Insurance
Reliance Life launches post-sales insurance service

Under the new initiative it would be mandatory for Reliance Life's 1.5 lakh representatives, including employees, advisors and channel partners, to visit its policyholders at least once in year

 
Bangkok: Private insurer Reliance Life has said its representatives would meet more than 10 lakh customers by March 2013 as part of the company's new post-sales customer service initiative, the first by any insurance company in India, reports PTI.
 
Launching the new initiative, named 'Reliance Life Plus Club', the company said it would mandate an advisor or insurance agent to go back to the customer, beyond just collection of premium, with a view to maintaining a closer and long term relationship with its policyholders.
 
The new initiative is inspired by 'Zutto Motto' (forever more service) service at Nippon Life Insurance, Japan's leading insurer and Reliance Life's strategic partner with a 26% stake.
 
It would make it mandatory for Reliance Life's 1.5 lakh representatives, including employees, advisors and channel partners, to visit its policyholders at least once in year.
 
Reliance Life is the first company in India to introduce a structured post-sales customer service platform, which involves a continued relationship between the company and its customers through personal interactions.
 
Through this initiative, the company targets to meet 10 lakh customers by the end of the current financial year, Reliance Life President and Executive Director Malay Ghosh told reporters here.
 
The company sold more than one million policies in the last fiscal 2011-12 alone, while it is estimated to have a total of more than nine million policyholders.
 
During these interactions, the representatives would review the customers' existing policies, understand the changes and developments in the customers' life and family since their last policy, evaluate current insurance needs and requirements, offer advice on suitable new products and its benefits.
 
"The fundamental focus of insurance companies in India has been more on getting new customers than servicing existing policy holders. We wish to change this with our new initiative," Ghosh said.
 
"We have just launched the drive. Over a period of two to three years we are targeting at least one personal interaction every year with each of our existing customer," Ghosh said.
 
"We expect expenses of about Rs12 crore would be incurred this year under the initiative," he added.
 
The domestic industry is facing issues on both orphan policies and mis-selling of products... if an agent has to go back to a customer after the sale, the chances of mis-selling reduce dramatically," Ghosh said.
 

User

RBI asks banks to modify FD form on pre-mature fund withdrawal

Banks will now have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder

 
Mumbai: The Reserve Bank of India (RBI) has asked banks to modify fixed deposit (FD) account opening forms to allow pre-mature withdrawal of FD on death of one of the joint account holders without any penalty, reports PTI.
 
Under the modified norms, it would be easier for the surviving joint account holders of FD with 'either or survivor' or 'former or survivor' mandate to go in for pre-mature withdrawal of fixed deposit in the event of death of the other.
 
As per the notification of the RBI, banks will have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder.
 
The RBI has issued the notification following complaints that several banks have not fully complied with its earlier circular of allowing premature withdrawal of FD by surviving joint account holder.
 
"The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit.
 
"If such a mandate is obtained, banks can allow pre-mature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder," RBI said.
 
It further clarified that "such premature withdrawal would not attract any penal charge".
 

User

India’s forex reserves down to 7-month import cover

India's foreign reserves came down to $294.4 billion at March 2012 from $311.5 billion at September 2011 end mainly due to RBI's intervention in the domestic foreign exchange market and effect of revaluation

 
Mumbai: India's foreign exchange reserves came down to $294.5 billion as on March 2012, enough to cover imports of seven months, as against eight-and-half months about six months ago, reports PTI.
 
The reserves -- a parameter to gauge a country's ability to absorb external shocks -- came down to $294.4 billion at end-March from $311.5 billion at September 2011 end mainly due to "intervention in the domestic foreign exchange market and effect of revaluation," a RBI report said.
 
"At the end of March 2012, the import cover declined to 7.1 months from 8.5 months at end-September 2011," said RBI's 'Half Yearly Report on Management of Foreign Exchange Reserves: October 2011 March 2012'.
 
India's import bill was $37.9 billion in July 2012.
 
Import cover refers to the number of months of imports that could be paid for from the foreign exchange reserves -- an important parameter in gauging a nation's ability to absorb external shocks.
 
With the changing profile of capital flows, traditional approach of assessing reserve adequacy in terms of import cover has been broadened to include a number of parameters, the RBI said.
 
As per the report, the ratio of short-term debt to the foreign exchange reserves which was 23.0% at end-September increased to 26.6% at end-March 2012.
 
Also, the ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves increased from 68.3% as on end-September 2011 to 79.9% as at end-March 2012.
 
RBI further said the rate of earnings on foreign currency assets and gold decreased from 2.09% in July 2009-June 2010 to 1.74% in July 2010-June 2011, "reflecting the generally low global interest rate environment".
 
As at end-March 2012, the RBI said out of the total foreign currency assets of $260.1 billion, $140.3 billion was invested in securities and $114.3 billion was deposited with other central banks, BIS and the IMF.
 
The rest ($5.5 billion) comprised deposits with foreign commercial banks and funds placed with the External Asset Managers.
 
The report also said the RBI held 557.75 tonnes of gold forming about 9.2% of the total foreign exchange reserves in value terms as on March 2012.
 
Of these, 265.49 tonnes are held abroad in deposits/safe custody with the Bank of England and the Bank for International Settlements.
 
The foreign exchange reserves consists of major currencies such as US dollar, Euro, Pound Sterling and Japanese Yen.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)