News

Treatment Cost To Rise By 20% Across State-Run Hospitals In Maharashtra

Mariya Panwala — Fri, 22 Dec 2017 11:04:00 GMT

Treatment Cost To Rise By 20% Across State-Run Hospitals In Maharashtra

22-Dec-2017 22-Dec-2017'

From the 1^st of January 2018, the treatment cost across all state-run hospitals in Maharashtra is expected to rise by 20%. Below are some of the cases in point –

The case paper is expected to cost double from ₹10 now.
Surgery charges to be revised at ₹250, up from ₹140 now.
Disability Certificates for job-seekers will be provided for ₹500 for which the current charges are ₹150. However, the cost of plain disability certificate will see no change.
The patients currently pay ₹1,000 for each day after an 8-day stay in the hospital. From January 1^st onwards, the cost is expected to increase to ₹2,000.
Nursing home beds will cost ₹800 per day, up from ₹500 now.

Why the revision though?

As revealed by the joint director of the Department of Medical Education and Research (DMER) Dr T P Lahane, the decision has been arrived at in order to raise funds to provide for the expenses incurred on hospital equipments. The higher fees will aid hospital authorities to meet the immediate repair needs of the equipments. Consequently, the cost of about 1,129 services (including diagnostics and surgeries) is expected to rise.

In Mumbai, the revised rates will have an effect on at least 3,000 patients seeking treatment in four different J J group of Hospitals, namely Byculla’s J J Hospital, St. George, Cama and G T Hospital. Across Maharashtra, about 20,000 patients will be impacted on a daily basis. Considering this, it is the right time to buy a health insurance plan to manage the increased cost of the medical treatments.

For further updates on the report, keep following OneInsure's news thread.

(Source and Credits: The Times of India)

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Aadhaar Number Now Mandatory For Varishtha Pension Bima Scheme

Mariya Panwala — Fri, 24 Nov 2017 07:48:00 GMT

Aadhaar Number Now Mandatory For Varishtha Pension Bima Scheme

24-Nov-2017 24-Nov-2017'

Mariya Panwala

Are you a Varishtha Pension Bima scheme holder? If yes, then it’s time to make sure that you possess an Aadhaar card.

What is Varishtha Pension Bima Scheme?

Varishtha Pension Bima Scheme is an LIC pension plan for senior citizens. Under this plan, the policyholder is required to make a lump sum payment in the beginning of the scheme to be eligible to receive annuity for the rest of his/her lifetime. Varishtha Pension Bima, being a pure annuity scheme does not provide maturity or death benefit. The premiums paid under the scheme are exempted from tax while the pension received will be taxable.

The News

The finance ministry on 20^th of November, 2017 declared that those who hold Varishtha Pension Bima Yojana have to either supply evidence of possession of an Aadhaar number or go through Aadhaar authentication to be eligible to receive benefits under the plan.

The policyholders who do not possess Aadhaar numbers are thereby required to put forward an application to get enrollment by 31^st of December.

From 20^th of November, the notification has become effective across the country except for the following states –

Jammu & Kashmir
Assam
Meghalaya

Amid this, however, the Supreme Court is yet to provide a final decision in response to the petitions received that challenge the legality of Aadhaar claiming it to be an interference into a citizen’s basic right to privacy. A bench of judges will discuss on the issue up next week.

To receive further updates on this subject, keep following OneInsure. Also read 'How to link Aadhaar to Insurance Policies'

(Source and Credits: Economic Times)

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Paytm To Venture Into Insurance Sector As Corporate Agent

Mariya Panwala — Sat, 09 Sep 2017 12:44:00 GMT

Paytm To Venture Into Insurance Sector As Corporate Agent

09-Sep-2017 09-Sep-2017'

Mariya Panwala

The parent of Paytm Payments Bank, One97 Communications is all set to distribute the insurance policies of various insurers. As per some reports, the company had applied to Insurance Regulatory Development Authority of India (IRDAI) for a corporate agency license to carry out their new venture. The same seems to have been approved by the insurance regulator and the company which is currently leading in India in terms of mobile banking will start selling both life and general insurance products.

