Page 21 - Insurance

'Changes to be made in surety bond offering for making it more lucrative'

Road, transport and highways minister Nitin Gadkari on Tuesday said that changes will be made to the surety bond offering to make it more lucrative as no contractor is buying it because of the strict conditions imposed by insurance regulator Irdai. Last year in December, Gadkari launched the country's first-ever surety bond insurance product, with an aim to reduce the dependence on infra developers of bank guarantees. "Don't impose such conditions that nobody is able to take benefit of the scheme...It took 3 years to come out with surety bonds and when it has been finally launched, no contractor is buying it," Gadkari said at an event organised by CareEdge Ratings. The product, from the stable of Bajaj Allianz General Insurance, has been developed in response to a demand identified by the industry and the government. "Changes will be made to surety bond offering to make it more lucrative," he added. The Surety Bond Insurance is a risk transfer tool for the principal and shields th

SBI General unveils 'Surety Bond Bima' for infrastructure projects

SBI General Insurance, the non-life insurance arm of State Bank of India (SBI), on Tuesday announced the launch of the General Surety Bond Bima (Conditional & Unconditional)' insurance product. Surety Bond Insurance will act as a security arrangement for infrastructure projects and will insulate the contractor as well as the principal (contract awarding authority). The product is designed to provide protection against breach of terms and conditions by the contractors either during the bidding stage or during the performance stage of a project, SBI General said in a statement. The Surety insurance product consists of a wide range of bonds, such as bid bonds, advance payment bond, performance bond, and retention money bond, it said. The product caters to the requirements of a diversified group of contractors, many of whom are operating in today's increasingly volatile environment, he said while launching the product. Additionally, the statement said, there are two variants available

From inclusive banking to inclusive insurance

As insurance penetration deepens, India will have a decent pool of long-term funds to support infrastructure building and the government's borrowing programme, easing the burden on the banking system

Insurance industry's direct premium to cross Rs 3 trn by FY25: Icra

The insurance industry is expected to net gross direct premium income (GDPI) of about Rs 3 lakh crore by FY25 as against Rs 2.4 lakh crore at the end of March 2023, a report said. Private insurers' combined ratio is likely to improve and Return of Equity (RoE) is expected at 11.2-12.8 per cent in FY2024 and 12.5-13.9 per cent in FY2025, ICRA said in a report. Most PSU insurers are expected to witness high combined ratio resulting in net losses, though it will be lower compared to last few years, it said. Moreover, it said, the capital requirement of three PSU general insurers (excluding New India) is estimated at a sizeable Rs 172-175 billion to meet solvency of 1.50 times as of March 2024, assuming 100 per cent forbearance from the regulator. The industry's GDPI grew a sharp 17.2 per cent year-on-year (YoY) in 2022-23 to Rs 2.4 lakh crore with the resumption of economic activity after the waning of Covid-19 infections. In absolute terms, the report said, the incremental growth in

Go Airlines gets portion of aircraft hull insurance premium from insurers

With 50 per cent of its fleet grounded due to the problems with Pratt & Whitney engines, the Wadia group's low cost Go Airlines (India) got a portion of its aircraft hull insurance premium from its insurers, said a top official.

Max Life partners IIA to offer insurance access to MSME workforce in UP

Max Life Insurance Company on Monday announced a partnership with the Indian Industries Association (IIA) to provide life insurance plans to the workforce of micro, small, and medium enterprises (MSME) in Uttar Pradesh. Under the recently announced Irdai's State Insurance Plan, Max Life aims to enhance accessibility and drive insurance penetration across Uttar Pradesh, the insurer said in a release. IIA has an extensive network across industrialized districts, it added. "Through this partnership, we aim to reach the underserved population in Uttar Pradesh, the country's most populous state, and financially secure the future of more than 11 lakh MSME workforce and their families," said V Viswanand, Deputy Managing Director, Max Life Insurance. Ashok Kumar Agarwal, President, Indian Industries Association said that for close to four decades, IIA has been working consistently towards creating an environment conducive to industrial growth, especially for MSMEs in India. The activities

Irdai proposes to tighten norms for media campaigns by insurance cos

Regulator Irdai is proposing to tighten norms for insurance advertisements by assigning higher responsibility on senior management of insurers in designing and approving media campaigns for product promotion. In this context, the Insurance Regulatory and Development Authority of India (Irdai) has proposed an amendment in the 2021 regulations on insurance advertisements and disclosure. Under the proposed amendment, each insurer will be required to constitute an advertisement committee comprising at least three members mandatorily from marketing, actuarial and compliance functions of the insurer. "The objective of the amendment is to assign higher responsibility on the senior management while designing and approving the advertisements for the consumption of the customers," said the exposure draft on which Irdai has invited comments from the stakeholders by May 25. The committee will be required to report to the product management committee, the draft said. It further said the produc

Telangana govt to introduce insurance scheme for toddy tappers: CM Rao

: Telangana Chief Minister K Chandrasekhar Rao is set to introduce the 'Geetha Karmikula Bhima' (insurance for toddy tappers) on the lines of Rythu Bhima for farmers, which is currently being implemented in the state. A press release from the chief minister's office said that insurance money of Rs five lakh would be deposited directly in the bank account of the respective family members in case any toddy tapper dies accidentally while collecting toddy from palm trees in the fields. The CM instructed State Finance Minister T Harish Rao and Excise and Prohibition Minister V Srinivas Goud to prepare guidelines for the new insurance scheme, the release said. Chief minister KCR held a review meeting in this regard at the newly inaugurated Dr B R Ambedkar Telangana Secretariat. He expressed concern that there were unfortunate incidents of toddy tappers losing their lives due to accidental falls from trees. and said it was the responsibility of the government to support the families of t

