IRDA asks Life Council to prepare single insurance product

The whole question of bundling of insurance with other products is a major issue and we need to examine the implications further then only we will be able to come out with regulatory intervention, the IRDA chairman said

Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has asked the Life Insurance Council to design a single insurance product that will cover life as well as non-life, reports PTI.

"It will be a single product. Basically it is a product to protect life and also against personal accidents. It protects against the loss of assets - cattle and vehicles," IRDA Chairman J Harinarayana said.

"The idea was referred to the life council. Supposing we have only one type of product, will that reduce cost and make it more efficiently distributed. That is something these people will have to study and come out with," he added.

Speaking on the sidelines of a national conference organised by Assocham on 'Financial Inclusion-  Integrating Insurance into Total Package', he said it has come to their notice that microfinance institutions were asking for a high service charge on the sale of micro-insurance products.

"The whole question of bundling of insurance with other products is a major issue. Not just in India but internationally. So we are also studying this why to allow this kind of bundling. We need to examine the implications further. Then only we will be able to come out with regulatory intervention," he said.

He said the Life Council was asked to look into the issue of creating lead insurers in-line with lead bankers for serving insurance products.

Mr Harinarayana also a released whitepaper prepared by Ernst and Young in association with Assocham on 'Need for Financial Inclusion: An Integrated Approach'.

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Empower ministry to take strict action against TV ads: Soni

In the past one year government had issued 105 notices and on 85 occasions advertisements had been changed or dropped by channels concerned, however, in 15 cases the government is facing litigation

New Delhi: Information and Broadcasting Minister Ambika Soni on Tuesday sought support from members of Parliament (MPs) to take strict action against television channels broadcasting objectionable advertisements, reports PTI.

Ms Soni made this appeal in the Lok Sabha during Question Hour as she was flooded with demands for action against television channels showing advertisements which are demeaning and derogatory to women.

She said there were 15 different laws to check content on television and print media and the government had been criticised on many occasions when it had issued advisories to erring media.

"I can work within the ambit of the law. I cannot issue a directive for action against any particular channel or newspaper," Ms Soni said, urging MPs to empower the hands of the ministry to enable strict action against such channels.

Ms Soni pointed out that the government had faced legal notices whenever it had issued advisories to television channels.

She said in the past one year government had issued 105 notices and on 85 occasions advertisements had been changed or dropped by channels concerned. In 15 cases the government was facing litigation, she said.

Ms Soni said a draft Bill to tackle the issue of objectionable advertisements in media has been put up on the website of the I&B ministry and asked members to give their suggestions on the matter.

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IRDA given life insurance memorandum by Moneylife Foundation

Life insurance is plagued with several issues of mis-selling by intermediaries and even more by banks. Moneylife Foundation has handed over a memorandum to IRDA which highlights the citizens' concerns
   
Insurance Regulatory and Development Authority (IRDA) has the task of keeping insurance companies in check from mis-selling and profiting from toxic products. IRDA has initiated several steps in this direction. There is always scope for improvement and hence Moneylife foundation decided to meet number of activists, experts, eminent citizens and citizens groups to get their feedback. The issues along with required actions were put in memorandum and given to IRDA on May 10, 2012.

Life insurance issues range from mis-selling by officers of insurance companies which includes forgery and falsification of documents, bancassurance channel which has seen rampant mis-selling, deep reluctance on the part of insurers to sell term plans, traditional products carrying high commission which means poor returns for customers and insurers profiting from lapsed policies and toxic products and so. These are other issues are contained in the memorandum Moneylife Foundation has submitted to the IRDA. A copy is uploaded here.

 

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COMMENTS

pcchacko

5 years ago

The agents/advisors or other intermediaries selling life Insurance in India are not giving the correct plans suitable to individual situation.Their focus is on teh premium amount and the commission and other benefits they receive .The public too donot try to study the plans and arenot prepared to understand that Life Insurance cover is not an investment but a an essential service to the dependents that in case of premature death of the bread winner the dependents will be asble to generate sufficient income from the investment made by the claim amount.A peron should have 15 times to 25 times as life cover dependeingupon the age and liability of the insured.This can only beachieved by term insurance plans .Here the problem of understanding is that if there is no death within the policy term npthing is payable to the insured. This can be overcome by accepting the plan of term insurance with return of premiums in case there is no claim premium paid will be returned In other words the life cover will be financed from the interest on premium paid and capital is returned. One cannot have full cover through endowment or money back plans or Unit linked plans The Insurers advistors and intermediaries should guide the customers honestly .

REPLY

raj

In Reply to pcchacko 5 years ago

good comment

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