February 2019 Insurance E-Bulletin - ASSOCHAM - E-BULITTIN-Febua… · "Insurers will introduce...

Volume-25

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Insurance E-Bulletin

THE ASSOCIATED CHAMBER OF COMMERCE AND INDUSTRY OF INDIA ASSOCHAM Corporate Office: 5, Sardar Patel Marg, Chanakyapuri, Delhi-110 021

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February 2019

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02 - ASSOCHAM Insurance-Bulletin - Volume - 25

there has never been a greater digital LIFE INSURANCE drive to harness the power of data and POLICYHOLDERS TO GET analytics, to digitise the customer's DIGITAL DELIGHT IN 2019journey and to enable the life insurance The advent of a new year always comes seller to work smarter and more with promise, and 2019 has the potential efficiently. Moving way ahead of just B2C to be a very promising year for life or e-commerce, today the life insurance insurance in India. The world's fastest sector is weaving on digital looms to growing large economy with a integrate the online and the offline and burgeoning pool of customers, strong create a beautiful fabric of seamless macro-economic factors and a robust customer experience. From expanding financial ecosystem make the ideal distribution networks, identifying backdrop to take the life insurance individual customer needs, simplifying sector to the next level. The traditional documentation and underwriting Indian family has undergone a processes and aiding agent advisors significant evolution over the last few w i t h s o u n d a d v i c e b a s e d o n years. The expectations of young sophisticated analytics, AI and machine customers from service providers are learning, the industry is best poised now pushing companies across sectors to to revolutionise its processes through work smarter, deliver faster and engage digital interventions.better to not only be preferred but to be REACHING CUSTOMERSloved by this set.

On the retail front, life insurers are DIGITAL DRIVEinnovating to reach out to customers at The government's drive towards their fingertips and reduce time to issue digitalisation and a cashless economy a policy. I see a great scope going ahead has seen in the last few years a steady on taking these conversations going and movement from physical assets such as meaningfully engaging with customers property and gold, towards financial through the tenure of their policies, so as assets. Adding further impetus, is the to drive persistency ratios further heightened awareness around insurance upward. So how's this reset moment in general, thanks to government going to manifest itself for the industry? schemes such as Aayushman Bharat for Despite a steady expected growth of 12-health insurance, Pradhan Mantri Jiwan 15% CAGR growth for the sector over the Jyoti Bima Yojana (PMJJBY) for life last couple of years, we still see life insurance, Pradhan Mantri Suraksha insurance penetration standing only at Bima Yojana for accidental death and 2.72%, as against a global average of disability insurance and the Atal Pension 3.47%. What the industry will see going Scheme for retirement planning. This is ahead, is in my belief the holy trinity of moving the country towards a culture of life insurance: protection power, securing the future of one and one's consultative selling stars and digital family, which is the most fundamental delight. We continue to be one of the job of life insurance. As an industry,

Top Insurance News

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most underinsured countries and the insurance industry as it strives to add

“protection gap” as per some estimates more customers in a country that still

is at `489 trillion. The industry sum remains largely under-insured, after a

assured grew by 36% CAGR between year full of reforms and introduction of

2001-10, however, the same grew at easier-to-understand products. The list

only 22% CAGR between 2010-18. This of reforms undertaken in 2018 is long --

points to the enormous headroom to diseases such as HIV and mental illness

further protect the country, and I believe were brought under policy covers, long-

many insurers will be focusing on term third-party motor insurance

increasing their share of protection and became mandatory and the government

educating customers on the need to launched its ambitious scheme

protect one's family through life Ayushman Bharat that seeks to cover

insurance. The agent advisor has almost 50 crore people. It was also a year

globally been the support pillar to any of digitisation and launch of customer-

life insurer. In the coming months I friendly products as there was a rapid

would expect to see an Agent 2.0, growth in online channel, Canara HSBC

digitally enabled, more efficient and Oriental Bank of Commerce Life

smarter in approach. The role of the Insurance's MD and CEO Anuj Mathur

agent advisor will undergo a change said. The sectoral regulator Insurance

from merely being a seller of life Regulatory and Development Authority

insurance to being a financial portfolio of India (Irdai) proposed to encourage

manager, backed with the power of deep companies to develop new technologies,

data analytics and equipped with the asked insurers to make their products

tools to save time, costs and increase more attractive and customer friendly.

efficiency. Digital delight is what I "With increased use of digital mode...

believe will be the outcome of all the there was increased focus on point of

above. A frictionless journey for a sale products and simple to use channels

customer from prospecting to purchase to increase penetration of life insurance

to service and finally to claims products in sub-urban and rural areas,"

settlement is what will delight the Mathur said. Government's massive

customer. This will only be possible health insurance scheme Ayushman

when the all three elements of the trinity Bharat will go a long way to bring the

work in tandem and synergize to take the poorer segment of the society under

industry to the next level. policy cover, he added.

Mathur expects health insurance sector

to see more innovative and customised

products in coming years due to efforts

of the Irdai. HDFC Life's Executive INSURANCE INDUSTRY GOES Director Suresh Badami said private ON TECH DRIVE TO EXPAND sector has continued to gain market

COVERAGE share in last three years and industry

Technology is the new friend in town for should continue to see growth

https://www.financialexpress.com/money/life-

insurance-policyholders-to-get-digital-

delight-in-2019/1430908/

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momentum as the regulator is taking products will reach many more Indians

very positive steps towards increased and help them secure their and their

transparency and benefits to customers. family's future, he said. Ashish Mehrotra,

"Insurers will introduce simpler products MD & CEO at Max Bupa Health Insurance,

which will provide customers with the said some key trends to be watched in

maximum value for their hard-earned 2019 will be greater technology

money. The exposure draft on the new integration in health insurance products,

product regulations has been circulated with wearable playing a significant role.

with the member companies... The Integration of wearables in health

insurance industry at large has shared its insurance products will allow insurers to

comments with the regulator and curate tailor-made products as per a

hopefully, the recommendations would person's current health records, thereby

be incorporated in the notified curbing the need for pre-policy

regulations," he said. However, he said, checkups and charging premiums more

the protection gap is a serious concern appropriately as per an individual.

that is being addressed through various During the year, health insurance financial protection products designed policies were made more comprehensive for the changing lifestyles of Indian and easy to understand for consumers. consumers. According to a survey, life The industry hopes that the reform insurance penetration in India is less measures taken by Irdai may come into than 3 per cent as compared to other action within the next 12 months. The developing nations. "Insurers are double-digit growth of the Indian making continuous efforts to address insurance industry was aided by the challenge. The government has been enhanced penetration, increasingly taking concrete steps towards this informed and aware customers, efficient direction as well," Badami said. distribution channels and government

