Banking
Insurance cover also applicable to deposits in co-op banks
The government has suggested DICGC and the RBI to adopt to risk-based deposit insurance premium structure. This will be prior to the DICGC proposal for increasing insurance coverage limit from Rs1 lakh to Rs2 lakh being approved

New Delhi: The deposit insurance coverage is also applicable to all eligible deposits in co-operative banks, Finance Minister P Chidambaram informed Rajya Sabah, reports PTI.
 
According to the existing norms of Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), a maximum of Rs1 lakh is paid to a depositor in case a bank goes insolvent.
 
"In terms of the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, the deposit insurance coverage is also applicable to the eligible deposits held in all eligible co-operative banks," Chidambaram said in a written reply.
 
He said the government has suggested DICGC and the RBI to adopt to risk-based deposit insurance premium structure. This will be prior to the DICGC proposal for increasing insurance coverage limit from Rs1 lakh to Rs2 lakh being approved.
 
"DICGC has sent a proposal to increase the deposit insurance coverage limit from the existing Rs1 lakh to Rs2 lakh for approval of the government.
 
"The proposal was examined and to rationalise the deposit insurance premium structure, the government has suggested to the DICGC and the RBI to adopt to Risk-Based Deposit Insurance Premium Structure, before the proposal of the DICGC is considered for approval," Chidambaram said.

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COMMENTS

deepaksb

4 years ago

Insurance cover of Rs.2 Lacs is NOT sufficient.

How long back Rs.1 Lac limit was fixed?

What about inflation for all these years ?

Even present insurance cover has lot of strings attached-Limit of insurance applicable to all accounts if a person has multiple joint accounts in same bank with immediate family members.

People who had experienced collapse of banks like South India Co-Op.bank,Globel Trust bank are aware of value of Bank Deposit Insurance.

Insurance cover must be increased to Rs.5 lacs and it should be per account and not per bank/branch.
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HDFC ERGO General introduces add-ons in motor insurance scheme
With the introduction of add-ons, HDFC ERGO customers can claim expenses incurred towards repair or replacement of internal parts of gear box and labour cost to overhaul the damaged engine and gear box

Mumbai: Private insurer HDFC ERGO General Insurance said it has incorporated add-ons in its motor insurance scheme aimed at catering to the growing needs of customers, reports PTI.
 
With the introduction of add-ons, the customers can now claim expenses incurred towards repair or replacement of internal parts of gear box and labour cost to overhaul the damaged engine and gear box.
 
"With growing needs and dynamic external factors, the regular motor insurance is no longer sufficient. Keeping this in mind, we have designed the motor insurance add-ons, which offer greater benefits to our customers at minimum additional cost," HDFC ERGO Strategic Planning, Human Resource and Marketing Head Mukesh Kumar said in a release.
 
Other add-ons offered by the firm are: zero depreciation cover which pays for the depreciation of part for partial loss claims at the time of accident.
 
It will also offer to pay a daily benefit for each day that the vehicle is in a garage following an accident, claim being admissible under the own damage part of the policy.
 
HDFC ERGO General Insurance is a 74:26 joint venture between housing finance institution HDFC and ERGO International AG, the primary insurance entity of Munich Re Group.

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Infosys selected for Rs700 crore India Post project
This project, estimated at Rs700 crore, aims to transform India Post into a technology-enabled and autonomous market leader, by revolutionising its financial operations and end-user services
 
Bangalore: Infosys has been selected by the Department of Posts for its Rs700 crore project to help India Post transform its banking and insurance operations cross 1.5 lakh post offices in the country, reports PTI.
 
Under the agreement, Infosys and India Post will embark on a transformational initiative, which encompasses financial services system integration, Infosys said in a statement.
 
This project, estimated at Rs700 crore, aims to transform India Post into a technology-enabled and autonomous market leader, by revolutionising its financial operations and end-user services, it added.
 
This is part of the 'India Post 2012' modernisation programme that aims at bringing transparency, agility, flexibility and scalability to India Post's operations, it said.
 
India Post Deputy Director General, Financial Services, AS Prasad said, "This transformational programme is expected to enhance India Post's services, bringing us on par with the best in the banking industry; and will help us expand the reach and effectiveness of our operations through technology enablement of India Post employees."
 
Infosys will implement and manage its flagship Finacle Core Banking and McCamish Insurance products to help India Post transform its banking and insurance operations - covering more than 200 million banking customers across urban and rural India; including a large base of insurance customers.
 
Infosys will be also install 1,000 ATMs for India Post as part of this programme and will implement an electronic content management system to manage millions of documents generated as part of India Post's financial operations.
 

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