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High Court notice to 25 insurance companies on PIL asking pre-packaged rates
The Bombay High Court today issued notices to 25 non-life insurance companies on a PIL seeking pre-packaged compensation for 42 ailments, covered under medical insurance policies, on the basis of sum insured and on the type of the hospital.
The notices were issued by a bench headed by Chief Justice Mohit Shah on a PIL filed by social worker Gaurang Damani detailing hardships faced by mediclaim policy-holders.
"We are not here to decide individual matters but we want the consumers to benefit. They should know in advance how much package would they get to undergo treatment for a particular illness. This will enable an insured to decide in which hospital he may undergo treatment," said the bench.
The court had earlier asked Insurance Regulator and Development Authority (IRDA) to come out with pre-packaged compensation for the ailments covered under the medical insurance policies. The court had asked IRDA to include such guidelines in the regulations framed by it this year.
However, IRDA, today, moved a chambers summons saying such a step was practically not possible to implement.
General Insurance Council (GIC), which represents collective interests of the non-life insurance companies in the country, said that 25 such insurance companies should be made respondents to this petition.
The GIC said there should be uniformity in packages offered in insurance policies. It demanded that a regulator should be appointed to regulate the hospitals because in the existing scenario different hospitals were charging varying amounts for treating patients for the same kind of illness. The petitioner argued that there was a provision in the Clinical Establishments (Registration and Regulation) Act to appoint a regulator to regulate the hospitals. Yet, IRDA had not appointed such an authority.
In the interest of consumers and policy holders, a regulator should be appointed, he urged the court.
The petitioner submitted that "there have been instances where patients, who have undergone the same kind of treatment at the same hospital, have been disbursed different insurance amounts. If pre-packaging was made available, then the insured can also choose the kind of hospital in which he wants to be treated," his petition said.
vinay mohantyLIC to offer policies in electronic format from January | Business Line
Come January, the 25-crore policyholders of Life Insurance Corporation will be able to hold their insurance
policies in the electronic form.
policies in the electronic form.
The life insurer expects to tie-up with insurance repositories in the next two months, said a top official.
S.K. Roy, Chairman, LIC, said, “The guidelines (by the insurance regulator) for insurance repositories say it
(tie-up with insurance repositories) is mandatory for a certain class of products and we have to be compliant.
We are examining the matter and I expect it to be finalised in the next couple of months.”
(tie-up with insurance repositories) is mandatory for a certain class of products and we have to be compliant.
We are examining the matter and I expect it to be finalised in the next couple of months.”
The benefit of holding policies electronically is that there’s no risk of losing the physical document. Also,
policyholders can pay their premiums online and renew policies through the repositories’ portals.
policyholders can pay their premiums online and renew policies through the repositories’ portals.
“It is a game changing intervention by the regulator which has huge implications,” Roy said.
Recently, the Insurance Regulatory and Development Authority permitted five companies to act as
insurance repositories — NSDL Database Management, SHCIL Projects, Central Insurance Repository,
Karvy Insurance Repository and CAMS Repository Services.
insurance repositories — NSDL Database Management, SHCIL Projects, Central Insurance Repository,
Karvy Insurance Repository and CAMS Repository Services.
Policyholders will not be charged for the electronic facility as the insurance repositories will be paid directly
by insurance companies.
by insurance companies.
Currently, each policyholder can open only one e-Insurance Account with an insurance repository.
Many private insurance companies have already tied-up with one or more insurance repositories.
Many private insurance companies have already tied-up with one or more insurance repositories.
“While it is currently not mandatory for a life insurer to tie-up with all insurance repositories, it may
soon be mandated as only then policyholders can hold all their policies under a single e-insurance account,”
said a senior official from an insurance repository.
soon be mandated as only then policyholders can hold all their policies under a single e-insurance account,”
said a senior official from an insurance repository.
deepa.nair@thehindu.co.in
(This article was published in the Business Line print edition dated October 28, 2013)
vinay mohantystatue of unity hindustan, gujurat 31 october Sardar patels janma tithi
vinay mohanty
Be ready LIC is going to remove all the plans from the market till Dec, with new ones
Dear friends
as said by IRDA in the circular of 30th sept , LIC is going to remove all the plans from the market till Dec in phase manner. means any plan will be withdrawn any day, similarly new plans will be lauched in phase manner so that on 1st of Jan 2014 we will have sufficient no. of plans in order to continue with our routine.
