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MRPL turns to Iran for oil insurance: Sources

New Delhi: Indian refiner MRPL secure coverage from an insurer Iranian crude oil cargo, which arrived last week, becoming the first Indian company is known to have taken steps to tighten sanctions against the West, sources of information on the subject said.India is the world's fourth largest oil importer and one of the largest customers of the second largest OPEC producer Iran's exports to 2.2 million barrels a day, but the West Indian to take tough sanctions for imported oil and shipping companies to maintain access to Iran's crude oil market.

Indian insurance companies deny coverage of Mangalore Refinery and Petrochemicals fear of action could be in conflict with pending before the oil embargo against Iran.

Tough new European Union sanctions aimed at stopping the Iranian oil exports to Europe also deny access to EU insurers and reinsurers covered by the supply of Iranian oil all over the world from July. Indian insurance companies do not belong directly to the sanctions, but the West will depend on the reinsurance market, hedge against risk.

But Iran's insurer provided cover MRPL's crude oil cargo of about 7 07 500 barrels, which arrived in India Mangalore Port last week, the sources said.

"(MRPL) has recently received a cargo company to convince Iran and other cargo can be insured on Iran. The company will make that case by case basis," said one source.

Sources named due to the decreased sensitivity of the subject.

Another source said MRPL could still get insurance cover for Iran's oil imports from Tehran.

"As long as we can make use of Iran will continue to cover loads on that basis," the source said.

MRPL is a major buyer of Iranian oil in India and its insurance policy with New India Assurance Co. Ltd. cargoes fell this month.

State-owned insurance companies were willing to extend the cover of crude oil cargoes other than those from Iran, MRPL's new policy, the second source said, forcing the refiner to approach Iran.

MRPL and other oil companies buy insurance to protect the cargo in the raw, but the owners usually arrange ship's deck and all liability for oil spill or personal injury.

India's state insurance companies have agreed to provide $ 50 million cover the local tankers carrying Iranian oil in July Shipping Corp of India leader said earlier this month.

Such services are not insuring the Iranian oil transport.

India does not allow the state to bring oil delivered to refineries, plant, which is privately owned Essar Oil has started to be used.

MRPL to buy oil free on board (FOB) basis, the insurance covered by the Iranian company.

MRPL is cut to 100 000 barrels per day of its annual crude oil imports from Iran to deal with this financial year, approximately 30% lower than last year, the first source said, adding the actual off-take could be less.

In some units of MRPL 300 000 barrels per day refinery in South India is closed for maintenance, which reduces the purchasing Iranian oil in May and June, the source said, adding purchased 124 000 barrels per day from Iran 2011/12 compared to a lot of 142 000 barrels per day.

May 23, 2012 12:46:34 AM

Life insurance: Ideal tool for tax saving, financial security

Life insurance provides a twin benefit people by providing financial security in case of contingency in addition to being a tax on work instruments. The income tax authorities, also recognize the importance of getting a life insurance policy and correspondingly provided income-tax benefit to an individual and Hindu united family (HUF) both under the Income Tax Act, 1961 (Act ).

Although the benefits of getting a life insurance policy are many, the tax benefits from the same can be broadly classified into two categories. First, the tax advantages available during the premium paid to keep the life insurance policy in force. The second benefit period amount received under insurance policies to its maturity or the contingency occur.

Tax deduction in respect of premiums: deduction under Section 80C of the Act is available in respect of premium paid on life insurance policies in a financial year. The maximum amount of deduction to be claimed is up to Rs 1,00,000 or the amount paid, whichever is less. Important to note that such deduction can be claimed by an individual in respect of premium paid towards life insurance for self, spouse and any child of such individual. In the case of a HUF, the premium should be paid for any member of HUF.

To avail the above deduction, the individual / HUF should ensure that the premium paid for life insurance policies should not be more than 20 percent of the actual capital sum assured. It is clarified that while calculating the actual capital sum to secure, the following should not be taken into account: first, the amount of any premium agreed to be returned, or, secondly, any benefits by way of bonus or otherwise over and above the sum actually trust, which has been or may be received under the policy by any person.

However, the budget in 2012, it was suggested that the buyer in respect of life insurance premium (for the policy provided on or after April 1) is allowed only if the premium paid does not exceed 10 percent of actual total tranquil capital. This limit is proposed to be reduced from the existing limit of 20 percent.

