Oriental Insurance to launch medical insurance for senior citizens

Senior citizens can now look forward to check out medical insurance policy scheme from Oriental Insurance. The insurance company is to soon launch the health insurance product designed for the age group of 60 to 85, and is expected to cover a wide range of specific ailments.

M Ramadoss, chariman and managing director of Oriental Insurance chairman and managing director M Ramadoss said that the company has approached insurance regulator IRDA for approval, while speaking to the media on the sidelines of an insurance seminar organised by the Indian Merchants’ Chamber in Mumbai on Friday.

Catering specifically for the demographic group of senior citizens, health insurance product `Varishta Bima scheme’ is also available from National Insurance, which was launched last year.

Oriental Insurance proposes to include some pre-existing ailments after two to three years in its scheme, according to Mr Ramadoss. One could be insured up to Rs 2 lakh with a flat premium across all age groups, with no geographic restrictions. But the exact details on premium were not available.

Mr Ramadoss said that though the industry has made a smooth transition to the detariffing regime, revenue growth may be impacted as premiums for certain segments have been hit.Premium income on medical insurance has been impacted because of elimination of cross subsidies while tariff on fire and motor insurance has also been impacted. Oriental has lost revenues to the tune of Rs 70 crore owing to the discontinuation of some group mediclaim insurance policies.

Detariffing is expected to slowdown the revenue growth of many insurance companies. Speaking on the issue, ICICI Lombard General Insurance MD; CEO Sandeep Bakshi said there has to be a trade-off between topline growth and profitability and between market share and the profit and loss account in a detariffed scenario.

HSBC launches SIP Plus, with Free Critical Illness Cover

New Product Development: HSBC Investments has launched SIP Plus, with Free Critical Illness cover. The cover is offered in association and tie-up with ICICI Lombard, and would be effective from Oct 1, 2007.

Investors investing with HSBC investments under SIP schemes could now benefit with the insurance cover at no additional cost.

A Systematic Investment Plan (SIP) is an option which allows a investor to invest fixed amounts of money at regular monthly intervals in a mutual fund Scheme / other financial products for a continuous pre-defined period.

A SIP plan can be activated by using an auto debit facility where a fixed amount is debited from your bank account on a monthly basis or by giving post-dated cheques for the duration of the SIP.

HSBC Mutual Fund offers HSBC SIP Plus in the following schemes (open-ended schemes)

• HSBC Equity Fund
• HSBC India Opportunities Fund
• HSBC Midcap Equity Fund
• HSBC Advantage India Fund
• HSBC Tax Saver Equity Fund
• HSBC Dynamic Fund

Free Critical Illness Cover: The Cover will insure you against six illnesses (on diagnosis) or in case of accidental death or accidental permanent total disability, the sum insured is paid.
The scope of the cover is as follows:

• Critical Illnesses
  
  • Cancer
  • End stage renal failure
  • Major organ transplant
  • Stroke
  • Heart valve replacement
  • Bypass surgery
• Accidental death
• Accidental total permanent disability

Exclusions for critical cover

• Any of the critical illness diagnosed within the first 3 months of the inception of the policy
• Survival period of one month post initial diagnosis for the critical illness cover to be valid
• Critical Illness
  • Pre-existing illness
• Accidental death due to
  • Suicide or drinking and driving
  • Mental disorder and psychosomatic dysfunction
• Accidental permanent total disability
  • Any injury, sickness or disease for which medical care,treatment or advice was recommended by or received from a
    doctor or from which the Insured person suffered or which was present before the commencement of the Period of Insurance

Eligibility and Restrictions

• Maximum sum insured / cover is Rs 10,00,000 per person,irrespective of multiple SIPs
• Age limit is 20 years to 50 years of age completed
• Not available to Non Resident Indians
• The Insurance tenure = SIP tenure. The insurance tenure is available in multiples of one year and for a maximum of 5 years
• Applicable only for a minimum monthly SIP of Rs 2,000 and minimum SIP tenure of 36 months.

Claim Procedures: Since the insurance cover is provided with a tie-up from ICICI Lombard, following are the details for claim procedure.

• Expiry of the cover
  
  • The policy expires on occurrence of any of the following:
    
    • Completion of the mandated HSBC SIP Plus tenure
    • Stoppage of SIP midway
    • Default of SIP instalments – 2 subsequent SIPs or 4 defaults totally at different times
    • Payment of personal accident or disability or critical illness claims
  • In case of fraud, misrepresentation, etc.
• Claims Process
  
  • Investor/Investor’s nominee to intimate ICICI Lombard call centre in case of any claim.
  • ICICI Lombard (IL) intimates the claimant about the documents requirement
  • IL collects the documents as mentioned from the customer
  • In case of incomplete forms, ICICI Lombard writes back to customer asking for the pending documents
  • ICICI Lombard’s customer service department to decide the admissibility of any claim after receiving the documents and investigation report, if applicable
  • On admissibility, the payment will be made. The payment will be made within 7 days of receipt of all completed documents
  • In case, the documents are not received form the customer within 3 months of intimation the claim would be closed. However before closing the claim ICICI Lombard would send a letter to customer that the claim is closed because of non-receipt of documents
  • The loss should be reported in writing to the insurance company/call centre within 90 days of happening of the event
  • Any claim due to violation of law or misrepresentation, concealing of facts would not be eligible for any payment.

