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	Aug 31, 2010 TPAs warn of legal action against PSU insurance majors In the current cashless controversy, the third party administrators (TPAs) have threatened to leave the campaign to standardize treatment costs in corporate hospitals halfway, and move Competition Commission of India (CCI) against four public sector undertakings (PSUs) insurers. The decision to move CCI was taken at a meeting of 22 TPAs that was held last Saturday against the PSUs' decision to appoint their own TPA, and transfer all business to the new entity over the next three years.TPA association members unanimously resolved to petition the Insurance Regulatory and Development Authority (IRDA), in addition to approaching CCI. + More - Our Bureau
	Aug 31, 2010 Hospitals and Insurance firms fight over new pricing and grading The standoff between third party administrator (TPA) health insurance — using a mediator to process papers between hospitals and insurance companies — and the health sector seems to have taken a turn for the worse. Terming the new prices arbitrary, most doctors running various hospitals and nursing homes in the Capital claim they were not involved at any stage while fixing cost of treatment and grading of hospitals."Such illogical cutting down of costs is ultimately only going to make people suffer, as it would mean cutting down on the quality of treatment," said Dr Mahipal Singh Sachdev, director, Centre For Sight, and secretary, Intraocular Implant and Refractive Society, India. Dr Sachdev performs 500 cataract surgeries every month, which according to him has the second largest insurance claim after cardiac procedures. "A lens can cost anywhere between Rs 500 and 1 lakh…. We don't want a situation where we will not be able to offer superior quality lenses because we have to fit in the surgery in a particular budget," he said. As per the new proposal by the TPAs, the cost of cataract procedure has been limited to Rs 17,000-Rs 24,000 whereas it cost nearly Rs 35,000-Rs 40,000 in a private set-up. + More - Our Bureau
	Aug 31, 2010 IRDA has open mind on scrapping motor pool The Insurance Regulatory and Development Authority (IRDA) has an “open mind” on the abolition of the ‘motor pool' arrangement, the Authority's Chairman, Mr J. Hari Narayan, has said. Mr Hari Narayan said this in response to a question if the time has come for doing away with the ‘motor pool' considering that private sector insurance companies are coming forward to underwrite ‘commercial vehicles third party' risks. When it was pointed out to Mr Hari Narayan that private sector companies are saying they are willing to provide the cover, he said, “what they say and what they do are two different things.” So far, the motor pool has collected premium of Rs 8,421 crore and paid claims worth Rs 1,071 crore. It has provided Rs 3,608 crore for outstanding claims. Then comes the nub — it has provided Rs 3,848 crore under the head “Claims incurred but not reported (IBNR)”. Some in the industry believe that this IBNR cannot be so high. + More - Our Bureau
	Aug 31, 2010 United India Insurance targets Rs 6,000-cr biz With the outlook remaining positive, United India Insurance Company Ltd is expecting the business to grow by 20 per cent and reach Rs 6,000 crore by the end of the current financial year.Mr G. Srinivasan, Chairman and Managing Director, United India Insurance, said that the company's business had been growing at a rate higher than the market growth rate. He said the company could achieve the growth through various initiatives such as strategic tie-ups with banks, financial institutions, automobile manufacturers and dealers. The focus was also on the retail segment with large-scale recruitment and training of individual agents. The number of active agents would reach one lakh by the end of 2012. + More - Our Bureau
	Aug 31, 2010 Munich Res India Insurance Venture to Turn Profitable by 2012, CEO Says HDFC ERGO General Insurance Co., a venture between India’s largest mortgage lender and a Munich Re unit, expects to turn profitable by March 2012, Chief Executive Officer Ritesh Kumar said. Record car sales in India and higher health-care spending will boost premium income by as much as 40 percent in the next two years from 9.3 billion rupees ($199 million) in the year to March 31, Kumar said.“We are beginning to see revival of industrial activity and in the past four months the industry has grown at a pace that was seen only in 2007,” Kumar said in an interview. + More - Our Bureau