Beware points: It is important to note that in the case of individual / HUF terminates the life insurance policy through a notice to that effect or where such rules ceases to have effect by reason of failure to pay premiums or by not reviving the same within the specified time, then no deduction should be allowed under Section 80C in the particular year. The aggregate amount of the deductions allowed in respect of both the previous financial year is considered to be treated as the income of the individual / HUF of the previous financial year and is liable to tax in the current financial year.

Amount received during the season or whatever may happen: per Section 10 (10D) of the Act, any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, is exempt from income tax, subject to the conditions specified therein.

In budget 2012, it was suggested that the maturity proceeds from life insurance policy (provided on or after April 1) is exempt under Section 10 (10D) of the Act only if premium does not exceed 10 percent (as against 20 percent for policies that provided up to March 31) the actual capital sum assured.

Even getting a life insurance policy is not mandatory, the individual must recognize the need and importance of availing the same except the income-tax benefits associated with both.

May 15, 2012 4:30:03 AM

Life Insurance: Toxic plans

Prominent in the sound bite Moneylife (issue of 19 April 2012) cites Amitabh Chaudhry, CEO and MD, HDFC Life and say, "much more needs to be done by traditional insurance plans. These commissions are much higher, the products lack transparency, transfer fees are too high and too much is invested in government bonds. "

I totally agree with Mr. Chaudhry, although it is ironic that one of the HDFC Life's own 'insurance products marketed as providing savings plan should suffer disease themselves he complains! I have stressed this product in Moneylife (issue dated December 1, 2011, "insurance against Mis-selling") with the savings plan to ensure that sounded like a savings-linked insurance policies, but it was nothing like that has no content insurance. For example, for at least 60% maturities of life and in all likelihood even more, it represents a significant dent on one of the principal invested, let alone bring some returns. But more importantly, it offers a 'death benefit This is equivalent to the maturity value (which is less than the nominal sum of premiums paid during the 10 years to 10 years in politics), plus bonuses if any, or insurance premiums paid by the insurer plus 6% worse return, whichever less! No insurance component. And what is worse, the product had a three-year lock-in period, and one could not borrow against it. There was a better fixed deposit (FD) in the bank?

Enlightened managements committed to fair corporate governance should recall a defective product like this, sold under the pretext of ill as well as car companies recall defective cars. Download this product could be related offers customers the opportunity to opt out of the product instead of just a solid return. To my knowledge, the product was recalled HDFC life.

A related question is why the insurance regulator has approved these items first. To be fair, Insurance Regulatory and Development Authority (IrDA) states, contact me to review all the defective products in the industry.

However, its own truth in the comments of Mr. Chaudhry is still holding. Consider this "smart power: unit-linked life insurance plan" by SBI Life. The main sales pitch Smart Performer is that it is guaranteed 5% higher return than the guaranteed highest NAV (net asset value) at maturity. Guaranteed maturity itself was based on "highest daily NAV during the first seven years." It took a little questioning and calls for a detailed brochure, to figure out that what was offered at the time of maturity was 5% of the premium (and not return) at the guaranteed highest NAV. Guarantee 5% return is not exactly the same as a guarantee of 5% premium for a guaranteed NAV. This can be attributed to communication gaps, of course.

But, "a detailed prospectus" was silent on the scope of current up-front load, except that the "Premium contributions you, after deducting the premium allocation charges is invested in the plane of the possibilities ..." When I specifically asked the extent burdened by taxes, I received an email stating: "... fees are 8.5% per year 1, second to fifth year is 6.5% and will be selected in advance and the remaining funds will be invested (sic ). "

This means that if you invest in this product RS100 intelligent, only Rs85 actually invested. Furthermore, because only Rs85 of your money invested in, advance fee RS15 comes out to 17.6% of the amount actually invested (or about 1.76% per year over 10 years of product life), while the premium of 5% of NAV invested in guaranteed Rs85 principal comes to you 10 years later! Now, do the math and decide how intelligent artist, this product is that the charges are excessive, the insurance company cut off his hefty fee upfront, and not for money to work, and whether these products are just fair-investors, it is.

The author was a professor at IIM-Ahmedabad, ING Vysya was president of the Bank and is active in CSR. He wrote several popular books and is an associate professor at Bocconi University in Milan. His website is www.vraghunathan.com.

May 11, 2012 4:45:06 AM

EMC Insurance Group Inc. Reports 2012 First Quarter Results

Certain amounts previously reported in 2011 were adjusted in relation to the retrospective adoption of new accounting guidance for the calculation of deferred acquisition costs, which became effective from 1 January 2012.

Des Moines, Iowa - (BUSINESS WIRE) - EMC Insurance Group Inc. (Nasdaq: EMCI) today reported operating profit of $ 1.04 per share for the first quarter ended 31 March 2012, compared to $ 0.03 per share for the first quarter of 20111.

