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Canara Bank has entered into a MoU with Life Insurance Corporation of India for offering the Pradhan Mantri Jeevan Jyoti Bima Yojana Insurance cover to all its eligible customers. Canara Bank has ...

The financial sector has a pride of place in the equity portfolio of government-owned Life Insurance Corporation of India (LIC), with 53 of its 309 large picks from the sector. 

 

A business ...

The regulator IRDAI  in an attempt to provide the best and cost effective services for the claimants has directed the insurers as well as the TPA's to pass on discounts, if any, given by hospitals to ...

The Insurance Regulatory and Development Authority of India (IRDAI) has directed the  insurers to correct anomalies in product pricing after careful analysis of the  underwriting practices and make ...

The cost of insurance for aviation companies may rise if the Directorate General of Civil Aviation goes ahead with its plans to make it mandatory for pilots to undergo psychiatric test before takeoff ...

The new service tax rate of 14% will come into effect from June 1, top government sources said, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many ...

With the Indian nuclear insurance pool falling short by Rs.600 crore, some foreign companies have shown an interest in being a part of the initiative. "We have pursued some overseas players and have ...

  

Life Insurance Council has urged the regulator for 50% concession in re-insurance rate on Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), on account that its members face losses as the premium ...

 

Life Insurance Corporation of India (LIC) is looking to collect at least Rs.31,000 crore as first year premiums from insurance product sales in 2015-16. Not only this it is also planning to ...

 

Life Insurance Council is working hard towards making the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) attractive for its member companies apprehending its viability under the present pricing ...

 

Life Insurance Corporation of India (LIC) reported a surplus of Rs.1,803.05 crore in FY 15, up 10.33 per cent over the previous year. The surplus in policy holders' accounts was reflected after ...

 

State owned reinsurer General Insurance Corporation Re has abandoned its expedition to buy a Lloyd's of London syndicate member and instead eyeing to apply for membership of the syndicate.

 

...

A survey by Bajaj Allianz General Insurance said although 75 per cent of respondents were aware that home insurance was essential, only 30 per cent had home insurance for either their home or its ...

 

Life Insurance Corporation of India (LIC) will recruit 5,066 people for the post of Apprentice Development Officers in its various zonal offices. The total number of vacancies, including those on ...

The Securities Appellate Tribunal (SAT) has adjourned an appeal against the IRDAI  in a hearing between SBI Life and the Insurance Regulatory and Development Authority of India (IRDAI). 

 

The case ...

The Insurance Regulatory and Development authority of India (IRDAI), in its new draft on investments, said that the equity investments in CNX 200 or BSE 200 can only be considered as approved ...

The insurance coverage in the agriculture sector needs to be enhanced to protect the interest of farmers as well as banks lending to this sector, as per the Financial Stability Report released by the ...

State owned re-insurer General Insurance Corporation Re (GIC) has announced a profit of Rs.2,693 crore to 2014-15, an increase of 20 per cent over the previous year. Gross premium rose by a mere ...

The Department of Financial Services (DFS) has given the green signal to Kotak Mahindra Bank's proposal to increase the foreign investment limit in the bank to 55 per cent from about 49 per cent ...

Life Insurance Corporation had committed to invest Rs 1.5 lakh crore in Indian railways over the next five years. As per the terms of the MOU inked by the two organisations, the railways will use the ...

Canara Bank has entered into a MoU with Life Insurance Corporation of India for offering the Pradhan Mantri Jeevan Jyoti Bima Yojana Insurance cover to all its eligible customers. Canara Bank has also partnered with the United India Insurance Company for offering the Pradhan Mantri Suraksha Bima Yojana Insurance cover. According to the MoU, LIC will offer a life cover of Rs.2 lakh in cash for death of the insured person at a nominal premium of Rs.330 per annum. 

 

All savings bank account holders in age group of 18 to 50 years can avail the of product, the bank said. Similarly, United India Insurance will give accident insurance scheme offering cover for death or disability on account of an accident. 

The financial sector has a pride of place in the equity portfolio of government-owned Life Insurance Corporation of India (LIC), with 53 of its 309 large picks from the sector. 