The flashback

Earlier this year, Paytm had received the closing approval from India’s central banking institution Reserve Bank of India (RBI) for setting up a payments bank. Now they’re gradually moving towards penetrating the insurance services in India. Currently, as per IRDAI doctrines, any bank including finance and payment banks can are allowed the maximum tie-up with three life, three non-life and three standalone health insurance companies.

Other Insights

Amit Gupta will fill in the position of the principal officer
The license received from IRDAI will be valid from this month onwards up until August 2020 i.e. for a period of 3 years which is same for AU Small Finance Bank as well that too recently received the same approval.

For further updates on the subject, stay tuned with the news thread of OneInsure.

(Source and Credits: Money Control)

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Raheja QBE Launches Its First Health Insurance Product

Madhurima Pawar — Wed, 06 Sep 2017 11:38:00 GMT

Raheja QBE Launches Its First Health Insurance Product

06-Sep-2017 06-Sep-2017'

Madhurima Pawar

Raheja QBE has recently launched its first ever Health Insurance Product. As claimed, the product has some unique features and is specifically designed keeping in mind the requirements of the High Net Worth Individuals (HNIs).

In an age where human health is constantly in threat, health insurance comes in as a rescue when one most needs it. Having the best of the plans with the right add-ons take care of the unexpected expenses. A health insurance plan therefore is of utmost importance.

According to the MD and CEO of Raheja QBE Mr Praveen Gupta, this health insurance product is made flexible to customize the needs of particular clients. It has the following features:

Policy seeker can avail the Sum Insured amount up to ₹50 lakhs
10% additional sum insured will be given when the claimant uses cashless facility
Varied features in a single policy

Raheja QBE is one of India’s major non-life insurance companies that works in alliance with The Rajan Raheja Group which is popular as one of India’s diversified business groups.

To keep updated with similar products in the market, keep following our news thread.

(Source and Credits: Bimabazaar)

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IRDAI New Guidelines for Car Dealers Selling Insurance

Mariya Panwala — Wed, 06 Sep 2017 07:41:00 GMT

IRDAI New Guidelines for Car Dealers Selling Insurance

06-Sep-2017 06-Sep-2017'

Mariya Panwala

As per the new guidelines issued by the Insurance Regulatory Development Authority of India (IRDAI), the automobile dealers who distribute car insurance will have to surrender their existing license and become MISPs to be eligible to sell insurance to customers. The new guidelines are expected to come into force from Nov 1, 2017.

What is an MISP?

Dealers who are currently distributing insurance will be referred to as Motor Insurance Service Providers (MISP) as soon as they get licensed under the new guidelines of IRDAI. MISPs will also be granted a Unique Identification Number (UIN) that will be linked with their Aadhaar Card number.

Why This Initiative?

The objective of this initiative is to oversee the activities of dealers that are sell motor insurance, which will, in turn, ensure security in the transaction process and guarantee customer-oriented services.

How Is the Initiative Going to Be Implemented?

Post the acquirement of the new license, MISPs will not be able to show favouritism towards policyholders who have got their insurance from them. Also, earlier MISPs had a tie-up with 2 – 3 insurers, but now they are required to have as many as 23 tie-ups. This will ensure that they offer a choice from a wide range of insurers whereby the customer can select the insurer as per his/her requirement. Hence, the consent of the customer has been received before selling the insurance of a particular insurer, which wasn't the case earlier.

Having said that, the existing automotive dealers will stand ineligible to distribute insurance. They are required to first surrender their existing license and become an MISP in order to be eligible to sell motor insurance. A set of rules has also been issued in connection with the appointment and training of the MISP by the insurer. These rules will also aid the insurers during renewal procedure of the license of MISPs. Not just that, the MISPs can also aid the policyholders in handling their claim documentation and servicing. However, they are strictly barred from interfering both in the appointment and assessment activities of the loss surveyors. Neither are they permitted to make personal profits of any sort by influencing claims.

Liked what you read? Wish to keep updated with similar financial information or receive financial tips on a weekly basis? Join our WhatsApp broadcast list where hundreds of other people are benefitting every week from our financial tips shared through articles. Take a smart decision today by sending "Start" through WhatsApp on 98202-25238.

