League of extraordinary life insurance agents

India improves rank to No. 2 in 2010 in Million Dollar Round Table
India’s ranking in the elite club of the world’s life insurance agents is fast improving. According to the latest Million Dollar Round Table (MDRT) numbers, an elite club of life insurance agents in the world, India has improved its rank to number two in 2010 from the early 2000 where it didn’t feature in the top 10 countries. United States of America is at number one position data revealed.

For 2008-09, India was ranked 3rd with 3922 MDRT agents, 4th position in 2009-10 with 5034 MDRT agents and is at 2nd position with 6126 MDRT agents in 2010-11.

Several domestic companies featured in the top 100 companies for MDRT globally data released as of August 1, 2011 for the period January to December 2010. SBI Life Insurance continued to top in the global 100 companies with the maximum number of MDRT agents at 2661. The insurer retained the unique distinction of topping the club for the third time consecutively. Similarly, Life Insurance Corporation of India has been ranked number 4 with 1993 agents, HDFC Life ranked 13th with 489 agents, ICICI Prudential Life was ranked at 21 position with 341 agents, Tata AIG Life at 31st position with 207 agents, Max New York Life at 33rd position with 203 agents.

“India’s ranking has been continuously improving and is ranked number two behind USA for 2010. With this rate of growth, it is a matter of time when India can occupy the coveted position of being number one in the world,” said Rajiv Gupta executive director, marketing, SBI Life Insurance.

To be eligible for a basic MDRT membership every year, an agent has to meet a specified production goal in the first year income or a certain commission in addition to adhering to a strict code of ethics. As per the qualifying norms for 2010-11, an agent has to earn a commission of Rs 7,59,100 or a premium of Rs 30,36,400.

Within the MDRT, there are three levels such as the basic MDRT, the Court of Table (CoT) and Top of Table (ToT). For the agent to qualify for the CoT, he has to do thrice the MDRT business, while to qualify for the ToT, the insurance agent has to do six times the business required for the MDRT. Of the total SBI Life Insurance agents that qualified for MDRT, 200 have achieved CoT and 30 ToT membership status. “SBI Life’s contribution is around 50 per cent of the total MDRT agents produced by India,” added Gupta.

why lifeinsurance required?

A good life insurance policy can protect you from financial difficulties and provide assurances that your loved ones will be taken care of in the event of any mishap. Many a time people find it difficult to estimate the appropriate value of insurance they need.

Your life insurance needs change as your life changes. When you are young, you may not have much need for life insurance. However, as you take on more responsibility and your family grows, your life insurance needs increase. You should periodically review your needs in order to ensure that your life insurance coverage is adequate.

There are several simple methods that can be used to estimate the life insurance need of any person. These are rules of thumb and give you a broad idea of the amount of life insurance you should buy.

Income rule: The most basic rule of thumb is the income rule, which states that your insurance need should be around six to eight times of your gross annual income. For example, a person earning a gross annual income of Rs 100,000 should have between Rs 600,000 (6 x Rs 100,000) and Rs 800,000 (8 x Rs 100,000) in life insurance coverage.

85% Indians want more insurance to protect lifestyles: Survey

NEW DELHI: Amid rising disposable income levels and better health, education and housing conditions, as much as 85 per cent of middle income earners in India feel a greater need for additional insurance to protect their lifestyles, according to a survey.

According to the ING Investor Dashboard Survey for the second quarter of 2011, more than 75 per cent of respondents that believe they have less coverage than they require want to purchase an additional insurance policy in the coming 12 months.

The survey reveals that within the Asia-Pacific region, Indians feel that there is a greater need to protect their lifestyle and intend to purchase additional insurance policies in the next one year.

"With rising disposable income, better health, education and housing conditions, more and more individuals have lifestyles that they want to protect," ING Insurance Asia Pacific CEO Frank Koster said, adding that insurance policies with attached savings plans are proving to be the product that attracts the maximum demand.

Priority-wise, within the Asia-Pacific region, Indians attach the highest importance to their children's education after the need to protect family income. Saving for retirement is the third-most important priority for Indians, the survey said.

"Indians have a strong desire to give good education to their children. Compared to the region, Indians have the backing of a joint family system, which makes retirement planning a lesser priority," ING Life India Chief Marketing & Strategy Officer Uco Vegter said.

As the nuclear family system grows in India, we will see growth in the retirement segment too, Vegter added.

Due to prevailing high interest rates, the Indian middle class finds fixed deposits their favorite instrument to plan for their child's needs, followed by life insurance policies.