 

A business Standard analysis of data showed with significant holdings in 33 banks, both private and public sector that, LIC's financial sector investments are a little over than Rs.1 lakh crore or 25.7 per cent of its total equity assets of Rs.4.14 lakh crore as of March. 

 

The exposure, at par with banks and financials' weight age in the BSE 500 index at 25.4 per cent, is a slight increase over the previous year. The data is the aggregate of LIC's stake in companies in which it holds more than one per cent. As the companies don't have to disclose the names of investor holding less than one per cent, LIC's holdings in companies below this limit isn't available in the public domain.

 

During FY 14, the financial sector accounted for 25.25 per cent. The members assume significance as LIC has been playing a key role in capitalizing of public sector banks. During financial year 2014-15, it bought additional shares of UCO Bank, Union Bank, Canara Bank, Bank of India and Central Bank of India. 

 

This was offset by profit booking in State Bank of India, HDFC Bank and Axis Bank, keeping the overall weightage around 25 per cent. Over five years, the insurer's financial sector exposure has remained in a range between a low of 25.3 per cent in March 2010 and a high of 27.2 per cent two years later. However, the number of financial companies has inched up gradually from 43 in 2010 to 53 now. 

The regulator IRDAI  in an attempt to provide the best and cost effective services for the claimants has directed the insurers as well as the TPA's to pass on discounts, if any, given by hospitals to policyholders. 

 

"While every insurer and TPA shall endeavour to get the best and cost effective services to the policyholders or the claimants of health insurance policies, it shall be ensured that the discounts obtained from the hospitals, if any, are passed on to the policyholders or the claimants of the underlying health insurance policy," IRDAI said. 

 

Going forward it has also asked the hospitals to reflect such agreed discounts in the final hospitalization bill of each claim, so that the policyholder or the claimant is aware of the actual  bill raised by the hospital. 

The Insurance Regulatory and Development Authority of India (IRDAI) has directed the  insurers to correct anomalies in product pricing after careful analysis of the  underwriting practices and make things easier for policy holders. 

 

"The (insurance) companies need to correct aberrations that exist in terms of adequate pricing based on scientific analysis of claims," Senior Joint Director of IRDAI Suresh Mathur said while speaking at a insurance summit in Kolkata organized by the Bengal Chamber of Commerce and Industry recently.

 

"It is also important for the industry to take a collective call to correct the aberrations that exist in terms of pricing…. This is one area where the industry needs a concerted effort to price risk and look at underwriting practices," he added. Insurers have so far been maintaining a register of policies and claims, in accordance with the provision of the insurance Act 1938. However, post amendments the Act has facilitated maintenance of such a register in electronic form too. 

The cost of insurance for aviation companies may rise if the Directorate General of Civil Aviation goes ahead with its plans to make it mandatory for pilots to undergo psychiatric test before takeoff as any failure to clear the test could lead to flight cancellations and claims. 

 

This might be just another burden for an industry already facing higher cost of insurance after a Malaysian Airlines flight vanished over South China Sea with 239 people aboard last year and due to accidents in the aviation industry. 

 

Airlines in India, mostly loss-making, may be squeezed further if the DGCA implements the plan. Insurance companies are yet to ascertain the liabilities of such an event since there is no available model to factor in such risks into a policy. 

 

"Initially, there will be loading, but based on experience in the first two years, there will be better understanding of the risk," said T. R. Ramalingam, head of underwriting at Bajaj Allianz General Insurance. 

 

Insurers are waiting for the final word on the mandatory test, which the DGCA is contemplating following the crash of the Germanwings aircraft in the French Alps last month, which killed at least 150 people. 

 

"There will be an increase in premium for pilot's loss of licence cover but reinsurance companies could look at it positively and reduce reinsurance rates," said Yogesh Lohiya, MD and CEO, Iffco Tokio General Insurance. 

The new service tax rate of 14% will come into effect from June 1, top government sources said, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things. 

