Friday, March 9, 2012

Total premium collection dips by 3 pct: Life Insurance Council


Mumbai: Life insurance industry witnessed a marginal decline of 3 per cent in the total premium collection at Rs 1,80,240 crore for the period ending December 31, 2011. The total premium collected by industry stood at Rs 1,86,396 crore for the corresponding period of previous year, the Life Insurance Council today said in a release here. The new business premium for the industry also decreased by 17 per cent year-on-year to Rs 71,953 crore from Rs 86,698 crore in the last nine months.

This trend of decreasing new premiums is due to near disappearance of new individual pension policies, it said. As per the provisional figures released by council the total new premium collected under the individual pension category was Rs 1,008 crore compared to Rs 18,417 crore for the same period in 2010 and Rs 19,406 crore in 2009.
The total number of individual pension policies sold also came down to 0.11 million from 3.43 million year-on-year. In terms of inclusive growth, the life insurance industry has covered more than 97.76 lakh lives in social sector and sold 81.6 lakh policies in rural areas as on December 31, 2011.
However, total renewal premium for April-December 31, 2011 has grown at of 9 per cent year-on-year. The renewal premium for traditional policies grew by 14 per cent to Rs 73,162 crore from Rs 63,962 crore last year. The unit-linked renewal premium collection dropped marginally by 1 per cent to Rs 35,070 crore from Rs 35,561 crore.
The life insurance industry has infused Rs 1,977 crore (USD 400 million) as capital in last nine months.
"The infusion of capital in tune of USD 400 million in 9 months indicates that promoters whether foreign or domestic have a long term appetite. As insurance has a long gestation period and companies show losses for first 10 to 15 years, the company's need to be supported by capital," Life Insurance Council Secretary General S B Mathur said. He further said that given the current economic scenario where capital is scarce and foreign promoters want to stay invested in life insurance in India, the time is opportune for increasing the Foreign Direct Investment limit in insurance to 49 per cent.
As per the data, investment in infrastructure by the life insurers stood at Rs 2,06,000 crore till December 31, 2011. The industry continued its focus on providing protection and has paid death benefits to the kin's of the policyholders in tune of Rs 8,057 crore, compared to Rs 7,436 crore last year.
The total number of individual agents till December 31, 2011 were 23.78 lakh from to 27.10 lakh last year. The percentage of new business premium collection from this traditional channel has decreased from 55 per cent last year to 44 per cent this year.

Total premium collection dips by 3 pct: Life Insurance Council


Mumbai: Life insurance industry witnessed a marginal decline of 3 per cent in the total premium collection at Rs 1,80,240 crore for the period ending December 31, 2011. The total premium collected by industry stood at Rs 1,86,396 crore for the corresponding period of previous year, the Life Insurance Council today said in a release here. The new business premium for the industry also decreased by 17 per cent year-on-year to Rs 71,953 crore from Rs 86,698 crore in the last nine months.

This trend of decreasing new premiums is due to near disappearance of new individual pension policies, it said. As per the provisional figures released by council the total new premium collected under the individual pension category was Rs 1,008 crore compared to Rs 18,417 crore for the same period in 2010 and Rs 19,406 crore in 2009.
The total number of individual pension policies sold also came down to 0.11 million from 3.43 million year-on-year. In terms of inclusive growth, the life insurance industry has covered more than 97.76 lakh lives in social sector and sold 81.6 lakh policies in rural areas as on December 31, 2011.
However, total renewal premium for April-December 31, 2011 has grown at of 9 per cent year-on-year. The renewal premium for traditional policies grew by 14 per cent to Rs 73,162 crore from Rs 63,962 crore last year. The unit-linked renewal premium collection dropped marginally by 1 per cent to Rs 35,070 crore from Rs 35,561 crore.
The life insurance industry has infused Rs 1,977 crore (USD 400 million) as capital in last nine months.
"The infusion of capital in tune of USD 400 million in 9 months indicates that promoters whether foreign or domestic have a long term appetite. As insurance has a long gestation period and companies show losses for first 10 to 15 years, the company's need to be supported by capital," Life Insurance Council Secretary General S B Mathur said. He further said that given the current economic scenario where capital is scarce and foreign promoters want to stay invested in life insurance in India, the time is opportune for increasing the Foreign Direct Investment limit in insurance to 49 per cent.
As per the data, investment in infrastructure by the life insurers stood at Rs 2,06,000 crore till December 31, 2011. The industry continued its focus on providing protection and has paid death benefits to the kin's of the policyholders in tune of Rs 8,057 crore, compared to Rs 7,436 crore last year.
The total number of individual agents till December 31, 2011 were 23.78 lakh from to 27.10 lakh last year. The percentage of new business premium collection from this traditional channel has decreased from 55 per cent last year to 44 per cent this year.

