From 1st October. You need to submit address proof or photo id proof for appropriate service including change of nominee/loan /sb/maturity /claim/change of address and all services from LIC.
vinay mohanty
vinay mohanty
This Blog provides you UpToDate information on life & General insurance dealing mostly with LIC's New Plan Circulars, MillionDollarRoundTable tips on marketing,Financial analysis and INCOME TAX.
IRDA has extended the date to Jan 1 2014, Currently available plans
Dear
Friends,
PFA circular from IRDA dt 30 sep 2013.
IRDA has extended the date to Jan 1 2014.
Currently available plans (which doNOT confirm
to IRDA's new
regulations)
can be sold till Dec 31 2013.
Thanks & Regards,
vinay mohanty
LIAFI BIRTH DAT AND lALBAHADUR SASTRI JEE KA JANMATITHI
2nd October LIAFI BIRTHDAY(pratistapana divas) plan for BIG celebration
Our Biloved Ex prime minister Mr LALBAHADUR SASTRI JEE KA BIRTHDAY
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
changes for traditional insurance products coming next month:
Here are some important changes for traditional insurance products coming next month:
- In case of regular premium insurance policies, a policy with a premium paying term (PPT) of five years will not pay more than 15% in the first year. Products with PPT of 12 years or more will have first year commissions up to 35% in case the company has completed 10 years of existence and 40% for the company in business for less than 10 years.
- Online policy sales and other direct sales of products will have no commissions and that benefit will be passed on to the policyholder.
- The minimum guaranteed surrender value for traditional plans has been pathetic. The existing guaranteed surrender value is 30% of all the premiums paid minus the first-year premium and is paid only if premiums have been paid for three years. This has been improved to some extent by the guidelines. For traditional plans with PPT of less than 10 years, the guaranteed surrender value will accrue after the second year. For PPT of 10 years or more, there will be a guaranteed surrender value after three years. This guaranteed surrender value will be 30% of total premiums paid. The surrender value becomes 50% between the fourth and the seventh years. The surrender value after seven years will have to be cleared by the regulator.
- The minimum death benefit for single premium policies will be higher of 125% of the single premium, or minimum guaranteed sum assured on maturity, or any absolute amount to be paid on death. For those with age more than 45 years, it will be 110% of the single premium.
- For regular premium products purchased by policyholder of age less than 45 years, it will be higher of 10 times the annualised premium or 105% of all premiums paid on date on death or minimum guaranteed sum assured on maturity, or any absolute amount to be paid on death. For those aged more than 45 years it will be seven times the annualised premium.
A MBA STUDENT VIUE INSURANCE AFTER SEPTEMBER2013
Jagannath Das
. Customer may also suffer buying Life Insurance post 30 Sept #1 -- As Guaranteed Surrender Value increases, this would decrease the Bonuses as Interest Income will go down as higher value of Surrender will strain the Fund.(No Insurer will pay higher Surrender Value out of its Pocket ) #2—We can see rise in Surrendering of Life Insurance Policies, Currently as Surrender Values are Low , Insurance acts as compulsory and disciplined savings over long term . Increase in Volume of Surrender would further drain Bonuses and Purpose of buying Life Insurance as Long term Protection and savings would be defeated. #3 – Commission on short term Policy (5 – 10 years) will increase which would encourage Agents to sell these policies , sell of Longer term polices would suffer which would not be beneficial for Growth of Insurance Sector. Regards Jagannath Das MBA (Insurance & Finance) M.com(Banking & Insurance Management) Associate , Insurance Institute of India
vinay mohanty
life insurance companies are awaiting approvals from the Insurance Regulatory and Development Authority (IRDA) for traditional products
As the deadline for life insurers to re-file their products nears, life insurance companies are awaiting approvals from the Insurance Regulatory and Development Authority (IRDA) for traditional products, which constitutes for a major part of their product portfolio.
According to the IRDA guidelines, life insurers are required to realign all their existing products by first October 2013 and withdraw those that are not approved by the IRDA. The new structure prescribes higher insurance cover plus other benefits, such as higher minimum surrender value and death benefit.
The IRDA has said that it is working overtime and will ensure that each company has at least 2-3 of its popular products to sell after October first. IRDA is granting priority-wise approval to life insurance companies and has approved 300 products so far. IRDA will approve 90 products by next week and remaining 60 products by October.
While private life insurance companies have got almost all their Unit-Linked Insurance Plan (ULIPs) approved by the IRDA, they are still awaiting for the approval for the popular endowment and traditional products which constitutes more than 50% of their portfolio.
Kotak Life Insurance, for instance, has got approval for all its ULIPs, but has got only one product approved under the traditional product platform which constitutes 85% of its portfolio.
