Tata AIA Life Insurance announces MahaLife Magic plan
Keeping in view the basic priority need of an individual being income protection, Tata AIA Life has launched a new insurance plan in line with the new IRDA guidelines. Tata AIA Life Insurance MahaLife Magic, a simple offering that provides income protection along with attractive returns. These plans also offer additional benefits such as liquidity and flexibility of plan duration.

“Our research shows that customers have varying expectations from their insurance product; be it life protection over longer durations or attractive returns to fulfill their long term goals. Tata AIA Life Insurance MahaLife Magic is a limited pay plan which provides our customer with dual benefits of protection, and growth. In addition, it helps in building up of customer’s target corpus through the magic of compounding,” said Shivdutt Das, Vice President, Product Development, Tata AIA Life.

Insurance processes made simpler – Tata AIA Life
Tata AIA Life has come out with new processes towards making life Insurance “easy to buy’ and ‘easy to sell’. These processes also aim at increasing the productivity of the sales force of the company and also its agency force.  

Sachin Joglekar, Sr. Vice President & Chief Agency Officer, Tata AIA Life, said, “Life Insurance plays a crucial role in providing Income protection to individuals. Therefore, it is imperative to make Life Insurance solutions easier for the customers and the agents to understand, thereby making buy and sell of Life Insurance easier. Our new processes shall address this critical need.” 

The Company has launched ‘Express 50’ initiative, which makes the process of buying life insurance hassle-free for the Company’s target group of customers. This initiative shall enable customers to buy higher protection cover faster by optimizing the requirements of documents through simpler underwriting norms.

The Company has also launched ‘Life 365: Selling for Success’, an everyday handbook for the sales force which will help them guide customers towards procuring the right life insurance plan. This includes all pertinent information such as product characteristics, premium tables, and marketing tools.

Max Life may shrink its margins in Jan-Mar quarter
Due to the new rules introduced by IRDA (Insurance Regulatory and Development Authority), Max Life Insurance Co Ltd said that it is likely to shrink in its margins for the January to March 2014 quarter, according to a media report.

The new rules of IRDA aims to reduce costs for policy holders, raise returns and increases the cover after death.

Max Life is aiming for 12%-15% growth in new premium for 2013-14. In the last three quarters, it had registered about 13% growth in business, the report added.

Quick View Business Discovery Platform – HDFC Life
HDFC Life leverages QlikView Business Discovery Platform for strategic decision making across the enterprise

HDFC Life is using the QlikView Business Discovery platform to successfully increase customer satisfaction – by reducing response times by 50 percent, accelerate business growth, and provide its senior management with a strategic decision making model.

Using QlikView, HDFC Life is also to draw insights from data of its customers as well as sales performance to predict for instance the next wave of customer lifecycle management and determine what their most effective customer engagement strategies are.

HDFC Life deploys QlikView to strategic decision makers in key business functions in under four weeks – a testament to the solution’s ease of use and quick time to value advantage over traditional BI tools. QlikView is also available on mobile devices to these users, providing decision makers at HDFC Life with dashboards at their fingertips to measure and analyze critical data anytime and anywhere. For example, they are able to analyze the performance and efficiencies of channel partners spread across India.

Regular Income Insurance Plans from HDFC LIfe
HDFC has launched a new traditional plan HDFC Super Income Plan along with its other 11 traditional plan and 10 ULIPS which are compliant with the new guidelines of IRDA. These new bunch of plans aims at enhancing the company’s product portfolio.

HDFC Life Super Income is a Regular Income Plan which along with protection coverage provides guaranteed regular income for a payout period of 8,10,12 or 15 years as per the plan option and also sump-sum payout at the time of maturity. the following benefits to the customer:

This plan also gives flexibility to the customer tochoose from 6 plan options with different term combinations. Each plan option offers a different level of guaranteed regular income defined as a percentage of “Sum Assured on Maturity”. This Sum Assured on maturity is chosen by customer at policy inception, allowing customer to define his/her own benefits.

This plan is ideal for individuals who want to save for a limited term and need regular income at their disposal in future.

Dream comes to Reality – Bharti Axa
Bharti AXA Life Insurance today launched a new advertisement campaign around the theme “Secure my Dream” for their flagship product “Bharti AXA Life Secure Savings Plan”.

