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The insurance regulator has asked companies to play an active role in the general meetings of investee companies and engage with the management at a greater level to improve governance so as to increase returns on investments for insurers.

“Insurance companies are significant institutional investors in listed companies and the investments are held by them as custodians of policyholders,” Insurance Regulatory and Development Authority (Irda) stated in a circular. “Therefore, it is felt that insurance companies should play an active role in general meetings of investee companies and disclosures relating thereto.

This will be applicable from next financial year.
The regulator said the state of governance at the companies where insurance companies have invested is important. It has also laid out a set of principles, which insurers will have to adopt. The principles are being uniformly adopted for institutional investors like mutual funds, pension funds, foreign portfolio investors and alternate investment funds

(Source : Economic Times – 24th March,2017)

 

KRA- Health Insurance Cost to more

Biggest non-life insurer hikes med rates by 25%

Mumbai: India’s largest nonlife insurer New India Assurance (NIA) has increased premium on health insurance by an average of 25% for individuals. Along with the revision in rates the company has done away with the rate differential based on region and has introduced a uniform rate across the country.

Announcing the company’s results on Friday, chairman G Srinivasan said that although the ratio of claims to total premium in health insurance had improved from 116% to 105% following an increase in group rates, it continued to be a loss-making busi- ness. Despite the underwriting losses New India Assurance has reported a net profit of Rs 1,008 crore for FY17—an increase of 22% over Rs 829 crore in FY16.Besides being the largest non-life company, NIA is also the largest health provider in the country.

The Insurance Regulatory and Development Authority of India (IRDAI) allows companies to revise their rates once every three years to keep up with medical inflation. New India Assurance had last revised rates on individual health insurance five years ago in 2012.

( Source : Economic Times. 5th May 2017 )

KRA- DHFL General Insurance to start operation soon

DHFL General Insurance on Thursday said it has received certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) and will start its business operations soon.

The venture has been promoted by Wadhawan Global Capital(WGC), whose flagship brand is Dewan Housing Finance Ltd (DHFL), a listed entity.

Our general insurance venture would help us in our commitment to offer protection and mitigate the economic effects of illness, accidents, death, disability and disasters,” Kapil Wadhawan, chairman of WGC, said in a statement.  (READ MORE)

“It also helps us provide the protection for assets as a safety net to cope with economic consequences of unexpected events,” said Wadhawan, who is also chairman of DHFL General Insurance.

Along with the traditional channels, the focus of this new venture would be to give a cutting edge digital experience to the customer that will empower them to take insurance buying decisions, he added.

“DHFL General Insurance will focus on providing a positive customer experience not only at the point of sale but across the customer engagement cycle to ensure customer retention,” said Vijay Sinha, CEO-designate of DHFL General Insurance.
                                                            (Source : The Times of India 26/05/2017)

Insurance Regulatory & Development Authority of India (IRDAI) has further extend the grace period for renewal of life insurance policies which were due in March.

The new extended date is 31st May as the lockdown has been extended twice by the authorities to fight the Covid-19 pandemic.

Earlier on March 23rd and April 4th, the insurance regulator had announced an additional grace period of 30 days for the policies which were due in the month of March and April.

The regulator while allowing the grace period has kept in mind the difficulty faced by some policy holders to renew their policies on time.

IRDAI said, “On a review of the recent situation of lockdown resulting from global pandemic of COVID-19 across the country and representations received, it has been decided that, for all life insurance policies where the premium falls due in the month of March 2020, the grace period shall be allowed till May 31, 2020.”

IRDAI further said, “All policyholders are requested to note that the objective of grace period allowed is to pay all the premiums due within that period so as to keep the policy coverage in force.”

The insurance regulator also said all the life insurers are equipped with digital channels to provide policy holders to pay their premium online.

(SOURCE: Economic Times- May 11, 2020)

In India, many people avoid buying insurance, thinking it is an unnecessary expense. People in their early 20s believe that they are fit and nothing can happen to them ever. Some, on the other hand, believe that they need to start worrying about health only after they reach 50 years of age. However, that’s not what research tells us. Statistics reveal that 15 – 20 percent of heart attack patients are between 25 and 35 years of age. That’s not only shocking but also scary. So, it’s best not to put off buying insurance.

With the spike in unexpected diseases like COVID-19 and rise in uncertainty, people realise the importance of long-term health insurance plans. It’s always advisable to take an insurance plan as early in life as possible. It allows you to be independent and afford the best quality of care. It reduces the financial and psychological stress that illness can impose on your family.

