ISSUE NO.

2023/33

INSUNEWS - WEEKLY E-NEWSLETTER

12TH – 18TH AUGUST 2023

QUOTE OF THE WEEK

“Change the changeable, accept the

Insurance Term for the Week unchangeable, and remove yourself from
the unacceptable.”
Guaranteed Renewable DENIS WAITLEY
This insurance feature is often included in
health, life, and disability insurance policies.
Coverage and renewal of coverage are
INSIDE THE ISSUE
ensured if this feature is in the contract. All
the policyholder has to do is to pay his or her
premiums promptly for risks to be covered.
CATEGORY PAGE NO.
The insurance company can raise the Insurance Industry 1
premium of the policy but not on an
Insurance Regulation 8
individual policy but on one whole class of
policy. Most often, when a company has to Life Insurance 10
raise the premium, it has to present its
General Insurance 14
argument to the regulatory board of a state
and only when granted is it legally able to do Health Insurance 17
so.
Survey 24
Guaranteed renewable refers to an insurance Insurance cases 26
policy feature that ensures that the
policyholder continues to receive coverage as
Pension 28
long as the policy’s premiums are paid. In a Global News 30
guaranteed renewable policy, there is, at
times, an option where the policyholder is
COI Training Program 31
given a provision to renew coverage on the
policy’s anniversary date.

 The three main types of insurance coverage

policies are optionally renewable, guaranteed
renewable, and non-cancellable.
 INSURANCE INDUSTRY

Insurance companies report double-digit profit growth in April-June quarter, but VNB
margin dips – Moneycontrol – 17th August 2023
A close look at the April-June quarter
earnings of insurance companies shows
that most reported double-digit growth in
net profit. However, the present value of
future profits associated with the Value of
New Business (VNB) dipped for the
majority of companies during the quarter.
Moneycontrol analysed earnings of six
insurance companies.
On average, the insurance companies,
which include both life and non-life
companies, reported 22 percent growth in
year-on-year (YoY) net profit for the
quarter, the analysis showed. This does not
include state-owned Life Insurance
Corporation (LIC) of India and New India
Assurance, which reported a surge of 1,299
percent and 120 percent in net profit,
respectively, due to higher income on
investments and a rise in total income,
respectively.
SBI Life recorded a net profit of Rs 381
crore, an increase of 46 percent, while
private sector insurer HDFC Life recorded
a 15 percent rise in profit, at Rs 415 crore.
Similarly, ICICI Prudential’s net profit rose
15 percent to Rs 207 crore, while ICICI
Lombard’s net profit went up by 12
percent to Rs 390 crore.
“Post-Covid, the insurance landscape
witnessed significant shifts as insurance
providers displayed resilience by
absorbing some costs without transferring
the burden to policyholders. However, this
adaptive phase was opposed with a period
of sensitivity, where people chased
insurance products,” Kiran Boosam, Vice
President and Head of Global Insurance
Strategy and Portfolio, Capgemini, told
Moneycontrol.
Why the dip in VNB?
Value of new business, a crucial metric,
measures the profit margin of new business written by a life insurance company. VNB dipped for most
insurers in the April-June FY24 quarter. Experts attributed this to uncertainty in market conditions amid
rising competition.

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Alok Rungta, Deputy Chief Executive Officer (CEO) and Chief Financial Officer (CFO), Future Generali
India Life Insurance, said that a decline in VNB is mainly due to market volatility, rising competition, and
regulatory changes in the sector. “Due to heightened competition, market volatility, and potential
regulatory changes, as well as shifts in customer preferences leading to a change in product mix, the VNB
of insurers fell in Q1,” Rungta added.
LIC’s VNB dropped 7 percent to Rs 1,302 crore from Rs 1,397 crore in April-June FY23. The state-owned
insurer’s VNB margin stood at 13.6 percent, almost mirroring the 13.7 percent margin last year. SBI Life
saw a marginal 1 percent reduction in VNB at Rs 870 crore whereas its margin narrowed from 30.4
percent last year to 28.8 percent this year. ICICI Prudential’s VNB dropped 7 percent to Rs 438 crore
while its VNB margin dipped by 1 percent YoY to 30 percent.
HDFC Life Insurance was the only life insurer to
report a VNB rise, reporting an 18 percent increase
to Rs 620 crore. The company’s VNB margin
improved to 26.2 percent from 25.1 percent a year
earlier.
Mixed APE
On the other hand, there were mixed signals on
growth in the total annual premium equivalent
(APE), which is a metric used to measure new
business sales growth. LIC and ICICI Prudential
showed a drop in total APE for the April-June FY24
quarter. LIC reported a total APE of Rs 9,532 crore, a
7.19 percent decline from Rs 10,270 crore last year.
ICICI Prudential’s total APE stood at Rs 1,461 crore,
dropping 4 percent from Rs 1,520 crore.
In the motor segment, ICICI Lombard’s premium
portfolio grew to Rs 1,875 crore from Rs 1,782 crore
last year. New India Assurance’s motor segment grew to Rs 2,341 crore from Rs 1,918 crore. Experts
believe that the Indian insurance sector is poised for growth with favourable economic conditions.
“With a younger demographic, the challenge lies in enhancing awareness and appreciation for insurance.
Insurers must simplify products, embrace digital means to attract a younger population, and leverage the
increasing data from digital programmes,” said Boosam. Rungta said that the outlook for the sector is
mixed, with opportunities as well as challenges.
“Prolonged low interest rates may impact investment income. And intense competition, especially
through online channels, could lead to pricing pressure. But digital transformation, personalisation, and
innovative product offerings present growth potential,” he added.
(The writer is Jinit Parmar.)
TOP
Insurers will place a vital role in India’s green-energy transition – Live Mint – 16th August
2023
India has emerged as a compelling market for the rapid growth and adoption of renewable energy.
According to the Asian Development Bank, the country has increased its renewable-energy capacity by
250% over the past seven years and now ranks fourth in the world on this.
The development and deployment of green technologies such as solar and wind, upcoming investments
in hydrogen energy, and encouraging the adoption of electric vehicles (EVs) have all played an important
role in this transition.

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India's stake in green-energy solutions
Over the past few years, the urgency of addressing climate change has given the world the impetus it
needs to transition to low- or zero-carbon energy sources. In its latest report, the Intergovernmental
Panel on Climate Change (IPCC) emphasised the need to significantly reduce fossil fuel consumption to
keep global warming below 1.5°C (it’s currently at 1.1°C).
India, which has significant exposure to tropical cyclones and extreme weather, experienced such
conditions on 314 out 365 days in 2022, as highlighted by the Delhi-based non-profit Center for Science
and Environment (CSE) and Down to Earth (DTE) Data Centre.
While India currently ranks third globally on electricity
consumption, it is making commendable progress in its
energy transition efforts and the government has set an
ambitious target of achieving carbon neutrality by 2070.
Notably, the Ministry of New and Renewable Energy
reported approximately 62GW in installed solar-power
capacity as of November 2022.
Challenges to energy transition
The benefits of green technology and renewable energy
are apparent and tangible, but their implementation faces
many risks and challenges. The construction and
installation of such projects requires considerations of contractor/engineer experience, supply chain
issues, accidents, and force majeure events. Once operational, new challenges arise. As the technology is
new, there is no historical data on how performance could actually develop over time.
Additionally, the rapid development of hydrogen-based technologies and the potential transition to them
from wind and solar needs to be considered in the long-term upkeep of such infrastructure.
Environmental factors further amplify these risks as solar panels and wind turbines are exposed to the
elements and will inevitably incur wear and tear or damage from adverse weather conditions. Given that
the green energy sector is relatively nascent, it is also imperative to build technical knowledge in this
field as historical data either does not exist or stems from a technical standard that has become
antiquated.
Uncertainty regarding the frequency and severity of extreme weather events pose additional challenges
to risk evaluation. Meanwhile, the ever-growing risk of cyber threats continues to loom large, for both
green-technology and traditional-energy infrastructure, further necessitating proper risk management
and financial protection.
The role of insurance
Green technology and renewable energy projects are capital intensive and typically financed by major
banks and institutional investors, who require the assets to be properly insured. This gives insurance a
pivotal role in supporting the energy transition. Insurers supported by reinsurers could effectively
undertake risk assessments and underwrite renewable energy projects, providing coverage and financial
protection to investors, lenders and project developers. In doing so, they could encourage investment in
green energy infrastructure and facilitate the growth of renewable energy capacity.
As long-term renewable energy output remains a risk, reinsurers through insurers could provide
performance guarantees, taking on risks such as projects producing less power than anticipated. This
approach would stabilise returns for investors, making these projects more attractive for long-term
financing. The same is true of batteries used in electric vehicles. Their long-term performance is crucial
for the resale value of these vehicles. Many customers still hesitate to buy an electric vehicle because they
are not sure if they will be able to resell it at a reasonable price down the road as there is simply no
historical data on how engine performance will be affected. Performance guarantees provided by
the insurance sector could eliminate this risk and boost the sales of environmentally friendly cars.

