Speaking at a Moneylife Foundation seminar, IRDA chairman J Hari Narayan also said prohibiting banks from selling insurance products is not feasible in India
J Hari Narayan, chairman, IRDA (Insurance Regulatory and Development Authority), said no party should be refused an insurance policy and disability should not be a ground for rejecting insurance. It is also against the rules to refuse medical insurance to senior citizens, he said. However, he admitted that enforcement on the ground may need to be tightened. He was speaking at a small interactive session organised by Moneylife Foundation with senior citizens and physically challenged. The IRDA chairman said that he would look into the issues raised by the group of senior citizens and activists.
The IRDA chairman later addressed a packed public meeting on the topic whether sensible health insurance is possible in India. On prohibiting banks from selling insurance, Mr Hari Narayan said that this is not feasible in India, though countries like Canada do have such stringent policies. Issues relating to life insurance, mis-selling, bancassurance, lapsed policies and poor grievance redressal were also discussed.
Health insurance is a cause of concern for everyone. With rising medical inflation and annual hike in health insurance premium, quality healthcare seems to be a distant dream, except for the elite who can afford the expensive hospital treatment or pricey health insurance premiums, the activists said.
The common issues that most citizens face are rising health insurance premium, inability of senior citizens' to increase sum insured, TPA (third party administrators) and intermediary issues and restrictive mediclaim policies. There were complains that more and more claims are getting rejected for impractical reasons and cashless facility restricted to few hospitals.
Moneylife Foundation, in a memorandum presented to the Mr Hari Narayan, raised these and others issues along with suggested actions.
Regarding handling health insurance claims, Mr Hari Narayan pointed that the system was working well, by and large. He pointed out that last year out of the 47 lakh claims received, 9.4 lakh claims were rejected. He pointed out that 80% of the claims are met and the industry has paid out as much as Rs5,885 crore. More than half the claims were settled within 30 days. He pointed out that the most frequent claims are from fever due to unknown origin followed by cataract.
Sensible universal health cover for masses is certainly a possibility in India, the IRDA chairman said. The government-initiated products like RSBY (Rashtriya Swasthya Bima Yojna) has done well for the masses with premium as low as Rs400 per family for a cover of Rs30,000 sum insured. They cover primary and secondary health care. Arogya Shree is another success story in Andhra Pradesh which covers tertiary health care i.e. covering only if any procedure is performed. A product, which is a combination of two can be promoted to masses for bulk penetration. This can be offered to certain section of society at nominal cost.
The other half of the population, which is at a higher income level can buy this product at a higher rate, which will still be much lower than an individual mediclaim product. The product may be up to certain sum insured. If anyone needs higher sum insured, they can buy 'top-up' policy to cover over and above the sum insured, which is offered by this mass product, Mr Hari Narayan said.
The seminar was attended by a number of activists, experts and eminent citizens.
The deal, which is valued at an aggregate amount of Rs1,450 crore, is the largest Foreign Direct Investment deal in any Indian asset management company till date
New Delhi Competition watchdog Competition Commission of India (CCI) has approved the proposal of Japanese major Nippon Life to acquire 26% stake in Reliance Capital's mutual fund arm RCAML, reports PTI.
The deal, which is valued at an aggregate amount of Rs1,450 crore, is the largest Foreign Direct Investment (FDI) deal in any Indian asset management company till date.
"Considering the facts on record and the details provided in the notice... and the assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have any appreciable adverse effect on competition in India and therefore...
approves the proposed combination," CCI said in an order.
CCI noted that Nippon Life, which is a global player in providing asset management and portfolio management services, has no direct operations or presence in India in the same space, except for a 26% equity participation in Reliance Life Insurance Company, a subsidiary of R Capital.
"It is observed from the information available on the website of the Securities and Exchange Board of India (SEBI) that there are more than 40 other AMCs registered with SEBI providing services similar to the asset management services provided by RCAML in India and there are more than 250 portfolio managers registered with SEBI providing similar services," it said.
First announced in January this year, Nippon Life will invest an aggregate value of Rs1,450 crore ($290 million) to acquire 26% stake Reliance Capital Asset Management Company (RCAML).
The transaction pegs the valuation of Reliance Capital Asset Management at around Rs5,600 crore ($1.1 billion).
This deal further expands Reliance Capital's partnership with Nippon Life. In October last year, Reliance Capital completed a 26% stake sale in its life insurance venture, Reliance Life, to Nippon Life for over Rs3,000 crore.
Reliance Capital Asset Management (RCAM) manages around Rs1,40,000 crore assets.
Nippon Life is a Fortune 100 company and the seventh-largest life insurer in the world. It is a leading private life insurer in Asia and Japan.
CCI is empowered by an Act of Parliament to scrutinise high-value deals that could have a bearing on fair competition in the market.
Shares of Reliance Capital closed at Rs287.95 on BSE, down 2.83% from its previous close.
