCB and Deutsche Bank.

        31st May 2016

      • Bajaj Finserv Registers Rs 517.9 Crore Profits For March quarter

        For the quarter which ended on March 31, 2016, Bajaj Finservregistered overall net profits of Rs 517.95 crore, as compared to Rs 707.12 crore which was the profit recorded for the corresponding quarter of the previous year. These profits can be attributed to the transfer of the policyholder’s surplus to the accounts of shareholders which is done on a quarterly basis in FY16. The overall net profits for the company stood at Rs 1,863 crore, a 10% growth from FY15, when the profits were recorded at Rs 1,690 crore.

        During the course of the year, as per the regulations of the Reserve Bank of India, Bajaj Finserv also acquired the status of a Core Investment Company (CIC), which makes it the holding company for all financial services related businesses for the Bajaj Group.

        30th May 2016

      • IRDAI to Issue Revised IPO Guidelines For Insurance Firms

        Insurance Regulatory and Development Authority of India (IRDAI) has announced that it will be issuing revised IPO guidelines to insurers. The announcement was made by IRDAI Chairman, T.S. Vijayan, who also mentioned that total foreign investment in the sector has gone up to Rs 15,000 crore in the past one year with increase in the limit of Foreign Direct Investment. This increased investment is mostly in form of equity ,following the passing of the Insurance Laws (Amendment) Bill in March 2015. The said bill has elevated the limit of foreign investment in the sector to 49 %, a long way up from 26 %. He also added that additional investments may materialize in the future.

        Looking at the performance of the insurance sector from the last fiscal year, life insurance has grown by 12%, non-life insurance by 14% and the health insurance sector has grown by an impressive 40%. However, health insurance displays much higher potential, the penetration of which is currently rather low.

        Talking of IPO guidelines, HDFC Standard Life has made an announcement regarding its plans to launch its Initial Public Offer (IPO). ICICI Prudential , too, is planning to launch an IPO.

        29th May 2016

      • IIB To Hold Conference On Insurance Analytics & Ratemaking

        Two themes for the IIRFA 2016 are Financial Inclusion in Insurance and Ratemaking & Insurance Analytics. The agenda for the conclave includes panel discussions on Fraud Control using Big Data Analytics and the integral linkages between micro-finance and micro-insurance. Also part of the program are special session to be held on Life Insurance Analytics and Disaster Management and Financing.

        The event will be attended by speakers who are a part of the regulatory sector, members of Indian (government and private sector) insurance industry (Life & Non-Life) and individuals employed with the top management at insurance data bodies in Asian countries like China, Japan, Malaysia, Thailand, Korea and Taiwan.

        Top speakers at the event includes personalities like BN Narasimhan (General Manager, GIC Re), Vijay Mahajan from Basix India, Sanjay Datta from ICICI Lombard General Insurance, Munling Chung (Deputy Director at Taiwan Insurance Institute), Worasit Thititanakarn (Advisor, Insurance Premium Rating Bureau, Thailand) and Kazunori Onoe (Managing Director, General Insurance Rating Organisation of Japan).

        28th May 2016

      • Kotak Mahindra Bank shows a 37% growth in Q4 net profit.

        Kotak Mahindra Bank has recorded an increase in its fourth-quarter profit by 15.63%, which amounts to Rs. 1,055.23. The income of the bank grew by 28.16% to up to Rs. 7,910.41 crore. Kotak Mahindra Bank has seen a net interest income growth by 5.2%, every quarter and by 65.40%, every year. A 2.9% qoq loan book growth and a sequential margin growth by 4.35% was recorded. Except broking, there was adequate growth in life insurance businesses and investments for the fourth quarter.

        27th May 2016

      • Over 96% of Death Claims Paid out by Bajaj Allianz and Max Life in 2015-16

        Bajaj Allianz Life Insurance and Max Life Insurance have both managed to reach the claims paid ratio of 96% during the FY 2015-16. Max Life touched a claim ratio of 96.23% while Bajaj Allianz managed to touch a claim ratio of 96.03%.

        26th May 2016

      • Edelweiss to concentrate on Insurance Services

        Edelweiss’ insurance business has registered a compounded annual growth rate (CAGR) of 35 per cent after the group entered insurance business in 2012. Over this period of four years, the premium collection has increased by 61 per cent and going forward, the insurance business for Edelweiss is expected to increase by about 10 to 12 per cent. The company has also recorded a 15. 2 per cent increase in net profit which was registered at Rs. 122 crores. The consolidated income has also increased by 13. 3 per cent. Edelweiss looks to expand the business network with a cash equity of Rs. 900 crores.

        At present, Edelweiss has tied up with Tokio Marine to offer Life Insurance Products in India.

        25th May 2016

      • DHFL Pramerica Posts 27% Rise in Profits

        DHFL Pramerica Life has posted 27% growth in profit after tax deductions for the FY 2015-2016. The company revealed an overall profit of Rs.50.8 crores in the fiscal year.

        This figure is higher than that for FY 2014-15 when profits for the private insurer stood at Rs.39.9 crores.

        The company’s Gross Written Premium (GWP) rose by 25% during the last fiscal to a little over Rs.920 crores. The GWP figure for FY2014-15 stood at a little over Rs.735 crores.

        The company also posted 25% growth in New Business Premium (NBP) during FY2015-16 to a little under Rs.730 crores, with the figure standing at just shy of Rs.580 crores for FY2014-15.