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Reinsurers have access to vast amounts of data, and by leveraging their expertise in risk modelling and
data analytics, they could accurately assess and quantify the risks and uncertainties associated with
renewable energy projects. This knowledge also allows them to offer valuable insights to project
developers and investors, enabling informed decision-making and more precise risk assessment.
Moving towards green energy
The demand for green-technology insurance in India is expected to soar, given the country’s pursuit of
renewable energy solutions and ambitious carbon-neutrality targets. As the country embraces green
technologies, the insurance sector will serve as a crucial enabler. By assessing risks, providing
performance guarantees and leveraging data analytics, (re)insurers could facilitate the growth of
renewable energy projects and infrastructure.
Given the complexity of insuring green technology, well-capitalised reinsurers, in partnership with
leading insurers, have a critical role to play in mitigating these risks and providing support and
protection to these assets and projects.
(The writer is Hitesh Kotak.)
TOP
Future of Finsuretech: How financing can help reduce the protection gap and increase
insurance penetration - The Economic Times – 15th August 2023
Insurance is recognized as one of the oldest industries with conventional practices in both – life and non-
life insurance. After the outbreak of the pandemic, India’s insurance penetration has grown steadily from
2.7 percent in 2000 to 4.2 percent in 2020 to 3.2 percent in 2021. Though the sector has registered
double growth, it is still underpenetrated and far behind the global average of 7 percent of the GDP.
The insurance penetration essentially depends on the level of disposable income in the country and the
sector is less than 5 percent of the GDP. However, the insurance density in India has witnessed a steep
surge from US$11.5 in 2001 to a whopping US$91 in 2021. Against the backdrop of filling protection gaps
in the sector, the government and IRDAI are making attempts to flag the pitfalls and drive higher
penetration. Out of which, the decision of IRDA’s call to study the premium financing proposal is gaining a
huge momentum of popularity.
Premium financing is a strategy that makes insurance more accessible and affordable to a broader range
of individuals and businesses. Ultimately, it can help reduce the protection gap and increase insurance
penetration in the country by offering a multitude of solutions.
Enhanced affordability
Paying for insurance premiums upfront usually seems cheaper for many policyholders. However, it
comes only with short-term benefits. Considering the long-term perspective, premium financing has
emerged to be more cost-effective for the market. It allows policyholders to spread out the cost of
insurance premiums over time, typically through installment payments. As a result, customers can afford
to buy a more expensive policy with appropriate insurance cover hence reducing the chances of a
protection gap.
Increased coverage
By making insurance more affordable, premium financing enables individuals and businesses to obtain
higher coverage limits or broader insurance policies that they would not be able to afford otherwise. This
assists in bridging the protection gap by providing better financial protection against various risks and
uncertainties and promoting financial inclusivity.
Improved cash flow
Paying insurance premiums can put a heavy strain on the customer’s finances. Especially, if a customer is
just starting out, they can face difficulties in managing their cash flow. However, with premium financing,
it becomes more manageable and allows them to plan their budget in a better way, especially if the
customer is an enterprise or a business organization.

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Business growth
Premium financing can primarily benefit in maximizing returns for businesses or customers. It allows the
customers to acquire insurance but at the same time minimize the out-of-pocket cost. This allows the
customer to invest the money that was used to pay premiums in other channels that offer higher ROI.
Premium financing can also accelerate the growth of businesses that engage in premium financing
because it allows businesses to attain a large amount of insurance without having to significantly impact
their cash flow and can attain the insurance coverage that they need while keeping their assets intact.
Flexibility and customization
Unlike traditional practices, premium financing benefits customers with flexibility in terms of payment as
well as convenience in purchasing multiple policies. Under a single premium finance agreement,
customers can purchase multiple insurance policies, under a single payment plan and single debit. This
proves to be extremely beneficial for small businesses as they encounter seasonal cash flow fluctuations.
Revenue Generation by mitigating risks
Premium financing can not only be beneficial for customers but also offers insurance companies a way to
generate additional revenue streams. By partnering with premium finance companies, insurance
companies transfer the credit risk associated with premium payment to the finance provider which helps
companies mitigate the risk of non-payments. Additionally, while policyholders repay their premium
over time, the insurance company receives the full premium amount upfront from the premium finance
company. Thus, premium financing can mitigate risk of non-payment and additionally improve cash flow
and generate interest income on the financed premiums.
Bottomline
The premium financing market is expected to continue to grow and capture a sizeable market share in
the coming years. Driven by increasing demand for insurance coverage, the popularity of premium
financing as a cash flow management strategy is gaining popularity. It’s proving to be an effective
strategy for individuals looking to avail the benefits of insurance coverage. Thus, premium financing is
surely a budding industry that is likely to generate competition amongst other financing counterparts
and ensure the coming up of even more flexible options for policyholders.
(The writer is Hanut Mehta.)
TOP
Insurers concerned about data handling in new digital regime – The Economic Times – 14th
August 2023
The new data protection bill has now become law, and
the stringent rules on the use of personal data and fines
proposed for non-compliance have got others besides
technology and social media giants worried. Among
those rattled by the provisions of the new law is the
insurance industry.
What’s the problem? The Rs 250 crore fine stipulated in
the Digital Personal Data Protection Bill, 2023 for
breach of privacy has made insurers nervous. They
have nearly 30 lakh agents ranging from matriculates
to high-end professionals who handle personal data of
people. With no case law yet, insurers fear that numerous frivolous cases could crop up.
Controlling distributors: Insurers will have to put controls on end-use of personal data and ensure that
specific consent is taken for the purpose for which data is processed. Insurers say the biggest risk is
agents and other distributors carrying customer data, which is freely available in the market.

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Companies fear that in case there is a breach, customers will file complaints before the Data Protection
Board against them, even though the breach may come from agents they employ, and the insurance firm
will have to cough up the penalty, an industry executive told ET.
New rules: The new law applies to digital or physical data and covers personal data, except what is
publicly available or under legal obligation. It deals with how companies use personal information and
stresses on getting permission from individuals before using such data.
The law comes with strict rules, and in case of any violation there could be heavy fines, even up to Rs 250
crore. However, if someone disagrees with a decision, they can file an appeal before the Telecom Disputes
Settlement & Appellate Tribunal (TDSAT).
Medtech concerns: Meanwhile, ET reported that medtech companies say they are facing obstacles in
getting their technology covered under a few companies’ plans. The insurance regulatory authority had
issued a directive in 2019 that modern medical treatment be covered under insurance policies.
“The directive says the treatments will be covered whenever medically indicated, which can be
interpreted as ‘only covered if necessary’, and not by the patients’ choice,” medtech firms said. Insurance
companies use this to reject technologies like Robotic-assisted surgeries (RAS), they added.
TOP
PSU insurers told to shape up – The Economic Times – 14th August 2023
The government has asked state-run general insurers to look at ways to cut losses and improve
operational efficiency, emulating the turnaround story scripted by public sector banks. At a review of the
performance of state-owned insurers, the general insurers were conveyed that capital infusion will not
be provided to them just to cut losses and they need to draw up strategies to work on their revival,
officials said. "Insurers need to have a relook at their portfolio and work out future strategies," said one
government official. State-run general insurers continue to lose market share to private sector players,
and the government wants companies to make changes to their business strategies to arrest the decline.
In FY23, the four public sector general insurers-United India Insurance, New India Assurance, Oriental
Insurance and National Insurance Company-reported a cumulative market share of 32.27 percent, down
from 34.03 percent in FY22.
The government is keen that insurers take a leaf out of the public sector lender's play book, the second
official aware of development said. During 2022-23, public sector banks earned a record aggregate net
profit of around ₹1.05 lakh crore, almost triple the net profit earned in 2013-14. The asset quality of PSBs
also improved significantly with gross NPAs at 4.97 percent and net NPAs at 1.24 percent in March 2023.
"General insurers can make a turnaround like state-run banks, as insurance penetration in India is low
and offers great growth potential," said the official. The government had infused ₹5,000 crore into three
state-run general insurers in FY21. National Insurance Company had received ₹3,700 crore, Oriental
Insurance ₹1,200 crore and United India Insurance ₹100 crore. But a subsequent wage revision impacted
their balance sheet. At the review meeting, insurers were told that any future capital infusion would not
be just to keep them in green and they will need to take substantive measures towards revival, the official
said. Insurers have flagged pressure on their balance sheet on account of wage revision, a person familiar
with the deliberations said. The government is not looking at divestment in immediate term. "The option
to divest is there, but at present the focus is on revival, and the government will provide all necessary
support, but the capital infusion will not be done to keep things afloat," the above-quoted official said.
(The writer is Dheeraj Tiwari.)
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Insurers concerned about data handling in new digital regime – The Economic Times – 14th
August 2023
The potential penalty of ₹250 crore for breach of provisions of the new digital laws has rattled insurers
whose nearly 30 lakh agents range from matriculates to high end professionally qualified people. With no
case law yet, insurers fear that numerous frivolous cases could crop up. The introduction of Digital
Personal Data Protection Bill, 2023 applies to digital or physical data and covers personal data, except
what is publicly available or under legal obligation. This new law is about how personal information is
handled and covers data shared online or offline that gets turned into digital format. The law is about
how companies use personal information and getting permission from individual before using data.
Insurance companies hire individual agents to sell insurance policies and help with policy renewals and
other related services. These agents work with different types of insurers like life, general, health, and
specialized. There are about 24.43 lakh individual agents in the life insurance industry and 6.88 lakh
agents in the general insurance sector as of March 2022, according to IRDAI annual report. Insurers will
have to put controls on end use of personal data and ensure that specific consent is taken for the purpose
for which data is processed.
Insurers say that the biggest risk is agents and other distributors carrying customer data, which is freely
available in the market. "If there is any data breach, customer and Data protection board will have to be
informed," the executive informed. The insurance sector has begun engaging with prominent big four
consulting firms on this. "Regulating customer data lying with distributors will be the biggest challenge,"
said a insurance executive. In case there is a breach, customers will file complaints before data protection
board against insurers even though agents attached with insurers may disclose customer data and would
lead to insurers paying the penalty, an insurance executive said. The bill comes with strict rules and in
case of any violation, there could be heavy fines, even up to ₹250 crore. However, if someone disagrees
with a decision, they can ask Telecom Disputes Settlement & Appellate Tribunal (TDSAT) to look into it.
The bill talks about formation of Data Protection Board, a regulatory authority entrusted with overseeing
data management practices and enforcing compliance. In the event of a data breach, stringent protocols
are in place mandating the notification of both the customer and the Data Protection Board.
(The writer is Shilpy Sinha.)
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Insurance is significant for creating financial independence for the youth today - The
Economic Times – 13th August 2023
While today’s youth is sounder in financial matters taking interest in multiple investment options to
grow their wealth; insurance is one category which, even today’s smart youth rarely think of. It is a
mistake to assume that only older people above 60s are the most vulnerable to illness and health related
issues. An increasing number of young people are at health/ life risks today, due to hectic work
schedules, fast moving life, increasing number of accidents and abrupt lifestyle. Insurance thus ensures
financial security, by safeguarding assets of individuals and providing financial assistance during the
difficult times. It is also an important tool for long term investment needs; buying car/house, marriage,
child education, retirement planning becomes easier if one starts early.
Post Covid, health and life insurance have been extremely important. In the Life Insurance category,
starting insurance at a young age allows individuals to enjoy lower premiums. Life insurance can provide
financial cushion to their family, in case of the policyholder's untimely demise from any illness or
accident and the death benefits are comparatively more at younger age. Also, when one buys life
insurance plan at an early age, the money has more time to grow, increasing the cash value of the
investment in the longer run.
Lifestyle diseases, disabilities, and critical illnesses are impacting younger adults in India, making health
insurance a primary protection tool. Gone are the days, when critical illness and surgeries were more
related to the elderly population. Along with the significance of buying health insurance, there are a host

