Third-party insurance must for new cars

Third-party insurance must for new cars
Third-party insurance for three years will become mandatory for cars being sold from 1 September 2018, said the Supreme Court. The SC also made it compulsory for two-wheeler owners to take third-party insurance for five years. The order is expected to help road accident victims recover compensation from insurance firms, without going after the owner of the offending vehicle.

IndiaFirst Ties Up With Oxigen

India First Life Insurance Company Limited, a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), has announced its tie-up with Oxigen Services India Pvt. Ltd. It will establish the distribution of its insurance products at Oxigen retail outlets. Oxigen is one of the leading providers of money transfers and prepaid recharges as low as ` 10.

IRDAI gives nod to LIC to buy stake in IDBI

Insurance Regulatory and Development Authority of India has approved a proposal by LIC to raise its stake in IDBI Bank up to 51% from current 10.82%. It will save government from having to infuse more funds into IDBI Bank, which had received Rs 10,610 crore last fiscal, the most by any public-sector bank. The acquisition will be seen only as an investment & LIC will gradually lower its stake

B.Sriram resigns as SBI MD

SBI managing director B. Sriram has resigned from his post after being appointed as the chief executive of IDBI Bank. The news assumes significance amid reports that Life Insurance Corporation of India (LIC) is weighing acquiring a majority stake in the debt-ridden IDBI Bank. Sriram is the longest-serving public sector bank MD and has wide experience, including in stressed assets management.

Ayushman Bharat to create 1 lakh jobs

The central government’s ambitious public health insurance scheme ‘Ayushman Bharat’ would create more than 1 lakh jobs. The programme’s CEO Indu Bhushan said that jobs would be created in health sector, insurance and in construction industries. The Ayushman Bharat-National Health Protection Mission (ABNHPM), aims to provide Rs 5 lakh health cover to 100 million of India’s poorest families.

ICICI Bank Names Sandeep Bakhshi As COO

The ICICI Bank board has appointed ICICI Prudential Life Insurance CEO Sandeep Bakhshi as whole-time director and chief operating officer (COO). It is a new top position at India’s second largest private bank, to steer all its businesses. Chanda Kochhar, ICICI Bank’s managing director and CEO will remain on leave until a committee investigating allegations of impropriety completes its work.

IRDAI set up panel to review marketing firms

IRDAI has formed a panel to review the regulations pertaining to insurance marketing firms. The committee is headed by Suresh Mathur, Executive Director, IRDAI, with nine more members. The new distribution channel of insurance marketing firms was introduced in 2015 by IRDAI, with the objective of increasing insurance penetration in the country through an area-wise registration approach.

Panel to vet insurance marketing firm norms

Insurance Regulatory and Development Authority of India (IRDAI) has formed a committee to review regulations governing the Insurance Marketing Firms (IMF). Such firms, which serve as a distribution channel for insurers, are governed by regulations announced about three years ago. IRDAI had approved IMF in 2015 as a measure to increase insurance penetration in the country.

` 500 crore credit enhancement fund

The government is set to unveil a ` 500-crore credit enhancement fund in July to facilitate infrastructure investments by insurance and pension funds. The fund was first announced in the Budget for fiscal year 2016-17. The initial corpus of the fund, to be sponsored by IIFCL (India Infrastructure Finance Company), will be ` 500 crore, and it will operate as a non-banking finance company.

Permits key to claim insurance: SC

Insurance companies are not liable to compensate accident claims for public transport vehicles plying without permits, the Supreme Court said. ‘Permits’ are authorisation given by State authorities to use motor vehicles as transport vehicles. The verdict came on an accident involving a truck which fatally hit a two-wheeler rider in February 2013 at Pathankot.

Telangana, LIC sign MoU for life insurance

Telangana government and the LIC signed a MoU for the implementation of a Rs five lakh life insurance scheme for the benefit of farmers in the state. The scheme will be implemented from August 15. The agriculture department alone would implement the scheme and the AEOs (Agriculture Extension Officers) should get the insurance papers filled up by farmers before August 15.

Insurance cover for all Telangana farmers

Telangana government has announced that it would provide life insurance cover of Rs 5 lakh each to all farmers in the state. The Telangana government has tied up with LIC for implementation of the scheme. Irrespective of the reasons due to which a farmer dies, the insured amount of Rs 5 lakh shall be paid to the nominee proposed by the insured farmer within 10 days of the claim.

