“They are short in solvency and losing money on underwriting. I think insurers will wait for some more time, may be one or two more years till finances improve,” GIC chairman & managing director Ashok K Roy said
Kolkata: Non-life insurers are unlikely to hit the capital market to raise resources and are expected to wait for a year or two because of weak financials, reports PTI quoting a top official of an insurance company.
“None of the insurance companies are in a position to list their shares. Insurers are not making a profit. Their finances are fragile,” General Insurance Corporation of India (GIC) chairman & managing director Ashok K Roy told an interactive session of the Indian Chamber of Commerce here.
“They are short in solvency and losing money on underwriting. I think insurers will wait for some more time, may be one or two more years till finances improve,” Roy said.
The non-life insurance companies are not in favour of embedded value concept for valuation mentioned in the draft regulation by IRDA (Insurance Regulatory and Development Authority) on IPO (initial public offers).
Non-life insurers underwriting losses stand at Rs8,817 crore in 2011-12 down from Rs9,944 crore registered last year.
Back in September last year, IRDA had issued draft guidelines on initial public offers for general insurance companies.
Most of the non-life companies have already taken steps to improve their financials by revising the tariff in health schemes.
The draft norms non-life insurers from capital markets need to have at least 10 years experience. The insurers will also have to seek prior approval from IRDA for the public issue of shares.
The Supreme Court has asked the market regulator to facilitate the refund, amounting to thousands of crores of rupees, after ascertaining the genuineness of about three crore investors from whom the companies had raised money through bonds
Chennai: Market regulator Securities and Exchange Board of India (SEBI) on Friday said it is yet to receive “all papers” in the high-profile Sahara case where the Supreme Court has directed two group companies to refund money to bond holders, reports PTI.
SEBI chairman UK Sinha said it is fully competent to verify the documents related to the case, with regard to checking the genuineness of the bond holders of two Sahara Group companies.
“SEBI is fully competent to verify. It has got its agencies in place and it will do its task on time, provided all the information papers are given to us. (But) all papers have not been given to us,” Sinha told PTI here.
He was responding to a query on whether any verification agency has come forward to ascertain the genuineness of bond-holders.
SEBI held its board meeting in Chennai on Friday.
The Supreme Court has asked the market regulator to facilitate the refund, amounting to thousands of crores of rupees, after ascertaining the genuineness of about three crore investors from whom the companies had raised money through bonds.
Earlier this week, SEBI had said it has put on hold the process for roping in an “in-person” verification agency that was to help it ascertain genuineness of bondholders in the Sahara case.
SEBI had begun the process in November for selecting an IPV (In-Person Verification) Agency to help it ascertain the credentials of bondholders of two Sahara group companies.
The Supreme Court, in its order on 31st August, had asked SEBI to ascertain the genuineness of an estimated three crore bondholders of OFCDs (Optionally Fully Convertible Debentures) of two Sahara group companies (Sahara Housing Investment Corporation and Sahara Real Estate Corporation) and thereafter facilitate refund of the money with the interest.
Subsequently, the market regulator had decided to carry out in-person verification of these bondholders.
Later, the apex court passed another order, wherein Sahara group was allowed to refund the money in three instalments till first week of February.
Dr Nita Mukherjee narrates how an ashram has put its philosophy to work
Prem Niketan (‘abode of love’) is the story of the transformation of an ashram deeply rooted in propagating humanism to an organisation providing a range of social services. At the core of Prem Niketan (PN) is the philosophy that goodness is embodied in the human heart; it needs to be stoked with ethical practice. Chanderbala Parnami, its president since 1999, emphasises strongly that PN is not a ‘religious organisation’; she asserts that Manav Sewa Sangh (of which PN is an affiliate) represents a philosophy of life—of realising goodness through doing good.
Prem Niketan Ashram, founded by Maharaj Sharananandji, was registered under the Society’s Act in FY1953-54. Today, it runs four social service institutions under its aegis. These are: Prem Niketan Hospital (PNH), Prem Niketan Secondary School (PNSS), Geriatric-cum-nursing Care Centre (GCC) and Shubh Shanti Niwas (SSN, an old age home).
PNSS caters mainly to the children of labour class from the surrounding areas. To encourage these first-generation students, PNSS provides free conveyance from the bastis; 50% students are given free education. Others pay nominal charges and PNSS organises donations of study materials and mid-day meals; even the science lab and the computer centre have been set up with donations. Asha Tak, director, STInfosys, a volunteer for PN since 2006, focuses on PNSS. She says, “Running a school with 500 students without government aid is credible when you see the facilities and performance of the students.” Many students are sponsored. Annual sponsorship per child varies from Rs3,500/- for 1st to 5th standard up to Rs6,000/- for 10th to 12th standard children.
However, PN’s most exemplary work is in the field of caring for the old and infirm. GCC, started in 2006, as a part of the PNH has four deluxe rooms and a 20-bed general ward. This ward is run on a charitable basis; most patients are terminal cases.
SSN, a home for people over 60, currently has 25 two-seater, fully furnished rooms, with attached baths and a small sit-out. There’s a dining room, recreation centre and library. Four simple and nutritious meals are served to inmates and all services, including housekeeping, laundry and conveyance to the city, are provided—all for Rs10,000/- per month. Only if an inmate is completely bed-ridden and needs special personal attendant, extra charges have to be paid.
The average age of SSN inmates is 80. They come from all walks of life, including academics, IAS officials and engineers. A former IAS officer, who did not want to be named, said: “It is the best arrangement, as a last alternative. At least I don’t have to worry about ordering provisions or whether the maid will turn up or not. And since there is a hospital within the premises, help is at hand in case of any medical emergency.” Since all the inmates are old and ailing, it does get a bit gloomy at times, he said.
Jaipur currently has few retirement homes so close to the city. Realising that the expanding city needs more such facilities, PN wants to add 100 rooms to SSN. They accept donations of Rs10 lakh per room from prospective inmates. If those who have paid for the room don’t move in immediately, PN rents the rooms to those in need. The income so obtained cross-subsidises GCC. On the death of these ‘owner-inmates’, the rooms revert to PN which can either sell or rent them.
Recently, in collaboration with Cure2children Foundation (Italy), PN started the South-east Asia Institute for Thalassaemia and has successfully done a bone marrow transplant free of cost. It raised the required donations of Rs9 lakh for this. Several such cases waiting for funding. Donations to Prem Niketan are tax-exempt under Section 80G of the Income Tax Act.
Prem Niketan Ashram
Ashram Road, Jawahar Circle,
Durgapura, Jaipur 302018, Rajasthan
Phone: 0141 2550744; 2549021
Email: [email protected]