Chennai: The government will launch an insurance scheme for the poor and low- income groups to get the best medical treatment in government and private hospitals, Governor Surjit Singh Barnala said on Wednesday. It would benefit about one crore families. The insurance cover would be up to Rs.1 lakh.
In his address to the Assembly, Mr. Barnala said the government was aware that it was not possible for the poor to pay the cost of treatment in private hospitals, especially for cancer, heart diseases, kidney failure, brain and spinal problems and life-threatening accidents.
“Considering these facts, a new scheme, the Chief Minister’s Insurance Scheme for Life Saving Treatments, will be launched this year.” It would enable the poor to get treatment in government as well as private hospitals for serious ailments. “Each family will be insured for availing itself of free treatment up to Rs.1 lakh. The government will bear the entire premium.”
The State government would further increase the minimum support price for sugar cane. “On the basis of requests, the government has decided to raise it to Rs.1,100 a tonne. In addition, by bearing Rs.90 towards transport charges and providing, on an average, Rs.30 as recovery-based incentive,” the per tonne realisation for farmers would be Rs.1,220.
Mr. Barnala said that after the damage caused by the rain, the government had given farmers Rs.388 crore in relief. The relief distributed to the affected, spread across 12 districts, amounted to Rs.1,027 crore. He urged the Centre to provide, at the earliest, the financial assistance the State government needed to fully restore the affected areas and disburse adequate relief.
On the plight of Sri Lankan Tamils, he said the government had urged the Centre “to take, without delay, appropriate alternative measures like dialogue so as to establish peace, and thus protect the Sri Lankan Tamils who are suffering.”
The government welcomed the law enacted to create a National Investigation Agency, but said it should “operate without interfering with the powers of State governments or affecting individual liberty.” Speaker R. Avudaiappan read out the Tamil version of the Governor’s address.
Source: The Hindu
Friday, January 23, 2009
OIC EYES RS 4,200 CR PREMIUM
Mumbai: State-run non-life insurer, Oriental Insurance Company (OIC), is looking at a premium growth of 4-5% by the fiscal-end, up from 2.7% recoded a year ago. The company achieved the gross premium collection of Rs 2975 crore as on December, 2008 and was expecting the figure to be at Rs 4200 crore by the end of the fiscal.
Speaking to reporters after inaugurating first broker divisional office of his company in Mumbai on Wednesday, M Ramadoss, chairman and managing director, OIC, said, "Based on various recommendations made by the BCG for the restructuring of the company, we are working a hosts of innovations. First of all, the company has appointed a separate cell for segments like health and motor claims, which were the fastest growing sectors currently.''
The cell is being headed by an official in the rank of a general manager. The idea is to ensure growth and bring down the claims in these portfolios. Also, OIC was looking at opening a separate wing for corporate accounts, which would be headed by an official whose job would be to take care of the agents. Next to come in line will be the dealer tie-up. OIC has also centralized all the existing motor claims through service centres.
The company was planning to make motor claim settlement to merely less than 20 days, said Ramadoss. The OIC was planning to open 10-15 brokers' offices during current fiscal. Coming on business procurement by agents, the company had plans to bring additional business of Rs 5-6 lakh through each agent per month.
While business procurement by agents has grown by 50% during past 5-6 months the number of claims have come down at each service centre of the company. In Mumbai alone, the claim ratio has come down to 25% in motor until December, 2008.
Source: The Financial Express
Speaking to reporters after inaugurating first broker divisional office of his company in Mumbai on Wednesday, M Ramadoss, chairman and managing director, OIC, said, "Based on various recommendations made by the BCG for the restructuring of the company, we are working a hosts of innovations. First of all, the company has appointed a separate cell for segments like health and motor claims, which were the fastest growing sectors currently.''
The cell is being headed by an official in the rank of a general manager. The idea is to ensure growth and bring down the claims in these portfolios. Also, OIC was looking at opening a separate wing for corporate accounts, which would be headed by an official whose job would be to take care of the agents. Next to come in line will be the dealer tie-up. OIC has also centralized all the existing motor claims through service centres.
The company was planning to make motor claim settlement to merely less than 20 days, said Ramadoss. The OIC was planning to open 10-15 brokers' offices during current fiscal. Coming on business procurement by agents, the company had plans to bring additional business of Rs 5-6 lakh through each agent per month.
While business procurement by agents has grown by 50% during past 5-6 months the number of claims have come down at each service centre of the company. In Mumbai alone, the claim ratio has come down to 25% in motor until December, 2008.
Source: The Financial Express
TATA AIG LIFE LAUNCHES INVESTASSURE INSTA
Tata AIG Life Insurance Company Limited has announced the launch of Tata AIG Life InvestAssure Insta, an easy-to-understand and customer-friendly unit-linked insurance plan. Tata AIG Life InvestAssure Insta is designed to help the policyholder obtain valuable protection enhanced by the benefit of getting the most out of his investment and the growth potential through high allocation rates and further supplement it with a guaranteed maturity bonus. The customer can choose from a spread of five fund options depending upon his risk taking appetite.