CSC to reach 2.50 lakh gram panchayats

The network of Common Service Centres (CSCs) are set to be expanded to 2.50 lakh gram panchayats by the end of 2018. Common Service Centres (CSCs) provides electronic services in banking, insurance, passport seva, telemedicine and pensions to villages in India. The CSC model has adopted six villages in the country in the pilot phase.

India Post customises affordable life policies

India Post plays an important role in financial services, reaching out in the rural areas with its large and efficient network. Postal Life Insurance extended insurance cover to the rural population under the banner ‘Rural Postal Life Insurance’ (RPLI) in 1995. This scheme is primarily meant for people residing in rural areas, especially women and small and marginal farmers.

Govt to come out with Producers’ Price Index

The government will come out with a Producers’ Price Index next month for 10 services, including telecom & railways on an experimental basis. The move will help track inflation in these services, which will also include ports, insurance, banking, transportation & air travel. 2 major indices are used currently for tracking price movement – Wholesale Price Index & Consumer Price Index.

ICICI Bank named Nair as Independent Director

Former IRDAI member Radhakrishnan Nair has been appointed to ICICI Bank’s board as an Additional (Independent) Director. His appointment will be for a period of five years and is subject to shareholders’ approval. He is already an independent director of 3 subsidiaries of ICICI Bank — ICICI Prudential Life Insurance Company, ICICI Prudential Trust and ICICI Securities Primary Dealership.

Subhash Chandra appointed as IRDAI Chairman

Former IAS Officer Subhash Chandra Khuntia was appointed as the new Chairman of Insurance Regulatory Development Authority of India (IRDAI) for three-years. Khuntia will succeed T S Vijayan, who completed his five-year term in February. His appointment was approved by Appointments Committee of the Cabinet (ACC). IRDAI regulates Insurance sector of the country.

DARPAN-PLI App launched by Manoj Sinha

MoS for Communication, Manoj Sinha launched DARPAN-Postal Life Insurance App in New Delhi.The App will help in collection of premium for Postal & Rural postal life insurance policies at Branch Post offices anywhere in India, with online updation of policies. It will help Department of Posts in providing better after-sales service to customers, particularly those living in rural areas.

Sanjeev Nautiyal is the MD & CEO of SBI Life

SBI Life Insurance Company Limited appointed Sanjeev Nautiyal as its new MD and CEO.Sanjeev Nautiyal started his career with State Bank of India in 1985 as a probationary officer in bank’s Lucknow circle. In the immediately preceding assignment, he was the Chief General Manager of the bank’s Ahmedabad circle.He is a Certified Associate of the Indian Institute of Bankers (C.A.I.I.B).

Govt. signed 16 APAs in March 2018

The Central Board of Direct Taxes entered into 14 Unilateral Advance Pricing Agreements and 2 Bilateral Advance Pricing Agreements (APA) during the month of March 2018.The APAs pertain to sectors like Telecommunication, IT, Automobile, Manufacturing and Banking, Finance & Insurance. The APA scheme launched by Government provides certainty to taxpayers in the domain of transfer pricing.

States allowed to set up crop insurance firms

2 : The Centre has allowed states to set up their own insurance companies for implementing Pradhan Mantri Fasal Bima Yojana (PMFBY).Launched in April 2016, PMFBY provides comprehensive crop insurance from pre-sowing to post-harvest against non-preventable natural risks. Presently, five public sector insurers and 13 private insurance companies are empanelled for implementation of the scheme.

Paytm Launches Two Insurance Companies

Digital payments startup Paytm has launched two insurance companies, Paytm Life Insurance and Paytm General Insurance.Paytm Founder Vijay Shekhar Sharma, CFO Madhur Deora, and Shankar Prasad Nath are the three signatory stakeholders in both the companies. In January this year, Paytm announced that it has set up Paytm Money Limited, a wholly owned subsidiary of One97 Communications.

EY Entrepreneur of the Year 2017

Sanjiv Bajaj, managing director of Bajaj Finserv, has been named the EY Entrepreneur of the Year 2017.Bajaj Finserv has emerged as the country’s leading name in financial services with solutions across lending, life and general insurance and wealth advisory. Bajaj will now represent India at the EY World Entrepreneur of the Year Award (WEOY) in Monte Carlo from June 13-17, 2018.

