SBI Life Insurance posted a net profit of Rs 34 crore for the financial year ended March 31, 2008, in its third consecutive year of profitable operations.
While the private insurer grew premium collections by 92% to Rs 5,622 crore in 2007-08, the new business premium grew 87% to Rs 4,792 crore.
The new business annualised premium equivalent (APE) , a standard measure in the industry that takes single premium at 10%, has grown 93% to Rs 3,481 crore.
SBI Life is also readying itself for an initial public offer sometime later this year, once market conditions turn conducive.
"The growth in bancassurance by 108% over the last one year has contributed significantly to growth," SBI Life Insurance managing director and chief executive officer U S Roy told DNA Money. "We have done almost Rs 1,600 crore of premium in 2007-08 in bancassurance from about Rs 800 crore the previous year. In fact, the branches selling SBI Life products have started functioning on their own momentum."
The life insurer has greater hopes from this channel. "Currently, bancassurance contributes to 38% of the total premium and the target is to increase its share to 50% in the coming years," Roy said.
After growing 100% till December 2007 and about 40% in the fourth quarter, the company is looking at a conservative 75-80% growth this year.
And the company has no immediate plans to raise additional equity. "If at all any equity is needed, it will not be before the third quarter of the current year. A capital of Rs 1,000 crore can take along a business of Rs 7,500 crore," Roy said.
On its proposed public float, Roy said, "Our internal exercise on arriving at actuarial ratios is underway and the first round of findings will be vetted by external agencies in June. And with three consecutive years of profit, we are looking forward for an IPO."
SBI Life's assets under management have more than doubled to Rs 10,493 crore.
For the current year, SBI Life is planning a massive expansion plan in tier 4 towns and certain areas where SBI is not present.
It is also planning a bouquet of health insurance plans, of which the first set of products should be launched shortly.
According to Roy, the piloted microfinance insurance plan "Grameen Shakti" in Orissa has met with huge response. The company now plans to take this low cost simple plan to other states as well this year.
Source: DNA
Tuesday, May 13, 2008
While going for health insurance
Healthcare has suddenly caught the fancy of life insurance companies. Be it lumpsum amount on hospitalisation or ambulance expense reimbursements, the benefits offered under such policies have shot through the roof. Some even claim to cover more than 1,000 illnesses under one policy.
However, before signing the documents for such tempting benefits on the health and hospitalisation side, one should ask a few quintessential questions, lest his claim is denied after he has got a lengthy bill.
Yes, the billboard of the insurance firm would proclaim that no medical tests are required to take the health policy. But, the fact is that there would be conditions laid out on the same. One would either have to declare that he is healthy or he would have to have another policy with the same firm, under which he had undergone a medical examination.
Even though most policies offer the basic benefit of hospitalisation charges reimbursement, there is a minimum period for which the policy holder has to be hospitalised. Usually, insurers ask for a minimum of 24-hour hospitalisation, but a few others put out additional conditions.
One of the life insurance health product insists that the policy holder must be hospitalised for at least two consecutive nights and he must be charged the room rent for at least two days for the claim to be made.
There is also a survival period for the patient, which distributors say is used as an excuse frequently by insurers to deny claims. This basically specifies the minimum period during which the policyholder must be alive for the claims to be payable.
The survival period asked by companies ranges between 30 to 60 days. So, if a survival period of 30 days is specified in the policy and the policyholder dies on the 29th day, none of the medical expenses will be reimbursed.
Few health insurance policies offer post-hospitalisation benefits as well, which is meant for the treatment and care needed after the hospitalisation period, essentially medicines etc. But, companies specify a condition for this too.
For example, a recently launched policy states that the benefits provided for follow-up tests and post-hospitalisation consultation would be given only if the person has been hospitalised for at least five days. The same policy puts another condition to claims for surgery.
If more than one surgery is conducted under one anesthesia than the claim for the severest surgery is paid in full, while only 50% benefit is given for the second surgery. No claim would be paid for any subsequent surgery under the same anesthesia.
The procedure for submission of bills for claims can be another area that one must pay attention to. Most policies ask for original bills and hospital documents for claims purposes.
So, the policy holder might face a problem as he wants to apply for claims to two different health insurance companies. Check, with the insurance firm whether duplicate or attested photocopies of bills are acceptable.
Source: DNA
However, before signing the documents for such tempting benefits on the health and hospitalisation side, one should ask a few quintessential questions, lest his claim is denied after he has got a lengthy bill.
Yes, the billboard of the insurance firm would proclaim that no medical tests are required to take the health policy. But, the fact is that there would be conditions laid out on the same. One would either have to declare that he is healthy or he would have to have another policy with the same firm, under which he had undergone a medical examination.
