Punjab National Bank takes 30% stake in MetLife India Insurance Company
Earlier Punjab National Bank had announced taking30% stake in MetLife India Insurance at an undisclosed sum. Insurance Regulator IRDA has approved the 30 per cent stake purchase by Punjab National Bank (PNB) in MetLife India Insurance Company.

The IRDA has approved in its Meeting held on 31st August 2012 the induction of PNB as a shareholder of the Insurance Company with a 30% stake.

As per the terms of the deal, MetLife will have an arrangement with the existing shareholders and will raise its stake to 26 per cent within 120 days of operationalisation of the deal.

Aegon Religare launches new Term Plan
Aegon Religare Life Insurance has launched a pure Protection Plan with added benefits at extra cost.

The new Protection Plan offers twin death benefit options. The first option is the regular option in which the entire sum assured is given to the beneficiaries on the death of the insured. The second option is payment of the cover amount in two parts. While 50% of the sum assured is paid to the beneficiaries in the event of the insured’s death, 3% of the sum assured is paid out every month for a period of five years. In this case, the total payment comes to 230% of the sum assured.

The plan also comes with an accidental death rider where the cover is equal to the base sum assured. There are also other riders such as critical illness, women care and total and permanent disability with appropriate added premiums.

The minimum age at entry is 20 years, while the upper limit is 65 years; the maximum age at maturity is 75 years.

Suraksha Kosh – New ULIP from Tata AIA Life with riders
Tata AIA Life Insurance Company has recently launched a new Unit-Linked Plan called Suraksha Kosh which is built in with rider benefits.

The new ULIP plan offers accumulated fund value at maturity to the policyholders. In the event of the demise of the policyholder, the nominees will receive the sum assured along with the total fund value then.

There are four riders that are clubbed with this product namely death and surgical, only surgical covering around 948 surgeries, critical illness offering lump sum of diagnosis of 12 critical illnesses like cancer, stroke and heart attack and accidental death and dismemberment.

There are all in-built options and hence the policy holder does not have an option to select his own choice among the four riders.

Policy tenure under Suraksha Kosh can range from 15 to 40 years. The minimum age at entry is 18 years, with the upper-age limit fixed at 50 years. The stipulated maximum maturity age is 65 years.

Reliance focus on 40000 advisors in Tier II and Tier III cities
While Reliance Life Insurance Company has hired over 10,000 insurance advisors in the current financial year, it has announced that 40,000 advisors will be hired in the next six months with a view to strengthen their advisor base. This will facilitate selling the different insurance products of the company and also to servicing the customers more effectively.

Reliance Life Insurance is focusing on Tier II and Tier III cities to hire insurance advisors and boost the existing advisor network across the country. Over 200 trainers and 1000 master trainers will train and educate the new insurance agents.

Reliance Life launches new Pension Plan in October 6, 2012
Reliance Life is awaiting IRDA’s approval for its new Pension Plan proposed to be launched by October 2012.

Following the revised Pension Policy guidelines and removal of the 4.5% return guarantee requirement by the IRDA, most of the private life insurers have commenced rolling out new pension plan schemes.

With this new annuity product, Reliance Life is also planning to give capital guarantee and an option to take debt, equity or bond whatever is chosen by the insured.

IRDA to approve only Pension Plants which end in annuity
It has been categorically made clear by IRDA that only pension products that gel with their name, meaning which end in annuity will be approved by IRDA. According to IRDA, most of the Pension Plans resemble more of mutual funds with shorter time horizon, thus not complying with the regulations.

While inaugurating two-day ‘Global Insurance Summit: Finding the god particle in the insurance industry’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), IRDA chairman J Hari Narayan said, “Only the proper pension products which end into an annuity and if there is a withdrawal in between during the tenure of the product, a certain proportion can be commuted in cash, but the balance will again have to be rendered in an annuity.” “So the products of that nature will certainly be cleared but the products which are only called pensions without any pension element in it will not be approved.”

