FIRST HEALTH INSURANCE POLICY FOR HIV LAUNCHED

Bangalore: A group insurance plan for HIV positive people, covering their treatment cost among others, was on Wednesday launched here in a first such effort in India. The pilot initiative will provide Rs 30,000 insurance cover for 250 people living with HIV in Karnataka's six districts of Bellary, Mangalore, Mandya, Kolar, Mysore and Udupi. The insurance cover entails the beneficiary Rs 15,000 assistance for hospitalisation and a similar sum to his family in the event of his death, Sanjay Rao Chaganti, Programme Director of Population Services International (PSI), an NGO behind the project, said here. PSI in partnership with Star Health and Allied Insurance Company and the Karnataka Network for Positive People (KNP+) has introduced the insurance plan. "It is a problem to enroll HIV positive people, because they either don't disclose or come forward. It is only through the help of organisations like KNP it can be done," Sanjay explained. Andhra Pradesh Aids Control Society has identified 3,000 such persons and they would soon be brought under similar insurance programmes, he said. The annual premium for the policy works out to Rs 1500 per person and the NGO will bear half of the amount. Karnataka State Aids Prevention Society Project Director, Manjunath Prasad said the state had 2.5 lakh HIV infected and 33,000 suffering from AIDS. National Aids Control Organisation Director General K Sujatha Rao said out of the Rs 1100 crore budget provided during 2008-09 for AIDS control, about Rs 150 crore was being spent on creation of awareness about the disease.

Source: PTI, The Economic Times, The Hindu, The Tribune, The Times of India, Daily News & Analysis

IPO BY PSU INSURERS OPPOSED

Kochi: The General Insurance Officers All India Association has opposed the Union Government’s move to introduce an initial public offer (IPO) in the four public sector general insurance companies. Mr P. P. Mohanan, General Secretary of the Association, Kerala, said that the proposed amendment in the General Insurance Business (Nationalisation) Act of 1972 to raise capital from the markets through an IPO is against the assurance given by the Union Government while moving th e Insurance Regulatory and Development Authority (IRDA) Bill in 1999.

In order to raise the equity base of the four PSU general insurance companies ( New India Assurance Company, National Insurance Company, Oriental Insurance Company and United India Insurance Company), he suggested that the government should think of other alternatives. As there was no capital support from the Union Government since nationalisation, he said that even government funds could also be used for the same.

Source: The Hindu Business Line

BHARTI AXA GENERAL TO HIRE 1,700

Chennai: Bharti AXA General Insurance, the latest entrant into the general insurance industry, plans to recruit close to 1,700 people during the course of the next year. It currently has 200 people on its rolls, Mr Milind Chalisgaonkar, the CEO of the company, said. Operating out of seven cities — Bangalore, Mumbai, Delhi, Ahmedabad, Hyderabad, Ludhiana and Chennai — the company plans to grow to 29 branches by the end of this year.

Asked if the company was not a rather late entrant, Mr Chalisgaonkar pointed to the 200 per cent growth in general insurance premium since liberalisation. He also quoted a Swiss Re study that predicted the general insurance market premium would treble in the next eight years and touch about one lakh crore. He mentioned that even smaller markets such as Singapore had about a hundred insurance companies operating and that India itself had nearly 100 companies before nationalisation in the seventies. He said that they would not be the last entrant for long.

Source: The Hindu Business Line

AEGON RELIGARE LIFE BEGINES OPERATIONS

Mumbai: Aegon Religare Life Insurance Company is the 20th life insurance player to formally launch its operations in the country, CEO Rajiv Jamkhedkar said. The company will receive an initial capital infusion of Rs 370 crore this financial year the highest infusion any new life insurance entrant has received in the first year itself.

Source: Business Standard

SHARP RISE IN BIRLA SUN LIFE’S APE

Chennai: Birla Sun Life Insurance has registered a business growth of 194 per cent in the first quarter of the current accounting period. Total annualised premium equivalent (APE) stood at Rs. 507.40 crore against Rs. 185.30 crore in the corresponding period in the previous year. According to a release, the first quarter has witnessed an expansion in distribution network.

Source: The Hindu

MICRO INSURANCE FROM MAX NEW YORK LIFE

Hyderabad: Max New York Life Insurance Company has launched a micro insurance product, Max Vijay, with a referral tie-up with the Confederation of NGOs for Rural India (CNRI) which provides savings and insurance at a premium range of Rs. 1,000-2,500. The policy term was 10 years and the policy-holders would be allowed partial withdrawal after three years.

