You can expect to get yield of nearly 10% for AAA rated bonds and over 10% for bonds with lower than AAA rating. The yields have reduced a tad in the past couple of weeks due to decline in the 10-year G-Sec benchmark yields by 14bps
The 10-year benchmark government security (G-Sec) yield, which sets the tone of the fixed-income market, was at 8.92% on 26th February and has moved down to 8.78% on 10th March. The yields had touched a two-month high on 26th February due to expectations of a liquidity crunch arising from corporate tax payments in March. These have eased over the past fortnight.
LIC’s TV and Radio Ad
IRDA wants life insurers to warn their consumers against falling prey to fraudulent calls and false offers. Product advertisements will have to highlight these warning messages. Those receiving such phone calls are requested to lodge a police complaint along with details of the phone call and number. LIC has launched TV and radio ads for New Endowment Plan. The information about IRDA’s warning is played out at such a fast pace that one cannot understand anything. Obviously, it is done so that it takes minimum air time, but what has IRDA achieved when viewers and listeners cannot understand even a single word?
End of Cashless for CGHS?
Central Government Health Scheme (CGHS) is withdrawing cashless medical service in empanelled private hospitals. This will affect government employees, including those who have retired. CGHS covers five million serving employees and over three million pensioners, as well as their family members. The issue arose due to unpaid bills worth Rs200 crore to healthcare providers. Association of Healthcare Providers India (AHPI), the nodal body of private empanelled hospitals), also complained about ‘unreasonably low’ CGHS tariffs that haven't been revised for the past four years. AHPI says CGHS makes illegal deductions of 10% on all payments leading to losses for member hospitals. The rebate of 10% on treatment charges is applicable only when the government pays within seven days.
Will TP Motor Insurance Be Freed?
IRDA may de-tariff third-party (TP) motor insurance. If it does, the cost of motor insurance will certainly increase by more than the 20% hike last year. IRDA’s exposure draft has proposed steep increase of 25%-137% in tariffed third-party (TP) motor insurance premiums for 2014-15. The proposed hike is 1%-45% for two-wheelers. TP vehicle insurance is mandatory in India, but general insurers are running at a loss due to the ‘no-limit’ for compensation in case of accidental death or disability. TP insurance covers liability arising from third-party claims due to accidents.
Bariatric Operations Getting Paid by Insurers
Bariatric surgeries were not covered under mediclaim until now due to its classification as a cosmetic weight-loss procedure. But, bariatric surgery is also performed on severely diabetic patients to control diabetes. It is termed metabolic surgery in such cases and insurance companies are looking at these on a case-to-case basis to decide on reimbursement. It can involve detailed discussion with the policyholder, along with doctor, by the insurer. Keeping all the relevant records of medical history and reports will help. Recently, CGHS declared that it would fund bariatric surgery for current and former government employees.
Rajiv Gandhi Jeevandayee Arogya Yojana in Trouble
Maharashtra state government’s Rajiv Gandhi Jeevandayee Arogya Yojana (RGJAY) provides health insurance scheme for five million families earning less than Rs1 lakh a year. After initial success in covering surgeries for the eligible families, the scheme seems to be running into trouble with over 70 cancelled surgeries in various Mumbai municipal hospitals. The situation arose due to unpaid bills of medical equipment vendors. Claims amounting to around Rs60 crore are yet to be processed. RGJAY started with eight districts in 2012 and, within two years, covered the entire state. Like many other government schemes, which initially help the poor, the scheme is
liable to misuse by various stakeholders which leads to losses that are then recovered from taxpayers.