Insurance company can’t deny claim if someone gets delay in filing: Supreme Court

This is one of the best announcement done by Supreme Court that people don’t have to suffer anymore with their insurance policy while claiming even if there is a delay. There has been an on-going issue while claiming insurance policy if there is a delay due to any reason.

Supreme Court has also said that this needs to be taken care by all insurance companies otherwise people will lose confidence in this industry.

A bench of Justice R K Agrawal and Justice S Abdul Nazeer set aside the verdicts of various consumer courts, including the National Consumer Disputes Redressal Commission (NCDRC), which had ruled that insurance companies could deny the benefit of cover for the delay in filing the claims.

A recent news that Supreme Court has asked “Reliance General Insurance Company” to pay Rs 8.35 lakh to a Hisar-based customer whose insured truck was stolen but his claim rejected on the grounds of delay in filing it.

Justice Nazeer (who wrote the judgment) said that “It is true that the owner has to intimate the insurer immediately after the theft of the vehicle. However, this condition should not bar settlement of genuine claims, particularly when the delay in intimation or submission of documents is due to unavoidable circumstances. The decision of the insurer to reject the claim has to be based on valid grounds. Rejection of the claims on purely technical grounds in a mechanical manner will result in loss of confidence of policyholders in the insurance industry”.

The court also said that a practical approach has to be taken in these type of cases because people who lose their vehicle may not go to the insurance company straight away rather they want to trace it first themselves.

So basically, facts need to be checked before rejecting the claim and claim should not be rejected just because there is a delay while contacting the insurance company.

HDFC Life, Apollo Munich team up for dual cover

This is just great news for all of us that HDFC Life insurance and Apollo Munich Health have decided to launch a plan “Click2Protect Health Plan”, which will provide both Life and health cover under a single plan.

Both companies have combined their plan as below:

  • The benefits of HDFC Life’s ‘Click2Protect 3D Plus (term) protection plan and
  • Apollo Munich’s ‘Optima Restore health indemnity plan.

Subrat Mohanthy (Senior EVP, HDFC Life) said that “We have combined our flagship term insurance product with Apollo Munich’s flagship health insurance product. The regulatory encouragement to actually have a combination product, which offers a combination of life and health insurance benefits, gave us the idea that we should bring these two products together”.

He also said that “Through a single proposal form, single medical, single premium, customers can get both the products together, making it convenient for them. It is also cheaper because there is an overall 5 percent discount if the customer buys the two products together”.

Both companies have issued a joint statement below:

Include the waiver of future premiums on account of accidental total permanent disability or in the diagnosis of critical illness, and special premium rates for women and non-tobacco users.

Multiplier benefit

Further, hospitalization profit blankets in-patient treatment, pre-and post-hospitalisation costs alongside restore profit (cover sum is restored to an additional disease alternately gang member) What’s more multiplier profit (upon a claim-free year, that essential whole of cash guaranteed individually expands by 50 percentage and, whether those second quite a while excessively awful will be claim-free, after that the fundamental aggregate guaranteed individual may be doubled).

As stated by those statements, the arrange likewise hails for incredulous point rider coating eight basic illnesses, for example, such that cancer and heart ailments, Furthermore additionally gives cashless medicine abroad to these illnesses.

Partnership between A US small finance bank and Aditya Birla Health Insurance

AU small finance bank will be selling health insurance product of Aditya Birla Health Insurance as per their Agreement.

The Bank (AU Small Finance Bank) said while regulatory filling that we have entered into the agreement with Aditya Birla Health Insurance Company Ltd (ABHICL) to act as a corporate agent for health insurance business.

AU Bank said that, considering benefit for both the companies mutually in terms of business, market penetration as well as reach.

AU bank is a small finance company and provides services as:

  • savings and current account
  • Term deposit
  • Debt card
  • Insurance
  • Retail loans as well as wholesale banking.

Initially, it was known as Non-Banking Finance Company (NBFC) – AU Financers and it is based in Jaipur.

In December 2016, AU Transformed into the role of a SFB as AU small finance bank (SFB) after approval from RBI.

AU started the small finance banking in April this year and it hits the stock market in an initial public offer (IPO) in July this year.

