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.

Be a Safe Driver: Lower Your Insurance Premium

Indian private insurance company, Future Generali, is soon going to launch ‘pay-as-you drive’ model in motor insurance. In this model, the vehicle owner has to pay premium based on his driving performance and the mileage.

Now, driving safely and following traffic rules will be rewarded in the form of discounts in insurance premium for the motor vehicles.

The premium paid by bad drivers and those with high mileage will be higher than the one paid by good drivers and infrequent users of vehicles as these are more at risks. Also, those going on a long holiday would not have to have insurance for the whole year but only for the number of days they use the vehicle.

The company is preparing the pricing model for the product and is hoping to offer it to customers in three months time.

Future Generali takes a step ahead to simplify motor insurance claims

Indian private general insurer, Future Generali India Insurance Company on Wednesday launched two customer services ‘Future Xpress’ and ‘Future Xpress⁺” to ease motor claims settlements for its customers.

The primary aim of both these services will be to offer its customers a smooth and fast settlement of motor insurance claims. It is a common perception among general public that claim process is tiring and burdensome job, so both these services’ aim will be to offer clients a smooth claims settlement process.

Future Xpress is aimed towards those customers who want to get their vehicle repaired immediately and at affordable rates. It will help these customers to get speedy settlement; while, Future Xpress⁺ will help those customers who want to get their claim settled on the spot. It has got an extra option of getting their vehicle fixed at the workshop of their choice.

Future Xpress Future Xpress⁺ and will make the claim process easy and in the long run it will save lots of money and time.

Kerala HC Increases Mangalore Crash Victims’ Compensation

Nearly one year has passed since the Air India Mangalore crash, in which 158 lives were lost. Immediately, controversy flared up between the families of crash victims and Air India over compensations.

The insurance companies had calculated the compensation the basis of 'the loss of livelihood’, whereas the victims' families wanted it on the basis of 'the loss of life’. The victims' families claim was that according to Montreal Convention, compensation should be calculated on the basis of 'the loss of life’.

The Montreal Convention establishes compensation rules for air disasters’ victims.

Initially, Air India agreed to pay Rs. 20 Lakh compensation to each of the victims' kin. Besides this, Rs. 15 Lakh was paid by various government agencies. But the victims' families did not agree and took the case to the Kerala High Court.

On Wednesday, Kerala High Court directed Indian Flag Carrier to pay Rs. 75 Lakh each to the families of 158 passengers killed in the crash. One month time has been given to Air India to pay the compensation. 

Piramal Healthcare Said To Enter Insurance Industry

Piramal Healthcare is all set to enter the Indian insurance sector as it negotiates to buy Enam Financial's share in ING Life Insurance. ING Life Insurance is a joint venture between Exide Industries holding 50% stake, ING Insurance International B.V. holding 26% shares and others 24%.

Piramal aims to start a financial services company and has applied for permission from Reserve Bank of India. Previous year, it sold off its domestic formulations business to US Abbott Laboratories and its diagnostics business to Super Religare Laboratories for Rs. 600 crore.

ING Life was set up in 2001 and despite being one of the earliest entrants; it still has to make a mark in the industry.

In the fourth quarter of 2010-11, the company posted a net profit of Rs. 7 crore and is aiming to break even by financial year 2013. ING Life has offices in 229 cities and about 35000 agents. 

Insurance Summit 2011 To Address Issues Facing Indian Insurance Industry

India's leading business Newspaper, the Economic Times is coordinating ‘Insurance Summit 2011’ with an aim to address the issues facing the Indian insurance industry. The summit will bring together some of the brightest minds from Indian insurance industry. These experts will contribute their outlook on the fundamental challenges and opportunities facing the insurance industry.

The Summit will be addressed by its Chairman, D.K. Mehrotra, MD, LIC of India followed by Mr. J. Hari Narayan, Chairman, IRDA.

The summit is a platform on which various Industry leaders can discuss different strategies to prompt development of the Insurance industry.

The day long summit will focus on various topics such as preparing insurance industry to breeze through rough times, exploring new horizons in Insurance industry, emerging opportunities and challenges in the industry, etc.