For further details / queries on terms and conditions, please get in touch with HSBC Investments - http://www.hsbcinvestments.co.in, ICICI Lombard - http://www.icicilombard.com.

Small Business Liability Insurance - Part 1

While it might be comforting to think that insurance is something that only the big companies need to worry about, insurance is something that all businesses need to worry about.

Whether you're a management consultant, real estate agent, tax lawyer, healthcare specialist, or a service provider, the specifics might be different, but the insurance risks are much the same. As small business owners with offices that need to be protected from the threat of financial loss, business insurance and small business liability insurance is simply a smart solution to that end.

Most Non-Life insurance companies like New India Assurance, Bajaj Allianz and others provide policies for Liability Insurance in some format or other. Financial Advisors providing insurance services should speak to their prospects and clients and advise them to insure their businesses with the liability cover.

Below article by James Cochran emphasizes the need for Business Insurance.

You Need Insurance Regardless of your Business

When you run your own business, you take on obligations and responsibilities above and beyond that of the average citizen. In fact, it can be seen as somewhat of a double-edged sword. On the one hand, you probably go into business hoping to make a profit doing something you love while providing a benefit to others. On the other hand, all those others are affected by what you do — good or bad. It's the latter that can get business owners into trouble if they don't seriously think about serious business insurance protection.

Let's take small business liability insurance as an example. Without this form of insurance protection, a business owner is putting themselves in unneeded and unnecessary financial risk.

Small business liability insurance is that which essentially protects a business from the threat of a lawsuit. It differs from other kids of protection many individuals might already be familiar with because it covers assets from the risk of being attacked by a claim of misconduct carried out by you or your business. If somebody decides to sue your business, not only could you be on the hook for the damages awarded, but the legal fees involved can often be staggering, even if the lawsuit is frivolous. Things like small business liability insurance, as part of a comprehensive business insurance package, are meant to deal with just such instances.

If you don't think that your business is at risk like this, you might want to reconsider. No business is too small or irrelevant to be untouched by the risk of a lawsuit. In fact, the smaller you are, the less you'll be able to count on your own resources to address the crisis of a legal proceeding, or the damages awarded as a result.

Perhaps for no sector of business is this reality more apparent than with small offices providing services of various sorts. While the amount of resources at your disposal is tight, the extent to which you may have an impact on the public is very considerable. And the extent to which that same public can come back and bite you can be similarly considerable, too. This goes for real estate professionals, management consultants, tax preparers, lawyers, doctors, and so on. No one is immune from the threat covered by business insurance that includes things like small business liability.

No matter how competently you think you run your business, how much emphasis you place on customer satisfaction, how well thought of you are in the business community, or the lengths to which you strive for excellence and achievement in your profession, you can be hit by a lawsuit. And, very often, you won't even have seen it coming. Even some service provided as a sub-contractor for someone else can be seen as having done harm to someone. If that someone decides to sue, there are costs that have to be covered. Good business insurance will cover it. More specifically, good small business liability insurance will cover it.

Let's take the management consultant industry as an example of where business insurance that includes small business liability is necessary.

The duties and responsibilities associated with the job of being a management consultant are considerable. In such a capacity, you use your expertise in the field of management to advise people professionally on a whole range of matters related to the proper running of a business. This can includes things as simple as staffing to something more sophisticated like public relations. Good management consultants provide a professional service noted for the extent to which comprehensive solutions are offered to meet challenging business environments.

This is precisely why management consultants need to be covered by good business insurance that includes small business liability insurance.

The extent to which their advice and solutions impact people can be almost limitless. In fact, if you tried to figure out who might sue you for advice you gave a client, you might never be able to do it. There will always exist people who simply perceive themselves to have been hurt by something you did. And they'll sue you for it.

Alternatively, even the best management consultants make mistakes. Sometimes they could have legal ramifications. Other times, they could have professional ramifications. Indeed, things like errors and omissions insurance or professional liability insurance exist because professionals make mistakes. Not only do they make mistakes, but they make mistakes that violate the professional principles involved in their industry. It happens. It's why even management consultants need good business insurance and liability protection.

Of course, whether you're a management consultant, real estate agent, tax lawyer, or healthcare specialist, the specifics might be different, but the insurance risks are much the same. As small business owners with offices that need to be protected from the threat of financial loss, business insurance and small business liability insurance is simply a smart solution to that end. They literally help protect the small guy and gal from the swamp out there that could digest everything they've worked for. And that swamp could include the unwanted lawsuit.