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of benefits insurers offer these days to encourage the younger generation. From substantial decrease in
waiting period time limit, to waiving off of medical screening, OPD expense benefits, maternity benefits,
the perks are endless. A lot of insurance companies have introduced ‘Lock the clock’ benefit, where the
consumer locks his/ her premium at the (young) age in which he/ she avails the policy. The policy
premium amount remains the same for years, during renewal, till the consumer makes his/ her first
claim.
Motor insurance is mandatory and as responsible youth of modern India, one should ensure that their
vehicle has comprehensive insurance. Despite the mandatory third-party motor insurance, almost 50%
vehicles are not insured in India, and the youth can contribute majorly towards its course correction.
Often accident victims are unable to get sufficient compensation because of the lack of motor insurance,
creating huge financial losses to families.
Youth has the power of technology which they should use to their advantage. Internet has brought
knowledge to everyone’s fingertips; digitally savvy youth will find it easy to educate themselves and
customise best insurance plans as per their needs. While technology today helps them in faster process of
availing insurance policies, digitally enabled insurance advisors guide them to purchase the most suitable
policies. There has been a major transformation in the insurance landscape in the last two-three years,
where insurance companies, aggregators are constantly working towards making the insurance buying,
servicing and claim settlement process seamless. While processes are becoming simpler, it is important
for the young people to be more aware, conscious, and wary about their financial goals. For a long-term
financial protection, it is always suggested to start creating and protecting wealth from a younger age.
Financial independence and protection are the right way to live a sustained and content life.
(The writer Indraneel Chatterjee.)
TOP
INSURANCE REGULATION
IRDAI moves towards more liberalised regime – Bizz Buzz – 16th August 2023
IRDAI signifies movement towards a more liberalised
regime, feel experts. The IRDAI has notified the IRDAI
(Payment of Commission) Regulations, 2023. The
notification is dated March 26 and governs payment of
commission to Insurance intermediaries. Simultaneously,
the IRDAI has also notified the IRDAI (Expenses of
Management of Insurers transacting General or Health
Insurance business) Regulations, 2023.
By notifying the Payment of Commission Regulations,
2023 the IRDAI has now removed all the erstwhile caps
on the payments which an insurer could make to insurance intermediaries. This is however, subject to
the insurers maintaining the Expenses of Management limits set by the IRDAI. In the Expenses of
Management Regulations, 2023, the IRDAI has simply stated that Insurers carrying on General Insurance
Business in India shall incur expenses of management upto 30 percent of gross premium written in India
in a financial year while Insurers carrying on Standalone Health Insurance Business in India shall incur
expenses of management upto 35 percent of gross premium written in India in a financial year. Over and
above the aforesaid limits, the IRDAI has allowed additional expenses in relation to set up of foreign
branches, set up of branches in the IFSC, expenses in relation to rural sector, government insurance
schemes, Insurtech and Insurance Awareness.
Talking to Bizz Buzz, Indranath Bishnu, Partner, Cyril Amarchand Mangaldas, says, “The new regime
introduces a single limit basis the total GWP of the general and health insurer. It has removed the
erstwhile segmental calculation of the allowable limits associated with expenses of management.” This
change introduced by the IRDAI signifies movement towards a more liberalised regime further to the

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stated objective of providing flexibility to the Insurers to manage their expenses within the overall limits
based on their gross written premium, he said. It is clear that as long as an insurer maintains financial
hygiene, it is free to determine the extent of commission to be paid to its intermediaries. Moving to such a
liberalised regime will help intermediaries and insurers to enter into more viable arrangements and
increase penetration.
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New IRDAI platform casts a shadow over PolicyBazaar – Live Mint – 14th August 2023
Top insurance aggregator PolicyBazaar is facing an unexpected challenge from the upcoming launch of
Bima Sugam, a similar platform being built by India’s insurance regulator, the heads of five insurance
companies said. The Insurance Regulatory and Development Authority of India’s (Irdai) Bima Sugam is
likely to be launched in a few months, the head of one of India’s largest life insurers said, adding the
platform may offer insurance products at 10-15% cheaper premiums.
“Bima Sugam’s entry may potentially snatch PolicyBazaar’s market share, hurting its revenue,
profitability and stock price severely in the next two years, which in turn will make PolicyBazaar’s
business model completely unviable," said the person cited above.
Founded by Yashish Dahiya and Alok Bansal, PolicyBazaar commands at least a fourth of the insurance
aggregator market. The arrival of Bima Sugam—meaning “Insurance Easy"—comes two years after
PolicyBazaar’s owner parent PB Fintech Ltd, backed by Info Edge and Japan’s SoftBank, got listed on the
stock exchanges. Masayoshi Son’s SoftBank holds 4.39%, China’s Tencent 6.28% and Info Edge holds
17.5% in PB Fintech, while Claymore Investments (Mauritius) Pte. Ltd, a subsidiary of Singapore’s
Temasek Holdings, own 5.43%.
While a query and several messages sent to PolicyBazaar spokespersons remained unanswered, during
its post-earnings analyst call on 8 August, PB Fintech’s executives had said, “It’s (Bima Sugam) a great
platform. I think it’ll do really, really well. You know, it’s obviously initiated by the government and by all
the insurance companies. We as part of the idea are also part of it. And we think it’s a phenomenal
platform here. It’s a regulator-initiated platform."
“PolicyBazaar is aware of the serious risk and is working on a Plan B to combat the imminent challenges,
prevent value erosion," said the head of one of the largest general insurers, the second person cited
above. An 8 August report by Macquarie Group sees a target price of `560 for PB Fintech shares, 25%
below their current levels, as the Bima Sugam platform could be disruptive, affecting PolicyBazaar’s ‘take
rates’ and market share.
At Monday’s close of `731.65 per share on the BSE, PB Fintech commanded `33,000 crore in market
capitalization. “We believe the company (PB Fintech) faces significant revenue and profitability risks
from the regulator’s launch of Bima Sugam, a marketplace that can affect longer-term market share and
take rates. TAM (total addressable market) potential is also limited, thereby affecting revenue prospects,"
said Suresh Ganapathy and Punit Bahlani in the Macquarie report.
To increase insurance penetration, Irdai wants to capitalize on the digitization of customers’ buying
habits, even in the financial services space.
“Bima Sugam in insurance industry will be like what ONDC (Open Network for Digital Commerce) is in
the e-commerce space or what UPI (Unified Payments Interface) is in the digital payment industry.
Ultimately, customers and every insurer will have to drift towards Bima Sugam as a separate, dedicated,
large distribution channel. Saving on distribution costs, it will offer insurance products at 20-30%
cheaper premium prices than what are offered on PolicyBazaar and by agents of insurance firms. This
will attract customers, though only simple term assurance, accidental insurance, motor, health and
property insurance policies will be initially sold on it and complex life and general products will come at
a later stage," said the third person, the head of a large life insurance firm.