On behalf of the industry, the Life Insurance Council has asked the IRDA to extend the October first deadline.
Insurers say that product re-filing is one part of the process as after re-filing there are multiple rounds of communication and clarification between the company and the regulator. After approval, companies will have to train the sales team and start marketing-related activities.
HDFC Life Insurance Company has launched four products that are compliant with new regulations.
vinay mohanty
liafi birth day and lalbadursastri jee ka janma tithi
2nd October LIAFI BIRTHDAY(pratistapana divas) plan for BIG celebration
Our Biloved Ex prime minister Mr LALBAHADUR SASTRI JEE KA BIRTHDAY
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
Reliance Life has launched life insurance policies in electronic demat format
Reliance Life Insurance has launched life insurance policies in electronic demat format across all its products.
This initiative follows the inauguration of the Insurance Regulatory and Development Authority’s (IRDA) repository system by Finance Minister, P. Chidambaram last week to enable and encourage policyholders to hold their policies in demat form.
Reliance Life is among the few first private life insurers to offer policyholders the option to hold their insurance policies in electronic demat form. This initiative is aimed at complimenting the regulator’s efforts to save hundreds of crores spent on printing, dispatching and storing insurance policies by the industry, said the company.
This initiative will make it easier for the customers to buy and monitor multiple life insurance policies in a single demat account. As per the process, policyholders can choose to open an e-insurance account with any one of the five approved insurance repositories by providing their KYC documents, which include identity and address proof etc.
Thereafter, the policyholder would be allotted a unique EI account number and will have the choice to dematerialize the existing policies in the EI account.
IRDA has approved five companies – Database Management Ltd, Central Insurance Repository Ltd, SHCIL Projects Ltd, CAMS Repository Services Ltd and Karvy Insurance Ltd – as insurance repositories.
The electronic insurance account will eliminate repetitive KYC requirements and provide one view of policies, premium paid and claim history and nominee detail and bring in all the benefits of demat to the life insurance business, including automatic reminders for premium.
Reliance Life would encourage its over 9 million customers to convert their insurance policies from physical format to demat form. The novel system will also undertake changes, modifications and revision in the insurance policy with speed and accuracy.
Dematerialization of policies will bring greater transparency and convenience to customers and it will also help reduce cost in issuing and maintaining life insurance policies.
More importantly, it will also ease problem of customer-contactability which is a huge challenge faced by the industry, the company said.
vinay mohantyLIAFI BIRTH DAY AND SASTRI JEE BIRTH DAY
2nd October LIAFI BIRTHDAY(pratistapana divas) plan for BIG celebration
Our Biloved Ex prime minister Mr LALBAHADUR SASTRI JEE KA BIRTHDAY
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
Now, go paperless with insurance policies too
24-Sep-2013
You already have your investments in stocks, bonds, mutual funds in paperless form. Now, it’s the turn of insurance policies to go paperless. Last week, the Insurance Regulatory and Development Authority (IRDA) finally launched the Insurance Repository System, which will allow you to hold your insurance policies in paperless form. That too, at no extra cost. Now, the question is: do you actually need to hold your insurance policies in paperless form? After all, you don’t buy and sell insurance policies on a regular basis, like stocks or mutual funds.
Most individuals would have a few life insurance policies and one or two health insurance covers. Do they need to convert these policies into the paperless form? Even if it doesn’t cost a penny? "Yes, it makes a lot of sense. Many policyholders buy several policies — say two life policies, one health, one motor and one home insurance cover — and are often not able to keep track of all of them. If they have an e-insurance account, they can view all the policies at one location. It helps them access the policy details in case they want to make any changes or assess their protection portfolio.
As of now, the service is free of charge, but opening an e-insurance account is advisable, even if a cost element is introduced in future ," says certified financial planner Suresh Sadagopan, founder, Ladder 7 Financial Advisories. Those who derive comfort in the touch-and-feel factor of physical documents, or wish to avoid the documentation involved in opening an e-insurance account, though, need not worry. Dematerialising your policy is simply an option given to policyholders and is not mandatory. Also, if required in future, you can get the electronic version converted back into the physical form by approaching your insurer for re-matting.
Benefits of e-insurance
First, since you do not have to preserve a hard copy of your policy document, you don’t run the risk of losing them. You can simply download a copy from your account, if required. Also, you don’t have to go through the KYC process every time you are buying an insurance product. "From the customer’s perspective, it will increase convenience. For example , issuance of duplicate policies in case the policy documents are misplaced becomes easier and the customers also have an easy access to the online repository. Also, they can now view all their investments (insurance policies) and manage their portfolio through a single window ," adds Rajesh Relan, managing director and country manager, PNB MetLife India. Claim settlement also will become easier.