 

In his budget speech, Jaitley had said that to facilitate a smooth transition to levy of tax on services by both the Centre and the states, "it is proposed to increase the present rate" of service tax plus education cess from 12.36% to a consolidated rate of 14%. Service tax is levied on all services, expect a small negative list. Advertising, air travel, services of architect, certain type of constructions, credit card, even management, and tour operator are some of the important services which attract tax. 

With the Indian nuclear insurance pool falling short by Rs.600 crore, some foreign companies have shown an interest in being a part of the initiative. "We have pursued some overseas players and have received good response. 

 

Six companies came with Rs.150 crore. Now, it has become Rs.900 crore. We are putting all out effort into rising the remaining Rs.600 crore for operationalising the pool," said Y. Ramulu, GM of General Insurance Corporation (GIC) of India. 

  

Life Insurance Council has urged the regulator for 50% concession in re-insurance rate on Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), on account that its members face losses as the premium may not be sufficient to cover the cost. 

 

The council is also in the verge of  approaching the  states to waive stamp duty of $40 for improving the  viability of the scheme. Recently, out of 24 life insurance companies, 10 have joined the national programme, offering Rs.2 lakh sum assured in case of death of a policy holder on an annual premium of just Rs.350.

 

Insurance companies will get just about Rs.249 after deducting towards bank commission and stamp duty, which many believe is not going to cover the cost of insurance.

 

Banks that are mandated to sell the social security scheme have sold 2.5 crore life insurance policies since May Insurers will have to pay Rs.100 crore as stamp duty collectively.

 

Insurers have also expressed concerns over duplication of death claims and the council has engaged Credit Information Bureau (India) Ltd or Cibil to detect them. Cibil has built a database of 40 crore bank customers and 2.3 crore commercial loans, beside repository data of one crore mortgages. 

 

Life Insurance Council has urged the regulator for 50% concession in re-insurance rate on Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), on account that its members face losses as the premium may not be sufficient to cover the cost. 

 

The council is also in the verge of  approaching the  states to waive stamp duty of $40 for improving the  viability of the scheme. Recently, out of 24 life insurance companies, 10 have joined the national programme, offering Rs.2 lakh sum assured in case of death of a policy holder on an annual premium of just Rs.350.

 

Insurance companies will get just about Rs.249 after deducting towards bank commission and stamp duty, which many believe is not going to cover the cost of insurance.

 

Banks that are mandated to sell the social security scheme have sold 2.5 crore life insurance policies since May Insurers will have to pay Rs.100 crore as stamp duty collectively.

 

Insurers have also expressed concerns over duplication of death claims and the council has engaged Credit Information Bureau (India) Ltd or Cibil to detect them. Cibil has built a database of 40 crore bank customers and 2.3 crore commercial loans, beside repository data of one crore mortgages.

 

 

Life Insurance Corporation of India (LIC) is looking to collect at least Rs.31,000 crore as first year premiums from insurance product sales in 2015-16. Not only this it is also planning to  introduce five to seven new insurance products during the fiscal year according to LIC chairman S. K. Roy.

 

 

“We will introduce at least one new product in the Unit-linked space, one in the health insurance space and the rest in the traditional insurance space. Our new business premium collection target for the current fiscal is 13% higher than last financial year,” Roy reported.

 

 

With the soaring aim, LIC has taken steps to further advance its technology and processes to make transactions paperless for policyholders. It is also looking forward to expand its international operations and will soon form a joint venture to enter the insurance market in Bangladesh along with its Singapore operations to a full-fledged insurance business this financial year, Roy said.

 

Life Insurance Council is working hard towards making the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) attractive for its member companies apprehending its viability under the present pricing policy. Secretary General of the council V. Manickam said that, out of Rs.330 charged for the Rs.2 lakh sum assured, insurance companies are left with only about Rs.250 after deducting bank commission and stamp duty.

 

Apprehending the scheme's viability, the council has already written to industry regulator IRDAI seeking its intervention in getting 50 per cent rebate in current re-insurance rate of Rs.180 on this policy promoted by the centre. 

 

 

Life Insurance Corporation of India (LIC) reported a surplus of Rs.1,803.05 crore in FY 15, up 10.33 per cent over the previous year. The surplus in policy holders' accounts was reflected after paying an interim bonus of Rs.1,899.75 crore to its policy holders. 