The survey further reveals that parents are starting to save for their child early, with over 45 per cent of the Indians surveyed asserting that they prefer to start saving for their children when they are 0-3 years of age.

The survey tracked insurance purchasing behaviour across seven markets (China, Hong Kong, India, Korea, Malaysia, Thailand and Japan) in order to explore the lifestyle choices of Asia's middle class.

The survey was conducted in June, 2011, and involved online interviews with a total of 2,329 middle income respondents aged 25 years and above across seven Asia-Pacific markets.

IRDA asks insurers not to reject claims mechanically

In a big relief to policyholders, the regulator IRDA today asked insurance companies not to mechanically reject claims on technical grounds, like delay in filing claim documents.

IRDA has issued these directives following complaints that claims are being rejected on grounds of delay in intimation and submission of documents to insurers.

"Rejection of claims on purely technical grounds in a mechanical fashion will result in policy holders losing confidence in the insurance industry, giving rise to excessive litigation," the regulator said in a communication to life and non-life insurance companies.

Although the policyholders are required to file claims within a prescribed time frame, the IRDA said, "this condition should not prevent settlement of genuine claims, particularly when there is delay in intimation or in submission of documents due to unavoidable circumstances."

The regulatory direction is likely to benefit lakhs of policy holders, who face either rejection or delayed settlement of their claims on technical grounds.

Advising insurers to suitably enunciate their stand to condone delay on merit in policy papers, the regulator said "... such limitation clause (of filing documentation) does not work in isolation and is not absolute".

It further said insurers should develop a mechanism to handle such claims with "utmost care and caution".

Insurers, it said, must not repudiate claims unless the reasons of delay are specifically ascertained and recorded.

Besides, the insurers should satisfy themselves that the delayed claims would have otherwise been rejected even if reported in time.
Tags: policyholders, IRDA, insurance companies

IRDA eases norms for agents

Insurance Regulator- IRDA has put forth several regulations to get insurance agents back in business. CNBC-TV18's Kritika Saxena and Mitra Joshi find out if these changes can ensure healthier times for the insurance sector.

The insurance industry has not been keeping well as growth has been slow with the sector witnessing mass exodus of agents since the last two years. Industry experts claim that out of 30 lakh insurance agents, only 5 lakh agents are active, the other agents are merely active on paper. Not only agents, the penetration of insurance products in the country is also low. Life Insurance products have a penetration of 2.4%. Non-life Insurance products have a penetration of 0.7%. The industry blames the poor remuneration system for this.

P Nandagopal, MD and CEO, IndiaFirst Life Insurance says, "The average agency remuneration is less than maybe Rs 5000 and that will not attract the best of talent."

Now the insurance regulator has stepped into damage control mode. The IRDA chairman has just relaxed the persistency norms to 50% from 75% for insurance agents. Persistency ratio refers to the quantum of active policyholders. The reduction means it will be easier for agents to retain their licenses and is a step towards keeping them in the industry.

To boost participation, the chairman has also proposed long-term agents can be promoted to the advisory level.

R Kannan, Former Member, IRDA adds, “If the agents also graduate to the higher platform, say Tier I and II. From Tier II he will come to Tier I, then he will be in a position to sell this kind of a sophisticated product. Finally what is it, we are looking for, we are looking for reducing the mis-selling.”

The insurance industry is definitely going through tough times. But with new regulatory reforms in the pipeline, the sector is hoping to attract a lot of agents back in the business.

Also watch the accompanying video.
Tags: IRDA, insurance, agents, P Nandagopal

India’s life insurance industry among the fastest growing worldwide: ASSOCHAM

India’s life insurance industry among the fastest growing worldwide: ASSOCHAM
Monday, September 19, 2011


India will continue to be one of the fastest growing life insurance markets with annual gross written premiums of Rs 2.68 lakh crore set to grow by 13 to 14 per cent and reach Rs 5.17 lakh crore by 2015, industry body ASSOCHAM said today.

The country will contribute 10 per cent of total global premium growth in this period and be one of the few major markets to grow at double digit rates, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The life insurance industry grew by 28 per cent during 2000 and 2010 in new business premiums, 27 per cent in annualised premium equivalent (APE) and 25 per cent in gross written premiums, catapulting India to top ten markets globally.

“But the level of protection as measured by sum assured to GDP is about 55 per cent relative to benchmarks in developed markets of 150 per cent to 250 per cent,” said secretary general D.S. Rawat.

The relentless focus on growing new business premiums has led to several inefficiencies in business practices, he said. Creation of short-term products, incentivisation of front-line managers and agents primarily on new business and limited profiling of customer needs resulted in low levels of profitability.

