Liberty Videocon gets IRDA nod to start insurance business

With the R3 approval in place, Liberty Videocon GIC said it is now getting ready to file documents with the IRDA for approval of its proposed products


Mumbai: New entrant in the private space Liberty Videocon General Insurance Co on Tuesday said it received the final approval from the Insurance Regulatory and Development Authority (IRDA), which enables the company to commence operations, reports PTI.

"We have received the mandatory clearance from IRDA and are gearing up to launch Liberty Videocon General Insurance operations in India," company chief executive officer - designate and director Roopam Asthana said in a release.

"Supported by a strong and experienced leadership team, which is already in place and market expertise of our parent companies in their respective domains, we are looking forward to making a substantial difference in the Indian non-life insurance market," Asthana said.

Headquartered in Mumbai, the company will start operations with an initial capital of Rs300 crore.

"With the R3 approval in place, we are now getting ready to file documents with the IRDA for approval of our proposed products. We intend to build a customer focused business, which will address the distinct needs of individual and corporate customers through both direct and intermediary relationships backed by a prudent and disciplined underwriting philosophy and strong actuarial capability. We are in the process of implementing a technology platform for seamless and speedy experience," Asthana said.

The partnership between Videocon Industries and US-based Liberty Mutual Insurance Group, a leading global property and casualty group, Liberty Videocon General Insurance is geared to provide multi-line insurance underwriting capabilities nationally, with an emphasis on personal insurance products, it said.

Having completed its capitalisation, the company is now in the process of finalising its products and service delivery blue print, it added.

"India's rapidly rising personal income levels mean more and more Indians will be buying insurance to protect their property and possessions," Liberty Mutual's president and CEO David Long said.


Nomura cuts India GDP growth forecast to 5.8% in FY13

According to Nomura, Indian government's policies remain inflationary, reducing the scope for rate cuts, hurting growth and in turn exacerbating the fiscal deficit


New Delhi: Noting that India's monetary and fiscal policies are at loggerheads, financial services company Nomura has lowered the country's growth forecast for this fiscal to 5.8% from 6.7% earlier, reports PTI.

"Given weaker initial conditions and limited scope for a major stimulus, we revise down our GDP growth forecast to 5.8% for FY13 (year ending March 2013) from 6.7%," it said in a report.

Nomura has also cut its India GDP forecast for 2013-14 to 6.6% form the earlier 6.9%.

The government is aiming at GDP growth rate of about 7.6% this fiscal. India's economic growth rate slowed to 6.5% in 2011-12 from 8.4% in the previous two fiscals.

The financial services company said India's monetary and fiscal policies are at loggerheads and in deadlock.

It further said India government policies remain inflationary, reducing the scope for rate cuts, hurting growth and in turn exacerbating the fiscal deficit.

"In our view, the longer the economy stays in the current deadlock, the bigger the policy shock that will be required to get out," Nomura added.

On wholesale price based inflation, Nomura said that it has revised upward its average forecast to 7.6% for the current fiscal from earlier 7.1% due to higher food prices and rupee depreciation.

It has also revised upward its fiscal deficit forecast for India to 5.8% of GDP in the current fiscal from 5.2%. Government aims to bring down the fiscal deficit to 5.1% in 2012-13 from 5.76% in the previous fiscal.

Nomura's observations comes against the backdrop of global agency Moody's retained its stable rating outlook for India.


Fundamentals of domestic IT industry strong says NASSCOM

Rupee depreciation against the US dollar helps the IT industry only in the long term perspective and businesses do not gain much during short term


Chennai: Admitting that the global economic environment was still 'uncertain', industry body NASSCOM on Tuesday said the fundamentals of the domestic IT industry are strong but there was a need to 'wait' and 'watch' its performance in the next two quarters, reports PTI.

" is really uncertain. But I think the fundamentals of our industry are also very strong.... It is true that economic environment is uncertain and we will watch the next two quarters", NASSCOM President Som Mittal told reporters.

Speaking on the sidelines of a one day seminar "Surge 2012" organised by NASSCOM, he said the Indian Rupee depreciation against the US dollar helps the industry only in the long term perspective and businesses do not gain much during short term.

"Well, Rupee depreciation helps us in the long term. Because it ensures competitivesness for the industry.But in the short run, we do not really gain because as an industry we do not want currency movement to be in the centre of loss or profit. Because most people want to get what they have projected in terms of pricing", he said.

"We need a stable currency, rather than guessing how far Dollar and Rupee will be. We hope the government will bring more stability", he said.

Asked about IT companies entering new geographies, Mittal whose term as NASSCOM chief was extended for two more years yesterday, said "people are now picking up new geographies. Natural growth is happening in Europe, Latin America and Middle East".

"For short term opportunities.....we will be going to newer geographies like Latin America and Middle East and Asia. But in the longer term, we will be focusing on places were the need is higher", he said.

To a query on their expectations from the Government,he said stability in policies was needed because it would build trust between government and the business.

"I think this is the time we need the government to offer some support -- not in terms of any incentives, but as much as stable policies and more positive relationship between business and industry", he said.

On employment in the IT industry, he said projections were that 160,000 to 180,000 jobs should be created this year. "We have given offers to more than 100,000 students in engineering colleges", he said.

Last year, NASSCOM had predicted that 200,000 new jobs would be created in the industry.


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