Bajaj Allianz Insurance partners with Quikr

Bajaj Allianz General Insurance has entered into a partnership with Quikr to increase the insurance outreach and offer people with adequate financial protection.With 30 million monthly Unique Visitors, Quikr will be a new age distribution channel for Bajaj Allianz’s products. Under this key agreement, Bajaj Allianz General Insurance will offer personal lines of insurance products.

Indian Railways to create database

For the first time, Railways will have a database of workers engaged by contractors in non-operational areas such as housekeeping, cleaning, consultancy etc.The database is being created to keep an eye on any violation of labour rights. It will comprise of details of all workers with their personal details, police verification, medical insurance, identification certificate & other details.

ICICI Lombard launches ‘IL TakeCare’ app

ICICI Lombard General Insurance, one of the leading general insurance companies in the country has launched a health insurance app ‘IL TakeCare’. It is in collaboration with Practo, the leading healthcare platform. This one-of-its-kind solution covers Outpatient (OPD) expenses of all its customers.

TCS bags ‘$2-plus bn’ Transamerica order

TCS has signed the ‘largest contract to date’ to become a third party administrator (TPA) for Transamerica.It will take care of Transamerica’s life insurance, annuity, supplemental health insurance and workplace voluntary benefits products.The multi-year agreement, worth more than $2 billion, would enable Transamerica to rapidly enhance its digital capabilities.

Ola offers insurance cover

Ola has announced the launch of in-trip insurance programme in partnership with Bajaj Allianz General Insurance, designed to benefit both driver-partners & their families.Chalo Befikar insurance will be provided to all active driver-partners on the platform, offering a cover of Rs 500000.The programme is thus aimed at alleviating the financial burden for driver-partners and their families.

IndiaFirst Life launches Insurance Khata

IndiaFirst Life Insurance has launched India’s first-ever micro-insurance plan ‘insurance khata’ for those in the informal sector and agricultural laborers with seasonal incomes. Insurance Khata provides individuals with the flexibility to pay a premium in parts depending on the periodicity of his/her income. The entry level minimum premium for ‘Insurance Khata’ is Rs. 500/-.

Aegon appoints Vineet Arora as MD & CEO

Aegon Life Insurance has appointed Vineet Arora as the Managing Director & Chief Executive Officer, effective from January 2018. Vineet Arora will replace K S Gopalakrishnan who had left the company on November 17, 2017. Chief People Officer of Aegon Life Insurance, Saba Adil, will serve as the interim In-charge and Principal Officer.

Bajaj Allianz’s ‘Pro-fit’ platform

Bajaj Allianz General Insurance has launched ‘Pro-fit’, a platform that will act as a one-stop solution to all the health-record tracking needs of customers. Pro-Fit is available on the company’s self-service app ‘Insurance Wallet’ and can also be accessed on the company website. Customers can store their health records, track their fitness levels etc.

RGI, YES Bank inks bancassurance pact

Reliance General Insurance has signed a comprehensive bancassurance-corporate agency agreement with YES Bank. YES Bank will enable RGI to reach a large base of retail and MSME clients. This is the first partnership signed by YES Bank since the open-architecture norms under the corporate agency regulations were introduced by the IRDAI in April 2016. Rana Kapoor is the MD of YES Bank.

Linking Aadhaar with insurance policy

IRDA has announced that linking of Aadhaar number to insurance policies is now a mandatory requirement under Prevention of Money-laundering Second Amendment Rules, 2017. This norm of linking Aadhaar number to insurance policies will apply to new customers as well as existing policyholders. Besides, it will apply not only to life insurance policies but also to general insurance policies.

Linking Aadhaar with insurance policy

IRDA has announced that linking of Aadhaar number to insurance policies is now a mandatory requirement under Prevention of Money-laundering Second Amendment Rules, 2017. This norm of linking Aadhaar number to insurance policies will apply to new customers as well as existing policyholders. Besides, it will apply not only to life insurance policies but also to general insurance policies.

Apollo Munich Insurance won award

Apollo Munich Health Insurance Company was awarded the 21st Asia Insurance Industry Awards in the “General Insurance Company of the Year” category, at Singapore. Apollo Munich Health Insurance Company is a joint venture between integrated healthcare provider, Apollo Hospitals Group, and the Munich Re Group. The Asia Insurance Industry Awards is hosted annually by Asia Insurance Review.

