Page 43 - Life Insurance Today June 2015 SAMPLE

support to cancer affected children mind the other changes. At present, Capital indicated that their overseas
with the intention of making a corporate agents are allowed to sell partners intended to increase their
difference to their lives" policies of only one life insurance and stakes.
one non-life insurance company.
SBI Life approaches "Even if any company goes to the
tribunal to refund Rs. 275 Following the passage of the exposure Foreign Investment Promotion Board
cr draft, the IRDA had asked the (FIPB) with a proposal to increase its
insurance companies for their views stake above 26 per cent, the 'Indian
SBI Life has preferred an appeal to SAT by April 10. Though many insurers have management control' clause would
(Securities Appellate Tribunal) against urged for more time to respond IRDAI have to be part of the agreement,
the sectoral regulator's orders to kept silence on any extension of which will have to be framed
refund around Rs.275.29 crore to its deadline which expired last week. accordingly," says Amitabh Chaudhry,
policy holders. Although as many as half a dozen life MD &CEO, HDFC Life. In fact, industry
insurers which are not promoted by players say that almost all shareholder
SBI Life has informed of their filing banks have already expressed their contracts will have to be redrafted.
appeal with SAT vide their letter dated happiness over the proposed norms.
April 6, 2015, D.D. Singh, member According to the FDI definitions
(Distribution) at Insurance Regulatory "This will definitely augur well for applicable in India, 'control' includes
and Development Authority of India better penetration of insurance as the the right to appoint a majority of the
(IRDAI). SBI Life is a 74:26 joint entire reach of banks can be utilised directors or to control the
venture between State Bank of India in an optimum manner. If one channel management or policy decisions
(SBI) and BNP Paribas Cardif of France. is getting closed for bank-led insurers, including by virtue of their
the other doors will be opening," shareholding or management rights or
In February 2015, IRDAI chairman T.S. Manoj Kumar Jain, CEO, Shriram Life shareholders' agreements or voting
Vijayan directed SBI Life to implement Insurance Company told. To this the agreements.
its March 2014 order to refund Bank-led insurers, however, have a
Rs.275.29 crore of excess commission different story. Karnataka bank inks
to the policy holders.The private life memorandum with New
was asked to comply with its order "It will surely lead to loss of business India
within 45 days from the date of because we are supposed to bring
Vijayan's letter which expired this down business from a single channel to Karnataka Bank Ltd has entered into
month. 50 per cent progressively over five a memorandum of understanding with
years. There is little rationale in New India Assurance Co Ltd to
New corporate agency destroying the existing base and trying introduce Pradhan Mantri Suraksha
norms follows divide rule to create new ones," said a top Bima Yojna to its customers. Under the
executive of a bank-promoted scheme, the accident cover of Rs. 2
The new corporate agency norms insurance company. lakh is available for a nominal premium
notified by the Insurance Regulatory of Rs. 12 to all the savings account
and Development Authority of India FDI impacts the Insurance holders aged between 18 and 70
(IRDAI) have virtually divided the sector years.
insurance sector.
The passage of the Insurance P Jayarama Bhat, MD and CEO, said
The guidelines read that each of the Ammedment Act 2015 has brought that the bank is happy to provide the
corporate agents can sell policies of a sea changes in the sector, many much sought after financial security to
maximum of three life insurers and insurance companies such as Bharti all its eligible customers at an
three general insurers, keeping in Enterprises, Max India and Reliance affordable cost.

Being a father is the most important thing, if you ask me. It changed me as a person and gave me an all new life.

Life Insurance Today June 2015 39

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