In the first quarter ended June of the current fiscal, company’s net profit grew by 4.6 percent to Rs 61.83 crore, as against Rs 59.08 crore in the same period year ago.

The total assets, as on June 30, 2017, stood at Rs 10,972.83 crore.

Shares of the company were trading at Rs 562.40, down 0.27 percent on BSE in the afternoon today.

New EU, US insurance agreement means?

There is a news that the European Union and the US had signed an agreement to update international insurance and reinsurance regulations and free up capital for investments – a significant move for the industry on both sides of the Lake.

But there has been a long discussion on this, what does true mean of it? Protection Business asked protection legal counselor Martin Membery, co-head of protection bunch at Sidley Austin LLP, more about what impact will really have.

What is the reason for the arrangement?

This Agreement have significant development for cross border insurance and reinsurance business between the EU and the US. It evacuates certain exchange obstructions and possibly diminishes the expenses of US reinsurers giving reinsurance cover to EU cedants; US protection bunches with EU protection backups; and EU reinsurers giving spread to US cedants.

What does it mean in practice?

The two root-cause addressed by the covered agreement concern group supervision, and reinsurance guarantee and nearby nearness necessities.

Gathering supervision – As the US isn’t at present thought to be proportional to the EU for assemble supervision purposes, truant concurring ‘other measures’ with EU controllers under Solvency II, under the present administration US protection bunches with EU based protection auxiliaries are possibly presented to having their US and other non EU operations being liable to EU aggregate supervision under Solvency II.

The Covered Agreement blocks EU protection controllers from applying Solvency II gather supervision to the non EU parts of US headquartered protection gatherings. US protection bunches working in the EU will be regulated at the overall gathering level just by the important US protection bosses, and won’t subsequently need to meet EU overall gathering capital, announcing or administration prerequisites. Similarly EU back up plans working in the US will be directed at the overall gathering level just by the EU protection controllers.

Reinsurance insurance and neighborhood nearness prerequisites – Provided that they meet the imperative qualifying criteria with respect to money related quality and market direct, reinsurers will profit by an administration which won’t allow necessary collateralization where proportional measures don’t have any significant bearing to household reinsurers.

Placing this into the setting with the present US administration, US States will have a five year time span in which to change their current laws and directions to empower qualifying EU reinsurers to give reinsurance to US cedants without posting security. In the meantime time frame, US States are additionally ’empowered’ to decrease existing insurance necessities by 20% every year pending full usage. Moreover, nearby nearness necessities which may some way or another require a reinsurer to set up a branch or backup so as to give reinsurance to a household cedant will be dispensed with.

In what capacity may it influence EU (re)insurers?

Given that they meet the essential qualifying criteria, all EU reinsurers that give cover to US cedants will conceivably profit by the disposal of guarantee and neighborhood nearness necessities in the US protection showcase.

For whatever length of time that the UK remains some portion of the EU, or can depend upon proper transitional measures giving similar advantages, UK based reinsurers – including Lloyd’s syndicates – would get an indistinguishable advantages under the Covered Agreement from their EU partners. Once the UK has left the EU, it would not consequently profit by the Covered Agreement, and the UK would need to arrange a proportionate concurrence with the US on a reciprocal premise all together for UK based reinsurers to keep on receiving these advantages.

Who benefits most from the arrangement?

EU reinsurers giving spread to US cedants, US reinsurers giving spread to EU cedants, and US headquartered protection bunches with EU protection auxiliaries.

AXA is the 1st insurance brand worldwide for the 9th consecutive year

  1. With a 4-position progression, AXA is 42nd in Interbrand’s Best Global Brands ranking.
  2. AXA continues to be in the top 3 global financial services brands.

The Best Global Brands ranking today confirms the AXA brand’s strong ongoing reputation and value: 42nd best global brand, up 4 spots in a year, 1st insurance brand for the 9th consecutive year, and the 3rd best brand across all financial services, with a brand value of USD 11 billion.