Net income, including realized investment gains and losses, totaled $ 19,224,000 ($ 1.49 per share) for the first quarter of 2012 compared to $ 5,740,000 ($ 0.44 per share) for the first quarter of 2011.

"The company recorded another strong quarter," said Bruce G. Kelley, president and CEO. "Our property and casualty insurance segment and the segment of our security and how it benefits from growth in premium income and favorable reserve development."

Premiums increased 14.0 percent to $ 109,760,000 for the first quarter of 2012 from $ 96,287,000 for the first quarter of 2011. Property and casualty insurance segment recorded a 10.0 percent increase in earned premiums, while ensuring the segment recorded a 30.3 per cent.

"The increase in income from premiums for property and casualty insurance segment is the result of several factors, including rates at the level of growth in all areas of business, the growth of insured exposures and strong retention policies," said Kelley. "The great increase in the reinsurance segment was primarily driven by the mutual participation of employers in a new offshore energy and proportional liability account written by a special marine underwriter, but also reflects the level of double-digit rate increases implemented on January 1, 2012 renewal as well. New naval bill would create between 17 and $ 21 million of annual premiums will more than compensate for the loss of a large account in the book Mutual Reinsurance Bureau activity was abolished in the first quarter of 2012 due to bad experiences. "Income from investments fell by 7.6 percent to $ 11,157,000 in the first quarter of 2012 from $ 12,078,000 in the first quarter of 2011. This decrease is attributed to the continuing decline in the average coupon rate of a fixed maturity portfolio, as well as an increase in short-term investments that carry even lower yields.

"Investment income continues to decline due to low interest rates that prevailed in the past few years," said Kelley. "At the end of the first quarter, management reinvested approximately $ 35 million from the current portfolio of shares and $ 10,000,000 in cash to our new strategy with an emphasis on dividend income. In addition to higher dividend return, this new strategy of capital expected to carry less market volatility. "

Catastrophe losses totaled $ 9,703,000 ($ 0.49 per share after tax) in the first quarter of 2012 compared to $ 9,405,000 ($ 0.47 per share after tax) in the first quarter of 2011. Based on the segment, 2012 catastrophe losses were $ 5,554,000 ($ 0.28 per share after tax) in property and casualty insurance segment and $ 4,149,000 ($ 0.21 per share after tax) in the security segment.

The company recorded a $ 16,263,000 ($ 0.82 per share after tax) of favorable reserve development on prior years, during the first quarter of 2012, compared to $ 3,907,000 ($ 0.20 per share after tax) in the first quarter of 2011. As in previous periods, the most favorable development associated with the final settlement of claims of an accident the previous years. Last of mathematical analysis performed shows the level of reserves adequacy in line with other recent reviews.

Net realized investment gains totaled $ 5797000 ($ 0.45 per share) for the first quarter of 2012 compared to $ 5,368,000 ($ 0.42 per share) in 2011.

During the first quarter of 2012, the Company recognized no "other than" temporary impairment loss on investment. For comparison, $ 246,000 (0.01 per diluted share after tax) from "other than" temporary impairment losses of investments in the first quarter of 2011.

Large losses (which the company defines as losses greater than $ 500,000 for EMC Insurance Pool, except disaster losses) increased to $ 6,324,000 ($ 0.32 per share after tax) in the first quarter of 2012 from $ 4,037,000 ($ 0.20 per share after tax) vv first quarter of 2011.

The Company's GAAP combined ratio was 92.4 percent in the first quarter of 2012 compared with 112.7 percent in the first quarter of 2011.

At 31 March 2012, consolidated assets reached $ 1.3 billion, including $ 1.2 billion investment portfolio and total shareholders' equity $ 375,900,000, an increase of 6.7 percent from 31 December 2011. Net book value of shares increased to $ 29.18 per share of $ 27.37 per share at 31 December 2011. Book value without accumulated other comprehensive income increased to $ 26.54 per share of $ 25.24 per share at 31 December 2011.

May 8, 2012 5:16:35 AM

Know your policy before buying health insurance

Seventy-five years old Sushil Jain's main grouse against his health insurance for nearly two decades. "I made only one claim so far for my lower back surgery in February 1999. I was in perfect health ever since. In fact, I was a doctor in the last 15 years.

Yet at the time of renewal, the company insists on treating it as a pre-existing illness. They refused my request to increase the value of insurance cover quote for the same reason, "he says. Another policyholder, DP Jambusaria is angry with his insurer to introduce new exclusions in their policy at the time of renewal." They also limited amount payable for each cataract surgery in 24,000, "he says.

