Mediclaim, motor insurance portability shortly

Insurance regulator IRDA on Tuesday said that mediclaim policy holders, who are not satisfied with the services, will soon be able to switch service providers at the same premium. The same would also be true for motor insurance policy holders. "It is high time that the insurance industry also moves to offer portability so that the mediclaim and motor insurance policy holders can switch their service provider...We have initiated a debate on the idea of portability and we would be arriving at a conclusion very soon," IRDA Chairman J Hari Narayan said at CII insurance summit.

To a question on whether this portability concept would apply to ULIPs also, he said: "Yes and no. Yes in the sense that there has to be a balance in the churn of ULIP's policy and their portfolio has to be evenly managed."
Narayan, however, added that portability cannot be randomly applied and the portfolio of an insurance company has to be balanced.
To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said: "We have certain issues which we are trying to resolve through discussions."
The IRDA chief added that work is progressing on formulating merger and acquisition norms for the sector.
"M&A norms would be announced soon. A committee is studying the issue," Narayan said.

Bajaj Allianz Health Card launched

Bajaj Allianz launched a health card - JiyoFit, in association with Yes Bank, this product aims to encourage customers to lead a healthy lifestyle. This health card is first of its kind to be launched in India.

Bajaj Allianz General Insurance Chief Executive Hemant Kaul says, "Health insurance as a concept is associated with illness and hospitalization. But JiyoFit is an endeavor to shift from managing customers' illness to promoting a healthy and fit lifestyle".

The health card is not attached with a new Mediclaim policy but is an additional facility offered to a Bajaj Allianz health policyholder.

Currently, this initiative will be available in 15 cities which will be expanded further as the demand for the card grows.

Oriental Insurance to turn out two new health insurance products

Oriental Insurance Company Limited, one of India's premier insurance companies, is aiming to roll out two new health insurance products by the end of the current financial year.
The PSU insurer is also looking to expand its international operations through opening of a branch in one of the countries of the Gulf region.
"We would be coming out with two new health insurance products before the end of the current financial year. Our objective is to extend the company's health insurance products to the economically disadvantaged people who cannot afford hospitalization costs. As far as motor and fire insurance is concerned, we would not launch new products and we will only be coming out with add-ons of existing products”, R K Kaul, chairman and managing director of Oriental Insurance Company Limited told reporters.
Talking on plans for international expansion, Kaul said, “We are looking to set up a branch in one of the countries of the Gulf region and are awaiting regulatory approval for the same.”
He declined to name the country and the timeline of commencement of operations of the branch. Besides India, Oriental Insurance currently has operations in three countries- Nepal, Kuwait and Singapore.
Oriental Insurance has targeted a premium income of Rs 5470 crore for 2010-11. If achieved, this would be growth of 16.38 per cent over Rs 4700 crore which the company had achieved in 2009-10.
The insurance firm had clocked a growth of 19(%) per cent in the previous fiscal.The company plans to recruit 14,000 direct agents across the country in this financial year.