Even though most policies offer the basic benefit of hospitalisation charges reimbursement, there is a minimum period for which the policy holder has to be hospitalised. Usually, insurers ask for a minimum of 24-hour hospitalisation, but a few others put out additional conditions.
One of the life insurance health product insists that the policy holder must be hospitalised for at least two consecutive nights and he must be charged the room rent for at least two days for the claim to be made.
There is also a survival period for the patient, which distributors say is used as an excuse frequently by insurers to deny claims. This basically specifies the minimum period during which the policyholder must be alive for the claims to be payable.
The survival period asked by companies ranges between 30 to 60 days. So, if a survival period of 30 days is specified in the policy and the policyholder dies on the 29th day, none of the medical expenses will be reimbursed.
Few health insurance policies offer post-hospitalisation benefits as well, which is meant for the treatment and care needed after the hospitalisation period, essentially medicines etc. But, companies specify a condition for this too.
For example, a recently launched policy states that the benefits provided for follow-up tests and post-hospitalisation consultation would be given only if the person has been hospitalised for at least five days. The same policy puts another condition to claims for surgery.
If more than one surgery is conducted under one anesthesia than the claim for the severest surgery is paid in full, while only 50% benefit is given for the second surgery. No claim would be paid for any subsequent surgery under the same anesthesia.
The procedure for submission of bills for claims can be another area that one must pay attention to. Most policies ask for original bills and hospital documents for claims purposes.
So, the policy holder might face a problem as he wants to apply for claims to two different health insurance companies. Check, with the insurance firm whether duplicate or attested photocopies of bills are acceptable.
Source: DNA
Max New York Life Insurance launches SMART Assure
New Delhi: Max New York Life Insurance, a joint venture between Max India Ltd and New York life, today introduced its unit-linked insurance plan 'SMART Assure' plan.
''The plan offers the customer a choice of allocating up to 100 per cent of premium paid beyond specified premium bracket. As the premium amount goes up, the allocation charges keep decreasing with no allocation charges levied on premiums upward of Rs three lakhs,'' a statement said.
Also, it offers an increasing premium option under which the customer has the choice to increase the annual premium by five per cent of the initial premium on each policy anniversary and accordingly the sum assured also increases at five per cent per annum without any additional underwriting.
The plan caters to wide customer segment with the entry age ranging from as low as 91 days to as high as 75 years and the maximum age at maturity of 85 years which makes it an ideal proposition for Senior Citizens seeking insurance coverage along with investments.
''The customer has the flexibility to choose any policy term between 10 years to 30 years with regular payment terms. The minimum premium which can be paid under this plan is Rs 20,000 per month,'' the statement added.
Source: DNA
''The plan offers the customer a choice of allocating up to 100 per cent of premium paid beyond specified premium bracket. As the premium amount goes up, the allocation charges keep decreasing with no allocation charges levied on premiums upward of Rs three lakhs,'' a statement said.
Also, it offers an increasing premium option under which the customer has the choice to increase the annual premium by five per cent of the initial premium on each policy anniversary and accordingly the sum assured also increases at five per cent per annum without any additional underwriting.
The plan caters to wide customer segment with the entry age ranging from as low as 91 days to as high as 75 years and the maximum age at maturity of 85 years which makes it an ideal proposition for Senior Citizens seeking insurance coverage along with investments.
''The customer has the flexibility to choose any policy term between 10 years to 30 years with regular payment terms. The minimum premium which can be paid under this plan is Rs 20,000 per month,'' the statement added.
Source: DNA
Banks, insurers seen going slow on pay hikes
Tuesday, 06 May
Mumbai: Caution will be the buzzword in the banking, financial services and insurance (BFSI) sector this year, as far as increments go. Or, so the indications are, so far.
ICICI Bank, the country’s largest private sector bank, issued a letter to its employees last week stating that the organisation would effect a “realignment” of cost structures and wages in this year of “stable and robust growth.” And now, other banks appear set to tone down increments, too.
“Appraisals will happen, but will be a little less than the 18-20% that was doled out last year,” says the human resource manager of a private sector bank.
But, of course, no company is likely to play Scrooge by chopping off promotions or appraisals drastically, despite the slowing economy and high interest rates, feel HR consultants. The war for talent is nowhere near cooling down yet.
E. Balaji, chief executive officer of HR consulting and recruitment firm Ma Foi Consultants Ltd, said, “Generally, players tend to follow the leader. But in this case, though companies will take a conservative stance, there won’t be any sudden reduction in increments or promotions.
Organisations are bullish on the people front and perceive compensation as a strategic lever in attracting and retaining talent. ICICI is the leader amongst private banks and hence it can afford to not be aggressive on promotions and increments. A decision like this can trigger attrition at the junior level.”