        The insurer also posted growth of about 32% in asset under management to over Rs.2,000 crores, as compared to little more than Rs.1,500 crores in FY2014-15.

        24th May 2016

      • Canara HSBC Oriental Bank of Commerce Life Insurance’s Net Profit up by 22%

        Canara HSBC Oriental Bank of Commerce Life Insurance has recorded a 22% growth in their net profit for the year, 2015-2016. The net profit for the financial year 2016 was Rs. 126 crore as against Rs. 103 crore achieved in 2015, with business premiums going up by 35%. Canara HSBC Oriental Bank of Commerce Life Insurance is the only insurer to have a 100% bancassurance model, where insurance is sold through the bank. The insurance company also had a 53% growth on GWP - Gross Written Premium as compared to the previous year.

        23rd May 2016

      • Bancassurance Partnership between Future Generali Life and Saraswat Bank

        An agreement has been signed between Future Generali Life Insurance and Saraswat Bank for a bancassurance partnership. Going forward, the Saraswat Bank will be able to sell Future Generali’s products to customers spread throughout the country. The bank has 250 plus branches to help cater to customers in major regions including Maharashtra, Madhya Pradesh, Gujarat, Karnataka, Delhi and Goa.

        18th May 2016

      • Aviva concludes 23% additional acquisition in Indian JV

        Aviva has bought an additional 23% stake in its Indian joint venture with Dabur. The new regulatory changes in extending the limit of FDI in insurance in India to 49% has been the reason why Aviva PLC has gone ahead with the deal.

        A statement from the company said the acquisition will have overall neutral impact on the net assets of Aviva. This deal comes even as many other insurers have extended their stakes in Indian JVs or are in the process to do the same.

        17th May 2016

      • Unemployed EPFO members to get life insurance cover

        There is some good news for unemployed ex employees of EPFO.The government stated that it will offer life cover to jobless ex employees of state run Employees’ Fund Organisation as long as they find employment in three years. The ex employees will be offered life cover at a nominal premium amount for up to three years from the time they are unemployed. This will be a relief to employees of the organised sector who lose insurance cover the moment they are unemployed. This move comes after the government’s decision to scrape the new rules regarding provident fund withdrawals.

        16th May 2016

      • Ujjivan Financial Services raises Rs.264.74 crore through anchor allotments

        Ujjivan Financial Services recently allotted about 12,607,081 equity shares at Rs.210 per share which approximately comes up to Rs.264.75 crores. The anchor investors included some of the leading domestic investors including insurance players such as Reliance Life Insurance, HDFC Standard Life Insurance along with other investors such as LIC Nomura Mutual Fund, Reliance Mutual Fund amongst others.

        15th May 2016

      • SBI Life Insurance reports a growth of 5%

        SBI Life Insurance reported a growth of about 5% in net profit at Rs. 861 for the year at the end of March 31st. The company had recorded a profit of Rs.820 crore last year in 2014-2015. The individual new business premium of the company stood at Rs. 3,757 crore the last fiscal year and has increased by 33% this year at Rs.4,987 crore. SBI Life Managing Director stated that the company has witnessed tremendous progress this year with a growth of 29% in total new business premium and a growth of 37% in rated individual new business premium.

        12th May 2016

      • SBI Life claim Golden Peacock National Quality Award – 2015

        Dubai’s Hotel The Meydan hosted the Golden Peacock National Quality Awards Presentation Ceremony for IOD India’s 26th World Congress on Leadership for Business Excellence and Innovation at which SBI Life Insurance claimed the Golden Peacock National Quality Award for 2015. In attendance to collect the award was the company’s executive director, COO, The Consul General of India, Dubai, and other big names from the insurance sector.

        Golden Peacock National Quality Award is among the most prestigious and coveted laurels awarded in recognition of significant achievements. SBL Life intends on building its brand equity on quality management and processes and believes that the award will stimulate them to gain a competitive edge in the ever-changing modern market place.

        12th May 2016

      • Private Life Insurers witness a growth of 14% in 2015-2016

        Private Life Insurers in India witnessed a decent growth of 14% in premium income for the year 2015-2016. The adjusted premium equivalent of private life insurers shot up to 14% year on year to 24,112 crore for the year 2015-2016 while the adjusted premium equivalent of the life insurance industry grew 12% year on year to approximately 52,000 crore for the last financial year. The premium earned by the biggest players slowed down but banks like SBI Life, Canara and HSBC still gained market share. Banks like ICICI bank which recorded the fastest growth of 41% in 2014-2015, witnessed a moderation in 2015-2016.

        10th May 2016

      • Saraswat Bank and Future Generali Life Insurance join hands with bancassurance partnership

        A bancassurance partnership agreement was signed yesterday in Mumbai between Saraswat Bank and Future Generali Life Insurance Company.

        As per the agreement, Future Generali Life Insurance Company’s customized products will be available to customers through Saraswat Bank’s network of around 250 bank branches.

        This expands the distribution of Future Generali Life Insurance Company’s insurance products and also strengthens its distribution network.

        10th May 2016

      • Max Life Insurance wins Celent Model Insurer Award

        Max Life Insurance, a leading private insurer in India added another feather to its cap by winning a prestigious award at Celent Model Insurer Award 2016. The company which is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd won an award in the ‘IT Management Best Practices’ category. The award was received by R. Krishnakumar who is the CVP and Head Business Performance, Analytics of Max Life Insurance. The award ceremony was held in Singapore.

