Update: About Indian Insurance companies

Date: June 27, 2008

1.Aegon Religare Life Insurance Company Limited, a joint venture life insurance company promoted by Religare Enterprises Limited, India, Bennett Coleman & Company Limited, India and Aegon N.V., Netherlands has been registered as a Life Insurer under Section 3 of the Insurance Act, 1938 with the Authority. Besides DLF Pramerica Life Insurance Company Limited, a joint venture life insurance company promoted by DLF Limited, India and Prudential International Insurance Holdings Ltd, USA has also been registered as a Life Insurer under Section 3 of the Insurance Act, 1938 with the Authority. The Certificates of Registration (Forms IRDA/R3) have been issued by the Authority to the two companies today. With the registration of these two companies today, the total number of life insurers registered with the Authority has gone up to 21.

2.Bharti Axa General Insurance Company Limited, a joint venture general insurance company promoted by Bharti Ventures Limited, GIBA Holdings Pvt Limited, India and Societe Beaujon, a wholly owned subsidiary of AXA S.A., France has been registered as a General Insurer under Section 3 of the Insurance Act, 1938 with the Authority. The Certificate of Registration (Forms IRDA/R3) has been issued by the Authority today. With this registration, the total number of general insurers registered with the Authority has gone up to 20.

(C R Muralidharan)

Member

Source: http://www.irdaindia.org/

Ulips set to get costlier

Ulips set to get costlier

The next time you buy a unit-linked insurance plan, you will be shelling out more money depending on the type of Ulip you buy and the company you buy from.This is because the Finance Bill that had proposed applying the service tax (12.36 per cent) on all charges that are deducted by an insurance company in a Ulip, such as the fund management charge (FMC), premium allocation charge, policy administration charge (which is deducted on a monthly basis), switching charges and various miscellaneous charges, has been passed by both the Houses of the Parliament this month. The chief financial officers of life insurance companies met last Wednesday and have decided to pass on the service tax burden to customers, confirmed officials of various life insurance companies. However, sources said a few insurers have agreed to pass on the service tax on fund management charges and policy administration charges to customers, but are yet to take a call on whether to pass on the service tax on the policy administration charges. Insurance companies will deduct the service tax amount from the premium that will be invested in the fund of your choice. As a result, lesser amount will get invested in the fund. The service tax will be applicable not only on the first year premium, but also on subsequent renewal premiums and the lump sum amount (top-ups) you add to your fund in any year.Therefore, you will lose more if you opt for a Ulip from a company that has higher charges. The charge structure varies across Ulips and insurers. The premium allocation charges across insurers range from 0 per cent to as high as 100 per cent in the first year. Fund management charges vary from 0.25 per cent to 3 per cent, while insurers deduct policy administration charge (normally Rs 50) on a monthly basis. "As a result of the service tax, Ulips with lower premium allocation charges will now become attractive. Besides, insurers will now be forced to reduce their premium allocation charges," said a senior insurance official. Life insurance companies clocked new business premium of Rs 92,988.71 crore (Rs 929.88 billion) in 2007-08, of which around 70 per cent came from Ulips. The life insurance industry will be paying over Rs 3,000 crore (Rs 30 billion) as service tax.

http://in.rediff.com/money/2008/may/28perfin.htm

ING Vysya Life adds two new plans

ING Vysya Life adds two new plans

MUMBAI: Private insurance company ING Vysya Life on Thursday announced the launch of two new insurance products, ING Term Life and ING Term Life Plus. Both the products offer flexibility to choose premium paying terms between 10 years and 30 years. The minimum age of the individual should be 18 years and the maximum age limit is 65 years for both the products. Similarly, the maximum maturity age is capped at 75 years for both the plans. In case of ING Term Life, the minimum sum assured you can opt for is Rs 10 lakh. The customers can opt for paying a single premium, or limited premium or regular premium terms. If a 35 year old male chooses a sum assured of Rs 20,00,000 and a policy term of 20 years, he will have to pay a regular premium of Rs 6,249 every year. If he opts for limited premium, it would amount to Rs 18,402 per annum for a 5 year payment term. The single premium for this customer would be Rs 81,062. For ING Term Life Plus plan, the minimum sum assured you can opt is Rs 5 lakh. The maximum sum assured, however, will depend on your eligibility. If a 35 year old male chooses a sum assured of Rs.5,00,000 and a policy term of 20 years, he will have to pay a regular premium of Rs.5,278 per annum. If he opts for limited premium, it will be Rs 11,127 per annum and single premium will be Rs 45,363. For ING Term Life Plus, the company will return 40% of the regular premium if the policy holder survives half the policy term. On maturity, the total premiums are paid, after deducting mid-term benefits. Rider options, including accidental death benefits and accidental death, disability and dismemberment benefits are also available on the two plans. Tax benefits under section 80C and section 10(10D) of the Income Tax Act 1961 (‘Act’) are available on both the policies.