Source: Business Standard
Source: Business Standard
INVESTORS KEEP FAITH IN LIC'S JEEVAN AASTHA
Mumbai: Despite the turmoil in the financial markets, Life Insurance Corporation’s Jeevan Aastha policy is on course to break the record for premia collection by a scheme in a single month. The policy has been lapped up by celebrities and middle-class investors alike during the 45-day window it was open for sale. The policy, which closed on Wednesday, is expected to collect over Rs 8,000 crore. But some insiders said the collection could be higher. “The exact amount will take some time to collate. Some large proposers have deposited only a token amount as they did not want to lock their funds in case they did not clear the medical underwriting,” said an official. Although the corporation had said it was targeting Rs 25,000 crore, this was seen as a marketing gimmick and not a real target. Sources said the applicants include a host of big-ticket names. A sportsperson is understood to have put in Rs 35 crore, while a leading film actor has invested Rs 8 crore and a little-known business family has invested Rs 50 crore. In addition, thousands of applications have been received for Rs 1-crore policies, said sources. For high net worth individuals, the tax free earnings were a major attraction while for the middle class, there was the additional benefit of tax savings under section 80 CCC. In the past, many of LIC’s guaranteed high-return schemes have seen runaway sales towards their closing date. These include Bima Nivesh and Jeevan Shree. But there are several differences between Jeevan Aastha and other high-return schemes. Aastha is largely an urban phenomenon, with money coming in from large cities. Unlike other products, where a sudden turn in interest rates tipped money into the schemes, Jeevan Aastha was a combination of clever structuring, planning and timing. Understanding investors’ preference for guaranteed returns, LIC structured a product by first buying huge quantities of bonds when triple A companies were borrowing at 11-12%. The corporation then obtained permission from the industry regulator IRDA for a guaranteed return product where subscriptions would be open for only 45 days. The insurer delayed the launch of the scheme to time it closer to the third quarter, as rates were seen to be coming down. The sheer distribution strength of LIC also played a big role in pushing the product. The policy has helped to boost LIC’s flagging market share and has enabled several offices in metro centres to achieve their premium targets for the whole year in January itself. Despite the success, the scheme has its limitations. Jeevan Aastha is more of a bond and less of an insurance policy. Although the sum insured is five times the premium in the first year, the cover amount declines to two times from the second year. Smaller investors, who were not all that savvy in reading the fine print, were sold the policy with a promise of 10% return. But the actual returns are likely to be much lesser.
Source: The Economic Times
Source: The Economic Times
NIC TO HIKE PREMIUM FOR DIRECTORS’ RISK POLICIES
Kolkata: Faced by a rising demand for Directors and Officers (D&O) liability policies after the Satyam scam, the National Insurance Company Ltd is looking at increasing the premium rate by over 30 per cent, according to NIC sources. The public sector insurer may also formulate more restrictive clauses for D&O, for example, exclusion of all claims in case of criminal offence by the directors, a senior NIC official told Business Line.
D&O liability policies offer cover against any loss or defence-cost that an organisation may incur on account of mistaken actions taken by the directors and officers in pursuance of their duties.
Satyam, an eye-opener
“The Satyam incident has been an eye-opener for us in considering formulation of more restrictive clauses and restructuring the premium pricing of liability policies,” he said. The decision has also been influenced by an overall lack of confidence on corporate governance affairs , he added.
The decision to increase premium has also been influenced by an overall lack of confidence on corporate governance affairs after the recent scam, he pointed out. The annual premium on liability policies varies between 0.15 to and 0.30 per cent of the indemnity limit depending upon the risk attached to a company. After the hike in premium, it may range anywhere between 0.2 and to 0.6 per cent of the risk cover, he said.
NIC’s premium income from liability insurance constitutes a mere 2 two per cent of its total premium income. The concept was introduced in the country only in the last two-three years and is yet to be tapped significantly. The total premium collection by the general insurance industry in the countryIndia till October, 2008 from liability policies was to the tune of Rs 386 crore, of which NIC collected over Rs 25 crore. The segment has been growing year on year at over 30 per cent for the industry, according to IRDA data.
“There is a huge growth opportunity in the D&O liability segment, particularly in the current volatile economic conditions. We, however, need to price the product optimally as the downturn also attaches higher risk of litigation against executives,” the officer said.
Source: The Hindu Business Line
D&O liability policies offer cover against any loss or defence-cost that an organisation may incur on account of mistaken actions taken by the directors and officers in pursuance of their duties.
Satyam, an eye-opener
“The Satyam incident has been an eye-opener for us in considering formulation of more restrictive clauses and restructuring the premium pricing of liability policies,” he said. The decision has also been influenced by an overall lack of confidence on corporate governance affairs , he added.
The decision to increase premium has also been influenced by an overall lack of confidence on corporate governance affairs after the recent scam, he pointed out. The annual premium on liability policies varies between 0.15 to and 0.30 per cent of the indemnity limit depending upon the risk attached to a company. After the hike in premium, it may range anywhere between 0.2 and to 0.6 per cent of the risk cover, he said.
NIC’s premium income from liability insurance constitutes a mere 2 two per cent of its total premium income. The concept was introduced in the country only in the last two-three years and is yet to be tapped significantly. The total premium collection by the general insurance industry in the countryIndia till October, 2008 from liability policies was to the tune of Rs 386 crore, of which NIC collected over Rs 25 crore. The segment has been growing year on year at over 30 per cent for the industry, according to IRDA data.
“There is a huge growth opportunity in the D&O liability segment, particularly in the current volatile economic conditions. We, however, need to price the product optimally as the downturn also attaches higher risk of litigation against executives,” the officer said.
Source: The Hindu Business Line
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