Many consumer court judgments against health insurance companies, it highlights the widespread dissatisfaction policyholders. "The most common disputes in respect of pre-existing disease, the suppression of relevant facts and urging insurance companies to lodge claims with 7 days or 30 days of release," says consumer activist Jehangir Gai. So widespread complaint that such insurance Regulatory and Development Authority (IrDA) has issued an advisory note request to the insurer to refrain from denying claims based on flimsy reasons, and especially the delay in filing the claim.

Recently, Irda chief J Hari Narayan said that one third of complaints are related to the area of health insurance that provides poor communication details of the product as a cause of disputes. The regulator also directed industry lobby FICCI, CII and - working on guidelines aimed at simplifying the political conditions.

On your side, you can work on understanding these provisions at the time of purchase and renewal of their policies to avoid conflicts, but also stand up for their rights in the event of claim or renewal application is rejected.

Pre-existing disease

"Pre-existing disease, followed by a time-bound exemptions (one year or two exceptions) are the main areas of confusion. This can be attributed to over-promise by consultant during the pre-sales process. Also, in some cases, poorly insured, policy conditions," says SS Gopalarathnam, director of private non-life insurance Chola MS. Simply put, pre-existing diseases are conditions under which you may have received treatment for the disease within 48 months before the policy was issued. Insurers are not obliged to honor such claims up to a predetermined period is over. Some insurers, however, I use this clause as a tool to deny the claim. "If diabetes or hypertension is existing, the requirement for other diseases is rejected on the grounds that these diseases have emerged as a complication of diabetes and hypertension," said Gai.

Suppression of material facts

It is often claimed, are not approved because the costs were related to an existing condition that was not published at the time of this policy. "Smaller and common diseases that are completely curable may not be published. Despite claims are rejected on the grounds that such diseases were not disclosed at the time of application for the policy," said Gai.

Recoverability

Health insurance companies have never been enthusiastic about the renewal policy seniors or persons with a history of making huge demands. This is obviously wrong, because they are bound by law to renew the policy regardless of the claims. In fact, all new products to be launched to offer lifetime renewability. "The policyholder can not afford insurance company to unilaterally change the terms of this policy without special permission. Renewal policy can not be considered a new contract, but is an extension of the original contract for a further period of one year. Therefore, the restoration must be done under the same conditions," said Gai.

Loading Complaints

While insurance companies have the right to revise its premium rates each year, it may be arbitrary. Observe the complaint load structure in the Policy document for the purpose. Make sure that your policy wording clearly explain this framework before proceeding to purchase.

May 2, 2012 4:16:38 AM

EXCLUSIVE - Indian shipping firms to carry Iran crude despite reduced insurance

Indian shipping companies will continue to transport Iranian oil, even if limited coverage due to tougher sanctions western leaving them financially exposed spill or accident, executives and industry sources.

Tough new European Union sanctions aimed at halting Iran's oil exports to Europe as the EU ban on insurers and reinsurers to cover tankers carrying Iranian crude worldwide from July. About 90 percent of the tankers in the world of insurance is based in the West, so that measures threat to Iran the top Asian buyers in China, India, Japan and South Korea.

Sanctions are trying to stop the flow of petrodollars to Tehran to force OPEC to stop its nuclear program the West suspects is intended to produce weapons.

Shipping Corp of India (SCI.NS), which is the largest shipping company of the country, Great Eastern (GESC.NS) and other Indian companies were asked to state the tanker insurers to intervene and provide up to $ 50 million in third-party liability for compensation for tanker voyage.

The amount of shares of a typical $ 1 billion of coverage that supertankers carrying 2 million barrels of crude would have to reinsurers from injury and contamination claims.

Companies in India runs the risk of delivery at the delivery of raw materials, even if they will be liable for any claims above $ 50 million per incident, industry sources said.

"As far as we know, over the past 10 years, none of the Indian companies carrying Iranian oil shipping in India has been no serious incidents of pollution or anything," Chairman of the Shipping Corp SA Hajara told Reuters on the sidelines of an industry conference in Singapore.

"Since there were no claims for 10 years, we felt if we have a cover $ 50 million as a commercial organization, it would be appropriate for us to continue in that business."

India is the fourth-largest oil importer and one of the largest customers by 2.2 million barrels a day in Iran (bpd) of oil exports. On average, 10 deliveries of crude from Iran a month to refineries on the west coast of India.