Sahara Life Ins penalised Rs 12 lakh


New Delhi: Insurance sector regulator IRDA today imposed a penalty of Rs 12 lakh on Sahara Life Insurance Company promoted by Subrata Roy-led Sahara Group for violation of various regulations, including delay in death claim settlement.
"Accordingly, in exercise of the powers conferred upon me under the provisions of the Insurance Act, 1938, I hereby direct the insurer to remit the penalty of Rs 12 lakh," IRDA Chairman J Hari Narayan said in an order against insurer.
The company, set up in 2004, has been directed to pay the fine within a period of 15 days from the date of receipt of the order, it said.
The Insurance Regulatory and Development Authority (IRDA) observed that the insurer allowed unlicensed entities to solicit business through dummy codes and paid commission to such entities.
"Taking into account, the seriousness of the violation a penalty of Rs 5 lakh is imposed on the insurer under Section 102(b) of the Insurance Act, 1938," IRDA said in the order.
Besides, Sahara Group promoted life insurance company also allowed ineligible person to act as specified person, the order observed.
The insurance regulator also found Sahara Life guilty of licensing ineligible entities as corporate agent.
In its order the regulator said, "it is observed that the corporate agent D K Associates has solicited business through unlicensed persons as evident from the six sample proposal forms obtained during the course of inspection."
The submission of the Sahara Life in this case was taken into account but not considered satisfactory and the violation of corporate agency guidelines of 2005 was proved, it said.
Taking into account the seriousness of the violation, it said a penalty of Rs 5 lakh was imposed on the insurer for the said violation.
The regulator also found the life insurer guilty on count of delay in death claim payments and settling the delayed claims without penal interest.
The insurer's submission that they made special efforts to review pending claims and paid penal interest in all delayed cases was considered. It was also noticed that 41 of the 220 outstanding claims were pending beyond six months, the order said.
"Insurer's submission that claim forms have not been received in 11 of the 41 cases has been also considered.
However, the fact that 30 claims still remain pending beyond six months is established," it said.
"This is a persistent non compliance and hence a serious view is being taken of violation of provision of regulation of Protection of Policyholders' Interests Regulations, 2002. The Authority hereby imposes a penalty of Rs 2 lakh for this violation," it added.

Sahara Life Ins penalised Rs 12 lakh


New Delhi: Insurance sector regulator IRDA today imposed a penalty of Rs 12 lakh on Sahara Life Insurance Company promoted by Subrata Roy-led Sahara Group for violation of various regulations, including delay in death claim settlement.
"Accordingly, in exercise of the powers conferred upon me under the provisions of the Insurance Act, 1938, I hereby direct the insurer to remit the penalty of Rs 12 lakh," IRDA Chairman J Hari Narayan said in an order against insurer.
The company, set up in 2004, has been directed to pay the fine within a period of 15 days from the date of receipt of the order, it said.
The Insurance Regulatory and Development Authority (IRDA) observed that the insurer allowed unlicensed entities to solicit business through dummy codes and paid commission to such entities.
"Taking into account, the seriousness of the violation a penalty of Rs 5 lakh is imposed on the insurer under Section 102(b) of the Insurance Act, 1938," IRDA said in the order.
Besides, Sahara Group promoted life insurance company also allowed ineligible person to act as specified person, the order observed.
The insurance regulator also found Sahara Life guilty of licensing ineligible entities as corporate agent.
In its order the regulator said, "it is observed that the corporate agent D K Associates has solicited business through unlicensed persons as evident from the six sample proposal forms obtained during the course of inspection."
The submission of the Sahara Life in this case was taken into account but not considered satisfactory and the violation of corporate agency guidelines of 2005 was proved, it said.
Taking into account the seriousness of the violation, it said a penalty of Rs 5 lakh was imposed on the insurer for the said violation.
The regulator also found the life insurer guilty on count of delay in death claim payments and settling the delayed claims without penal interest.
The insurer's submission that they made special efforts to review pending claims and paid penal interest in all delayed cases was considered. It was also noticed that 41 of the 220 outstanding claims were pending beyond six months, the order said.
"Insurer's submission that claim forms have not been received in 11 of the 41 cases has been also considered.
However, the fact that 30 claims still remain pending beyond six months is established," it said.
"This is a persistent non compliance and hence a serious view is being taken of violation of provision of regulation of Protection of Policyholders' Interests Regulations, 2002. The Authority hereby imposes a penalty of Rs 2 lakh for this violation," it added.