The campaign targets individuals who are planning for the changing life stage needs and are looking for financial instruments that assure them guaranteed returns thereby enabling them to realize their dreams. The film revolves around the disappointment one faces when the investments returns are less than what was expected resulting in compromises one is forced to make with regards to their dreams.

Announcing the launch, Saujanya Shrivastava, Chief Marketing Officer, Bharti AXA Life Insurance said, “Consumers want to be prepared for different life stages that bring with it increased responsibilities. They want to invest in the appropriate financial tools that empower them to meet their financial goals and fulfill their dreams.

"Based on this consumer insight and extensive research, our new ad campaign portrays Bharti AXA Life’s Secure Savings plan as an ideal product that offers up to 10% guaranteed additions on cumulative base premiums paid. We are confident that our new campaign will resonate with our customers aspiring for ‘Protection’ and ‘Savings’ at every life stage.”

Adding to the creative angle Bobby Pawar, Creative Head of Publicis said, “People are not just expecting returns on their investments but are hoping to fulfill their dreams. Very often the returns do not live up to those expectations and that leads to disappointment. This has been brought alive in the TVC through a middle aged couple who isn’t looking at life as winding down but views it as a new innings, aspiring for new experiences and a chance to fulfill their unfinished dreams. In this film we have a lovely 50 something couple who were not able to have their big wedding. And they now want to fulfill their dream of a big fat wedding party on their 25th wedding anniversary but are left disappointed and shocked when they don't get what they had expected.”

Taking the proposition forward Bharti AXA Life also introduces a robust digital campaign called “Securemydream.com”. It is a unique platform to enable customers to ascertain what it would take by way of investments to attain their dreams. Participants can log on to the website, www.securemydream.com, fill in their details and submit their dream and a tagline to go along with it. One lucky winner will get his/her dream fulfilled by Bharti AXA Life. A special jury has been set up by Bharti AXA Life to ascertain the winner.

Customer-friendly life insurance plans from ING Vysya
ING Vysya Life Insurance Company Ltd, has revamped its product portfolio with more customer-centricity and compliant with the new IRDA product guidelines. These plans will offer long-term benefits to the customers. ING Vysya has named its new product portfolio as the “New Generation Plans from ING Life Insurance”. The company is offering thirteen (13) products under Individual Insurance Category and three (3) in the Group Insurance Category.

As part of its product portfolio, ING Life Insurance has introduced “The Life Maker”. This would enable the customers to make their financial planning effectively based on their long term financial goals. Based on the needs of the individual life stages, the company has launched its insurance solutions such as Protection Solutions; Savings and Investments Solutions; Retirement and Pension Solutions etc.,

Canara HSBC OBC Life launches Smart Stage Money Back Plan
Canara HSBC Oriental Bank of Commerce Life Insurance has announced the launch of its Smart Stage Money Back Pla. This is a traditional participating product, which provides regular guaranteed money back, guaranteed maturity benefit plus all added bonuses to the customer during the term of the policy along with financial protection to the family by way of life cover.

The Smart Stage Money Back is an ideal plan to be financially ready for a child's education and other related needs or fulfilling one’s aspirational needs like purchasing a house or a family vacation. The plan provides three guaranteed money back payouts of 15% of the sum assured each at the end of 4th, 8thand 12th policy year and a guaranteed maturity benefit equal to 55% of the sum assured at the end of the policy term. All benefits in this plan are tax free as per prevailing income tax laws. The product also provides family protection for 15 years through payout of death benefit and offers limited payment term of 11 years.

IRDA to collect service taxes from Insurers
IRDA will charge service tax from industry players on providing services such registration and renewal. As per the IRDA Notification, the regulator is required to collect service tax from its insurance companies, brokers and agents.

TPAs, insurance repositories, web aggregators, referral entities and surveyors too will have to pay tax for availing services like grant of registration, licences, renewals and so on. Service receivers are required to add service tax component, as applicable, to the fee while making remittances to the authority from January 1, it added.

The proposals were approved by Irda at its meeting held yesterday. However, it did not disclose the rate of service tax applicable to individual categories.