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Bima Sugam will save on distribution costs for policy buyers and that is where it will impact
PolicyBazaar’s business model, the first person said. “A part of the premium paid goes as commission to
PolicyBazaar—its primary revenue source. Bima Sugam will eventually sell products like critical illness,
industrial, specialized health policies, pension, endowment and annuity life insurance plans. That is
where PolicyBazaar’s business may see a serious blow," said this person.
(The writer is Anirudh Laskar.)
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LIFE INSURANCE
Now, life insurance maturity money will not be fully tax-exempt: CBDT issues new tax rules –
The Economic Times – 17th August 2023
The Central Board of Direct Taxes (CBDT) issued new
guidelines on how tax-exempted maturity amount from a
life insurance policy will be calculated in a financial year if
the premium paid exceeds a specified level. As per the
new guidelines, the maturity amount from life insurance
policies bought on or after April 1, 2023, will not be fully
tax-exempt.
These new guidelines have come after Budget 2023 made
the life insurance maturity amount taxable if the premium
paid in a financial year exceeds Rs 5 lakh. These
guidelines will be applicable to all life insurance policies
except for unit-linked insurance policies (ULIPs).
It is important to note that proceeds from ULIPs are taxable from February 1, 2022, if the premium paid
exceeds Rs 2.5 lakh in a financial year. The new CBDT guidelines are issued via a circular and notification
dated August 16, 2023.
What does the CBDT circular say?
As mentioned above, the new CBDT guidelines will be applicable for life insurance policies issued on or
after April 1, 2023. Hence, for the life insurance policies issued till March 31, 2023, the maturity proceeds
will continue to be tax-exempt irrespective of the amount of premium paid during the policy term.
Naveen Wadhwa, chartered accountant and Vice-President, Taxmann.com says, "It is important to note
that maturity proceeds from the life insurance policy (issued on or before March 31, 2023) will not be
considered in FY 2023-24 and future financial years to calculate the tax-exempt amount. To calculate the
tax exemption on life insurance proceeds, only those issued on or after April 1, 2023, will be considered."
According to the CBDT circular, proceeds from the life insurance policy will be taxable if it meets the
following criteria:
a) For one life insurance policy: Money received from a life insurance policy will be taxable if the
premium paid in previous years during policy terms exceeds Rs 5 lakh.
b) For multiple life insurance policies: Money received from different life insurance policies will be
taxable if the aggregate premium paid in previous years during policy terms exceeds Rs 5 lakh.
Wadhwa says, "During the policy term if an individual switches the mode of premium payment say, from
annual to semi-annual/ quarterly or vice-versa which leads to premium paid exceeding Rs 5 lakh, then
the maturity proceeds of the life insurance policy will become taxable in the hands of an individual."
Do note that the taxability rules above will not be applicable in case of the death of the policyholder,
irrespective of the premium paid. The taxable amount will be taxed under the head 'Income from other
sources'.

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How tax-exempt portion from life insurance policies will be calculated?
Wadhwa says, "The CBDT guidelines has clarified that individuals can choose any life insurance policies
(whose aggregate premium exceeds Rs 5 lakh) to claim tax exemption. Hence, an individual is allowed to
choose the life insurance policies with higher maturity yield for tax exemption and pay taxes on those
whose maturity amount is less."
The CBDT, in its circular, has given various examples regarding how tax-exemption of life insurance
proceeds will be calculated if the premium paid in any of the previous years during the policy term
exceeds Rs 5 lakh. Here are some of the examples from the CBDT circular.
From the table above, it can be seen that the maturity proceeds from life insurance policy X will be
exempt as the policy was issued before April 1, 2023. Other life insurance policies were issued on April 1,
2023. Here an individual will be required to calculate the tax-exempt portion.
The maturity proceeds from A and B life insurance policies will be tax-exempt. This is because the
aggregate annual premium of both policies does not exceed Rs 5 lakh in a financial year. Maturity
proceeds from C's life insurance policy will be taxable as the annual premium exceeds Rs 5 lakh.
In FY 2033-24, the maturity proceeds from X life insurance policy will be tax-exempt. This is because the
annual premium does not exceed Rs 5 lakh. However, for the rest of the insurance policies (A, B and C),
the maturity proceeds will be taxable. This is because the aggregate annual premium of all four policies
exceeds Rs 5 lakh during the policy term FY 2023-24 and FY 2033-24.
The circular has further clarified that the annual premium will be considered exclusive of the GST paid.
The new CBDT guidelines on the taxability of life insurance proceeds will not be applicable to term life
insurance policies. This is because the amount is payable to the nominee in case of the death of the
policyholder and no amount is paid to the policyholder if he/she survives the policy term.
What will be the income tax rate?
Wadhwa says, "The maturity proceeds will be taxable as per the income tax slab rates applicable to an
individual's income."
(The writer is Preeti Motiani.)
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CBDT issues guidelines on ‘life insurance policy’ related taxation tweak of Finance Act 2023
– The Hindu Business Line – 16th August 2023
The Central Board of Direct Taxes (CDT) has issued guidelines on the recent Finance Act 2023 which
introduced changes in taxation of life insurance policies. The guidelines explain the implications of the
amendments under various situations with examples and has clarified that the prescribed premium
threshold shall be exclusive of GST component. As per the Finance Act, 2023, with effect from AY24-25,
the sum received under a life insurance policy, other than unit linked insurance policy (ULIP), issued on
or after April 1, 2023, shall not be exempt under Section 10(10D) if the amount of premium payable for
any of the previous years during the term of such policy exceeds ₹5 lakh.
Also, it was provided that if premium is payable for more than one life insurance policy, other than a
ULIP, issued on or after Apr 1, 2023 then the exemption shall be available only with respect to such
policies where the aggregate premium does not exceed ₹ 5 lakh for any of the previous years during the
term of any of those policies. These exceptions do not apply to any sum received on the death of a person.
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You can save up to 80% on your term life insurance premium if you quit smoking; when and
how to buy it – The Economic Times – 14th August 2023
Buying a pack of cigarettes may not seem to be a costly
action in the short run, but the price you pay for it
becomes quite huge over the years. And the danger is not
only restricted to just health or cost of medical treatment;
smoking also affects your life insurance premium.
If you smoke, you would have to pay a higher premium
than your non-smoker friend while buying a life insurance
policy. Let's understand how smoking impacts life
insurance premiums, how much you pay for a cover and
what you can do to reduce your burden.
It is no surprise that smokers are more prone to being
diagnosed with a critical illness, and to premature death. "Tobacco use has been related to an increased
risk of acquiring major health diseases such as heart disease, lung cancer and respiratory problems. As a
result, insurers consider smokers to be 'higher-risk' individuals," says Rishabh Garg, Head-Term
Insurance, Policybazaar.com. Insurance companies consider smokers to be more likely to claim the
insurance. As a consequence, smokers are charged higher premiums than non-smokers for life insurance.
How do most life insurance companies define 'smoker'?
Usually, life insurance companies use very specific questions to find out whether you are a smoker or not.
"The insurance companies consider an individual as a smoker if they take nicotine in any form like bidi,
cigarettes, cigars, hookahs, chew tobacco, etc," says Pankaj Goenka, Assistant Vice-President & Head-B2B
Business, InsuranceDekho.
Even if you use a nicotine patch or gum, the insurer can classify you as a smoker.
To understand whether you are a smoker or not, insurers typically ask a set of questions — a) Do you
consume nicotine and/or tobacco products? b) Do you smoke? c) Have you consumed a tobacco product
in the last five years? d) Have you ever consumed tobacco products? If your answer to these questions is
yes, then you will most likely be considered a smoker. If your insurance company tags you as a smoker,
you will be placed in the high-risk category, and your premium will be higher.
How much extra premium do smokers have to pay for term insurance?
The additional premium that you have to pay as a smoker varies from one insurance company to another.
Typically, the difference in premium between smokers and non-smokers is around 30 per cent. This is
because smokers are vulnerable to critical illness and have a shorter lifespan, says Goyal. However, the
premium rates for smokers can be 50 per cent to 80 per cent higher than those of non-smokers, adds
Garg.
For instance, a 28-year-old non-smoker male has to pay an annual premium of Rs 11,385 for a Rs 50-lakh
term cover of HDFC Life Click 2 Protect Life for a tenure of 30 years. For the same policy, a 28-year-old
smoker has to pay an annual premium of Rs 17,949 — 58 percent higher. "The extent of increase can
vary considerably depending on the insurer but over 50 percent premium increases are common," says
Kapil Mehta, Co-founder, SecureNow Insurance Broker.
Do remember that the life insurance company will check other factors as well while calculating your
premium — such as type and amount of life insurance, your age and your health.
Do I have to pay more premium if I smoke occasionally?
Insurance companies generally do not differentiate between an occasional and a regular smoker. Even if
you have a drag occasionally, this will still count against you when it comes to a term insurance policy.
You have to declare yourself as a smoker while purchasing the policy even if you smoke only
occasionally.