        9th May 2016

      • PNB Metlife wins an award at an event hosted by Celent

        PNB Metlife recently won an award in an event held in Singapore which was hosted by Celent. PNB Metlife which is known as one of the leading life insurance providers in India won Celent’s Model Insurer Award 2016 on April 21st 2016. The company is well known for delivering customer-centric experience through their mobile responsive e commerce sales platform with an efficient user interface. The ecommerce sales platform is integrated with core IT systems and makes it possible for efficient customer on-boarding.This achievement acknowledges the amazing work the company is doing in the insurance sector.

        9th May 2016

      • Future Generali Life Insurance introduces a new plan!

        Future Generali Life Insurance, one of the leading insurers in India has launched a new online plan- Future Generali Easy Invest Online Plan. This new insurance plan is a unit linked insurance scheme that offers a wide range of investment as well as loyalty addition options.

        This product is mainly targeted at the tech savvy crowd who wish to invest in online plans which can be easily purchased online. This is the second online plan by the company.

        8th May 2016

      • Insurance Companies To Partner With Small Banks & MFIs To Improve Reach

        There is no doubt about the fact that the penetration of insurance products in India is not what it could be. To address this issue, the IRDA had pointed out the fact that insurers were concentrating a lot on the urban sector and not enough on the rural sector. To help remedy the situation, and improve the reach of the insurance companies, insurers are now entering into partnerships with small banks, micro finance companies and even co-operative banks. This move has led to agreements being signed between Bajaj Allianz and Kalupur Commercial Co-operative Bank for the distribution of microinsurance. Even HDFC Life has entered into an agreement with Indiabulls Housing Finance while Cigna TTK Health Insurance has partnered with Saraswat Bank which promises to give it a stronger base in six states since Saraswat Bank happens to one the largest urban co-operative banks in India.

        8th May 2016

      • Growth in First-year Premium for Life Insurers

        A 14% year-on-year increase in annualised first-year premium was reported by private insurance companies. Life Insurance Corporation of India, the state-owned company reported a growth of 10% as both group as well as individual business intensified operations between the start of October last year to the end of March this term.

        Private insurers accrued market share due to impressive growth in bancassurance. The insurance premium for low-margin groups in the industry as a whole rose by 46% in March 2016 as private insurers experienced 31% year-on-year growth. Meanwhile LIC experienced a growth of 50%.

        7th May 2016

      • Exide Life Insurance launches a unique insurance plan

        Exide Life Insurance which is one of the leading life insurance providers announced the launch of a unique insurance plan that also helps you build on your savings. ‘Exide Life Income Advantage Plan’ is an insurance plan that offers regular guaranteed income along with adequate life cover. The plan offers you two income payout options to choose from.The best advantage of the plan is that the insured is required to pay premiums only for the first half of the policy term and can enjoy guaranteed income every year for the rest of the policy term.

        7th May 2016

      • Subhrajit Mukhopadhyay appointed as Chief Actuary for Edelweiss Tokio Life Insurance

        Subhrajit Mukhopadhyay was appointed as the chief actuary of Edelweiss Tokio Life Insurance and is responsible for the controls of its actuarial business.

        Mukhopadhyay was previously working as the chief actuary at Avantha ERGO Life Insurance and was also a part of their executive management team. A member of the Institute of Actuaries in India, he has previously worked at reputed companies such as Exide Life Insurance which was formerly known as ING Life Insurance and also Life Insurance Corporation of India in various roles.

        The MD and CEO of Edelweiss Tokio Life Insurance, Deepak Mittal said that with Subhrajit Mukhopadhyay addition, the company would continue investing in a range of products to provide customers with a wide variety of solutions.

        BankBazaar News About Insurance

        6th May 2016

      • DIIs, LIC Respond Well to NHPC’s Sale Offer

        NHPC’s OFS (Offer for Sale) earlier this week received a good response as Life Insurance Corporation, the state-owned life insurance provider, having placed a notable bid. The offer for sale witnessed a subscription of more than 1.5 times as bids flowed in for 156 crore shares came from domestic institutions, according to sources. The government intends to sell around 125 crore shares in total or 11.6% of the power generator.

        Retail investors are also expected to participate in the purchase of the shares. If all the shares on offer are sold, the exchequer expected by the OFS will amount to around Rs.2700 crore. The government presently owns around 86% stake in NHPC, but that figure is expected to drop to 74.6% after the issue.

        BankBazaar News About Insurance

        3rd May 2016

      • Olympic Participants offered a cover of Rs. 1 crore by Edelweiss Tokio Life

        All 75 athletes representing India in 2016 Rio Olympics including Saina Nehwal, Gurpreet Singh, Jitu Rai, Vikas Krishnan and Devendro Singh have been offered a life cover worth Rs. 1 crore by Edelweiss Tokio Life Insurance. It was announced that Edelweiss Group, a company that has a stake in the life insurance company Edelweiss Tokio Life Insurance will be the main partner of The Indian Olympic Association for Olympics 2016 in Rio.

        This announcement was made in the illustrious presence of the Olympic boxer M C Mary Kom and Sardar Songh, captain of the Indian Hockey Team (Men) and Captain of the Women’s Indian Hockey Team, Ritu Rani.