(Source and Credits: TEAM-BHP)

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Indian Insurance: Unclaimed money has reached ₹12,000 crores

Mariya Panwala — Mon, 04 Sep 2017 07:59:00 GMT

Indian Insurance: Unclaimed money has reached ₹12,000 crores

04-Sep-2017 04-Sep-2017'

Mariya Panwala

Earlier, OneInsure informed you about government’s decision of transferring the money that has been lying unclaimed for more than 10 years to the Indian government's Senior Citizens Welfare Fund. As per the latest development on the subject, the hitherto calculation of the unclaimed money that lies with the insurance companies, including both life and general insurance in India, has reached about ₹12,000 crore.

How does the money remain unclaimed?

At times, the policyholders do not raise claim against their insurance money which leads to their cover remaining unclaimed with the insurers.

What could be the reasons that the policyholders do not raise claim against their policies?

Policyholders may have forgotten about their policy.
The nominee/s has no knowledge about the policy, so in the event of the sudden demise of the policyholder, the policy money remains unclaimed.
The policyholders haven’t claimed for the premium refund amount

These are the major reasons that have led to the accumulation of ₹12,000 crore unclaimed money that is to be claimed by the rightful owner. Amongst the insurers, the highest amount of the unclaimed money has been lying with Life Insurance Corporation (LIC) – ₹6,003.47 crores. Amongst the other insurers with whom lie as much as ₹500+ crores unclaimed money are -

HDFC Standard Life – ₹946.26 crores
ICICI Prudential Life – ₹783.70 crores
Bajaj Allianz Life – ₹632.82 crores
SBI Life – ₹549.29 crores
Reliance Nippon Life – ₹546.71 crores

For further updates on the subject, keep following our news thread.

(Source and Credits: DNA)

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Manipal Group to procure TTK’s stake in ManipalCigna Health Insurance

Mariya Panwala — Sat, 02 Sep 2017 06:33:00 GMT

Manipal Group to procure TTK’s stake in ManipalCigna Health Insurance

02-Sep-2017 02-Sep-2017'

Mariya Panwala

Manipal Group that is of prime importance in India’s education, IT and financial services sectors is all set to procure TTK’s stake in ManipalCigna health insurance joint venture– the standalone health insurer. Manipal Group after establishing its presence in the aforementioned sectors looks forward to penetrating the insurance sector. However, an approval from the insurance regulator – Insurance Regulatory Development Authority of India (IRDAI) is yet to be received. If the development takes place, Manipal Group will be holding 51% of the total stake in the joint venture while Cigna will increase its stake from 26% to 49%. This will eventually raise the former’s share capital from ₹250 crore to ₹350 crore.

Sandeep Patel, the CEO of ManipalCigna health insurance regards the venture to be of great significance that will focus on expanding their distribution network, bettering digital capabilities and bringing in innovation in their products and services.

ManipalCigna is a joint venture between the Cigna and the TTK Group where the former is a global insurance giant and the later is an Indian corporation. The venture has been providing health insurance services since its inception that took place in the year 2012. Post the change in stake, TTK Group is reported to be focusing on its core strength - consumer business.

The reports on the venture are in its development stage. Stay tuned with OneInsure to get further updates on the development.

(Source and Credits: The Economic Times)

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Vehicle Insurance Renewal: Mandatory Requirement of PUC Certificate

Mariya Panwala — Thu, 10 Aug 2017 13:58:00 GMT

Vehicle Insurance Renewal: Mandatory Requirement of PUC Certificate

10-Aug-2017 10-Aug-2017'

Mariya Panwala

The Supreme Court of India on Thursday passed a law under which all the Delhi-NCR vehicle owners will now have to compulsorily provide with PUC (Pollution-under-Control) certificate if they wished to renew their vehicle insurance.

Why is this rule imposed?

The rule has been enforced as part of one of the initiatives of curbing pollution. As per reports, the air-pollution in the national capital was rising at an alarming state. A preventive measure was hence considered and this decision has been reached in a court case.