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If you smoke a cigarette socially and are thinking of declaring yourself as a non-smoker to get a lower
premium, be cautious. There can be severe consequences for lying.
When you buy a term plan online, you enter a legal contract with the insurance company. You are
expected to provide accurate information. Lying at the time of purchasing a policy will be considered as a
breach of doctrine of good faith as the insurance company accepts all information declared by you in your
insurance proposal as true. If your insurance company discovers that you have lied, it can cancel the
policy during the policy period or when settling the claim. You will lose the protection as well as your
hard-earned money. So it is better to tell the truth from the very beginning.
"The smoking question must be accurately answered. Some insurers ask if you currently smoke; others
may want to know if you have smoked in the past. State the facts. The insurer verifies your smoking habit
through a cotinine blood test," says Mehta of SecureNow Insurance Broker.
Will I get lower premium rates if I quit smoking after buying the policy?
No. In India, insurance companies typically do not allow you to change your term insurance status from
smoking to non-smoking during the policy tenure. So it is unlikely to have any impact on your premium
or policy, explains Goenka.
"Once the premium is decided and paid by the policyholders, there are fewer chances of any changes in
the premium. Having said that, some insurers do provide discounts to policyholders who quit smoking.
But even to get that benefit, insurers will ask the policyholder to undergo medical tests," says Goyal of
Probus Insurance Broker. However, you can quit smoking, wait for the necessary period and then buy a
new term insurance policy as a non-smoker; the premiums might be lower in that case.
How long do I need to wait after quitting smoking to buy a term insurance cover as a non-smoker?
The exact period varies from one insurer to another. "But generally, the policyholder should stay away
from smoking for at least 12 months to qualify for the non-smoker premium rates," says Goyal. But Garg
points out that some insurers do not consider non-smoking status unless the customer has given up
smoking for more than 12 months to up to five years.
Do I need to pay more premium if I start smoking after buying a term policy?
If you have already purchased a term plan as a non-smoker and become a smoker later on, there will not
be an impact on your policy premium. "However, it is safe to inform the insurance company, as it can
delay the final payout until it verifies the claim request if such a thing is concealed from the insurer," adds
Goyal.
(The writer is Anulekha Ray.)
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Factors to consider while buying Life Insurance in your youth – Financial Express – 13th
August 2023
Many people in their early to mid-20s hesitate to buy life
insurance as they believe that they do not need insurance at
this stage of life. They feel that they can defer this
investment to a later date, when they get married or have
additional responsibilities like kids or retired parents.
But the pandemic has shown us that life can be
unpredictable, and uncertainty can strike at any time. Hence,
investing in life insurance at an early age can be a life saviour
as it offers financial security to your family in case of your
unfortunate demise.
Investing in a life insurance plan at an early age offers many benefits. But there are certain factors that
one must consider.

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Lower premiums, larger life cover
One of the main benefits of investing early in a life insurance plan is that you are likely to pay lower
premiums as in general, one’s health is much better, and mortality tends to be lower in younger age-
groups. Thus, by spending less on premium, you would have the option of saving more and investing the
money in other avenues.
You are also likely to get a larger life cover if you purchase a plan at a younger age. You might get a life
cover of 15-20 times your annual income if you invest in a plan in your 20s or 30s, as compared to about
5-10 times your yearly income if you purchase a plan in your 40s or 50s. You will also benefit from the
power of compounding by investing early. You will be able to earn a higher return on your investment,
which will go a long way in helping you plan for the important milestones that will come up later in life.
Opt for a separate plan
While this may be the early start of your career, certain employers offer their employees coverage under
a group term insurance plan. While this does provide a certain amount of financial protection, it is
important to keep in mind that this financial security is valid only until you work with the same
employer. When you switch your job, this coverage will no longer apply to you and your new employer
may or may not have a group cover for their employees.
Also, if you decide to take an extended break between jobs or more importantly, if you decide to become
an entrepreneur at a later stage in life, you may suddenly find yourself without a life cover. At that point,
you may find it difficult to get a plan or it could end up being costly.
Tax benefits
Investing in a life insurance plan may offer you tax benefits under Section 80C, Section 10(10D) and
Section 80D of the Income Tax Act, 1961. It is advisable to consult a financial adviser who will provide
you with the right guidance about the tax benefits applicable to you.
Additional riders
To enhance the protection aspect of a base life insurance plan, one can opt for various riders, such as
accident, disability, waiver of premium, or critical illness, depending on one’s needs. Riders help make
the plans more potent and cover multiple aspects of risk that a customer could encounter. These riders
are optional and come at an additional cost. However, when you are buying a life insurance plan at an
early stage of life, the additional cost is likely to be nominal and the riders are easier to get. To sum it up,
there is clearly a lot to be gained by buying a life insurance plan early in life. So, invest in a life insurance
plan today to meet your financial goals while staying financially protected.
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GENERAL INSURANCE
Student travel insurance is a prudent financial decision before going abroad for studies –
Financial Express – 13th August 2023
The surge in the number of students opting to study
abroad has led to a significant boost in the demand for
student travel insurance in India. As more young
individuals seek higher education opportunities in
foreign countries, the need to ensure their well-being,
security, and academic pursuits has become paramount.
Student travel insurance plans are highly beneficial,
tailored as a safety cushion for students who are
embarking on educational journeys far from home.
In the current education market, more than 75 countries
across the globe present enormous opportunities for
students to experience international education. According to the data provided in the Lok Sabha by

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Subhas Sarkar, Minister of State in the Ministry of Education, the proportion of Indian students studying
abroad rose by 68.79% in 2022.
Student travel insurance has turned into a necessity as it covers a broad range of potential problems,
including loss of baggage and loss of laptop/ mobile/ camera, etc., that can disrupt one’s studies. Student
travel insurance is tailored as per students’ needs and provides coverage for study interruptions. Our
student travel assurance plan at NBHI can provide coverage for a time period between three months to
three years, as per students’ needs. Given the benefits a student travel insurance plan offers; it is highly
recommended that every outgoing international student must purchase an adequate amount of coverage
according to the duration of their stay.

A good student travel insurance cover is made with careful prudence, keeping in consideration all
possible scenarios an international student can face, thereby ensuring students are adequately covered
and can pursue their education hassle-free.
Benefits of buying a student travel insurance
Emergency in-patient medical treatment
Student travel insurance covers the cost of medical treatment, including hospitalization, doctor visits,
medication, and emergency medical evacuations in case of unexpected illnesses or injuries during the
trip.
Emergency outpatient treatment: The plan gives protection for out-patient treatment due to an accident
or illness
Loss of Baggage
In case of lost, stolen, or damaged baggage, travel insurance offers compensation for the value of the
belongings that were lost or affected during the journey.
Emergency Assistance
Travel insurance offers 24/7 emergency assistance services, including access to a helpline for medical
advice, coordination of medical services, legal assistance, and travel information. Travel insurance may
also cover the expense of deaths and repatriation of the deceased.
Dental treatment
Our Travel Assure plan covers medical expenses for dental treatment. Most international student dental
insurance policies, identify a “network” of dentists who are willing to accept your dental coverage. This
not only aids students to save money but may also cover preventive care.
Complete pre-existing disease cover
A unique feature of our student travel assurance is that students can avail 100% coverage for pre-
existing diseases and that can be a much-needed financial cushion.
Loss of Gadgets and Passport/Driving License
Coverage for the loss of any gadget due to theft or robbery is provided to students. Additionally, students
going abroad also become eligible for coverage of the cost of getting a new passport and driving license.
(The writer is Dr. Bhabatosh Mishra.)
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Comprehensive home insurance: your lifeline against devastating flood damages – The
Economic Times – 12th August 2023
India, known for its susceptibility to monsoon rains, experiences a significant portion of its annual
rainfall between June and September. These monsoons often trigger disastrous floods, causing extensive
damage to property and loss of life. The profound impact of these floods reverberates through every
aspect of people's lives, displacing families, demolishing properties, and disrupting livelihoods. Rising
water levels pose severe threats, infiltrating foundations, causing electrical system failures, annihilating

