IRDAI REITERATES STAND TO REFUND SBI LIFE POLICYHOLDERS

The Insurance Regulatory and Development Authority of India (IRDAI) has ordered SBI Life Insurance to return to its policyholders the surplus money it paid banks as commissions for selling life insurance to home buyers.

In 2012, the IRDAI ruled that SBI Life had violated the regulations regarding commission payments on single-premium policies. According to the regulator, SBI Life had overpaid master policyholders (banks and housing finance companies) in the period covering November 2007 and August 2010.

Single-premium plans have a 2% commission rate, but the company was found to have paid 20% commissions, totaling INR840 million (US$12.53 million).  Over 90% of the money was found to have been paid to SBI and its associated banks, while the remainder was given to other home finance firms.
According to the life insurer, the excess commissions paid to the banks were reimbursements of administrative expenses. The IRDAI countered that the policyís price already included administrative costs and, as such, no additional payments were needed.

Policyholders may be in for a longer wait, though, as amended insurance laws in 2015 provide for the establishment of the Securities Appellate Tribunal (SAT) as a venue to appeal IRDAI orders. Since the IRDAI had issued a fresh order, SBI Life can lodge an appeal at the SAT.

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FEATURES OF SBI LIFE INSURANCE SMART BACHAT

SBI Life - Smart Bachat is an LPPT* Endowment Plan designed to keep the obligation of paying the premiums over a long term at bay. It helps you to shoulder responsibility of your family and loved ones in case of any exigency. This product comes with two options i.e. Endowment option and Endowment option with in-built Accidental Death and Total Permanent Disability (AD&TPD) Benefit. It also provides you with additional flexibility to choose your premium paying term as per your convenience. With this plan you can safeguard your familyís future along with meeting your investment needs wisely.

Key Features
 
ï Flexibility to choose from two options depending on your insurance needs
  ïOption A: Endowment Option

  ïOption B: Endowment Option with in-built AD&TPD Benefit

ï Convenience of choosing
  ïPremium Payment Term of 5, 7, 10 and 15 years

  ïPolicy Term from 10 to 25 years depending on your financial goals

ï Premium waiver in case of Accidental Total & Permanent Disability (only under Option B)

ï Life cover throughout the policy term i.e. even after the end of Premium Payment Term

ï Rebate on Large Sum Assured

ï Tax benefits** as per prevailing norms under the Income Tax Act, 1961

** Tax benefits, are as per the provisions of the Income Tax laws & are subject to change from time to time. Please consult your tax advisor for further details.

SBI Life - Smart Bachat at a Glance:

Options Option A: Endowment Option

Option B: Endowment Option with in-built Accidental Death and Total Permanent Disability (AD&TPD) Benefit
Age^ at Entry Minimum:
Option A - 8 years; Option B - 18 years Maximum: 50 years
Maximum Age^ at Maturity 65 years
Sum Assured Minimum: Rs.100,000 (in multiples of Rs. 1,000) Maximum: No Limit
Premium Payment Term and Corresponding Policy Term Premium Paying Term (Years) Policy Term (Years)
5 10 - 25
7 10 - 25
10 15 - 25
15 20 - 25
Premium Frequency Yearly / Half-yearly / Quarterly / Monthly#
Premium  Frequency Loading
Half-Yearly: 51.00% of annual premium
Quarterly: 26.00% of annual premium
Monthly: 8.50 % of annual premium

Premium

(applicable for both options) Minimum Maximum
Yearly: Rs. 5,100 No Limit
Half yearly: Rs. 2,600
Quarterly: Rs. 1,350
Monthly: Rs. 450
^All the references to age are age as on last birthday.

#For Monthly mode, 3 Months premium to be paid in advance and renewal premium payment through Electronic Clearing System (ECS) or Standing Instructions (where payment is made either by direct debit of bank account or credit card)

For Monthly Salary Saving Scheme (SSS), 2 month premium to be paid in advance and renewal premium payment is allowed only through Salary Deduction


How does it work?

The plan offers two options to choose from, depending on your requirement. Option once chosen cannot be changed.

Option A: Endowment Option

This option offers the benefits of wealth creation through Simple Reversionary bonuses and life cover throughout the policy term.