Article Source: http://www.articlesbase.com/insurance-articles/you-need-insurance-regardless-of-your-business-230037.html

About the Author:James Cochran is the founder of Business Insurance Now, a web-based professional insurance agency . Business Insurance Now and Techinsurance have grown to become America's leading online provider of small business insurance plans for a wide range of businesses, currently serving more than 12,000 business clients throughout the US.

DnB NOR to start Non-Life insurance company, open office in India

Norway's biggest banking group DnB NOR announced on Tuesday that it would establish a new Non-Life Insurance company by the end of 2008.

The company also said in a statement at the beginning of a capital markets day event for investors in London that it would open three new international offices, in Chile, Greece and India.

DnB NOR said it had "an ambition to capture a considerable share of the retail non-life insurance market."

DnB NOR wishes to offer customers a full range of financial services. The establishment of our own non-life insurance company will enable us to tailor products to the retail segment. We will take advantage of our extensive distribution power to gain a considerable share of this market," says Åsmund Skår, group executive vice president, DnB NOR Retail Banking.

Since 1999, DnB NOR has offered its customers non-life insurance through Vital Skade. The current portfolio with NOK 700 million in premium income will be incorporated in the new company.

"We have extensive experience within non-life insurance, and DnB NOR is at the forefront in the electronic distribution of insurance products through the Internet bank. This ensures very cost-effective operations. Today, 5.8 per cent of our 800 000 Internet banking customers have bought non-life insurance policies. We aim to increase this share to 30 per cent," says Åsmund Skår.

DnB NOR will market non-life insurance in all distribution channels: branch offices, the telephone bank, the Internet bank, the mobile bank and real estate brokerages.

Source: Agencies

Bank warned for unfair trade practices by selling unsolicited insurance policies

Anti-trust body MRTPC has issued a stern warning to ICICI Bank for selling insurance policies to its credit card holders without their consent and has asked it to stop the practice.

Acting on a complaint filed by one of its credit card and bank account holders to whom the bank sent an ICICI Lombard General policy without consent, MRTPC bench headed by Justice O P Dwivedi passed a cease and desist order and held it as an unfair trade practice to promote its business.

"The practice of issuing Lombard policy in the name of the complainant without his request or consent would clearly amount to adopting an unfair trade practice by the bank to promote its business," the bench said.

"Accordingly, we direct the respondent to 'cease and desist' from adopting the same in future," it added.

The Commission's direction came on a complaint filed by one Leeladhar Pant, a holder of both credit card and savings account holder of the bank, to whom ICICI sent a group death insurance policy.

Later, the bank further directed him to pay Rs 460 for the ICICI Lombard policy for which he never opted.

Pant made several requests to the bank to remove this cover but was not entertained and instead he was asked to pay Rs 13,000 for the policy.

Despite repeated request to send him a correct bill, ICICI Bank sent him another bill of Rs 34,000 and made an auto debit of Rs 5,600 from his saving account.

Feeling aggrieved, Pant approached the Commission requesting it to ask the bank to cancel the policy and return the amount deducted as charge for it.

Source: PTI

General Insurance Council will review Health Insurance norms

General Insurance Council, the forum of all general insurers under IRDA is working to review the health insurance norms followed by Insurance companies, said B D Banerjee, former CMD of Oriental Insurance company and National Insurance Company, and a member of committee for senior citizens insurance at IRDA.

He was speaking at a seminar organised by the Bengal Chamber of Commerce and Industry.

Various points would come under the review including indiscriminate non-disclosure fees charged, guidelines for conducting medical tests, and pre-existing illness definition for medical claims.

Speaking on the occasion Suresh Mathur, joint director of IRDA, said that ambiguous policy terms had to be avoided for making the business more transparent. Also, health insurance has to be promoted to ensure proper coverage of the weaker sections of the society and senior citizens.

Bannerjee, further added, In case a person has any symptoms of a disease, the entry load should be increased to adjust the cost. However, in that case, the insurance cover should not commence after two years of buying the policy, but right from the day of purchasing it.

He also said if a person has had a medical treatment for more than 12 months, the entry load should be increased but the benefits of mediclaim should not be denied to the subject.

He felt as cardio- vascular disease was one of the commonest ailments these days, the entry load of an insurance scheme should be adjusted according to the glucose, lipid and hypertension levels of the insured.These steps would help in standardistion of medical costs, he said.

Apart from this, Banerjee also felt that the increase the premium on health insurance by 200 per cent for people above the age of 60, as illogical.

“IRDA has made it clear that the increase should not be more than 50-70 per cent, but the cap is mostly violated by companies,” he confessed.

Also, insurance companies should come up with regional tariff plans as done by the National Insurance Company. He claimed that accreditation of health care institutions would bring down the cost of medical insurance. People who could not afford medical insurance should be offered a product like Medisafe, where employee and employer jointly contributed to a fund that covered all employers.

“Accreditation of hospitals would go a long way in identifying providers which will provide qualitative and cost effective health care,” said Mathur.

Hyderabad to host CII health conclave on Oct 9

The CII healthcare conclave coming up in Hyderabad next week will highlight the need for quality and affordability of medicare in the country as the sector continues to boom.