So be ready for some more plans to be withdrawn like it was done with health plans.
best wishes,
Regards
vinay mohanty
jeevan sugandh and bima viswas will lanch in 1st november2013
Two new plans Table 934 (Jeevan Sugandh) & 936 (Bima Vishwas) to be launched
on 01/11/2013.
vinay mohanty
on 01/11/2013.
vinay mohanty
why should i buy from you?
Why should I buy from you?
I have written before of the three universal marketing questions anyone selling his or her services needs to be able to answer:
- What are you offering?
- To whom are you offering it?
- Why should prospects hire you?
The third question - the "why" - seems to be the most difficult for many salespeople to answer.
"You should work with me because I really care about my clients," said Terry, a two-year veteran financial advisor, in a role-playing session with me.
"But that's exactly what [Terry's competitor] said to me," I responded. "Why should I choose you over her?" Terry was stumped.
"What is different about you?"
"Well, I'm not really different in any particular way," he stated. "We all provide the same kinds of planning services and give advice aimed at the same goals. I just know I would be more caring than anyone else."
"What makes you think so?"
Terry thought for another moment, then responded, "My father died when I was just a teenager and left us with no money, so I know how important it is to be financially prepared. I made up my mind that I would spend my life helping people be prepared in that way."
As soon as the words were out of his mouth, Terry's face brightened. He realized he had stumbled onto the perfect answer (for him) to the question: "Why you?"
If you can tell people why they should hire you or use your services in a way that distinguishes you from the other crayons in the box - perhaps by using powerful, personal stories or strong metaphors - you'll provide prospects with a compelling reason to hire you.
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6 dumb mistakes which you make while writing Cheque’s – Dont do it !
6 dumb mistakes which you make while writing Cheque’s – Dont do it !
vinay mohanty
RECYCLING FROM ULIP SURRENDERS FOR NB CIRCULAR
Ref: CO/CRM/PS/2013-14/36 03/10/2013
To,
All Zonal Managers,
All Regional Managers (CRM)
All Sr/Divisional Managers,
M.D.C., Audit & Inspection
Re: Reinvestment of amount of ULIP (full/partial) Surrender amount towards
Proposal Deposit
We have issued a circular letter ref : CO/CRM/PS/18 dated 16th February, 2013
restricting recycling of any amount for New Business Proposal deposit from
Surrender and Loan amount.
The matter has since been reviewed and it has now been decided modify
instructions partially to allow reinvestment of amount for New Business from
full/partial surrender of ULIP policies. For allowing reinvestment, the following
procedure should be followed strictly at the time of Surrender of the policy.
1. Written request from the policyholder specifically mentioning about the
reinvestment of surrender amount towards NB proposal.
2. Certification on the above letter by Head of the Branch/ABM (S)/HOD (NB)
with specific wording that “ Life assured has been educated about the
reinvestment decision and has confirmed his acceptance for the same” as
per the proforma enclosed.
3. Reinvestment of surrender amount should be allowed only for proposals
introduced on the life of his/her own life or on the life of spouse /children.
4. The actual amount to be reinvested should be specifically mentioned in the
application.
5. Amount less than actual ULIP Surrender amount can also be allowed to be
reinvested and the balance amount can be paid to policyholder by
NEFT/cheque.
6. Reinvestment should be strictly processed though module only.
As per present module provisions, there is no option to recycle the amount directly
towards Proposal Deposit. SDC will come up with the modular provision to recycle
amount of ULIP Surrender. The intimation regarding modular provision will be
given as soon as the same is released by CO-ITSDC.
Please bring this to notice of all the offices under your jurisdiction.
Executive Director (CRM)
Format of Letter to be submitted by policyholder for Reinvestment of ULIP
Surrender Amount towards New Business proposal.
The Chief/Sr/Branch Manager,
LIC of India,
Branch
Sir/Madam,
Re: Reinvestment of ULIP surrender for NB proposal deposit.
I wish to Partially/Fully Surrender my ULIP policy number ------------------- on my
own life and want to reinvest from this Surrender amount, the amount of RS -----
----------- (Amount to be reinvested) towards new proposal, on the life of -------------
-----------------------( Name of a person on whose life new insurance is proposed)
relation ------------------- (Wife/husband/son/daughter).
I hereby confirm that I have been educated in respect of reinvestment of surrender
amount and have my consent for the same.