First-ever cyber crime insurance cover

Insurance firm Bajaj Allianz has come up with India’s first ever insurance cover for individual victims of cyber crime. Under this policy, insurance cover will be provided against online fraud, identity theft, cyber-stalking and extortion, phishing and malware attack. Sum insured for this policy is in the range of Rs 1 lakh to Rs 1 crore.

Bharti AXA Life Appoints Vikas as CEO

Bharti AXA Life Insurance, a joint venture between Bharti Enterprises & AXA, has appointed Vikas Seth as Chief Executive Officer. The appointment is subject to requisite IRDAI approval. Prior to joining Bharti AXA Life, he was with the Aditya Birla Group, where he worked for nearly 10 years in different roles. He has also served as the Chief Distribution Officer for Birla Sun Life Insurance.

Insurance Policy for Cancer patients

Star Health and Allied Insurance (SHAI) has introduced first-ever health insurance cover for people already diagnosed with cancer. This insurance policy has been named ‘Star Cancer Care Gold’. It covers the risk of recurrence, the spread of cancer (metastasis) and second cancer (second malignancy). Policy has two sum-insured options – Rs. 3 lakh and Rs. 5 lakh.

Govt launches Sampoorna Bima Gram Yojana

The Modi govt has launched Sampoorna Bima Gram Yojana and expanded the coverage of Postal Life Insurance. With this, apart from government employees, PLI will now cover professionals also. Under this yojana, at least one village (having a minimum of 100 households) will be identified in each of the revenue districts of the country. This was done by Minister for Communications Manoj Sinha.

GIC re launches India’s 3rd largest IPO

India’s biggest reinsurer, General Insurance Corp of India’s Rs. 11,370 crore Initial Public Offer opened for subscription. GIC Re’s IPO is Indian primary market’s third largest IPO after Coal India (Rs. 15,200 crore in 2010) and Reliance Power (Rs. 11,600 crore in 2008). Funds raised through this IPO will be used by GIC Re for augmenting the capital base and support business growth.

Ashish becomes MD and CEO of PNB MetLife

PNB MetLife India Insurance appoints Ashish Srivastava as new MD and CEO. He will be responsible for leading all aspects of the business in the country. Prior to this elevation, Srivastava was an interim CEO at PNB MetLife. He had joined PNB MetLife in 2013 as the Head of HR for the India business.

HDFC Life, Apollo Munich Team up

HDFC Life Insurance and Apollo Munich Health have come together to launch ‘Click2Protect Health plan’. The plan provides both life and health cover under a single plan. The features of the product include a waiver of future premiums on account of accidental total permanent disability or on the diagnosis of critical illness; and special premium rates for women and non-tobacco users.

HDFC Life launches service bot Neo

HDFC Life Insurance Company has launched Neo, a servicing bot for Twitter that uses artificial intelligence for customer service. The insurer hopes to deploy the bot in answering policy related queries on social media. The Neo bot will be available 24/7 and has the capability to authenticate customers and give frequently sought details, like fund value, sum assured and premium amount.

IDBI Bank sells 1% stake in Sidbi

IDBI Bank has sold 1% stake in Small Industries Development Bank of India for an undisclosed amount in a bid to mobilise funds by exiting non-core business. The bank sold 53,19,220 shares constituting 1% of paid up capital of Sidbi. Sidbi was originally 100% owned by IDBI, when it was a term lending institution. Later it divested 51% stake in favour of govt owned banks & insurance companies.

Acko gets final IRDA license

Indian insurance sector regulator IRDAI has given the final nod to online non-life insurer Acko General Insurance. The company is looking to start operations by Dec selling mostly auto, travel & health insurance products to retail customers through an online channel. The company backed by Narayana Murthy’s Catamaran, Accel Partners among others are starting with an initial capital of Rs. 200 Cr.

New CMD of United India Insurance

The Union government has appointed M Nagaraja Sharma as the chairman and managing director of United India Insurance. Sharma, currently the director and general manager of UII, is likely to assume the charge of his new post tomorrow. The post of chairman and MD was vacant after the retirement of Milind Kharat a few months ago.

Irdai allows OTP for opening account

Irdai has permitted usage of OTP or one time password for opening e-insurance account as an alternative to electronic signature. As per current practise, an e-signature of the e- insurance account holder on the application form for opening the account is considered as a valid authentication. Irdai has also permitted e-KYC facility offered by UIDAI which provides unique Aadhaar numbers.