The conclave to be held by Confederation of Indian Insustries (CII) on October 9, 2007 will also press for industry status for the sector. “For a long time healthcare has been considered an unorganised industry with doctors turning entrepreneurs. The industry today is the largest employer and demands an industry status,” said Mr Vishal Bali, conference Chairman & CEO, Wockhardt Hospitals Group.

“As a fast growing economy we need to focus on the healthcare sector. Today, the healthcare expenditure in the country is 5.2 per cent of the GDP and only 0.9 per cent of its gross expenditure, which is the lowest in the world. There is a huge need for investments to improve access to basic healthcare and fill the shortfall of approximately 8,00,000 beds in the country,” he added

The conclave will focus on improving gaps in bed strength, medical and paramedical staff, news technologies, investment and financing models.

The fifth in the CII’s annual national service sector conclave series is titled `Healthcare services: next practices and mantras for survival’.

The Andhra Pradesh Minister for Medical Education and Health Insurance, Ms Aruna Kumari Galla, is to participate, Key players across the industry will include Apollo Hospitals, Wockhardt Hospitals, Satyam Computer Services Ltd, Arvind Eye Hospital, Max Healthcare, P.G. Hinduja National Hospital, Yashoda Hospitals, insurance regulator IRDA, Star Health, Kotak Mahindra Bank, Citibank, Johnson & Johnson Medical, Philips Medical Systems, GE Healthcare Technologies.

Health insurance importance, tariff and reach emphasized at Health Insurance Summit organized by CII

Is Tariff really a critical factor in the growth of Health Insurance. Do people do not take health insurance because of tariff or due to a lack of awareness. Setting any kind of boundaries does affect a market, and probably that is what C. S. Rao, Chairman, Insurance Regulatory and Devleopment Authority meant to say.

"The healthcare industry has two concerns: insurance and removal of tariffs. Once tariffs are removed, insurance will get a boost, said C.S. Rao, while speaking at the Health Insurance Summit organized by the Confederation of Indian Industry (CII) on Oct 5, 2007 in Mumbai.

Also it has been noted that senior citizens are unhappy with the existing health insurance schemes and an issue which needs to be addressed, said Mr. Rao.

Health insurance in India forms a small part of insurance. With 75 percent of the Indians residing in the rural areas, more doctors need to be posted in these regions. Also, the poor have still to be taken care of by the government since it is only a miniscule number of people from the society that can pay for health insurance.

By next decade the health insurance scenario in India would look different undergoing a transformation due to efforts from Government, added Mr. G. C. Chaturvedi, Joint. Secretary and Mission Director, National Rural Health Mission, Ministry of Health and Family Welfare. With an addition of 0.11 beds per annum and 100 million Indians covered by self-funded government schemes, most public private partnerships will reduce high out of pocket health insurance. Regulatory mechanisms would also be enforced to have a proper system in place. Proper policies needs to be in place, for the catering to the health requirement of the poor.

Dr Prathap C Reddy, Chairman, CII National Healthcare Council and Chairman, Apollo Hospitals, emphasized that while the health industry contributed to over five percent to the national income, still it remains one of the most neglected industry. The reasons are mainly lack of awareness and disinterest among the masses on the whole.

The statistics for health services are not so encouraging with one Primary Health Centre for every 30,000 people and only six maternity beds. The rural sector which forms 75 percent of Indian population has access to only 31 percent of hospitals, 18 percent of beds and only 25 percent of qualified allopathic doctors.

In addition to that the light escalating prices for medicines, treatment and to avail medical facilities is slipping out of one's reach.

Although there are a host of insurance policies available today to choose from mandatory, public, private, employer based to community based schemes, the hindrances has been due to the fact that 24 percent of the population are poverty line and 35 percent are illiterate.

As per the study undertaken by the WHO, the insurance in India is mainly financed from out of pocket expenditure in comparison to all other countries involve in the study including China, Sri Lanka, Vietnam to mention a few.

India has a huge population base; there is immense potential for the industry to grow in future. While the government is working on the regulatory issues on one hand, the private sector is looking at insurance expertise and product design.

"Unlike Life Insurance, in case of health insurance, there are multiple stakeholders involved and it is important for all of them to work together to make a success of this. This Summit has tried to assemble a confluence of industry players on a common platform to explore and arrive at a consensus on key directions," said A Vaidheesh, Summit Chairman and Managing Director, Johnson and Johnson Medical.

An aging population and an increase in lifestyle diseases will push the demand for hospitalization. It is important to recognize health as continuum and not as a point of reference. "The Summit will prove constructive for the vast array of issues affecting growth of this industry and the economy as a whole." Calling for a broader view of healthcare costs and an improved healthcare infrastructure, he said that by 2015, health insurance will cover 20 percent of the Indian population.

Providing an insight into the insurer's mind, Mr D D Singh, Executive Director, Health Insurance, Life Insurance Corporation of India, stated that an insurer faces difficulties while choosing a product. Cost, quality and access decide the success of health insurance. The insurance companies need to talk about the mindset of the customer.