Reports state that there were oppositions on the implementation of the rule from the Centre on the basis that PuC checks are done in intervals during the year while renewal of the insurance is an annual affair. However, it was later decided that the vehicle owner can furnish either of the last four or two PUC certificates to apply for the renewal.

What would be the impact of the directive?

After the implementation of this directive, it is expected that all vehicle owners who seek to renew their insurance will submit the necessary document and assist in the initiative of curbing the air pollution.

For future insurance related news, keep connected to our website.

(Source and Credits: Financial Express)

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IPO News: GIC and New India Assurance to file for IPO

Mariya Panwala — Thu, 27 Jul 2017 08:31:00 GMT

IPO News: GIC and New India Assurance to file for IPO

27-Jul-2017 27-Jul-2017'

Mariya Panwala

General Insurance Corporation of India (GIC) and New India Assurance (NIA) are to file for an initial public offering (IPO) in the coming couple of weeks.

The flashback

While GIC is a government-owned re-insurance company, New India Assurance is an autonomous general insurance company which was earlier, alongside four others, a subsidiary of GIC until GIC became a re-insurance company. The latest developments however bring them together to file for an IPO.

Last week, OneInsure informed you about SBI divesting its stake from SBI Life and filing with the insurance regulator IRDAI for IPO with an aim to raise about ₹1 billion. Later, OneInsure informed you that HDFC may as well file for an IPO in case HDFC-Max Life merger decision was to be kept on the back burner. And now, GIC and New India Assurance are set to join in the queue with other insurers who have either already filed or are planning to file for an IPO.

Insights of GIC-New India Assurance IPO

The government is expected to divest as much as 10% of its stake from both the companies for initial public offering
From its IPO, the government is likely to raise ₹10,000 crores
Axis Capital, Citibank, Deutsche Bank, HSBC and Kotak Mahindra Capital Co. Ltd have been approached by GIC to look after the management of IPO
Yes Bank, Kotak Mahindra Capital, Axis Capital, Nomura and IDFC have been chosen by New India Assurance to manage the IPO

With more and more companies considering to divest their stake and file for an IPO, insurance sector is set to witness considerable change in the coming decades. Tune in to OneInsure for latest news on the same.

(Source and Credits: Live Mint)

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IRDAI Guidelines: Transfer Unclaimed Money To Senior Citizens' Fund

Joan — Wed, 26 Jul 2017 09:32:00 GMT

IRDAI Guidelines: Transfer Unclaimed Money To Senior Citizens' Fund

26-Jul-2017 26-Jul-2017'

Joan

As per the new order issued on Monday by Insurance Regulatory Development Authority of India (IRDAI), the unclaimed money resting with the insurance companies from past 10 years up until 30^th September 2017 will have to be transferred to senior citizens’ fund at the latest by 1st of March 2018. The directive shall apply to both life and non-life insurance companies.

Why is there an unclaimed accumulation?

It turns out that at times, the policyholders after paying some portion of the chunk towards their premium discontinue with the policy without availing the benefits for several reasons. Other times, the nominees of the policyholders have no knowledge of the policy thereby their failure to make any claim leads to a build up in the unclaimed amount. This unclaimed accruals remain with the respective insurance companies. It is this amount that the IRDAI has ordered insurers to transfer to senior citizens’ fund account. The directive is aimed at providing financial support to the needs of the senior citizens of India. The insurers are expected to complete the process of transfer on or before March 1 next year in order to comply with the instructions of IRDAI.

Consequently, the insurers will now have to prepare themselves and make provisions to get all the required details of the unclaimed accumulation and submit the same to the insurance regulator. Post the directive, as per a senior official, a total of over ₹100 crore is estimated to be transferred to the fund.

For further updates, keep following our news thread.

(Source and Credits: Live Mint)

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Mandatory Insurance from August 1 for ECR passport holders

Joan — Mon, 24 Jul 2017 10:15:00 GMT

Mandatory Insurance from August 1 for ECR passport holders

24-Jul-2017 24-Jul-2017'

Joan

Insurance is going to be mandatory from 1^st of August 2017 for all ECR (i.e. Emigration Check Required) passport holders who travel to 18 notified countries for employment.