At present, the rate of Service Tax is 12 per cent. Life insurance policyholders pay service tax at the rate of 3 per cent for the first year premium. For subsequent years it is 1.5 per cent. At the same time, availing of the full cenvat credit is allowed.

More Death Claims rejected by Private Insurers
According to a report by sector regulator, the Insurance Regulatory and Development Authority, private sector insurers rejected 7.85% of claims while LIC rejected only 1.12% of claims.

The reason for the high rejection rate in some areas, according to the private insurers, are the early claims arising from frauds.

While Aviva rejected claims worth Rs 35 crore last fiscal, Birla Sun Life rejected claims worthRs 64.72 crore and Bajaj AllianzRs 62.73 crore.

According to Amitabh Chaudhry, MD and CEO at HDFC Life,b"It is certain that companies will do some investigation for early claims." He also that if it is found on investigation that there has been manipulation, the claims are rejected. Rejections are mainly on the grounds of suppression of facts such as medical history.

In 2012-13, life insurance companies settled 8.46 lakh claims on individual policies with a total payout of Rs 9,370 crore. The industry repudiated 18,485 claims for an amount of Rs 568.42 crore. The number of claims pending was 12,267 worth Rs 318.24 crore.

Settlement ratio of private sector insurers last fiscal dropped to 88.65% from 89.34% in the previous year. In the case of LIC, the largest player in the industry, it improved to 97.73% last fiscal from 97.42% in 2011-12. The percentage of repudiations dropped to 1.12% from 1.30%.

Source: Economic Times

Reliance Life Insurance plans to launch to launch nine new products
Reliance Life Insurance plans to launch nine products, which are complied with the new product guidelines, by end January 2014.

In a press released by Anup Rau, CEO, Reliance Life Insurance, the company has received approvals for 29 plans from IRDA out of which they have already launched 20 plans and the other 9 products would be launched by this month end. The new products are traditional plans aiming to enhance protection and long-term savings. The plans include both individual and group insurance.

Majority of employees prefer PSUs for buying insurance- Assocham
According to a study by Assocham, around 67 per cent of salaried employees prefer public sector companies for buying an insurance policy as they feel such institutions are more credible and secure. Only 25 per cent salaried people prefer private firms for insurance purposes,

Life Insurance Corporation (LIC), maintains the highest share in selling insurance products as against the private insurers.

As far as mutual funds are concerned, the salaried employees prefer private sector companies. According to the Assocham report, 60 per cent of salaried employees prefer private sector for mutual fund while only 20 per cent opt for public sector banks.

Shriram Life launches seven new products
Shriram Life Insurance Company, has launched seven new Life Insurance products in the market. Out of these seven plans, four plans are market-linked and the other three are traditional products. These new plans are compliant with new guidelines issued by the Insurance Regulatory and Development Authority.

The new products are more customer friendly in terms of higher surrender values and better death benefits. With the launch of new products, the total number of products being offered by the company has gone up to 13.

PNB Metlife launches 16 products
Compliant with the new product plans from IRDA, PNB Metlife India Insurance has launched 16 life insurance products. These new plans include both traditional and ULIP policies such are intended to meet the various needs of policy buyers at their different life stages such as protection, tax savings and wealth creation. These plans cater to all segments of customers and meet their needs at the respective life stage.

Life insurers grapple with rise in frauds
Insurance frauds are on the rise and a number of life insurance companies are reporting a sharp increase in cases of fraud and misrepresentation of facts with respect to selling of the product. The number of unauthorized agents purporting to represent companies has also risen exponentially.

For instance, during the first half of 2013, nearly 50% of customer complaints received by PNB MetLife India was linked to fraud by unauthorized agents.

According to industry data, complaints on unfair business practices in the life insurance space were pegged at 1,68,482 for 2012-13.

Many life insurance companies are now on an advisory overdrive, cautioning customers to steer clear of fraudulent agents and mis-selling. A recent email from Aegon Religare to its customers asks them to watch out for bogus calls. The email also cautions customers to stay away from offers that sound too good to be true, such as "offers of immediate bonus/gift along with a new policy, asking you to lapse your policy and transfer the benefits to another policy and offering unbelievable rates of return".

Some companies that have experienced such frauds are now putting firewalls in place. HDFC Life has initiated a stringent pre-logging verification wherein executives from the company call customers to give full details of the product they have chosen and also verify other information from them.

