MetLife’s new ULIP

MetLife India has come out with a ULIP plan named ‘Met Smart Platinum’, its first ULIP plan in accordance with the new guidelines. The policy holder has the flexibility to change their option based on their financial and protection needs. It has a special feature called ‘event based auto-rebalancing’, which ensures better risk management in addition to optimizing the returns. The customer can decide their option to allocate fund between a high risk fund (Flexi Cap) and a low risk fund (Protector II).

Star Union Dai-ichi Life turns traditional

Star Union Dai-ichi Life Insurance has launched a new product named ‘Defined Benefit Endowment Plan’. This is a traditional endowment pension product, which ensures regular tax free monthly benefit for 15 years. It also combines life protection and regular savings with flexibility to plan. The plan offers payment terms of 5 to 20 years with yearly, half yearly, quarterly or monthly with goodwill terminal benefit.

As the new regulations from IRDA for ULIPs may hit the ULIP sales, the company is now focusing on traditional plans. So far 44% of the premium collections is from the unit-linked pension plans. Mr. Kamalji Sahay, Managing Director and CEO of the company feel that the ULIPs sales may come down from the present 96 percent to 65 percent by March 2011. The company also introduced two redesigned ULIPs according to the new IRDA guidelines

ING introduce simple ULIPs

In its tenth year ING Life India introduced two new ULIPs, ING Uttam Jeevan and ING Uttam Jeevan SP which is a single premium product. Both are as per new IRDA guidelines focusing on investment and protection needs of the customers.

Speaking at the launch, Rahul Agarwal, Chief Distribution Officer said, “I am delighted to announce the new ULIPs, Uttam Jeevan and Uttam Jeevan SP. Both these products have been designed keeping in mind our customers need for investment and protection. These are simple products, which will appeal to our customers across categories, especially for those who are new to the world of ULIP. They are easy to understand and buy.”

Both products are for all categories of customers including the first time ULIP customers. Annual minimum premium for ING Uttam Jeevan is Rs.24000/- and it is Rs.48000/- for Uttam Jeevan SP. They assure long term investment solutions alongwith life cover, with a 5% increase on sum assured year-on-year and permit top-up of minimum Rs.2000/- on premium.

LIC’s impressive performance

LIC Eastern Zone had achieved 130% growth amounting to Rs.1840 crore in the first premium income upto 15th August 2010. During 2009-10 LIC achieved a total premium income of Rs.185986 crore and the gross was at Rs.298721 crore. Last financial year LIC settled about 2.11 crore claims totaling to Rs.53654 crore. They have also collected Rs.179079 from wealth Plus policies.

LIC’s new ULIP

LIC of India introduced a new ULIP named ‘Endowment Plus’. After the new guidelines LIC launched its first ULIP named ‘Pension Plus’ earlier. This is the second one.

Endowment Plus is for the people aged between 7 and 60 years. The minimum premium per year varies from Rs.20000 to Rs.30000 based on the mode of payment. In addition the plan offers risk cover based on the annual premium with a policy term between 1- to 20 years. Customers can choose from four fund options and they can also change their options every year. After 3 years loan can be availed upto 30% of the fund value of the policy holder.

IDBI Federal Life insurance launches innovative plans

IDBI Federal Life Insurance opened its new branch at Madurai. According to Mr. G.V. Nageswara Rao, MD and CEO, IDBI Federal Life Insurance ‘Since March 2008 the company has sold over 2.13 lakh policies amounting to Rs.9819 crore in sum assured.’ They have 1430 branches through their partner banks and target to increase their base by adding 15000 distributors/agents in this financial year. The company introduced a new product called Wealthsurance Milestone Plan. This is customized to individual needs covering life and 17 major deceases. It has also launched another Group Life plan named Loansurance in which customer can cover their borrowers whether individual or business people against any default.

Pension scheme for unorganized sector

Union Finance Minister Mr. Pranab Mukherjee launched the pension scheme for the unorganized Section named “ Swavalamban”, and issued PRAN Cards to a few members. LIC is the Facilitator for this scheme, which is administered by pension Fund Regulatory, and Development Authority. This scheme will cover the unorganized sector from 60 years.

Members of this sector shall be in the age group of 18 to 55 with minimum contribution of Rs.100/- and maximum of Rs.1000/-. Government contribution will be Rs.1000/- per annum for the year 2010-11 and continue for another 3 years.

Kotak Life’s cost cutting efforts

Kotak Life Insurance has planned to begin selling policies through online from October ’10. The company expects this will help in reducing costs. The company is also seriously considering entering into the group micro-insurance. “Insurance companies make losses because of high expenses in the increase of footprint. Companies will now have to strive for higher efficiency as lapses could cause deep harm,” said Mr. G. Muralidhar, CFO and COO, Kotak Life. He also said that after the new guidelines, which came into effect from 1st September, results in companies to work stronger to reduce costs and cut losses.

Reliance Life planning to float IPO

Reliance Life Insurance plans to increase its paid-up capital by Rs.260 crore during the current financial year. Mr. Malay Ghosh, ED, Reliance Life said that the company is ready for its initial public offering. Rs.3040 crore has been invested by the promoters and will add another Rs.260 crore this year. Their break-even target is 2011-12 with the possibility of achieving the same in this year itself if they focus on both traditional and ULIPs in equal quantity. The company managed its losses to Rs.260 crore in FY10 from Rs.1000 crore
in FY 09.

Mr. Ghosh also said “The difference between us and other large companies is that they have been around 10 years while we have crossed only four years as Reliance Life. We took over AMP Sanmar in 2005-06, which is why our assets under management at Rs 16,000 crore are relatively low compared to others”.

New product from Future Generali Life

Future Generali India Life Insurance Co. launched a new product called Future Generali Select Insurance Plan. This is a unique ULIP with new customer friendly features. This plan benefits both the customers and the company. While the plan allow financial security to the family and also gives opportunity to decide to select market linked returns based on the medium to long term financial needs. In case of unfortunate death of the life assured, the nominee will get the sum assured and fund value subject to a minimum of 105% of total premiums collected. The plan offers flexibility to select options suited to customer needs with five fund options.

Mr. Deepak Sood, MD & CEO, Future Generali India Life Insurance Company said, “This launch is in line with our product philosophy to offer innovative, simple products with an emphasis on maximizing customer value. Future Generali’s Select Insurance Plan has been structured to suit the need and wallet of a growing middle class and salaried customer segment. With this plan, customers can now easily grow their systematic small savings and build wealth over a period of time for their loved ones. They can also take advantage of rupee cost averaging by choosing the monthly premium payment mode – where the death benefit can go up to 300 times the monthly premium plus fund value. With such flexible payment modes, customers now need not wait to time the markets, and can instead invest small amounts regularly & stay invested in the markets for a longer time to maximize returns, irrespective of short term market fluctuations”

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