What is ECR passport?

Indian passports are divided into 2 categories, namely Emigration Check Required (ECR) and Emigration Check Not Required (ECNR). Now the passports that are issued before January 2007 are categorized as ECR and those issued later fall under ECNR category.

Why and how?

The new guideline has been introduced under the scheme of Pravasi Bharatiyan Bima Yojana 2017 by the ministry of external affairs. Post this; Indians registering for emigration clearance should have an insurance policy for accidental death or permanent disability for 2-3 years of minimum period. The applicant who is employed abroad needs be covered for at least 10 lakhs. Once the emigrant gets the policy, s/he can avail the benefits from the same policy even if the employer or the emigrant’s location for that matter changes. The regulation is going to bring a significant change in the insurance sector.

What will be the impact?

As per statistics, over 6 lakh Indians with ECR passports travel abroad for employment as unskilled, semi-skilled and skilled workers. Indian states like Tamil Nadu, Kerala, Andhra Pradesh and Karnataka (about 1.5 lakh workers) have a massive outflow of emigrants both in terms of white and blue-collared jobs out of which hitherto most of the blue-collared workers avoided purchase of insurance policies. However, from now onwards, all the emigrants holding ECR passports whether white or blue-collared, are compelled to have an insurance.

For further updates on insurance-related news, keep following our news thread.

(Source and Credits: The Times of India)

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Motor Vehicle Act Amendment Bill 2017 Highlights With Opinion

Mariya Panwala — Thu, 20 Jul 2017 07:41:00 GMT

Motor Vehicle Act Amendment Bill 2017 Highlights With Opinion

20-Jul-2017 20-Jul-2017'

Mariya Panwala

In 2015, road accidents increased by 2.5%. In the same year, the number of people killed and injured in road accidents saw a rise by 4.6% and 1.4% respectively. If reports are to be believed, road accidents take away one life in every four minutes.

Amid these appalling statistical data, the Motor Vehicle Act Amendment Bill 2017 surfaces as a ray of hope. Of course only if implemented, will we be able to witness a drastic downward movement in the statistical figures. Although the Bill has been passed by Lok Sabha, it is yet to receive a green signal from Rajya Sabha in the coming monsoon session of Parliament. Meanwhile most of us await a positive response on the Bill; we bring to you the highlights of the proposals made in the Motor Vehicle Act Amendment Bill 2017.

Aadhaar will be obligatory for the one seeking driving licence and vehicle registration.
A compensation of ₹2 lakhs to be provided to the victim’s family in the event of deaths by hit-and-run cases. At present this compensation stands at ₹25,000.
A mandatory insurance cover for specific kind of accidents will be provided to all who access roads in India.
Drunk driving will attract a fine of ₹10,000 from current ₹2,000.
While over-speeding will cost a fine of ₹1000-₹2000 from current ₹400, avoiding the use of seat belt will draw a fine of ₹1000.
Driving without licence currently costs one ₹500. The Bill has proposed a fine of ₹5,000 against the defaulter.
A fine of ₹1000-₹5000 for using mobile phones while driving.
Rash driving will attract ₹1000-₹5000 fine.
For specially-abled individuals, the Bill compels to alter vehicles.
For third party, the current Bill has a cap of maximum liability of ₹10 lakhs in case of death and ₹5 lakhs in case of serious injury. However, the proposed Bill has removed the cap.
Contractors et al. will be held liable for flawed designs and constructions.

If the proposed Bill is implemented, the country is expected to witness a downward steep in road accidents and fatalities. This can be a giant leap by the government towards its commitment of curtailing road accidents to 50 percent by the end of the decade.

How is the Bill going to impact Insurance sector?

Safety of the lives of the customers is what every insurer would wish for. In fact, to ensure that their customers live a longer and healthier life, insurers today are investing in creating different awareness programmes including activities against alcohol and tobacco consumption. Some insurers like Apollo Munich and Aditya Birla reimburse some percent of the premium to those customers who make additional efforts in the direction of a healthier lifestyle. Likewise, the proposed Bill if implemented will ensure safety on the road. This will eventually protect people’s lives thereby safeguarding the interest of the insurers. Therefore, the Bill is sure to have a positive impact on insurance sector.

