Insurance
IRDA slaps Rs5-lakh fine on Bajaj Allianz Life

IRDA found the insurer guilty of enrolling new members into the existing group scheme, Bajaj Allianz Life Group Unit Gain-a ULIP Group Insurance Plan, issued to YES Bank, even after fresh circular on ULIPs was issued

 
New Delhi: Sector watchdog Insurance Regulatory and Development Authority (IRDA) has imposed a fine of Rs5 lakh on Bajaj Allianz Life Insurance for violating regulations pertaining to group unit-linked policies (ULIPs), reports PTI.
 
"By taking it into account of the seriousness of the violation a penalty of Rs5 lakh is imposed on the insurer under section 102(b) of the Insurance Act, 1938," IRDA said in an order.
 
The penalty should be paid within 15 days from the date of receipt of the order, it said.
 
The regulator has found Bajaj Allianz Life Insurance guilty of enrolling new members into existing group schemes, where master policy was issued prior to 1 September 2010 without revising the existing scheme as required by circular issued by 27 October 2010.
 
The insurer enrolled new members into the existing group scheme (Bajaj Allianz Life Group Unit Gain-a ULIP Group Insurance Plan) issued to YES Bank, even after fresh circular on ULIPs was issued, it said.
 
However, the company in its submission to the regulator said "that by its actions (by keeping in mind the spirit of the circular), has complied with the directions as given in the aforesaid circular on a prospective basis and have not offered any product for sale in contravention of the circular from 1 September 2010".
 

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Reebok says deploying extra resources to settle franchisees' dues

Reebok said it is taking longer than usual time to reconcile customer accounts due to the ongoing investigations even as the franchisees are seeking intervention from Adidas CEO


New Delhi: Reebok India on Friday said it is deploying additional resources to 'reconcile customer accounts' even as about 80 of its franchisees have written to the chief executive (CEO) of the parent company Adidas seeking his intervention, reports PTI.
 
The company, which had filed a first information report (FIR) against its two former executives alleging fraud of Rs870 crore, said it is taking longer than usual time to reconcile customer accounts due to the ongoing investigations.
 
"We are pro-actively deploying additional resources to address the concerns and expedite the resolution," Reebok India Company told PTI in an email response without elaborating details.
 
The company said authorities are carrying out thorough investigation into the fraud allegations against its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat across various dimensions, which also includes its own customers.
 
"Hence it is taking longer than usual to reconcile customer accounts," it added.
 
When asked about the letter sent by nearly 80 franchisees from the National Capital expressing their insecurity due to lack of clarity from the company about its future operations in India, Reebok India declined to address the issue directly.
 
"The content of the letter you are referring to has come to us via email through an anonymous source. It is not undersigned by any of the authorised Reebok India Company franchisee and hence it is difficult to ascertain the credibility," it added.
 
In a letter addressed to Adidas Group CEO Herbert Hainer on 23rd July, the franchisees sought his intervention regarding handling of the situation by the new management in India.
 
"For the last 4 months, company has not supplied any fresh products/stocks to us wherein our sales have suffered drastically. We do not understand this strategy because under the MG arrangements, the company is also incurring losses in this approach," the letter said.
 
They also said the company has not taken them into confidence while planning to initiate a new business model.
 
"There are cases where some stores, which were closed earlier and their accounts and settlements have been finalised and yet the company has not paid our dues saying it has no funds," the franchisees said.
 
The franchisees alleged ill-treatment by the company when they visited the India headquarter of Reebok in Gurgaon.
 
They further said: "At retail level, we the retailers are facing annoying questions from the landlords/mall managements for not receiving their rent/dues from Reebok India on time, which in return causes humiliation at retail front.".
 
Currently, Serious Fraud Investigation Office and the Income Tax Department are probing the alleged financial irregularities in Reebok India Company.

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Union Bank of India Q1 net profit up 10.2% to Rs511 crore

During the first quarter, Union Bank's total revenues, including interest income, rose to Rs6,561.10 crore from Rs5,399.68 crore last year

 
Mumbai: State-run Union Bank of India on Friday reported 10.2% rise in its first quarter net profit to Rs 511.59 crore, reports PTI.
 
The state-run lender had a profit of Rs464.42 crore during the corresponding period of the previous fiscal.
 
During the quarter to end-June, total income of Union Bank increased to Rs6,561.10 crore from Rs5,399.68 crore same quarter last year, it said in a filing to the BSE.
 
It further said the gross non-performing asset during the period grew to Rs6,541.46 crore from Rs3,745.10 crore.
 
Also, the bank maintained capital adequacy ratio at 11.6% during the April-June quarter of FY13, against a CAR of 12.9% in the same period of the previous fiscal, the lender said.
 

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