Life insurers report 28% fall in premium income in Q1

According to the data compiled by IRDA, Indian life insurance industry has posted a 28 percent fall in premium income for the period of the first financial quarter of 2011. Compared to this, general insurance companies registered a healthy 22 percent growth during the same period.

Public sector insuring companies-United India Insurance, New India Assurance, National Insurance and Oriental Insurance recorded a combined growth of 19 percent during this quarter as compared to 22 percent growth in the corresponding period in last year.

In the life insurance field, LIC of India saw 29 percent slump versus private life insurers' 27 percent dip. Private General insurance companies registered a 27 percent increase in Q1 as compared to 21 percent in the previous year.

Insurers Compel Hospitals to Cut Down Inflated Bills

Until recently, most of the hospitals in India had a different billing structure for patients covered under insurance. These patients were charged higher than the normal patients. The insurance industry wanted this to end and answered to this dual billing structure by bringing in its own standard rate cards for various treatments and made a panel of sanctioned hospitals for cashless treatments. 

Now the inflated billing has stopped and if any patient is overcharged, the insurers force hospitals to refund the extra amount to patients. This way, patients are benefitting from the standardized billing structure for common medical treatments. This has also cut down the health insurance rates and has reduced pressure on the insurers.

Health insurance companies have also negotiated to bring most of the major hospitals in the preferred provider network (PPN). Currently, cashless treatment is available in 456 hospitals in Delhi, Mumbai, Chennai and Bangalore.

LIC International launches New ULIP ‘Gold Plus’

LIC International, headquartered at Bahrain has launched a new Unit Linked Insurance plan by the name of ‘Gold Plus’ aimed towards non-resident Indians residing in the Sultanate of Bahrain. 

The product was launched on Tuesday by India’s Hon'ble Ambassador to the Sultanate, His Excellency Anil Wadhwa.

Resident Manager of LIC (International), Oman-Division, V. S. Madhu said, “Gold Plus is a first of its kind insurance product in the market, which offers insurance–cum-investment during the term of the policy with an option to convert it into an annuity/pension at maturity. The policy holder can choose the level of insurance cover depending on the amount of premium he desires to pay.” 

The policy is available to people aged up to seventy-two years. The time period of policy is 5 to 35 years.

Payment could be done in single premium or quarterly, biyearly or annually. The policy-holders can receive maturity benefits either in one lump sum or as a settlement option over a period of five years as even as annuity. 

CEO and managing director, LIC (International), R. Thamodharan said on the occasion, “Gold Plus has attracted a lot of interest in some of the GCC states, where it has been launched. LIC (International) will soon make available its policies to locals and other expatriates in the Sultanate.”

SC: Insurer liable to pay compensation even after change of vehicle ownership

The Supreme Court has passed out the judgement that insurers are legally responsible to pay compensation even if possession of the motor vehicle transfers.

  

The apex court said in its judgement, "The liability to pay compensation is based on a statutory provision. Compulsory insurance of the vehicle is meant for the benefit of the third parties. The liability of the owner to have compulsory insurance is only in regard to third party and not to the property. Once the vehicle is insured, the owner as well as any other person can use the vehicle with the consent of the owner. Section 146 of the Act (Motor Vehicles Act, 1988) does not provide that any person who uses the vehicle independently, a separate insurance policy should be taken. The purpose of compulsory insurance in the Act has been enacted with an object to advance social justice."

Rashtriya Swasthya Bima Yojana To Cover More Workers

Government health insurance scheme, Rashtriya Swasthya Bima Yojana is broadening its horizons to cover seven more unorganized worker sectors; auto rickshaw and taxi drivers, miners, rickshaw pullers, sanitation workers, rag pickers will soon be covered under this scheme.

Rashtriya Swasthya Bima Yojana (RSBY) is the brain child of Government of India’s Ministry of Labour and Employment and was started on1st April 2008.
The aim of RSBY is to provide health insurance coverage for all families Below Poverty Line (BPL).

Under RSBY, Beneficiaries are covered up to Rs. 30000 for hospitalization charges for almost all types of diseases. All pre-existing medical conditions are covered from first day onwards and no age limit is defined. Five members of a family are covered, including the main earner, spouse and their three dependents.

The registration charges are only Rs. 30, p[aid by beneficiary while the premium is paid by the State and Central Government.