The private life insurance industry schemes, global insurance brokerage

witnessed a 20 per cent compounded firm Willis Towers Watson's India Head

annual growth rate (CAGR) during the Rohit Jain said. The regulatory and

year. "I expect the industry to continue to legislative dynamism across the

leverage the benefits from several spectrum of life, non-life and health

initiatives it started in 2018. We will see insurance is paving way for newer

companies invest more in product possibilities. There is a continuous

innovations using the sandboxing blurring of line between the digital and

platform, to offer more value-packed physical space, indicating the tectonic

products for customers," said Bajaj shift the industry will be witnessing in

Allianz Life MD and CEO Tarun Chugh the coming years, Jain said. "With a

said. There will be robust adoption of healthy capital flow, the insurance

technology-backed servicing initiatives markets continued to price the risk softly

for customers, sales force and agents and generated a bit of consolidation

alike. With the opening up of payment activities too," he added. Bajaj Allianz

banks, small finance banks and other General Insurance MD & CEO Tapan

similar partnerships, life insurance Singhel said 2018 was also a year of

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consolidation as many regulations were government plans to call fresh tenders

introduced by Irdai on motor insurance, quoting Rs 640 from insurance

health insurance, crop insurance which companies per family, a reduction from

were focused on customer centricity and Rs 690 per family in current tender. “We

simplification of products and processes will save Rs 100 crore annually by

for them reduction in premium cost,” as stated by

Dr Sudhakar Shinde, CEO of MJPJAY.

State officials said that if insurance

companies agree with the new rates, a

hybrid model would be used to run

PMJAY and MJPJAY. Maharashtra follows MAHARASHTRA SET TO the hybrid model, a combination of ENROL PRIVATE HOSPITALS insurance and trust scheme, to run the

IN AYUSHMAN BHARAT latest scheme, on the lines of Gujarat

and Chhattisgarh governments. While SCHEMEtreatment cost up to Rs 1.5 lakh is Three months after the launch of

covered under the insurance model, the Pradhan Mantri Jan Arogya Yojana

cost escalating beyond Rs 1.5 lakh is (PMJAY) or Ayushman Bharat scheme in

covered under the trust model. “If we get the state, the Maharashtra government

insurance premium at our rates, we will is now set to enrol private hospitals in

continue with the hybrid model. the cashless health scheme. As many as

Negotiation is on,” Shinde added. The 1,100 private hospitals, including 30-

Niti Aayog has fixed insurance premium bedded nursing homes, from across the

of Rs 1,032 per family under Ayushman state have been waitlisted under the

Bharat.Ayushman Bharat programme. The

programme already has 79 government

hospitals empanelled in the state, in

addition to the 500 hospitals enrolled

under its state health insurance scheme LIC'S MARKET SHARE FALLS — Mahatma Jyotiba Phule Jan Arogya

BELOW 70 PER CENTYojana (MJPJAY). Officials said a fresh list

Insurance Australia Group (IAG) is of hospitals wanting to enrol in the

considering selling a stake in SBI General Ayushman Bharat has been submitted to

Insurance, a joint venture with India's the state government. The scheme,

largest lender, two. IAG, which holds 26% launched in September 2018, covers 83

in the general insurer, has started lakh beneficiaries and provides cover for

preliminary talks to hire an investment 1,300 medical procedures with a cap of

bank to manage the sale process, Rs 5 lakh. Till now, over 2,500

requesting. IAG is likely to sell its stake in procedures have been conducted. With

multiple tranches. The Sydney-based the current tenders for MJPJAY about to

company might sell a part of its stake end for the existing state health

before a proposed initial share sale of insurance scheme in January, the

https://economictimes.indiatimes.com/industr

y/banking/finance/insure/insurance-industry-

g o e s - o n - t e c h - d r i v e - t o - e x p a n d -

coverage/printarticle/67319649.cms

https://indianexpress.com/article/india/mahar

ashtra-set-to-enroll-private-hospitals-in-

ayushman-bharat-scheme-5525941/

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the local general insurer, and a part in INSURANCE COMPANIES TO the initial public offering, adding that it ENSURE MANDATORY might sell more over a period of time. LINKING OF PUC WITH IAG's plan to sell a stake in the insurance VEHICLE INSURANCEjoint venture follows a 4% stake sale in

The Environment Pollution Control the insurance company by SBI. In

Authority (EPCA) stated that they will September, SBI sold the stake in SBI

work with insurance bodies to ensure General Insurance to Axis Asset

complete compliance of the Supreme Management Co. Ltd and Premji Invest

Court order of mandatory linking of for ?482 crore. The transaction valued

pollution under control (PUC) certificate SBI General Insurance at ?12,000 crore.

with issue of annual vehicle insurance. SBI's stake in the venture dropped to 70%

The insurance bodies stated that they following the sale, while IAG continued

will also start a pilot project in Delhi to own 26%. SBI General Insurance

region to identify the set of vehicles that started operations in 2010 and sells

do not come back for registration of the products ranging from motor, health,

PUC. “We will then share the details of travel and home insurance in the retail

such vehicles with the Transport space to aviation, fire, marine and

Department,” the companies added. The liability insurance in the commercial

EPCA also said it would direct the Delhi space. The insurance sector has seen a

government to “strongly advertise that flurry of activity in recent times. In

insurance is mandatory and so is PUC”. December, state-run lender Andhra

“What we can make sure that there is Bank said it had floated a request for

good compliance of the order in Delhi proposal to hire a valuer and an

NCR,” said Sunita Narain, EPCA member. investment banker to sell its stake in

“Let us work towards 100 per cent IndiaFirst Life Insurance Co. Ltd, the

insurance and 100 per cent PUC bank said in stock exchange filings.

compliance in NCR and see what are the Andhra Bank owns a 30% stake in

loopholes and let us see how the IndiaFirst Life, while Bank of Baroda

improvements can be made,” she said.holds 44% and private equity firm

In July, the Insurance Regulatory and Warburg Pincus owns 26%. Warburg had

Development Authority of India (IRDA) acquired the stake from Legal and

had said vehicles without a PUC General Group Plc for an undisclosed

certificate will not be insured. The IRDA, amount in June. Royal Sundaram General

in a notification, had directed all general Insurance Ltd sold a 40% stake to Ageas

insurance companies not to insure a Insurance NV of Belgium for ?1,520

vehicle unless it has a valid PUC crore in November.

certificate. Vehicle insurance is renewed

every year. The insurance regulator's

move follows an order of the Supreme

Court in this regard. In August 2017, the

apex court in M C Mehta vs Union of India EPCA TO WORK WITH

https://www.livemint.com/Companies/wmDkG

KCVmZuV0Z4TDjlJiL/IAG-weighs-SBI-General-

Insurance-stake-sale.html

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and others case had directed insurers become more informed and most

not to insure a vehicle unless it has a importantly, demanding. In order to

valid PUC certificate on the date of deliver whatever the market demands,

renewal of the insurance policy. It is the insurance industry also needs to

mandatory for every vehicle owner to implement emerging technological

have a valid PUC certificate to comply trends and redefine their ways of

with the prescribed emission norms. A operation.

vehicle without such certificate is liable Here's a quick look at some of the latest to be prosecuted under the Motor trends that are expected to engulf the Vehicles Act. Computerised facilities for insurance industry and help 'only' those checking pollution levels and issue of who adapt them to stay on top of the PUC certificate - to vehicles meeting competition.emission standards - are available at MACHINE LEARNINGmany petrol pumps/workshops. In the context of a rapidly-evolving

competitive market, insurers are

completely focusing on marketing and

issuing the policies more efficiently.

