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Volume 6, Issue 11, November 2010
 


Aviva Life adds capital for expansion

Aviva Life Insurance increased their capital base by adding Rs.116 crore for expansion of business. This will be helpful in company’s growth plans and focusing more on renewal premiums and to keep buffer for solvency requirements. Mr. TR Ramachandran, MD and CEO, Aviva India said, "Aviva has a long term commitment to India and the additional capital infusion of Rs 116 crore will allow us to execute our growth plans for 2010-11, Our objective is to be among the country's leading life insurers through a quality business model, focused on sustainable growth”. Dabur Group and Aviva of the UK have 74:26 percent in their JV. The company so far sold over a million policies and Rs.328.1 crore as the first premium income during the first six months of the current fiscal year.

Kotak Life launched online term insurance Product

Kotak Mahindra Old Mutual Life Insurance came out with its online term insurance product. Compared to other term insurance cover sold by company’s distributors and agents, it is 10% cheaper as expenses to reach the customer and sell the product do not arise. The procedure for buying is same like other companies’ online products. The difference is ICICI Prulife and Aegon Religare Life have only yearly payment options whereas Kotak Life has monthly, quarterly, half-yearly and yearly options of payment. The maximum age at maturity is 70 years in Kotak life.

Reliance Life’s unique three-in-one ULIP

Reliance Life Insurance introduced a new ULIP plan, which gives the benefits of regular savings with better protection in addition to market-linked returns. Named as Reliance Life Insurance Classic Plan, the policy is for the age group 7 to 65 years. The company said,
"The unique proposition of Reliance Life Insurance Classic Plan is that it offers flexibility and triple benefit of savings, insurance and investment - all in one single plan," The policy also admits liquidity like part withdrawals and loans.

Mr. Malay Ghosh, ED and President Reliance Life said, "The new ULIP offers multiple benefits and protection - from helping policyholders plan their finances wisely at different stages of life, to providing risk cover on loss of life”. The flexibility offered to policyholders by the company allows liquidity through partial withdrawals after fifth policy anniversary, loan after the completion of second policy year and top-up option to increase regular savings".
There are two options for premium payments. Single Premium and regular option.

LIC Issues pre-paid cards

LIC’s card division is permitted to issue pre-paid cards. Policy benefits of the policy holders will be credited in this card. This will create new business to LIC of India. According to RBI banks may issue pre-paid instruments to LIC for one-time or periodical payments to Customers. Mr. SC Singh, chief executive, LIC Cards informed that the Corporation is seeing this as a new business opportunity. He also said “There may be people who are more comfortable with using a pre-paid instrument. This will also aid financial inclusion as it will allow payment cards to be issued to those without bank accounts and who are not ‘cardable’ at present”.

LIC started its credit card business in March 2009, which is managed by Corporation Bank, and the payment service provider is VISA

New ULIP from HDFC Life

HDFC Life launched new ULIP product named ProGrowth Maximiser. This is a single premium product with three options for investment i.e. Highest NAV guarantee, Capital Guarantee and Free Asset Allocation .Mr.Amitabh Chaudhry, MD& CEO, HDFC Life said that they try to understand their customers and design the products according to their need. ProGrowth Maximiser is one such product, which provides the customers to choose three different investment options according to their needs and risk taking. It has limited underwriting and fully underwritten versions. Minimum premium is Rs.50000/- and no maximum limit and the policy term is 10 years.

Bharti AXA Life welcomes Variable Insurance Products

Bharti AXA Life feels that the regulations for Variable insurance products are a welcome move for the industry. It allows a new space for innovation of new products. Both the participatory and unit linked products are balanced equally. Customers who wanted to take traditional policy can go for participatory plans till they are comfortable with ULIPs.

Life Insurance Industry reports drop in renewal premium income

For the first time in the first half of the current financial year the life insurance industry reported drop in the renewal premium compared to the previous year same period.
Mr. SB Mathur, CE of the Life Insurance Council said that this is a marginal drop seen in the ULIP plans. But traditional products will compensate this. The drop may be mainly due to high level of single-premium products, discontinuation of policies and so on.

Ask Apply Get’ fast and friendly process from IndiaFirst Life Insurance

MD and CEO of IndiaFirst Life Insurance Dr. P. Nandagopa while launching their invocative process for insuring oneself without the hassle of delay and anxiety said , “This unique process will redefine the way insurance is bought and sold in India. AAG is a testimony of our constant endeavor to provide our customers with innovative and need based solutions”.
The process is named ‘ Ask Apply Get’ (AAG) by which customers can obtain insurance product from any of their JV partner bank, Bank of Baroda and Andhra Bank. The two banks have 4500 branches across 1000 cities in the country. Dr. Nandagopal further said that traditionally insurance selling is a push method and India First Life is trying to change it to pull method. In AAG customer has to submit his filled proposal form with premium cheque at the counter of the bank and after ‘completing the call from call center he can walk out with his policy documents. Presently AAG is available on their Smart Save Plan and Young India Plan, but soon all their products will be available through this process

New ULIPs from SBI Life

SBI Life plans to introduce three ULIPs to increase their ULIP portfolio. With these 3 plans the number of ULIPs offered by them comes to six. After the launch SBI Life will have the largest portfolio of ULIP among others. Mr. Sanjeev Pujari appointed Actuary of SBI Life said
“We had filed for six ULIPs almost at the same time. While we have launched three of them, the other three are awaiting IRDA approval. We will soon launch the products”. One product is the child category; one for the elite group and the third is a low cost plan. In the first half of this financial year SBI Life becomes the largest private sector insurer with total collection in new business premium amounting to Rs.3172 crore.

ICICI Prudential Life to continue with IIRM

ICICI Prudential Life and the Institute of Insurance and Risk Management (IIRM) will continue to work together for 3 more years, which will help the IIRM to offer programmes in Insurance sector. The course will help the students to equip themselves to manage their roles in the demanding business environment. The IIRM Managing Director, Mr. Vepa Kamesham said, “Our partnership with ICICI Prudential Life Insurance has also helped to structure the course to suit the current day requirements. The practical experience they acquire during the
one-year course enables them to emerge as successful managers”. MD and CEO of ICICI Prulife Mr. Sandeep Bakshi said that the industry required professional with complete understanding of the industry, which is undergoing several changes.

IDBI Federal Life to launch more traditional products

IDBI Federal Life intends to increase the share of traditional products. It expects a 35% share in its total premium portfolio in the coming years. At present the traditional products occupy only 15 to 20%. 80% is occupied by ULIPs. The company is now focusing on total premium collections to reach 70% growth in the current financial year. Mr. Srivastava, CIO, IDBI Federal Life, ““We have witnessed a 37 per cent rise in new premium collections during the first six months of the current fiscal at Rs 197 crore as on September. We are hopeful of achieving almost similar growth witnessed last year, at about 70 per cent by the end of this fiscal,” Before the end of this year the company plans to launch new products both ULIP and traditional segments.

Aviva Life Insurance renew tie-up with Basix Group

Aviva Life Insurance renewed their existing contract with Basix group upto October 2012 for providing micro insurance cover. So far they have achieved the target of providing cover to three million people in rural areas with their products “Grameen Suraksha” and “Sangh Samruddhi.” . Both were partners in the past eight years. About 14000 families were benefited with claims-related financial support amounting to Rs.22 crore.

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