Unit-linked insurance plans which were offering the guarantee of returns basis highest NAV of the term on maturity have been banned by the Insurance Regulatory and Development Authority (IRDA).

Around 2009-10 insurance companies could see a lot of customers becoming refusing to buy unit-linked insurance plans due to the high risk involved in such products. To make the proposition attractive and assure a certain guaranteed benefit, the insurance companies designed ULIP with a guaranteed...  Read More »

On 4th May 2012, The Insurance Regulatory and Development Authority (IRDA) released an order whereby it has imposed a fine of Rs.28 lakhs on M/s Shriram Life Insurance Company Ltd

IRDA had conducted an onsite inspection of Shriram Life Insurance Company in 2010 which revealed certain violations of the provisions and regulations of the Insurance Act, 1938. There were several charges whereby Shriram Life Insurance Co was found in compliance of the rules barring a few observations for which the...  Read More »

The Ministry of Finance has requested the Insurance Regulatory and Development Authority (IRDA) to relax the branch opening norms in smaller cities thereby increasing the penetration of insurance in smaller towns and rural areas.

The current penetration of insurance in rural areas is very dismal in both life as well as non-life insurance sector. The Ministry of Finance is of the opinion that the one of the ways to boost the penetration of the insurance in these areas is by relaxing the norms...  Read More »

On Wednesday, the Finance Minister Mr. Pranab Mukherjee had a discussion with the board of Insurance and Regulatory Development Authority (IRDA) on various issues like cutthroat competition among the insurers, mis-selling of policies and promotion of online policies.

In the private sector, life insurance companies have started selling policies through the internet. A customer can purchase a pure online term insurance policy by visiting the respective insurer’s website and pay the premium...  Read More »

The Insurance Regulatory and Development Authority (IRDA) issued a circular on Friday, 30th March 2012 asking life insurance companies to declare the Net Asset Value (NAV) for all applications that will be accepted on 31st March 2012.

Since 31st March 2012 is a Saturday, the regulator wanted to convey to the insurers that they can consider it as a working day and declare the NAVs.

Net asset value (NAV) is a term used to describe the value of assets of an entity less the value of its...  Read More »

On Wednesday, 28th March 2012, The Insurance Regulatory and Development Authority (IRDA) released an order to revise the premium rates for motor third party insurance liability cover. The regulator issued this order in follow up to its draft notification dated 15th April 2011.

The actuarial team of IRDA carried out a review of the premium rates for motor third party liability only cover for the financial years 2007-08 till 2010-11 across different categories of motor vehicles. The data...  Read More »

The Bancassurance channel which has been one of the key contributors to the insurance business is now under the scanner of the Insurance Regulatory and Development Authority (IRDA).

The IRDA Chairman J Harinaryan said that the regulator was pleased with the growing partnerships of banks with insurance companies thereby adding to the distribution strength. However, he also stated that it is the role of the regulator to monitor deals where there is an acquisition or increase in the shareholding...  Read More »

IRDA - the insurance regulatory body of India has nominated the members for the daily affairs of the Health Insurance forum. This forum was created last month by the IRDA to act and function like a consultative body for all the members.

Shri M. Rama Prasad, Member (Non-Life), IRDA has been nominated for the post of the Chairman of the Health Insurance Forum.

In the category of General Insurance companies, the nominations are –
1) CMD, New India Assurance Ltd
2) Chairman, General...  Read More »