"Policy benefits would be paid through electronic facility to the registered bank account, thus facilitating a more convenient settlement," explains Vikas Gujral, executive vice-president and head, customer service and operations, Max Life Insurance. However, policyholders can merely lodge a claim through the e-insurance account submission of the relevant documents will have to be done offline. It could also be easier to track policy details such as nominees, maturity amount and premium or renewal due date, as they will be available at a single location. It will also maintain a record of claims made or loans taken against the e-policies.
"For instance , any service request change in address or other KYC-related information can be sent to the IR and it will get updated across all your policies in the e-insurance account," Viiveck Verma, executive director, Karvy Insurance Repository. You can also make your annual premium payments through your account. In case of a unit-linked insurance policies (ULIP), you can put in a request to switch funds.
The workings
The insurance regulator has licensed five entities — NSDL Database Management, Central Insurance Repository , SHCIL Projects, Karvy Insurance Repository and CAMS Repository Services — to act as insurance repositories (IRs). These repositories will facilitate the opening of e-insurance accounts (eIAs), which will hold all your policies in the electronic form. The policyholder will not have to pay any fees, as the cost will be borne by the insurers. "At the moment, the facility is available only to individual life insurance policies. But in a couple of months, it will be extended to other life insurance and non-life policies as well," says Verma You have three options to open an account: you can approach one of the five repositories directly, route the request through your insurance company or enlist the services of an ’Approved Person’ appointed by the repositories.
You will have to complete the account opening form and submit the same along with a cancelled cheque, your photograph, address proof and KYC documents (either Aadhaar or PAN card). You can’t open multiple demat accounts, as IRDA allows just one e-insurance account per person. "After the process is completed, a welcome kit containing your 13-digit account number and your log-in ID, along with information on operating the account, will be dispatched to you. Your personal identification number (PIN) will be sent separately ," says Verma. Subsequently, you can start the process of digitising your policies. Here again, you need to fill up a form. The insurer will then co-ordinate with the repository and the data transmission and confirmation will take place.
If you are buying a new insurance cover, you can opt for an e-policy. You will have to quote your e-insurance account number and ask for a demat policy at the time of filling up the proposal form. "You can do so, provided the insurer you are buying the policy from has enrolled with at least one insurance repository and is offering einsurance policies," says Gujral. Once your account is opened, you can choose to appoint an authorised representative, say your lawyer or chartered accountant, who is acquainted with details of all your policies . "Given that many nominees are unaware of the existence of the life cover, appointing an authorised representative will help at the time of claim payout in case of the life assured’s death," says Verma.
Most individuals would have a few life insurance policies and one or two health insurance covers. Do they need to convert these policies into the paperless form? Even if it doesn’t cost a penny? "Yes, it makes a lot of sense. Many policyholders buy several policies — say two life policies, one health, one motor and one home insurance cover — and are often not able to keep track of all of them. If they have an e-insurance account, they can view all the policies at one location. It helps them access the policy details in case they want to make any changes or assess their protection portfolio.
As of now, the service is free of charge, but opening an e-insurance account is advisable, even if a cost element is introduced in future ," says certified financial planner Suresh Sadagopan, founder, Ladder 7 Financial Advisories. Those who derive comfort in the touch-and-feel factor of physical documents, or wish to avoid the documentation involved in opening an e-insurance account, though, need not worry. Dematerialising your policy is simply an option given to policyholders and is not mandatory. Also, if required in future, you can get the electronic version converted back into the physical form by approaching your insurer for re-matting.
Benefits of e-insurance
First, since you do not have to preserve a hard copy of your policy document, you don’t run the risk of losing them. You can simply download a copy from your account, if required. Also, you don’t have to go through the KYC process every time you are buying an insurance product. "From the customer’s perspective, it will increase convenience. For example , issuance of duplicate policies in case the policy documents are misplaced becomes easier and the customers also have an easy access to the online repository. Also, they can now view all their investments (insurance policies) and manage their portfolio through a single window ," adds Rajesh Relan, managing director and country manager, PNB MetLife India. Claim settlement also will become easier.
"Policy benefits would be paid through electronic facility to the registered bank account, thus facilitating a more convenient settlement," explains Vikas Gujral, executive vice-president and head, customer service and operations, Max Life Insurance. However, policyholders can merely lodge a claim through the e-insurance account submission of the relevant documents will have to be done offline. It could also be easier to track policy details such as nominees, maturity amount and premium or renewal due date, as they will be available at a single location. It will also maintain a record of claims made or loans taken against the e-policies.