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personal belongings, and compromising the structural integrity of houses/buildings. Recovering from
such extensive losses can inflict overwhelming financial burdens on individuals and families and thus
emphasizing the invaluable significance of comprehensive home insurance coverage.
(The writer is Raghavendra Rao.)
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The importance of Credit Insurance during the global recession scenario – The Economic
Times – 12th August 2023
The International Monetary Fund in 2023 estimated that
one-third of the global economy will experience a
recession this year and the economic growth will turn out
to be lesser than 2022. In the last few months, we have
already heard the news of the Eurozone, New Zealand and
Singapore going into recession. Global GDP growth is
expected to fall from 3.4 percent in 2022 to 2.8 percent in
2023, and recover only marginally to 3.0 percent in 2024.
These projections need to be understood in the context of
a long and deep recession that has affected the global
economy since the North Atlantic financial crisis of 2008.
The effects of global recession are being felt across
different sectors and industries, leading to job losses, reduced investment, and decreased consumer
spending.
While India has not been immune to the global recession and experienced consistent economic growth, it
is still integrated with the global economy and can be affected by global economic trends. The slowdown
in economy can lead to falling exports; additionally, foreign investors are pulling back from investing in
India, resulting in reduced capital flows and increased volatility in financial markets.
India’s Foreign Direct Investment (FDI) market has dipped for the first time in a decade, falling 16% to
$71 billion (on a gross basis) during the financial year 2022-23 because of high inflation and weak
demand in the US and Europe. India’s domestic economy is also vulnerable to global shocks. For example,
a sudden increase in oil prices due to geopolitical tensions or other factors could increase India’s import
bill, leading to inflationary pressures and a slowdown in economic growth.
While our economy still remains protected from the extreme global volatility, it is always important to
stay prepared. Too much of global economic turmoil can impact our exports, foreign investment,
remittances, and tourism in the times to come. The Indian government on its part is expected to
implement policies to boost domestic demand and investment, by providing fiscal stimulus, and investing
in infrastructure. Insurance too can play a vital role in mitigating the risk of global recession. Credit
insurance can play a role in protection to businesses against the non-payment of trade receivables.
Providing Financial Protection: Credit insurance policies cover losses incurred due to the insolvency or
default of buyers. In a global recession, the risk of business failures and payment defaults increase
significantly. Credit insurance helps businesses by reimbursing them for unpaid invoices, reducing the
impact of non-payment on their cash flow and profitability.
Enhancing Risk Management: Credit insurers have access to extensive database and credit risk
information, allowing them to assess the creditworthiness of buyers more effectively. By leveraging this
knowledge, businesses can make informed decisions about extending credit to customers and managing
their credit risk during uncertain economic conditions. Facilitating Trade and Financing: During global
recession, access to trade finance can become more challenging as lenders become more risk-averse.
With credit insurance in place, businesses can often secure more favourable financing terms. Lenders are
more willing to provide financing when they see that a business has insured its receivables, as it provides
an additional layer of security.

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Providing Market Expansion Opportunities: Credit insurance can provide businesses with the confidence
of exploring new markets and expanding their customer base, even during a recession. By transferring
the risk of non-payment to the insurer, businesses can reduce their exposure to potential losses and take
calculated risks to tap into new markets or sectors.
Strengthening Supply Chain Resilience: A global recession can disrupt supply chains and lead to business
failures, causing a ripple effect across industries. Credit insurance can help strengthen the resilience of
supply chains by protecting businesses against the financial impact of customer defaults. By minimizing
losses, businesses can better navigate the challenges and maintain their operations during uncertain
economic conditions.
It is important to note that credit insurance is not the only solution for mitigating global recession risk. It
should be complemented with sound risk management practices, enterprise risk management to monitor
and mitigate risks that businesses face, diversified customer portfolios, and a thorough understanding of
market dynamics to effectively manage risks associated with economic downturns.
(The writer is Mehul Palan.)
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HEALTH INSURANCE
Under PM, India moving towards universal health care: Mandaviya – Daily Excelsior – 18th
August 2023
India is moving towards achieving the goal of universal
health care under the leadership of Prime Minister
Narendra Modi through more than 1.5 lakh Ayushman
Bharat health and wellness centres, Union Minister
Mansukh Mandaviya said on Thursday.
He was speaking at the inauguration of the ‘One Earth
One Health – Advantage Healthcare India 2023′ event
held at Mahatma Mandir in Gandhinagar as part of India’s
G20 presidency ahead of G20 Health Ministers’ meeting
to be held on Friday.
“Under the leadership of the Prime Minister Narendra
Modi, India has been moving steadily towards the goal of sarvodaya, achieving universal health care
through more than 1,50,000 health and wellness centres as well as the world’s biggest government
funded health insurance scheme the Pradhan Mantri Jan Arogya Yojna,” said Mandaviya in his keynote
address.
“We are also making consistent efforts to contribute to the global health care ecosystem. Today, India is
known as the pharmacy of the world. India is the largest provider of generic medicines with a share of 20
per cent in the global supply. We also contribute around 60 per cent of global vaccines,” the Union Health
minister added.
On the occasion, Mandaviya launched the ‘Advantage Health Care India – One Stop Digital Portal For
Patient’ and the ‘Workforce Mobility’ portal, which he said will offer a tangible solution to some of the
most pressing challenges in the health care sector today. Elaborating on the Indian health system, he said
the country is today supported by a workforce of 1.3 million allopathic doctors, 8 lakh AYUSH doctors
and 3.4 million nurses and midwives.
“Through this highly qualified and skilful workforce, India plans to contribute to an organised system of
workforce mobility, wherein India’s health care professionals travel to different parts of the world to
serve the global community,” he said.

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Medical value travel or medical tourism will enable greater knowledge-sharing, sustainable partnerships
and increased synergies contributing to building a stronger global health architecture, he asserted. “We
strive to build a more inclusive and equitable world where health care knows no boundaries and where
skilled health care professionals can make a difference wherever they are. Our collective efforts will be
towards creating a health care ecosystem that embraces the voice of every nation, every citizen and every
being,” the Union minister said. (PTI).
On the occasion, Union AYUSH Minister Sarbananda Sonowal said traditional medicine, specifically
AYUSH, has much to offer to the world. “Today, traditional medicine, specifically AYUSH, has much to
offer to the common man, academicians and to the industry and to the entire world. The increasing
demand for AYUSH in India and globally can be seen in the rise of the AYUSH industry,” said Sonowal in
his address.
The manufacturing industry in AYUSH has been growing at a CAGR of 17 per cent from 2014 to 2020 and
the current market size is projected to be USD 23.3 billion, which is indicative of the growing AYUSH
ecosystem and its widespread adoption, Sonowal informed. “Adoption of AYUSH in public health is also
gaining momentum, especially after the (COVID) pandemic. We have the potential to be the world leader
in the traditional health care sector. With increasing awareness about health and fitness and changing
lifestyle, the demand for Ayurveda and its products has increased tremendously at the international
level,” he said.
As per a PIB release, Mandaviya, during the day, held various bilateral meetings with the European
Union, Germany and Saudi Arabia. It said the bilateral meeting with the European Union focused on
exploring areas of collaboration in fortifying health care systems and enhancing capacities for disease
surveillance and capacity building amongst other domains with a particular focus on Ayurveda
Telemedicine, clinical trials and research in India for EU-based pharmaceutical companies.
The meeting with Saudi Arabia involved exchange of experiences and best practices on regulatory
requirements, joint ventures, technology transfer especially in APIs towards de-risking supply chains and
boosting resilience therein, said the release. Germany and India’s meeting focused on cooperation in the
pharmaceutical sector, including drug regulators and in pharmacopeia, ICMR and federal ministry of
education and research, strengthening value-based health care through medical value travel, cooperation
in traditional medicine, promotion of digital public goods and cooperation in digital health.
The release said future orientation will include cooperation under MoU between ICMR, and German
Research Foundation, cooperation under Special arrangement between ICMR and Federal Ministry of
Education and Research (BMBF), Germany Delhi under Indo-German S&T Agreement, revision in
Minimum Viable Product among others. (PTI)
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How a health insurance becomes a path to financial wellbeing – CNBC – 17TH August 2023
As India celebrates its 76th year of independence, a
crucial requirement emerges for a different form of
liberation that should be of utmost importance—the
attainment for a self-reliant nation and healthy citizenry.
Health insurance is a cornerstone of modern society,
offering health, well-being, peace of mind, and financial
security given the inevitability of medical emergencies
and illnesses.
While Indian government and the insurance regulator
IRDAI has taken significant steps towards prioritising
health insurance, the importance of health insurance
cannot be undermined — it provides a safety net against the unpredictable and often exorbitant costs of
medical care.