Most of the insurers have already TECH TRENDS THAT WILL

implemented technology to provide IMPACT INSURANCE high-quality multi-channel customer INDUSTRY IN 2019 service at highly optimized cost. The Technology-related changes are insurers have now even started happening globally at a significant pace exploring and investing in machine and almost every industry is striving to learning and automation for all their become 'smarter' by being more business operations start from informed about the outside world and marketing and underwriting of the more adaptive to the consumer-related insurance p roduc ts to c l a ims needs. When talking about insurance p r o c e s s i n g , s e t t l e m e n t a n d industry, we must be aware of the fact reimbursement. Though advanced that the life of human beings is technologies like automation and constantly surrounded by risks and machine learning were already present uncertainties, and insurance as a saviour in the insurance from the last few years, plays a great part in mitigating these it was only restricted to simple and risks. The competition in the insurance convenient processes like data entry, industry is as intense as any other compliance checks and standard industry and all thanks to the evolving customer communicat ions that markets and existing players that strive demanded least decision-making skills. to innovate each day. The continuous All thanks to the capabilities of innovations in the marketplace along intelligent systems, the insurers have with digital interactions across various now finally started to explore the many channels are transforming and more perspectives of automation like modernizing the insurance industry as au toma ted c l a ims i n spec t i on , well. The consumers these days have

https://www.livemint.com/Politics/I8P1v1uHAji

ZtwFBhk61sL/EPCA-to-work-with-insurance-

companies-to-ensure-mandatory-li.html

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verification and settlement. industry will change the way insurers

carry out their business operations. The BIG DATA ANALYTICSmany facets of AI, including Text There is nothing denying the fact that Analytics, Audio, Image and Video insurers in India are gifted with a Analysis, Robotic Process Automation, treasure trove of data. The inflow of data and Decision Management, are sure to starts with the very first step of targeting make substantial impact in the insurance and acquisition of customers, further sector. Many insurers have already builds with the policy and claims cycle, started using AI in evaluating the risks and concludes with the final settlement and identifying insurance offers that process. With the introduction of new rightly meet the needs of the customers. digital technologies in insurance sector Moreover, AI is also being combined with as well, the scope and format of core activities such as claims processing information has changed drastically. The to improve efficiency.data usually comes from new innovative BLOCKCHAIN TECHNOLOGYsources, including wearable fitness

devices that are connected to the IOT, Blockchain – Distributed Ledger

telematics and social media. Making use Technology, is one of the most powerful

of predictive modelling in motor technology trends that will revolutionize

insurance sector can play a great role in the insurance industry in the year 2019.

accurate assessment of the driver's Some of the insurers have already

driving behaviour. It can be used for started using Blockchain technology for

comparing the behavioural data of the client validation and identification of

drivers with that of thousands of other fraudulent activities like false claims and

drivers already present in the company's approvals. The transactions that are

database. While all of the data carried out using Blockchain platform

accumulated can be leveraged by are highly secure and remain traceable at

insurance providers to achieve key each point. The insurance sector has

objectives, it is also possible to develop begun to use Blockchain for client

innovative insights. validation and identification of

fraudulent activities, like false claims ARTIFICIAL INTELLIGENCEand approvals. The integrity of Artificial Intelligence or AI has surely Blockchain technology helps minimize become the buzzword in the world of counterfeiting, double booking, contract technology today as it continues to alterations and fraudulent claims. It also present businesses with endless brings about higher transparency and possibilities across various industries security in the overall insurance journey.and insurance is no exception. In the last INTERNET OF THINGSfew years, AI has eventually started

seeping into the various aspects of the The biggest trend that will significantly

insurance sector, adding value to the impact the insurance industry in the year

different business processes. The 2019 is Internet of Things, or IOT – all of

market experts believe that the different the world's connected devices.

applications of AI in the insurance Combining insurance with IOT is all

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about connecting the insurance sector 2018, the Insurance Regulatory and

with consumers and their risks. The key Development Authority of India (IRDAI)

advantage of IOT in insurance industry had said life insurance companies will be

will be the inflow of maximum data able to offer flexible policy tenures for

which will enable the insurers to more certain products. IRDAI also said

effectively determine rates and provide insurers can design term, credit life and

customized services while keeping the micro-insurance products that have a

assets of the consumers safe and range of policy tenures to choose from.

secured. Innovative health technologies IRDAI had constituted a committee for

and products like Wearables are giving reviewing the product regulations in the

insurers massive amounts of data that life insurance sector. Based on the report

can be used to price the premiums of and comments from stakeholders, the

policies more fairly and help customers regulator has brought out the draft

prevent any injury and disease. IOT even regulations. For non-linked insurance

helps motor insurance companies to products, the revival period has been

identify the best drivers and thus price extended to five years from the current

the premiums more profitably. two years. Here, non-linked policies to

Connected car and mobile technology acquire guaranteed surrender value after

can surely help in crafting next two years. In unit-linked insurance

generation of insurance products. products, after payment of premiums for

the first five completed policy years, the

policyholder may be given an option to

decrease the premium by a maximum of

50 percent. Once the premiums are N E W L I F E I N S U R A N C E reduced, they cannot be increased

PRODUCT REGULATIONS subsequently. In the pension product

category, IRDAI has given the option for FROM FY19partial withdrawal for those linked to the The new life insurance product

equity markets. Also, when it comes to regulations will be implemented from

buying an annuity at the end of a pension FY19 onwards. The rules that are still at a

product's policy term, the policyholder draft stage will be finalised in the IRDAI

has an option to choose from an open board meeting scheduled at the end of

market. Currently, they are limited to April 2019. Life insurers have already

buying an annuity product from the submitted their responses to the

same insurer.regulator and have mostly welcomed the

changes. "The regulations are in the

right direction. We are only hoping that

we get adequate time to refile old

products so that customers have the

choice and business is not impacted,"

said the head of a mid-sized private life

insurer. In the draft norms in October

https://www.financialexpress.com/money/insu

rance/ tech- t r ends- tha t-w i l l - impac t-

insurance-industry-in-2019/1444399/

https://www.moneycontrol.com/news/busines

s/economy/new-life-insurance-product-

regulations-from-fy19-3400051.html

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abolition of mandi tax and toll tax, and a BUDGET 2019: ANNOUNCE model tenancy act for curtailing ACCIDENTAL INSURANCE, litigations between landlords and CONCESSIONAL CREDIT FOR tenants. Further, it asked for conducting TRADERS, CAIT URGES PMa nationwide survey of retail trade to