"For instance , any service request change in address or other KYC-related information can be sent to the IR and it will get updated across all your policies in the e-insurance account," Viiveck Verma, executive director, Karvy Insurance Repository. You can also make your annual premium payments through your account. In case of a unit-linked insurance policies (ULIP), you can put in a request to switch funds.
The workings
The insurance regulator has licensed five entities — NSDL Database Management, Central Insurance Repository , SHCIL Projects, Karvy Insurance Repository and CAMS Repository Services — to act as insurance repositories (IRs). These repositories will facilitate the opening of e-insurance accounts (eIAs), which will hold all your policies in the electronic form. The policyholder will not have to pay any fees, as the cost will be borne by the insurers. "At the moment, the facility is available only to individual life insurance policies. But in a couple of months, it will be extended to other life insurance and non-life policies as well," says Verma You have three options to open an account: you can approach one of the five repositories directly, route the request through your insurance company or enlist the services of an ’Approved Person’ appointed by the repositories.
You will have to complete the account opening form and submit the same along with a cancelled cheque, your photograph, address proof and KYC documents (either Aadhaar or PAN card). You can’t open multiple demat accounts, as IRDA allows just one e-insurance account per person. "After the process is completed, a welcome kit containing your 13-digit account number and your log-in ID, along with information on operating the account, will be dispatched to you. Your personal identification number (PIN) will be sent separately ," says Verma. Subsequently, you can start the process of digitising your policies. Here again, you need to fill up a form. The insurer will then co-ordinate with the repository and the data transmission and confirmation will take place.
If you are buying a new insurance cover, you can opt for an e-policy. You will have to quote your e-insurance account number and ask for a demat policy at the time of filling up the proposal form. "You can do so, provided the insurer you are buying the policy from has enrolled with at least one insurance repository and is offering einsurance policies," says Gujral. Once your account is opened, you can choose to appoint an authorised representative, say your lawyer or chartered accountant, who is acquainted with details of all your policies . "Given that many nominees are unaware of the existence of the life cover, appointing an authorised representative will help at the time of claim payout in case of the life assured’s death," says Verma.
Source : ET
vinay mohantyHere’s how insurance schemes will look in their new avatar from October 1
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LIAFI BIRTH DAY ON 2ND OCTOBER
2nd October LIAFI BIRTHDAY(pratistapana divas) plan for BIG celebration
Our Biloved Ex prime minister Mr LALBAHADUR SASTRI JEE KA BIRTHDAY
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
REMEMBER HIM FOR HIS WORK " JAI JAWAN JAI KISHAN" JAI HINDUSTAN
WE NEVER SEE ANOTHER PM LIKE HIM
NEXT WE WILL SEE Mr NARNDRA
MODI
ALSO MAHATMA GANDHI JEE KA JANMADIVAS
vinay mohanty
ICICI Lombard General Insurance has launched ‘road side assistance cover’
Private insurer, ICICI Lombard General Insurance has launched ‘road side assistance cover’ for its private car insurance policyholders.
The add-on cover will provide complete assistance in case of an emergency like vehicle breakdown or accident. Premium for new cover will start from Rs 99.
In this cover, the company will arrange for accommodation in the event of vehicle of the insured being immobilized due to breakdown or accident. It will arrange for alternative transport, arrangement for fuel, and assistance to reach nearest garage among others.
vinay mohanty
the IRDA said that it is not looking to give any further extensions
The Life Insurance Council has asked the Insurance Regulatory and Development Authority (IRDA) for an extension in the deadline for the implementation of the new traditional product guidelines. From first October 2013, life insurers cannot sell products that do not conform to the new product guidelines for traditional products.
The Life Insurance Council said that after representation from the life insurers, it has proposed an extension of October first deadline.
Meanwhile, the IRDA said that it is not looking to give any further extensions to enter the new product regime, since most life insurance companies have filed adequate products for re-filing.
vinay mohanty
The Life Insurance Council said that after representation from the life insurers, it has proposed an extension of October first deadline.
Meanwhile, the IRDA said that it is not looking to give any further extensions to enter the new product regime, since most life insurance companies have filed adequate products for re-filing.
vinay mohanty
how our rupee will stronger?
Now why Indian Rupee is Depreciating ?