If today’s lows hold, the Nifty may see a short rally
A weak rupee and dismal global cues pushed the markets lower today. If today's lows hold, we may see a small bounce-back. Today the Sensex hit a high of 16,133, the lowest since 10 January 2012 while it went down to the level of 15,975, its lowest since 13 January 2012. The National Stock Exchange (NSE) saw a volume of 64.55 crore shares which is above its 10 day moving average.
The market opened sharply lower on weak global cues and the depreciating rupee, which hit a fresh five-month low. The inability of Greece to form a government led to fears of the beleaguered nation discarding the euro, thus worsening the Eurozone crisis. The development led the US markets lower overnight, which also had a bearing on the Asian back that were trading lower in morning trade today.
Back home, the Nifty opened 108 points down at 4,875 and the Sensex tanked 195 to resume trade at 16,133. Meanwhile, the rupee fell to a five-month low losing 47 paise to 54.26 against the US dollar on the Interbank Foreign Exchange market in early trade on increased capital outflows amid strong demand for the greenback. The rupee had touched a record intra-day low of 54.32 on 15 December 2011.
While the opening figure on the Sensex was its intraday high, the Nifty hit this level in a short time with the index touching 4,882. Across-the-board selling saw all sectoral indices in the negative. The market, which witnessed a gap-down opening, was range-bound in subsequent trade.
Concerns of a slowdown in economic growth and a lower opening of the European markets resulted in the benchmarks falling to their mid-session lows in noon trade. At the lows, the Nifty fell to 4,837 and the Sensex fell below its psychological level to 15,975.
Trade continued to be lacklustre in the late session as global cues and the weakening rupee thwarted any recovery attempt. At the close, the Nifty declined 85 points (1.71%) to 4,858 and the Sensex closed 298 points (1.83%) lower at 16,030.
The advance-decline ratio on the NSE was negative at 444:1209.
Among the broader markets, the BSE Mid-cap index declined 0.78% and the BSE Small-cap index dropped 1.11%.
All sectoral indices settled lower. The key losers were BSE Metal (down 2.68%); BSE Auto 2.59%); BSE Consumer Durables (down 1.94%); BSE Capital Goods (down 1.69%) and BSE Bankex (down 1.65%).
Sterlite Industries (up 0.87%) and Bajaj Auto (up 0.47%) were the only gainers on the Sensex. The top losers were Tata Motors (down 7.34%); Tata Steel (down 3.89%); BHEL (down 3.74%); HDFC (down 3.71%) and Hindalco Industries (down3.28%).
The Nifty was led by BPCL (up 2.53%); Power Grid Corporation (up 1.65%); Cairn India (up 1.30%); Bajaj Auto (up 1.08%) and Kotak Mahindra Bank (up 1.02%). Tata Motors (down 7.70%); Tata Steel (down 4.40%); SAIL (down 4.18%); Reliance Infrastructure (down 3.73%) and Jaiprakash Associates (down 3.59%) settled lower on the index.
Markets in Asia settled lower on concerns about the Greek crisis and a tepid loan growth in China's top four state-controlled banks in the first half of this month. The global developments are seen dampening overseas investors' appetite in the region.
The Shanghai Composite declined 1.21%; the Hang Seng tumbled 3.06%; the Jakarta Composite dropped 1.61%, the KLSE Composite fell by 1.60%; the Nikkei 225 fell by 1.12%; the Straits Times slipped 1.58%; the KOSPI Composite tumbled 3.08% and the Taiwan Weighted settled 2.18% lower.
At the time of writing, the key European indices were mostly lower while the US stock futures were in the positive.
Back home, institutional investors-both foreign and domestic-were net sellers in the equities segment on Tuesday. Foreign institutional investors were pulled out Rs184.28 crore and domestic institutional investors withdrew Rs82.85 crore.
Diversified business house Videocon Industries said it will raise $51.02 million (over Rs270 crore) through issue of securities on a private placement basis from overseas market. In a filing to the BSE, the company said it will issue 1,57,50,000 Global Depository Receipts representing 1,57,50,000 equity shares. The stock gained 0.85% to close at Rs171.50 on the NSE.
Pharma major Aurobindo Pharma on Wednesday stated that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Lamivudine and Zidovudine tablets in America. The tablets are the generic equivalent of ViiV Healthcare Company's Combivir tablets and are indicated as part of antiretroviral combination therapy for the treatment of Human Immunodeficiency Virus (HIV) infected persons. Aurobindo declined 0.52% to close at Rs105.55 on the NSE.
Indian Overseas Bank (IOB) is likely to raise $500 million this fiscal to fund its business growth overseas. The funding will be through a Medium Term Note (MTN) programme, which is basically a debt instrument with a maturity of 5-10 years. The stock tumbled 2.37% to settle at Rs78.25 on the NSE.