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Volume 10, Issue 2, February 2014
 


Policy Revival Made Easy - HSBC Oriental Bank of Commerce Life
Canara HSBC Oriental Bank of Commerce Life Insurance Company CHOICe, is a joint venture between public sector banks - Canara Bank and Oriental Bank of Commerce - and HSBC Insurance (Asia Pacific) Holdings, the Asian insurance arm of one of the world's largest banking and financial services groups - HSBC.

Customers whose policies have lapsed can now revive their policies through this online initiative. This helps the customers to reinstate a lapsed policy and pay their premium online and provides faster and process-friendly services to customers.

e-Lifetime Income Plan - Kotak Life Insurance
Kotak Life Insurance has launched e-Life time Income Plan keeping I n mind the increasing longevity of the Indian population. This plan comes with a unique feature of the option to choose an annuitant (the beneficiary) other than self who can be any close blood relative or spouse apart from self. This plan also targets those youth population who are away in foreign countries to pursue their career opportunities and also the Non-Resident Indians enabling them to secure a regular income for their family.  

The one time premium paid by the proposer is paid out to the annuitant at the interval chosen – monthly, quarterly, half yearly or yearly at the predefined annuity rate promised at the time of purchase.

The product has the choice of four income options. They are:. 1. Lifetime Income offering regular stream of income throughout the annuitant’s life. 2. Lifetime income with cash back offering regular stream of income throughout the annuitant’s life and on death of the annuitant, the purchase price will be returned to the nominee. 3. Lifetime income with a term guarantee offering regular stream of income for the guaranteed period irrespective of the death of the annuitant during the guaranteed period. 4. Last survivor lifetime income offering regular stream of income throughout the annuitant’s life and after death of the annuitant to the surviving spouse of the annuitant.

The plan is available for online purchase at www.insurance.kotak.com

New TV Ads from Max Life Insurance
Max Life Insurance has launched three new TV advertisements with the tagline “Policy dene ke baad humara rishta khatam nahi, shuru hota hai” which would emphasize on the vision-mission of Max Life Insurance on quality of advice, honesty and transparency in services.

During the launch of the Ad, Anisha Motwani, Director and Chief Marketing Officer, Max Life Insurance said, “Amongst all the financial instruments, life insurance has the longest relationship term with a customer. In fact, the real relationship with the customer only start taking shape after the policy is bought, and does not end with a transaction being completed.

Through this campaign Max Life Insurance has taken the brand philosophy of "Sachchi Advice" to the next level by highlighting on their commitment towards the customers.

Future Generali India Life Obtains ISO certification
Future Generali India Life Insurance Company Limited has received ISO 9001-2008 Certification for its Investment Processes.

ISO 9001:2008 is the internationally recognized standard for Quality Management Systems (QMS). It prescribes systematic control of business activities to ensure that the needs and expectations of customers are met. 

To qualify for ISO 9001:2008 certifications, Future Generali had to meet rigorous standards in its investment practices, investment documentation review, pre-audit, initial assessment and clearance of all non-conformities. The process which went on for about three months culminated in a comprehensive certification audit by BSI (British Standards Institution).

Source: Indiainfoline.com

IRDA proposes draft norms on micro insurance plans
The Insurance Regulatory and Development Authority (IRDA) has issued a revised set of proposals on micro insurance products. Comments and Feedbacks are invited from the Private insurers based on which the final regulations will be framed.

The new guidelines shall become effective on the date of their publication in the official gazette.

The following are the recommendations in the draft norms:

  • Partial withdrawals may be permitted from the second policy year onwards, subject to ensuring maintenance of a minimum balance equivalent to one annual premium in the policy account.
  • An insurer may sign a deed of agreement with a person or entity whose micro insurance agency agreement was terminated (other than on grounds of fraud or misconduct) only after the expiry of three months. 
  • No insurer will be allowed to re-appoint a micro insurance agent whose services were ended on grounds of fraud or misconduct.
  • After any such termination of an agent’s services, the policies of the agent may be allotted to another of the same insurer, after getting the latter’s consent.
  • A micro insurance agent may work with One Life Insurance Company and one General Insurance Company. In addition to this a Micro Insurance Agent may also work with Agriculture Insurance Company of India Ltd for distributing micro insurance products of Crop Insurance and with any one of the standalone life insurance companies registered with the Authority for distribution of health insurance products of the respective standalone health insurance company.
  • Insurers are accountable to the premium acknowledgements issued by their respective Micro Insurance Agents. 

Insurers to pay out dues to policyholders on time: IRDA
On account of huge amount lying unclaimed amounts with the insurers, The Insurance Regulatory and Development Authority (IRDA) has directed the insurance companies to make timely payment of claims to the policyholders. According to a circular from IRDA, Rs 4,865 crore remained unclaimed with the insurers as of 2012-13 as against Rs. 1,945.93 crore in 2010-11 and Rs 1,372.64 crore in 2009-10. IRDA also directed the insurers to keep the policyholders informed about the maturity details by SMS alerts or e mail so that the unclaimed amounts could be minimized.

The circular comes into force from April 1, 2014, IRDA said.

Mahalife Gold from Tata AIA
Mahalife Gold launched by Tata AIA Life Insurance Company Limited is a complete plan with chole life cover up to 85 years . The plan provides insurance cover and assured benefits to covering both short-term and long term needs of life. The plan can be bought even from age zero. This means that if one buys this policy for his child he has to pay premiums only for the first 15 years, after which the child gets a guaranteed annual income as well as life coverage till the age 85 years. The other key benefits includes 5.5% Guaranteed Annual Coupons starting from 10th policy anniversary till maturity, Non-Guaranteed Cash Dividends annually from 6th policy anniversary till maturity , Lump sum payment at maturity in addition to the regular income and Protection with a life cover for the entire term of the policy.

