IRDA Does Not Want Insurers To Publish Their Ranking In Advertisements

On May 3, 2014

The Insurance Regulatory and Development Authority (IRDA) has send notices to insurance companies to ensure they do not publish their ranking in any advertisements. As per Insurance Advertisements and Disclosures regulations, 2000, insurance companies cannot make advertisements, which can be misleading or which make unfair comparisons between companies and their…

IRDA Imposed Penalty Of Rs 1.77 Crores On Reliance Life

On April 14, 2014

The Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 1.77 crores on Reliance Life Insurance Company for violating norms including obtaining business from unlicensed entities. IRDA observed that Reliance Life failed to monitor the activities of the corporate agent and this is considered as a serious…

All Distribution Channels Should Have Level Playing Field

On April 9, 2014

The Insurance Regulatory and Development Authority (IRDA) has paved the way for new distribution channel by issuing draft guidelines for Insurance Marketing Firms (IMFs). However, this draft also indicates towards some restrictions and raises some questions. IMFs will be allowed to sell insurance products of multiple insurers and other financial…

IRDA Issued Draft Guidelines For Setting Up IMFs

On April 3, 2014

The Insurance Regulatory and Development Authority (IRDA) has issued draft guidelines for setting up Insurance Marketing Firms (IMFs). This will pave the way for new distribution system. IMFs can market and service insurance, apart from marketing other financial products. These include products of mutual fund companies, pension products of Pension…

Combined Ratio For Motor Insurance Likely To Touch 200%

On April 1, 2014

On the back of higher claims and subdued growth in the third party segment, the combined ratio for motor insurance might touch 200% by the end of FY’15, say insurers. Recently, the Insurance Regulatory and Development Authority (IRDA) has hiked the third party premium rates by 9-20%. Insurers say that…

Safety Rating System For Cars May Be Linked To Insurance

On March 31, 2014

In the light of several issues being raised over the quality of vehicles made in the country, the government is planning to formulate a safety rating system for cars based on their robustness. And, the rules if implemented may be linked to lower insurance premiums. Talks will be held with…

Despite Hike In Rates, Industry Likely To Have Third Party Loss Of Rs 8,000 Crores

On March 31, 2014

With effect from first April 2014, the Insurance Regulatory and Development Authority (IRDA) has increased third party motor premium rates by meager 9-20% against its draft proposal of up to 137%. Insurers say that this marginal increase will not help curtail the losses for them. Insurers say that this increase…

Banks Might Be Given Five Years To Migrate To Insurance Broking Model

On March 28, 2014

The committee set up by the finance ministry to break the deadlock between the finance ministry and banks on insurance broking, is likely to suggest that banks will have to sell covers of multiple insurance companies. However, they will be given five years to migrate to this model. Over the…

Third Party Premium Increased By 9-20%

On March 28, 2014

The Insurance Regulatory and Development Authority (IRDA) has increased third party premium by only 9-20% against the proposal of up to 137%. The new rates will be effective from first April 2014. For private cars, the third party premium has been increased by 19-20% across categories -sub-1,000 cc segment, the…

Insurers Allowed To Collect Advance Premiums

On March 25, 2014

The Insurance Regulatory and Development Authority (IRDA) has modified its linked and non-linked insurance products regulations. Now IRDA has allowed insurers to collect advance premium. Insurers are allowed to collect advance premium within the same financial year for the premium due in that financial year. However, if the advance premium…