IRDA MAY TIGHTEN NORMS FOR INSURANCE SALE THROUGH BANKS

The committee set up by the Insurance Regulatory and Development Authority (IRDA) has recommended the regulator to ask banks to renew at least half the life insurance policies they sell, failing which they may lose the licence to distribute insurance products.

In year 2011, the regulator had ushered in a minimum policy renewal criteria for individual insurance agents. The regulator directed insurance companies to terminate the contracts of agents who fail to get at least half the policies sold by them renewed in the subsequent year.

“We have noticed some instances of forced selling of insurance products by banks while advancing loans to customers. Hence, we are looking at calculating loss ratio (the ratios of premiums paid to the claims settled) in respect of business procured by banks so as to assess the quality of the business,” a senior official from IRDA said.

Further, the official said, “One of the factors that affect persistency is the after-sale service provided to the policyholder. Currently, large numbers of policies are left without being serviced after the policy is sold, resulting in the policies getting lapsed.”

The insurance regulator is in process of finalising bancassurance guidelines and is expected to come out with the final report by August this year.

(Source: www.insuringindia.com)

SHRIRAM LIFE TARGETING SALES OF OVER 2 LAKH POLICIES IN FY’ 2013-14

Private sector insurer Shriram Life Insurance Company has planned to sell over two lakh policies in the current fiscal year and wishes to register a 30% growth on its new business premium. The company had sold 1.54 lakh policies with a total gross premium of Rs 618 crore and posted a huge growth of 46.4% in its net profit at Rs 82 crore in the last fiscal year.

For the financial year which ended on March 31, 2012 the company had sold 1.31 lakh policies.

Charged up with the result, Smt. Akhila Srinivasan, Managing Director, Shriram Life Insurance said, “During the year 2012-13, the new business premium grew by 7% over last year to Rs 421 crore. This growth is commendable in times when industry has degrown by 6%.”

The company's current paid up capital was Rs 175 crore, she added.

"We will continue to consolidate in southern market, but our major focus is to expand North and West. We plan to add around 50-70 new offices in Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, and Gujarat", Shriram Life Insurance, CEO, Manoj Jain said.

Chennai based Shriram Life Insurance Company is a part of the diversified Rs 60,000 crore financial services conglomerate Shriram Group. 

(Source: www.insuringindia.com)

IRDA Chief To Meet Life Insurers On May 2

The Insurance Regulatory and Development Authority (IRDA) chief Sri TS Vijayan has called for a meeting of the chief executives and appointed actuaries of all life insurers on May 2.

This is the first time after Sri Vijayan took charge as IRDA chairman in February this year, the members of life insurance business would formally meet him and discuss issues related to the new regulations passed by the regulator, especially the traditional product guidelines, published in February. The guidelines made significant changes in the traditional product structures, surrender ch

arges and commissions payable to the insurance agents.

Life insurers will have to re-file around 70% of their products to meet the new guidelines. The insurers have been given time till June 30, 2013 and September 30, 2013 to re-file their group and individual products, respectively.

According to a senior official of a private life insurance company, the regulator has asked all life insurance companies to give their opinion about the new guidelines and concerns, if any. The regulator has also asked for details on whether the implementation of these guidelines would have any impact, positive or negative, on business.

The Life Insurance Council, on behalf of the life insurance companies, has already given its opinion about the new regulations to the IRDA. Several provisions of the regulations such as variable insurance products have been termed impractical by the industry.

Issues such as pension product reforms including service tax and guaranteed return, and how to increase the penetration and density of life insurance would be some of the other topics of discussion.

The Facts: Border - Gavaskar Trophy

 # Mahendra Singh Dhoni became the first skipper to post eight consecutive Test wins against Australia on Indian soil. Under his leadership, India have won 24, lost 12 and drawn 11 out of 47 contested -- success % 51.06.

# Australia has lost eight tests in a row to a skipper for the first time in an overseas tussle.

# Dhoni is the first Indian skipper to register a clean sweep in a series of four tests against any side.

# India, for the first time, have won a test series by 4-0 -- their first instance of four consecutive test wins in a series. They have achieved three successive series wins against Australia on Indian soil -- 2-0 in 2008-09; 2-0 in 2010-11 and 4-0 in 2012-13.

# Australia, for the second time, has been whitewashed by 4-0 in a Test series after their 4-0 clean sweep to South Africa in 1969-70.

# Ravindra Jadeja (5-58) has recorded his first five-wicket haul in test cricket, eclipsing the 3 for 33 against Australia at Hyderabad.

# Jadeja's superb match figures of 7 for 98 (2-40 & 5-58) are his best in a Test match, surpassing the six for 66 against Australia at Hyderabad. His brilliant performance has earned him his first Man of the Match award in tests.

# Cheteshwar Pujara has registered strike rate of 89.13 (82 not out off 92 balls) -- the third highest in the fourth innings of a Test match for India.

# Pujara has posted fifties in each innings of the Delhi Test -- a feat recorded by him for the first time.

# Pujara, in two consecutive series, has registered 400 runs or more for the first time, totalling 438 (ave. 87.60) against England in 2011-12 followed by 419 (ave. 83.80) against Australia in the just concluded rubber.

# Nathan Lyon (7-94) has registered his best bowling performance in tests, outstripping the 5 for 34 against Sri Lanka at Galle in August 2011.

# Overall, Lyon has taken five wickets or more in an innings three times -- his third-best being 5 for 68 against the West Indies at Port of Spain in April 2012.

# Ashley Mallett had captured 6-68 in 1969-70 -- the previous best figures by an Australian bowler at Feroz Shah Kotla.

# Lyon's excellent performance of 7-94 is the sixth best by an Australian bowler in a Test innings at Feroz Shah Kotla. His match figures of 9 for 165 are his career-best in a Test match as well as the best by an Australian bowler at this venue.

# At Feroz Shah Kotla, India have won 12 Tests out of 32 contested -- the second highest tally of wins registered by them, next only to the 13 out of 31 at Chepauk.

# India have won nine out of the last ten Tests played at Kotla -- the remaining one could not produce a result.

# Ravichandran Ashwin, with 29 wickets at 20.10 runs apiece, has finished as the leading wicket-taker followed by Jadeja -- 24 (17.45). Jadeja's bowling average is the best in the just concluded rubber.

# Ashwin's tally is the third highest by an Indian bowler in a Test series against Australia behind Harbhajan (32 at 17.03 runs apiece in three Tests in 2000-01) and Bishan Singh Bedi (31 at 23.87 runs apiece in five Tests in 1977-78).

# This was Ashwin's first Player of the series award against Australia and his third in Tests.

# Peter Siddle (51 & 50) became the first number nine batsman to make fifties in each innings of a Test match. He is the first number nine batsman to top score in each innings of a Test match.

# Siddle became the fourth Australian number nine batsman to post 100 runs or more in a Test match, joining Jack Gregory, Clem Hill and Ray Lindwall.

# With 430 runs at an average of 61.42, Murali Vijay is the leading run-getter in the series.

# Two Australian spinners opened the second innings -- Lyon and Maxwell, providing the third instance when Australia opened the bowling attack with two spinners.