Source of Statistical information: Ministry of Road Transport and Highways Report-2015

(Source and Credits: The Economic Times)

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SBI Life Files for IPO

Mariya Panwala — Tue, 18 Jul 2017 08:05:00 GMT

SBI Life Files for IPO

18-Jul-2017 18-Jul-2017'

Mariya Panwala

Earlier, we reported about SBI’s executive committee reaching a consensus of divesting its stake from SBI Life Insurance and offering 80 million shares for an Initial Public Offering (IPO). The latest reports state that furthering its plan, yesterday i.e. on 17^th of July 2017, SBI Life has filed with Securities and Exchange Board of India (SEBI) its draft red herring prospectus for an IPO.

The company is expected to raise 80 million shares to yield over ₹1 billion from its IPO. To manage the event, SBI Life has reportedly hired several companies including SBI Capital Markets Ltd, Kotak Investment Bank, and BNP Paribas. With its latest decision, SBI Life is set to become the second (ICICI Prudential being the first one) private insurer in India that has offered its shares to the public.

SBI Life is a joint venture between State Bank of India and BNP Paribas that was founded in 2001. Today, the duo holds 74% and 26% of the stake respectively. While its authorised capital is ₹20 billion, it has a paid up capital of ₹10 billion. The company sells a variety of life insurance and non-life insurance products. It is also listed on Fortune Global 500 amongst biggest corporations globally.

While SBI Life has geared up to initiate public offering for its shares, HDFC Life too is expected to soon launch for an IPO. We shall keep you updated for the same.

Meanwhile, keep following our news thread.

(Source and Credits: Live Mint)

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IRDAI: All Mediclaim Policy Exclusions to Be Put Together Upfront

Mariya Panwala — Thu, 13 Jul 2017 15:21:00 GMT

IRDAI: All Mediclaim Policy Exclusions to Be Put Together Upfront

13-Jul-2017 13-Jul-2017'

Mariya Panwala

What’s the news?

Insurance regulatory development authority of India (IRDAI) has announced a new norm that compels them to club together all the exclusions of a mediclaim policy and put it upfront on the policy document.

What’s the objective?

Often when the policyholder is not well versed with the exclusions of the mediclaim policy, s/he at times ends up making claim for the excluded ailments. Consequently the policyholder gets agitated and disappointed. In an attempt to make the contract between the insurer and the policyholder more transparent, IRDAI has asked insurers to put together all the exclusions of the mediclaim policy upfront. The new norm will assure that the policyholders do not completely depend on insurance agents and their interest is protected.

In addition, it will be obligatory for the insurers to update their websites as and when a product is modified or withdrawn. The new norms are intended to guard the policyholders from any sort of misleading information about the policy.

For further updates on insurance, keep following our news thread.

(Source and Credits: Live Mint)

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HDFC-Max Life Merger: Board to Meet in the End of July

Mariya Panwala — Thu, 13 Jul 2017 11:13:00 GMT

HDFC-Max Life Merger: Board to Meet in the End of July

13-Jul-2017 13-Jul-2017'

Mariya Panwala

What’s the news?

Two of the insurance giants of India HDFC Life and Max Life both founded in 2000, are looking forward to have a merger to create a new company. HDFC Plus is the provisional name. If the merger takes place, HDFC Life which is not listed yet will automatically get listed since Max Life is already listed.

The Flashback

Earlier, Max Life had sought to merge with Max Financial which would ultimately merge with HDFC Life. However, the amalgamation would have contravened section 35 of the Insurance Act, according to which an insurance company cannot merge with a non-insurance company. Hence, although the amalgamation proposal was approved by the Board, it stood unapproved by the insurance regulator for its contravention with the law. Now, as per the reports, the structure has been re-worked upon and the Board is to meet on 17^th of July to take a final decision and a fresh scheme will be presented before Insurance Regulatory Development Authority of India (IRDAI).