	Aug 31, 2010 E-platform for re-insurance deals soon A hi-tech electronic platform for transactions and settlement system in re-insurance and co-insurance will be introduced by the Insurance Regulatory and Development Authority (IRDA).A steering committee, headed by Mr J Hari Narayan, Chairman, IRDA, would study various models of Electronic Transaction Administration and Settlement System in reinsurance and coinsurance and design a new system which would be suitable to the Indian industry. The committee would also take necessary steps to operationalise the new system in next six to nine months. + More - Our Bureau
	Aug 31, 2010 Life insurers new business income up 56% in April-July To compensate for the expected drop in sales of life insurance policies after the new guidelines on unit-linked insurance plans (Ulips) kick in from September 1, life insurance companies pitched for more business in the first four months of the financial year. The industry managed growth of 55.7 per cent in new business income at Rs 34,249.22 crore in the April-July period, as against Rs 21,996.56 crore in the corresponding period last year.The growth was mainly driven by a surge of 72 per cent in Life Insurance Corporation of India’s (LIC’s) new business premium income. + More - Our Bureau
	Aug 31, 2010 P&C Insurance size poised to grow at Rs.500bn by 2012-13: ASSOCHAM – McKINSEY The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and McKinsey&Company have projected that the size of Property and Casualty insurance (P&C) industry would exceed Rs. 500 bn (US$ 11.2 bn) in total premiums by 2012-13 from current level of close to Rs. 370 billion (US$ 8 bn) in 2009-10. However, the study has projected that profitability will remain low with RoEs (Rate of Return) at 7 per cent due to stiffer competition.“Given the macro economic situation, the underlined demand for P&C insurance will continue to grow as players will compete aggressively for market share, resulting in low pricing levels across both personal and commercial segments”, said Dr. Swati Piramal, President, ASSOCHAM while releasing the study. Since deregulation of insurance industry in 2000, the P&C insurance sector has been growing steadily and has reached a size of Rs 370 billion (US$ 8 billion) in 2009-10. + More - Our Bureau
	Aug 31, 2010 India: Actuary body opposes return guarantee on pension plans The Institute of Actuaries of India is making a last-ditch attempt to dissuade the IRDA from requiring insurers to provide guaranteed returns on pension plans, reports the Financial Chronicle. Mr G N Agarwal, President of Institute of Actuaries of India, said: "We are against guaranteeing returns on pension products. The actuarial society is readying a report which we will place before IRDA shortly." New rules issued by IRDA, that take effect on 1 September, require insurers to provide guaranteed returns of 4.5% on gross premiums until 11 March 2011. Subsequently, returns will be linked to the Reserve Bank of India's reverse repo rate or the rate at which banks deposit their surplus funds with the central bank.Investors will have to be given 50 basis points more than the average reverse repo rate at the end of each quarter. The minimum returns will be in the range of 3-6%. + More - Our Bureau
	Aug 31, 2010 India: Regulator to counter-check insurance claims by accessing insurers systems This is the first time that a regulator is planning to keep an eye on players in an industry by accessing their systems. The Insurance Regulatory and Development Authority (IRDA) chairman J Hari Narayan has said that the regulator is designing a method that would allow it to access various insurers systems to do random checks on claims. This is the first time that any regulator has come out with such an idea to keep a check on players in an industry by accessing their systems directly.Earlier, the regulator had emphasised that it would be necessary for insurers to have automated systems that would enable online registration and tracking of the status of grievances. These systems will be integrated seamlessly with IRDAs own system + More - Our Bureau
	Aug 31, 2010 MetLife persistency ratio highest among industry at 84% Private sector insurer MetLife today said it has been able to retain 84 per cent of its customers in April-June quarter against the industry average of 70 per cent. Private sector taken together has average persistency ratio (APR) of 68 per cent and while the industry as a whole, comprising LIC, has APR of 70 per cent. Persistency ratio is one the key determinants of the financial health of the life insurance player, which is a result of increasing faith that customers have in MetLife brand and products, the company said in a statement. This is also a reflection of the excellent customer service that the organisation provides to its customers, it said. + More - Our Bureau