Source: The Hindu, Business Standard

INSURANCE SCHEME FOR LABOURERS IN IDUKKI

Kattappana: Two insurance schemes will be implemented for labourers in the Below Poverty Line category in Idukki district, said an official press release here on Wednesday.

Smart cards
Under the schemes, named Desiya Swasth Insurance Scheme and Total Health Scheme, Smart Cards will be issued to insured labourers. The insured will be eligible to seek treatment at select hospitals for up to Rs.30,000 annually. People included in the Above Poverty Line category can also join the Total Health Scheme.

Labourer’s share
For the Desiya Swasth scheme, the labourer’s share is fixed at Rs.30. The government will pay Rs.720. For the Total Health Scheme, the labourers will have to pay Rs.100 and the government will pay Rs.650, the release said. The District Labour Officer has been selected as the nodal officer to implement the projects and the Health Department, grama panchayats and Kudumbashree units will implement the project.

Meeting held
District Collector Ashok Kumar Singh presided over a meeting of grama panchayat presidents and the officials concerned convened at the collectorate in Cheruthoni to discuss the implementation of the project, the statement said.

Source: The Hindu

INSURANCE SCHEME FOR TEACHERS PLANNED

Udupi: Primary and Secondary Education Minister Vishweshwara Hegde Kageri has said he is committed to ensuring transparency in the functioning of Block Education offices and the offices of Deputy Directors of Public Instruction. He was speaking at the Education Conference organised by the Udupi District High School Headmasters’ and Pre-University College Prinicipals’ Association, here on Wednesday. Mr. Kageri said that the problems relating to services of teachers would also be addressed. The department planned to launch a joint insurance scheme for teachers with contributions both from the teachers and the Government, he added. Earlier, inaugurating the building of the Government High School at Indira Nagar, he said there was a shortage of teachers in urban areas and it would be set right.

Source: The Hindu

FIRMS LOG INTO INSURANCE TO CUT CYBER CRIME LOSSES

With the incidents of cyber crime on the rise especially in industries like banking, IT/ITES, BPO/KPO, the corporates have started opting for cyber crime insurance.
Currently, some middle and large sized companies buy this insurance either as a standalone policy or bundled policy for covering cyber crime losses. The average amount insured starts from $5 million and goes up to $50 million and the cost of premium ranges between 0.5 to 1 % of the sum insured and in some cases can go up to 5%.

Discussing about the growth of such plans, Rahul Aggarwal, CEO click2insure.in told FE that cyber crime is a menace for any organisation transacting business through internet. He said, “Despite best efforts the technical systems with the organisations are not adequate to tackle industrial and commercial espionage leading to cyber crimes. But as huge losses occur due to distortion of data the big firms have started taking cyber crime insurance seriously. HDFC General Insurance, Tata AIG and ICICI Lombard. Companies like HCL infosystems, Annik Technologies, Nucleus Technologies, Punj Star, NIIT, etc. have already adopted this policy. But the small and medium companies are yet to wake up to this product.”
Cyber crime insurance policy depends upon the security infrastructure, outsourcing and testing process of the organisation concerned. Rahul further added, “There are two types of covers for direct losses to the company (first party loss) and the other one for third party losses. The typical risks covered in cyber insurance include frauds like stealing credit card data, banking account details, identity thefts, hacking etc.”

Source: The Financial Express

INSURE RURAL INDIA, SAYS IRDA CHIEF

The newly-appointed Insurance and Regulatory Development Authority chairman, Mr J. Harinarayan, emphasised on the combination of life and non-life insurance policies in order to tap the grossly under-covered rural market. “There’s a need for greater customisation and offering greater choice to people in the low-income segment. The industry needs to show greater sympathy towards the under-privileged,” he said, while launching Max New York Life’s new insurance policy, Max Vijay, targeting the rural and semi-urban population. The firm has tied up with the Confederation of NGOs of Rural India, wherein CNRI will help create awareness about the policy amongst the rural masses.

