Federal Bank launches unique insurance scheme for its NRI customers

Federal Bank has brought a distinct insurance product for its new NRI customers by the name of “Fed Oriental Pravasi Insurance”, in association with Oriental Insurance Company. 

The insurance scheme is customized to primarily cover hospitalization expenses of NRI customers. It provides cash-less treatment facility at more than 3000 hospitals all across India and covers unexpected contingencies like accidents and repatriation. 

The scheme is applicable to all new NRI customers having a minimum balance of Rs. 5000 in their account. Medical cover of Rs. 10 lakh is available for whole family in the event of death or disability of the insured person. The policy also provides an economy class airfare for a dependent in case of an accident or airlifting along with the patient. 

Treatment abroad in accredited hospitals for an amount up to Rs. 75000 per year is also covered under the scheme.

Federal Bank is listed on BSE, London Stock Exchange and NSE. It is one of the leading private sector banks in India. It is the 4th largest bank in India in terms of capital base.

Public–private partnership model only way for a secured pension

World’s second largest reinsurer Swiss Re has indicated that for creating a long-term retirement provision, both private and public bodies have to work together to address the broader issue of a sustainable pension infrastructure. 

India is making efforts to set up a detailed social security plan by permitting new players in the pension and insurance field. Increase in life expectancy in India in recent times has caused difficulties in funding for insurers. 

Swiss Re report said that advanced models furnish improved figures of future longevity and will bring in vital changes in the overall result, which ought to be driven by private and public bodies working in concert. Insurers and employers ought to work unitedly to attain a lasting sustainable infrastructure.

LIC to offer up to six per cent annual return on Pension Plus

Life Insurance Corporation of India is ready to offer 6% annual return on its unit-linked pension product “Pension Plus”.

The unit-linked pension product-‘Pension Plus’ is thus far the only regular premium unit-linked pension plan based on IRDA guidelines prescribing to a minimum guaranteed return of 4.5%.

This move arrives at a time when the IRDA has been pushed to draw back the disputable 4.5% guaranteed return section following opposition from private life insuring companies, who indicated that such returns were not viable.

Furthermore, LIC is likely to continue with the existing scheme, even if the pension rules are revised in the coming months. The product ‘Pension Plus’ was launched in September 2010, and collected a premium of approximately Rs. 400 crore.

IRDA is now planning to drop the ‘guaranteed return clause’ in pension product norms, as private life insuring companies are refusing to launch any pension products.

Big hike in insurance covers for Ganpati mandals

During all the Ganesh Utsav celebrations, the increasing prices of raw materials have increased the cost of idols by thirty per cent this year and hence the insurance cover too has shot up.

The ‘Ganpati Seva mandal’ at King's Circle is the richest in city and according to sources, has insured its festivities for fifteen for a stupendous amount of Rs. 150 crore. At the pandal, the Ganpati is decorated with gold and silver ornaments and various types of precious stones. At the Lal Bag Pandal, the insurance cover is worth Rs. 14 crore.

Although Ganesh Utsav festivities are celebrated all over the country, the celebrations are most elaborate in Maharashtra. Lord Ganesh idols were established in homes and various public places, after performing traditional pooja. 

As per the Mumbai civic body, a total of 191000 idols are installed across the city; of which 180650 are in local households and 10350 are at Ganesh Mandals. 

Insuring companies to play key role in vehicle designing

Insuring companies have started working with auto manufacturers into making some fine changes in auto designs with an aim to reduce insurance claims. This way, both insurers and auto manufacturers are benefiting as it aids in cutting down claims ratio and a reduction in turnaround time at workshops. 

ICICI Lombard, Bajaj Allianz, Royal Sundaram, National Insurance, New India Insurance and Iffco Tokio are some of the names who cooperate regularly with auto manufacturers Ford, Maruti Suzuki and Hyundai, giving them advice on causes of claims. 

Auto manufacturers use these feedbacks to calculate modes of cutting down damage due to accident and miserable road conditions. Design changes are carried out if found to be cost-efficient, helping to bring down the claims. 

Maruti Suzuki has been commonly obtaining technical inputs from insuring companies on reasons of claims for the last 3-4 years.

Star Union Dai-ichi registers 23.2 percent growth on premium basis

Life insurance company-Star Union Dai-ichi (SUD Life), has recorded a growth of 23.2% as on 31^st July on the premium basis. This year it is Rs. 148.98 crore as against Rs. 120.90 crore as on 31^st July 2010. 

Star Union Dai-ichi Life Insurance Company Ltd is a joint venture between Bank of India, Union Bank of India, and Dai-ichi Life Insurance of Japan.

Even though the private life insurance sector is registering a negative growth rate of 24.8%, the company has achieved a high growth rate of 23.2%. 

The company sold 19,631 policies in 2010, which has increased to 26,049 policies in 2011. The insurer is basically a Bancassurance company at this point and is selling its policies through Union Bank of India, Bank of India, and seven Regional Rural Banks.

SUD Life MD and CEO, Kamalji Sahay said in a statement, "We aim to continuously provide the highest levels of service excellence and to this end our quality initiatives have played a pivotal role. At Star Union Dai-ichi, we constantly explore ways to provide solutions to a wide variety of customers. We recognise and adhere to these evolving trends in customer psychology to provide customised solutions to meet these aspirations."