A major oil spill from one of these tankers can leave the Indian ship-owners responsible for billions of dollars in damages.

The most expensive oil spill disaster was the tanker Exxon Valdez in Alaska in 1989, which industry groups estimate cost as much as $ 7 billion so far in the clean-up, fines, penalties and claims.

«Exxon Valdez happen once a decade. If you think all the risks you have to be closed, then you should not be in business ", Hajara, adding that the boundaries of liability for oil spill went beyond $ 1 billion and $ 3 billion for other incidents.

"We are very clear that Indian companies, insurance will be a difficult task, if not impossible, to obtain reinsurance, if sanctions are to accurately set in. We know that if we ask for a large amount of coverage, we will never get."

The largest reinsurers in Europe, and according to some industry experts the only way to cope with the loss of European reinsurers would be that governments of importing countries to provide federal guarantees to cover any costs associated with personal and pollution claims.

Shipowners appealed to the government for the state guarantees, but got no response, said Hajara. Indian firms, along with Japan and South Korea, European officials have also lobbied the release of EU sanctions.

Indian refiners have cut imports in accordance with a separate set of U.S. sanctions Iranian crude demand customers to significantly reduce procurement. Mineral oil may reduce imports by about a quarter during the 2012-2013 year, which began April 1, but seek to preserve the remaining imports are.

In the fiscal year ended March 31, imports from India, Iran, were less than 340,000 barrels per day compared with 362,000 barrels per day, committed to annual contracts. India currently imports about 280,000 barrels per day.

Source Ministry of Finance said that the Indian government will consider any measures necessary to keep the flow of oil from Iran, the second largest supplier after Saudi Arabia, India, including the proposal of the sovereign guarantee of supply.

Shipping companies have sent a request to the state Insurance United India Insurance, General Insurance Company, New India provide Ltd., National Insurance Company Ltd and Oriental Insurance Company, said the source of delivery. Shipping and the Ministry of Finance is also looking at this proposal.

The final decision is expected "very quickly," said Hajara.

Japanese insurers also warned ship-owners, they cover only one tanker at the time of the Iranian oil through the Middle East because of their ability to provide limited protection without the European reinsurance market.

This will reduce the number of tankers carrying Iranian oil in three or four months, as each ship takes about a week to 10 days to travel to and from the Persian Gulf, the officials said, compared with about 10 ships a month last year.

Japan has reduced the workload in April crude oil from Iran almost 80 percent compared with the first two months of this year.

(Additional reporting by Clare Baldwin in Hong Kong and Manoj Kumar in New Delhi, editing Jo Winterbottom, Simon Webb and Clarence Fernandez)

Apr 28, 2012 2:40:50 AM

Ulip with a higher cover will pay rich dividends over long term

Post liberalization in 2000, has been a tremendous growth in the Indian insurance industry, in particular, as in life segment. Total life insurance premium over the industry has increased by Rs26, 250 crore in FY1999-2000 Rs286, 500 crore in FY10-11. India is the largest political force in the world and is one of the world's 10 largest insurance market in the premium collected.

The insurance industry, distribution and density are two important indications of the potential and performance. Total life insurance premium, which was only 1.4% of GDP in FY1999-00 before the area opened to private sector participation has increased by 4.7% in FY 2009-10, which is very healthy, compared to many developed markets. The amount of life insurance in force has increased almost 12-fold over the past decade.

Although premium rates have increased, protective covers Indian customers are very low compared to other markets. In the insurance sector parlance, the sum assured is payable to the beneficiary the death of the policyholder. This is the level at which the policy holder. Now whole life insurance sum assured India a number of gross domestic product is only 0.3 times. Even a small country such as Taiwan, the figure is 2.3 times. The Indians kept well under-protected. We just do not have enough prepared for life insurance eventualities.There several classes that will help customers to secure their families financially if something happened, and breadwinner. It is term plans that are purely focused on the protection of life. And there are traditional plans or unit-linked plans (ULIPs), which are a mixture of life and protection of investment income.

Previously, ULIPs were very popular with customers because they offered good investment returns, primarily thrive on the stock exchange, as well as a few simple cap. Structure of the product led to a wrong to sell some short-term return on investments of customers without adequate understanding of the potential downside risks to invest in the market of insurance products. However, post-legislative changes towards the end of last year also continued writing and talking around the product category of the media today, customers have become a little unsure of buying ULIPs. This is unfortunate, because the new guidelines on ULIPs are more attractive to customers in both parts of long-term investment returns and life protection.