New Unit Linked Plans from Edelweiss Tokio Life
Edelweiss Tokio Life Insurance has launched two unit-linked insurance plans. These plans are designed in such a way that they would maximise returns for customers with sufficient life cover.

The two products are named after Wealth Accumulation (Privilege) and Wealth Enhancement Ace. By their names, they will cater to the wealth accumulation and wealth enhancement plans of the customers. This is to mean that the customer gets the benefit of wealth creation built with insurance cover.

The unique feature of the Wealth Accumulation Policy is that it has zero policy administration charges along with flexibility in paying premiums. The Wealth Enhancement Ace provides consistency in enhancing wealth through a single premium.

HDFC Life receives the 2012 CIO100 Awards
The Annual CIO 100 Award Program aims at recognizing organizations that exhibit the highest level of operational and strategic excellence in information technology (IT). In its 7th Annual CIO 100 Awards held in Hyderabad recently, HDFC :Life has been awareded the CIO 100 Award. The prestigious award was received by Mr. Thomson Thomas, Senior Vice President – Business Systems and Technology. While speaking to the Press he said.

“Winning the CIO 100 award is a great recognition for the success of our efforts in ensuring data security as leakage of confidential customer and organizational information is a major threat and has regulatory and legal impact. It also has financial and reputational impact. With emphasis on Data protection, HDFC Life has come up with a Data protection framework that defines the visibility of data, compliance, data classification, vigilance over data & security training/awareness for an effective Data protection strategy. HDFC Life has also received the ISO 27001 certification from BSI for the same."

Vibha Padalkar promoted as Executive Director and CFO of HDFC Life
Ms. Vibha Padalkar has joined HDFC Life in 2008 as CFO and she has held several roles as part of the top management team and Executive Committee. She has been promoted as Executive Director and Chief Financial Officer (CFO) of HDFC Life.

Ms. Vibha has over two decades of diverse corporate experience in well known organizations as Pricewaterhouse Coopers, Colgate-Palmolive and WNS Global Services.

Vibha was adjudged the Best Woman CFO of the year in 2011-12 by the Institute of Chartered Accountants in India and has been part of various corporate and industry forums.

Amitabh Chaudhry, MD and CEO, HDFC Life said, "It gives me immense pleasure to announce the elevation of Vibha Padalkar as Executive Director & Chief Financial Officer of HDFC Life. Vibha has played a pivotal role in some of the high impact milestones for HDFC Life including implementation of SAP across India, reporting under IFRS, setting up an enterprise wide risk management system, leading the industry efforts on specific tax changes affecting the industry and managing our cost ratios at best- in- class levels. With this appointment, she has also become a member of Board of Directors and I wish her all the best in this new role."

Kotak Life Insurance penalized by IRDA
The Insurance Regulatory and Development Authority has initiated a penalty of Rs. slapped a fine of Rs 22 lakh on Kotak Mahindra Old Mutual Life Insurance for violation of various norms on group insurance and death claims. The Insurer is expected to pay the penalty within 15 days.

The IRDA order reads that the private insurer had violated the guidelines on the Group Insurance policies by not paying the small value of death claims directly to the beneficiary as required under the law but instead routed the claims through the NGO.

IRDA observed that insurer modified the policy terms of complete cover group plans after the clearance of the product.

Bharti AXA Life launches new Endowment Life Plan
Bharti Axa Insurance has announced the launch of its new traditional non - participating endowment life insurance plan “Secure Savings Plan”. The policy offers customers guaranteed returns to meet evolving life stage needs and also provides life cover to financially secure their loved ones from contingencies.

According to Mr. Sandeep Ghosh, MD and CEO of the Company, "Protection and goal oriented planning are prime motivators for the customers to invest in Life Insurance. They want to be ready for the challenges that every lifestage brings with it and be adequately prepared if anything unforeseen were to happen."

