IRDA proposes minimum surrender value for traditional plans
The Insurance Regulatory and Development Authority (IRDA) has proposed that all individual traditional life insurance policies that includes non-linked policies and pension plans shall acquire a minimum guaranteed surrender value (GSV).

IRDA, to this effect, has provided the revised draft guidelines on the design of life insurance products and in that, IRDA has recommended a minimum guarantee surrender value to the traditional policies. This will be relatively higher than what is currently paid to the policy holders.

It is stated in the revised draft guidelines that the minimum GSV would be 50% of the total premiums paid if the policy is surrendered in the second and third year. The minimum GSV would be 75% of the total premiums paid, if the policy is surrendered in the fourth years and 90% if the policy is surrendered between fifth to seventh year. Beyond that, the minimum GSV would be 100%.

This minimum GSV concept is applicable to those policies which have a premium paying term of 10 years and more and if all the premiums have been paid for at least three years. If the premium paying term is less than ten years and all the premiums have been paid for at least two consecutive years.

Minimum GSV would not be applicable to products like term insurance, health insurance products and immediate annuities without death benefit. ULIPS already have minimum GSV.

New Pension Plan by Reliance Life
Following the revised pension product guidelines by IRDA providing for removal of 4.5% return guarantee requirement, Reliance Life is planning to launch a new pension plan in the next two months. Reliance Life has already submitted the product design to IRDA for approval. This pension plan would be a pension accumulation plan.

Since IRDA revised pension product guidelines and removed the 4.5% return guarantee requirement, many private insurers are planning to launch pension plans.

HDFC Life launches 'Invest Wise Plan'
HDFC Life Insurance has announced the launch of an investment product aimed at individuals who wish accumulate savings for retirement. The plan is named as “Invest Wise Plan”.

Following the survey with Value Notes on the “Wisdom Investor’ segment” with investors aged 45 years plus brought out two interesting insights.

a) Wisdom Investors are relatively more worried about child’s education rather than retirement or health expenses. While they do have a financial plan, the goals are directed at their dependents rather than for retirement.

b) They rely more on traditional assets such as property, gold and insurance products. While these long term investments are made, they do not keep track of events, which may dilute their return on investments.

HDFC Life Insurance targets at the ‘wisdom investors’ over 45 years segment. This plan opens up the saving horizon of 15 years. Individuals up to the age of 70 years may opt for this product which comes with no-medicals excepting to answer few questions. This plan also has a feature of partial withdrawal after 5 years.

Hiring of Salary Based Agents by Reliance Life
Reliance Life Insurance Company has planned to hire 5000 advisors on fixed salary basis by the end of this financial year from small cities and rural areas. These cities would include Tier II and Tier III cities. The objective of the company is to hire the agents on a fixed salary basis which would provide the agents a sense of career and security.

The insurance agents in India work on commission basis and hence there is uncertainty of income on a monthly basis. This is the reason, among others, for the growing attrition rate in the industry. Keeping this mind, Reliance Life is planning to focus on the potential Tier II and Tier III cities to hire the agents on its pay roll.

Reliance Life Insurance has already hired over 500 such agents and posted them in about 100 branches across the country. The company plans to hire around 5000 more career agents by end of this fiscal year.

According to the Spokesperson, this new distribution channel will complement the existing advisor workforce functioning on commission basis. With the passage of time, Reliance Life Insurance plans to take the salary-based advisor system to the next level with bigger numbers and proliferation.

Closer Bond with the Customer – Reliance Life
Mr. Malay Ghosh, President and Executive Director, Reliance Life Insurance has launched 'Reliance Life Plus Club', a first-of-its-kind customer service initiative by any insurer in India.

Reliance Life Plus Club is a unique initiative. This CRM initiative tightens the bond between the advisor and the customer. Under this initiative, the agent is mandated to meet the customer and build long term relationship, beyond meeting them for mere collection of premium

While speaking to the Press, Mr. Gosh said "Life insurance is all about long-term protection, trust, relationship and association between the insurer and insured. However, the fundamental focus of insurance companies in India has been more on getting new customers than servicing existing policyholders. We wish to change this with our new initiative,"

Reliance Life is the pioneer in the Insurance industry to introduce a unique and structured post-sales customer sales service which enables the agent to build a continued relationship with the customers. Reliance Life Insurance, following the “Zutto Motto” service which means ‘forever more service” of Nippon Life Insurance, has made it mandatory for its agents and channel partners to visit the policyholders at least once in a year. With this new initiative, the company would have met one million customer by the end of this financial year.

IndiaFirst Life tie up with Chaitanya Godavari Grameena Bank
IndiaFirst is a joint venture between public banks Bank of Baroda and Andhra Bank along with UK's leading risk, wealth and investment company Legal & General.

In 2011, IndiaFirst had signed with CGGB for product distribution among the Bank’s customers. IndiaFirst Life Insurance has added two insurance products for customers of Chaitanya Godavari Grameena Bank (CGGB) in Andhra Pradesh.

Under this agreement, Chaitanya Godavari Grameena Bank will offer the IndiaFirst Group Credit Life Plan and IndiaFirst Group Term Plan to its loan and savings bank account customers. The Bank will be the Master policyholder for these products.