	Aug 31, 2010 Aegon Religare looks to change product mix Private life insurer Aegon Religare has refiled three of its unit-linked products with the insurance regulator to comply with the new regulations, and looks to change its product mix going forward.The company wants to increase its traditional products by 10 per cent from the current 25 per cent, said Mr Yatheesh Srivatsava, Chief Marketing Officer, Aegon Religare Life Insurance Company. According to him, the company clocked Rs 166 crore of new premium last year, and 75 per cent of this came from ULIPs, he added. This year, the company targets new business of Rs 500 crore. + More - Our Bureau
	Aug 31, 2010 Accurate valuation is the key Tata AIG General Insurance launched a jewellery and valuables insurance cover for high net worth individuals — a first of its kind. While both public and private general insurance companies have jewellery insurance covers, they are a part of the householder’s policy. Gaurav Garg, managing director and CEO, Tata AIG General Insurance, says, “The annual premium for a cover of Rs 1 crore will be one per cent of the sum assured. It could vary depending on the risk evaluation of the jewellery.” This product will offer an all-risk cover — loss reimbursement, repair and restoration, preservation and storage assistance.When you take a householder’s policy and get your jewellery covered under it, the sum insured of the jewellery is based on its market value at the time of taking the policy. + More - Our Bureau
	Aug 31, 2010 Micro Insurance for poor soon The Insurance Regulatory and Development Authority (Irda) is in the final stages of drafting guidelines for the microinsurance sector, which will mandate both life and general insurers to offer a suite of products to the poor at a lower commission and a lower premium.“The minimum cover of Rs 5,000 did not serve the real purpose and was abnormally low. The proposed guidelines will ask it to be enhanced to at least Rs 50,000-Rs 75,000,” a senior Irda official told Financial Chronicle on condition of anonymity. The regulator is likely to release the draft guidelines in a fortnight.“The market has evolved since then and the experi ence shows the insurance cover was inadequate,” the official added. The new guidelines will ask insurers not to limit the maximum cover to Rs 50,000. “The idea is to have maximum cover for minimum premium,” the official said. + More - Our Bureau
	Aug 26, 2010 Govt plans common healthcare standards In a move that could bring relief to millions of patients and transform the way hospitals do business, the health ministry plans to put in place common standards of treatment at medical facilities. The ministry has mandated an expert panel to frame treatment protocol for a number of ailments that are expected to be implemented in the next three-four months and established at hospitals nationwide in one-two years, officials familiar with the development said. The move towards standardization follows the recent passage of the Clinical Establishment Act, which calls for common standards to be maintained by healthcare facilities. Every such legislation requires a set of guidelines to be framed. “An expert committee has been appointed to look at cost-effective ways of standardizing treatments through regulation of hospitals at state level,” said a senior health ministry official on condition of anonymity. “Initially, standardization will be done for 10-15 common critical ailments such as those related to cardiology and nephrology”. Currently, there are no standard methods of treating ailments or providing standard infrastructure facilities during hospitalization. Because health is a state subject, the Centre can only recommend to state governments that they adopt the Clinical Establishment Act.The Act will seek to provide uniformity in healthcare delivery, said Dinesh Trivedi, minister of state for health and family welfare.“Standardization of rates across hospitals in a region would bring in more transparency to customers and insurers. This also helps in pricing the product better than relying only on the insurer’s claims experience,” said T.A. Ramalingam, head of underwriting at Bajaj Allianz General Insurance Co. Ltd. + More - Our Bureau