Amelie Oudea-Castera

AXA GROUP CHIEF MARKETING & DIGITAL OFFICER

We are very proud to be the leading insurance brand for the 9th year in a row. I would like to thank our 107 million customers for their continued trust. I would also like to thank our employees and our distributors who contribute passionately day-in, day-out. We are continuing positively on our Ambition 2020 strategy and we are very pleased that our brand is again recognized for its contribution towards our success.

AXA has shifted its purpose to empowering people to live a better life. We are undertaking a deep transformation of our business model with the aim to create more value for our customers and become a true partner for life. The AXA brand plays a critical role in this transformation journey.

According to Interbrand, ‘‘AXA’s commitment to the brand is seen as its number one strong point. The organization has taken the time to define a purpose, vision, and values. There is an authentic drive to transform from the inside-out and this will become the foundation for further growth. The ambition to differentiate on experience through a redefined relationship with customers is also viewed as compelling with the potential to change the role of brand if delivered on consistently over time.”

PAUL BENNETT

BRAND DIRECTOR OF THE GROUP AXA

 

In the past year, we have made important shifts in our brand expressions such as an identity refresh and advertising platform that demonstrate a simpler, human, and modern brand. We have continued our global rollout of customer assets, like service quality hallmarks and MyAXA, which create a tangible and distinctive AXA experience.

 

Reliance Capital is ready to be in health insurance firm

Reliance Capital Ltd, the non-banking finance company of the Reliance Anil Dhirubhai Ambani Group, is ready to be in health insurance firm soon, the company announced during its annual general meeting (AGM) on Tuesday (26th Sept.).

Reliance Capital has already received initial approval from the insurance regulator and expects the new company to become operational by 2018.

Currently, The Company offers health insurance through the general Insurance subsidiary – Reliance General Insurance. Now, Reliance Capital is looking for opportunity in the retails segment by setting up a new company to offer health insurance product.

Anmol Ambani, executive director at Reliance Capital, during the firm’s 31st AGM said that There are three factors indicating significant growth potential in retail health insurance. First, changing demographics—a younger India with higher income, higher assets, and more financially aware. Second, rising cost of healthcare. Third, an increase in lifestyle-related ailments.

Ambani also said that Reliance Capital has received the first stage of approval from the Insurance Regulatory and Development Authority of India (IRDA). There are three stages of approval.

Assets under management (AUM) for Reliance Capital’s health insurance business stand at Rs1,190 core, a company spokesperson said. The firm is also looking to list its general insurance business in the current financial year.

“We have received IRDA approval and are in the process of listing the company in the current financial year. It is part of our strategy of incubating businesses with massive potential, growing them organically, and now, unlocking value through listing,” Ambani said.

AUM for the general insurance business stands at Rs7,000 crore.

Reliance Capital is looking to list its general insurance and mutual funds business. The parent company will eventually function as a core investment company after its businesses are listed. Last week, Reliance Capital also listed its housing finance company—Reliance Home Finance Ltd (RHFL).

“RHFL has touched market capitalization of Rs6,000 crore,” Ambani said.

On Tuesday, shares of Reliance Capital fell 0.39% to close at Rs620.40 apiece.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

 

 

UK’s Financial Conduct Authority Signs Agreement with Hong Kong Regulator

Two best and major Insurance regulator of the world has Signed a corporation agreement to strengthen the two sector’s ties and further support innovation in the financial technology (fintech) Sector.

Yes, it’s true we are talking about two major insurance regulator, the Hong Kong Insurance Authority (IA) and the UK’s Financial Conduct Authority (FCA).

The Agreement will help the IA and the FCA to Share the information on innovation endeavors, as we all referral of innovative firms seeking to enter their counterpart’s market.

This is such a great step taken by two countries. By working together, Regulators help support global innovation in fintech,” said Christopher Woolard, executive director of strategy and competition at the FCA. ”we look forward to working closely with the IA to promote innovation and enhance synergy for both markets, which will, in turn, benefit our consumers and financial industry as a whole.

John Leung, IA’s Chief executive officer said:

The agreement would foster fintech development in the international arena by assisting fintech firms to explore new areas of growth and business opportunities outside the home jurisdiction. The IA will consider signing similar cooperation agreements with insurance regulators in other jurisdiction

Apart from IA, the FCS also has similar agreements with another Hong Kong Financial regulatory agencies. Name of the Agency is The Hong Kong Monetary Authority and securities and futures commission.