Yours faithfully,
Signature of Life Assured
Certification
To,
All Zonal Managers,
All Regional Managers (CRM)
All Sr/Divisional Managers,
M.D.C., Audit & Inspection
Re: Reinvestment of amount of ULIP (full/partial) Surrender amount towards
Proposal Deposit
We have issued a circular letter ref : CO/CRM/PS/18 dated 16th February, 2013
restricting recycling of any amount for New Business Proposal deposit from
Surrender and Loan amount.
The matter has since been reviewed and it has now been decided modify
instructions partially to allow reinvestment of amount for New Business from
full/partial surrender of ULIP policies. For allowing reinvestment, the following
procedure should be followed strictly at the time of Surrender of the policy.
1. Written request from the policyholder specifically mentioning about the
reinvestment of surrender amount towards NB proposal.
2. Certification on the above letter by Head of the Branch/ABM (S)/HOD (NB)
with specific wording that “ Life assured has been educated about the
reinvestment decision and has confirmed his acceptance for the same” as
per the proforma enclosed.
3. Reinvestment of surrender amount should be allowed only for proposals
introduced on the life of his/her own life or on the life of spouse /children.
4. The actual amount to be reinvested should be specifically mentioned in the
application.
5. Amount less than actual ULIP Surrender amount can also be allowed to be
reinvested and the balance amount can be paid to policyholder by
NEFT/cheque.
6. Reinvestment should be strictly processed though module only.
As per present module provisions, there is no option to recycle the amount directly
towards Proposal Deposit. SDC will come up with the modular provision to recycle
amount of ULIP Surrender. The intimation regarding modular provision will be
given as soon as the same is released by CO-ITSDC.
Please bring this to notice of all the offices under your jurisdiction.
Executive Director (CRM)
Format of Letter to be submitted by policyholder for Reinvestment of ULIP
Surrender Amount towards New Business proposal.
The Chief/Sr/Branch Manager,
LIC of India,
Branch
Sir/Madam,
Re: Reinvestment of ULIP surrender for NB proposal deposit.
I wish to Partially/Fully Surrender my ULIP policy number ------------------- on my
own life and want to reinvest from this Surrender amount, the amount of RS -----
----------- (Amount to be reinvested) towards new proposal, on the life of -------------
-----------------------( Name of a person on whose life new insurance is proposed)
relation ------------------- (Wife/husband/son/daughter).
I hereby confirm that I have been educated in respect of reinvestment of surrender
amount and have my consent for the same.
Yours faithfully,
Signature of Life Assured
Certification
IRDA's new norms to benefit policy-holders but hurt agents ET
The Sarawade household
in New Delhi, like many others, is worried about its domestic economics these
days. The worry is not due to the economic slowdown alone, but the fear of what
may be in store for them because of insurance regulatory changes for
traditional products that may erode their income. The Insurance Regulatory and
Development Authority, or Irda, will herald a new era come January, aiming to
reduce costs for policy holders, raise returns, and increase the cover after
death. It will also cut to size insurance companies that have been benefiting
more from discontinuation of policies than earning from investments.
//But an unintended consequence may be that
the intermediaries who have been at the centre of growing the industry, by
whatever means, may be at the receiving end. Indeed, the measures may be
something akin to what the Securities & Exchange Board of India's did three
years ago. "It will be very difficult to sustain livelihood by selling
insurance anymore," says Naina Sarawade, the 44 year-old housewife who
also doubles up as an insurance agent to support her husband's policy sales.
"We will go back 10 to 15 years, when we were selling long-term plans and
the business was low. It will be very difficult to switch with uncertainty of
jobs and income. "
//But an unintended consequence may be that
the intermediaries who have been at the centre of growing the industry, by
whatever means, may be at the receiving end. Indeed, the measures may be
something akin to what the Securities & Exchange Board of India's did three
years ago. "It will be very difficult to sustain livelihood by selling
insurance anymore," says Naina Sarawade, the 44 year-old housewife who
also doubles up as an insurance agent to support her husband's policy sales.
"We will go back 10 to 15 years, when we were selling long-term plans and
the business was low. It will be very difficult to switch with uncertainty of
jobs and income. "
Insurance policies,
peddled by 23.59-lakh agents across the country, will have a makeover that may
see a quarter of them, mostly recent entrants to the profession, going off the
business as commission from the sale of policies dwindles under the new scheme
of things. Although financial products have been getting more complicated,
insurance middlemen have been selling policies relying on statistics &
returns of the past, when hardly anyone questioned about what the unwritten
cost of buying such policies was.