Between September 2010 and March this year, the industry registered negative growth of 13 per cent in APE. In the private sector, the negative growth was even higher at 32 per cent. In the first quarter of 2011-12, the slowdown continued with the industry registering negative APE growth of 23 per cent and private sector registering negative APE growth of close to 40 per cent.

Going forward, the focus of industry will broaden beyond growth to include two important aspects which has been largely ignored in the past – providing long-term savings and protection to consumers, and driving profitability in the core life insurance business through sustainable business models.

Mr Rawat said the market is likely to witness continued regulatory action in line with trends which are being seen among regulators across the world. Secondly, the Indian consumer is evolving rapidly.

“Consumers are increasingly becoming multi-channel. Studies show over 80 per cent of consumers across Asia use more than one channel across the purchase and usage process – especially for buying insurance products.”

With India on the cusp of a digital revolution, mobile and internet driven transactions are estimated to grow three to four times over the next five years. So the paradigm for success is likely to change, driven by discontinuities in regulation, customer behaviour and technology adoption.

Emerging winners will have to redefine their business models with careful consideration to strategic issues around agency, bancassurance, innovation, geographic footprint and value of existing customer franchise.

Future market belongs to pension and annuity: DK Mehrotra, Acti Chairman, LIC

Future market belongs to pension
and annuity: DK Mehrotra, Acti
Chairman, LIC
Shilpy Sinha, ET Bureau Sep 19, 2011, 05.22am IST
Ulips | Life Insurance Corporation
Life Insurance Corporation of India, the country's largest i
shifted focus to traditional products from unit-linked insur
(Ulips) over the past two years, said acting chairman DK
Mehrotra . In an interview with Shilpy Sinha , Mehrotr
the Corporation, which is now trying to reach out to the yo
generation, will witness improvement in sales, going forwa
Excerpts:
Sales have been falling for sometime. How do you lo
scenario?
Sales were hit as the market went into a cycle of slowdown. W
seeing growth now. In the past two years, we have tried to co
shift to traditional products. People started selling insuranc
investment products, but the two should not be mixed. Insu
meant for risk cover. It is better to go back to traditional pro
which ensure long-term business. Earlier, we had Ulips and
products at a 60:40 ratio, which has now reversed.

LIC payments directly to your bank account

Life Insurance Corporation of India will send all payments including Survival Benefit, Maturity, Loan, Surrenders, and payments of Pension & Group Schemes etc., directly to your bank account. This is for ensuring speedy deposit of money to your bank account and also as per the transparency drive of the Government of India.

This facility will start immediately from 01st October, 2011. All insurance policy holders and beneficiaries of LIC are requested to submit their Bank account details by filling e-payment mandate form to any of the servicing LIC office which holds at least one of your policies listed in the e-payment mandate.

Individual policy holders should submit e-payment NEFT (National Electronic Funds Transfer) Mandate and P&GS (Pension & Group Schemes) Master policy holders. Beneficiaries, annuitants etc. should submit P&GS Mandate.

The form is very simple to fill which asks

Policy numbers (You can fill all your LIC policies in one format)

Name of the policy holder/Claimant (Should be exactly match with the name of your Bank Account)

Name of your Bank (Check whether your bank is NEFT enabled)

Address of your Bank Branch

Type of your Bank Account (Savings a/c, Current a/c etc.)

Bank Account Number (Please do not submit your NRI Account Number – NRI Accounts are guided by FEMA regulations and LIC decided not to transfer to NRI A/c)

IFS Code of your Bank (available from your check leaf)

Your Mobile Number

E-mail ID (better to fill email ID in Capital Letters)

Fill you consent, whether you are ready to receive SMS/e-mail alert related with your policies.

You should enclose a Cancelled Cheque Leaf and the copy of the relevant page of your Pass Book which contains your Name, Bank Account Number and IFS Code (If your cheque leaf does not contains your name)

If there is any further change in any of the details submitted, you should submit the format again with the changed details. If you are receiving annuity payment through ECS mode you can opt to continue ECS mode or NEFT transfer.

If you didn’t get the amount by NEFT after two days of the due date of the payment, the policy holder should contact the concerned LIC branch where the payment is due.

Advantages tothe Policy holder

If the policy holder shifted to any location, he can get the amount credited in his/her bank account in time with speed, accuracy and security without any extra charges.

SMS & email facility help you to know the transfer in time.

The Transfer is supported with Unique Identity No (UID) and the customer can track the transaction easily.