Traders' body CAIT demanded an gather financial and social status of the

incentive package from Prime Minister sector so that proper policies and

Narendra Modi for traders such as an programme can be formulated. "We also

accidental insurance coverage, credit at request that direct lending by banks

concessional rates and rationalisation of under MUDRA scheme should be

GST slabs. In a letter to the prime disbanded and non-banking finance

minister, the Confederation of All India companies, micro finance institutions

Traders (CAIT) said: "We shall request and private moneylenders duly

you to either declare the package before registered should be roped in to lend

Budget or include the same in the money," it added. Moreover, the

forthcoming Budget." Their demands confederation suggested that all digital

include an accidental insurance of Rs 10 payments should be free from levy of

lakh for traders registered under the bank charges to encourage digital

goods and services tax (GST); subsidy for payment. "As of now, banks are charging

purchasing computers and allied goods; 1-2 per cent charges for digital payment

national policy for retail trading and e-transactions which discourages people

commerce; retail regulatory authority; to adopt digital payment system," it said,

and establishment of a trade promotion adding that tax benefits and other

council. "It is also urged that the traders incentives should also be given for

should be given loan by banks at a adoption and acceptance of digital

concessional rate of interest. So far, only payments by the traders and consumers.

5 per cent of the small businesses could

able to obtain loans and balance are

dependent upon private moneylenders,

relatives and other sources," CAIT said.

On GST, it suggested that tax slab of 18

per cent should be abolished and the 28

per cent slab should be restricted only to WOMEN BOUGHT 32% OF LIFE most luxurious items. "Commodities like INSURANCE POLICIES IN 2017-auto parts, cement should be taken out 18, SHOWS IRDAI DATAfrom 28 per cent tax slab and may be While data from the International Labour placed under 12 per cent slab. Items Organisation shows that the overall used as raw material and daily use items participation of women in the workforce of poor section should be placed under 5 has declined over the past decade, per cent tax slab," it added. The another set of data on life insurance con fede ra t i on a l so a sked fo r policies indicates that participation of simplification of GST, pension scheme women in the formal sector may actually for the traders registered under GST, be higher as of 2017-18.

https://economictimes.indiatimes.com/news/e

conomy/policy/budget-2019-announce-

accidental-insurance-concessional-credit-for-

t r a d e r s - c a i t - u r g e s - p m / a r t i c l e s h o w

/67656626.cms

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According to the latest annual report by of Srujan Financial Advisers LLP, agreed

the Insurance Regu la tory and that it is a common practice.

Development Authority of India (Irdai), The total number of individual life women bought 32% of the total insurance policies issued in 2017-18 individual life insurance policies sold in was 28.2 million, of which about 9 India in 2017-18. On the other hand, ILO million were bought by women and 19.1 data shows that participation of women million by men. The policies included in the Indian workforce declined to insurance products like term insurance, 27.21% in 2017 from the peak of 36.78% traditional plans as well as unit-linked in 2005. insurance plans or Ulips. It's not clear if

Most of the investment in life insurance this is an improvement over previous

happens through people who are years as this data is not regularly

employed in the formal sector and as the released.

participation of women is increasing

there, it is also getting reflected in the PROTECTION VERSUS number of policies that they are buying, INVESTMENTsaid R.M. Vishakha, managing director

Even though there is lack of clear data, and CEO, IndiaFirst Life Insurance Co.

according to Vishakha, more women tilt Ltd.

towards savings and investment Another reason why more women are products from the life insurance stable seen buying insurance is that often rather than term plans as compared to working men in the family buy men. “Unfortunately we do not have a investment-linked insurance policies in formal study, but you will find a lot of the name of non-working members, women not thinking that they contribute including women. Deepali Sen, founder financially. Also, it is rare to find

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instances where the woman earns more that women are buying life insurance

than the man and, therefore, there is policies, it makes sense for them to do

always a feeling that the income from the proper risk analysis and insure

man is more significant and needs to be themselves adequately instead of

protected. That makes women buy more looking at insurance from the lens of

savings and investment-oriented investment and tax saving only.

policies," she said.

Sen added that this trend does not come

as a surprise because there is no need for

a (term) insurance policy if someone

does not have dependants. “Otherwise, I ENROLMENT UNDER PMFBY

do not see a difference in approach CROP INSURANCE SCHEME towards life insurance from men or SEES STEEP DECLINEwomen," she said, adding that in case of In April 2016, Prime Minister Narendra both men and women she advises she

has to drive home the point that Modi launched PMFBY as a key scheme to

approaching life insurance as an help farmers cope with weather investment product is a losing

uncertainties. In a country where over proposition.

half of the unirrigated crop area is Financial planners suggest individuals

dependent on the vagaries of the four-having dependants on their income to

take a term insurance policy. These are month-long south-west monsoon,

plain-vanilla life insurance plans where PMFBY promised increased cover for a the premium paid goes completely

variety of risks at a premium of just 2% towards underwriting the risk of loss of

(of sum assured) for kharif and 1.5% for life of the policyholder and there is no

winter or rabi crops. It was decided that payout at maturity. These policies,

typically, cost less than other life the centre and states will equally share insurance products.

the cost of actuarial premium payable to However, some planners also highlight

insurance companies.the importance of even home-makers

taking term plans as their household FALLING ENROLMENT

management actually translates into Data from the agriculture ministry shows

savings. Some insurers, too, give a term that enrolment (during the rain-fed

insurance to women who are not kharif season) rose from 30.9 million

formally working or are home-makers. farmers in 2015 to 40.3 million in 2016,

This is typically available only for those an impressive 30% jump. But delayed

women, whose husbands already have a assessment of crop loss and settlement

term insurance policy. The sum assured of claims which took six to nine months

given in such cases is 50% of the sum to complete led to farmers losing

assured of the husband. interest; enrolment fell to 34.8 million in

India has a huge insurance gap, but now 2017 and further plunged to 33.3 million

https://www.livemint.com/money/personal-

finance/women-bought-32-of-life-insurance-

policies-in-2017-18-shows-irdai-data-

1548171444179.html

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in kharif 2018. Part of the decline was to a trust deficit among farmers. To

also because fewer farmers accessed begin with, insurance companies are

fresh credit (due to a spate of farm loan selling the product piggy backing on the

waivers since mid-2017) since banking infrastructure. For farmers

enrolment under crop insurance scheme availing crop loans, banks deduct the

is mandatory for farmers availing crop premium amount from the loan without

loans. even issuing a receipt. Farmers are never

asked if they want insurance, and the However, despite the drop in enrolment, product has became an easy way for state funding for PMFBY has increased banks to insure their loans.significantly leading to complaints by

farmer unions that the crop insurance EXPAND

scheme is benefiting insurance Further, in the event of any crop damage, companies more than farmers. Available farmers are at a loss as to whom to reach numbers show that premium collected out to since most companies have not by insurance companies rose from a set up field offices to attend to customer meagre ? 5,614 crore in 2015-16 to ? complaints. A major challenge is 22,362 crore in 2016-17 and further to ? conducting faster and accurate 25,046 crore in 2017-18 (including rabi assessment of crop loss which is the and kharif crop seasons). responsibility of state governments.