The new plan offers base sum assured or 105% of premiums paid whichever is higher along with guaranteed additions in the event of demise of the life insured.

Mobile Apps by Aviva India
Aviva India launches “Aviva Mobile”, the mobile application by leveraging on the technology. Using this mobile applications, the customers can check their policy details, request for premium receipt, pay premiums and access Aviva’s product suite on the go.

To use this mobile application, customers have to download the application free of cost on any Android, Blackberry/RIM and IOS based smart devices.

Aviva Mobile also allows customers to access the latest stock market news, live cricket scores and get instant weather updates at the click of a button.

Aviva India is the first to bring the mobile application and establishes itself as a pioneer in adopting technology.

Aviva India launches Family Income Builder, the Money Back plan
Aviva India has recently announced the launch of a traditional plan - Family Income Builder.

The main features of this product include fixed premium paying term of 12 years. This is basically a money back policy in which the policyholder will be entitled to receive annual payouts amounting to double the annual premium paid, between years 13 and 24 after the expiry of the fixed premium paying term of 12 years. In the event of the sudden death of the life assured during the 12 year period, the future premiums will be waived off. However, if the death takes place in the first year of the policy, the amount payable will be equal to the first premium paid and there will not be doubling of the amount.

The entry age is six years and the upper age limit is 50 years. The minimum premium payable is Rs 40,000 per year, with the maximum premium being capped at Rs 2-5 lakh, depending on the age of the policyholder. Premiums can be paid only in the annual mode.

New MD and CEO for SBI Life
Following the retirement of Mr. M N Rao on 31st August 2012, Mr. Atanu Sen has taken over as Managing Director & CEO of SBI Life Insurance.

Mr. Atanu Sen commenced his career with SBI in 1977 as a probationary officer and has held several key positions in various divisions of the Bank including foreign assignments at Frankfurt.

On his appointment, Sen said, "Given the evolutionary phase, the sector is witnessing, this will be a challenging assignment. Continuing to leverage SBI’s strong brand equity, my mandate will be to focus on impacting a profitable growth and extending the reach of life insurance to the farthest corners of the country, thus driving life insurance penetration”.

As per the latest IRDA report, covering industry data upto June 12, SBI Life ranks 1st amongst private life insurance companies, in terms of new business premium collection for FY 13.

Single Premium ULIP from HDFC Life
For those who are looking to create their post-retirement corpus, HDFC Life has launched its single premium ULIP.

The Plan has a fixed tenure of 15 years and is offered to the age group of 45 to 70 years. While the minimum premium is Rs. 25,000 there is no upper limit. The sum assured will be 1.1 times of the premium paid by the insured. In the event of the death of the policyholder, the nominee will receive the fund value or the sum assured minus withdrawals already made whichever is higher. This plan is suitable for those who wish to invest lump sum and build the retirement kitty.

SBI Life penalized by IRDA
The IRDA has fined SBI Life for paying higher commissions to intermediaries which predominantly include State Bank of India and its associate banks. The corporate agents were paid additional commission over and above the eligible 2% commission.

IRDA has ordered SBI Life to pay a penalty of Rs. 6 lakhs.

Reliance Life plans 10% growth FY 2012-13
Reliance Life targets a total premium income of Rs. 6100 crore thereby achieving over 10% growth in this fiscal year as against the previous year’s premium of Rs. 5497 crores.

As per the statement of Mr. Malay Ghosh in an interview to PTI, the company is targeting new business premium of Rs 2,300 crore in 2012-13, up from Rs 1,809 crore in the last fiscal. Besides, the renewal premium for the current fiscal is expected to grow to Rs 3,800 crore, from Rs 3,688 crore in 2011-12.

The company's total premium collection has grown from Rs 224 crore in 2005-06 to Rs 5,497 crore in 2011-12, whereas its asset under management during this period has increased from Rs 402 crore to Rs 18,767 crore.

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