IndiaFirst aims to cover an additional 25,000 lives under the Group Term Plan with an average sum assured of Rs. 50,000. The insurer also plans to cover 2,500 loans by March 2013.

“Maha Raksha Supreme” – New Term Insurance Plan from Tata AIA
Tata-AIA Life (formerly, Tata-AIG) has launched a new term insurance product which is a pure protection policy. The policy comes with a minimum sum assured of Rs. 50 lakh and falls in the ‘high-end’ term plan category.

The Maha Raksha Plan comes with two pronged options – pure protection cover and extra protection cover. While the Pure Protection cover offers the basic sum assured to the nominee upon the death of the insurer, the Extra Protection Cover comes with waiver of premium feature in the event of the total permanent disability of the insured during the policy tenure. In such events of suffering, the policyholder will be exempted from paying future premiums while the cover will still continue. This feature also provides the option to the policyholders to increase their sum assured later in life and also choose various riders like accidental death, critical illness, surgical benefit and so on.

Another key feature is the inbuilt payout accelerator benefit, which promises to pay out 50% of basic sum assured if the insured is diagnosed with a terminal illness. The balance is payable to the nominee after the policyholder's death.

48-hour fund claim campaign by Bharti AXA Life
Every claim is unique in its conditions and therefore, requirements. Lack of a single-window concept, to address confusion and offer expert guidance, often leads to a hassling experience for customers. In order to address this concern, Bharti AXA Life has introduced an innovative and unique service platform with the objective to enhance the experience of customers with regard to the claim process.

The “Claims Assistance Manager” (CAM) offers a personalized service in the claims process.

CAMs would also offer expert knowledge and guidance to enhance customer claims experience. The objective of the proposition is to bring clarity, offer support and provide a logical conclusion to claims. The initiative has been taken across all the branches. CAMs would contact the claimants through SMS, e mails, letters, calls and walk-ins at the branches.

Jyoti Punja, Chief Operating Officer, Bharti AXA Life Insurance, said, “Claim settlement is the moment of truth for any insurance customer. A number of our researches lead us to the conclusion that customers consider claim settlement as a complicated and lengthy process. We are sensitive of the claimant’s loss and expectation from his insurer, and hence, have introduced the Claims Assistance Manager to assist in the multi-step process.”

IRDA penalises Tata-AIG Life Insurance
The Insurance Regulatory and Development Authority (IRDA) has penalised Tata-AIG Life Insurance Company with a penalty of Rs. 49 lakhs for violation of various regulatory norms. According to the IRDA order, Tata-AIG Life has to remit the penalty of Rs. 49 lakh debiting shareholder's account within 15 days.

Lapses were found in various rules with regard to the norms of referrals and preparation of financial statements by Tata AIG. IRDA conducted an inspection in which the violations of the provisions of Insurance Act were found out and the penalties were imposed on Tata AIG. Tata AIG has also violated the provisions of norms while signing referrals arrangement with Non- banking entities. There were also lapses found in the business promotion expenses under the Corporate Agency Guidelines.

Future Generali Insurance has insured ‘Sangarsh, largest Dahi Handi in Thane
Jitendra Awhad is organizing Dahi Handi festival for many years and Future Generali has been a part of this for last 3 years.

Future Generali Insurance has insured the largest Dahi Handi – Jitendra Awhad’s Sangarsh for a value of Rs. 2.55 crores. This policy covers the sets, properties and the equipments along with people participating from fire and allied perils such as earthquake, burglary and terrorism.

K.G. Krishnamoorthy Rao, MD & CEO, Future Generali India Insurance Co. Ltd., said, “Future Generali is proud to be associated with the tallest and the largest Dahi Handi in Thane.

New online term plan iSecure from Bajaj Allianz
Bajaj Alliance, taking leverage of the growing technology, has commenced selling its term plan iSecure using the online platform. Since the term policies are sold online, it saves on the commission to the distributors. The cost savings are passed on to the policyholders by way of lower premiums.

iSecure has several unique features such as lower premiums to the non-smokers, further discount for higher covers, distribution of policy amount on an annual basis with a view to provide regular income to the family etc., The premium paying term ranges from 10-30 years and the policyholders are allowed to alter their premium paymenst frequency during the period.

Aviva India launches Family Income Builder, the Money Back plan
Aviva India has recently announced the launch of a traditional plan - Family Income Builder.

The main features of this product include fixed premium paying term of 12 years. This is basically a money back policy in which the policyholder will be entitled to receive annual payouts amounting to double the annual premium paid, between years 13 and 24 after the expiry of the fixed premium paying term of 12 years. In the event of the sudden death of the life assured during the 12 year period, the future premiums will be waived off. However, if the death takes place in the first year of the policy, the amount payable will be equal to the first premium paid and there will not be doubling of the amount.

The entry age is six years and the upper age limit is 50 years. The minimum premium payable is Rs 40,000 per year, with the maximum premium being capped at Rs 2-5 lakh, depending on the age of the policyholder. Premiums can be paid only in the annual mode.

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