The new guidelines have strengthened the protection of life, part of the ULIPs. The controller (IrDA) has determined that the sum assured should be at least 10 times the regular annual fee (125% of the premium), and customers up to the age of 45 and 7 times (110% of the premium) to other customers. Cover not yet sufficient, but focused on improving the cover policy holders is definitely a step in the right direction.

The value of the promise of the return on investment is also much stronger than it was before. IRR baseball cap and commissions to reduce costs and better returns on investments for customers. A small transfer fees also work well for clients who may have to give up without causing a loss of economic policy.

I think ULIPs are now much more attractive proposition, with primary consideration to focus more on the protection of life, which is really the ultimate goal of the insurance.If you decide to buy a ULIP, here are a few aspects that you need to keep in mind.

- Select a ULIP high protection cover.Remember that under-protection effect of financial security for your family, if available.

- A healthy return on your investment, you have to be willing to hold the ULIPs have a long tenure, at least 10 years.

- Select the fund (s) to invest carefully on the basis of their willingness to take risks. Most ULIPs you can share your own resources in several funds, and also from time to time to exchange money between various funds. You chose the Fund (s) will determine the safety and return on investment. Read the fund's performance periodically.

- Go through the product features and the image into a document carefully to understand the various fees and profit expectations. It is mandatory for insurers to specifically provide information on the definitions of all applicable charges, method of appropriation for these charges and the quantum of all payments throughout the period of policy. Insurance companies are also divided into product sales figure, which emphasizes the yield calculated by 6% and 10% to enable comparison between different kinds of products.

Other than ULIPs, the investment risk associated with the market and belongs to the customer as per his / her investment decision, there are traditional insurance, where the risk is borne by the insurance company. These plans, companies offer warranties and return to the form of bonuses and additions. These have been reported each year, and customers are sure about what they should expect at the end of policy term. Traditional plans are working well for customers who want to invest and earn a reasonable return, but repulsive to take the high risk associated with their hard earned wealth. Traditional plans typically much more protection components, and customers have the flexibility to select the amount of cover they want to ensure financial security for his family.

In addition, customers who require only the financial protection of their family the desired reference, such as any kind of financial liability, or diet and lifestyle event in the unfortunate death, a term insurance plan would be ideal because it offers families a lump sum death. Because these are primarily at risk decks without investment component, the insurance premiums are lower when compared to traditional plans or ULIPs is much greater protection.

Finally, the primary need for life insurance is a protection and a number of life insurance that can provide you with financial security and investment returns. It is up to you to decide what works best for you, at this stage of your life. The best way to go about this is given out of your life goals is a piece of paper and make the necessary changes in inflation, toward the current rate (initial 8%). After you have read conflicting goal, the design is simplified. The rule of thumb to calculate the required amount of cover (sum assured) is to multiply annual salary of 20 (minimum, maximum, at least). And if you do not have the time or the expertise to make this decision, to seek help from a professional financial planner / insurance advisor. This can help you understand your short-term and long-term financial goals and get you to solutions that are specifically tailored to best suit your needs.

Apr 26, 2012 4:19:57 AM

Insurance regulation: Who're you calling a 'special interest'?

This, chutzpah is a group that opposed government oversight of health insurance premium takes a certain amount of name "against high health care costs for Californians. Especially when the group of doctors and hospitals, trade associations, the power of health care Californians have contributed to the high cost of the two sets.

directly benefit from. "

Just about every initiative presents a battle between special interests.A proposed initiative as much or more than it would be good for your supporters to the public good.

Granted, sometimes are self-service initiative, the voters of that fact alone changes.

CAHHC the response on Tuesday was trying to provoke.But consumer watchdog CAHHC charges, mileage, because it collects money from insurance companies if it is successfully challenged a proposed rate. And CAHHC, according to Consumer Watchdog and the trial lawyers contribute 87% of the money behind the initiative.

No matter CAHHC members of the health insurance companies, whose interests are not perfectly aligned with consumers on this issue are included.points will be placed.

The bulk of the rest of businesspeople and has come from unions, Heller said with fundraising Rounding out small contributors.

It's no surprise that consumer advocacy groups as the prime minister should be the donor. Its founder, Harvey Rosenfield, the 103, 1988, initiatives to strengthen the state Department of Insurance for auto, property and casualty coverage, the premium was the author of the regulated. The new initiative, Proposition 103 would expand health insurance policies.

The premium of the underlying data and assumptions challenged. If the party representing the interests of consumers and makes a significant contribution to moving forward, it is reasonable advocacy and witness fees and expenses from the insurance company "may gather.