	Aug 24, 2010 Star Health, Shriram Life team up to launch new product Star Health and Allied Insurance and Shriram Life Insurance have joined hands to bring out the country's first ‘combi' product – a health insurance product that also covers the life of the bread-winner of the family.Two insurance companies jointly offering a product is new in India. After all, such an arrangement was permitted by the Insurance Regulatory and Development Authority (IRDA) only in December last. The new guidelines permit a tie-up between one life and one non-life insurance companies for offering a combi product. The ‘Star Shri Individual Care' policy has two sections. One part covers health that would take care of the policy holder in case of hospitalisation for sickness and accidental injuries and the second part offers pure life term cover. This policy is only for individuals and is available for persons under 50 years of age and is renewable till they reach 60, after which the policy would cover only ‘health'. The Star Shri Family Care policy protects the entire family and the health section covers all members of the family. However, the life section only covers one earning member of the family. + More - Our Bureau
	Aug 24, 2010 US health insurer Cigna plans India JV American health insurance major Cigna Corporation has initiated negotiations with a clutch of state-owned banks to form an India joint venture to foray into the country’s fast growing health insurance sector, two persons familiar with the development said.The US company will hold 26% in the proposed JV as per the foreign investment cap permitted in the sector and may invest around Rs 100 crore initially. “Cigna is looking to partner a public sector bank to leverage their vast distribution channel,” the first person said on condition of anonymity. + More - Our Bureau
	Aug 24, 2010 TPAs join hands to fight PSUs At an extraordinary general meeting (EGM) of the TPA association on 21st August, 27 TPAs decided to join hands & submit evidence to the insurance regulator on the wrong underwriting practices of public sector insurance companies.TPAs have sought a meeting with the Insurance Regulatory and Development Authority (Irda) to present a comprehensive report, containing proof and details of wrong underwriting practices used by the public sector insurers, which are causing them losses in the health business. Similar facts were highlighted in a recent report of the Comptroller Auditor General (CAG) of India as well.“The report will contain names of 200 companies which were charged lower premium on renewals despite bringing huge claims in the previous years. The report will also show employees of insurance companies have been consciously selling health policies to sick people. We will submit this report to the government and the media as well,” said a CEO of a TPA. + More - Our Bureau
	Aug 24, 2010 Hospitals set to sign cashless deal Cashless hospitalization facility may soon be restored at most corporate hospitals in Delhi, Mumbai, Bangalore and Chennai, with the impasse between insurers and big hospital chains on the verge of a resolution.After intense negotiations spread over several days, a three-tier package has been worked out for 42 standard medical procedures, covering almost all common ailments requiring hospitalization.As per the compromise formula, hospitals have been divided into three groups based on infrastructure capabilities.In Delhi, negotiations have already been concluded with Gangaram and Medicity, Gurgaon, which figure among the list of high-end hospitals.Others such as Apollo and Fortis, which have presence in other metros, are also ready to come on board on the same rates that Gangaram and Medicity have agreed to. + More - Our Bureau
	Aug 24, 2010 Cashless claims down after tussle between healthcare providers and insurance companies The tussle between healthcare providers and insurance companies has drastically reduced the number of cashless claims in the city. While third party administrators (TPAs) used to process about 200 cashless applications per day, the number has reduced to 10-15 applications since last week.“When a patient wants to avail of cashless benefit, he has to get in touch with the TPAs, who process authorisation letters suggesting that the policy-holder will get a sanction of the required amount,” a senior executive from a TPA said, adding that they earlier sent 150-200 authorisation letters daily.“However, the number has dropped to 10-15 applications per day,” he said, adding that it was similar with TPAs across the city (Mumbai). + More - Our Bureau