        BankBazaar News About Insurance

        1st May 2016

      • Gross Written Premium for Shriram Life Insurance Exceeds Rs.1,000 Crore in 2015-16

        Shriram Life Insurance, a private sector life insurance company has recorded a 38% increase in its gross written premium, registering Rs.1,020 in the financial year 2015-16. The previous financial year witnessed Shriram Life Insurance’s gross written premium recorded at Rs.741 crores. The figures for 2015-16 included renewals for Rs.314 crores and NBP accounts for Rs.706 crores, according to a statement from the company.

        During the financial year 2015-16, Shriram Life Insurance sold 2.67 lac retail policies, and Manoj Kumar Jain, the Managing Director of the company revealed that Shriram Life Insurance is committed to spreading awareness regarding the importance of life insurance. The average ticket size of Rs.13,000 in addition to the growth in retail policy speaks volumes about the company’s enterprise towards ensuring that the masses are insured.

        Mr Jain also stressed on the company’s phenomenal growth in the recent past, stating that Shriram Life Insurance managed to register 50% of its business from markets in the north. According to Mr Jain, the expansion upon which the company embarked in the past three years has begun delivering results. The company’s branch network has more than doubled in this period, growing from around 200 branches to more than 530 at the moment, and the company continues its penetration into Tier Three and Tier Four cities through the addition of over 75 branches in the present financial year.

        For the present financial year, Mr Jain revealed that the company was confident of growing by another 25-30% on all business parameters.

        30th April 2016

      • AIA increases stake in Tata AIA Life Insurance

        It was recently announced that AIA group has increased its stake in life insurance joint venture with Tata Sons. AIA Group Limited and Tata Sons entered a joint venture to launch insurance products in 2001. It was announced on Monday that AIA group has increased its stake in Tata AIA Life Insurance from 26% to 49%. The stake sale was completed successfully after availing all government and regulatory approvals. AIA group is well known for its insurance products and has its headquarters in Hong Kong with branches in 18 other countries.

        29 April 2016

      • Bharti AXA Launches New Life Insurance Plan

        The life insurance provider Bharti AXA has announced a new non-participating life insurance plan that provides money back benefits. It comes in two variants, the Super 6 and the Super 10 which differ from one another in terms of the policy tenure. Between the two variants the plan can offer anywhere from 270% to 396% of the sum assured as a benefit of the policy. The plans offer payouts after a certain policy period is completed and also comes with features like maturity benefits, tax benefits, death benefits and Guaranteed Maturity Additions. The plan can also be coupled with the waiver of premium and hospital cash riders to help enhance its cover.

        26th April 2016

      • 23% Stake in Birla Sun Life sold by ABNL for Rs.1,664 Crore

        Aditya Birla Nuvo, the diversified firm, has completed an extra 23% stake sale in Birla Sun Life Insurance Company, its life insurance firm, to Sun Life Financial, its Canadian joint venture partner for Rs.1,664 crore.

        Aditya Birla Nuvo Ltd. in a BSE filing announced that it complete the transaction wherein Sun Life Financial has increased its stake in the life insurance joint venture Birla Sun Life Insurance from 26% to 49%. It also went on to say that ABNL has received an amount of Rs.1,664 crore from the stake sale. ABNL is expected to continue holding the majority of stake at 51%.

        25th April 2016

      • RBI Increases FDI under Automatic Route in Insurance Sector

        RBI has increased the FDI under automatic route in Insurance Sector from the current 26% to 49% stating that no Indian insurance company will allow any foreign company including foreign investors and portfolio investors to have an aggregate holding in the company exceeding 49%.

        The earlier limit was 29% and the new 49% limit is subject to approval from the Insurance Regulatory and Development Authority of India. This will directly affect the 52 insurance companies in India of which 24 are life insurance companies and the remaining 28 companies are general insurance providers

        4th April 2016

      • Pradhan Mantri Jan Dhan Yojana pay 452 claims

        There have been 858 claims for the Rs. 1 lakh accidental insurance, and around 452 claims that have already been paid under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme. There were only 26 claims pending due to incomplete documents, 380 claims were invalid. The number of claims filed stood at 2,298 for life insurance cover of Rs. 30,000 the claims and 297 were invalid and 1,976 claims were paid.

        30th March 2016

      • Life Insurance industry says pension products share has dropped

        The Insurance Regulatory and Development Authority of India or IRDA, has asked companies to provide guaranteed returns. However companies are finding this difficult since, pension products which are present in the life insurance industry are still in very small numbers. The portfolio of these products have dropped from 25% to 10%. Data has proved that any premium collection in relation to the pension products has seen a fall in collection lesser than Rs. 3, 000 crore in the last fiscal year, when compared to the Rs. 20,000 more that 5 years ago. To add to the already dropping collection, these products are facing huge competition from National Pension System (NPS) and have affected sales as well. The element of guarantee has made has made insurance products very different from the NPS scheme, however contrary to the NPS scheme, service tax is applicable on pension products.

        BankBazaar News About Insurance

        22nd March2016

      • Single premiums will get reduced service tax says Budget 2016

        This year’s budget, has proposed for the service tax to be reduced on single premium annuity plans. The reduction is proposed to drop from 3.5% to 1.4% on single premium annuity plans. In cases wherein the amount is allocated towards investment or even savings for the policyholder. If this is not intimated to the policyholder at the service time, effective 1st April 2016. There is also a proposal that life insurance services which provide a way of annuity should come under the NPS which is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) of India, which will be exempted from service tax with effect from 1st April, 2016.