ICICI Prudential Life Insurance has shut down telecalling channels that were found to be indulging in unfair trade practices.

Others like PNB MetLife are advocating that the IRDA launch a repository of employees and agents who have been accused of fraud.

Source: Economic Times

Insurance broking model compulsory for banks - IRDA
The Insurance Regulatory and Development Authority may make the broking model for banks compulsory soon if significant traction is not achieved in Insurance penetration.

IRDA chairman T S Vijayan had earlier indicated that the regulator is in favour of banks acting as 'brokers'. According to Mr. Vijayan, banks are selling insurance products to their customers only. So, they should act as brokers representing multiple insurance companies giving the best option to the customer rather than trying to sell a particular company's product(s).

The regulator had issued draft guidelines to allow banks to act as brokers and sell products of more than one insurer in July last year.

Subsequently in November, the RBI decided to permit banks to undertake insurance broking business departmentally through draft guidelines.

Source: Economic Times

Misleading Advertisements by LIC – Show Cause Notice from IRDA
IRDA has issued show cause notice to Life Insurance Corporation of India for allegedly misleading the public through advertisement which ends with a catch line 'last time to buy your favourite product'.

LIC had planned to withdraw as many as 34 plans which included Jeevan Tarang, , jeevan Anand' and 'Bima Bachat', from January 1 consequent to the new policy guidelines from IRDA effective from January 2014. With a view to drive the old products, LIC had issued such an advertising highlighting that ‘these are the favourite products to customers’ which is misleading.

LIC has sought for a month’s time to respond to the show cause notice.

Birla Sun Life re-launches five life insurance products
Birla Sun Life Insurance has re-launched five life insurance plans which are compliant with the new product guidelines. The Plan suite includes three non-participating market-linked insurance plans, one participating whole life plan and one traditional participating endowment plan. These products are designed to emphasise the fundamental propositions of life insurance - protection from uncertainty and long term savings.

In line with the revised product guidelines, these plans are focused on providing enhanced security to savings, higher life cover, better surrender values and improved disclosures.

Source: Economic Times

Money Maxima from Tata AIA Life
Tata AIA Life has launched a bouquet of solutions, compliant with new IRDA guidelines applicable from this month.

Money Maxima is a long-term plan which is compliant with new IRDA guidelines. This plan has the flexibility of plan duration with dual benefits of both guaranteed and non-guaranteed returns.

Super Money Back Policy from Reliance Life Insurance
Reliance Life Insurance has launched Super Money Back Plan. This is a traditional non-participating plan that offers periodic guaranteed money back pay-outs and a monthly income along with life cover.

Super Money Back Plan provides a guaranteed regular income and security for the family. It offers guaranteed money back benefits every five years throughout the policy period along with an increasing monthly income that starts after the premium payment term.

The guaranteed money back payouts start from the fifth year and are paid every five years for the policy term. At the end of the premium payment term of 25 years, the policy holder enjoys a guaranteed increasing regular monthly income till the end of the policy term.

Super Money back Plan also provides life Insurance cover for the full policy term by paying premiums for just half of the selected policy tenure. The plan also provides guaranteed loyalty addition at the end of premium payment term and guaranteed maturity benefits at the end of the policy term. It also offers regular monthly pay-out after the end of premium payment term that increases every year at three per cent and is paid till maturity or death of the life insured, whichever is earlier.

Source: Economic Times

Comply with anti-money laundering norms: Irda to LIC, ICICI Prudential
IRDA, the Insurance regulator has directed Life Insurance Corporation and ICICI Prudential Life Insurance to comply with Anti-Money Laundering guidelines as they were found to be in violation of various norms. As per the directives, LIC has to put in place the checks and balances to comply with AML provisions. According to IRDA, LIC does not have systems to find out and monitor premium payments made by a person with multiple cash transactions aggregating to over Rs. 50,000 in cash.

LIC also has to set in systems and controls for ensuring valid address proof and do away with the declaration by the Dos for address proof.

Similarly, ICICI Pru was also directed to closely monitor its branches and put in place its controls with regard to ID proof / address proof and income proof and identify tampered documents in these respects.

Archives | Top