IRDA gives clean chit to LIC in transfer of profits case

Hyderabad: The Insurance Regulatory Authority of India (IRDA) today gave a clean chit to Life Insurance Corporation of India (LIC), the largest insurance company in India, in the case of alleged violation of rules pertaining to transfer of profits among its various schemes, reports PTI.

The insurance watchdog earlier said it would launch an investigation in to the books of LIC pertaining to 2009-10.

IRDA chairman J Hari Narayan said there is no violation committed by the LIC and it was just an actuarial shortage as to the current actuarial estimates.

An investigation done earlier by IRDA revealed that there was a deficit of around Rs14,000 crore in one account covering annuity policies that offered high assured returns.

"This is not a real cash shortage.... They will project the gap between the liabilities and assets assuming a certain pattern of liability and assuming a certain generation of income from the investments made," he told media persons after a function organised by IIRM here.

He said the LIC generates a lot of surplus which technically belong to shareholders.

"The LIC is used to meet the shortfall with this cash flow. It is entirely possible in the years to come that this imbalance will be rectified. So, at the moment it is not a cause of concern and these figures are disclosed in their annual account," Mr Hari Narayan said.

LIC, in a statement, earlier said the deficit is only a notional actuarially estimated figure for a period of over 20 years and it is different from a financial deficit or an investment loss.

Replying to a query, he said the IPO draft guidelines for non-life insurance companies have been sent to the Securities and Exchange Board of India (SEBI) for comments.

"As far as life insurance companies are concerned, the guidelines have been cleared by SCADA, a body constituted by and approved by SEBI.

We will be bringing out a circular shortly. With regard to non-life companies, we have done the preliminary work and the matter is engaged to the attention of SEBI," the regulator said.

The Institute of Insurance and Risk Management (IIRM), in partnership with ICICI Prudential Life, today announced the graduation of its third batch of full-time executive program in insurance and risk management program.
 

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Triveni Engineering Q4 net profit declines to Rs17.25 crore

Triveni Engineering & Industries Ltd, engaged in the manufacture of sugar and engineered-to-order mechanical equipment, said its net profit for the fourth quarter ended 30 September 2010, declined to Rs17.25 crore from Rs68.22 crore in the corresponding quarter last year.

During the Q4 FY09-10, its net sales increased to Rs587.36 crore from Rs553.49 crore, the company said in a statement.

On Friday, Triveni declined 4.34% to Rs100.25 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.73% down at 19,585.

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Handicrafts exports up 58% in October

New Delhi: Handicrafts exports grew by a robust 58.55% year-on-year to $41.73 million in October, 2010, on the back of increasing demand from the US and European markets, reports PTI.

Handicraft exports stood at $26.32 million in October, 2009, according to data provided by the Export Promotion Council for Handicrafts (EPCH).

"There is a good demand for handicrafts products, mainly from the US and European markets," EPCH executive director Rakesh Kumar said.

Among the items that saw maximum export growth were imitation jewellery (up 37.94%), woodware (up 33.20%) and shawls and artware (up 30.13%).

The council said the industry is hopeful of achieving the export target of $2.2 billion fixed by the government for the current fiscal.

"We expect to achieve the export target as there is a good response not only from the traditional markets, but also from new markets like Latin America and Africa," Mr Kumar said.

In the first seven months of 2010-11, the sector's exports jumped by 23.91% to $1 billion.

The US and EU together account for 70% of the country's handicraft exports.

Moradabad, Jaipur, Saharanpur and Jodhpur are the major handicraft hubs in the country catering to global markets. The sector employs about 10 lakh people.
 

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