Attrition is a good 20-25% per annum for the larger players in the banking industry.
Subhro Bhaduri, executive vice-president, human resources at Kotak Mahindra Bank said, “Though we have taken a cautious approach, we have nevertheless given promotions wherever necessary. Our average increments this year will be in the range of 13-15%.”
Kotak, which has about 9,000 plus employees, does not have any plan to slow down hirings. Going by Bhaduri, it will hire around 4,000-5,000 people at various levels this year.
S. Bhattacharya, president HR at Axis Bank, said, “ICICI’s decision can soften the market in terms of pay hikes. But we are not cutting down on our hikes and increases this year would be normal, in the range of 13-15%.”
On the flipside, he said ICICI’s decision can trigger attrition in that bank to a certain extent and this can increase supply in the market, thereby reducing the bargaining power of those looking to quit and take up other jobs.
ICICI Bank, with an employee base of over 40,000, is one of the largest recruiters in the private sector, inducting approximately 15,000 people each year. But this year, the bank feels little need to recruit either internally through promotions or externally in an aggressive manner.
However, about 2,500 campus recruits and 1,000 from ICICI Manipal Academy are expected to join the bank this year.
Kris Lakshmikanth, founder CEO and managing director of Bangalore-based HR firm HeadHunters India Private Ltd points out that increments for key performers at ICICI in the past have even been a whopping 100% of basic salaries.
“ICICI may have effected a tight purse as it has one of the largest exposures to overseas assets. It is also their way of telling employees that last year was good, but this year won’t be the same, and thereby arrest unnatural expectations of employees,” he said.
The bank had about $2.2 billion worth of exposure to credit derivatives, and though it has not directly invested in the US market, it has taken a beating due to the depreciation in the value of securities in the global markets, say HR experts.
Meanwhile, the insurance sector, which is grappling with annual attrition as high as 50% in the sales division, and 20-25% in the non-sales divisions, is also seen going slow on increments.
Priya Ranjan, director-HR at Bharti AXA Life Insurance, said, “Last year, the insurance sector witnessed increments to the tune of 14-15%. This year, we will give increments to the tune of 16%, but I think there will be many players who would give much less.”
R. Krishnamurthy, MD (distribution consulitng) of Watson Wyatt, an HR consulting firm for insurance and financial services, said, “ICICI Bank’s decision is a good move to consolidate the frenzied movements in terms of salary hikes that had crept into the BFSI sector. Players will act in a responsible manner, taking stock of the economic situation, and bringing in moderation in pay hikes.”
“The financial services sector could see hikes in the range of 10-15%. This will be the case with insurance also,” he added.
Source: DNA
Mumbai: Caution will be the buzzword in the banking, financial services and insurance (BFSI) sector this year, as far as increments go. Or, so the indications are, so far.
ICICI Bank, the country’s largest private sector bank, issued a letter to its employees last week stating that the organisation would effect a “realignment” of cost structures and wages in this year of “stable and robust growth.” And now, other banks appear set to tone down increments, too.
“Appraisals will happen, but will be a little less than the 18-20% that was doled out last year,” says the human resource manager of a private sector bank.
But, of course, no company is likely to play Scrooge by chopping off promotions or appraisals drastically, despite the slowing economy and high interest rates, feel HR consultants. The war for talent is nowhere near cooling down yet.
E. Balaji, chief executive officer of HR consulting and recruitment firm Ma Foi Consultants Ltd, said, “Generally, players tend to follow the leader. But in this case, though companies will take a conservative stance, there won’t be any sudden reduction in increments or promotions.
Organisations are bullish on the people front and perceive compensation as a strategic lever in attracting and retaining talent. ICICI is the leader amongst private banks and hence it can afford to not be aggressive on promotions and increments. A decision like this can trigger attrition at the junior level.”
Attrition is a good 20-25% per annum for the larger players in the banking industry.
Subhro Bhaduri, executive vice-president, human resources at Kotak Mahindra Bank said, “Though we have taken a cautious approach, we have nevertheless given promotions wherever necessary. Our average increments this year will be in the range of 13-15%.”
Kotak, which has about 9,000 plus employees, does not have any plan to slow down hirings. Going by Bhaduri, it will hire around 4,000-5,000 people at various levels this year.
S. Bhattacharya, president HR at Axis Bank, said, “ICICI’s decision can soften the market in terms of pay hikes. But we are not cutting down on our hikes and increases this year would be normal, in the range of 13-15%.”
On the flipside, he said ICICI’s decision can trigger attrition in that bank to a certain extent and this can increase supply in the market, thereby reducing the bargaining power of those looking to quit and take up other jobs.
ICICI Bank, with an employee base of over 40,000, is one of the largest recruiters in the private sector, inducting approximately 15,000 people each year. But this year, the bank feels little need to recruit either internally through promotions or externally in an aggressive manner.