This is purely arithmetic of Demand and Supply. India’s Demand for Dollar is much more than Supply of Dollar
a) Our Imports are increasing and Exports are not increasing but rather decreasing and there is a Current Account Deficit.
b) CAD –Current Account Deficit represents difference between India’s Import of Goods and Services and its Export of goods and services plus the Remittances by NRI
c) India does not earn enough Forex to pay for its Imports
d) Uptill now we were able to manage the difference by incoming foreign direct investments from FIIs.
e) Till July Our Imports were to the tune of 550 billion Dollars and Exports were to the tune of about 309 Bn.Dollars
f) To meet this Gap we have to either Reduce our Imports or increase our Exports
g) Our Imports are large because of our large population and so large requirements
h) Exports are not increasing because of several factors like low level of production due to various factors like shortage of power, gas,coal, water and other infrastructure, delay in clearances and lack of supportive policies by the govt or so called Policy paralysis.
i) F I Is are withdrawing their investments to avoid further losses and New Investments are not coming because of fear of political instability, message of Retrspective Taxation and lack of supportive policies.
What are our Imports ? Let us look at what we import .
OIL Nearly 75 to 80 % of our imports is Oil ( Brent Crude ),
a) International prices of oil is continuously on rise
b) Now again with the fear of war in Cyria Prices may further go up.
c) Every one Rupee depreciation against Dollar India’s Oil bill goes up by Rs 8000 Crores. During last One month Rupee depreciated by Rs.10 say from 58 to 68 That means our oil bill has increased by 80000 crores.
d) Our local demand for oil is Never ending. New new cars are entering market everyday .There are cars and cars every where around but no Roads. Reason could be lack of cheap and efficient Public Transport . There is no sign that this position will improve in the near future. That is why people prefer to have their own vehicle. Therefore, demand for oil is Never ending.
GOLD
a) Second most important item of Import is Gold.
b) India is not producing even ONE GRAM of Gold but imported 1072 Tons of Gold last year. We are the largest importer of Gold in the world by paying Dollars
c) In 1999 the value of gold imported was Rs 17991 Crores and in 2012 we have imported Gold worth Rs.2,69, 563 Crores.
d) Govt. stock of Gold is about 360 Metric Tons. Private holding
of Gold in India is estimated to be around 35 k to 40 k MT
e) Gold held by Padmanabha temple in Kerala is yet to be accounted for..It is estimated to be worth around 2.2 Bn.Dollars.
f) Indians buy Gold traditionally as investment and hedge against Inflation .
g) There are no avenues in the Rural area for investments. No Share market ,No Mutual funds . Not much scope for Real Estate . Therefore, Gold is considered as best investment because Gold is Most Liquid Asset. That is why in India even in a smallest village you may not find a Ration shop but you will definitely find a Jewelry shop and at least one Money Lender (Savkar)
h) When there is ONE % increase in Income, Trade in Gold goes goes up by 1.5%
i) It is estimated that Gold in India if sold in the international market, it will take care of our Oil Bill for 5 years.
Electronics There is now craze for I phones, I-pads, laptops which are not
made in India . UP Govt imported 5 lac Laptops for free
distributors to Voters as Election promise..
Some how our EXPORTS are not matching Imports .That is why there is huge Current Account Deficit .We are not able to attract foreign Investments And there is no sign of improvement in the near future and therefore Rupee is Depreciating
IMPCT - of Rupee Depreciation
Positive –Who would benefit by Rupee Depreciation ?
a) Exporters will benefit because they will get more Rupees
b) IT Companies who have got their Contracts signed in Dollar Terms will get more Rupees when they receive the payment. TCS ,Infosys,Wipro Shares are doing very well .
c) NRIs who send remittances for investment or for maintenance of their parents/relatives will get more Rupees for the same amount of Dollar
Negative – Impact
a) Oil Companies will have to pay more rupees to get same amount of Dollars
b) Indian Companies who taken loans from abroad under ECB or other arrangements will have to pay more rupees for the same amount of Foreign Debt and for payment of installment / interest
c) Those who have sent their children abroad for education will have to pay more rupees for the same amount of Dollars to be remitted for their course fees, maintenance, lodging ,boarding, Laundry, hostel charges etc.
d) International Travel will become costly. Those Indian Tourists who are planning their tours abroad will have to pay more for their expenses abroad.
e) FMCGs who use imported materials in their product like cosmetics,
creams, shampoos will increase their prices.
f) Multi National Kitchen chains like McDonalds, KFC, Subway who import Kitchen Equipments will increase their prices.
g) All fancy gadgets like Mobile phones, Apple Phones, I-Phones, I-pads, Laptops will become costly.
h) Prices of imported Chemicals and fertilizers used by farmers will become costly so also the final product.
i) Lot of pulses and oilseeds are imported by India will become costlier.
Therefore , who will be most affected by Rupee Depreciation it will be the common Man who does not deal with Dollar who has not seen even One Dollar Note will be MOST affected guy by rupee Depreciation.
