TagInsurance

Trading on Insurance Policies in the Secondary Market

[The following guest post is contributed by Ammu Charles, who is an Associate at K Ramakumar and Associates] The Insurance Laws (Amendment) Bill, 2015 was passed by Parliament on March 12, 2015, replacing the ordinance promulgated last year. The Bill was first introduced on December 22, 2008 and seeks to amend the provisions in the Insurance Act, 1938, the General Insurance Business...

DIPP Operationalizes Insurance FDI Reforms

The Government had earlier begun the process of enhancing foreign direct investment (FDI) in the insurance sector by increasing the investment cap from 26% to 49%. Given the political stalemate in the Parliament’s legislative process, the Government had initiated the reforms in December 2014 through the promulgation of the Insurance Laws (Amendment) Ordinance, 2014. Subsequently, the Finance...

IRDA Regulations on Insurance IPOs

Earlier this month, the Insurance Regulatory and Development Authority (IRDA) issued norms for IPOs by life insurance companies. Referred to as the IRDA (Issuance of Capital by Life Insurance Companies) Regulations, 2011, they set out certain preconditions for life insurance IPOs and also specify additional disclosure requirements. The following are some key points: 1. The regulations impose...

The Issue of Limitation in Consumer Complaints

A recent note discusses the decision of the Supreme Court in Kandimalla Raghavaiah v. National Insurance, concluding that it is being misinterpreted, and lays down dangerous precedent for insurance claims. While the concern highlighted by the abovementioned note, that “consumers will continue to find themselves at the receiving end with genuine complaints being thrown out for being time–barred”...

Insurance policies and the tax/fee distinction

Recently, the Bombay High Court had occasion to consider an important issue regarding the transferability of life insurance policies, and the restrictions that the LIC has the powers to place on such transferability. The background to the facts of this case is provided by another decision of the Bombay High Court in Insure Policy Plus Services v. LIC, decided in 2007. The petitioners in this case...

Insurance Companies and Income Tax

The Bombay High Court, in an important case decided last month, clarified the position on the taxation of insurance companies. This was the decision in ICICI Prudential v. ACIT (2010 Bombay High Court). The controversy stemmed from the implications of the Insurance Regulatory and Development Authority (Actuarial Report and Abstract) Regulations, 2000 and the Insurance Regulation and Development...

Bits of Interest

1.         Regulation of Credit Rating Agencies Drawing lessons from the role of credit rating agencies (CRAs) in the recent financial crisis, SEBI has imposed additional transparency and disclosure norms for the Indian CRAs. SEBI’s circular issued on May 3, 2010 covers issues such as maintenance of records of the rating process, dealing with conflicts of...

Legal and Economic Fallout of Mumbai Attacks

The key question being posed in legal and financial circles relates to the extent of insurance coverage for loss caused by terror attacks, and also the related liability of various state and private actors involved. In a column in Rediff Money, Kumkum Sen highlights possible issues on liabilities, both civil and criminal. As the columnist notes, the chances of successfully bringing about any...

Bill for Overhauling the Insurance Sector

When debates raged as to the pros and cons of the 123 Agreement on nuclear fuel between India and the U.S., little was it known that its conclusion would benefit the unlikeliest of sectors in the Indian industry. While attention focussed on the fillip it would provide to the Indian energy sector, the political ramifications of the deal, with the departure of the Left, have led to benefits far...

Now, Kidnapping Insurance

Today’s Business Times, Singapore (page requires subscription) carries an interesting story that companies in India are taking out kidnapping insurance for their top employees located in high-growth hubs such as Hyderabad, Bangalore and Delhi suburbs Gurgaon and Noida. As for the nature of the policies taken, the newspaper reports: “The kidnapping-terror policies cover ransom, hiring charges of...

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Top Posts & Pages

Topics

Recent Comments

Archives

web analytics

Social Media