        BankBazaar News About Insurance

        2nd March2016

      • Tax benefits on insurance to be linked to policy term and not sum assured

        The upcoming budget session of 2016 is expected usher in a few much-needed reforms in the tax computation norms. It is also expected that the budget, in order to take into account the effect of inflation, will allow expansion of basic exemption limit from Rs.2.5 lakhs to Rs.3 lakhs per annum. One of the second most prominent expectation from the upcoming budget is the abolition of service tax for policies that have a sum assured of less than Rs.10 lakhs.

        Also, it is expected that the pension plans will be made tax-exempt in the hands of the policyholder ones the maturity amount is reaped. This will fall inline with fostering long term savings and security in old age.

        BankBazaar News About Insurance

        22nd February 2016

      • Rewards cap to be introduced by IRDA for insurance agents

        The IRDA announced its intentions to introduce a rewards cap for insurance agents and intermediaries last month.

        Insurance agents are to get 20% of the first year commission, and intermediaries are to receive 40%.

        The move is motivate by the desire to create a level playing field across all segments for corporate and individual brokers, agents, and other intermediaries.

        BankBazaar News About Insurance

        18th February 2016

      • New Financial Plan Aims at Creating Opportunities for All

        Minister of State for Finance Jayant Sinha has said that the government’s proposed new financial architecture will create more opportunities for every citizen. The plan being developed will be implemented in three phases, and aims at providing financial security and income opportunities to every Indian.

        The first phase of the Jan Dhan-Aadhaar-Mobile plan will focus on vision, the second on rolling out of simple financial products, and the third on enabling and ensuring financial access to people.

        The plan combines the financial inclusion programme – Jan Dhan Yojana, the Aadhaar card and the uses of the mobile phone to optimise the financial system for the beneficiaries.

        Mr. Sinha said the first phase has already been completed.

        BankBazaar News About Insurance

        11th February 2016

      • 4 million more enrolled by Telenor for their free life insurance scheme

        Telenor in Uttar Pradesh, has enrolled over 4 million customer into their free life insurance scheme. The company has more than 11 million customers of which 4.1 million have taken up the free life insurance scheme. The scheme was launched in October of 2015 in association with another private life insurance company.

        BankBazaar News About Insurance

        08th February 2016

      • Max India to be renamed and trade ex-demerger

        Recently, the Max Group reveals that from 27th January onward, Max India would start trading ex-demerger. So far, the Max Group has approved demerger into 3 companies and very soon the existing Max India will be renamed as Max Financial Services. Previously, Max India demerged into 3 separate companies namely - ax Financial Services, Max India and Max Ventures and Industries.

        Going forward, the Max Financial Company would focus on managing Max Groups’ flagship life insurance business. The company aims to turn itself as the first Indian listed company focusing exclusively on life insurance.

        24 January 2016

      • BSE Indices to exclude Max India.

        Following the demerger of Max India's specialty film business and health and allied vertical, the company will be released from BSE indices from January 27th. The company is s demerging its health and allied business into Taurus Ventures Limited and specialty film business into Capricorn Ventures Limited. Max India will be barred from 7 indices which include S&P BSE 500, S&P BSE 200, S&P BSE Industrials and S&P BSE AllCap.

        22 January 2016

      • Max Life announces it Embedded Value.

        Max India, the leading life insurance company in India recently announced the EV (Embedded value) for its life insurance business in India. In September, the EV of the company is Rs. 5,363 crore which is higher than its previous EV in March, 2015. In March 2015, the company’s EV was Rs. 5,232 crore.

        Recently, the company also declared its corporate restructuring plan to divide the company into three separate listed companies. It is expected that all these three entities will get approval soon and will be listed on Indian bourses in December. Besides, Max Life Insurance also declared the value of it New Business which stands at Rs. 163 crore.

        2 January 2016

      • First Year Collection for Life Insurer’s increases by 9.5%

        The collection of premiums for the first year of life insurance by life insurance companies rose by 9.5% in December 2015 as compared to the previous year and stood at Rs 11,026.82 Crore. It was Rs 10,071.80 Crore in December 2014.

        The first year insurance premium declined for private companies but witnessed an increase for LIC. For private insurance companies, the first year insurance premium fell by 12.1% to Rs 3703.15 Crore whereas the first year insurance premium for LIC rose by 25% to Rs 7323.67 Crore. The increase was a year on year increase.

        Private insurance companies weren’t at a total loss either. Their new business premium saw a healthy growth of 17.5% and stood at Rs 25,972.31 Crore from the period of April to December 2015

        BankBazaar News About Insurance

        31st January 2016

      • Private insurers in India underperform compared to other Asian markets.

        According to a recent survey, the life insurance industry of India has underperformed compared to its Asian competitors. The report also reveals that the private insurance providers in India have not been successful is creating value. These private insurers are serving a tiny segment to meet their narrow investment requirements. Over the decade, the overall return of the private sector life insurance companies is much below than those of other Asian markets. It also fails to meet the cost of capital.

        30th January 2016

      • Indian Insurance Sector Weaker Than Asian Counterparts: McKinsey Report

        A report by McKinsey & Company said the performance of life insurance sector in India was weaker than its counterparts in other parts of Asia.

        According to the report ‘The Life Journey India’, private insurance companies in the country are not taking full advantage of the market potential. The main reasons given for this are a small customer base and products catering to narrow investment needs.

        The study, however, confirmed that within the narrow space of operations, the sector performs up to pace in India. This excellence was primarily due to extensive distribution channels and strategic partnerships, the report said.