Now the question is, why should you consider a long-term health insurance policy? Here are the reasons:

1. Hassle-free renewal

A long-term health insurance policy keeps you protected for a minimum of 2-3 years. During this period, you don’t have to worry about the cost of health expenditures. It is a big relief at a time when unannounced diseases are on the rise. Once you enrol yourself with long-term health insurance, you don’t have to worry about renewing the policy at least for the next two or three years. There will also be no hassles of missing the deadline or complicated paperwork. For the long term, it also reduces the pain of hospital fees, and one can be financially independent.

2. Helps you save tax on your income

Long-term health insurance is a basic essential that can also help you on your tax savings. As per section 80D of the Income Tax Act you get to enjoy tax deduction on the premium you pay. So, if you get a health plan for yourself and your parents, then you could enjoy tax exemption up to Rs 50,000. For a few saving taxes through this method might look a difficult option, but it’s not. These are the most convenient options and one can save a lot of tax. Please make sure  you invest in those plans which suit your income.

3. Discounted Premiums

The best benefit that an insurance seeker can get from long-term health insurance is the lowered premium rates. Long-term health insurance plans are likely to come up with a discounted premium as compared with the short-term health insurance plans.

4. May also cover pre-existing diseases

Pre-existing diseases or pre-existing conditions are an important factor in your health insurance. It basically refers to the diseases or ailments you were suffering from at the time you bought your policy. A few insurance companies do give you the options of PED in their long-term insurance plan and one can decide accordingly by going through its terms and conditions.

5. Being able to afford proper healthcare

As we grow older, we need more medical attention and doctor’s visits. Expenses such as hospitalization, daily care, room rent, ambulance and medicines can cost you a bomb. Thus, the frequency and types of treatments can quickly become a financial burden to anyone. Whether for your health, kids or parents, it is always better to choose long-term health insurance plans.

One of the biggest examples of health tragedy is COVID-19 which shook the entire world. In such situations, people dip into their savings or take loans or sell assets to fund treatments. However, the smart thing to do is to take a health insurance plan – this will help you to secure your finances and health at the same time.

Long-term health insurance is undoubtedly the most economical and viable health and practical choice, given the increase in lifestyle diseases in today’s day and age. By getting a long-term health insurance policy, one doesn’t have to bother about health coverage at all and can lead a stress-free life. Therefore, customers must consider various options available and choose a health insurance plan that best suits their medical needs and that of their families.

(SOURCE: Economic Times- May 11, 2020)

Insurance  Regulatory and Development Authority of India (IRDAI) has approved the 2nd tranche of approvals under the regulatory sandbox.

The regulator had invited applications in September 2019 and an evaluation committee constituted by the regulator has shortlisted the applications and sent its recommendation to the regulator.

The approvals for life and non-life insurer is from 1st May 2020 to 31st October 2020.

Sr. No Insurer Proposal Name
1 Bajaj Allianz General Insurance Co Ltd V-Pay Motor Insurance Product
2 TATA AIG General Insurance Co Ltd Standalone Own Damage Agreed Value Two Wheeler Policy
3 Go Digit General Insurance Ltd Network based Accidental Insurance for Rented Motor Vehicle
4 Reliance General Insurance Co Ltd Livelihood Protection
5 TATA AIG General Insurance Co Ltd Parametric Insurance
6 TATA AIG General Insurance Co Ltd Credit Insurance for TReDS Platform
7 Bajaj Allianz General Insurance Co Ltd Total Business Protection
8 ICICI Lombard General Insurance Co Ltd Trade Credit Insurance for SMEs
9 TATA AIG General Insurance Co Ltd Loss Limit Insurance
10 ICICI PruLife Insurance Co Ltd Loyalty program
11 India First Life Insurance Co Ltd Loyalty program
12 HDFC Life Insurance Co Ltd Health India Account
13 ICICI PruLife Insurance Co Ltd Health Savings
14 ICICI PruLife Insurance Co Ltd Outpatient Health cover
15 ICICI PruLife Insurance Co Ltd Disease management
16 ICICI PruLife Insurance Co Ltd Dynamic term cover

 

(SOURCE: Economic Times- April 1, 2020)

Women in urban India registered a sharp increase in life insurance ownership and awareness over the last 12 months, according to Max Life Insurance’s India Protection Quotient 2.0 (IPQ 2.0) survey released in conjunction with Mother’s Day.

(SOURCE: Asia Insurance Review- May 11, 2020)