Reliance General Insurance Receives Nod

Reliance General Insurance, a wholly owned subsidiary of Reliance Capital, has received in-principle approval from IRDA for the process of its proposed IPO. The company offers a wide range of general insurance products like fire, motor, health, home, crop, travel etc. Listing of Reliance General Insurance is expected to be completed in FY18, subject to necessary approvals.

ICICI Lombard gets SEBI nod for IPO

ICICI Lombard General Insurance Company has got SEBI’s go-ahead for its estimated Rs. 6,000 cr IPO, which could be the first by a general insurer in the country. ICICI Lombard, which is India’s largest private sector non-life insurance firm, had filed its draft proposal on 14 July. IPO is an offer for sale of 86.24 mn shares by promoter entity ICICI Bank & joint venture partner FAL Corporation.

Exide Life, PMC Bank tie up

Exide Life Insurance has announced a partnership with Punjab & Maharashtra Co-operative Bank to offer its protection and savings products to the latter’s customers. PMC Bank is a multi-State scheduled urban cooperative bank with 127 branches spread across India. With this tie up, Exide Life Insurance consolidates its leadership in the co-operative bank segment.

SBI Life Insurance gets Sebi approval

SBI Life Insurance has received approval from the Securities and Exchange Board of India for an IPO of up to Rs 8,400 crore. The IPO will involve 120 million secondary shares, or 12% of the insurer’s equity capital. State Bank of India, which currently owns 70.1% of the insurer, will sell 80 million shares and BNP Paribas Cardif, holder of a 26% will sell 40 million.

CHOICE launches ‘PoS’ product

Canara HSBC Oriental Bank of Commerce Life Insurance Company (CHOICE) has come up with a ‘Point-of-Sale’ product targeted at the mass-market segment. The product ‘PoS – Easy Bima Plan’ is the first PoS product for the company and is a pure term insurance plan. It not only gives life cover but also returns all premiums paid during the payment term on survival till maturity.

IRDAI launches central database

Insurance Regulatory & Development Authority of India has launched a Central Database of all Insurance Sales Persons in the country. Envoy, the database will ensure that all licensed insurance sales persons working for insurers & intermediaries do not work with multiple insurers & intermediaries in same business category. The Insurance Information Bureau of India hosts the central database.

Tie up for bancassurance

DHFL Pramerica Life Insurance Company has tied up with Dhanlaxmi Bank for distribution of its portfolio of retail & group life insurance products. As per the agreement, Dhanlaxmi Bank would become the corporate agent of DPLI & make life insurance products more accessible to its customers. With this tie-up, DPLI is in a strong position to consolidate its presence in the states of South India.

HDFC Ergo merges L&T insurance biz

HDFC ERGO General Insurance has completed the merger of HDFC General Insurance (formerly L&T General Insurance) with itself. This is the first amalgamation in the non-life sector and consolidates HDFC Ergo’s position as the third-largest private insurer. The market share of the merged entity is 4.9% while the net worth of the merged entity as on March 31, 2017, is Rs. 1,485 crore.

Mamta Suri takes charge as ED

Dr. Mamta Suri has taken charge as Executive Director, Insolvency and Bankruptcy Board of India. Before joining IBBI, Dr. Suri was serving as Chief General Manager, Insurance Regulatory Development Authority of India. IBBI is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies, Insolvency Professionals & Information Utilities in India.

GIC of India files for IPO

General Insurance Corp. of India has filed draft red herring prospectus for its initial public offering. IPO will see a stake dilution of 14.22% & is likely to raise over Rs. 10,000 cr. GIC has appointed Citigroup, Axis Capital, Deutsche Bank, HSBC & Kotak Mahindra Capital to manage the initial offering. If GIC goes for Rs. 10,000 cr IPO, it will be the 2nd largest public offering in India.

Max India pulls out merger deal

Max India has withdrawn the proposed merger agreement b/w Max Life & Max Financial Services with HDFC Standard Life Insurance. The scheme did not go well with IRDA as it was in contravention of the Section 35 of the Insurance Act that does not allow merger of an insurance business with a non-insurance firm. Max India was supposed to amalgamate Max Life Insurance with Max Financial Services.