Over the past decade, consumer watchdog has intervened in several proposed rate increases, many of them practiced.The consumers (ahem) will pay the premium.
The initiative's opponents are spending a lot of time, and no doubt, a fair amount of money trying to create the consumer watchdog issue. CAHHC efforts, in addition to a site called ConsumerWatchdogWatch groups sprang up this year (for special interests "as a secret in front) and 103 on the attack. Site Forza Communications, a Sacramento sponsored by the firm run by Steven Maviglio but Maviglio that is denied to those who have money. course, Maviglio the CAHHC of irony, a tin ear.

[Updated, 5:19 pm April 17: Maviglio, responded with an email, as follows:

you will see that this is nothing new for me.

"Who is the website I'm making money. Privately owned an insurance company pay for me to do so. Period."]

Call me naive, but I believe the voters a ballot measure to figure out what it claims to be.

If the consumer watchdog over half a million signatures needed to put on the ballot together, then maybe we will see the debate that it deserves.

Apr 17, 2012 10:29:04 PM

Are your insurance details all in the public?

Insurance companies are increasingly get their hands on your personal

Recently a reader Moneylife started receiving calls from the number 30247032 in Mumbai claiming the office of Kotak Life Insurance in Malad (Mumbai). The appellant stated that ULIP Kotak Smart Advantage is abandoned, but they are unable to send a letter to everyone because there are more than five lakh customers. The appellant had full details of the policy, including the final fund value. The appellant provided the reader with all necessary assistance to make the policy after receiving annual policy premium of Rs25, 000.

A call to the reader by Kotak Life Moneylife revealed that the product and the policy is still active. He did comfort him, but the calls just kept coming regularly. The caller started saying that if the policyholder is in trouble, it will not be able to help recover the cash surrender value at this stage. The policyholder was mentally worse and was tempted to stop paying ECS for a month just to see if the "real" life insurance Kotak calls. After we heard the policyholder, we told him not to stop payment ECS.

People are harassed by calls from insurance companies when they buy a policy. But it is alarming when you start getting calls from agencies that have dubious personal data and eggs on hand you your policy or dictate you to do other things that suit their interests. It was difficult for the reader to believe that Moneylife calls can not be the insurance company that the appellant knew all the details of the policy, including the value of the fund. Moreover, the reason to go may seem a real for those who are not savvy insurance product is discontinued is.

It is important to note the following:

• While IRDA (Insurance Regulatory and Development Authority) was to end any product, existing policyholders are protected and the insurance company can not force them to make politics

• It is always best to contact the insurance company on the official number or e-mail and hear what they have to say

• Do not pay a premium to anyone other than the authorized intermediary or directly to the insurance company. It is advisable to write the policy number on the check and get recognition of receiving the check of a specific policy. In many cases agencies send the dubious bonus for opening a new policy to earn initial commission that includes even forge your signature.

Moneylife did call the office supposedly Kotak. Confirmed the receipt number. They asked if we received a call from someone on the policy and if so, give them the policy number so that the right person call you back. We asked to speak with a person called Mahajan. The receptionist said there are many people with the same name and hence the right person to call back after a while. We never got the call and now the number is constantly engaged. They may have found that it was a call from the media.

Another reader Moneylife keeps getting calls from ICICI Pru Life almost once a week, simply because he had bought a ULIP policy in 2007. The pitch is different each time. Either it's a new product, new CFO assigned or an offer to be an existing customer. It is an irritant, but the reader can deal with it by knocking down the phone. What caught his attention was call from someone claiming to Birla Sunlife pitch for his product.

This player has no Moneylife policy Birla Sunlife. Some queries have revealed that the caller knew the name and telephone number. The answer to how they got the information generated a standard response that it is on the database LIC. How does it magically appeared on their database is a mystery. Moreover, these unsolicited calls come even if your mobile number is on the "do-not-call" list and even a direct dial telephone in a workplace. According to Kotak Life Insurance, there is no shared database between insurance companies. While this may be true, it does not explain all calls received from various entities that should not have access to your personal information.

A policyholder Kotak Life has received a call claiming to be from the insurance company on payment problem with ECS. After taking the necessary steps to make the payment, the policyholder recalled the number. It turned out to be the brokerage firm who posed as a representative of the insurance company. The broker had been called because of his interest in the renewal commission. Just because the caller says it is the insurance company, you can not know who made the calls.