Source: Deccan Chronicle

PENSION-LOVING INDIANS ARE HUGE OPPORTUNITY FOR FUNDS

Mumbai: After the trust vote, there has been a lot of attention on the perceived efforts of the government to push critical economic legislation. One of these relates to pensions. There are many players in the financial sector who are hoping to see the legislation being enacted, even if for selfish reasons. A growing number of Indians, especially in the urban areas and bigger towns, thanks to their higher income, are putting their money in mutual funds and other products which have an exposure to equity. Asset management firms, both local and foreign, have no doubt about the market potential here.
Now, a report on the private pension market in India, titled The Sleeping Giant, has thrown up some interesting data. Based on the Invest India Data-works Income and Saving Survey 2007, IIMS Data-works research report says that there are over 8 crore people who do see the need for and value of a pension plan even if it is a contributory system. Current estimates are that about 2 crore people save for their retirement by buying life insurance and other products.
The report suggests is that if the latent demand of this segment of the population is harnessed or tapped, the New Pension System could well have a corpus of Rs 57,000 crore in the first full year of operations. Sounds great but the reality might be different. But, as the report says, even if 20% of the 8 crore people, which it reckons are prime prospects, start saving for their retirement, the money which pension providers could have access to will be substantial.
Indeed, it has been demonstrated in some states how some organisations and self-help groups have managed to convert a growing number of daily wage earners to set aside modest sums for old age security.
The IIMS report says that as part of its survey, it sought out information from respondents on their retirement intentions and expectations, besides savings objectives. The survey showed that less than one in 14 people is making a conscious effort to save for retirement. Much of it has to do with low earning capacity. However, with robust economic growth, average earnings have risen and taking into account the change in demographics, the pool of funds which could be available for pension savings will be large.
If the survey is a guide to go by, policy makers will be able to draw comfort from the findings. The majority of those covered under the survey have said that they are willing to accept the fact that they have to save for a decade or more, even if it means small sums every month. Nor are they balking at the thought of not being able to take out money before the age of 58. The survey in fact, estimates that of the 8 crore workers in the paid workforce, one in four workers is ready to save for retirement and sign on for a voluntary pension plan. That should certainly bring some cheer to the pension regulator, PFRDA.
There is a lot of ground that the report covers. For instance, state-wise distribution of latent demand for retirement savings schemes. Demand is pronounced in states such as Andhra Pradesh, Maharashtra and Uttar Pradesh where it believes a targeted approach could well work. The resistance to investing in securities is also low compared to other assets, the report says. The other positives which have emerged from the survey is the fact that 70% of those falling in the latent demand category for retirement products do have a banking account or save with the post office.
Of critical importance now would be the approach of policy makers towards this universe of investors. Obviously, product design would be a key determinant. So would be the regulatory structure, the ease of investment, type of products and distribution channels, among others. The PFRDA is putting in place structures which seek to address all these. It is also clear that those aspiring to tap the potential investible surplus would need to unveil effective campaigns to woo savers. And that is not marketing campaigns alone but financial literacy programmes. The pensions regulator for one is considering doing that. Others who have a long term stake in the market need to follow suit.

Source: The Economic Times

MAKEMYTRIP.COM, APOLLO DKV TIE UP

Mumbai: Online travel portal Makemytrip.com has tied up with Apollo DKV Insurance Company for a domestic travel insurance solution, a statement said on Tuesday. The new product called ‘Easy Domestic’ travel will cover travel-related risks of domestic airline passengers. The product would cover travellers against several travel contingencies like accidental death, emergency medical treatment, trip cancellation, trip curtailment, checked baggage loss, flight delays, trip interruption, emergency hotel and emergency travel among others. This all will come for a premium of Rs 111 for all tickets booked online. The policy is valid for the duration of a round trip cross-sector travel or 30 days from the date of booking, whichever is lesser, the statement added.

Source: The Hindu Business Line

INSURANCE COVER FOR FISHING EQUIPMENT

Thiruvananthapuram: The State government will launch the proposed insurance scheme for fishing equipment of traditional fishermen, in Alappuzha on August 25. Minister for Fisheries and Registration S. Sarma said that two lakh fishermen would benefit from the scheme. The government had earmarked Rs. 1 crore for it in the budget. The insurance would cover 75 per cent of the cost of boats, engines and nets lost during natural calamities.

The premium would be 1.8 per cent of the value of the equipment. The beneficiary would have to pay 50 per cent of the premium and the government would meet the balance. The scheme would be implemented by the State Insurance Department, in collaboration with the Oriental Insurance Company.

The Minister announced that the proposed scheme to provide interest-free loans to fisherwomen would be launched shortly. The plan was to disburse Rs. 5,000 each to 40,000 women engaged in the sale of fish. It would be carried out through the primary cooperative societies affiliated to Matsyafed. The government would provide Rs. 50 lakh towards interest costs for the funds and the Society for Assistance to Fisherwomen would meet the balance. The total outlay for the project was Rs. 21.48 crore.

The fisherwomen would have to be members of self-help groups to take the loans. The money would be repayable over 50 weeks. Mr. Sarma said that applications had been invited for both the schemes from fishermen. The Fisheries Director was drawing up a list of fisherwomen in the State towards identifying the beneficiaries and organising them into self-help groups, the Minister added.