The Insides

After the Board meeting, if the decision is positive, a fresh merger scheme will be presented before IRDAI. However, if the decision is negative, the amalgamation plans of the companies will be kept on hold for the future. Meanwhile, HDFC Life will go ahead with their earlier option of initial public offering (IPO) for which in the previous year the firm had appointed merchant bankers who were to start preparing for an IPO.

Conclusion

As per the new structure, HDFC Life and Max Life will see an amalgamation. If all goes well, the merger is expected to become the largest private-sector insurer in India.

(Source and Credits: Live Mint)

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Maharashtra Government Scheme: Free Medical Insurance for legislators and their families

Mariya Panwala — Wed, 12 Jul 2017 06:17:00 GMT

Maharashtra Government Scheme: Free Medical Insurance for legislators and their families

12-Jul-2017 12-Jul-2017'

Mariya Panwala

What’s the news?

In a recent update, the government of Maharashtra has resolved to offer free medical insurance of up to ₹10 lakhs to both sitting and former legislators including their families. Consequently, six members of the family will be collectively qualified for an insurance cover of ₹10 lakhs. There would be no compulsion for any family member to go under medical tests. The decision was announced by Chief Minister Devendra Fadnavis.

In order to execute this scheme, the government will have to earmark a total of ₹9.96 crore each year. In case of the exhaustion of the cover, a contingency provision of ₹10 crore will be provided collectively for all legislators. The new scheme is set to cover 335 sitting and 837 former legislators which sum up to 1,172 legislators.

What was the need to introduce the new scheme?

Earlier, the medical reimbursement scheme of the government covered the legislators. However, as revealed by one of the officials, it was detected that the legislators used duplicate bills in order to initiate claims. The new scheme therefore is expected to restrain such usage. In fact, the legislators will now be entitled to cashless facility in 4700 network hospitals. This scheme will help cut out-of-pocket expenses on medical treatments.

Prior to this scheme, an annual cover of up to ₹15 lakhs was suggested for each legislator. However, the proposal would have augmented an estimated burden of ₹4 crore for the state, hence the proposal was rejected.

For further updates, keep following our news thread.

(Source and Credits: Hindustan Times)

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SBI Life IPO: SBI to divest 80 million shares

Mariya Panwala — Tue, 11 Jul 2017 12:06:00 GMT

SBI Life IPO: SBI to divest 80 million shares

11-Jul-2017 11-Jul-2017'

Mariya Panwala

What’s the news?

The executive committee of SBI has come to a decision of divesting their stake from SBI Life Insurance, a subsidiary, and offer the same on initial public offering (IPO). The consensus has been made to offer 80 million shares to the public for sale. The thought behind this is to raise at least ₹7,000 crores.

The Flashback

Until March, the shares of SBI Life were held by different partners, namely - SBI, BNP Paribas Cardif, KKR and Co. Ltd. (KKR) and Temasek Holdings (A company funded by Singapore Government). The proportion of their shares was 70.1%, 26%, 1.95% and 1.95% respectively.

However, last week, SBI Life wrote to Insurance regulatory Development Authority of India (IRDAI) requesting their shares to be listed for public offering which now stands as approved by the latter.

Result?

Following the decision, SBI Life is set to become the second insurer to offer to sell the shares to the public after ICICI Prudential Life Insurance. Reportedly, SBI Life has hired Kotak Investment Bank, Citi, Axis Capital and BNP Paribas to help with managing the sales of their IPO. The IPO will be held as per the regulations and provisions in consultation with SEBI and IRDAI.

For further updates on SBI Life IPO, keep following our news thread.

(Source and Credits: Live Mint)

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IFFCO-Tokio News: Tokio Marine increases its stake in IFFCO-Tokio JV to 49%

Mariya Panwala — Sat, 08 Jul 2017 11:25:00 GMT

IFFCO-Tokio News: Tokio Marine increases its stake in IFFCO-Tokio JV to 49%

08-Jul-2017 08-Jul-2017'

Mariya Panwala

What’s the news?

