ICICI Lombard quoted the lowest premium for the scheme, which will cover more than 3.5 lakh households, with each family comprising five or less members
ICICI Lombard, a health insurance company, won the bid for the state-financed health insurance scheme in Goa, by surpassing six other bidders, state health minister Mr Vishwajit Rane announced on Monday.
Mr Rane said that ICICI Lombard had quoted the lowest premium for the scheme, which will cover more than 3.5 lakh households, with each family comprising five or less members. The scheme would come into effect from September this year. The other six bidders included National Insurance Company, Royal Sundaram and Tata AIG.
Goa chief minister Mr Digambar Kamat had launched this scheme during the recent state budget, in which, every household would be eligible for a preliminary and secondary health-care, up to Rs60,000, annually.
Mr Rane told reporters in Panaji that cashless cards would be provided to the beneficiaries, who can approach any of the listed hospitals and get the treatment, including admission absolutely free. Only the people living in Goa since last five years would be eligible.
Mr Rane claimed that Goa would become the first state to implement such an insurance scheme for the people. The state has already covered super-speciality treatments under its medi-claim scheme.
Non-disclosure of the deal value leads to unnecessary speculations about the size and other details of the transactions
Non-disclosure of financial details in M&As, including companies like RIL, has come under criticism by market experts who are now demanding rules for mandatory disclosures of deal value and other terms.
Mukesh Ambani-led Reliance Industries group on 10th June announced its entry into the insurance business through buyout of Sunil Mittal-led Bharti group's majority stake in Bharti AXA Life Insurance and Bharti AXA General Insurance.
However, the companies did not disclose the deal value, even as it involved acquisition of a stake as high as 74% in each of the two Bharti ventures.
In most of the merger and transaction transactions, the deal values are among the most important details and generally they are made public by the concerned companies.
However, at times, the companies tend to keep the deal values a secret, especially in the initial stages, and make them public only at a later stage or after the final closure of the deal.
Reliance and AXA said the "transaction is subject to negotiation and entering into legally binding agreements between RIL, RIIL (Reliance Industrial Infrastructure, which is a group company of RIL) and AXA."
Despite attempts by the media, the companies did not disclose the deal value and said it would be announced later. However, market experts have criticised the non-disclosure of valuation and other financial terms of the deal, saying that it was against the investor interest.
"Making public the deal value is very important. Reliance and Bharti are the top companies of the country. So, they should have set the benchmark to make the transaction open," SMC Global Securities' strategist and research head Jagannadham Thunuguntla said.
Recalling an earlier deal, he said that Hero Honda (in connection with the exit of the Japanese partner Honda from the venture) had also not made public the deal value and had to bear the investor brunt in the market.
Echoing similar sentiments, Geojit BNP Paribas Financial Services assistant VP Gaurang Shah said: "Shareholders have every right to know about the bits and pieces of a deal."
He added, "Not disclosing the deal amount may be in the larger interest of the company, but shareholders should not be kept in the dark."
Shah went on to say that there should be some ordinance with regard to making public the deal value, kind of deal, among other factors.
Experts also said that non-disclosure of the deal value leads to unnecessary speculations about the size and other details of the transactions.
In April, the Mumbai region reported the highest number of cheque clearances. Banks cleared a total of 195.1 lakh cheques with a value of over Rs1.49 lakh crore
Cheque transactions worth over Rs8.66 lakh crore were carried out in the country during April 2011, a growth of over 0.7% from the same month last year.
Banks had cleared cheques worth almost Rs8.60 lakh crore in April 2010, as per the latest data from the Reserve Bank of India (RBI).
However, the total number of cheques cleared during April fell by over 6.6% against the same month of last year.
A total of 1,097.5 lakh cheques were cleared by the banks during the month under review compared to 1,175.3 lakh in the corresponding month of 2010.
In April, the Mumbai region reported the highest number of cheque clearances. Banks cleared a total of 195.1 lakh cheques with a value of over Rs1.49 lakh crore, it said.
This was followed by Delhi region which reported 129.3 lakh cheques being cleared with a total value of Rs1.23 lakh crore. In third place was the Chennai region with 60.7 lakh cheque clearances worth over Rs48,500 crore, it added.
The latest marginal rise in the value of transactions by cheques comes after banks reported a fall in numbers during the last fiscal.
The value of cheque transactions had declined by 2.6% to Rs101.33 lakh crore in 2010-11. Only Delhi and Bangalore, among the major centres, had reported a rise in value of clearances during the last fiscal.
However, the total number of cheques cleared by banks across the country had grown marginally by 0.4% in 2010-11. Over 1.38 crore lakh cheques were cleared by banks across the country last fiscal as against 1.30 lakh in 2009-10.