About Me

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Trichy, Tamil Nadu, India
Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN. Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. Also functioning as an office bearer of AIIEA Thanjavur Division.

Saturday, June 21, 2014

Who wants to privatise LIC?

Finance Minister sought opinions from several sectors. While asking about Banks, Vice Chairman of Kotak Mahindra Bank adviced Government to sell LIC into shares to mobilise funds.
How will a man react, if he is sane and capable of thinking logically?
"I asked about banks, not about insurance industry or Government's needs of funds" might be the right answer.
"You take care of your institution - Kotak Mahindra Bank, we can very well take care of the Government" would have been the reply, if the FM had some self respect.
"First you administer properly your insurance arm - Kotak Mahindra Old Mutual Life Insurance Co. When you become better than LIC, come and advice us", would have been the apt reply, if he had some conscious.

But, he had sought opinion from LIC whether it can be listed.
What does it mean?

Allahabad High Court ordered IRDA to scrutinise all policies of SBI Life and if required wind up the company.
If LIC chairman or somebody else asks the Government to wind up SBI Life, will the Government write to SBI Life?

But, the Government is seriously seeking opinion from LIC, whether it can be listed.
That means...
It is the intention of the Government to privatise LIC. They knew how will LICians react. So, they are creating an illusion, as if, somebody is suggesting something and they are considering.
LIC Chairman aptly replied.
We also need to reply in the form of movements involving general public, against the Government, when it tries to proceed.
Be prepared...

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LIC Chairman replies to Finance Minister
Source: Indian Express
State-run Life Insurance Corporation (LIC) is against diluting its present character and listing the entity on the stock exchanges and has

Friday, June 20, 2014

IRDA proposes ban on surrender recycling

Business Standard

Times of India

IRDA Draft Circular 

Replacement of a life insurance policy means an intermediary, agent or an insurer selling a new policy within six months of surrender of the earlier policy, entailing modification in the terms resulting in reduction of the benefit amount of the existing policy.

Irda asked insurers not to withhold any part of the surrender value payable to the policyholder towards the cost of a new policy.

In cases where it is unavoidable, the regulator has asked the insurer to document the entire process and submit to the policyholder a document highlighting the loss he will suffer and the reason for recommending the new policy.

A policyholder who is not properly guided by the existing life insurance company has the right to exercise the restoration of the existing policy within seven days from the receipt of the new one.

The policy that was replaced and restituted is entitled to all such benefits that is otherwise eligible had the policy been not replaced for taking a new policy. A policyholder who has exercised the restitution of the replaced policy is entitled to total refund of premiums, without any recoveries, on returning the new policy at his option.

Wednesday, June 18, 2014

How to shrink Rs50,000 to Rs248 - Learn from SBI Life!

Source: liveMint
Allahabad High Court asked Irda to scrutinise SBI Life’s policies, and if found guilty of a breach, to wind up its business.
It also held Irda remiss in its duties of upholding consumer interest. “Irda completely failed in exercise of its statutory duty in allowing the unilateral amendments in the policy on a mere advice of a switch over option to all the policy holders. …an advice of Irda could not be the basis of change in the policy, which is a contract unless written consent of policyholder was obtained. Irda failed to carry out its statutory duties in allowing such unilateral change by mere information without insisting upon written consent of the policy holder,” the judgement noted (edited excerpt).

As a scientist at the National Botanical Research Institute in Lucknow, Virendra Pal Kapoor, now 72, spent years developing eco-friendly, toxin-free, herbal products. Ironically, as an investor, he contaminated his own portfolio by making the cardinal mistake of buying insurance when not needed. To be fair to the scientist, he was taken in by the advice given by his life insurance agent, whom he met in the premises of his bank.
Kapoor, now retired, is a happy customer of State Bank of India and has built a relationship of trust over decades with the bank. “I met this agent at my bank, and since SBI is government owned, I thought that the companies that he represented (SBI Mutual Fund and SBI Life Insurance Co. Ltd) would also be backed by the government,”said Kapoor.
In 2007, at the age of 64-plus, Kapoor bought a unit-linked insurance plan (Ulip) on the advice of his agent. According to Kapoor, his agent, Vinod Kumar Harjai, who is an independent financial adviser (IFA), suggested that he buy SBI Life Unit Plus-II single-premium Ulip for a term of five years. The rationale offered was that the Ulip would not only help Kapoor invest in equities just like mutual funds, but also

Saturday, June 14, 2014

LIC likely to invest Rs 3.5-lakh cr in FY15

Source: BusinessStandard
Life Insurance Corporation of India is reportedly looking to invest up to Rs 3.5 lakh crore in FY15 in debt and equities. Of this, it is expected that Rs 40,000-50,000 crore will be put into the equities market.
The government-owned giant had booked profits of Rs 21,000 crore in the stock market during 2013-14.

Sources said a plan of investing Rs 3.2-3.5 lakh crore in 2014-15 will be discussed by the board of directors in a few days. In FY14, it had invested Rs 2.25 lakh crore, including about Rs 40,000 crore in the equity market.
Apart from the regular investment