However, about 2,500 campus recruits and 1,000 from ICICI Manipal Academy are expected to join the bank this year.
Kris Lakshmikanth, founder CEO and managing director of Bangalore-based HR firm HeadHunters India Private Ltd points out that increments for key performers at ICICI in the past have even been a whopping 100% of basic salaries.
“ICICI may have effected a tight purse as it has one of the largest exposures to overseas assets. It is also their way of telling employees that last year was good, but this year won’t be the same, and thereby arrest unnatural expectations of employees,” he said.
The bank had about $2.2 billion worth of exposure to credit derivatives, and though it has not directly invested in the US market, it has taken a beating due to the depreciation in the value of securities in the global markets, say HR experts.
Meanwhile, the insurance sector, which is grappling with annual attrition as high as 50% in the sales division, and 20-25% in the non-sales divisions, is also seen going slow on increments.
Priya Ranjan, director-HR at Bharti AXA Life Insurance, said, “Last year, the insurance sector witnessed increments to the tune of 14-15%. This year, we will give increments to the tune of 16%, but I think there will be many players who would give much less.”
R. Krishnamurthy, MD (distribution consulitng) of Watson Wyatt, an HR consulting firm for insurance and financial services, said, “ICICI Bank’s decision is a good move to consolidate the frenzied movements in terms of salary hikes that had crept into the BFSI sector. Players will act in a responsible manner, taking stock of the economic situation, and bringing in moderation in pay hikes.”
“The financial services sector could see hikes in the range of 10-15%. This will be the case with insurance also,” he added.
Source: DNA
Insurers take cos to forum for tall claims, poor refunds
Tuesday, 06 May
However tall the claims of insurance companies may be regarding settlements of claims, record books of District Consumer Grievances Redressal Forum have an entirely different story to tell. Almost 469 cases pertaining to claim settlements have been registered against insurance companies in the last two years.
The list includes all the prominent companies including LIC, New India Assurance Co. Ltd, ICICI Lombard, Oriental Insurance, United India Insurance etc.
Nor surprisingly, the largest has the biggest share with close to 50% of these complaints, 227 to be precise, being registered against New India Assurance Company, which is the largest general insurance company in the country.
The other public-sector companies like United India Insurance, National Insurance Company and Oriental Insurance have 82, 41 and 36 cases, registered against them, respectively.
Among the private players, ICICI Lombard has 33 cases registered against it, while 18 cases were against IFFCO TOKIO. Two cases were against Bajaj Allianz.
"The number of cases is surprising for consumers. Most of these cases are related to health insurance or mediclaim, as is popularly known," says Shreyas Desai, a leading advocate dealing with such cases. And the common predicament, where the claims are generally denied by the companies, is related to pre-existing diseases, Desai said, adding that in majority of the cases, the verdict goes in favour of the complainant.
While the above mentioned figures pertain to health and non-life insurance claims, the life insurance companies seem to perform better, with only 30 cases filed against them during the same period.
With 25 cases against it, state-owned Life Insurance Company (LIC) leads the group, followed by ICICI Prudential with three cases, and Max New York Life and Tata AIG with a case each, respectively.
Source: DNA
However tall the claims of insurance companies may be regarding settlements of claims, record books of District Consumer Grievances Redressal Forum have an entirely different story to tell. Almost 469 cases pertaining to claim settlements have been registered against insurance companies in the last two years.
The list includes all the prominent companies including LIC, New India Assurance Co. Ltd, ICICI Lombard, Oriental Insurance, United India Insurance etc.
Nor surprisingly, the largest has the biggest share with close to 50% of these complaints, 227 to be precise, being registered against New India Assurance Company, which is the largest general insurance company in the country.
The other public-sector companies like United India Insurance, National Insurance Company and Oriental Insurance have 82, 41 and 36 cases, registered against them, respectively.
Among the private players, ICICI Lombard has 33 cases registered against it, while 18 cases were against IFFCO TOKIO. Two cases were against Bajaj Allianz.
"The number of cases is surprising for consumers. Most of these cases are related to health insurance or mediclaim, as is popularly known," says Shreyas Desai, a leading advocate dealing with such cases. And the common predicament, where the claims are generally denied by the companies, is related to pre-existing diseases, Desai said, adding that in majority of the cases, the verdict goes in favour of the complainant.
While the above mentioned figures pertain to health and non-life insurance claims, the life insurance companies seem to perform better, with only 30 cases filed against them during the same period.
With 25 cases against it, state-owned Life Insurance Company (LIC) leads the group, followed by ICICI Prudential with three cases, and Max New York Life and Tata AIG with a case each, respectively.
Source: DNA
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