Tokio Marine, a multinational insurance company headquartered in Tokyo, has increased its stake in its joint venture (JV) IFFCO-Tokio General Insurance Company Limited, from 26% to 49%.

The flashback

Earlier the joint venture comprised of three stakeholders, viz. IFFCO, Tokio Marine and Indian Potash Limited (IPL) with a stake of 72.64%, 26% and 1.36% respectively. In 2016, the Indian government permitted an overseas company to hold a maximum of 49% stake in JVs. Resultantly, many foreign partners like Nippon and Standard Life have increased their stakes.

In a recent update, Tokio Marine has now taken the opportunity and increased its share to 49% in IFFCO-Tokio JV that was founded in 2000. The increased stake has been reportedly bought by Tokio Marine for ₹2,530 crore.

The result?

Post this transaction, IFFCO’s stake will reduce to 51% whereas IPL will walk out of the joint venture.

How will the deal benefit the venture?

The deal will aid IFFCO to raise the necessary capital to help grow Indian agri-businesses. It will also facilitate IFFCO in providing better services to Indian farmers, says U S Awasthi, the Managing Director of IFFCO.

For further updates, keep yourself glued to our news thread.

(Source and Credits: Live Mint)

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Insurance News: Bajaj Allianz Resorts To Blockchain Tech To Fasten Claim Settlement

Mariya Panwala — Fri, 07 Jul 2017 11:13:00 GMT

Insurance News: Bajaj Allianz Resorts To Blockchain Tech To Fasten Claim Settlement

07-Jul-2017 07-Jul-2017'

Mariya Panwala

The insurance sector witnesses a new advancement as the Bajaj Allianz General Insurance resorts to blockchain technology to fasten its claim settlements for travel and motor divisions through 'Travel Ezee' & 'Motor On The Spot'.

Blockchain Technology, as defined by Ian Khan – a technology futurist, is a mechanism that ensures the highest degree of accountability. It is claimed that it completely eradicates the chances of missed transactions, and humanly or machine-committed errors.

To aid insurance sector, the technology brings together the policyholder and the insurer on a common platform for the transactions, thereby eliminating the need of a third party (for instance, bank). This automatically cuts down the time taken for a claim settlement to a significant level.

Sourabh Chatterjee, the Head-IT from Bajaj Allianz General Insurance shared with one of the leading news publishers that the blockchain technology will reduce the time taken for claim settlement to minutes which otherwise takes several days. For example, the ‘Motor On The Spot’ aka Motor OTS service that is launched to facilitate motor claims is expected to bring down the time taken for claim settlement from 5-7 days to 20 minutes for a claim as low as ₹20,000.

For further updates, keep yourself glued to our news thread.

(Source and Credits: The Hindu Business Line)

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Sahara Life News: ICICI Prudential Proposes Takeover

Mariya Panwala — Wed, 05 Jul 2017 11:01:00 GMT

Sahara Life News: ICICI Prudential Proposes Takeover

05-Jul-2017 05-Jul-2017'

Mariya Panwala

The long standing case of Sahara Life Insurance verses SEBI has a new update.

It was earlier reported that the Insurance Regulatory Development Authority of India (IRDAI) had taken a historic step in its 18-year journey by barring Sahara Life Insurance from selling new policies post 23^rd June, 2017. IRDAI also appointed its General Manager R. K. Sharma as the administrator to look after the company’s affairs.

Later on, IRDAI had put up a proposal before the giants of insurance sector in India viz. - Life Insurance Corporation of India, SBI Life Insurance Co. Ltd, HDFC Standard Life Insurance Co. Ltd, ICICI Prudential Life, Bajaj Allianz Life Insurance Co. Ltd, and Kotak Mahindra Old Mutual Life Insurance Co. Ltd- to acquire the business of Sahara Life Insurance.

Consequently, in a recent update, it is reported that ICICI Prudential has expressed its desire to acquire the business of Sahara Life Insurance. The company has agreed to take over Sahara Life’s total liability against its policyholders that stands at ₹ 900 crore, as revealed by a report.

For further update on the case, keep following our news thread.

[Source and Credits: Financial Chronicle (mydigitalfc.com)]

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