It is very simple. To bridge the Gap between Import and Export Govt. will require more Rupees to buy same amount of Dollars and from where these Extra Rupees will come ?
Govt. will have to increase the taxes and prices of petrol, diesel and gas .
And when prices of diesel and Petrol goes, cost of movement of essential commodities also go up which will lead to high Inflation.
Now Where do we go from here ? There is a fear that the International Credit Agencies will downgrade India which will send wrong and negative signals to Foreign Investors and therefore they will be discouraged from investing in India – so new Dollar investment will not come. There is a fear WAR in Cyria .
Therefore, I will not be surprised if the joke that Dollar will touch Age of -------------- does not come TRUE.
use only indian goods........use hindustani goods .............protect our rupee
vinay mohanty
This is purely arithmetic of Demand and Supply. India’s Demand for Dollar is much more than Supply of Dollar
a) Our Imports are increasing and Exports are not increasing but rather decreasing and there is a Current Account Deficit.
b) CAD –Current Account Deficit represents difference between India’s Import of Goods and Services and its Export of goods and services plus the Remittances by NRI
c) India does not earn enough Forex to pay for its Imports
d) Uptill now we were able to manage the difference by incoming foreign direct investments from FIIs.
e) Till July Our Imports were to the tune of 550 billion Dollars and Exports were to the tune of about 309 Bn.Dollars
f) To meet this Gap we have to either Reduce our Imports or increase our Exports
g) Our Imports are large because of our large population and so large requirements
h) Exports are not increasing because of several factors like low level of production due to various factors like shortage of power, gas,coal, water and other infrastructure, delay in clearances and lack of supportive policies by the govt or so called Policy paralysis.
i) F I Is are withdrawing their investments to avoid further losses and New Investments are not coming because of fear of political instability, message of Retrspective Taxation and lack of supportive policies.
What are our Imports ? Let us look at what we import .
OIL Nearly 75 to 80 % of our imports is Oil ( Brent Crude ),
a) International prices of oil is continuously on rise
b) Now again with the fear of war in Cyria Prices may further go up.
c) Every one Rupee depreciation against Dollar India’s Oil bill goes up by Rs 8000 Crores. During last One month Rupee depreciated by Rs.10 say from 58 to 68 That means our oil bill has increased by 80000 crores.
d) Our local demand for oil is Never ending. New new cars are entering market everyday .There are cars and cars every where around but no Roads. Reason could be lack of cheap and efficient Public Transport . There is no sign that this position will improve in the near future. That is why people prefer to have their own vehicle. Therefore, demand for oil is Never ending.
GOLD
a) Second most important item of Import is Gold.
b) India is not producing even ONE GRAM of Gold but imported 1072 Tons of Gold last year. We are the largest importer of Gold in the world by paying Dollars
c) In 1999 the value of gold imported was Rs 17991 Crores and in 2012 we have imported Gold worth Rs.2,69, 563 Crores.
d) Govt. stock of Gold is about 360 Metric Tons. Private holding
of Gold in India is estimated to be around 35 k to 40 k MT
e) Gold held by Padmanabha temple in Kerala is yet to be accounted for..It is estimated to be worth around 2.2 Bn.Dollars.
f) Indians buy Gold traditionally as investment and hedge against Inflation .
g) There are no avenues in the Rural area for investments. No Share market ,No Mutual funds . Not much scope for Real Estate . Therefore, Gold is considered as best investment because Gold is Most Liquid Asset. That is why in India even in a smallest village you may not find a Ration shop but you will definitely find a Jewelry shop and at least one Money Lender (Savkar)
h) When there is ONE % increase in Income, Trade in Gold goes goes up by 1.5%
i) It is estimated that Gold in India if sold in the international market, it will take care of our Oil Bill for 5 years.
Electronics There is now craze for I phones, I-pads, laptops which are not
made in India . UP Govt imported 5 lac Laptops for free
distributors to Voters as Election promise..
( Dond buy imported electronics, i pods, gold,
minimize use of oil/petrol/diesel)
EXPORTS a) Our exports are textiles, engineering goods ,leather, goods etc.Some how our EXPORTS are not matching Imports .That is why there is huge Current Account Deficit .We are not able to attract foreign Investments And there is no sign of improvement in the near future and therefore Rupee is Depreciating
IMPCT - of Rupee Depreciation
Positive –Who would benefit by Rupee Depreciation ?
a) Exporters will benefit because they will get more Rupees
b) IT Companies who have got their Contracts signed in Dollar Terms will get more Rupees when they receive the payment. TCS ,Infosys,Wipro Shares are doing very well .