 

Life Insurance Corporation of India has also proposed the entire surplus amount to be paid as its final dividend to the shareholder - the Union government. The LIC board approved the audited financial results in its meeting on June 9.

 

LIC's surplus was pushed up by a higher income from investments and lower commissions and operating expenses. Premium income grew marginally by 1.15 per cent to Rs.2.39 lakh crore.

 

While non-business recorded 3.8 per cent growth, linked life policies recorded a lower premium income declining from Rs.1.885 crore to Rs.1,314 crore. Profit booking on investments was the next major contributor, rising from Rs.3.908 crore or 16.75 per cent over the previous year to Rs.27.234 crore. Bulk of this income come from non-linked or traditional life policies.

 

These policies accounted for 75 per cent of the interest and dividend income and 66 per cent of the profit on sale redemption, almost in line with the previous year. LIC had a good year booking significant profit on scrips such as State Bank of India, Business Standard had reported recently. 

 

Loss on sale and redemption of investments also increased significantly, but on a low base. Such losses totalled Rs.1.051 crore, up 62 per cent from FY14. 

 

 

State owned reinsurer General Insurance Corporation Re has abandoned its expedition to buy a Lloyd's of London syndicate member and instead eyeing to apply for membership of the syndicate.

 

Experts believe that this will ruin the designated national reinsurer position in about 50 countries for a long time as it will take 18 months to get a licence and years to build a business.

 

"We are planning to apply for a licence to be part of the syndicate," said AK Roy, chairman and managing director of GIC Re. "We have called off our plans to buy a membership, which we pursued for over a year." Lloyd's of London is an insurance market in London's primary financial district the City of London.

 

GIC Re came very close to entering the Lloyd's of London market by acquiring Antares, owned by Lightyear Capital, but lost out to Qatar Insurance Company. Last year, it had acquired Johannesburg based Saxum Re to expand its global footprint. It has a joint venture reinsurance company in Bhutan.

 

One of the reasons for expanding globally is the shrinking of domestic business. Premium on insurance products is not adequately priced, leading to a decline in income from Indian business.

 

A survey by Bajaj Allianz General Insurance said although 75 per cent of respondents were aware that home insurance was essential, only 30 per cent had home insurance for either their home or its contents.

 

While most Indians are aware about the risks around earthquakes and natural calamities for their houses, they still do not purchase home insurance.

 

 

 

Life Insurance Corporation of India (LIC) will recruit 5,066 people for the post of Apprentice Development Officers in its various zonal offices. The total number of vacancies, including those on the reserved category, may increase or decrease and the selection will be based on an online examination and interviews. 

 

As per the notification given by LIC the total number of vacancies varies according to zones. Graduates in any discipline or a Fellow of the Insurance Institute of India, Mumbai are eligible to apply. The upper age limit is 30 for general candidates, 42 for LIC employees and 37 for its agents. Upper age limit is relaxed for reserved categories, according to existing norms. 

The Securities Appellate Tribunal (SAT) has adjourned an appeal against the IRDAI  in a hearing between SBI Life and the Insurance Regulatory and Development Authority of India (IRDAI). 

 

The case relates to a Rs.275 crore refund order the insurance regulatory passed against the life insurer. It had asked SBI Life to refund this policy amount to all policy holders who had purchased it in the past on grounds of irregularities in the way it was sold to customers. The case has been adjourned till September 2. 

 

The Insurance Regulatory and Development authority of India (IRDAI), in its new draft on investments, said that the equity investments in CNX 200 or BSE 200 can only be considered as approved investments. It further added that approved investments would also include debentures by first charge on immovable property. 

 

Rated debentures including bonds along with other secured debt instruments will be considered as approved instruments in equity shares, preference shares and debt instruments issued by All India Financial Institutions. Investment shall be made according to the investment policy guidelines, benchmarks and exposure norms approved by the board of directory of the insurer. 