Source: The Hindu

NON-LIFE INSURERS FACE TOUGH TIMES

Mumbai: While warning of tough times ahead for non-life insurers, rating agency Icra On Tuesday said of the three key business segments, two portfolios – motor own damage and fire and engineering – have seen a deterioration in the claims situation.

The biggest threat is going to come in the form of pricing pressure and the smaller players are expected to face the heat the most. The current pricing environment — where insurers are doling out discounts to grab market share – is also expected to contribute to hardening of re-insurance rates, Icra said in a report. But with low insurance penetration in the country, the agency is bullish on the sector’s long-term prospects.

The good news came from the health insurance segment, which accounted for 17.7 per cent of the risk underwritten by non-life insurers in 2007-08. While the business continues to be loss-making, post-detariffing, thanks to better risk-based pricing, the claims performance has improved.

While the own-damage part of the motor business, where the premium is not regulated, has seen an increase in claims, there is some good news on the third-party side, which had in the past seen claims that were two times higher than the premium earned from segments like commercial vehicles. With companies resorting to pooling, the balance sheet of the public sector companies is under less strain, the agency said.

The motor business accounted for 45.5 per cent of the non-life business in 2007-’08 and a part of the increase in the claims ratio of the own-damage segment was 20 per cent decrease in premium. Premium levels have dipped further this year. “Over the medium to long term, performance of the motor segment is expected to be supported by a more efficient claim settlement system and by the plugging of leakages,” Icra said.

In the fire and engineering businesses, which had traditionally enjoyed better claims, total premium collected by the insurers declined 10.6 per cent as premium fell. “The business has been supported by the higher risk cover purchased by corporate clients in a favourable pricing scenario. The claims performance for the fire segment deteriorated during 2007-08 and is expected to suffer further weakness during the current financial,” the report said.

Source: Business Standard

CANARA HSBC COLLECTS RS 12 CR PREMIUM

Bangalore: Canara HSBC Oriental Bank of Commerce Life Insurance Company – a partnership of Canara Bank and Oriental Bank of Commerce, and HSBC Insurance (Asia Pacific) Holdings, has claimed it wrote over Rs 12 crore of annualized premiums in July 2008, the company’s first full month of business.

Source: Business Standard

CANARA HSBC COLLECTS RS 12 CR PREMIUM

Bangalore: Canara HSBC Oriental Bank of Commerce Life Insurance Company – a partnership of Canara Bank and Oriental Bank of Commerce, and HSBC Insurance (Asia Pacific) Holdings, has claimed it wrote over Rs 12 crore of annualized premiums in July 2008, the company’s first full month of business.

Source: Business Standard

AEGON RELIGARE LIFE TO GET RS 370-CR CAPITAL INFUSION

Mumbai: Aegon Religare Life Insurance will receive a capital infusion of Rs 370 crore from its promoters in the first year of operation. The company, which launched operations over a month ago, is a joint venture between Religare, Aegon and Bennett and Coleman. It has started off with a capital base of Rs 200 crore.

Mr Rajiv Jamkhedkar, CEO, Aegon Religare Life Insurance, said that the bulk of the capital would be invested in technology as well as for setting up branches. Religare holds a 44-per cent stake in the venture, Aegon 26-per cent stake and Bennett and Coleman the balance 30 per cent.

Headquartered in Hague, Aegon has 41 million customers in 21 markets, which are spread over the Americas, Europe and Asia.

Distribution
Aegon Religare has begun with 38 branches which will be expanded to 51 in the first year. “We expect to have 60,000 customers and receive over Rs 100 crore of new business premium in the first year. We hope to see all our branches break even in three years,” Mr Jamkhedkar said.

Aegon Religare plans to have a multi-distribution strategy which includes agents, corporate agents and the direct channel. The company’s promoter, Religare, will also be selling insurance products at its 600 branches. Under the direct channel, the company will have around 1,000 employees who will sell insurance as ‘relationship managers’.

The company also plans to set up an ‘Aegon Religare University”, which will offer beginner and advanced courses in insurance. “This may take around three years to set up. We may offer these courses either on-line or off-line,” Mr Jamkhedkar said.

Aegon Religare has launched one term insurance product and three unit-linked insurance plans. “Our next focus will be on rural and social, pension and health products,” he said.