c) NRIs who send remittances for investment or for maintenance of their parents/relatives will get more Rupees for the same amount of Dollar
Negative – Impact
a) Oil Companies will have to pay more rupees to get same amount of Dollars
b) Indian Companies who taken loans from abroad under ECB or other arrangements will have to pay more rupees for the same amount of Foreign Debt and for payment of installment / interest
c) Those who have sent their children abroad for education will have to pay more rupees for the same amount of Dollars to be remitted for their course fees, maintenance, lodging ,boarding, Laundry, hostel charges etc.
d) International Travel will become costly. Those Indian Tourists who are planning their tours abroad will have to pay more for their expenses abroad.
e) FMCGs who use imported materials in their product like cosmetics,
creams, shampoos will increase their prices.
f) Multi National Kitchen chains like McDonalds, KFC, Subway who import Kitchen Equipments will increase their prices.
g) All fancy gadgets like Mobile phones, Apple Phones, I-Phones, I-pads, Laptops will become costly.
h) Prices of imported Chemicals and fertilizers used by farmers will become costly so also the final product.
i) Lot of pulses and oilseeds are imported by India will become costlier.
Therefore , who will be most affected by Rupee Depreciation it will be the common Man who does not deal with Dollar who has not seen even One Dollar Note will be MOST affected guy by rupee Depreciation.
It is very simple. To bridge the Gap between Import and Export Govt. will require more Rupees to buy same amount of Dollars and from where these Extra Rupees will come ?
Govt. will have to increase the taxes and prices of petrol, diesel and gas .
And when prices of diesel and Petrol goes, cost of movement of essential commodities also go up which will lead to high Inflation.
Now Where do we go from here ? There is a fear that the International Credit Agencies will downgrade India which will send wrong and negative signals to Foreign Investors and therefore they will be discouraged from investing in India – so new Dollar investment will not come. There is a fear WAR in Cyria .
Therefore, I will not be surprised if the joke that Dollar will touch Age of -------------- does not come TRUE.
use only indian goods........use hindustani goods .............protect our rupee
vinay mohanty
Irda okays most plans ahead of October deadline
Shilpy Sinha, ET Bureau Sep 9, 2013, 04.26AM IST
MUMBAI: The Indian Insurance regulator has cleared most of the products filed by various insurance companies before the new norms kick in from October 1.
Leading life insurance companies, ranging from ICICI Prudential Life Insurance to HDFC Life, had filed close to 12-15 products each while state-run Life Insurance Corporation of India ( LIC) had applied for around 50 products with the Insurance Regulatory & Development Authority (Irda).
"There were close to 450 products filed with Irda, and it has cleared almost two-third of the proposals," said a company executive. For Irda, the product clearances are handled by the actuarial and the life department, and the large number of approvals have come in the absence of a member actuary. "We have already filed most of our products and started receiving approvals too," said Niraj Shah, senior vice-president, head of products at ICICI Prudential Life Insurance.
"Recently, we launched a plan in compliance with the new guidelines. We hope to launch a reasonable number of products by October," he added.
The regulator, in the new norms, has made traditional products at par with unit-linked insurance products, linked commission to policy term, and asked companies to specify the minimum cover, depending on the age of the customer.
If the customer is under 45 years, the cover will be 10 times the annual premium or 105% of all premiums paid as on the date of death, whichever is higher. Also, products like the highest net asset value guarantee and fundbased guarantee will not be available in the market from October 1.
Rules of surrender will change and all policies surrendered between the fourth and fifth years will acquire a surrender value of 50% of the total premium paid minus the less survival benefits already paid.
Products where premium rate, assumptions and benefits do not change, can be certified by the appointed actuary of the company and launched in the market. Delay in clearances can affect the first year income of insurance companies.
The regulator had given one-month extension for complying with similar norms in group products. The industry is expecting a similar extension for individual category products.
Private Life Insurers Cut Branches, LIC Increases
The number of branches operated by life insurers across India has come down by over 10% in last two years, primarily because of branch closures by private players even as state-run Life Insurance Corporation of India (LIC) expanded its footprint.
The total number of branches or offices operated by private life insurers stood at 6,759 at the end of FY’13, down by 1,416 branches from the level of 8,175 branches two years ago on March 31, 2011.
During the same period, public sector player LIC’s network grew by 155 to 3,526 offices as on March 31, 2013.
Despite LIC’s expanded network, the cumulative number of offices for all life insurers fell by 1,261 in last two financial years to 10,285 as on March 31, 2013, as a number of big private players, including ICICI Prudential, Bajaj Allianz Life and HDFC Standard Life, cut down on their branch network.
The number of branches operated by private life insurers declined by 950 during FY’13 alone, while 463 branches were closed during FY’12.