 

IRDAI said bonds of debentures issued by companies, rated not less than AA or its equivalent and A1 or equivalent ratings for short term bonds, debentures, certificate of deposits and commercial papers by a credit rating agency, registered under SEBI (Credit Rating Agencies) Regulations 1999, would be considered as approved investments.

The insurance coverage in the agriculture sector needs to be enhanced to protect the interest of farmers as well as banks lending to this sector, as per the Financial Stability Report released by the RBI recently.

 

Although the crop insurance business is inherently riskier and costlier compared to other insurance products, the report said, crop failures are not specific to one particular farmer, as weather related events affect entire areas and populations at the same time. 

 

Farmers are often uninterested from buying an insurance products, as insurance companies calculate the loss for individual farmers by taking into account the average yield of the area (block) in the past three to five years. 

 

Though linking crop insurance with bank credit availed by a farmer protects the bank from losses (which indirectly helps the farmers too), it makes the insurance product a 'compulsory' add on cost for a farmer, it said.

 

In order to have faster settlement of crop insurance claims, the IRDAI is actively considering the possible use of satellite remote sensing technology as an efficient and reliable mapping tool for yield estimation, risk assessment, and settlement of crop insurance losses.

State owned re-insurer General Insurance Corporation Re (GIC) has announced a profit of Rs.2,693 crore to 2014-15, an increase of 20 per cent over the previous year. Gross premium rose by a mere 3.4 per cent to Rs.15.18 crore. 

 

Of this, Rs.8,660 crore (57 per cent) was from the domestic market, while the balance was from overseas business. The corporation's investment income rose from 25 per cent to Rs.4,253 crore, while its underwriting losses rose from 50 per cent to Rs.1,335 crore. GIC has declined a dividend of Rs.540 crore (Rs.449 crore) for 2014-15. 

The Department of Financial Services (DFS) has given the green signal to Kotak Mahindra Bank's proposal to increase the foreign investment limit in the bank to 55 per cent from about 49 per cent would not necessarily lead to problems for the banks plan to raise the foreign investment limit in Kotak Mahindra Old Mutual Life Insurance. 

 

When the government raised the foreign investment (FPI/FDI) limit in insurance from 26 per cent to 49 per cent in March, it stipulated that the insurance ventures in the country should remain "Indian owned and controlled”. 

 

This provision had led to fears that the plans of many insurance companies including those of HDFC and ICICI Bank could stumble upon this condition, enforced by the IRDAI given that these (parent) companies are majority foreign-owned although their foreign ownership is widely dispersed (with various FPI stakes) and management is in Indian hands. Kotak Bank holds 74 per cent in its life insurance arm. HDFC holds 74 per cent in HDFC Standard Life while the UK based Standard Life holds the balance stake. 

Life Insurance Corporation had committed to invest Rs 1.5 lakh crore in Indian railways over the next five years. As per the terms of the MOU inked by the two organisations, the railways will use the funds to enhance its capacity.

 

LIC will invest in bonds issued by various railway entities such as Indian Railways Finance Corporation, beginning next fiscal. There would be a five-year moratorium in interest and loan repayment. The bonds will have a tenor of 30 years and will be disbursed over the next five years.

IRDA Exam: Download IC 33 Book as per new syllabus for 50 hours in English, HIndi, Gujarati, Tamil Version(IC33)

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Created on 12 February 2012 Published Date

Appearing for IRDA 50 hours examination for Insurance Advisors. You can download the IC33 books as per the revised syllabus for different languages in India. - English, Hindii, Marathi, Tamil, Telugu, Marathi, Kannada, Malayalam

 

The Books has been prepared by The Chartered Insurance Institute, London. The books is available for free download in 6 languages.

The books has been thoroughly revised and the new book is more student friendly as all the topics has been explained with the help of examples.

You can download the books here:-

IRDA Exam IC 33 English Version

IRDA EXAM 1C 33 Hindi Version

IRDA EXAM IC 33 Gujarati Version

IRDA EXAM IC 33 Tamil Version

IRDA EXAM IC 33 Telugu version

IRDA EXAM IC 33 Malayalam Version

IRDA EXAM IC 33 MARATHI Version

IRDA EXAM IC 33 Kannada Version

 

 

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