Kolkata: Life India Corporation (LIC) has launched its Unit Linked Endowment Plan, Money Plus 1, which offers both investment and insurance benefits.
The minimum sum assured of this scheme is five times the annual premium and the maximum sum assured can go upto 30 times the premium, which will depend on the age at entry level.
The age at the entry level can be between 0-65 years with the policy term ranging from five to 30 years.
R R Dash, zonal manager, LIC said: "We have targeted to get Rs.1,800 (Rs.18 billion) from Money Plus 1 this fiscal."
Last fiscal, total premium volume of LIC including renewals stood at Rs.138.95 billion in the eastern zone. United Linked Insurance Plans (Ulip) was the highest performer, which fetched Rs.37.04 billion. The net profit in 2007-08 was Rs.61.93 billion. The company expects the surplus income to grow by 50 percent this fiscal.
The company is focusing on reducing Ulip's marketshare to 60 percent from present 76 percent. Other conventional policies will constitute the remaining 40 percent of the market share.
Dash said: "People are more interested in monetary returns than health cover."
LIC already has 45 satellite offices and plans to construct nine more soon. It also plans to strengthen northeast operations.
D K Banerjee, chief engineer, LIC said: "The company has acquired a plot near Salt Lake for Rs.2.76 billion. It will construct a 50-storied commercial buildings on that plot, which will house offices of various companies."
LIC has altogether 81 buildings in Kolkata. Another housing project of LIC will commence from this year. In the current fiscal the company has earmarked Rs.20 billion for housing projects.
LIC has approximately 1,000 buildings all over India.
Source: IANS
Wednesday, May 28, 2008
Monday, May 26, 2008
SJVN GETS 307-CRORE INSURANCE SETTLEMENT
Shimla: The public sector mini-navratna Sutlej Jal Vidyut Nigam has received a whopping Rs.307 crore here in a claim settlement from the National Insurance Company on account of losses due to flooding of the power house of the countrys largest 1500-MW Nathpa Jhakri power project in 2005.
It is the countrys largest- ever claim settlement onshore, claimed the Chairman of National Insurance, V. Ramaswamy, in a media briefing here.
He formally handed over the cheque for Rs.307 crore to SJVN Managing Director H. K. Sharma and said it was done in record time.
The power station was insured through an industrial all-risk policy with National Insurance as a leader of the consortium of some other smaller public and private sector companies.
The power house was flooded on the night of September 4-5 and power generation came to a halt, resulting in power shortage in the Northern Grid. It was temporarily restored after 44 days. The insurance company had also made interim payments in November 2005 and March 2006 amounting to Rs.51 crore on account of damage to the equipment.
The company is paying a premium of about Rs.15 crore per year to the insurance companies.
It is the countrys largest- ever claim settlement onshore, claimed the Chairman of National Insurance, V. Ramaswamy, in a media briefing here.
He formally handed over the cheque for Rs.307 crore to SJVN Managing Director H. K. Sharma and said it was done in record time.
The power station was insured through an industrial all-risk policy with National Insurance as a leader of the consortium of some other smaller public and private sector companies.
The power house was flooded on the night of September 4-5 and power generation came to a halt, resulting in power shortage in the Northern Grid. It was temporarily restored after 44 days. The insurance company had also made interim payments in November 2005 and March 2006 amounting to Rs.51 crore on account of damage to the equipment.
The company is paying a premium of about Rs.15 crore per year to the insurance companies.
UNITED INDIA INSURANCE APPEAL DISMISSED
The Supreme Court has dismissed the appeals of United Insurance Company which had refused to renew mediclaim policies in high claim cases of senior citizens.
The court stated that the company's denial was highly arbitrary. Though the insured were not entitled to automatic renewal, the public sector companies should have been fair. The claimants had been hospitalised repeatedly and the company declined to renew their insurance.
The court said: "Only because the insured had started suffering from a disease, the same would not mean that the said disease shall be excluded. If the insured had made some claim in each year, the insurance company should not refuse to renew insurance policies only for that reason."
The parties are not required to go into all the formalities. Since the policy contemplates terms for renewal, it cannot be placed at par with a case of first contract.
The court stated that the company's denial was highly arbitrary. Though the insured were not entitled to automatic renewal, the public sector companies should have been fair. The claimants had been hospitalised repeatedly and the company declined to renew their insurance.
The court said: "Only because the insured had started suffering from a disease, the same would not mean that the said disease shall be excluded. If the insured had made some claim in each year, the insurance company should not refuse to renew insurance policies only for that reason."