The business for many life insurers has been stressed for last couple of years and could be a possible reason behind closure of branches.
The number of offices operated by ICICI Prudential declined by 845 branches between FY’10-11 and FY’12-13, while Bajaj Allianz witnessed a reduction of 110 branches in its network during the same period.
HDFC Standard Life and Reliance Life also saw their branch network declining by 48 and 18, respectively.
The few private players that witnessed an increase in number of offices in last two financial years are Birla Sun Life, IDBI, IndiaFirst, Sahara, Shriram Life and Star Union Dai-Ichi Life.
While LIC has expanded its branch network in last two years, the number of its agents has declined in this period from about 13.37 lakh to nearly 11.73 lakh as on March 31, 2013.
vinay mohanty
Chidambaram to launch insurance repository by IRDA
Hyderabad: Union Finance Minister P Chidambaram is expected to inaugurate IRDA's insurance repositories here on September 16.
According to a note by Insurance Regulatory and Development Authority (IRDA), the insurance repository system to be set up by the regulator will be the first of its kind in the world.
IRDA recently said five companies have been given the status of insurance repositories and provided with a licence that will be valid till July 31, 2014.
The five companies are: NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository Limited.
IRDA recently said that insurers can enter into agreements with one or more repositories.
According to IRDA, the objective of creating an insurance repository is to provide policy holders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy in order to bring about efficiency, transparency and cost reduction in the issuance and maintenance of insurance policies.
The repository will issue a unique code number to all policy holders, and policies of those persons will come under that number. It maintains the history of the policy details such as claims, nominees, beneficiaries and other data.
vinay mohanty
According to a note by Insurance Regulatory and Development Authority (IRDA), the insurance repository system to be set up by the regulator will be the first of its kind in the world.
IRDA recently said five companies have been given the status of insurance repositories and provided with a licence that will be valid till July 31, 2014.
The five companies are: NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository Limited.
IRDA recently said that insurers can enter into agreements with one or more repositories.
According to IRDA, the objective of creating an insurance repository is to provide policy holders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy in order to bring about efficiency, transparency and cost reduction in the issuance and maintenance of insurance policies.
The repository will issue a unique code number to all policy holders, and policies of those persons will come under that number. It maintains the history of the policy details such as claims, nominees, beneficiaries and other data.
vinay mohanty
goup medicalime age of admission incresed from 80 to 85
Dear
friends as per letest informmaiton all club members goup medicalime age of admission incresed from 80 to 85
vinay mohanty
Operators, banks, insurance companies to face action on pesky calls
Press Trust of India | Updated On: August 22, 2013 18:59 (IST)
New Delhi: Coming down heavily on pesky callers, telecom regulator Trai today said phone connections of banks, insurance firms and realty players will be disconnected if rules of unwanted calls and messages are flouted by them, or on their behalf.The new rules issued by the authority include a fine of Rs. 5,000 per complaint on a telecom firm if found that the unsolicited commercial call (UCC) or SMS was made by unregistered telemarketers using its network.
Trai said, "In cases where the UCC contains reference to another telephone number or an entity such as banks, insurance companies, builders for which the commercial transaction has been solicited, the telecom resources issued to the subscriber or entity for which commercial transaction has been solicited, shall be disconnected across all service providers..."
A large number of complaints pertain to calls or messages received by consumers on behalf of banks, insurance companies, builders and so on, it observed.
Trai said: "These organisations by engaging such persons who are not registered as telemarketers with the Authority are violating the Regulations. These organisations marketing their products through retailers, distributors and franchisees are thus responsible for the acts of their agents."
The Telecom Commercial Communications Customer Preference (Thirteenth Amendment) Regulations, 2013 said: "If on verification of a complaint it is found that the UCC has been sent by a subscriber who is not registered as a telemarketer, the service provider shall be liable to pay financial disincentives of Rs. 5000 on each complaint."
The Authority has noted with concern, the continued problem faced by customers receiving UCC from persons who are not registered as telemarketers. Such persons deliberately masquerade as normal subscribers for engaging in telemarketing activities, it added.
The telecom regulator said: "The major reason for not registering with Trai is that such telemarketers avoid payment of registration fees, promotional SMS charge of five paise per SMS and are able to reach out to even those customers who are registered in the National Customer Preference Register as they are outside the ambit of the restrictions imposed by Trai."
Availability of cheap SMS packs, marketed by service providers, and engagement of such telemarketers by persons or agencies for sending their promotional messages are the other reasons for the continued menace of UCC by such persons.
Trai observed that such telemarketing activities are encouraged by service providers by offering attractive SMS packages and by allowing bulk/multiple connections, without following the CAF directives issued by the Department of Telecom.
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