PNB ties up with Bajaj Allianz General

Punjab National Bank & Bajaj Allianz General Insurance have signed an agreement for distribution of insurance products through branches. Under the agreement, Allianz will offer insurance products such as health, personal accident along with commercial products such as property to bank’s customers. Allianz will cater to PNB’s rural & semi rural customers with rural insurance products.

Bajaj Allianz renews corporate agreement

27 : Bajaj Allianz Life Insurance has renewed corporate agency agreement with Dhanlaxmi Bank. Under the agreement, Dhanlaxmi will continue to sell life insurance products of Bajaj Allianz Life Insurance. As a corporate agent partner, Dhanlaxmi has done a business of Rs. 365 Cr till date for Bajaj Allianz Life Insurance. Relationship b/w Bajaj Allianz Life Insurance & Dhanlaxmi goes back to 2009.

ICICI Lombard files for IPO

15 : ICICI Lombard General Insurance, the non-life insurance joint venture of ICICI Bank and Fairfax Financial Holdings has filed the draft red herring prospectus for its IPO. It is the first non-life insurance company to file for a public offering. The IPO will see ICICI Bank and Fairfax sell around 86.24 million shares. It is the second insurance company from the ICICI group to go public.

Free insurance scheme for legislators

Maharashtra govt has decided to give free medical insurance cover of up to Rs. 10 lakh to all sitting and former legislators and their families. The govt will have to set aside Rs. 9.96 crore a year to pay the insurance premiums of 335 sitting legislators and 837 former legislators. Legislators were earlier covered by the government’s medical reimbursement scheme.

Tokio Marine raises stake in IFFCO-Tokio

Japan’s Tokio Marine Asia has raised its stake in a 17-year old general insurance joint venture with India’s fertiliser co-operative from 26% to 49% at a cost of Rs. 2,530 crore. Marine has purchased total 6,19,43,945 shares of IFFCO-Tokio from IFFCO and IPL for a total consideration of Rs. 2,530 crore. IFFCO stake will come down to 51% in the JV while IPL would exit from the insurance company.

Bajaj Allianz General CEO appointed

Bajaj Allianz Life Insurance announced the appointment of Tarun Chugh as its MD and CEO. He replaced Anuj Agarwal, who has moved overseas within the Allianz group. Chugh has over 22 years’ experience in financial services, including over 12 years life insurance sector. Meanwhile, Tapan Singhel, was re-appointed as MD and CEO for Bajaj Allianz General Insurance for 5 years from 1 April.

Lloyds Gets Final Approval from IRDA

Lloyd’s, specialist insurance and reinsurance company, has got final regulatory approval from the Insurance Regulatory Development Authority of India (Irda) to set up branch in India. Lloyd’s will open a reinsurance branch in Mumbai, India. This will enable Lloyd’s syndicates to offer specialist reinsurance in a variety of classes from a Lloyd’s India branch.

Canara Bank, Bajaj Allianz Ink Pact

Canara Bank & Bajaj Allianz General Insurance have signed a corporate agency agreement for the distribution of Bajaj Allianz’s general insurance products. Both have set a target to achieve ` 400 crore business in the first year (FY 2017-18) of operations. Under this agreement, Bajaj Allianz General Insurance will offer its products to Canara Bank customers.

Corp Bank Inks Pact with Indian Army

Corporation Bank has signed a MoU with the Indian Army on defence salary package. It will be providing free/concessional services to the Army under the MoU. The services include free drafts, free cheque books, free funds, free ATM cards, unlimited transactions on all ATMs. Free personal accident insurance cover of ` 5 lakh and ` 10 lakh up to the age of 70 years are the other features.

Reinsurer Lloyd’s Gets IRDA Nod

IRDA has approved London headquartered insurance & reinsurance Lloyd’s application to provide onshore reinsurance services in India. Lloyd’s secured R1 approval from IRDA to set up a branch in India. Lloyd’s filed application with IRDA in March for setting up a reinsurance branch in Mumbai. Insurance Regulatory and Development Authority (IRDA) is a insurance sector regulator in India.

HDFC board gives green signal to HDFC Life-Max merger

The HDFC board has approved the merger of Max Life and Max Financial Services with its insurance arm HDFC Standard Life Insurance. The total premium of the merged entity of HDFC Life-Max is expected to be ` 26,000 crore. It will create the biggest public sector life insurer.

