Only three insurance broker licenses were added in 2009 while no licenses have been granted this year yet
According to data available on the Insurance Regulatory & Development Authority (IRDA) website, no new insurance broker licenses have been granted this year. In the year 2009, only three new licenses were awarded.
“The process is time-consuming. It’s not a matter of not issuing licenses but it’s a matter of not renewing them. In fact, IRDA has gone on record to say that brokers are not responding fast enough. New applications have probably trickled down to nothing because the viability of a direct broker has come into serious difficulty,” said Fali A Poncha, chairman, International Reinsurance and Insurance Consultancy and Broking Services.
More than 50 broker licenses have already expired and are still under renewal scrutiny. Some of these insurance broker licenses had been cancelled, barred, or suspended by IRDA in September 2009. Seven licenses were given an extension of six months—which have already expired between June-November 2009—while six were given an extension of one year out of which four have already expired and two are due to expire in the next few months as on 30 September 2009. A total of 15 licenses have been cancelled by the regulator since 2005, out of which five were cancelled in the year 2008, one in 2009, five in 2007, three in 2006, and one in 2005.
Pritam Ins. Brokers Pvt Ltd, a Delhi-based direct broker, was refused renewal of its license which expired on 18 August 2008.
“The effort of procuring and servicing the business has been exhaustive. There is a 60%-90% discount range and the earnings have frozen on the basis of premium. It’s not an attractive proposition for people to invest in infrastructure and become a broker. There’s a huge reduction in premium rate across the board. They are renewing, but the process takes a lot of time in the procedure, inquiries, and answers from brokers etc,” added Mr Poncha.
The bullish sentiment is overwhelming; ergo, this is not a time to throw caution to the winds
The market was down on a weekly basis as the concern over the debt crisis in the eurozone weighed heavily on world indices. The market dipped on Wednesday after Portugal was downgraded by S&P. Revival in the last two trading days in the week was not enough to offset the plunge recorded on Wednesday. The government has said that the monsoon is likely to be normal this year. Rainfall is likely to be 98% of the long-term average, said the Indian Meteorological Department. Rainfall may go up due to the weakening of the El Nino phenomenon—which disrupts normal weather patterns—and the heat wave prevailing in northern India. The monsoon wind brings around 75%-90% of the total rain in most parts of India. The Reserve Bank of India (RBI) has expressed optimism over the ease of inflation on the event of a normal monsoon. The Indian Banks’ Association has said that banks need not increase interest rates now as there was enough liquidity in the system. The trade minister said that there is no need for the RBI to intervene and stem rupee appreciation. The UPA government has sailed through the cut motion demanded by Opposition parties against an unpopular hike in fuel and fertiliser prices. The government was backed by 289 MPs in the 545-strong Lok Sabha, while the Opposition managed 201 votes. A more-than-expected income generated from the 3G auction has buoyed investors’ expectation on the curtailing of government borrowing. The Centre is scheduled to borrow Rs2.87 trillion ($64.3 billion) during the first half of the fiscal year out of a total Rs4.57 trillion for the full year. The bond market welcomed the announcement of the launching of the new 10-year bond. With the current 2020 bond losing popularity, the new bond cheered the market. The annual food price index eased in mid-April. However, the fuel price index went up. The food price index rose 16.61% in the 12 months to 17th April, lower than an annual rise of 17.65% in the previous week, government data showed on Thursday. The fuel price index rose an annual 12.69%, marginally higher than the previous week’s reading of 12.45%. Expectation of a normal monsoon and good harvest in the winter season has helped food prices to soften. The wholesale price index in March touched a 17-month high at 9.9%. The rise in inflation can be attributed to supply-side pressure as the poor monsoon last year suppressed the harvest. Prime minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani met for the first time in nine months. A positive outcome of the meeting could help to reduce the tension between the two nations. The consumer price index (CPI) rose 14.86% in March from a year earlier. The industry secretary said that industrial output growth in March is expected to be around 15% on a year-on-year basis.
In February, the industrial output grew an annual 15.1%. The government has pledged to reduce the fiscal deficit and also increase spending in infrastructure and announced changes in personal tax slabs for individuals. It is set to borrow a record $100 billion in FY11 to fund its fiscal deficit, which is projected to be 5.5% of gross domestic product. The deficit has been a dominating factor in the monetary policy of the RBI, limiting its option in its fight against inflation—which is near 10%. A new shift in the World Bank voting powers has increased China’s voting share. It is now in the third place behind the US and Japan in term of voting share. The US Federal Reserve is likely to keep interest rates near zero. S&P slashed Greek bonds to ‘junk’ status. The downgrade put Greece on par with Romania and below Kazakhstan, Hungary and Iceland. S&P has reduced its rating by two notches to ‘A-minus’ for Portugal, citing the weak condition of its finances and its uncompetitive economy.
The company produced 28.6% of total power generated in the country during 2009-10
NTPC’s installed capacity has touched 31,704MW and there are 17 locations where several units with capacity to produce 17,830MW of electricity are under construction, regional executive director, NTPC, UD Pani said today, reports PTI.
There was growth in the commercial capacity of NTPC and 1,490MW was declared commercial, he said.
Generation in NTPC units increased by nearly 6% to 218.84 billion units compared to 3% generation growth achieved in 2008-09, exceeding the target of 217 billion units, Mr Pani said.
The company produced 28.6% of total power generated in the country during 2009-10 and achieved world-class capacity utilisation with 90.81% plan load factor (PLF) during 2009-10.
Its coal stations achieved PLF of more than 90% for the third consecutive year, while six of them achieved PLF of more than 95%. Dardri Stage I achieved the highest PLF of 100.59%.
Seven NTPC coal stations figured among the top ten stations in the country in terms of PLF, he said.
Under rural electrification, NTPC Electric Supply Company Limited completed electrification of 8,017 villages and provided 8.65 lakh connections, Mr Pani said.