IRDA has come up with momentous regulations which will change the health insurance industry workings if the draft is implemented without watering it down. TPAs' role will get marginalized and hence they may try to scuttle the implementation in its current form
Insurance Regulatory and Development Authority (IRDA) has finally issued draft health insurance regulations addressing several areas of concern which were raised in a public interest litigation (PIL) by social activist Gaurang Damani. The draft covers product design, renewability, portability, file and use procedures, protection of policyholders' interest, servicing of health insurance policy, third party administrators (TPA), contract between insurer and hospitals and so on.
According to Mr Damani, "They have accepted 80%-90% of what I had demanded in the court. A few minor things remain, some of which are already there in their other circulars, but just need to be added to the policy document. I would mention the same in the next court hearing. One point that is missing in the draft guidelines is need for a doctor's signature in case of claims denial."
The important points in IRDA guidelines are related to following:
The commodity market regulator says the ratio of open position with the volume of trading in some commodities is very high compared with international practices in national exchanges
New Delhi: Commodity market regulator the Forward Markets Commission (FMC) has found huge disparity between the ratio of open interest and the volume of trading in some commodities traded on five national commodity exchanges, reports PTI.
In futures market, 'Open Interest' is the number of outstanding contracts that are held by market participants at the end of trading day. Globally, trading volume and open interests go hand-in-hand on exchanges.
"The Commission has done a preliminary analysis ... And it has been observed that the ratio of open position with the volume of trading in some commodities is very high as compared to the international practices in national exchanges," the FMC said in a circular.
The disparity indicates that the day trading volumes and speculation are far in excess of open interest positions, which is not in line with the avowed purpose of use of commodity futures market as a hedging platform, it said.
To understand the situation better, the regulator has directed national commodity bourses -- MCX, NCDEX, NMCE, ACE and ICEX to submit month-wise and year-wise details regarding ratio of open interest with the volume of trade in the top 15 commodities for 2009-10, 2010-11 and 2011-12 fiscal in a week.
It has also asked these exchanges to submit a road map to to bring such ratios at par with the international standards.
Trade analysts said that the trend of high trading volumes and low open interest is not healthy.
Contrary to the gloom and doom prevailing, a Moneylife aggregation of 895 companies shows surprisingly good results for the March quarter
A majority of the companies have reported their March quarter results; we now have the data of 895 companies in the Moneylife sample of 1,150 companies whose results have come out. At first glance, sales, for the final quarter of the 2011-12 fiscal, increased by 19%, year-on-year (y-o-y), to Rs10,68,167 crore. Operating profits has increased by 12%, y-o-y, to Rs1,60,068 crore while net profits increased even more, by 18%, y-o-y, to Rs99,039 crore. This is highly impressive since there has been a severe pressure on margins. An analysis of 895 companies saw margins have actually shrunk a bit, on a y-o-y basis, at 9.27%, when compared to 9.36% recorded last year. The margins have somewhat stabilised now instead of worsening, which is good news.
Out of the 895 companies that reported results, a whopping 72.29% of the companies saw their fourth quarter sales increase over the corresponding period last year. While cost pressures continue to remain, the largest of the companies have managed to increase sales, operating profit as well as net profit, which is a positive sign of the Indian economy ability to withstand difficult times.
As many as 38% (343 companies) of the sample actually recorded higher net profit margin over last year's March quarter. The aggregate results have been somewhat skewed by the performance of a few larger companies. We will discuss the detailed performance once all the results of Moneylife sample, comes in.