Option B: Endowment Option with in-built Accidental Death and Total Permanent Disability (AD&TPD) Benefit

In addition to benefits as explained under Option A, this option provides you with benefit in case of Accidental Death or Accidental Total and Permanent Disability of the life assured during the policy term.

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SAMSUNG VICE PRESIDENT ARRESTED FOR OFFERING BRIBES

               Le Jye yang Lee the vice president and the heir was appeared with andcuffed and bound with ropes,for questioning on saturday over his alleged involvement in the corruption case presently enguifing South Korean President park geun - Hye.The conglomerate's de facto head started straight ahead as he was greeted by a horde of journalists and camera flashes upon his arrival at the office of the special prosecuters investigating the case.

    in January, Samsung heir Jay Y. Lee was accused of bribing South Korean President Park Guen-hye;now he has been arrested.Boomberg reports Lee has been taken into custody on allegations of bribery, perjury, and embezzlement.

    Lee is being accused of directing Samsung subsidiaries to pay out over $40million to Parkís confidante and related foundations. Ultimately, Lee wanted to secure the merger of two affiliates, which would have afforded him greater control of Samsung.

    The charges are part of a larger corruption investigation, which alleges South Koreaís President Park extorted nearly $70 million from big business. She has since been impeached as part of the scandal.

    This is the second time prosecutors have called for Leeís arrest; the first attempt was rejected by a court due to a lack of evidence, Bloomberg said. Lee is expected to remain at a detention center in Seoul for the immediate future.

     

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MOTIVATING BORED OFFICE WORKERS

 
 A new study shows how you can keep bored  office workersto engaged and productive.

A recent article published in Chief Learning Officer pointed to a new report by Udemy ñ a global marketplace for learning and teaching online ñ which revealed that 43% of office workers are bored.

The study pointed out that this is especially true for women, millennials and entry to midlevel workers.Donít worry ñ itís not all gloom and doom.

ìThere are ways to engage employees and get rid of that boredom. For instance, for millennials, talent leaders can start by redefining job descriptions,î the article stated.

ìEmphasize the skills required for the job as well as skills that will allow them to grow in their career. Then theyíll have a better idea what kind of learning and development they may need.î

Debra Steele, director of marketing and communications at CAEL, the Council for Adult and Experiential Learning, told Chief Learning Officer that job descriptions ìare quite broad and inaccurate, and that doesnít mean much to millennialsî.

The study also found that ìmillennials are nearly two times as likely to be bored at work than baby boomers.î

That said, Steele pointed out that older employees ñ especially those who have held the same position at a company for years ñ have the mindset of, ìI donít have to learn, but I would still like toî.

Chief Learning Officer suggests that one way learning and talent leaders can engage older employees is to introduce them to new areas within the company, perhaps in business units they never considered.

ìAnother way to curtail boredom is to make employees feel valued. More companies are using mentoring programs that connect older employees with new or prospective ones to develop needed skills, ensure knowledge transfer and promote engagement,î the article states.

ìThis benefits the new employees because they get access to more seasoned, experienced talent, and they may get some insight into what a more senior position is like on a day-to-day basis.î

It added that by teaching younger employees what they need to know to successfully handle their responsibilities and duties, older employees may feel a sense of pride, and realize the work they do is truly important to the company as a whole.

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10% GROTH IN SINGAPORE'S LIFE INSURANCE INDUSTRY IN 2016

Health insurance remains on top of the list for Singaporeans, with over 50,000 people purchasing new health insurance policies in 2016, according to data from an industry association.

Life Insurance Association (LIA) of Singapore, which held its quarterly meeting on Tuesday, revealed that as of December 31, 2016, 2.89 million people, or roughly half of the countryís population, were covered by private health insurance and riders, with total premiums amounting to SGD1.42 billion.

For the entirety of 2016, more than 50,000 Singapore residents bought health insurance, with premiums totalling SGD241 million. Around SGD208 million, or 86% of new premiums, came from integrated shield plans (IPs) and IP riders.
The life insurance industry of Singapore grew by 10% in terms of total weighted new business premiums for 2016, fuelled by a strong surge of sales in the fourth quarter.

The strong performance is demonstrated by the total sum assured for new business, which rose by 15% to SGD117 billion, according to the Life Insurance Association (LIA) of Singapore, which announced its quarterly results on Tuesday.
For the fourth quarter of 2016, total weighted new business premiums reached SGD955.3 million, up 15% year-on-year. This was boosted by annual premium sales growing 20% to SGD661.1 million while weighted single premium products posted a 4% increase, reaching SGD294.2 million.