	Aug 24, 2010 Life cos fear Ulip sales halt in September Many private life insurers fear sales may come to a standstill in early September as they do not yet have in place products that are compliant with new guidelines for unit-linked insurance plans (Ulips) that come into force next month. At the same time, marketing by some unscrupulous agents has reached fever pitch as they push existing high commission policies, which will become non-compliant from next month, by positioning them as a limited period offer. A host of companies that ET spoke to said that they have not yet received approval for redesigned products lodged with the Insurance Regulatory and Development Authority (IRDA).“We need a couple of weeks to get a completely new product from approval stage to market as we have to get our systems updated, brochures printed and agents trained,” said the CEO of a life company. + More - Our Bureau
	Aug 24, 2010 Irda chief asks insurers to focus on rural India It is high time that insurance companies should focus more on bringing out products which completely meet the needs of those in the rural poor/below poverty strata, including their needs, aspirations and meets the risks attached to it or otherwise it is very difficult for the insurance sector to grow fast, said J Hari Narayanan, chairman, Insurance Regulatory and Development Authority. Hari Narayanan, who was in Chennai to launch India’s first health plus life insurance combi product, jointly developed by Star Health and Allied Insurance Company and Shriram Life Insurance Company, said, despite insurance companies have options to jointly develop products which meet the aspirations of millions of rural poor India, there is hardly any products to count till date. + More - Our Bureau
	Aug 24, 2010 IRDA fines LIC, HDFC Standard for missing rural obligation Insurance regulator IRDA has imposed a penalty of Rs 5 lakh each on two life insurers, state-run Life Insurance Corporation (LIC) and HDFC Life Insurance, for failing to meet rural and social sector obligation in 2008-09, Parliament was informed.The Insurance Regulatory and Development Authority (IRDA) has imposed a fine on LIC and HDFC Standard Life Insurance for non-compliance under the rural sector target during 2008-09, Finance Minister Pranab Mukherjee told the Lok Sabha. Against the target of 25 per cent, LIC missed it by a whisker and could only underwrite 24.27 per cent of policies in the rural sector, he said. At the same time, HDFC Standard Life achieved just 12.85 per cent against the target of 19 per cent, he said. + More - Our Bureau
	Aug 24, 2010 Low premium health insurance policy for rural masses New India Assurance Company plans to introduce a low premium health insurance policy for rural masses during the current fiscal, according to its Chief Regional Manager M. Kannan Babu. “This proposed medical claim cover will be extended to the public once the necessary approval for the scheme was accorded by the Insurance Regulatory and Development Authority,” he told. Low premium embedded in the scheme, according to him, will help widen the general insurance cover much more to the economically weaker section of society much more effectively.“This financial year, National expect to grow by about 15 per cent,” Mr. Babu said. + More - Our Bureau
	Aug 24, 2010 Sequoia plans to invest Rs 165 cr in Star Health Private equity firm Sequoia Capital would be putting in Rs 165 crore in Chennai-based standalone health insurer Star Health and Allied Insurance Company.Meanwhile ICICI Ventures would be putting in further Rs 20 crore, a top official said.ICICI Ventures had recently infused Rs 100 crore into the company, which is the country’s first stand-alone health insurer.V Jagannathan, chairman and managing director of Star Health, said ICICI Venture would infuse another Rs 20 crore in the coming months, while funds from Sequoia would come in another 15 days. + More - Our Bureau
	Aug 20, 2010 Insurance companies and corporate hospitals - Negotiations on package rates Insurance companies and corporate hospitals have agreed on a three-tier pricing package for treatment of various kinds of common ailments after several rounds of negotiations.The basic modalities of the package, which will determine the cost of treatment for 42 varieties of ailments to be charged by corporate hospitals, were arrived at between some of the leading high-end private hospitals and Third Party Administrators (TPAs), who are the facilitators between the insured and insurance companies for the settlement of claims. Some of the major corporate hospitals such as Apollo Healthcare, Max, Medicity, Medanta and Fortis are understood to have given their package rates to the TPAs. The TPAs will now get back to the hospitals on the package rates. Cashless facility in corporate hospitals would be restored on an interim basis by tomorrow (Friday), Max Healthcare Institute Managing Director Pervez Ahmed, who headed the CII