Both the forms (for individual Insurance policy holders & P&GS policy holders) are available from all Life Insurance Corporation offices or can be downloaded from the following links.

Individual Policy NEFT mandate

New LIC chairman in ten days: Finance Ministry

Mumbai: Ending months of indecision, the government is set to appoint a full-time chairman for life insurance giant LIC in the next ten days, a top Finance Ministry official has said.

"I say it will be very shortly, that could be a week or ten days," Financial Services Secretary DK Mittal told a select group of reporters here over the weekend. Mittal blamed the delay on the long process to be followed while selecting such a candidate.

Life Insurance Corporation (LIC) has been without a full time chairman since May, after the then chairman TS Vijayan's five-year term had ended.


As an interim arrangement, Additional Secretary in the Finance Ministry Rakesh Singh was appointed as chairman of LIC and subsequently DK Mehrotra, the incumbent managing director was asked to officiate as the chairman of the country's largest financial institution.

A selection panel, headed by Economic Affairs Secretary R Gopalan, had invited four probable candidates in June. But the panel could not decide as two of the contenders did not have Central vigilance clearance.

When asked about the names being discussed, Mittal said, "that's for the selection committee to decide. What I am saying is that this process is on and very shortly you will get a final (decision)."

According to earlier reports, the shortlisted candidates -all from within the LIC ranks--include current acting chairman DK Mehrotra, managing director Thomas Mathew, and three executive directors-- AK Sahoo, TT Mathew and KB Saha.

Several questions have been raised about the government's inability to find a full-time leadership at LIC, which has assets exceeding Rs 10 trillion, especially at a time when it faces competition from over 23 aggressive private players since the opening up of the sector a decade ago.

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Early start & high savings can help realise all goals

http://articles.economictimes.indiatimes.com/2011-09-12/news/30145191_1_high-savings-surplus-loan

Irda-delay-holds-up-new-product-launches-of-insurance-companies

http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/irda-delay-holds-up-new-product-launches-of-insurance-companies/articleshow/9918759.cms

how tomonsoon-proof your car 21 tips

We present tips on how to enjoy the rains to the fullest in your car without inviting its pitfalls.


Checking the car


1. Start with the basics. Check the general condition of your car. Pay close attention to your the tyres, brakes and wipers (an often neglected accessory but which is critical in the rains. Good visibility largely depends on the quality of the wipers). Replace if you have the slightest doubt.

2. Your tyres must have enough tread left (at least 2 - 3 mm). The quality of tyres is critical to the handling, performance and grip of your vehicle. They should not be either over or under inflated. It is wise to keep to the manufacturer's recommendations, even if your mechanic tells you otherwise. They are usually arrived at after days and weeks of testing before the vehicle is launched. Trust the car maker's judgement.

3. Ensure that your headlight beams are focussed optimally. Ensure that all other lights, especially the parking lights are functioning as they should.

4. Another neglected item is the foot pedals. Mostly the runner covers are worn out or totally missing. Change/replace them at once. In the rains, a slip while braking or changing gears because of wet footwear could prove costly or even dangerous.

5. Many cars have their drain hole plug missing. Replace them at once. Missing or loose drain-hole rubber plugs will result in water seeping into the passenger compartment even it is not raining too heavily.

6. Like the windshield wiper, keep the windshield clean and the washer fluid topped up at all times. Using a newspaper to clean your windshield works wonders. Some also suggest wiping the glass with tobacco (your cigarettes could come in handy?!). Avoid using low quality cleaners on the windshield, as they leave marks behinds and can get into the scratches on the screen and distort and reduce your visibility.

7. Check the insulation of your car - rubber beadings on the doors and windows. If they appear loose or damaged tighten or change them. The condition of the beadings is crucial as they stop the rain from getting into the car, preventing rust and short-circuits.

8. Another hugely neglected item in a car's kit is safety tools - first-aid, basic medicines, torches, and umbrella etc.

9. Wet mats or upholstery can result in smelly interiors. Go in for a quality air freshener. The type that is slotted on to the air con vents is effective and convenient. But make sure that they do not break the plastic of the air vent. Going in for natural fragrance like sandalwood-based fresheners are also a good choice. But avoid strong fragrances, as they can put-off people with allergies.



On the Road


10. Contrary to popular notion, the first rains make road surfaces more slippery than water logged roads. And, cement surfaces tend to be more slippery than tar roads. In moderate to heavy rains you can be the victim of 'aqua-planing' - a thin film of water between the surface and the tyre of your car. Any sudden manoeuvre by you can cause skidding of the vehicle in such a situation can be treacherous and dangerous.

