Month: October 2012

Insurance News 

General Insurance: Government, industry to prepare road map boosting general insurance

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The government along with the industry will prepare a road map for improving penetration of the general insurance in the country which is less than one per cent, a senior official said.

“Our (general insurance) penetration rate is low. It is 0.7 per cent. How do we improve it to average standard which is 1.5 to 4 per cent? The road map is to be prepared by all of us”, Financial Services Secretary D K Mittal said.

He was speaking to reporters after meeting of the representatives of the general insurance industry with Finance Minister P Chidambaram. Read more

Caselaws: Motor Insurance 

General insurers to seek bailout from Finance Minister

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After life insurers, it’s general insurers who are knocking at the finance minister’s door, calling him to save the industry from a worsening situation.

Finance minister P Chidambaram will meeting general insurers in New Delhi recently to understand the problems of the industry.

The Rs 60,000 crore general insurance industry is in crisis as all its vital financial parameters are shaky despite the sector showing a growth of 20-25 per cent in premium collection. Its massive losses (over Rs 10,000 crore in 2011-12) are a result of cut-throat competition post detariffing period, regulated third party motor premium and losses in health insurance portfolio. Read more

Insurance News 

National Insurance Company to pay Rs 25.17 lakh as compensation

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The Motor Accident Claims Tribunal (MACT) has granted a compensation of Rs 25.17 lakh to the parents of a youth, who was killed in a road accident in 2010.

The MACT asked National Insurance Company Limited, with which the bus was insured, to pay the money to the parents of Akshay Soloman, who had died after it hit him from behind. “I award Rs 25.17 lakh as compensation with interest at the rate of 7.5 per cent per annum including interim award, if any from the date of filing the petition (December 13, 2010) …, in favour of the petitioner and against the respondents on account of their liability being joint and several. Read more

Insurance News 

Government-sponsored health insurance in India: Are you covered?

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Health spending is one of the important causes of poverty in India. The country’s public financing for health care is less than 1% of the world’s total health expenditure, although it is home to over 16% of the world’s population. Families meet almost 70% of their health expenses out of their own pockets, placing considerable financial burden on poor households, often pushing them deeper into poverty. Read more

IRDA in India 

IRDA NEWS: IRDA draft on paint material may bring down motor premium

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The exposure draft of IRDA (Insurance Regulatory and Development Authority) has proposed to include paint material in the list of items which have depreciation rates. The move is aimed at having a uniform practice across the country and across all the non-life insurance companies. Read more

Insurance Career 

LIC’s key to success: Incentives and perks to keep agents performing

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Insurance agents of Life Insurance Corporation (LIC) may not be employees of the giant Government owned insurer, but then LIC is not your standard PSU. A key reason why LIC has managed to hold its own against private competition is its hundreds of thousands of agents who procure the vast bulk of its business. The insurer has, over the years, honed a complex system of incentives and perks to keep its agents performing. Read more

Caselaws: Life Insurance 

HDFC Standard Life Insurance asked to pay Rs five lakh

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Insurance Ombudsman in Chandigarh has asked private insurer HDFC Standard Life Insurance to pay Rs five lakh with interest to an NRI complainant after holding the company responsible for mis-selling a policy.

“An award is passed with a direction to the insurance company to make payment of Rs five lakh with interest at rate of eight per cent from the date of complaint that is March 2, 2010,” said Insurance Ombudsman (Chandigarh), Manik Sonawane in his order. Read more

Insurance News 

IRDA member decries low penetration of general insurance

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The low penetration of general insurance companies is a major concern, said M Ramaprasad, member, Insurance Regulatory and Development Authority.

Speaking at a meeting organised by the National Insurance Academy, Pune, he said the non-life penetration was 0.7 per cent of the gross domestic product, a very low number. “The stagnant rate of penetration in non-life insurance is an issue,” he said. Read more