The parties are not required to go into all the formalities. Since the policy contemplates terms for renewal, it cannot be placed at par with a case of first contract.
Friday, May 23, 2008
Malls on target
Future Generali to sell insurance policies in malls for a premium as low as Rs 49 per month. FUTURE Generali, the insurance joint venture between Kishore Biyani-led Future Group and Italian major Generali Insurance, yesterday launched Mallassurance, a unique initiative to sell insurance policies at the malls.
The policies, both life and non-life, will be available through kiosks and Future Money outlets in select malls for a premium as low as Rs 49, Rs 99 and Rs 199.The policies will include personal accident cover, house cover and also life insurance. They hope to create some history with these products and at Rs 49, Rs 99 and Rs 199; most Indian homes can purchase these policies and especially the young.
Their mission is to sell one lakh policies in the next 45 days. The products will be offered through 40 malls initially and will be ramped up to about 500 outlets in the next six months. The group is investing about Rs 185 crore in the life insurance venture and Rs 150 crore in non-life. Through the innovative marketing methods, the group can have a wider reach to the customers.
Source: Insuremagic
Insurance sale over the phone can help reduce premiums
Allowing insurers to conclude contracts over the phone will bring down the cost of insurance on low value covers. This channel would help the industry reach out to a section of buyers who do not want to deal with agents.
Concluding the sale over the phone makes it easier and more cost effective. The more cost effective it is, the lower will be the premium for customers. At present, direct marketing involves a two-stage process, where in the first stage, the prospect is convinced to buy a policy and at the second stage a representative approaches him for a signed proposal. This two step process makes it more expensive and reduces the rate of conversion.
The committee has suggested that the Indian regulator could consider allowing insurance companies to conclude a proposal through the telephone instead of insisting on a signed proposal form. The condition was that the conversation should be recorded and retained for at least two years. When insurance regulations were first drawn up, the technology for recording and storing voice conversations was not widespread. Today, most companies already record conversations between tele-callers and customers on grounds of monitoring quality.
Transactions over the phone would protect the interest of clients better as compared to a signed proposal form. For instance, in the case of proposal forms, there could be a case where the agent disregards material facts that are disclosed to him by the proposer. But in the case of phone contracts everything is on record. The insured has the option to change his mind as the 15-day ‘free-look’ period will be available. Also, cover begins instantly, the moment the payment is effected. In countries like Korea, such direct sales account for close to a fifth of sales. Insurance companies receive calls from prospective customers following an advertisement campaign. The tele-caller explains the terms of cover and concludes the contract over the phone and also receives payment by either credit/debit cards or through funds transfer.
Direct marketing is not expected to result in channel conflict between the agent and the company’s call centre. Direct marketing usually involves one or two simple products. The agent would have the full menu of products which would be much more complex than the ones sold over the telephone.
Source: Insuremagic
Concluding the sale over the phone makes it easier and more cost effective. The more cost effective it is, the lower will be the premium for customers. At present, direct marketing involves a two-stage process, where in the first stage, the prospect is convinced to buy a policy and at the second stage a representative approaches him for a signed proposal. This two step process makes it more expensive and reduces the rate of conversion.
The committee has suggested that the Indian regulator could consider allowing insurance companies to conclude a proposal through the telephone instead of insisting on a signed proposal form. The condition was that the conversation should be recorded and retained for at least two years. When insurance regulations were first drawn up, the technology for recording and storing voice conversations was not widespread. Today, most companies already record conversations between tele-callers and customers on grounds of monitoring quality.
Transactions over the phone would protect the interest of clients better as compared to a signed proposal form. For instance, in the case of proposal forms, there could be a case where the agent disregards material facts that are disclosed to him by the proposer. But in the case of phone contracts everything is on record. The insured has the option to change his mind as the 15-day ‘free-look’ period will be available. Also, cover begins instantly, the moment the payment is effected. In countries like Korea, such direct sales account for close to a fifth of sales. Insurance companies receive calls from prospective customers following an advertisement campaign. The tele-caller explains the terms of cover and concludes the contract over the phone and also receives payment by either credit/debit cards or through funds transfer.
Direct marketing is not expected to result in channel conflict between the agent and the company’s call centre. Direct marketing usually involves one or two simple products. The agent would have the full menu of products which would be much more complex than the ones sold over the telephone.
Source: Insuremagic
Subscribe to:
Posts (Atom)