According to Jean-Michel Chatagny, MD, Client Market Asia, Swiss Re, in 2004 the world spent 4.1 trillion dollars on health. India has very less expenditure on health. Private insurance is very low and has the lowest percentage of government spending among the BRIC countries. The Swiss government encourages purchase of health insurance. India has potential for private insurers. Also, the care delivery infrastructure needs to be overhauled and the government has an important role to play, he said.

In his welcome address, Banmali Agrawala, Deputy Chairman, CII Western Region and MD Wartsila India Ltd said that the first ever health insurance summit in India is an attempt to remind people of the importance of 'forgotten' health and health insurance to keep up with the fast track life. An indirect advantage of health insurance is that it keeps medical costs and practices under check. With the opening of the Insurance Industry to FDI, large amounts of funds have been flowing in.

Shobhit University starts insurance scheme for students, and parents / guardians

Shobhit University, Meerut, has opened a personal accident insurance scheme called Adarsh SUBIDHA Scheme (Adarsh Shobhit University Bima Dhan Scheme) with United India Insurance Co. Ltd.

The management showing the attitude to maintain corporate social responsibility and human ethics has opened the policy for Rs. 33 crore, operational since 10.09.2007

The uniqueness of the policy is that it covers not only all the staff members of the University but also the first year students enrolled in the University as well as their parents/financing guardians from personal accident arising out of any violent/visible means resulting into partial/permanent disablement or death. Keeping in view the fact that in case of any untoward accident, the study of students does not get affected due to financial constraints.

The extent of insurance coverage is as under

• Students - Rs.1 Lakh
• Parents/financing guardians - Rs.2 Lakh
• Staff of University - Rs.1 Lakh

In case of partial permanent disability the claim payable is 50% of the insured amount.

Certificate of Insurance has been given to 1000 new students enrolled in first year and also for their parents/guardians as well as to around 300 staff members.

M/s Instant Healthcare Pvt. Ltd the intermediary of insurance company will provide free medical check up including ECG, X-ray etc. vision test with help of expert doctors once in a year on 8th February every year & also 10 free consultations annually from empanelled doctors nearer to the university campus to all students.

Indian Railway benefits by lower insurance cost from market competition

Indian Railway is being sought after by insurance companies as each time you travel by train you are insured for just 4.75 paisa against accidents and untoward incidents including terror attacks.

Indian Railways insured each of its passengers for just 4.75 paisa this year while the amount was 6.20 paisa per passenger last year. A senior railway official attributed the low rate of premium for each passenger to competitive rates offered by private insurance companies.

“Because of the participation of private companies in the bidding, we are paying the premium at competetitive rates. It was 6.70 paisa in 2005-06 which has come down to 4.75 paisa this year,” said the official.

ICICI-Lombard, a leading private sector insurance firm, has got the railway insurance account for Rs. 34.35 crores as premium covering an estimated 650 crore passengers in 2007-08. The contract is effective from 20 September this year to 19 September 2008. Railway accidents and untoward incidents like rioting, robbery, dacoity or bomb blast on any train is covered by the insurance policy.


“Even if a person in the waiting room, cloak room, platform or any other place within the railway premises is affected by any untoward incident is liable for compensation as per the amended Railway Act,” said the official. About 7,000 trains run daily carrying about 1.6 crore passengers across the country.

Source: Agencies

Health insurance for Below Poverty Line unorganised sector workers

New Delhi,(PTI): In keeping with the promise made by Prime Minister Manmohan Singh in his Independence Day address, the Government will launch on October 2^nd a Health Insurance Scheme "Aam Aadmi Bima Yojana" for 40 crore unorganised sector workers.

In the first phase, the health insurance cover will benefit workers and families living Below Poverty Line in the unorganised sector and States have already been asked to formulate projects, a Labour Ministry official said.

Under the scheme, the launch of which was approved by the Union Cabinet earlier this month, it shall be the responsibility of the implementing agencies to verify the eligibility of the unorganised sector workers and his family members who are proposed to benefited.

The beneficiaries under the "Aam Aadmi Bima Yojana" will be issued smart cards with social security number for the purpose of identification.

The scheme envisages life and disability cover to all rural landless households in the country. The insurance cover will be for Rs.75,000 on death due to accident and permanent disability due to accident.

In case of partial disability due to accident, the insurance cover would be Rs.37,500 and upon death of a member, prior to terminal date, Rs.30,000 is the insurance amount.

The premium to be charged under the scheme will be Rs.200 per year per member of which the Centre is likely to bear 75 per cent of the cost, 25 per cent more than what was planned earlier. The Finance Minister has already committed Rs.1,000 crore for the scheme in the Budget. The remaining amount will be given by State Governments, he said.

SBI to enter Non-Life insurance sector

State Bank of India (SBI), the country’s largest public sector bank, after sucessfully setting up its life insurance business, is now looking ahead to make an entry in the non-life insurance sector. “We are interested in the general insurance business and are talking to some foreign companies in this regard. We expect to make a formal announcement in 3-6 months”, said chairman Om. Prakash. Bhatt.