Banks remained as the top distribution channel for life insurance products, as SGD1.25 billion or 38% of total weighted new business premiums last year passed through banks. Tied agents were in second place at 37%, while financial advisers brought in 21%.

Direct insurance distribution such as ElderShield and online sales, where policies are sold without intermediaries, contributed only 4% of new business.

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COMPENSATION FOR LOSS OF STATES REVENUES - GST COUNCIL( INDIA)

 
    The GST Council has approved a law to compensate states for any loss of revenue from the implementation of the new national sales tax. The  GST Council will meet again on March 4 and 5 to approve the legally vetted draft of the supporting legislations for Central GST (C-GST) and Integrated GST (I- GST), days before the start of the second leg of the Budget Session where the Centre is hoping to get them approved.

    It will also approve the State GST (S-GST) law, Finance Minister Arun Jaitley said after the day-long meeting.After laws are approved, the Council will get down to fixing rates of taxes for different goods and services by fitting them into the four approved slabs of 5, 12, 18 and 28 per cent, he said.
    GST, which will replace a plethora of central and state taxes, is a consumption based tax levied on sale, manufacture and consumption on goods and services at a national level.Under it, C-GST will be levied by the Centre, SGST by states and I-GST on inter-state supply of goods and services.
    Different indirect taxes of central excise duty, central sales tax CST and service tax are to be merged with C-GST while S-GST will subsume state sales tax, VAT, luxury tax and entertainment tax.There was expectation that the GST Council will approve the C-GST, S-GST and I-GST laws to enable the new indirect tax regime to roll out from July 1 but while there was a broad agreement, legal language of some clauses held up the approval, he said.
    Officials said while an array of 53 clauses have been approved, only seven items.Jaitley said the GST Council approved the Compensation Law that will legally provide for the Centre making up for any loss of revenue to states in first five years of rollout of Goods and Service Tax (GST) regime.
    This law will go to Parliament for approval in the second half of the Budget session beginning March 9, Jaitley said, hoping the other supporting legislations of C-GST and I-GST too can be taken up in the month-long session.
S-GST will have to be approved by each of the state legislative assemblies.
   The GST Council, headed by Jaitley and comprising of representatives of all states, held its first of the 10 meetings so far outside the national capital.He said the critical anti-profiteering clause in the draft law to ensure that the benefit of lower taxes gets shared with consumers was not discussed in the meeting.Officials said only minor legal vetting of the draft laws is left which after getting the language legally right will be circulated to states by March 1.Also, a separate UT-GST law, on lines of S-GST, needs to be enacted for Union Territories.
   Kerala Finance Minister Thomas Isaac said most of the time of the Council was spent over administration of powers over assessees between Centre and the state as the central bureaucracy was feeling left out and wanted a greater share.Andhra Pradesh Finance Minister has also objected the proposed central government's command up to 12 nautical miles of seea water.Yanamala Ramakrishnudu has argued that "Giving permission to collect taxes is not enough .States have every right on sea water including land up to 12 nautical miles. High court has already passed a ruling to that effect and the case pending in Supreme court". The Central Finance Minister Arun Jaitly has told that this subject will refer to Law Committee.

 

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CHINA'S INSURANCE COMPANY PING AN RISES US$500m FOR MOBILE APP

Ping An Insuranceís mobile healthcare application developer has raised US$500 for an online platform that connects users and doctors.

The insurerís subsidiary, Ping An Health Cloud, has completed its latest funding round for mobile healthcare app Ping An Haoyishen, increasing the companyís value to US$3 billion, DealStreet Asia reported.

App creator Wang Tao said the proceeds will be used to enhance online consulting services such as online appointment booking, chronic illness management, medicine delivery and recruitment of doctors, according to the report.

The funding will also be used to help the government set up healthcare clouds to maintain files on local citizens and make an incubation fund to invest in healthcare-related firms.

Founded in August 2014, Ping An Haoyisheng is an online platform that enables users to consult with doctors through text, photos and video.

The app also operates an online store for healthcare products and offers pharmaceutical online-to-offline service.

According to DealStreet Asia, the app claims to have 77 million registered users and gives 250,000 peak daily consultations.

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