Unique product from Reliance Life

Reliance Life Insurance Company (RLIC), part of the Reliance Anil Dhirubhai Ambani Group, announced the launch of a new unique product - Reliance Life Traditional Investment Insurance Plan - that provides life protection, regular savings with annual guaranteed investment returns and additional accident and health riders.

Mr. Malay Ghosh, Executive Director and President, Reliance Life Insurance, said, “The new plan combines life protection and regular savings with complete transparency and flexibility features and advance guaranteed returns.

The minimum guaranteed accumulation rate would not be less than the savings bank deposit interest rate, as declared by the Reserve Bank of India.”

This is a regular premium plan which offers a guaranteed return announced at the beginning of each financial year during the term of the policy. The accumulation rate for the year
2010-11 is 7.75 per cent a year.

The plan is open for children aged 30 days upto senior citizens of 70 years. It has monthly, quarterly, half-yearly and yearly payment options.

Star Union Dai-ichi’s first year performance

Star Union Dai-ichi Life insurance is planning to double its new premium in 2010-11.

The company began its operations last year and collected Rs.525 crore in new business premium in the first year. The company also intends to start its agency distribution network by adding 5000 agents. They are planning to start the agency model in a limited way.

The company sold its products till now through the bancassurance channel only. It has tie-ups with Bank of India, Union Bank of India and some of the regional rural banks for selling the policies.

The company does not need any capital infusion as it has already Rs.250 crore. 96% of the premium collections are from sale of unit-linked plans.

Bajaj Allianz life’s soaring profit

Bajaj Allianz Life Insurance profit soared to Rs.427 crore for the year 2009-10 compared wih the previous year profit of Rs.41 crore.

Mr. Kamesh Goyal, Country Manager, Allianz and Chief Executive Officer, Bajaj Allianz Life said that this is possible because of control on expenses and improved investment climate.

As on 31st March 2010, investments were up by 95% and the expense ratio was less at 16.5 percent.

Mr Goal also added that they are planning to improve the business without increasing the branches. Now the focus will be on the productivity of the individual branches.

New Business premium growth was at Rs.4451 crore.

Max New york Life ties up with Axis Bank

Mr. RajeshSud, CEO and MD, Max New York Life Insurance told that Max New York Life has tied up with Axis Bank for a 10 year period bancassurance.

The company will use the branch network of Axis Bank to add additional customer base of 20 lakh in the coming 5 years.. It is not an exclusive tie-up as the IRDA permits banks to sell policies of multiple insurers. Axis Bank may focus at selling other life players policies also.

Informed by Ms Shikha Sharma, MD and CEI, Axis Bank.

LIC’s approach for ULIPs and conventional products

LIC is expecting the share of unit-linked insurance products to come down by 5 to 6% this year.

LIC has decided to focus on conventional products and also confidant to increase their share in the total business.

At present this is 35 percent. Mr.D K. Mahrotra, MD, LIC said the ideal proportion would be 60:40 in ULIps and conventional products respectively.He also said, “three years ago ULIPs were driving the whole Industry.

Even for us it was 85-87 percent of the total business. From this level, we came down to around 65-66 per cent last fiscal. The ideal mix I think would be 60-40.”

Aagon Religare plans to treble business plans

Aagon Religare Life insurance plans to treble total premium receipts in 2010-11 to Rs.500 crores. For achieving this, the company is planning to increase its no. of branches and agents. Further plans includes bancasurance model.

The company expects to tie up with one or two commercial banks this fiscal. Their MD, And CEI Mr Rajiv Jamkhedkar told that they would be looking at different sized bank, as they believe that they have a proposition for each type of bank.

Their new business premium for 2009-10 was Rs.130 crores and total premium income was Rs.160 crores.

IRDA’s regulations for ULIPs

To bring better uniform approach from insurers towards certain important parameters for ULIPs, like revival, lapse and surrender of policies, IRDA proposed a slew of regulations for life insurers to protect the interest of the policy holders.

The insurance regulator, feels that there is need for better uniformity in the approach on these key parameters.

IRDA also proposed that the policy holders should have an option to revive or reinstate the policy within five years from the due date of the premium.

They also observed that on surrender charges, insurers are applying different charges for surrender value payment to the insured.

IRDA has proposed that surrender charges should not exceed the new specified limits First year 12.5%, for the policy less than 10 years and 15% for above 10 years, second year 10%and 12.5%, third year 7.5% and 10% and fifth year 2.5 and 5% respectively.

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