Star Health Insurance earns net profit of Rs 102 cr in March quarter

Star Health and Allied Insurance on Friday reported Rs 102 crore net profit for the fourth quarter ended March 2023. The standalone health insurer had booked a loss of Rs 82 in the January-March quarter of the preceding fiscal. The insurer collected gross written premium (GWP) of Rs 4,199 crore in the quarter against Rs 3,689 crore in the year-ago period, it said in a regulatory filing. The net premium income increased to Rs 19,426.57 crore compared to Rs 14,289.66 crore. For the entire 2022-23, profit after tax (PAT) stood at Rs 619 crore against a loss of Rs 1,041 crore in FY22. "During the year ended March 31, 2023, the company pursuant to the approval received from the Insurance Regulatory and Development Authority of India (Irdai) has exercised Call Option and redeemed the Subordinated debenture in full on September 6, 2022, and October 29, 2022, amounting to Rs 200 crore and Rs 50 crore, respectively, including interest thereon," the insurer said. The corresponding debentur

Bajaj Allianz declares bonus worth Rs 1,201 cr for policyholders

Offer will benefit 1.14 mn policyholders, says insurance company

NFRA examines ICAI proposals on accounting standard for insurance contracts

The National Financial Reporting Authority (NFRA) has discussed the ICAI proposals on a new Standard (Ind AS) for the accounting of insurance contracts. The audit regulator received these proposals from the Institute of Chartered Accountants of India (ICAI). NFRA will share its recommendations with the Ministry of Corporate Affairs (MCA), after which Ind AS 117 has to be considered and notified by the central government under the Companies (Indian Accounting Standards) rules 2015. When notified, it will replace the current notified Ind AS 104, insurance contracts, according to an official release. IFRS 17, originally issued by the International Accounting Standards Board (IASB), in May 2017, is a complete overhaul of the accounting for the insurance industry. It is specifically designed to capture the unique features of the insurance and investment contracts of the insurance entities. "This standard will enable the Indian insurance industry to present globally comparable financia

Healthy reduction

Out-of-pocket health spends must fall faster

Par for the course: Lock in returns for long term with non-par plans

Avoid these plans if you require liquidity in the short run

Delhi to provide free bus travel, transit hostels to construction workers

Free bus travel, group life insurance and transit hostels -- these are some of the facilities the Delhi government will extend to the 13 lakh registered construction workers in the national capital. Chief Minister Arvind Kejriwal chaired a high-level meeting with the Labour Department on Monday to review the functioning of the Delhi Building and Other Construction Workers Welfare Board. Kejriwal said that even though 13 lakh construction workers are registered with the board, it has not developed any mechanism to verify their existence and reach out to them. "If the department is extending the benefit of these schemes to barely 400-500 people..., there is no point in running this department itself. If the department has Rs 3,000-4,000 crore lying with it, then it must extend the benefit of its schemes to all 13 lakh workers. There can be no compromise with the welfare of our workforce," he said. He also directed officials to conduct a proper exercise along with Revenue Department .

LIC's knock-on effect: New business premium of insurers drops 12%

New biz premiums of private insurers jumps 35% in March, aided by pick-up in sales of high-value policies

After insurance firms, now private banks under income tax scanner

Two large private banks are suspected of taking advantage of their position as intermediaries to get additional revenue from insurance companies

20,000 PSU non-life insurers employees should be deployed in marketing: EY

There could be a huge influx of insurance marketing personnel in the market as nearly 20,000 employees of the government-owned general insurance companies are recommended be deployed in that role, as per consultancy firm Ernst & Young's (EY) report.

Insurance Samadhan launches Polifyx, a one-stop solution for customers

Polifyx is backed by domain experts with over 100 years of cumulative experience in the insurance industry

DFS secretary meets chief secretaries to boost PMJJBY, PMSBY enrolments

In a bid to give a push to micro insurance schemes, Financial Services Secretary Vivek Joshi held a meeting with officials from 10 central ministries and departments, including those from labour and employment, housing and urban affairs, agriculture and farmers welfare, and rural development. Representatives of the Ministry of Panchayati Raj, Ministry of Mines, Ministry of Women & Child Development, Ministry of Coal, Department of Post and India Post Payments Bank (IPPB) were also present in the meeting called with a view to boost coverage under micro-insurance schemes -- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) -- at the Gram Panchayat level. A three-month campaign will cover all the districts in the country from April 1 to June 30, 2023, the finance ministry said in a statement on Wednesday. Joshi exhorted the ministries/departments concerned for the maximum coverage of Self-Help Groups (SHG) members, Anganwadi workers, ...

Irdai looking at 20 more insurance applications: Chairman Debasish Panda

Insurance regulator Irdai has given licence to a General insurer for the first time since 2017, close on the heels of allowing two more applicants in the Life space and is looking at around 20 more applications, its Chairman Debasish Panda said on Wednesday. The latest to get the licence is Kshema General Insurance and earlier in the year Credit Access Life and Acko Life were given licences, Panda said, adding the regulator is looking at around 20 more applications. The Life licence was last given in 2011, the Chairman told reporters on the sidelines of an industry summit organised by the industry lobby Ficci here. There are 23 life insurers and 33 general players operating in the country now. The industry closed February with an AUM of Rs 59 lakh crore with a premium value of Rs 10 lakh crore, a growth of 16 per cent. Addressing the gathering, the regulator asked the industry to take the "Insurance for All by 2047" mandate not as a slogan but as a call to action and expressed ..