The Insurance Regulatory and Development Authority (Irda) will soon develop a mechanism for faster approval of insurance policies and encourage companies to come out with low premium products for increasing insurance penetration, a senior government official said today.http://www.myallagents.com/Irda-to-develop-mechanism-for-faster-approval-of-policies/details.html
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The
Insurance Regulatory and Development Authority (Irda) has published in
the gazette of India five key reforms related to the sector, including
new guidelines for insurers and reinsurers. The reforms are: Investment
regulations for insurers, Irda (life insurance-reinsurance) regulations;
places of business regulations; Irda appointed actuary amendment
regulations and regulations for the standard proposal form.
According to the actuary |
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The
Insurance Regulatory and Development Authority (Irda) will take a call
on altering its ‘Place of Business’ Regulation, which called for
insurers to take permission of the regulator to open offices in any
location in India. This, is to be in tandem with the Budget proposal to
allow insurance companies to open branches in Tier-II cities and below
without Irda approval.http://www.myallagents.com/Irda-for-changing-Place-of-Business-regulation/details.html
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If
you are planning to buy an insurance policy this year - either life or
health - you should hold the purchase until the products are refiled.
The Insurance Regulatory and Development Authority (Irda) has given
insurers time till June 30, 2013 and September 30, 2013 to re-file their
group and individual products, respectively.
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If you had bought a health cover five years earlier, there is a good chance your sum assured would be Rs 2-3 lakh. With the cost of medical treatment jumping
15 to 20 per cent every year, a cover of less than Rs 5 lakh will not
be sufficient in case of hospitalisation. In case of a severe disease
you would easily need Rs 8-10 lakh.
Hence, it is of utmost importance to review your health insurancecoverage, says Manasije Mishra, chief executive officer of Max Bupa Health Insurance. A need to upgrade insurance cover arises, typically with increase in responsibilities and liabilities. Mishra advises upgrading your cover if you are still on a plan of less than Rs 5 lakh or when responsibilities like childbirth or additional expenses like home loan come up. If you are over 35 years and still depend on your employer for health insurance, you might need to increase your health cover  |
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ICICI
Lombard’s gross written premium (GWP) grew by 20%, expects a premium
growth of 2 – 3% higher than the industry average. According to Mr.
Neelesh Garg, Executive Director – ICICI Lombard General Insurance
Company GWP grew to Rs. 6,420 crores for the financial year ending March
2013. He attributed this growth to rise in premium amount in both
retail and corporate segments.
He
further quoted that the company expects the force of previous year to
go forward in this year and that the company expects 2 – 3% higher
premium than the industry average in the coming financial year. He also
did not rule out the rise in prices of the premium amount depending on
the inflation numbers.
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In order to boost the sales of term insurance policies,
which is showing a decline trend since past 3 years, market regulator
Insurance Regulatory and Development Authority (IRDA) want insurance
companies to sell term plans having maturity benefit. For this, IRDA
will also bring a new set of guidelines in two months time and is also
planning to allow business correspondents of the banks to sell these
policies in the rural area of the country.
http://www.myallagents.com/IRDA-plans-to-introduce-maturity-benefits-term-plan/details.html
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KOLKATA:
AM Best, a US-based insurance industry rating agency, has assigned a
financial strength rating of "B++" and issuer credit rating of "bbb+" to
National Insurance Company Ltd. The outlook for both ratings is stable.
The ratings reflect the insurer's strong risk-adjusted capitalisation, diversified business portfolio, consistent business income and its leading position in India's motor insurance sector, the rating company said in a press statement released from Hong  |
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Mis-selling
in insurance is prevalent and is one of the key reasons that is hurting
the sector's growth is a fact accepted by the Finance Minister, P.
Chidambaram himself on several occasions. Though
the intermediaries are first to be blamed for it—an agent only pushes
products that earn high commission—is the most popular reasoning given.
However, there are several other reasons why a customer ends up buying a
wrong product. For instance, it is not always 'mis-selling' but
sometimes 'mis-buying' as well—lack of awareness, expectations of quick
returns and using insurance as a tax saving tool, to name a few
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