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In a world where health-related uncertainties are inevitable, having health insurance ensures that
individuals can access necessary medical treatments without facing overwhelming financial burdens.
This coverage not only safeguards physical well-being but also offers peace of mind, allowing people to
focus on their health and recovery rather than worrying about the financial repercussions of unexpected
illnesses or emergencies.
Ultimately, in a rapidly evolving healthcare landscape, having comprehensive health insurance is not just
a luxury, but a necessity and it's time to understand the real importance of this invaluable safeguard.
Economic empowerment through health security: The need of the hour
In India, the burden of out-of-pocket healthcare expenses still looms large over many households. Health
insurance acts as a powerful catalyst, shielding families from the financial shocks that medical
emergencies can bring. A robust health insurance framework has the potential to alleviate financial
burdens on individuals and families during medical emergencies, ensuring that necessary treatments are
accessible without pushing them into crippling debt.
Moreover, improved insurance coverage can incentivise individuals to seek timely quality medical
attention, thereby reducing the burden on public healthcare facilities and promoting a more proactive
approach to healthcare. By providing affordable access to quality healthcare, health insurance empowers
individuals to invest in education, housing, and entrepreneurship, ultimately contributing to the nation's
economic progress.
Healthy workforce: Synonymous with a more robust economy
A healthy workforce plays a pivotal role in the vitality of a nation's economy and the well-being of its
citizens. A workforce that is physically and mentally healthy tends to be more productive, engaged, and
resilient, ultimately driving economic growth. A well-structured health insurance system is integral to
this equation as it provides a safety net against unforeseen medical expenses, reducing financial stress on
individuals and families.
When employees have access to health insurance coverage, they are more likely to seek timely medical
care, preventing minor issues from escalating into major health concerns that could lead to prolonged
absences from work. This, in turn, reduces productivity losses and ensures a stable labour force. While,
there are many benefits to group health coverage provided by the employer.
But, certain circumstances may require employees to purchase an individual health cover in addition to
group coverage. The main reason for this is, if the employee decides to leave the organisation, the
coverage also ends. As time passes, you may find it challenging to purchase an individual health cover,
especially when meeting your post-retirement health issues.
Inspiring a healthy nation: Preventive and wellness care
In the inspiring journey towards building a healthier nation, the significance of selecting the appropriate
health insurance plan cannot be overstated. When considering a health insurance plan, there are several
key factors to bear in mind. Much like the freedom fighters' emphasis on education and empowerment,
health insurance encourages a proactive approach to healthcare.
Many health insurance policies include provisions for preventive care, encouraging regular health check-
ups and early intervention. This shift towards wellness aligns with India's vision of a healthier, more
vibrant society. By emphasising preventive measures, health insurance fosters a culture of health
consciousness, reducing the burden on healthcare facilities and contributing to a healthier nation.
As India marks another year of independence, the time is ripe to recognise health insurance as a key
instrument in securing a self-reliant and prosperous future. Just as the visionaries of the past united to
shape an independent nation, today's visionaries must unite to advocate for comprehensive health
insurance coverage for all. The regulator IRDAI also aims to boost insurance penetration with the mission
of “Insurance for all” by 2047, when we complete a hundred years of India's independence, and is taking
various initiatives to make this happen. Access to quality healthcare need to be the guiding principle that

19
accelerate the transformative healthcare changes our country needs, as well as to enhance the health,
well-being and peace of mind of all Indians.
By embracing health insurance, together lets honour the sacrifices of those who fought for our freedom
and forge a path towards a healthier, more equitable India. As the tricolour waves proudly, let it remind
us of our commitment to ensure that every Indian lives a life of health, well-being, and prosperity.
(The writer is Prasun Sikdar.)
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Medical tourism: Industry bats for value addition, insurance liaison, flight connectivity –
The Indian Express – 17th August 2023
India should be focusing on attracting medical tourists for the specialised value that the country’s
healthcare sector can provide instead of merely attracting medical tourists for the low-cost healthcare
services, said experts at a conference held on the sidelines of a G20 event in Gandhinagar Thursday. At a
roundtable session on ‘Advantage Health Care-India 2023’ that focussed on partnerships and
collaborations, industry stakeholders also batted for seamless insurance coverage across borders and
better flight connectivity to Ahmedabad.
“My one important suggestion to get patients from the Gulf Cooperation Council (GCC) countries,
especially the UAE, is that we should be focusing on insurance companies rather than individuals because
insurance companies make the decision. For them, it is an advantage if a patient, instead of getting
operated at GCC, comes to India as it will reduce the cost for them (insurance companies) at least by 50
per cent,” Aster DM Healthcare chairman Azad Moopen said.
He added that ministries of health and tourism both at the Central and state governments should focus on
GCC as it is the main market with the largest number of Indians. “The flow right now is only from two
countries — Oman and Iraq. Other countries such as UAE, Bahrain, Kuwait, Saudi Arabia, etc are just a
trickle because they do not know about Indian healthcare and how it has gone up in the past 15-20 years.
There is a requirement for us to promote India properly,” Moopen added. KEF Holdings and Meitra
Hospital chairman Faizal Kottikollon said, “Normally, tourism that is coming to India is for its cost-
effectiveness. That has to change… We need to attract high-paying patients to our country instead of
depending on only Afghanistan… We should also take it to the next level.”
HCG Hospitals International Marketing vice-president Sanket Arora said they face primarily two practical
challenges while doing business in the Gulf region. “First, in terms of capacity building, HCG takes along
their own medical experts and registration and licensing at the visiting country for the doctors takes a lot
of time. Second, when it comes to insurance, the hospital ends up shouldering the risk of default,” he said.
To solve the bottlenecks, Arora suggested, “Our medical council can liaison with the medical councils of
the Gulf countries and hasten the process of licensing and registration so that we can collaborate better.
For insurance, if we can have local insurance companies in these countries liaison with our insurance
bodies such as IRDAI (Insurance Regulatory and Development Authority) and have a formal-kind of
association, that would help us in streamlining and hedging the risks for the hospitals.”
(The writer is Sohini Ghosh.)
TOP
Bring regulations to make medical indemnity insurance mandatory for healthcare
professionals: Experts – Express Healthcare – 17th August 2023
Medical indemnity (malpractice) insurance is not widely popular in India and remains under-penetrated
due to limited awareness among smaller hospitals and healthcare practitioners about its importance and
the misconception that it is an additional expense rather than a risk-mitigation tool. Regulatory changes
and awareness campaigns are needed to change this scenario, experts of Delhi-based TR Life Sciences,

20
hospital management consulting firm, have said. There are several reasons for the low penetration of
medical indemnity insurance in India, apart from low awareness.
Dr Anurag Kashyap, Director-Finance & Strategy, TR Life Science, New Delhi said, “Complex language and
clauses of the policy contribute to the difficulty in grasping the implications. The claims process is often
burdensome, discouraging healthcare professionals from pursuing claims. While some insurance
companies have taken steps to include out-of-court settlement clauses to make the policy more
appealing, the penetration rate remains low not only among smaller hospitals but also among larger
ones.”
He added, “Corporate hospitals, being more established and better informed about risk management
practices, are more likely to have medical malpractice insurance coverage in place, but they often lack in
terms of quantum and scope of coverages. Smaller hospitals, especially those in mid-level or non-super
specialty fields, tend to take a cost-conscious approach to avoid taking the insurance. They prefer to go
for out-of-court settlement. Even prominent healthcare institutions lack dedicated insurance and risk
mitigation departments, emphasising the critical need for assessing the risks within hospitals and doctor
practices.”

Recounting the steps to be taken to promote the widespread adoption of medical malpractice insurance
among the healthcare fraternity, Dr Kashyap said, “The government can play a significant role by
introducing guidelines and regulations to make the policy mandatory for healthcare professionals,
especially during the time of registration as a doctor, with specified basic coverages. The policies too
need to include different categories based on the size and specialisation of hospitals and doctors.
Insurance companies should create platforms to educate healthcare professionals about the importance
and necessity of medical malpractice insurance. Simplifying policy language and streamlining the claims
process can make the insurance more accessible and user-friendly. Eliminating the need for hiring legal
experts for claims can also make the policy more attractive.”
He added, “Hospitals need to establish dedicated departments for risk assessments and their mitigation
and recommend suitable insurance coverages. These departments should collaborate with insurance
companies and government to identify new areas of coverage and determine the appropriate quantum of
policies. Due to increasing digitization and emergence of artificial intelligence, many associated risks are
emerging for healthcare institutions, and they need to prepare themselves for such situations with
medical indemnity insurance.”
Dr Gopal Sharan, Managing Director, TR Life Sciences said, “Changing the mindset of healthcare
professionals and their approach is also essential to make medical indemnity insurance popular in the
country. They need to consider it as risk mitigation, rather than an expense. Encouraging their
participation in webinars and lectures on risk assessment and mitigation can enhance their
understanding and readiness to invest in comprehensive coverage. Insurance companies should
proactively engage with the fraternity, elaborating on their products, coverages, and benefits to enable
informed decision-making.”
TOP
Centre denies report of the dead availing treatment under Ayushman Bharat scheme – The
Indian Express – 17th August 2023
The government on Thursday flagged the media reports that claimed that there were irregularities in the
audit of the Ayushman Bharat-PMJAY health insurance scheme to be completely false and misleading. In a
performance audit, under the head "Treatment of a beneficiary shown as 'died' during earlier
claim/treatment", the CAG had noted that “patients earlier shown as ‘died’ in TMS (the Transaction
Management System of the scheme) continued to avail treatment under the scheme".
The audit noted that there were 3,903 such claims, pertaining to 3,446 patients and that Rs 6.97 crore
was paid to hospitals across the country. "There have been media reports claiming that the Comptroller
and Auditor General of India (CAG) has flagged that treatments have been booked for AB PM-JAY