A total of 6-7 companies from Australia, Europe and United States have evinced an interest in the proposed joint venture. “We are in the process of short listing 2-3 companies”, Bhatt said, without divulging any further details.

Since the insurance business is very technical, the bank was interested in a partner who knew the rules of the game. "We are looking for a partner having product development expertise in sectors such as micro-insurance”, Bhatt said.

While the economy is booming, growth is confined to big corporates, export-oriented industries and small and medium enterprises (SMEs), while leaving small businesses and artisans untouched. The public sector and government is taking the initiative to provide insurance coverage to the excluded sectors, he added.

Giving a detailed account of the bank's various plans in the pipeline, he said a unique 'payment gateway' facility was expected to be put in place in the next three months to ensure speedy, hassle-free and smooth flow of foreign investment into the country where rapid industrialisation is taking place.

Stating that the proposed system was like the core banking facility, he said funds would reach the desired destination within 24 hours under payment gateway mechanism, which would be much faster and efficient compared to the traditional deposit procedures.

Bill to punish hospitals for turning away emergency patients

New Delhi(PTI): Private hospitals and practitioners will not be able to turn away an emergency patient if a bill drafted by the Law Commission takes the shape of a law.

The Commission in a draft bill on accident victims and emergency patients, which includes expecting women, seeks to make it binding on the hospital or the doctors to admit, stabilise or transfer, if required, to another hospital irrespective of whether victim can pay or has medical insurance or not.

The hospital cannot refuse the accident victim even on the ground that it was a medico-legal case and that it can be attended to only by a designated hospital of the jurisdiction, the draft bill says.

Under Indian laws, the case of a person getting an injury, whether by accident or inflicted, must go through the process of court. Thus, he can be examined and treated only by the designated government hospitals, which are usually few and far between.

The private hospitals turn away such patients as the treatment may be viewed by the court as interference in the process of law.

As a result many a patient battling for life lose it out as he is taken from hospital to hospital, without finding any medical help.

But private hospitals are also routinely turning away patients when they find the patients cannot pay, or does not have an insurance cover.

ICICI Bank launches the Probationary Officer Programme for Banking and Insurance

ICICI Bank, India’s second largest bank, today announced the “Probationary Officer Programme.” It is a first of its kind, nation wide initiative to attract bright graduate students to pursue a career in banking.

Applications will be invited from graduates across the country and aspirants who are selected under this programme will go through an intensive one-year residential training program. On successful completion of the program they will be awarded a Diploma in Banking & Insurance and absorbed in a managerial position at ICICI Bank. They will also have an opportunity to pursue an e-MBA while working. All the costs incurred on the training will be borne by ICICI Bank and the students will be paid a monthly stipend to take care of their expenses.

The selection will be through a multi stage selection process and those selected will be eligible for the requisite training. The training program will cover knowledge, skill and etiquette in various business areas, which will be delivered through identified training partners. The students will be trained in areas of Corporate Banking, Private Banking, Risk and Credit Management, Treasury, Branch Management and Relationship Management.

The course will involve one year of rigorous classroom training and internship. Mr. K. Ramkumar, Chief Human Resource Officer, ICICI Bank, said,” This is an attempt to provide an alternate career opportunity to aspiring graduates.”

He also added,” The Probationary Officer Programme, which is the first of its kind programme, will offer graduate students a professional qualification and a managerial job.”

How have 'Critical Illness Insurance' sales developed in the UK?

Critical illness insurance, origin of South Africa arrived in the UK in the year 1985. Some companies tried to market the product but in vain. It was not until the late 1980’s that the real success for critical illness cover came.

In the year 1990, people seemed interested in having a critical illness cover. Therefore, around 100,000 critical illness policies could have been sold in that year. Market surveys revealed that the growth of critical illness cover sales would be continuous for the coming years. The reason behind was that many people could have been interested with the direct benefits offered. Thus, by 1997, sales of approximately 633,000 critical illness policies could be counted in the UK. Furthermore, in the year 1998, sales had further increased to 695,000 with considerable rise recorded in the years 1994/95. By the end of 1998, about 2.25 million critical illness policies could be found in the UK.

Moreover, critical illness cover was sold in two different formats known as accelerated and standalone. Around 82 percent of covers sold could have been accelerated covers. Out of these, about 40 percent may have been term insurance, 12 percent may have been whole life and 48 percent could have been endowments. As a matter of fact, the average sum insured for each type of accelerated critical illness policies could have been as follows: GBP 47,000 on term insurance, GBP 68,000 on whole life and GBP 35,000 on endowments.

Additionally, 18 percent of critical illness policies sold in the year 1997 could have been standalone. Out of this, about 50 percent may have been riders to term insurance policies while the remaining 50 percent could have also been riders to whole life policies. The average sum insured might have equaled GBP 48,000 on term insurance and GBP 64,000 on whole life insurance. The average monthly premium payment for both type of critical illness policy could have been GBP 370 and GBP 380 respectively.