        It also said the sector in India was closely linked to the performance of the equity market, rather than an increase in the GDP.

        28th January 2016

      • Indian insurance providers to receive investment from foreign investors

        Following the launch of Insurance Laws (Amendment) Act in 2015, there is a rise on the limit of foreign ownership of insurance companies in India. The rate of investment has raised up to 49% form it previous rate of 26%. It is expected that it would open multiple opportunities foreign investments in India. Bharti Enterprise is the first company to reveal that its oversea partner AXA would increase it equity investments in general and life insurance up to 49%. AXA has already increased its stake in Bharti AXA General Insurance and Bharti AXA Life Insurance to 49% in December, 2015 after receiving official approvals from IRDAI and FIPB.

        25th January 2016

      • 16% growth in Life Insurance Premiums

        Life Insurance providers witnessed a growth of 16% rise in the new insurance premiums between April- December 31st of 2015. Life insurers collected new premiums worth Rs.85,587.73 crore as compared to Rs.73,777.73 last year during the same period. Research data provided by the Insurance Regulatory and Development Authority of India showed that private life insurers posted a growth of 17.25% in new premiums.

        21st January 2016

      • MoU signed by Corporation Bank and LIC for Group Credit Linked Insurance

        Yesterday, in a top-level meeting between Corporation Bank and LIC, a special MoU was signed for a group credit linked insurance.

        This particular linked insurance is aimed to cover loans of up to INR 4 lakhs. With an insurance term ranging from 5 years to 35 years, the loan will be covered by LIC India in case of the unfortunate demise of the borrower.

        LIC has been maintaining the first position among channel partners in terms of mobilization of premium, registering year-on-year growth of 46% and that additionally improves the reliability of this insurance scheme. A premium amount of INR 500 crore will be advanced to LIC by Corporation Bank on or before March 31, 2016 to get this insurance scheme into action.

        14th January 2016

      • Rs. 800 crore worth stake being sold by IDBI

        IDBI is planning to sell their 20% stake in a life insurance joint venture, for a whopping Rs. 800 crore. The sale will now allow their foreign partner Ageas to increase their stake and help with adding weight to the state run capital. The joint venture currently stand with IDBI Bank holding a 48% share in the IDBI Federal Life Insurance, and the remaining is owned by Federal Bank and an European Insurer Ageas each holding a 26% share. The sale is expected to take place in January 2016, and is seen happening after the government raised the bar of foreign direct investment from 26% to 49%, increasing the foreign investments in domestic ventures.

        2nd January 2016

      • Life insurance industry premium is up by 9%

        From April – November, 2015, the life insurance industry reported at 9% increase in the annual premium mostly due to the volatile market conditions. The growth gas be supported by large private sector companies. Among the larger players, ICICI Prudential Life and Max Life has been more volatile and has reported decline in the individual business. HDFC continued to be a steady player and SBI remained in the higher growth trajectory.

        28th December 2015

      • Group Life Insurance MoU signed between Dena Bank and SBI Life

        Dena Bank recently signed a MoU with SBI Life Insurance to offer group life insurance solutions to its house loan customers. Titled the “Dena Grihaswami Suraksha Yojana”, housing loan borrowers would be entitled to an insurance cover at affordable premiums. This cover would protect against outstanding loan amounts, with SBI Life Insurance clearing the outstanding amount in the event of demise of insured. A single premium would be charged for the loan term, with borrowers expected to pay this when they enter the scheme. In the event of death claim exceeding the outstanding loan amount, the nominee will receive the excess amount.

        19th December 2015

      • Max India Sells Stake in Max Bupa to Unlock Value

        The insurance industry has witnessed a lot of deals in the recent past owing to the improvement in the cap on direct investment from overseas, from 26% to 49%. Earlier this week, Max India revealed that it sold 23% of its stake in Max Bupa (the company’s health insurance sector) to Bupa Plc. (its overseas joint venture partner). Following the sale, the holding of Max India in Max Bupa has reduced from 74% to 51%.

        The Insurance Bill was passed in the past year, thus encouraging companies to engage in stake sales to unlock value. Max India can unlock value in its insurance subsidiary now that shares will be transferred in favour of the company’s overseas partner.

        25 November 2015

      • LocalOye to provide high life insurance cover to its partners

        LocalOye, a startup offering services in over 250+ categories announced that it will provide life insurance cover worth over Rs.2 lakh for its top 100 service partners. This decision was taken to ensure that they feel secure when they are out to fulfil a service lead. The company is looking to providing life insurance plans for its performing service partners in three categories- Plumbers, electricians and carpenters in Mumbai, Bangalore and NCR. The startup is planning to provide the Pradhan Mantri Jeevan Jyoti Bima Yojana launched by the Prime Minister.

        BankBazaar News About Insurance

        29th November 2015

      • Max Life Insurance launches a new product – Monthly Income Advantage Plan

        Max life insurance has launched a new product Max Life Monthly Income Advantage Plan which is a traditional, participating and money back life insurance plan. You get a guaranteed monthly income for 10 years and a lump sum is paid at maturity. The scheme comes in two variants, premium payment term of 12 years with 22 years policy term and premium payment term of 15 years with 25 years policy term. The plan also offers tax benefits on the premiums paid and on the benefits received by the insured.

