LIC’s TV and Radio Ad
IRDA wants life insurers to warn their consumers against falling prey to fraudulent calls and false offers. Product advertisements will have to highlight these warning messages. Those receiving such phone calls are requested to lodge a police complaint along with details of the phone call and number. LIC has launched TV and radio ads for New Endowment Plan. The information about IRDA’s warning is played out at such a fast pace that one cannot understand anything. Obviously, it is done so that it takes minimum air time, but what has IRDA achieved when viewers and listeners cannot understand even a single word?
End of Cashless for CGHS?
Central Government Health Scheme (CGHS) is withdrawing cashless medical service in empanelled private hospitals. This will affect government employees, including those who have retired. CGHS covers five million serving employees and over three million pensioners, as well as their family members. The issue arose due to unpaid bills worth Rs200 crore to healthcare providers. Association of Healthcare Providers India (AHPI), the nodal body of private empanelled hospitals), also complained about ‘unreasonably low’ CGHS tariffs that haven't been revised for the past four years. AHPI says CGHS makes illegal deductions of 10% on all payments leading to losses for member hospitals. The rebate of 10% on treatment charges is applicable only when the government pays within seven days.
Will TP Motor Insurance Be Freed?
IRDA may de-tariff third-party (TP) motor insurance. If it does, the cost of motor insurance will certainly increase by more than the 20% hike last year. IRDA’s exposure draft has proposed steep increase of 25%-137% in tariffed third-party (TP) motor insurance premiums for 2014-15. The proposed hike is 1%-45% for two-wheelers. TP vehicle insurance is mandatory in India, but general insurers are running at a loss due to the ‘no-limit’ for compensation in case of accidental death or disability. TP insurance covers liability arising from third-party claims due to accidents.
Bariatric Operations Getting Paid by Insurers
Bariatric surgeries were not covered under mediclaim until now due to its classification as a cosmetic weight-loss procedure. But, bariatric surgery is also performed on severely diabetic patients to control diabetes. It is termed metabolic surgery in such cases and insurance companies are looking at these on a case-to-case basis to decide on reimbursement. It can involve detailed discussion with the policyholder, along with doctor, by the insurer. Keeping all the relevant records of medical history and reports will help. Recently, CGHS declared that it would fund bariatric surgery for current and former government employees.
Rajiv Gandhi Jeevandayee Arogya Yojana in Trouble
Maharashtra state government’s Rajiv Gandhi Jeevandayee Arogya Yojana (RGJAY) provides health insurance scheme for five million families earning less than Rs1 lakh a year. After initial success in covering surgeries for the eligible families, the scheme seems to be running into trouble with over 70 cancelled surgeries in various Mumbai municipal hospitals. The situation arose due to unpaid bills of medical equipment vendors. Claims amounting to around Rs60 crore are yet to be processed. RGJAY started with eight districts in 2012 and, within two years, covered the entire state. Like many other government schemes, which initially help the poor, the scheme is
liable to misuse by various stakeholders which leads to losses that are then recovered from taxpayers.
Moneylife series on price Manipulation that SEBI and exchanges don’t see
Only a strong close below 6,500 on the Nifty may pull it down lower
On Monday Indian financial markets were closed on account of Holi. After five consecutive days of negative opening the Sensex today opened in the positive. Both the Sensex and the Nifty immediately hit their all time highs. After a short while of trading near to the day’s high the market started falling as weaknesses in European markets and US futures started. By around the last hour of the trading session the market gave up all the intra day gain and closed almost at the same level as of Friday.
The Sensex opened at 21,850 and soon after hitting a high of 22,041 went to hit a low of 21,785 and closed at 21,833 (up 23 points or 0.10%). The Nifty opened at 6,532 and moved to hit a low of 6,498 after hitting a high of 6,575. Nifty closed at 6,517 (up 12 points or 0.19%). The NSE recorded a higher volume of 62.40 crore shares.
Among the other indices on the NSE, the top five gainers were P S U Bank (2.47%); F M C G (1.93%); M N C (1.80%); Media (1.71%) and Nifty Junior (1.55%) while the only four losers were I T (0.79%); Realty (0.62%); Auto (0.11%) and Service (0.02%).
Of the 50 stocks on the Nifty, 29 ended in the green. The top five gainers were Maruti (7.54%); Power Grid (3.56%); IndusInd Bank (3.00%); State Bank of India (2.83%) and I T C (2.78%). The top five losers were Tata Motors (2.99%); Lupin (1.65%); M & M (1.58%); Infosys (1.48%) and Wipro (1.34%).
Of the 1,549 companies on the NSE, 850 companies ended in the green, 616 companies ended in the red while 83 companies ended flat.
Goldman Sachs upgraded Indian shares to "overweight" from "marketweight" and raised its target on Nifty to 7,600, citing reduced external vulnerabilities, including a narrowing current account deficit, and potential for gains ahead of elections that conclude in May. It also recommended investors to focus on potential election beneficiaries.
US indices closed in the positive on Monday. Factory production in the US rose in February by the most in six months, indicating the industry started to recover from severe winter weather. The 0.8% gain at manufacturers followed a revised 0.9% slump in the prior month that was the biggest since May 2009, figures from the Federal Reserve showed.
Except for Jakarta Composite (down 1.45%) all the other Asian indices closed in the positive. Nikkei 225 (up 0.94%) and NZSE 50 (up 0.94%) were the top gainers.
New-home price growth in China slowed last month, led by the four Chinese cities the government defines as first tier.
European indices were trading in the green. US Futures were trading higher.
German investor confidence fell to the lowest since August as political uncertainty in Ukraine threatens to weigh on a recovery in Europe’s largest economy that may be nearing its peak.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, slid to 46.6 from 55.7 in February. This is the third monthly decline.