National Health Committee, said.However, it will take some time for hospitals and insurance companies to arrive at final settlement on the issue (of rate structure), Ahmed said. The detailed rate structure would be decided in the next one month. Under the structure that is being worked out, hospitals would be categorised on the basis of superspecialty as well as overall infrastructure facilities. Thus premiums would vary accordingly, he said. As per the settlement between corporate hospitals and the TPA there will be three categories A, B, C for classification of hospitals. The cost of treatment for the same kind of illness will differ from hospital to hospital depending on the categorisation. This would eventually lead to insured paying out higher premiums for treatment in super specialty medical enters. + More - Our Bureau
	Aug 20, 2010 Cabinet clears nuclear liability bill With the government having clinched an understanding with the BJP over the nuclear liability bill, the Cabinet on Friday cleared the amended legislation.The bill will be brought to Parliament next week itself. Evidence placed before the parliamentary panel examining the bill makes it clear that with the no-fault cap raised to Rs 1,500 crore, entry of foreign insurers may be inevitable along with inspection of Indian atomic power plants by outside surveyors. The capacities of Indian insurers will be inadequate for liability caps in excess of Rs 500 crore and involvement of foreign firms in the nuclear sector may be the only recourse, depositions by ministry of finance and general insurance company representatives suggested. They pointed out that in India, insurance cover of Rs 200 crore could be absorbed within GIC itself as well as by other insurance companies forming a pool. But higher amounts would need the support of international insurers. + More - Our Bureau
	Aug 20, 2010 LIC aiming at Rs 5,000 cr new biz premium through alternate channels Life Insurance Corporation (LIC) said it is aiming at an over four-fold jump in new business income to Rs 5,000 crore in the current fiscal through bank tie-ups & alternate channels, among other initiatives.The corporation collected a first-year premium of Rs 1,140 crore last year from bancassurance and alternate channels. This year, we are targeting to garner Rs 5,000 crore. We are now looking to expand the alternative channel of distribution and add more partners. We want to develop this as an area of strength for us, LIC Executive Director A K Sahoo said. This would represent a four-fold increase to the premium income of Rs 1,140 crore achieved through alternative channels last fiscal. Of the total new business premium garnered by LIC through alternate channels last year, its nine public sector partner banks together contributed about Rs 800 crore. + More - Our Bureau
	Aug 20, 2010 IRDA asks insurers not to sell policies through misleading ads The regulator IRDA asked the insurance companies not to provide fabricated sense of security through advertisements to allure customers towards ULIPs and other schemes, a move aimed at checking misselling of policies.Issuing guidelines for advertising insurance products, the Insurance Regulatory and Development Authority (IRDA) also asked insurers to clearly state the underlying conditions for a guaranteed benefit from insurance cover.“A review of the advertisements, especially those relating to unit-linked life insurance products, reveal the necessity to improve the content and presentation in compliance with the provisions of the above referred regulation and guidelines. The brand names of insurance products must not use terms or phrases that convey a fabricated sense of security,” said Irda.It said the insurance companies need to clearly state the conditions (including cost of guarantee, charges) under which the guarantee operates. + More - Our Bureau
	Aug 20, 2010 Irda may cap fee on basic policies After setting stiff norms for unit-linked insurance plans (Ulips), the Insurance Regulatory and Development Authority (Irda) is planning to cap charges on traditional products within three months.“We will review the situation after September. If insurers try to cover the cost of squeeze in margins (due to new Ulip norms) by levying a higher charge on conventional products, we will cap it,” said a senior Irda official.“At present, we are busy clearing Ulips. We will start working on the guidelines within three months of seeing the impact of the cap on Ulips,” the official added.Last year, after the market regulator banned entry load on mutual funds, Irda capped overall charges on Ulips from January this year. + More - Our Bureau