        20 October 2015

      • Life Insurance Council plans database to prevent fraudulent claims

        The Life Insurance Council, an apex industry body of life insurance companies, has decided to create a centralized database of insurance policies. This decision was taken in order to detect, identify, and prevent fraudulent claims. This fraud monitoring framework is expected to be ready by December, according to a statement issued by V. Manickam, secretary-general of the Life Insurance Council.

        The proposed fraud monitoring mechanism will assist insurance companies with details of their customers and detect any fraudulent behaviour in disclosure and claims by policyholders. The Life Insurance Council is in the process of hiring a vendor who will provide the technology to build and maintain a common database. On this database, all the 24 insurance companies will be able to share their policy data.

        29th October 2015

      • Initial Public Offer for HDFC Life may be halfway through 2016

        HDFC the leading housing finance provider said they may go for a public listing for their life insurance subsidiary in 2016. The IPO will be done based on their joint venture with Standard Life and if the stake of the later hits at least 35%. Standard Life has made an announcement that they would increase their stake from the current 26% to 35%. Only after this transaction is complete will they know if they need an IPO. There is no possibility of an IPO will not happen in 2015 but may be in the middle of 2016.

        28th October 2015

      • Annuity Plans Price Increases

        The purchase price of annuity plans has increased, following a regulation issued by the Insurance Regulatory and Development Authority of India (IRDAI). At least Rs. 1,000, excluding bonus or profit, should be the minimum monthly payout. This move was introduced to ensure that policyholders receive a reasonable interest amount.

        At present, there are no restrictions on the purchase price or the minimum payout amount. It may differ from company to company. In a statement issued, the IRDAI said that if the monthly payout is lower that Rs. 1,000 per month, the minimum purchase price will be increased. However, when the payout goes down, the rate of interest also decreases.

        27th October 2015

      • Individual premium income drops for LIC in H1

        Life Insurance Corporation, the country’s biggest life insurer, has seen a dip in the individual premiums incomes in the first half of the current fiscal year. For the same period last year the insurer collected Rs. 8,890 crore, however this year's collection dropped to Rs. 8,115 crore. The Insurance Regulatory and Development Authority (IRDA) data released has shown the decline in premiums incomes for LIC to be the sudden demand and sales of unit-linked insurance plans (ULIPs), also the private life insurance industry has shown a growth of 15% from last year’s Rs. 7,322 crore to this year’s Rs. 8,422 crore.

        26th October 2015

      • Axis Bank will increase its stake in Max Life Insurance

        The board of directors of Max India, have given Axis Bank the go ahead to increase their stake in Max Life Insurance Company. In the joint venture with the life insurance firm Axis Bank holds a 4% stake, the increase in stake will be a marginal one with the percentage still being less than 5%. Axis Bank is right now bancassurance partner, and they distribute Max Life Insurance Company’s products through their branches network. Currently there is no clarity on the method of the stake increase, if Max Life Insurance Company will issue fresh shares or the if the stake increase will be purchased from Max India is still under stipulation, as nothing is finalised yet.

        26th October 2015

      • Life insurance industry records an 18.5 percent growth

        The life insurance industry has recorded a growth of 18.5 percent in the first half of the fiscal year even as the largest insurer of the country has been growing less than 10 percent during the period. The insurance sector consists of 24 players that brought in Rs.58,286.40 crores new business. LIC recorded a growth of 9.2 percent during the first 6 months. LIC’s market share stood at 67 percent at the end of September. SBI Life earned Rs.2620.88 crore new business, HDFC life earned Rs.2624.26 crore new business whereas ICICI Prudential Life earned Rs.3,375.17 crore.

        21st October 2015

      • India Post to sell life insurance policies

        India Post is likely to offer various life insurance products as part of its long-term strategy to widen its range of offerings from fixed deposits and small savings to mobile wallets and a policy for girl child (sum assured of Rs.10 lakhs) which is on the cards. India Post will seek approval from the Insurance Regulatory and Development Authority (IRDA) soon to launch the additional insurance products.

        The latest move is aimed at modernising the services of India Post which currently has around 1,60,000 post offices and 2,50,000 extra-departmental employees, who are expected to be trained as personnel financial advisers in villages.

        India Post, under its insurance segment, currently has a corpus of Rs.56,000 crore, which includes rural postal life insurance (RPLI) and postal life insurance (PLI). India post aims for a 500% increase in the coming three years, according to sources in the department of post.

        India Post which has so far sold 23 million under RPLI and 7 million policies under PLI plans to have tie-ups with some insurance companies to provide non-life insurance products.

        India Post will also sell Atal Pension Yojana, launched by prime minister Narendra Modi in May 2015. According to reports, banks enrolled only 500,000 subscribers into the said scheme, which is primarily aimed at the unorganised sector. The finance ministry has urged banks to draw up strategies to widen the reach of Atal Pension Yojana to reach the set target of 20 million subscribers before December 31, 2015.

        12th October 2015

      • HSBC Insurance plans to increase its stake in the Canara HSBC OBC Life

        HSBC Insurance is considering raising their stake in Canara HSBC OBC Life from 26% to 49%. This is a 3 way joint venture, with currently 51% stake held by Canara Bank, 26% being held by HSBC Insurance and Oriental Bank of Commerce holding the remaining 23%.