Deepak Iyer appointed Mondelez India MD

Confectionery major Mondelez International has appointed former Bharti Axa General Insurance Company CEO and Deepak Iyer as Managing Director of its India operation. He succeeds Chandramouli Venkatesan, who led the business as Managing Director of India operations for two years and was with the company for more than a decade. Iyer, as Managing Director of Mondelez India Foods, will be part of the Asia Pacific Leadership Team and report into Maurizio Brusadelli, President of Asia Pacific, Mondelez International.

Rs. 500 cr. sanctioned for new crop insurance scheme

Fulfilling one more electoral promise, Chief Minister J. Jayalalithaa on July 15, ordered implementation of new crop insurance scheme – Prime Minister’s Fasal Bima Yojana (PMFBY) – which has many pro-farmer measures and ensures higher compensation for crop loss. So far, the government had given only Rs.40 crore as grant towards premium to be paid by the farmers. But for the new shceme, the government has to grant Rs. 500 crore.

Finance Minister launches crop insurance scheme

Finance Minister Mr. Arun Jaitley launches crop insurance scheme Pradhan Mantri Fasal Bima Yojana in Mumbai, aimed to boost the agricultural sectors in the country.

Canara Bank ties up with Life Insurance Corporation

Canara Bank has entered into a memorandum of understanding with Life Insurance Corporation of India for offering the Pradhan Mantri Jeevan Jyoti Bima Yojana insurance cover to all its eligible customers. The bank has also partnered with the United India Insurance Company for offering the Pradhan Mantri Suraksha Bima Yojana insurance cover. According to the MoU, LIC will offer a life cover of 2 lakh in case of death of the insured person at a nominal premium of 330 per annum. All savings bank account holders in age group of 18 to 50 years can avail themselves of product.


The scheme will be a one year cover, renewable from year to year, Insurance Scheme offering life insurance cover for death due to any reason. The scheme would be offered / administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose. Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.
Scope of coverage: All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account.
Enrolment period: Initially on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late enrollment for prospective cover will be possible up to 31st August 2015, which may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015. Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with submission of a self-certificate of good health in the prescribed proforma.
Enrolment Modality: The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, with the exception as above for the initial year. Delayed enrollment with payment of full annual premium for prospective cover may be possible with submission of a self certificate of good health. Individuals who exit the scheme at any point may re-join the scheme in future years by submitting a declaration of good health in the prescribed proforma. In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discontinued their subscription shall be able to join while the scheme is continuing, subject to submission of self-certificate of good health.
Benefits: Rs.2 lakhs is payable on member’s death due to any reason
Premium: Rs.330/- per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment, as per the option given, on or before 31 st May of each annual coverage period under the scheme. Delayed enrollment for prospective cover after 31st May will be possible with full payment of annual premium and submission of a self-certificate of good health. The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years.
Eligibility Conditions:
a) The savings bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme.
b) Individuals who join after the initial enrollment period extending up to 31st August 2015 or 30th November 2015, as the case may be, will be required to give a selfcertification of good health and that he / she does not suffer from any of the critical illnesses as mentioned in the applicable Consent cum Declaration form as on date of enrollment or earlier.
Master Policy Holder: Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by LIC / other insurance company in consultation with the participating bank.
Termination of assurance: The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:
1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
3) In case a member is covered under PMJJBY with LIC of India / other company through more than one account and premium is received by LIC / other company inadvertently, insurance cover will be restricted to Rs. 2 Lakh and the premium shall be liable to be forfeited.
4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health.
5) Participating Banks shall remit the premium to insurance companies in case of regular enrolment on or before 30th of June every year and in other cases in the same month when received.
Administration: The scheme, subject to the above, will be administered by the LIC P&GS Units / other insurance company setups. The data flow process and data proforma will be informed separately. It will be the responsibility of the participating bank to recover the appropriate annual premium in one installment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process. Members may also give one-time mandate for auto-debit every year till the scheme is in force.
Enrollment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained and retained by the participating bank. In case of claim, LIC/ insurance company may seek submission of the same. LIC / Insurance Company reserves the right to call for these documents at any point of time. The acknowledgement slip may be made into an acknowledgement slip-cum-certificate of insurance. The experience of the scheme will be monitored on yearly basis for re-calibration etc., as may be necessary.
Appropriation of Premium:
1) Insurance Premium to LIC / insurance company : Rs.289/- per annum per member
2) Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.30/- per annum per member
3) Reimbursement of Administrative expenses to participating Bank: Rs.11/- per annum per member
The proposed date of commencement of the scheme will be 1st June 2015.The next Annual renewal date shall be each successive 1 st of June in subsequent years. The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.

