Friday, February 28, 2014

Demand for ground handling and aircraft components insurance policies rise

General insurance companies said that aviation insurance policies that were primarily used to cover the fleet of the airline companies is now in demand for the other covers provided by this policy. For quite some time, demand for covers for ground handling and aviation product liability insurance policies has been increasing, a renowned newspaper informed.

Mr. Manik Nehra, senior manager of aviation insurance at Bajaj Allianz General Insurance Co. Ltd. Said, “With new routes and new cities being added by aviation companies, the demand for aviation insurance will only go up."

“We are now looking at aviation products, general aviation and aerospace insurance covers. In the next few months, we will look at airline insurance as well,“ said Mr. M Ravichandran, president-insurance, Tata AIG General cover.

Future Generali launches RSBY programme in Karnataka

Private sector global insurance group Future Generali India Insurance has recently launched the Rashtriya Swastha Bima Yojana (RSBY) programme in Amalapur, Bidar District of Karnataka to become the first insurer to start the enrolments in the state. It had secured the tender for one cluster consisting 6 districts in Karnataka for implementation of the RSBY programme.

RSBY is a unique scheme run by central government which provides cashless treatment benefits to below poverty line (BPL) families at all RSBY network hospitals across the country. Under this scheme, five members of a BPL family can get treatment for up to Rs. 30,000. In the Union Budget for 2012-13, the government made a total allocation of Rs about 1097 crore towards the scheme.

“Every citizen in this country should have access to health insurance coverage and the government is committed to this cause", Future Generali India Insurance Head (Health Insurance) Mr. Shreeraj Deshpande said on the occasion.

“Enrolling people in rural areas is a difficult and complex activity and requires working closely with the government. It is our honour to be associated with this project and it will be our endeavour to cover as many people under this scheme", he added.

Friday, February 21, 2014

Unclaimed amount with life insurance companies rises 250%

The unclaimed amount with life insurance companies has grown 250% in the four-year period from 2009-10 to 2012-13, mainly because of lack of awareness, delay in claims settlement and change in address, the Insurance Regulatory and Development Authority (IRDA) said in a circular on Tuesday.

The unclaimed amount jumped to Rs 4,866 crore in 2012-13 from Rs 1,373 crore in year 2009-10.

As per the circular, the unclaimed amount rises 60% in 2012-13 from Rs 3,037.46 crore in the previous year.

The regulator mentioned that the rise in unclaimed amount is largely because of dependents not being aware of existence of a life insurance policy among other reasons including delay in settlement of claim and change in address of the life insured.

Further, the regulator said that in another big reason for not settling claims is change in address, where the policyholders do not informed the insurance company, due to which cheques/demand draft issued by the insurance company towards maturity payment is not received by the policyholder.

In order to ensure timely payout to policy holders, IRDA has asked insurance companies to make various disclosures such as the amount which remained unclaimed for more than six months from the due date of settlement, nature of the unclaimed amount (death claim, maturity benefit, etc), details of action taken (for payment of the unclaimed money) by the insurer and the status of the unclaimed amount.

Initially, insurers have been told to upload this information on their website by 31 March 2014. Subsequently, they have been advised to put up this information every six month by 30 September and 31 March every year.

IRDA imposes penalty on Tata AIA Life for violating AML norms

It's been reported that insurance sector regulator in India, the Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 1,00,000 on private sector life insurance player, Tata AIA Life Insurance Company Ltd. for not complying with its anti-money laundering (AML) guidelines.

In its order, the regulator also directed the insurer to hire a chartered accounting firm(s) to carry out an investigation on the operational procedures present to complying with its AML guidelines.

Further, the order said that effective systems were not in place to report cash transactions and in various instances no review was carried out for reporting cash transactions. The regulator also observed that in certain instances, the insurer accepted multiple cash transactions exceeding Rs 50,000 on a single policy from same payer without PAN number, which violates its norms.

“The accounting firm(s) should complete the study and submit its report in 45 days. The Tata AIA Life Insurance should submit the accounting firm's report to IRDA within 15 days of its submission", said the order.

Wednesday, February 19, 2014

National Seminar on 'General Insurance Industry: A Decade of Transition and Road Ahead', held

A national seminar on 'General Insurance Industry: A Decade of Transition and Road Ahead', was held on Saturday in connection with the 36th central general council meeting of the United India Insurance Officers' Association.

The seminar was inaugurated by Agriculture Insurance Company (AIC) of India Chairman and Managing Director Mr. P J Joseph. And, United India Insurance Company (UIIC) General Manager Mr. M V V Chalam presided over the seminar. UIIC Deputy General Manager Mr. V Sajan delivered the keynote address on marketing dynamics.

In his address, Mr. Joseph asked state-run insurers to accommodate with changing times by improving customer service. He also urged them to grow with professional approach, instead of wavering, while taking on competition from private insurance companies.

Prominent industry personnel presented papers on various topics related to the insurance industry.