Assessment of crop losses are often

delayed due to a paucity of local staff.RUNNING AGROUNDThere's more. According to an Several studies and field investigations assessment released by the Delhi-based point to a host of reasons which has led

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think tank Indian Council for Research MULTIPLE GAPS IN on International Economic Relations in IMPLEMENTING FLAGSHIP February 2018, a reason why insurance CROP INSURANCE SCHEMEcompanies charge high actuarial Instead of appreciation, the Modi premiums is that cut-off dates for government's flagship schemes for crop enrolment are frequently extended by insurance, the Pradhan Mantri Fasal Bima states, often beyond the forecast and Yojana (PMFBY) and Restructured onset dates of the annual monsoon. “The Weather Based Crop Insurance Scheme litmus test of any crop insurance have attracted criticism even though the programme is quick assessment of crop PMFBY is substantially superior to crop damages and payment of claims into insurance schemes under previous farmers' accounts directly, and from that governments. There are five major point of view, the first year of stakeholders in crop insurance. They are implementation of PMFBY (2016-17) has farmers, banks, central and state not been very successful," the study governments, and insurance and observed. reinsurance companies. Farmers would “Instead of imposing a standard crop like prompt payment of claims if their insurance scheme on states, it will be crops are hit by a calamity. They would wiser if the centre allows states' the also like to know the name of the freedom to design their own schemes insurance company and the premium while contributing half of the costs," said paid by them.Ajay Vir Jakhar, chairman of Bharat At the ground level, the scheme is Kishak Samaj, a farm policy advocacy implemented by banks that have to body. “Each state has its unique set of deduct the premium and remit it to problems due to cropping, climate and insurance companies. Banks also have to access to irrigation. So they may choose provide detailed data of insured farmers a compensation scheme over crop to insurance companies.insurance."

The central government makes the rules Since October 2018, at least five for the scheme while the state states—Maharashtra, Karnataka, governments do all the important work Gujarat, Odisha and Rajasthan—have o f t e n d e r s a n d c r o p - c u t t i n g declared a drought and sought a central experiments (CCE), etc. They would like assistance of over to ? 15,500 crore. the actuarial premium to be low as they This is testimony to the ground reality have to pay premium subsidy in excess that the Prime Minister's flagship crop of the farmers' share, which is just 2% for insurance scheme has failed to provide kharif crops, 1.5% for rabi crops and 5% farmers with timely and adequate cover for annual commercial and horticulture against climate risks. crops. The insurance companies would https://www.livemint.com/Politics/nF2FiK4pHIj like to receive the insurance premium in Czud5oMuphI/Enrolment-under-PMFBY-crop- time and the insurance claims to be low. insurance-scheme-sees-steep-decli.html

They would also like CCEs to be

transparent.

I N D I A


The reinsurance companies provide known, especially in south Indian states

underwriting and financial support (monsoon hits Kerala on 1 June). In

beyond the capacity of the insurance 2017-18, out of the total premium of ?

companies. They decide the financial 25,173 crore, farmers paid ? 4,317

terms and conditions which the crore. Another freebie in the form of zero

insurance companies have to follow. In premiums from farmers may leave even

2017-18, about 33% of the total smaller amount in state budgets for

p remium went to re insurance investments in agriculture. At the end of

companies. They would like the the day, more investment is needed in

governments to follow the guidelines agriculture and food processing to make

issued by the government itself. In farming viable

2017-18, the central government

launched an insurance portal which

sought to capture information of each

farmer. The portal captures Aadhaar

numbers of the farmers so bogus cases REGULATORY CHANGES IN of insurance can be eliminated. INDIA TO BE CREDIT However, the farmers are still not being

POSITIVE FOR INSURANCE informed about the premium deducted

and the insurance cover provided to SECTOR: MOODY'Sthem. The set of new regulations introduced by

the Insurance Regu la tory and The objective of getting lower actuarial

Development Authority of India (IRDAI) is rates in tenders, however, depends on a

likely to be credit positive for the sector, number of factors, including policies of

according to a Moody's report. “Indian the government. In September 2018, the

insurers will also be able to get more government had issued new operational

technical expertise from global guidelines which give thrust to enrolling

reinsurers that have set up branch more non-loanee farmers and to settle

presence in the country,” he added.the claims within 21 days. While they

seek to bind the insurance companies, a

s imi lar d ispensat ion for s tate REINSURANCE governments is missing and there are no LIBERALISATIONpenalties for wrong or delayed CCEs. IRDAI rev ised the re insurance

In fact, there are several conditions in the regulations in December 2018. India's

new guidelines which are likely to result General Insurance Corporation of India

in higher actuarial rates. For example, (GIC Re) gets the first right of refusal in

the states can now provide add-on the order of preference of reinsurance

coverage for crop loss due to attack by business. “While GIC Re will retain first

wild animals. This additional risk alone right of refusal, it will lose business if it is

will invite higher premium. The cut-off unable to match lower rates offered by

date for taking insurance in most states foreign reinsurers. This will improve

is 31 July for the kharif season. By this Indian insurers' access to reinsurance,”

time, the pattern of monsoon is well he explained. Currently, 10 reinsurers

https://www.livemint.com/Politics/pmEoE04th

R r n e w v M B p Z 4 9 L / M u l t i p l e - g a p s - i n -

implementing-flagship-crop-insurance-

scheme.html

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(including specialist insurance market companies with an opportunity to cross-

Lloyd's) have a branch presence in India. sell products among customers. This is

The others include Swiss Re, Munich Re, credit positive for the Indian insurers.

Hannover Re, SCOR Re, Allianz Global However, most Indian states have

Corporate & Specialty SE among others. chosen to run the scheme as a trust

model, which will limit the full growth

potential for insurers, the Moody's RISK-BASED CAPITAL report stated.FRAMEWORK

India currently follows Solvency I or a

factor-based solvency capital model.