11. Drive by the gear. Drive steadily and in gear lower than you would normally do so that you ensure more control and traction with the surface, as the engine also acts as a brake.

12. Maintain at least twice the distance between you and the car in the front, as braking distances are dramatically lengthened in wet surfaces.

13. Avoid the temptation to select the high beam in the rains, especially if there is mist or fog. Rather than increasing visibility it may actually increase the glare, especially for the oncoming traffic.

14. Avoid driving on painted surfaces on the road like the yellow lines and the divider lines as painted surfaces have substantially reduced traction.

15. Always attempt to drive on the central lane, if you are on a three lane road. Especially on the highways, as it will give you some space to manoeuvre in case of an emergency. Plus the extreme lanes usually are subject to water logging.

16. Always treat a puddle as a hole, a hazard. No knowing what is under the puddle; for all you know it could be a drain hole or a substantial pothole on the road. Enter the puddle with extreme caution and very slowly. In most cases, try to drive around the puddle.

17. Another thing which is mandatory for the Indian roads, especially the highways. Treat a truck in front with extreme caution. Countless accidents have happened when otherwise cautious drivers slammed into stationary trucks on the highway, as there were no indications that the truck was stationary. No warning lights, no hazard signs, no nothing. Most trucks in India don't even have their stop lights functioning. At high speeds it is well nigh impossible to tell a standing truck from a moving one.

18. Once you are through a puddle, do not assume that everything is back to normal. Select the lowest gear, slip the clutch, and rev hard. This is to enable the gases in the exhaust to be pushed out. Keep revving till you are sure that engine would not stall. If the car does stall, do not try to start again. You need to park and first ensure that water has not entered air intake or the exhaust. Otherwise, it will result in a 'hydrolock'.

19. As importantly, once out of water, pump your brakes steadily till you feel that all the water has been dried from the brake discs or drums. Do not, repeat do not, attempt to drive if you get even a fleeting feeling that the brakes are not functioning. Don't try heroics like trying to dry the brakes on the move. Braking and finding that they are not engaging is a sinking feeling, felt to be believed.

20. If the rain is pelting, have patience, don't overtake needlessly or use your horns excessively. The vehicle in front may be slow, not because the driver is a retard, but an experienced one - who knows how rains and waterlogged road surfaces have dramatically different dynamics than on a dry surface. So be patient.


Here's wishing you and your family happy driving in the monsoons!


Source: India Syndicate

LIC joins online play with pure term policy

ET Bureau Sep 3, 2011, 04.47am IST

Tags:

• Life Insurance Corporation|
• LIC

MUMBAI: Life Insurance Corporation will sell its policy through the internet for the first time soon with the launch of a pure term plan.
"We are in the process of designing a pure term product which would be sold through both online and through agents," LIC's ED- marketing S Roy Chowdhury. "The rates will be lower than what is charged at the moment," he added.
LIC currently charges higher premium for its term plans than private competitors. For example, a 30-year-old non-smoker has to pay an annual premium of 7,300 for a 25-lakh policy under LIC's term plan Amulya Jeevan, while she can buy online policies such as ICICI Prudential's iProtect for 3,350 and Kotak Life's e-term plan for 2,750.

LIC plans to reduce this gap with the launch of its online term policy, where it can save on agent commission. Its move is expected to make private insurers reduce their rates further. The state-owned insurer is also betting big on Bancassurance, or selling policies through bank branches.
LIC's ED Vipin Anand said the insurer has set a target to double its income from Bancassurance this financial year to 5% of its total new business income. The insurer is targeting new business income of 54,000 crore this year. At present, 20 banks, including United Bank, UCO Bank, Central Bank, Corporation Bank, BoM and PNB, sell LIC policies.
LIC has announced a bonus of 21,580 crore for its policyholders for 2010-11, which is 95% of its net surplus of 22,716 crore. The rest 5% has gone to the government.
It has announced a higher bonus rate under seven with-profit plans, namely Jeevan Anand, Jeevan Tarang, Jeevan Madhur, Child Future Plan, Jeevan Shree I, Jeevan Bharti I and Jeevan Pramukh. It also announced loyalty additions for the first time in other seven plans.

Incresed mediclaime cover to club member agents

Increase in Mediclaim benefit to club member agents.

BMS Club from 25000 to 40000,
DM Club from 40000 to 55000,
ZM Club from 60000 to 75000 and
Chairmans club from 100000 to 125000.
Cercular No (MKTG/ZD/36/2011 DTD 30/08/2011)