A substantial portion
of investors' contribution toward policies was flowing into agents' bank
accounts in the form of commission, which in some cases was as high as 35% in
the first year. The maximum commission that can be paid to the agent under the
new dispensation is capped at 15% in the first year, 7.5% in the second and 5%
from the third year. At present, companies are allowed to pay 25% in the first
year, 7.5% in the second year and 5% from the third year onwards.
Commissions are lesser
for shorter-term products and increase progressively depending on the length of
the policy life. New policies should have a minimum premium paying term of five
years for agents to be eligible to receive these payments. In most cases,
investors found out to their surprise that though an insurance policy might
have been sold like a fixed deposit or easily saleable instrument, it offered
none of the benefits of such products.
Many a time, when out
of financial compulsion, a policyholder wanted to exit the investment, he was
at the mercy of the insurer who would, at his discretion, decide how much the
investor gets. In most cases, it was a paltry sum of 50% of the total with the
new regime, scheduled to begin by January 1, signed on by the previous Irda
chairman JR Hari Narayan. It was to begin from October 1, but current Irda
chairman TS Vijayan decided to provide three more months to insurance companies
to adhere to the new norms.
When Sebi banned
mutual funds from paying commission to agents from investors' money, the number
of mutual fund agents diminished to just a fourth to 20,000 active distributors
from 80,000 in 2009. That created quite a flutter, but the markets regulator
stood its ground. The jury is out on whether it benefited investors, or just
threw some out of jobs. Indeed, yet another product, unit linked insurance
plans, or Ulips, faced similar fate at Irda's hands. When commissions on Ulips
were brought down to 7%-10%, from as high as 15%-20%, their sales plunged to Rs
69,650 crore a year, from Rs 1,09,036 crore in 2010-11.
From now on, investors
surrendering a policy will get at least 30% of the money paid after completing
five terms unlike in the past when the company used its discretion to decide
the surrender value. That still is not much and is tilted towards insurance
companies and punishes savers. Goldman Sachs estimated that the six top life
insurance companies in India earned 37% of their March 2012 profits of Rs 4,182
crore from lapsed policies. But the flip side of these measures aimed at
protecting consumer interest is that returns from vestments may also be lower
and the industry may not be able to benefit from short-term instruments
capturing the flavour of a season. The fact that fund managers in insurance
firms have to return a minimum amount will force them to go for safer fixed
income securities, rather than equities.
"In
participating products (where bonuses are paid regularly), investments have to
go into safer instruments, which will bring down the return for policyholders
and margins for companies," said Sanjiv Pujari, head, actuary, SBI Life."There is a trade off of giving
guarantees as the cost will have to be borne by existing policyholders."
At present, 30-40% of investible amount under participating products are
invested in equities, which enhance returns over a longer period, unlike fixed
income securities. That allocation may fall to 20% in the new regime, fund
managers estimate.
// It may be too early to declare that
insurance industry is moving towards a structure where the cost of entry and
exit will match that of others such as mutual funds, bank deposits, or bond
purchases. But it promises to be better than what it is now, if implemented
without dilution.But life may not be the same for agents. The ubiquitous agents
risk being washed away by the changing tide if they are not willing to change
with the times. "Any change is difficult but unless you adopt new ideas,
you will not be able to succeed. Now, agents will have to work intelligently
besides working hard," said Bharat Parekh, an agent with Life Insurance
Corporation. "Whatever happens, insurance companies can run their show
only through individual agents, so they are investing in retaining agents. A
sharp agent will adopt to the change but those who are not willing to will go
out of business."CM club convention venue address at Hyderabad
CM Club convention venue address is HICC (Hyderabad International Convention Centre) Near Hitech city,After Silpa Ramam, HITEX, Hyderabad.
vinay mohanty
vinay mohanty
pree CM CONVENTION ON 7Th octobrt 2013 at 5pm
VENU ADDRESS
pree CM CONVENTION ON 7Th octobrt 2013 at 5pm
MAHARASTRA RANGAYAN,
NUTAN MARATHISCHOOL COMPOUND
WALCHAND PLACE
NEAR PAHARGANJ
NEWDELLHI 55
Vinay mohanty
pree CM CONVENTION ON 7Th octobrt 2013 at 5pm
MAHARASTRA RANGAYAN,
NUTAN MARATHISCHOOL COMPOUND
WALCHAND PLACE
NEAR PAHARGANJ
NEWDELLHI 55
Vinay mohanty
HAPPY LIAFI DAY
First of all i would like congratulate all of you for grand mega 50th year anniversary of our great federation LIAFI 1964.on this occassion let all of us solute our great great leaders for their selfless service to our community. LIAFI -50 it is not an easy task of fulfilling 50 years. Behind this there is selfless service, financial support and whole heartedly involvement from our great leaders. LIAFI-50 is equall to any national political party. No regional party is not completed 50 years. We are proud to be a part of LIAFI.