This means a set factor (3 or 4 percent) is

multiplied with the mathematical

reserves to arrive at the minimum capital POSTAL DEPARTMENT TO

to be held by insurance companies. The SPIN OFF LIFE INSURANCE

risk-based capital framework to be BUSINESS INTO SEPARATE implemented from April 2021 will be UNITbeneficial for the mark and help improve The postal department plans to spin off r isk management. I t could be the postal life insurance and rural postal challenging for weaker insurers and also life insurance operations into a separate trigger merger & acquisition activities. In business unit (SBU) for which a Cabinet the financial sector assessment note has been circulated, as stated by programme of 2017, the International Communications Minister Manoj Sinha . Monetary Fund and World Bank "For postal life insurance and rural postal recommended that IRDAI move towards life insurance we have moved a Cabinet an RBC supervisory regime.note. In the first phase it will involve

creation of an SBU and in second phase a AYUSHMAN BHARAT TO full fledged insurance company," he BOOST PREMIUMS, HELP added. The minister hoped that the

CROSS-SELLCabinet approval would be received in

Launched in September 2018, the next fortnight or so.

Ayushman Bharat-National Health Sinha further added that IPPB has rolled

Protection Mission is one of the world's out 1.26 lakh access points over the last

largest government-sponsored health five months and in the next week or 10

insurance scheme. Under this initiative, days the number is expected to rise to

about 100 million families (500 million 1.36 lakh. Nearly 800 access points are

people) will get access to Rs 5 lakh health being opened by IPPB everyday and the

insurance completely free of cost. This payments bank has over 30 lakh

will include families from lower income customers availing banking services.

groups as per the socio-economic caste Twenty-one lakh transactions have been

census (SECC) 2011 data. This will not performed valued at over ?800 crore.

only boost insurance penetration in the Over 1 lakh post office savings bank

Indian market but also provide


s/economy/regulatory-changes-in-india-to-

be-credit-positive-for-insurance-sector-

moodys-3435561.html

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customers are availing inter-operable interest-free farm loans and premium-

banking service by linking their post free crop insurance ahead of its interim office savings account to IPPB account.

Budget to be tabled on February 1. The Further the IPPB mobile banking

government has planned to waive the application has witnessed over 8 lakh interest on farm loans and the premium downloads. At present, the postal

department offers one of the oldest life on crop insurance with the burden to be insurance schemes — Postal Life shared equally between the Centre and Insurance (PLI), which was introduced in

the states. The government, which may 1884. Since March 1995, Rural Postal

announce the package either in the form Life Insurance (RPLI) has been providing

insurance cover to people residing in of a Cabinet decision or in its interim

rural areas, especially weaker sections Budget, is seriously trying to address the and women living in rural areas.

farm distress which it feels was the Finance Minister Piyush Goyal stated that

reason behind the BJP getting defeated in the IPPB would help enhance customer

recent state elections.Minister without literacy about finance and financial

world by leveraging on the connect portfolio Arun Jaitley, who was handling

between the postman and a customer. Finance ministry before going to the US "The simple and smart methodology of

for medical treatment, had clearly stated providing delivery to customers, the way

that the interim Budget may go beyond they have been able to use databases, the traditional vote on account as the way UPI is being modified to be

accessible for all the people without any tackling agricultural challenges "can't need of smart phone, without afford to wait".remembering the account number, will

The government is also considering cash truly revolutionise banking. India is

handout to farmers through Direct leading the world in showcasing easy Benefit Transfer (DBT) by subsuming the and accessible banking. "I suspect no

other part of the world has focussed various subsidies given to the farmers on much on providing this kind of easy and seeds, fertilizers, farm equipment, simple banking” Goyal added

various government schemes and

power. Minimum support price (MSP) has

failed to benefit most farmers as many

find it difficult to get the MSP price for

their small quantity. The Centre is also FARMERS MAY GET INTEREST-considering a scheme similar to in FREE LOANS, PREMIUM-FREE

INSURANCE Telangana, Odisha and Jharkhand.

The Modi government has worked out a Rhythu Bandhu scheme in Telangana,

relief package for farmers including Mukhyamantri Krishi Ashirvaad Yojna in

https://www.livemint.com/insurance/news/pos

tal-department-to-spin-off-life-insurance-

business-into-separate-unit-

1548859589715.html

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Jharkhand and Krushak Assistance for are required. The entire issue has to

Livelihood and Income Augmentation change from consumer bias to producer

(Kalia) in Odisha offer a lumpsum bias now. It can be done in the medium

amount to small and marginal farmers term, in a period of 2 to 3 years," Gulati

for farming. added.

“If the government combines all the He suggested removing the Essential

subsidies and gives a top-up on that, Commodities Act and inviting private

then all the best. Fertilizer subsidy alone sector that would hold the stocks and

is for?70,000 crore. They can give the create the value chain. "The government

money directly into the farmers' gives ?1,69,000 crore of food subsidy to

accounts," as stated by agriculture consumers each year. You give wheat at

economist Ashok Gulati. The Centre ?2 a kg which costs ?25 a kg and give rice

gives subsidy on fertilizer, crop at ?3 which costs ?33. And, you are

insurance and some credit subvention doling it out to 67% population," he

scheme. Gulati added that the Centre added. Instead, the government should

can make the interest rate zero. The limit the subsidised food grains to 40%

farmers have been facing the brunt of of the population and save ?40,000

falling crop prices which Jaitley recently crore to ?50,000 crore which then can be

said was due to increasing productivity given to the farmers.

in the farm sector. He said the sector had

entered a "surplus era", management of

which has become a challenge.

Being an election year, the government is UNION BUDGET 2019:

far more concerned about the distress as HEALTH INSURANCE

it directly impacts about half the SECTOR'S EXPECTATIONS

country's population that is engaged in FROM INTERIM BUDGET

farming and 87% of which are small and While the Indian economy is showing

marginal farmers owning up to 5 acres of tremendous growth potential, thanks to

the government's modern and inclusive land. While the government may be outlook, it still struggles with a large

interested in reaping quick political population who do not have adequate

dividends, experts feel the main cause of access to healthcare. Even among

farm distress is due to consumer bias emerging markets, India is one of the

least insured countries with only 20% of that the government has followed over

people having any kind of health the decades. To solve the main cause of insurance. With the Interim Budget

distress, agricultural marketing reforms round the corner, we are of the view that

https://www.livemint.com/budget/expectation

s/farmers-may-get-interest-free-loans-

premium-free-insurance-

1548764098831.html

I N D I A


the government should make some diseases can be treated under OPD.

significant changes in the health Therefore, the government should bring

insurance segment to realize India's down GST rate on products providing

ambition of 'healthcare for all'. outpatient coverage to 5% and make it

convenient for people to seek medical Here's our list of expectations from the treatment.budget:

LOWER GST RATE TO 12% INCREASE INCOME TAX RELIEF LIMIT UNDER SECTION FROM 18% ON HEALTH 80DINSURANCE PREMIUMRaising the tax exemption limit Currently, GST (goods & services tax) has substantially will motivate individuals to been structured in a way that essential increase the insurance coverage for items have been placed in the lower GST themselves and their families. In a bracket, whereas, high GST rates have current scenario, an individual can save been levied on luxury items. While there tax up to Rs 1 lakh under Section 80D by is no GST on fruits, vegetables, bread, buying health insurance for self and etc., things like cheese, business class family. However, it is essential to revise air-tickets, spectacles, etc. come under the tax relief limit at par with the medical the 12% GST slab. Similarly, health inflation.insurance falls under the 18% GST slab.

