IRDA announced a 60-70% hike in the premium of third party motor insurance with effect from 25th April
The Insurance Regulatory and Development Authority (IRDA) on 15 April 2011 released the new premium rate structure of third party motor insurance. IRDA announced a 60-70% hike in the premium of third party motor insurance with effect from 25th April.
Transport associations who are against the IRDA's decision to increase the rates, have planned for a nation wide strike. Nearly 70 lakh commercial vehicles and about 400 transport associations all over the country may take part in the strike. The transport associations are also planning to start their own general insurance company for the third party vehicles.
Third party motor premium for commercial vehicles has been increased for the first time in the last four years. The rates were not increased because of the opposition from the transport unions. Since the premium rates remained stagnant for four years, general insurance companies faced loss and it adversely impacted their solvency margin.
Magma Fincorp has received the initial ‘R1’ approval from IRDA to launch general insurance business
Non-banking financial company Magma Fincorp has received the initial 'R1' approval from the Insurance Regulatory and Development Authority (IRDA) to launch general insurance business.
'R1' is the first step of regulatory clearance required for carrying on the business as an insurance company in India.
"IRDA vide its letter dated 13 April 2011, granted the approval for the R1 application of the joint venture company," Magma Fincorp said in a filing to the Bombay Stock Exchange.
The company had applied for a licence in March 2010 to enter the general insurance business. Kolkata-based Magma Fincorp has formed a joint venture with the German insurer HDI-Gerling International for the general insurance business to be conducted through Magma HDI General Insurance.
There are three stages of approval required for getting a licence for an insurance company. R1 is the preliminary approval given by IRDA wherein the regulator evaluates the promoters. In the second stage (R2), IRDA looks into the business model of the company and in the third (R3), it looks at the formation of the company.
Canara HSBC Oriental Bank of Commerce Life Insurance reported an 82% growth in gross written premium at Rs1,532 crore
Canara HSBC Oriental Bank of Commerce Life Insurance reported an 82% growth in gross written premium at Rs1,532 crore.
During March, the company garner a premium income of Rs256 crore, which helped it position amongst the top 10 private players in terms of weighted new business premium income, Canara HSBC OBC Life said in a statement.
The company issued over 1.11 lakh policies in the fiscal. "The company's consistent growth is a result of the efficient bancassurance model of distribution, high quality sales..," Canara HSBC OBC Life Insurance CEO John Holden said.
In the current fiscal, the company will continue to focus on expanding its product portfolio to support the customers of distributor banks.
The life insurer is a joint venture between Canara Bank, Oriental Bank of Commerce and HSBC Insurance (Asia-Pacific) Holdings Ltd.
Currently, the company distributes its products through the branches of partner banks. "The company's achievements testify the strength of the bancassurance model in efficiently reaching both urban and rural customers along with the corporate segment of the distributing banks," the statement added.