LIAFI BIRTH DAY , SASTRIJEE 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
Life Insurance Agents To Get Persistency-Linked Incentives
Hit by a drop in customer’s disposable incomes and a fall in new business premia, life insurers are pulling out all stops to ensure persistency rates remain high. Now, the commissions and incentives of agents are being linked to persistency rates, apart from the business generated.
Agent’s commissions are calculated as the percentage of premium paid by a customer. While the first year commission for a new policy currently stands at 14%, the Insurance Regulatory and Development Authority’s (IRDA) new traditional product norms set it at 15%.
In its non-linked product guidelines to be implemented from first October 2013, IRDA has said commission rates for policies with longer tenure would be higher than those with shorter term policies. For policies with tenures of at least 12 years, the commission would be 35% of the premium.
Insurers say that to get the most out of agents, they are looking to incentivise agents in a different way. Agents do not get incentivised if they get volumes; they are better incentivised for selling the correct policy to a customer.
A correct policy would be one that would address the needs of the customer. This made agents responsible towards customers and the client was satisfied with the service. This way, the agent wasn’t in a rush to sell a large number of policies to secure more commission, but was able to sell the best policies to different customers.
In 2011, IRDA had brought out persistency guidelines for individual life insurance agents. It had said that the average persistency rate was uniformly set at 50%, which was to be reckoned on the number of policies alone. The persistency rate requirement would be effective for agency renewals due from first July, 2014.
In 2011, private life insurers had started the practice of clawback of commission to improve the persistency ratio of agents and arrest lapses in insurance policies. The clawback clause helped insurers recover a part or all of the commissions paid to agents if the policy was cancelled within a given period.
Once the new product guidelines come into effect, the clawback of commission would be done away; however, added incentives and bonuses would not be given to agents with poor persistency rates.
Insurers say that they encourage their sales team to do need-based selling, as this ensure that all –the customer, the company and agent – benefit.
As a process, insurers ensure that if the 13th month persistency falls for any agent, it impacts commission, rewards and recognition. IRDA had issued guidelines on non-renewal of licenses if the 13th month persistency for agent fell below the threshold.
Life insurers say that with the new norms set to be implemented from first October, 2013, persistency would assume greater importance in the life insurance industry. Apart from the emphasis on renewals commission, special benefits such as club membership and promotions were offered to agents with higher persistency rates.
While earlier, the life insurance industry had base commission and added bonus for agents performing well, increased competition had led to insurers paying all cash components to agents upfront.
With the new norms in place, productivity and persistency bonuses are expected to return to the industry. Bonuses apart from the base commission would be based on whether agents were able to motivate customers to renew policies.
Only New Individual Health Insurance Policies Will Have Free-Look Period
Only new health insurance policies except those with a tenure of less than a year will have a free look period. The Insurance Regulatory and Development Authority (IRDA) made these changes, in its modifications to its health insurance regulations that come into effect from next month. Earlier all health insurance policies were to have free look period.
Further, IRDA said that cumulative bonus that is not allowed on benefit based policies, will now have an exemption in personal accident covers. The concept works on the same lines as the No-Claim Bonus on your car insurance.
Policyholders, who have not made any claim in a year, can use the bonus to their benefit the following year. Insurers could either offer an increase in the sum insured or discount on the premium payable, or a combination of both.
Insurers, under the new guidelines, were allowed to provide coverage to non-allopathic treatments provided the treatment was undergone in a government hospital or in any institute recognized by government and/ or accredited by Quality Council of India/ National Accreditation Board on Health or other suitable institutions.
Now IRDA has said that they can provide coverage to non-allopathic treatments, only if the treatment was undergone in a government hospital or in any institute recognized by government and/ or accredited by Quality Council of India/ National Accreditation Board on Health.
vinay mohanty
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