This agreement aims to provide a full spectrum of cooperation across the banking, Securities and insurance sectors in both the UK and Hong Kong Markets.

QIB supported SBI Life Insurance Company IPO oversubscribed 1.25 times

On the last day of subscription, SBI Life Insurance Company’s initial share sale offer has been fully subscribed on Friday.

As per latest data of exchange, the 8,400-crore public issue has been oversubscribed 1.25 times.

Except anchor investors’ portion, The Initial public offer has received bids for 11.01 crore shares against the IPO size of 8.82 crore shares.

The reserved category of qualified institutional buyers (QIBs) has seen over subscription of 4.09 times while the portion set aside for non-institutional investors has subscribed 10 percent and retail investors 52 percent.

SBI Life Insurance Company, the joint venture between India’s largest lender State Bank of India and BNP Paribas Cardif, already raised Rs 2,226 crore from 69 anchor investors.

The IPO comprises of dilution of up to 12 crore shares through the offer of sale. SBI will sell up to 8 crore shares while BNP Paribas Cardif SA will dilute up to 4 crore shares.

The insurer aims to raise Rs 8,260 crore at the higher end of the price band that is fixed at Rs 685-700 per share.

The trading in equity shares is expected to commence on October 3, 2017.

JM Financial Institutional Securities, Axis Capital, BNP Paribas, Citigroup Global Markets India, Deutsche Equities India, ICICI Securities, Kotak Mahindra Capital Company, SBI Capital Markets are the book running lead managers to the issue.

 

Transfer old car insurance to the new car

There are few question that needs to be answered in order to understand new policy of car insurance:

Car Insurance

Question 1. I sold my old car and planning to buy a new car, Can I transfer the existing car’s insurance to the new car?

Yes, such a great news for the day that now we’ll be able to transfer our existing car’s insurance to the new one.  This can be requesting by contacting our insurance company through an application for substitution of vehicle by another vehicle of the same class for the balance period of the policy.

It just that we need to pay difference in premium amount due to variation in rate and value of the new car.

Question 2. I have been out of country for almost 1.5 years and the car insurance policy has lapsed. What should I do to revive it?

You need to contact customer service of insurance company and ask for insurance cover. The customer care executive will help you in getting policy as per your requirement. You will get a new policy as per the terms and conditions applicable at the time of policy issuance.

Question 3. I am migrating from Delhi to Kanpur Do I have to intimate my insurance company for the change in location and address and do I have to take a special insurance for the road transit of the vehicle?

Best way to handle this is, Please contact your insurance company and get all information updated as soon as possible. This will allow your insurer to reach you for renewals on time or at the time of claim assistance. If you are changing the registration number of your car in the near future, you must update your insurer about this.

Question 4. For how many years can I take the Zero Depreciation insurance cover?

The Zero Depreciation cover policy varies from insurer to insurer. You may check with your insurance company about the age of the car in years that it offers the cover for.

ICICI Lombard IPO (The initial public offer) subscribed 27% on Day 1

According to NSE data, The ICICI Lombard IPO received bids for 16,669,466 shares against the total issue size of 61,666,740.

The initial share sale offer of ICICI Lombard General Insurance was subscribed 27% on the first day of the 3-day bidding on Friday.

The qualified institutional buyer category was subscribed 62%, non-institutional investors 4% and retail individual investors 18%. ICICI Lombard General Insurance on Thursday raised Rs 1,625 crore from anchor investors.

The company’s IPO involves dilution of up to 86,247,187 shares by promoters—ICICI Bank and Fairfax. The initial share sale offer would close on 19 September. The insurer is looking to raise about Rs5, 700 crore at the higher end of the price band, which is fixed between Rs651-661 per share.

Post-issue, the shareholding of Fairfax will come down to 9.91%, from 21.9% now, while the same for ICICI Bank will be reduced to 55.95%, from 62.95%. ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings. For ICICI Bank group, this is the second public offer this fiscal. Its life insurance arm ICICI Prudential had raised Rs 6,000 crore through an IPO earlier.