With the constant rise in medical GST INPUT CREDIT SHOULD

inflation and the instances of both BE ALLOWED ON CORPORATE communicable and non-communicable HEALTH INSURANCE ailments, like cancer, heart issues,

dengue, malaria, etc, it is very important POLICIESfor us to provide access to right Factors like long working hours,

healthcare to people. Here, health stressful working schedules, unhealthy

insurance can play a pivotal role. eating habits, are taking a toll on the

Therefore, the government should lower health of the Indian workforce. For any

GST rates on health insurance policies company, employees are the real asset,

from 18% to 12% to make it affordable for and therefore, it is indispensable to

the common man. ensu re the i r we l l -be ing . The

government should allow GST input

credit to those companies who are MAKE OPD TREATMENT offering group health insurance to their MORE AFFORDABLEemployees. It will encourage all Outpatient department (OPD) expenses employers to take health insurance for account for nearly 62%2 of all healthcare their employees and provide them with costs in India. Currently, 18% GST rate is social /financial security. Also, applicable on products providing employers/employees should be given a outpatient coverage, which increases the choice between group health insurance treatment cost. With the advent of and ESI.medical technology, a large number of

I N D I A


gove rnmen t s cheme tha t has COLLABORATE AND EDUCATEsuccessfully brought millions of Indians Unless we are able to control ill-health

under the ambit of health insurance. and the ensuing poverty of people

While the government has achieved a caused by the huge costs of out-of-

huge milestone by launching the world's pocket medical treatments, we can't

largest health insurance scheme, still really achieve economic growth. The

there is a long way to go. To make India government must join the insurance

health confident, the government should industry in educating all Indians. Big

unveil more such health insurance national level campaigns and events

schemes and expand the insurance should be held by government

coverage.associations to make people understand

the value of health insurance and

preventive care. The focus should be on

monetary benefits to correct the existing

mindset where it's seen as a waste of MERGER DELAYS IMPACT money. The government should

BUSINESS DECISIONS AT empower IRDAI to create insurance

awareness and increase penetration. GOVERNMENT INSURANCE FIRMS

INTRODUCE TAX EXEMPTION With the merger exercise of three public

ON TRAVEL INSURANCE sector general insurance companies—

Travelling has become the new craze National Insurance, United India

among Indians. As per a recent survey, Insuranceand Oriental Insurancegoing

38% of Indians prefer to spend their slow, vacancies are piling up. According

money on travel instead of spending it to rough estimates, in the officers grade

on shopping, food and other daily alone close to 600-900 posts remain

activities. Also, 25 million Indians vacant over the last one year. At the

traveled overseas in 2017. Despite clerical and subordinate level, the staff

meticulous planning, a trip can go awry shortage is around 12000, say sources in

and can turn out to be a financial the companies.

disaster. Whether it's the accident or a The impact is already telling about the sudden health issue, there are various financial performance of the companies. factors which can spoil a trip. In the Also, at least two companies, National absence of adequate insurance Insurance and United India Insurance, coverage, it can turn out to be a significantly lost their market share. nightmare. Therefore, it is essential to While National lost the market share give tax concessions to encourage from 10.78 per cent in December 2017 travelers to buy travel insurance cover. to 8.63 per cent in December 2018,

United India Insurancelost it from 11.02

LAUNCH SCHEMES AKIN TO per cent to 9.27 per cent over the time

f r ame . The th ree i n su rance AYUSHMAN BHARATcompanieshave posted high losses in Q2 Ayushman Bharat is a fantastic

https://www.financialexpress.com/budget/uni

on-budget-2019-health-insurance-sectors-

expectations-from-interim-budget/1459229/

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of FY19, as their premium growth came Ministry advised the companies to put

down and provisions rose. Multiple the new staffing plan on hold till the

reasons accounted for the losses, merger exercise was completed,

including manpower crunch and lack of according to a top official of a public

clarity of merger. sector general insurance firm. Notably,

in the next two to three years, about 25 “Lack of clarity over merger was a reason per cent of work force, especially in the that the premium came down. Also, the clerical level is expected to retire. Each shortage of manpower was a reason that year, in general, each public sector the business suffered. Further, the general insurance firm recruits about companies had to make huge provisions 200-300 new staffs at the officers' level. over third party motor losses,” as stated The recruitment at clerical and by senior official at the public sector subordinate grades are on hold for the general insurance sector. Last year the last four to five years due to cost-cutting government made amendment in the measures. According to K Govindan, motor vehicle act, 1998, which General Secretary, General Insurance stipulated almost ten-fold increase in Employees All India Association, each of the minimum compensation for injury or the state-owned general insurance death due to road accidents. According companiesneed to recruit at least 3000 to a senior official at a private sector clerical and subordinate staffs. Hence, at general insurance firm, while higher the clerical level the total staff shortage provisioning norms apply both private stands at around 12000.and public sector firms, the private

sector firms have been more prudent in In 2007-08, when the total underwritten

selecting the category mix. For example, premium of the four public sector

they remained cautious in exposure to general insurance companies was

riskier insurances like commercial around Rs 16831 crore, staff strength in

vehicle insurance. For United India g r a d e 3 ( c l e r i c a l ) a n d g r a d e

Insurance, loss (before tax, as after tax 4(subordinate) was around 43654,

figures not available) in Q2 of FY19 was according to data from General

Rs 868 crore (against a loss of Rs 36 Insurance Employees Al l India

crore before tax in the corresponding Association. According to Govindan, in

period). For National Insurance the loss 2017-18, while the total underwritten

was Rs 707 crore in Q2 of FY (against a premium rose to Rs 67920 crore, the

profit of Rs 90 crore in Q2 of FY18). For staff strength in the two categories

Oriental India Insurance, the loss was Rs reduced to nearly 33386. In 2018, ahead

