Aviva Life introduces rural micro insurance

Aviva Life Insurance, the 74:26 joint venture between between Dabur and UK's largest insurance group, Aviva Plc, today introduced Grameen Suraksha, a micro-insurance rural term insurance plan for BASIX customers. This traditional term plan has been developed with the objective of giving the rural policyholder maximum benefits. Grameen Suraksha is designed such that it reduces the burden of the policyholder to pay premium year after year. Instead, under this plan, the policyholder pays premium for a period of just two years and then avails the term benefit for either five or 10 years.
In case the policyholder is unable to pay the 2nd annual premium, the plan will still offer a full cover for 18 months or 48 months from the due date of unpaid premium for the five-year or the 10-year policy plan respectively. In addition, tax benefits can be availed as per Section 80C of the Income Tax Act, 1961. Bert Patterson, managing director, Aviva Life Insurance, India said, "Aviva has been a serious player in the micro insurance arena. We have been associated with BASIX since 2002 and together we have insured lives of many in the social sector. With the launch of Grameen Suraksha for BASIX customers, we hope to increase our reach and provide the benefits of life insurance to maximum number of people in rural and social sector. Aviva India has covered close to 900,000 lives in the social sector in association with BASIX and other microinsurance organizations." Under the new plan, the premium is calculated based on the sum assured and age (18to 45 years) of the policyholder. The minimum sum assured is Rs5,000 and the maximum is Rs50,000. The policyholder also has the option of surrendering the policy in which case the surrender value is then paid.

Source: Domain-b

LIC to sell policies in Saudi Arabia through JV

Mumbai: Life Insurance Corporation of India (LIC) will soon start selling insurance policies to the public in Saudi Arabia through a three-way joint venture set up for the purpose.
LIC along with general insurer New India Assurance and Saudi Arabia's Al-Hokair Group has set up Saudi India Company for Cooperative Insurance (SICCI), which recently issued an initial public offering (IPO) for 40 per cent of the shares and raised 40 million Saudi rials (about Rs46 crore).
The regulations in Saudi Arabia require new insurance companies to offer 40 per cent of the shares to locals before starting operations.
LIC expects to get an operating license by July/August end. LIC along with its subsidiary, LIC International, holds 20.4 per cent stake in SICCI, while New India Assurance has 10.6-per cent stake and Al-Hokair Group 29-per cent stake. The IPO for the 40-per cent stake was subscribed 8.5 times.
LIC is also working towards setting up representative offices in Singapore and the United States of America. In January 2007, the Insurance Regulatory Development Authority (Irda) had issued regulations for insurance companies wanting to open representativeiaison offices overseas.
LIC started its Bahrain operations in 1989. LIC (International), Bahrain operates in Bahrain, Saudi Arabia, Oman, Qatar, UAE and Kuwait, and has permission to sell insurance only to non-resident Indians.

Source: Domain-b

India's first insurance shopping website launched

Mumbai: India's first insurance shopping website in India was launched in Mumbai. The site, insurancemall.in offers customers complete insurance solutions including an online choice between the products of leading insurance companies, online purchase and claims assistance.
The site provides indigenously developed 'quote-engines' to compare, choose and buy bvarious insurance policies online. The website also offers complete portfolio management (renewal auto- reminders to advisory) and claims assistance on policies purchased.
Speaking at the launch of the website, Manish Jaiswal, founder and CEO, Bonsai International Group, said, "The timing is ideal for insurancemall to enter the Indian market. Besides witnessing 100 per cent y-o-y growth, the Indian insurance industry has been going through many transformations like detariffing, impending entry of new insurance companies, launch of new products, which will create more choice for the Indian Insurance customer."
While all the products will be sold online, the website has set up an offline customer service and operations infrastructure to assist insurance buyers shop as well take care of their claims.
Mahavir Chopra, head, eBusiness, said, "E-distribution of insurance is still to take off in India with only two insurance companies offering online issuance. We intend to help net enable the entire offline insurance industry for the customer."
Through one of the group's subsidiaries, the website has also been scaled to the US, which is among the most mature insurance markets. "Our indigenous engine being completely flexible, we plan to scale the website with offerings from across the globe." said Niraj Jain, principal officer.
About Bonsai International Group started in 2004 is an integrated full service financial services group of companies in the insurance broking and money changing business. The website is part of Bonsai's efforts to provide customers with tech-leveraged innovative solutions.

Source: Domain-b

Private insurers` ULIPs beat Sensex in returns

Unit-linked insurance plans (ULIPs) of private life insurers have outperformed the Sensex over the last six months and three months.

While the 30-share benchmark index of Bombay Stock Exchange has gained only 5.24 per cent during December-May, the ULIPs of most private insurers have gained in the range of 6-17 per cent.

