News

Rural potential yet to be explored: IRDA 20-Aug-2004

The IRDA, in a concept paper on Need for Developing Micro-Insurance in India has said that insurance companies in order to tap the potential in rural areas should consider the wide network of intermediaries that are yet to be explored. These include NGOs, self help groups, credit co-operatives etc to name a few. While these carry immense potential, restrictions in the present regulations hamper the development of the same. Explored in the right manner at minimum cost these intermediaries can definitely spread the message of importance of insurance far and wide.
Source : Insuremagic.com

Market linked schemes sell well 21-Aug-2004

Market linked products are known to have gained popularity particularly in case of pension schemes. Out of the total business premiums of Rs 1448 crore generated by life insurance companies in '03-04, 6 percent (Rs 84 crore) came from sale of annuity and pension products. Out of this 30 percent was from the sale of unit linked pension products. These unit linked products brought in new business premium of Rs 28 crore, which is 18 percent of premium generated from sales of unit linked policies.
Source : Insuremagic.com

Pvt risk cos plan to form association 21-Aug-2004

Recently insurance brokers have come together to form an association to voice their concerns and now it's the turn of private insurance companies. Issues related to pension reforms and outsourcing of account processing work are some of the matters private insurers want to put across through an association. But sources say that setting up of several such bodies may prove counter productive. It may be noted that private risk companies had in the past too raised such a need for an association but was turned down.
Source : Insuremagic.com

NGO's to receive microinsurance licence 24-Aug-2004

With a view to encourage insurance penetration in the rural areas the insurance regulator plans to introduce a special category - microinsurance agents. A microinsurance licence will be given to NGOs and self help groups and the commission under such a scheme will be capped at 20 percent of premium for life and 7.5 percent of the premium for non-life products.

In case of life insurance, the regulator has defined a microinsurance cover as one with a minimum sum insured of Rs 10,000, a term of at least five years and an entry age limit of up to 60 years. such an agent will be able to take up administrative jobs outsourced by the insurance company and will have to be a part of the insurance system.
Source : Insuremagic.com

Keyman policies for employer and employee 26-Aug-2004

Keyman policies have turned to be one of those favourite reward items. Taken to cover the loss of an employee, the company after paying up around 70 percent of the premium of the policy surrenders the same and asks the insurer to assign it to the respective keyman. The policy then acts as a life insurance policy for the insured while the company in return receives the surrender value of the policy.
Source : Insuremagic.com