        7th October 2015

      • Rs.150 crore given to IndiaFirst Life as an additional capital infusion

        Three of the promoters of IndiaFirst Life Insurance - Bank of Baroda, Andhra Bank and Legal & General, have provided the privately owned insurance company with Rs. 150 crore of capital infusion. This infusion has taken place as per the shareholding pattern Bank of Baroda 44%, Andhra Bank 30% and Legal & General 26 % stake. The MD and CEO of IndiaFirst Life Insurance said they are not looking at diluting their stakes and are committed for long term. With the new round of capital infusion IndiaFirst Life Insurance takes its total share capital to Rs 625 crore.

        7th October 2015

      • Max Life Platinum Wealth Plan – the new life insurance product launched by Max Life

        One of the leading providers of life insurance in India, Max Life Insurance Company recently launched ‘Max Life Platinum Wealth Plan’. The plan is particularly designed to provider higher returns in shorter tenure. Customers can enjoy unlimited free switches among different funds which helps in better managing their portfolio. Customers can choose to invest in invest in 5 funds available with this plan.

        2 September 2015

      • IRDAI to mandate Public Listing for Large Life Insurance Companies

        The Insurance Regulatory and Development Authority of India (IRDAI) is on the verge of making it compulsory for large life insurance companies to become publicly listed. As per IRDAI, any life insurer in business for the past 10 years needs to be publicly listed, as a measure towards increasing transparency in the functioning of the company. It will also allow others to share in the risk and return of the insurers, as opposed to everything being maintained between one or two partners. As per the regulator, life insurers with assets under management exceeding Rs. 60,000 crore will be the first ones who would be required to list initially.

        Going by the benchmark of IRDAI, ICICI Prudential Life, SBI Life and HDFC Life are the top three insurers who would need to have a public listing initially. They are closely followed by Bajaj Allianz and Max Life insurance companies. Life Insurance Corporation, being a state-owned entity still falls under a grey area, but IRDAI can nevertheless direct the company with regards to its public issue.

        15th September 2015

      • Life Insurance Companies Roped in Experian for Fraud Monitoring

        In a bid to build a data repository and establish a fraud monitoring system, life insurance companies have roped in Experian, a global data analytics company to assist in the entire process. A similar plan by the Insurance Regulatory and Development Authority of India seems to be on the backburner for now.

        The plan is projected to go live in October, allowing life insurance companies to cut back on their losses pertaining to false claims. As per Life insurance Council, the formalities to engage Experian for this project will be done by the end of this month. While the IRDAI is busy building an insurance information bureau for its members that is expected to complement the fraud monitoring network. With proper measures such as these, it is speculated that the comparatively lesser fraud cases faced by life insurers will be completely removed.

        3rd September 2015

      • Life insurers to streamline timely pension payment

        IRDA has directed the life insurers to streamline the process to ensure timely pension payment to the policyholders. The Insurance Regulatory and Development Authority of India has asked the life insurers to start communicating with the policyholder and check what option they have chosen for their pension.

        The IRDAI circular said that the policyholders are opting for annuity options and the policyholders receive a lump sum amount which is given out as regular income for the rest of his life. It can be either immediate annuity or deferred annuity. Immediate annuity starts giving returns from the very first month whereas the deferred annuity starts giving payment after a certain period.

        The circular will enable the policyholders to receive post-retirement benefits on time. The life insurers ought to know 6 months in advance the settlement that the policyholder chooses. This is initiated to ensure better corporate governance. If the policyholder has not indicated any particular option, then the life insurer can go as per the option mentioned in the form filled at the time of buying the product.

        IRDAI has also told the insurers that they must provide an option to the policyholders to review their decision based on the latest information and select an annuity option that was not mentioned earlier.

        11th August 2015

      • Insurance regulations are being reviewed by three new committees

        The Insurance Regulatory and Development Authority of India (IRDAI) has recently formed three new committees to look into the current regulations in the life insurance, general insurance and reinsurance sectors in India. This is a move that has been required ever since the new Insurance Laws Amendment Bill had been passed by Lok Sabha on the 4th of March this year.

        The current regulations in the three segments mentioned above are going to be thoroughly investigated to make way for reforms and changes in the existing regulations to stay updated with the new Bill, and provide excellent benefits to the people in general.

        The first of the three committees, the life insurance committee, will look into current regulations and look for possible reforms in the areas of assets and liabilities, solvency margin, and appointed actuaries.

        The second committee, which is the general insurance committee, will primarily look into the regulations and possible reforms primarily in the areas of claim reservation, reinsurance and appointed actuary.

        The third and final committee – the reinsurance committee – will look primarily into possible reforms on current regulations in the registration of branches of foreign reinsurance companies, among other issues.

        All three committees will have to submit their reports within one month to the Member-Actuary of the IRDAI for review.

        27th July 2015

      • Life insurance industry’s premium collection grows by 24% in the current fiscal year.

        The life insurance industry in India witnesses a growth of 24% in its total premium collections. Its total premium collection grows to Rs. 13,651 crore in the first two months of the present fiscal year, compared to its total business of Rs. 10,984 crore in the previous year. In the same period, the Life Insurance Corporation of India also makes a good recovery with 21% growth in its total premium mop-up at Rs. 9,384 crore. In the previous year, the corporation's business remained at Rs. 7,757 crore.

        LIC’s business has also witnessed growth by 61% in the first two months of the fiscal year. There is a growth in LIC’s number of policies by 20% to 19, 71,713 in this year, compared to 16, 36,831 policies in the previous year. As a whole, the volume of business in group single premiums increased by 64 % to Rs. 7,694 crore in April-May from its previous amount of Rs. 4,683 crore.

        15th July 2015

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