It's amazing how the competing insurance come to know that your car insurance is due for renewal. You can receive a phone call or SMS asking you to change your insurance company. Mediclaim and auto insurance are annual contracts and aggressive marketing is a norm. An interesting text message we received automobile insurance was from someone who sells products ICICI Lombard. He said they have "mouthwashing" insurance offer. Are they selling toothpaste or mouthwash instead of car insurance?

A reader Moneylife ECS payment reminders by e-mail from Birla Sun Life Insurance. The nuisance is that the client complete bank account number is in the emails, which is a security risk. This is a soft approach by the insurance company because it is better not to specify the bank account number or mask most digits.

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Mar 22, 2012 12:26:35 AM

Insurance FDI reforms may be dropped

Jakarta: A Congress-led politically vulnerable States Progressive Alliance (UPA) tend to drop the proposal for easy foreign direct investment (FDI) norms in the insurance and pension funds.Accordingly, a proposal to increase the FDI in insurance joint venture to 49% more likely will go down, and the government, as demanded by the opposition, may cover the ceiling of FDI in the pension fund to 26% and the guarantee of return is guaranteed, an official associated with the development said, requesting anonymity.

Political opposition to liberalization sought by the UPA threatened to derail the long locks and pending insurance and pension fund reform initiatives.

Parliamentary standing committee, headed by former Finance Minister Yashwant Sinha, has recommended that the FDI in the pension is limited to 26% in the statute itself and reaffirms given to people who are willing to park their entire corpus in government securities.

The Government is expected to move amendments to Insurance Act (Amendment) Bill 2008, and the Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011, for the FDI cap of 26% in the current budget session of Parliament. With a maximum of 26% FDI in both sectors, the government hopes that it will be able to push through financial sector Bills.

"Unless the whole issue of FDI, there are no other major problems with the Bill of insurance. Given the political pressure, FDI will be 26%. There is no other choice. This is a political call," said a top finance ministry official, who declined to be identified.

India has 24 life insurance companies and an equal number of general insurers.

"Clause of the largest in the insurance amendment bill is 49% FDI. Keeping the ceiling at 26% would send a wrong signal to investors", said Ravi Trivedy, a partner at KPMG Advisory Services. "Because the life insurance industry is really struggling."

Finance Minister Pranab Mukherjee in his budget on Friday said the government will encourage the insurance amendment, PFRDA and the Banking Law Amendment Bill, which will pave the way for the issue of banking license by India's central bank at the end of the year, in the current parliamentary session.

"A lot of new foreign companies wishing to enter this segment (insurance and pension funds) in the financial services market may be India (now) to review their decision," said Robin Roy, associate director at audit and consulting firm PricewaterhouseCoopers. "The biggest challenge for the insurance industry is capital. Foreign partner who is willing to bring in more money, but if the ceiling is not raised, it will not happen. Insurance company will then have to look either more capital or cough inducting other partners in the country to meet growing capital needs. "

Financial standing committee, in its report on the proposed insurance law, has observed that the global economic scenario, any further increase in FDI may not be for the benefit of the insurance industry of India. The committee has not suggested an alternative route on the market to raise capital needed for insurance companies, such as initial public offerings, and through funds in the line is carried by the bank.

In accordance with Insurance projections Regulatory and Development Authority (Irda), the life insurance industry will require a minimum capital of Rs. 40 000 crore to reach the insurance penetration rate of 8% of gross domestic product and about Rs. 66 000 crore for the insurance sector as a whole in the next five years.

In addition to FDI, the insurance bill contains provisions that would provide greater flexibility to Irda by removing some of the provisions of the law and placed under regulatory supervision.

"Once the bill is passed, Irda will have more flexibility in determining the structure of the agency and commission agents," said P. Nandagopal, CEO, IndiaFirst Life Insurance Co Ltd

PFRDA bill aimed at giving legal status to the regulator and the pension fund will empower PFRDA to regulate the National Pension Scheme and introduce legislation to reform it.

Although the government had initially decided not to accept the recommendations of the committee continue to include provisions in the legislation PMA and cap it at 26%, it was agreed to put it to collect the figures necessary to pass the bill.

But the bill can not be passed in winter session of parliament after the Trinamool Congress leader Mamata Banerjee demanded the inclusion of the clause re-assured.

Sinha, in a recent interview, said the government had agreed to include the main recommendations of the standing committee and the Bharatiya Janata PFRDA Bill will support the bill after changes are combined.

The bill, which would bring the PFRDA par with other financial sector regulators, UPA is the second attempt at putting in place the legal framework for the sector.

Previously, the UPA has failed to get a part for Bill retired in 2005 as the Left party, which his allies at the time, refused to support legislation.

Mar 20, 2012 11:20:03 PM

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