Page 14 - Insurance Times February 2023

(UFBP) complaints registered against highway contractors, from Bajaj Allianz under probe by the income tax
private sector life insurers have Insurance. department for holding foreign life
reduced by about 17 per cent in 2021- insurance policies running into millions
Seeking rapid growth for the product,
22 from previous year and the ratio of of dollars. Most of these individuals
Gadkari said he would approach the
UFBP complaints to new polices sold either did not disclose that they were
finance ministry to make surety bonds
remained at 0.30 per cent,'' IRDAI nominees in foreign life policies or
a prerequisite for infrastructure
said. were found to have purchased life
projects, instead of a bank guarantee.
insurance from an offshore company
In order to ensure that all the
Surety bonds are guarantees of
without the permission of the Reserve
complaints under mis-selling and
payment issued by general insurers
spurious calls are handled as per the Bank of India.
that protect the principal from losses
laid down policy of the insurance Summons were served under section
in case the contractor fails to meet its
company, the regulator had asked all 131 of the Income Tax Act which
obligations under the contract.
the life insurers to draw out a company empowers the tax authorities to
However, they're different from bank
specific policy on handling mis-selling conduct enquiries, two persons familiar
guarantees, which require a certain
complaints and also a company specific with the development told.
percentage of project funds to be
policy on handling spurious calls
locked in as collateral, thus eating into According to a tax official, the
complaints.
the working capital of the contractor. enquiries are based on specific
information, and assesses have been
Gadkari wants surety Wealthy Indians under asked to explain why they have failed
to disclose it in the foreign assets (FA)
bond insurance for infra scanner over foreign Life
schedule of the I-T returns as
projects Insurance Policies mandated under the law.
Gadkari recently launched India's first Many rich Indians, some belonging to
surety bond insurance product for the community of diamantaires, are
Life insurers' premium
growth eases to 10%
2022, a watershed for insurance
The life insurance companies reported
After the opening up of the insurance sector, the year 2022 is probably a
moderation in new business premium
watershed that will be remembered as a catalyst for growth in view of a
(NBP) growth in December. From a 30
slew of path-breaking regulatory reforms and sustained growth trends.
per cent uptick in November, NBP
After a long gap, the Insurance Regulatory Authority of India (IRDAI) has growth last month slowed down to 10
introduced a slew of reforms, addressing the key issues in capital percent as Life Insurance Corporation's
investments, distribution tie-ups and agent’s commission, besides the premium growth decelerated from a
measures to promote innovation and corporate governance. peak.
According to Sumit Rai, MD &CEO, Edelweiss Tokio Life Insurance, 2022 was, According to data released by Life
perhaps, the most vital one for the insurance industry. “Not only did it regain Insurance Council, the NBP of life
growth momentum, it also benefitted from a fundamental reorientation insurance companies came in at Rs
brought about by the pandemic,’’ he says. 26,838.29 crore, up 10 per cent year-
The industry has embraced digital solutions in a big way in recent years to on-year (YoY). While private sector life
bring operational efficiency and transformation. “Strengthening its risk insurance companies reported premia
management practices, innovating products and services, and bolstering to the tune of Rs 14,979.79 crore, up
customer experience were among the key priorities for the industry in the 15 per cent YoY, LIC's premium rose
year gone by,’’ he adds. 3.71 per cent to Rs 11,858.50 crore.
Riding high on its increasing relevance, the industry also prioritised digital Private insurers posted healthy growth
enablement to improve its distribution network, and found newer capabilities in premia, aided by a 16 per cent
to strengthen its advisory models. IRDAI Chairman Debashis Panda, told increase in individual single and non-
recently: “We are focussing on strengthening the three pillars of insurance single premia. Even group single
ecosystem — policyholders, insurers and distributors — and to improve premia saw strong growth of around
insurance penetration and promoting ease of doing business.” 12 per cent.

The Insurance Times January 2023 13