Tata AIG Life Insurance’s equity fund led the pack, providing absolute returns of 15.99 per cent in the last six months, followed by Bharti Axa Life Insurance’s Grow Money with 14.69 per cent returns.

Sensex was at 14,411.38 on May 29, at 14,092.9 on January 30 and 13,693.31 on November 30. Two more funds from Tata AIG have made it to the top five, namely Aggressive Growth (12.13 per cent) and Growth Fund (11.84%). The other entrant in the top five is Max New York Life Insurance’s Growth scheme with 10.47 per cent returns.

The data on absolute returns, compiled by India Insurance Research & Consultants, was calculated by considering the net asset value on the last day of May, February and November, 2006.

The ULIPs have gained popularity in the last few years, primarily because of their simplicity and transparency. The tax saving aspect has also added more value to these products.

During Mar-May, while the Sensex gained 2.25%, Tata AIG’s Equity Fund gave a return of 16.74 per cent, followed by Reliance Life Insurance’s Equity scheme with 15.18 per cent and Kotak Mahindra Old Mutual Life Insurance’s Aggressive Growth scheme, which reported 14.77 per cent returns.

Bajaj Allianz Life Insurance’s Equity Index II (14.09 per cent) and MetLife India Insurance’s Multiplier (13.37 per cent) have also made it to the top five during Mar-May.

Source: Business Standard

Star Health offers policies for aged, diabetics

Coverage for HIV patients soon

Chennai, July 5 Star Health and Allied Insurance Company today launched two new policies—one for elderly people, aged between 61 years and 69 years and another for known diabetics.
At a press conference here, the company’s Chairman and Managing Director, Mr V. Jagannathan, said that the policy for the elderly, called ‘Senior Citizen’s Red Carpet Policy’, would be offered with no pre-acceptance medical screening. Those in the eligible age group could even buy the policy on-line. Once covered, they could continue to be covered for life—renewal would not be denied even after they leave the age bracket, Mr Jagannathan said.
The policy costs Rs 5,000 a year for a sum insured of Rs 1 lakh and Rs 10,000 for Rs 2 lakh. Those who have no illness would be given a ‘good features discount’ of 10 per cent.
The ‘Diabetes Safe’ policy is meant for known diabetics and will cover complications arising out of diabetes such as diabetic retinopathy requiring laser procedure, diabetic nephropathy leading to chronic renal failure requiring dialysis or transplant surgery and diabetic foot ulcer requiring micro vascular surgery. Annual premium starts from Rs 805.
Mr Jagannathan said that Star Health would soon launch two more policies. One is for those who are ‘HIV positive’. Policy holders will get a lumpsum payment if they become a full blown AIDS patient.
“There are 5.7 million HIV positive people in India, of whom 0.75 million are full blown AIDS patients,” he said, observing that there was a need for offering them coverage. The other policy will be a “high-end” one, assuring sums upwards of Rs 10 lakh.
Star Health, the country’s only stand-alone health insurance company, earned premium income of Rs 100 crore in the first 12 months of its operations, ending May 2007.
Mr Jagannathan said the company’s premium income this year would be over Rs 250 crore. Thus far in the current year, Star Health has earned a premium of Rs 41 crore, he said.
Star Health’s 100th branch in the country, at Kolkata, was inaugurated here today by the Chairman and Managing Director of Indian Bank, Mr M.S. Sundararajan. Mr Jagannathan said the insurance company would add 28 branches this year.

Source: The Hindu Business Line

Australian firm in fray for HDFC`s Chubb stake

Australia-based Insurance Australia Group (IAG) is in advanced talks to buy a 26 per cent stake in HDFC Chubb General Insurance, following the buyout of Chubb’s stake by HDFC.

Sources said the two other strong contenders were Germany-based Ergo, part of the Munich Re Group, and US-based Travelers.

“We are still examining the proposals. It is too early to say anything now,” said a HDFC executive, when contacted.

IAG, which operates in Australia, New Zealand, Asia and the UK, underwrites more than $7.5 billion of insurance premiums each year. The group insures more than $900 billion worth of property.

The group’s net assets were $4,517 million on December 31, 2006. Last year, IAG had acquired leading motor insurance broker Hastings Business and Equity Insurance Group of Europe.

This May, HDFC bought out Chubb Global Financial Services Corporation of the US. HDFC ended its joint venture with Chubb Corporation following differences over the style of running the business and risk appetites. The buyout price was not disclosed. The joint venture’s capital is currently Rs 125 crore.

HDFC Chairman Deepak Parekh had said earlier that he expected to receive a premium for the 26 per cent stake in HDFC Chubb. He had also said HDFC had been allowed to use the HDFC Chubb name for two months. The corporation said it expected to have a partner before the renaming.

Source: Business Standard