Birla Sun Life Mutual Fund new issue opens on 26th April
Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series CY, a close ended income scheme. The tenor of the plan is 366 days. The new issue opens for subscription on 26th April and closes on 27th April.
The investment objective of the scheme is to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme.
The scheme will have only dividend and growth option. The scheme will allocate 100% of assets in debt securities and money market instruments with low to medium risk profile.
The minimum investment amount is Rs5,000. CRISIL Short Term Bond Fund Index is the benchmark index. Kaustubh Gupta would be the fund manager of the scheme.
IRDA announced a 60-70% hike in the premium of third party motor insurance with effect from 25th April
The Insurance Regulatory and Development Authority (IRDA) on 15 April 2011 released the new premium rate structure of third party motor insurance. IRDA announced a 60-70% hike in the premium of third party motor insurance with effect from 25th April.
Transport associations who are against the IRDA's decision to increase the rates, have planned for a nation wide strike. Nearly 70 lakh commercial vehicles and about 400 transport associations all over the country may take part in the strike. The transport associations are also planning to start their own general insurance company for the third party vehicles.
Third party motor premium for commercial vehicles has been increased for the first time in the last four years. The rates were not increased because of the opposition from the transport unions. Since the premium rates remained stagnant for four years, general insurance companies faced loss and it adversely impacted their solvency margin.
Magma Fincorp has received the initial ‘R1’ approval from IRDA to launch general insurance business
Non-banking financial company Magma Fincorp has received the initial 'R1' approval from the Insurance Regulatory and Development Authority (IRDA) to launch general insurance business.
'R1' is the first step of regulatory clearance required for carrying on the business as an insurance company in India.
"IRDA vide its letter dated 13 April 2011, granted the approval for the R1 application of the joint venture company," Magma Fincorp said in a filing to the Bombay Stock Exchange.
The company had applied for a licence in March 2010 to enter the general insurance business. Kolkata-based Magma Fincorp has formed a joint venture with the German insurer HDI-Gerling International for the general insurance business to be conducted through Magma HDI General Insurance.
There are three stages of approval required for getting a licence for an insurance company. R1 is the preliminary approval given by IRDA wherein the regulator evaluates the promoters. In the second stage (R2), IRDA looks into the business model of the company and in the third (R3), it looks at the formation of the company.