There are other reasons why people chose to take a critical illness cover in the UK. Around two thirds of critical illness sales could have been made regarding mortgage. Many people consequently accelerate their critical illness cover with mortgage. Should they happen to fall ill in the future, the remaining mortgage balance could be paid out by the lump sum awarded to them. Becoming self employed can be another reason that may have pushed people towards taking out a critical illness cover. Considerable sales volumes could have been recorded because the self employed do not involve in income protecting procedures as company employees. Critical illness insurance may offer help in case the job is lost for the self employed. The need to finance children so that they attain higher level of education may have also boosted critical illness policy sales in the UK.

The trend of critical illness policy sales had been an ever increasing one since its arrival in the UK. Accelerated policies, as seen have been more successful than standalone critical illness policies. The increasing trend of critical illness cover sales is predicted to continue.

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http://www.unbeatablelifeandcriticalinsurance.co.uk/

Article Source: Self Improvement Articles from PositiveArticles.Com

PAN, a detterent for investments in MF vis-a-vis Insurance : AMFI chief

Association of Mutual Funds in India Chairman A P Kurian said on Saturday that canalising household money into mutual funds has become a challenge.

Income tax permanent account number requisite, know your customer norms, and lack of level playing field between insurers and mutual funds are the key reasons for the problem, he said.

“We need to see inflows increase from households into mutual funds. This is a constant challenge and struggle for the industry due to some policy framework,” he said.

Kurian was referring to the PAN requirement for investing in mutual funds, and the absence of the same requirement in the insurance industry.

From July 2, the Securities and Exchange Board of India has made it mandatory for existing as well as potential investors to submit a copy of the PAN or an evidence of having applied for the same until the year-end.

From January, no mutual fund applications without a copy of PAN card will be accepted. This has led to slowdown of retail participants in the equity funds and also hit the systematic investment plans and micro SIPs that are targeted at the lower end of the economy.

Amfi head said lack of financial literacy was a hindrance in reaching out to retail investors in remote areas. He voiced concern of low penetration of mutual funds in the country, saying only 4-5 per cent of India’s gross domestic savings go into mutual fund investments compared with as much as 50 per cent in other countries.

Source: Agencies

Pantaloon and Future Generali, Italy tie-up for JV in Life and Non-Life

IRDA has issued certificates of registration to Future Generali, the insurance joint venture of Pantaloon Retail India and Italian insurance firm The Generali Group.

Future Generali India Life Insurance Company Limited to transact life insurance business.
Future Generali India Insurance Company Limited to transact general insurance business.

Pantaloon will hold 74%, while the rest will be held by the JV partner. Future is the new brand name being promoted by Pantaloon Retail. Future Generali will have a start-up capital of Rs 2 billion.

Pantaloon and Generali are betting on a 15-20% growth in the insurance business in India. High savings and the opening up of the insurance industry are seen as positives for the insurance sector.

Said Kishore Biyani, Chief Executive of the Future Group that owns Pantaloon: "India is a very young country with 60 percent of the population below 30 years of age. These are the new insurance buyers of India tomorrow who spend a significant time at modern retail outlets (stores and malls)."

Generali is one of the largest insurance groups in the world, operating in 40 countries through 107 companies. It ranks 22 in the list of Fortune 500 companies and is the largest corporation in Italy with an asset base of over euro 300 billion. Both Generali and Pantaloon Retail are listed companies.

IRDA boost for Hyderabad bridge collapse victims

The insurance regulator may step in if insurers to Gammon India’s ill-fated Hyderabad bridge refuse to pay claims as per clauses in the contract, reported Economic Times today.

It is alleged that insurers including ICICI Lombard and Reliance General insurance could refuse to pay claims citing wilful negligence and faulty design-risks which are not covered under such policies.

The state government appointed an enquiry committee, which is expected to submit its report shortly. If investigations reveal that the collapse was due to wilful negligence and faulty design, insurers will not pay out claims. Both ICICI Lombard and Gammon India officials refused to comment.

Risks such as wilful negligence, faulty design and workmanship, normal exclusions like war and nuclear perils are not covered under such covers. Not only will basic claims not be paid, even third party claims may be ruled out, said sources.

It is understood that Oriental Insurance Company also has exposure to the Gammon India project for building the flyover. Sources in an insurance company said negligence as a risk is not spelt in statutory law, but under torts, it may be established that the victims were under the flyover by their own discretion.

It is not clear whether specific instructions were put out by the contractor or Gammon India warning the risks at the construction site. Gammon India did not respond to an e-mailed query. Consultants were appointed on behalf of the government and were supposed to monitor the implementation of the project. The 1.7-km flyover was taken up in September 2005 for an estimated cost of Rs 30 crore.

Already, a case has been registered against Gammon India for criminal negligence. If the claim payout is substantial, it could have a material impact on the balance sheet of the company.