240 crore in Q2 of FY 19(against a profit of the government announcing its plans

of Rs 200 crore in the same period in to merge the three public sector general

FY18). insurance companies, Nat ional

Insurance had planned to recruit about While the government has not put any 600 people at the clerical levels. official freeze on recruitment, since However, the recruitment plan was put February 2018, there has been no fresh on hold due to the merger plan.recruitment as the Union Finance

I N D I A


As on 31st March 2016, the total staff especially in the general insurance

segment, he said. The share of insurance strength of the four general insurance premiums in India's gross domestic companies was about 64130, with product (called insurance penetration) United India Insuranceat 16345, saw a marginal increase to 3.69 percent Oriental Insuranceat 13923, National in FY18 from 3.49 percent a year ago. Insurance at 15079 and New India According to the Swiss Re sigma report, Assurance at 18783, according to data insurance density or premium per person

available with the Union finance stood at $73 for FY18 versus $59.7 in the

ministry. The fate of the merger of the previous year. Non-life penetration was

three general insurance companies also at 0.93 percent in FY18 compared to 0.77

in fire, as it would depend upon the percent a year ago.

policy stance of the government elected Talking about the IL&FS matter, IRDAI

in 2019 general elections, said a senior Chairman Khuntia added that insurance

official of public sector general companies that have an exposure to

insurance firm. In February 2018 Budget, IL&FS and group companies will be the government announced its plan to required to make provisions if it becomes merge three public sector general a non-performing asset (NPA) and that it insurance firms—United India Insurance, cannot be written off. The first signs of National Insurance and United India trouble in the IL&FS group emerged in Insurance. June 2018 when it defaulted on inter-

corporate deposits and commercial

papers (borrowings) worth about Rs 450

crore. Over the next three months, rating

agencies also downgraded its long term IRDAI IN TALKS WITH GOVT ratings. Among the group companies, its

TO TRIM GST ON ESSENTIAL financial services arm IL&FS Financial

Services also defaulted on interest INSURANCE PRODUCTS : payment on commercial papers on SUBHASH KHUNTIAseveral occasions. Now the board has

Insurance Regulatory and Development been reconstituted by National Company

Authority of India (IRDAI) is in talks with Law Tribunal with government nominees.

the government to reduce the goods and

services tax (GST) on essential insurance

items. IRDAI Chairman Subhash Chandra

Khuntia stated that these could include

property insurance in vulnerable areas.

IBAI is Insurance Brokers Association of PNB PLANS TO DILUTE MINOR India. The GST Council has reduced tax STAKE IN LIFE INSURANCE JVrates for third-party motor insurance of State-run Punjab National Bank will be commercial vehicles to 12 percent from diluting a minor stake in its life insurance 18 percent. Khuntia said they have

joint venture PNB Metlife and own over sought a reduction for other categories

for insurance products as well. There is a 26 percent of the venture. "In the DRHP

scope to improve insurance penetration, (draft red herring prospectus), they (PNB)

https://www.business-standard.com/article

/economy-policy/merger-delays-impact-

business-decisions-at-government-insurance-

firms-119013100918_1.html


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have chosen only to dilute a small new logo and appointed badminton

percentage, they want to hold the player P V Sindhu as its brand

substantial holding at more than 26 ambassador.

percent. So, therefore that signals you

their intention," as stated by company's

managing director and chief executive

Ashish Srivastava. The resolve to keep MAHARASHTRA INSURANCE the holding at 26 percent makes the SCHEME SAVES RS 200 CROREintention clear, he said, citing a The state government's free health statement from PNB's managing director insurance scheme for economically which talked of the company being an backward citizens has managed to save a asset with a long-term value.whopping Rs 112 crore in annual “Metlife's stake in the venture currently premium to be paid to a nationalised stands at 32 percent. Both our insurance company this year. The promoters believe in this business and Mahatma Jyotiba Phule Jan Arogya know the India story and are solidly Yojana (MJPJAY) allows families-or over behind us," he added. On the IPO plans, 20 lakh beneficiaries-with an annual he Further added that the issue will have income of less than Rs 1 lakh per annum to come before November 2 as that is the to avail free surgeries of up to Rs 1.5 lakh deadline by which it has to get it done. in any of 492 empanelled hospitals However, the volatilities in the market across the state. The state government have resulted in the wait and watch, insured every eligible family for Rs 690 add ing the company and the last year, but after months of shareholders continue to be in touch negotiations with the insurance with the arrangers for the issue. The company, it has paid only Rs 640 per company has a minor exposure in debt family this year. "We got the new to the financially crippled IL&FS and was agreement" as stated by Dr Sudhakar lucky to have exited at the right time Shinde who heads the MJPJAY. A few through maturing of debt. Srivastava months back, the yojana had managed credited its parent Metlife for helping to get Rs 80 crore back from the insurer avoid any mishaps in investments.(National Insurance Company) for failing The company is growing at 12 percent as to carry out IEC activities as promised. against the industry growth of 8 percent, The Rs 200 crore saved through he said, adding that the margins also premium payment and settlement could stand at 17 percent at present, which be used to develop public health should display more growth going infrastructure, Dr Shinde added. forward. Over 15 percent of the new

business premium is in protection,

which is higher than the industry

average, adding it continues to expect a

"good trajectory" on this front going

ahead. The company came out with a


s/pnb-plans-to-dilute-minor-stake-in-life-

insurance-jv-3465941.html

https://timesofindia.indiatimes.com/city/mum

bai/maharashtra-insurance-scheme-saves-rs-

200-crore/articleshow/67782555.cms

I N D I A

ASSOCHAM'S NATIONAL COUNCIL FOR INSURANCE

Chairman

ASSOCHAM's National Council for Insurance

Shri G. SrinivasanFormer CMD, New India Assurance Co Ltd

14th Social Banking Excellence Awards-cum- Banking Summit 2018

26th February 2019

Hotel Four Seasons, Mumbai

Insolvency and Bankruptcy Code Council Meeting

March 2019 New Delhi

ASSOCHAM Banking E-Bulletin 10th March 2019 Vol.- 46

ASSOCHAM Insurance E-Bulletin 10th March 2019 Vol.- 26

ASSOCHAM NBFCs E - Bulletin 10th April 2019 Vol. - 3

For Further Suggestions, Kindly Contact:

Sagar Jankar

M: 7042715794

E: [email protected]

IRDAI CIRCULARS

Date Ref. No Title Short Description

29-01-2019 IRDAI/SDD/ClR/MISC/020/01/2019

To All Life and General Insurers (Including Standalone Health Insurers)

Allowing Aadhaar Card as one of the acceptable documents for KYC

01-01-2019 IRDAI/BRK/ORD/MISC/210/12/2018

To All Insurers & Insurance Intermediaries

Clarification regarding electronic form of written mandate

THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIAASSOCHAM Corporate Office: 5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021

Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008/09 | E-mail: [email protected] | Website: www.assocham.org

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