GENERAL November 2019
Cholamandalam fined Rs. 1 crore for violations
Cholamandalam MS General Insurance Co. (GIC) has recently been fined Rs. 1 crore for several violations related to payment of commissions to brokers on sale of health insurance. \. The insurance regulator IRDA has said that the violations had occurred in 2015-16 in contraventions to health insurance regulations, which state that commissions are not payable to intermediaries for policies that get ported.,
Insurance Australia Group sells stake in SBI general insurance
Insurance Australia Group, the joint venture partner in SBI General Insurance, has recently said that they have entered into definitive agreements with an aim of selling its entire stake of 28% in the general insurance company with a couple of private equity investors.
Insurance Australia Group will sell 16.01% of its 26% stake to Napean Opportunities LLP, an affiliate of Premji invest, a private equity firm. The rest of 9.99% will be acquired by WP Honey Wheat Investment Ltd of the Warburg Pincus Group.
SBI General Insurance announces 51% GWP growth in H1FY20:
SBI General Insurance has recorded a profit before tax of 278 crore for the first half of financial year 2019 – 20 (H1FY20) as compared to 256 crore a year ago. The gross written premium (GWP) has experienced a significant growth of 51% from Rs. 2,087 crores in H1FY19 to Rs. 3,118 crores in H1FY20.
The solvency ratio for FY 20 is 2.12 in the financial year 2019 – 20, the company’s investment book improved to Rs. 6,605 crore in the financial year 2019-20, compared with Rs. 5,790 crore in corresponding period the previous financial year the company said in a statement. The SBI General reported an underwriting profit of Rs. 37 crore in H1 19-20.
IRDAI & NHA proposes hospital registry, empanelment process, grading
IRDA’s joint working group and the National Health Authority (NHA) has recently made proposal of a unique common hospital registry, empanelment process, grading of hospitals an package cost harmonization with an aim of promoting the standardization and effective utilization of health care infrastructure under the insurance programme.
Health care schemes and private insurance at present have individual hospital empanelment process which replicates various activities and contributes to inefficiency and duplication of processes.
IRDAI levied Rs. 15 lakh penalty on Shriram Transport Finance:
IRDAI has levied a fine of Rs. 15 lakh on Shriram Transport Finance Company for selling insurance policies in violation of norms. The IRDAI stated Shriram Transport Finance as a corporate agent (CA)engaged persons other than specified persons (SPs) to procure business