Officials at Oriental Insurance said, “Usually policies for civil structures are all-risk covers where elements such as the property erected, the implementing machines and a third party extension that covers loss of life and property is insured.” Specific details of the policy were not disclosed.

The sum assured is determined by the company depending on the exposure to risk. In a busy area, the third party risks will be higher and will need a higher premium. There is enough credible data on risks involved with such construction to give a reference point on the size of the risk and premium needed, he said.

The size of the premium for such policies is decided by the cost of the project and the creation of liability. The claims are usually determined by litigation — and largely settled outside court on a case-by-case basis.

In motor accidents, the compensation is linked to income status and productive years left as per Supreme Court guidelines. In this case, the vehicles crushed under the flyover would be paid compensation by the government if they are not covered by motor insurance

Source: The Economic Times

Private Cos have created a niche in Insurance

Insurance sector in India has attracted over 540 million dollar of FDI and is poised for tremendous expansion said Shri Pawan Kumar Bansal, the Minister of State for Finance while addressing a meeting of Insurance Australia Group on 21st September 2007 in Sydney.

Banks also have entered the insurance sector in the form of corporate agencies or under referral arrangements to utilize the extensive and broad reach for marketing of insurance products.

The private companies have created a niche for themselves, he said, adding they have been able to increase their share in the insurance market in competition with their counterparts in the public sector. As per the current regulation, foreign entity is allowed equity upto 26 percent in the sector.

The growth seen in insurance sector has been significant, and the sector has a great potential to unfold and create many opportunities and services. India ranks 78th in terms of insurance density and 54th in terms of insurance penetration. The world averages are US $ 469.6 in terms of insurance density and 8.06% in terms of insurance penetration. Against this, insurance density was US$ 19.70 and insurance penetration was 3.17% in India for the year 2003. However, these two indices have increased following the opening of this sector.

Insurance Regulatory and Development Authority has granted registration to 37 insurance companies, which include 17 life insurance (including on PSU), 19 non-life insurance (including four PSU, one AICL & one ECGC) companies and one re-insurance company. At present seventeen insurance companies are operating in the general insurance side and seventeen insurance companies on the life side.

IRDA has also notified Micro Insurance regulations facilitating insurers to tap the potential of rural markets. As per these regulations like Non-Government Organizations (NGO), Micro Finance Institutions (MFI) and Self Help Groups (SHG) have been recognized as micro insurance agents. It is envisaged that micro insurance would facilitate penetration of insurance to rural and remote areas. He said that Micro Insurance being an integral part of overall insurance system, attempts to offer the target specific insurance products at a relatively lower cost, for a lower coverage of amount.

Promoting the insurance sector, Bansal said that India offers a stable investment climate as well as a huge market with a growing middle class. A.T. Kearney in 'The FDI Confidence Index 2005' has ranked India as the 2nd most attractive investment destination just behind China whereas 'World Investment Report, 2005' ranked India as the 2nd most attractive investment destination among Transnational Corporations, he added.

How to prepare the Prospect File

1) Decide area of operation. Where would you be doing Business? Let us say take for an example: Area as Mumbai City. You decide to work from Borivali to Cuffe Parade on the western line only.

2) Divide your area of operation into four Zones. A Zone should be an Area where we can travel from one end of zone to the other end in 30 minutes like Haji Ali to Cuff Parade could be one Zone, Worli, Parel up to Haji Ali another zone.

3) Make a file of the prospecting call sheets given to you. The file should have at least 50 sheets.

4) Put partition cards after 12 sheets in such a way that there are four partition cards in the file denoting each Zone.

5) Write the name of a different zone on each of the partition cards.

6) Designate four days in a week purely for meetings with customers both new and follow up. Allot a different zone to each of those four days.

7) Paste the Schedule on the front inside cover of the file.

8) Fill up the prospect file with names, Tel no’s, addresses and reference details zone wise depending on where we would meet them. If we do not know where the person would prefer to meet then write his details in both zones – zone of residence as well zone of his office. If he stays in Santa Cruz and office is in Town write his details in both zones.

9) Whenever you want to fix appointments look at the schedule in the front inside cover of the file. Depending on the day and the zone allotted to that day, open the divider of that zone and take appointments for persons in that part of the prospect file.

10) If a customer is generally not available on the day allotted to that zone or if someone would meet you only on a particular day then change the schedule in that week to accommodate that person and then revert back to the original schedule in the following week. This should however be an exception than a rule.

11) Whenever you call a particular person enter the details of the call in the calling sheet provided to you. One calling sheet can accommodate 6 persons and 12 call details of each prospect. Enter the date of calling in the column provided for the date. Enter the name of the prospect if you spoke to him/her. If the prospect is not available then enter the name of the person you spoke to. Always enter the details in pencil so that you can extend the use beyond 12 calls. Enter short details of what the prospect told you.

12) Whenever you call the person again, read all the details of his previous calls so that you can an understanding of the situation. If he has asked to call after a month and if a month is not over you can skip calling that prospect.