Source: The Hindu Business Line

MAX NEW YORK LIFE INSURANCE PARTNERS CNRI FOR MAX 'VIJAY'

Hyderabad: For its radical new initiative 'Max Vijay,' Max New York Life Insurance has announced a referral tie-up with Confederation of NGOs of Rural India (CNRI), engaging around 6,000 NGOs working in rural India, as the company's corporate agents.

In the first phase of this initiative, the company targets to sell more than 1.5 lakh Max Vijay policies through the reach provided by 150 NGOs, which will gradually increase to all 6,000 NGOs.

Addressing media persons Analjit Singh, Chairnman, Max New York Life Insurance Company Limited said that it also tie up its first corporate agency relationship with Mass Insitute of Rural Development (MIRD), an NGO with rural focus operating across 23 districts of Andhra Pradesh, having around 300 member NGOs.

Singh said, "through this association with CNRI, we hope to achieve the true potential of 'Max Vijay' and thus be the pioneers in reaching out to the underserved segment of the society."

As an industry first it also gives us an opportunity to add a new dimension to IRDA's agenda of provding financial solutions to underseved consumers." "CNRI has shown immense interest in playing an equal and active role in supporting us to take 'Max Vijay' to the remotest of locations and provide protection and saving accummulation opportunities, " Singh said.

J Harinarayan, Chairman Insurance Regulatory and Development Authority, said that there was more scope for Micro Insurance to grow. In reply to a question Harinarayan said that it was "satisfactory" but there was much scope to grow.

L V Saptharishi, Co-Chairman, CNRI said, "This referral tie-up with Max New York Life Insurance gives us an opportunity to promote 'Max Vijay'". We find it a unique concept, designed to provide better service to our customers. I am confident that this relationship will help the underserved masses and meet their aspiration from life."

Source: PTI, Business Standard, Deccan Chronicle, The Hindu Business Line

MICRO INSURANCE MUST FOCUS MORE ON RISK COVER: IRDA CHIEF

Irda chairman J Harinarayan felt the need for a change in the mind-set of insurance companies with respect to the micro-insurance products, which have to be focused on the risks at the micro level than on the lower premiums.

Speaking at the product launch meeting of Max New York Life here on Tuesday, Harinarayan said that the insurance companies should focus more on the risk cover than the lower premium for micro insurance. For instance, he said, the farmer has to face variety of risks from sowing to harvesting and if the insurance product offers proper cover at each of the risks would benefit the farmers. “These are the issues of designing and concern towards the human beings," he pointed out.

Responding to a question, the Irda chairman said that there is no need for altering any of the regulations as there are no complaints. The micro insurance is in its nascent stages and unless it picks up volumes, it would be improper to comment on its performance, he opined.

Earlier, Max New York Life chairman, Analjit Singh explained the product christened ‘Max Vijay’, a fixed premium policy at an affordable premium with flexible payment options.

The 10-year tenure policy is available with three premium payment options with a minimum enrollment premium of Rs 1,000, he said. Max New York Life to expand capital base

Max New York Life chairman Analjit Singh revealed that the company is expected to expand its capital base to Rs 3,600 crore by March 2011, as against the present paid-up capital of Rs 1,400 crore. The fresh capital will be invested in the ratio of 74:26 between Max India and New York Life, he said. The company also plans to expand its branch net up by 250 offices a year taking to 850 locations by 2010.

Source: The Financial Express

FOUR NEW PLAYERS AWAIT IRDA NOD

Hyderabad: The insurance sector is likely to become more crowded, with four companies, which are awaiting approval from the Insurance Regulatory and Development Authority (IRDA), starting operations.

“We cannot share further details on the pending approvals. We have asked for some particulars and the moment they submit them, we will issue R1 licence (the first of three licences required to start operations),” Mr J. Hari Narayana, Chairman, IRDA, told newspersons on the sidelines of a product launch function of Max New York Life Insurance here on Tuesday.

Micro insurance
On the trends in micro insurance, the Chairman said the interest of private players in the segment has been growing. “However, there is still a long way to go as the micro insurance business represents a miniscule in the insurance industry though India can be called a leader in micro insurance,” he said.

In 2007-08, out of total premium of Rs 1,00,000 crore, only Rs 125 crore came from micro insurance, he added, “Till recently, micro insurance was driven by the Government-led social security schemes. But now the time has come for an independent growth,” he observed.

The insurers should design different, unbundled micro insurance products to cater to the needs of the rural areas, he suggested. To expand the reach of distribution, the non-governmental organisations (NGOs) should also consider a broking model as against agent model widely adopted currently. “I understand that the costs in broking model are high and we can workout a mechanism to bring them down for NGOs,” Mr Narayana said.

Source: The Hindu Business Line