Salient features of a few schemes Tamil Nadu Government – State and Central are given here for study purposes.
1. Tamil Nadu Village Habitations Improvement (THAI) Scheme
This Government has introduced the flagship programme called Tamil Nadu Village Habitations Improvement (THAI) Scheme from 2011-12 onwards to overcome the bottlenecks in the uneven distribution of resources and to provide minimum basic infrastructure facilities to all the habitations. Tamil Nadu is the only State focusing on ‘Habitation’ as the unit of development and no other State in the Country is implementing such an innovative scheme.
There are about 7 habitations on an average for each Village Panchayat in Tamil Nadu with 79,394 habitations in 12,524 Village Panchayats. However, the number of habitations varies from District to district. The average number of habitations in a Village Panchayat in The Nilgiris District is 37 whereas it is only 3 in Villupuram District. Therefore, allocation of equal amount to all the Village Panchayats, with varied number of habitations, has led to disparity in development, disproportionate distribution of assets and uneven progress. The THAI scheme has come as boon with the aim of extending the basic facilities to the grass root habitation.
There are 12,524 Village Panchayats in the State spread across the 31 Districts (except Chennai). As can be seen from the following table, the population of Village Panchayats in Tamil Nadu varies widely with some Village Panchayats having population even below 500 while some others have population exceeding 10,000.
2. Chief Minister Solar Powered Green House Scheme (CMSPGHS) Pl. click here for G.Os
In the Governor’s address on 03.06.2011 in the Legislative Assembly, it was announced that “This Government will launch a ‘Solar Powered Green House Scheme’ for the benefit of the poor in the rural areas and construct houses measuring about 300 square feet at a unit cost of Rs.1.80 lakh by meeting the entire cost by the State Government”.
Accordingly, this Government had ordered for construction of 60,000 Solar Powered Green Houses of 300 square feet each, every year for the next five years commencing from 2011-12 at a unit cost of Rs.1.80 lakhs per house. The scheme is named as “Chief Minister’s Solar Powered Green House Scheme (CMSPGHS).”
Construction of houses under “Chief Minister’s Solar Powered Green House Scheme” ordered by the Honourable Chief Minister is another milestone in the history of rural housing which clearly addresses the shelter needs in rural areas. Nowhere in the country is such a free housing scheme for the construction of houses with an area of 300 sq.ft with solar powered lighting implemented.
Salient features of the Scheme
• All the people living below poverty line in rural areas are eligible for Solar Powered Green Houses.
• Each house is built with an area of 300 square feet at a unit cost of Rs.1.80 lakh fully funded by the State Government.
• Each house consists of a living room, bed room, kitchen, toilet and verandah apart from Rain Water Harvesting provision.
• Each house is provided with 5 solar powered Compact Fluorescent Lamps (CFL), one each in bed room, living room, kitchen, toilet and verandah. Each beneficiary is given the option to have an electric connection powered by TNEB, which will be metered.
• The unit cost is Rs.1.80 lakh per house @Rs.1.50 lakh for construction and Rs.30,000/- for Solar Powered Lights.
• The RD & PR Department is entrusted with the construction of houses and Tamil Nadu Energy Development Agency (TEDA) is the implementing agency for solar lighting component.
• The Green Houses are constructed either insitu (replacing his/her existing dwelling structure) or in the land owned by the beneficiary elsewhere in the Village Panchayat. No land acquisition is envisaged under this scheme. Only people with patta for their sites are eligible under this scheme.
• The supply, installation and commissioning of solar panels and lights are undertaken directly by TEDA by following established procedures in co-ordination with the Project Directors of District Rural Development Agencies.

Bharti AXA General Insurance launched Smart Traveller

Bharti AXA General Insurance (GI) Company Ltd. has launched ‘Smart Traveller’ that offers global coverage for students, individuals, families and frequent travellers. The Smart Traveller Insurance policy offers a choice of two major plans catering to Individuals and Families and frequent travelers through a variant – known as Annual Multi Trip International travel insurance plan.