The plan also provides tax benefits under section 80C and 10 (10D) of Income Tax Act 1961.

IRDA directs SBI Life to refund Rs. 275 crores to policyholders
IRDA has ordered SBI Life Insurance Company to refund Rs. 275.29 crores of premium collected from the policyholders violating the IRDA norms. According to the IRDA directive, the refund has to be made within six months.

The refund pertains to polices issued during 2008-09, 2009-10 and 2010-11. According to the order, the premium collected in more on lines of a single premium than two yearly regular premiums against the approved file and use features.

The order was issued after an enquiry that revealed SBI Life Insurance was charging the second year premium along with the first year premium on its Dhanaraksha Plus Limited Premium Paying Term (LPPT), a group insurance policy.

As per sources, SBI Life Insurance plans to go on appeal against the IRDA order for refund of Rs. 275 crores to the policy holders.

Mix of agents and online sales Term Plans
Online term plans are launched with a view to help the customers as they offer lower premiums due to absence of agents. However, customers find it difficult to buy the policies on their own and hence many insurers has started selling online term plans through their agents as they believe that buying online is difficult for those who are not comfortable navigating the internet.

Hence the assistance of the agents is taken in buying an online plan. This new concept is named after “assisted online sales” which has become an accepted industry practice. However, this would cost more as against the online purchase of term plans. Given this scenario, some insurers are offering this (assisted online purchase) as an option (other than direct purchase), and some are offering online plans only through agents.

HDFC Life offers the choice of 'assisted purchase'. Bharti AXA Life’s eProtect cannot be sold through agents. Spokespersons for Aegon Religare, Aviva Life, Bajaj Allianz Life and ICICI Prudential Life said they do not sell online term plans through agents, though insurance customers as well as agents say some of these insurers allow sale of online plans through agents.

Life insurers line up 500 schemes for launch in 2014
The Insurance Regulatory and Development Authority (IRDA) had issued new guidelines to make policies more customer-friendly. The new guidelines have introduced three broad categories of products - traditional insurance plans, variable insurance plans (VIPs) and unit-linked insurance plans (ULIPs). Based on the new guidelines most of the insurers have already redesigned their products and also obtained necessary approvals.

The Regulator has cleared around 500 new insurance plans which will hit the market in the next couple of months.

The state Insurer LIC has already stopped selling several of its insurance plans including Jeevan Anand, Jeevan Madhur and Jeevan Salar and planned to bring out a bouquet of plans to align with the new product guidelines of IRDA. Among the private insurers, reliance has come out with over two dozen new insurance schemes in the coming three months which would include both protection and retirement plans. While Aviva Life Insurance has already launched 13 products that are compliant with the new traditional product guidelines, Max Life Insurance has plans to launch four new products along with its 13 products launched recently. Bajaj Allianz Life Insurance has received approvals for its individual and group insurance plans under the new product guidelines and planned to launch three new insurance schemes and HDFC plans to make available 21 new products which are compliant with the new guidelines.

Life Insurance Corporation of India launched LIC Mobile app for Windows Phone
Life Insurance Corporations goes Mobile

Taking leverage on the growing internet technology, Life Insurance Corporation of India (LIC) has launched its windows phone app recently.

With the wide spread agents force of LIC who are the largest in the country needs to be connected to the data and hence is this new application initiative from LIC. This application gives the following features.

  • Get details of live plans
  • Get notifications for key news and events
  • Calculate and compare premium of plans
  • Pay premium online
  • Features for Agents : Profile and Business figures, Premium Calendar,  Customer Directory, Notifications for – Premium due, Lapsed policies, Customer birthdays and Circulars
  • Features for Customers : Policy Information, Premium calendar, Online Premium Payment, Branch Locators, Notifications for – Premium due,  Matured and Lapsed policies, Survival benefits due.

Source: wpcyte.com

Waiver on interest: Policy revival drive by Bajaj Allianz Life
Bajaj Allianz Life Insurance is running a special revival campaign which started January 18th and expected to run up to 31st March 2014 enables the policyholders to revive their lapsed policies. The scheme offers 50% waiver of interest on tradition policies. The scheme also provides simplified “declaration of good health” form and waiver of medical examination for policyholders up to 55 years.

IRDA eases norms to reduce agent attrition
As per IRDA Reports, the life insurance industry saw a 10 per cent drop in the number of individual agents during 2012-13. The number declined from 23.58 lakh as on March 31, 2012, to 21.22 lakh as on March 31, 2013.

With a view to curtail the sharp attrition rate of the agency force, the Insurance Regulator, IRDA plans to revise its guidelines on minimum percentage of policies that agents have to renew to maintain a license. In effect, the regulator has decided to remove minimum persistency criteria ((the minimum number of policies sold by agents that have to be renewed), and the same is left with the respective insurance company to set the persistency criteria.

As a major initiative towards this objective, the regulator had reduced the cut-off percententage in the pre-recruitment examination from 50% to 35%. The Regulator also had waived fresh training for agents whose licenses have lapsed. So far, 6,188 agents holding lapsed licences have got their licences renewed and 29,252 are in the process of renewing their lapsed licences.

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