21
beneficiaries who have been declared dead on the system. It further claims that the same beneficiary had
been found to avail of treatment across two hospitals at the same time. These media reports are
completely misleading and ill-informed," said the government.
It clarified that under Ayushman Bharat, hospitals are
allowed to initiate requests for pre-authorization three
days in advance, prior to the date of admission in the
hospital. This feature is enabled to avoid denial of
treatment in case of limited connectivity, emergency
situations, etc. In some cases, the patients got admitted
and before their pre-authorization was raised, they died
during the treatment. In such cases, the date of death is
the same as the admission date or earlier.
Moreover, death has also been reported by the same
hospital which raised the pre-authorization request. Thus,
had the hospital intended to defraud the system, it would not have shown any interest in declaring the
patient dead on record. Regarding the same patient availing treatment in two hospitals at the same time,
it may be noted that under AB PM-JAY, children up to 5 years of age avail treatment on the Ayushman
Card of their parents.
Accordingly, Ayushman Card can simultaneously be used for children and parents in two different
hospitals. For example, a mother may be admitted to a hospital and delivers a baby during treatment and
the hospital where the mother is availing treatment may not have a neo-natal care facility available,
therefore, the child may be shifted to some other hospital with a neo-natal care facility available. In this
case, the mother’s Ayushman Card is simultaneously being used for both, the baby and the mother.
Another example can be of a father and baby being treated simultaneously in two different hospitals on
the Ayushman Card of the father. The government also dismissed reports that claimed the CAG found that
one mobile number was associated with multiple beneficiaries. "It has no operational and financial
implications as the beneficiary identification process under Ayushman Bharat PM-JAY is not linked with
the mobile number. The mobile number is captured only for the sake of reaching out to the beneficiaries
in case of any need and for collecting feedback regarding the treatment provided," it clarified.
"With regard to the use of the same mobile number by multiple beneficiaries, it may be noted that the
mobile number is not a mandatory field for beneficiary verification. However, since there was a field for
collecting mobile numbers, it is possible that some random ten-digit number was entered by the field-
level workers in some cases in the earlier stages of the scheme implementation. Initially, OTP-based
validation was not enabled as many beneficiaries either didn’t carry the mobile with them or shared the
number of their relative or neighbour. However, non-validation of mobile numbers wouldn’t impact
either the correctness of the beneficiary verification process or the validity of the beneficiaries’ eligibility
under the scheme," it added. Necessary changes have subsequently been made in the current IT portal
used by NHA for capturing only valid mobile numbers, in case the same is possessed by the beneficiary.
The report of the Comptroller and Auditor General of India which contains results of the Performance
Audit on Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana (AB PM-JAY) covering the period
September 2018 to March 2021 was placed in parliament in the Monsoon Session of 2023, said the
government.
(The writer is Nirmala Murali.)
TOP
Medtech companies still in talks with insurers to get their treatments covered - The
Economic Times (Bangalore edition) – 16th august 2023
Despite a directive from the insurance regulatory authority in 2019 that modern medical treatment be
covered under insurance policies, medtech companies say they still face some obstacles in getting their
technology covered under a few companies’ plans. Insurance consultants, who are helping facilitate the

22
dialogue between medtech and insurance companies, said that this may be because of ambiguity in the
wording of the directive from the Insurance Regulatory and Development Authority of India (IRDAI).
“The directive says the treatments will be covered whenever medically indicated, which can be
interpreted as ‘only covered if necessary,’ and not by the patients’ choice,” they said. Insurance
companies, medtech firms say, use this to reject technologies like Robotic-assisted surgeries (RAS). The
insurance loopholes, compa nies say, are hampering their growth in the country. Mandeep Singh Kumar,
the VP of Intuitive Surgical India, which builds technology for RAS, said that many health insurance
policies have sub-limits, restraining full access of their product to a wider section of the population. “One
of the best ways to address this gap is to sensitise patients, providers (hospitals), and payers (insurance
companies) about the benefits of RAS,” he said.
The Nasdaq-listed company, whose In dian operations are headquartered in Bengaluru, is in talks with
several insurance firms to get their procedures universally approved. “We are also working with Third
Party Administrators (TPA) to ensure that the mandate for comprehensive coverage of RAS is uniformly
applied,” said Kumar. According to IRDAI’s circular, Robotic Surgery is listed as one of the treatments
companies cannot exclude in health insurance policy contracts.
TOP
Ayushman Bharat Scheme: CAG report exposes dummy numbers, Aadhar irregularities -
Live Mint – 14th August 2023
The recent report by the Comptroller and Auditor General (CAG) regarding the Ayushman Bharat -
Pradhan Mantri Jan Arogya Yojana, presented in Parliament this week, highlights some astonishing and
significant figures. As per a report by FIT Quint, the report reveals that around 750,000 beneficiaries
were associated with an invalid mobile number, specifically 9999999999.
Moreover, the CAG identified 4,761 registrations that were linked to only seven Aadhar numbers,
indicating potential irregularities. Additionally, the audit found instances of hospitals that were absent
from the list of facilities registered under the public health insurance scheme.
In an interview with FIT Quint, Srinivas Kodali, a researcher specializing in data, governance, and the
internet, as well as Shweta Mohandas, a policy officer at the Centre for Internet and Society. They also
consulted with a public health expert in order to gain a deeper understanding of the matter.
Verifying one Unique ID for multiple beneficiaries: What's the process?
When an individual visits a hospital to access the advantages offered by the Ayushman Bharat scheme,
they are required to present their Aadhar card, which is then utilized to verify the patient's eligibility.
“AB-PMJAY identifies the beneficiary through Aadhaar identification wherein the beneficiary undergoes
the process of mandatory Aadhaar based e-KYC. The details fetched from the Aadhaar database are
matched with the source database and accordingly, the request for Ayushman card is approved or
rejected based on the beneficiary details," an unnamed official told news agency PTI.
As per the CAG audit findings, approximately 4,761 enrollments were recorded using only seven Aadhaar
numbers in Tamil Nadu. In the 2019 report, concerns were raised regarding the absence of publicly
accessible data related to the "most conducted surgeries." This raised suspicions that hospitals might
engage in fraudulent activities by conducting surgeries that are financially advantageous for them.
Were dummy numbers employed by hospitals for monetary claims?
Srinivas Kodali suggests that there might be indications of a potential 'fraudulent activity' by private
hospitals within the nationwide public health insurance scheme. The report highlights instances where
₹1.1 crore was disbursed for 403 patients who were supposedly deceased, FIT Quint reported.
“It’s possible that many of the 7.5 lakh people who registered 9999999999 as their number don’t exist
and the hospitals used these dummy numbers to claim money from the government. There are so many
missing hospitals enrolled in the Ayushman Bharat scheme."

23
The report from 2019 also raised concerns about the absence of publicly accessible information
concerning the surgeries that are most frequently conducted. This observation implied the potential for
hospitals to engage in fraudulent practices by prioritizing surgeries that yield financial gains for them.
TOP
SURVEY AND REPORTS
Festive demand surge expected to create 50,000 temp jobs in coming months – Business
Standard – 16th August 2023
As the festive season approaches, the banking, financial services, and insurance (BSFI) sector is
witnessing a significant rise in credit card sales, personal finance, and retail insurance, according to a
report by TeamLease. The BFSI industry is expected to generate around 50,000 temporary jobs in the
second half of 2023 to accommodate the surge in finance-related products. Compared to the previous
year, there is a 15 per cent increase in job opportunities at the start of the festive season (June-July),
indicating the sector's positive outlook and proactive approach to meeting consumer demands. This
increase is due to higher consumer spending and increased economic confidence.
Traditionally, large cities like Delhi, Mumbai, Chennai, and Bangalore dominated the temporary job
market in the BFSI sector. However, over the past two to three years, cities like Kolkata, Pune, and
Ahmedabad have also witnessed many open positions, such as on-the-feet personnel and teleoperators.
This shift in demand is a result of the expansion of e-commerce, retail lending, and insurance services
across the nation, extending job opportunities to places like Ahmedabad, Surat, Nashik, and Kanpur.
Krishnendu Chatterjee, the vice president and business head of BFSI at TeamLease Services, commented
on the situation, stating, "With the surge in credit card transactions, personal finance applications, and
the growth of digital payments in India, we are expecting a vibrant job market in the next 5-6 months."
He added that in the last two months, the team has recorded around 25,000 job openings for temporary
staffing positions. He said, "we anticipate this number to rise further. The BFSI sector has observed a
remarkable 15 per cent increase in temporary workers year-on-year." Alongside the e-commerce
industry, the BFSI sector is actively increasing its hiring efforts to manage higher consumer activity
during the festive period, ensuring smooth operations.
Temporary workers in these roles have experienced a 7-10 per cent growth in earnings compared to the
previous year. Compensation packages for on-the-feet roles vary, with Delhi ranging between 20-22k, 16-
18k in Kolkata, 20-22k in Mumbai, 18-20k in Chennai, and 20-22k in Bengaluru. Similarly, for
teleoperators, salaries range from 16-18k in Delhi, 13-15k in Kolkata, 16-18k in Mumbai, 15-17k in
Chennai, and 16-18k in Bangalore. This upward trend reflects the industry's commitment to rewarding
its employees and meeting the increased demand during the festive shopping season.
Chatterjee further emphasised, "In the lead-up to the festive season, the BFSI sector is actively seeking
skilled and customer-focused individuals to strengthen their workforce." With an optimistic outlook for
the festive season in sectors like E-Commerce, Retail, Consumer Electronics, Automobiles, and
Smartphones, the demand for credit cards, personal loans, and insurance products is expected to rise. As
the BFSI sector gears up to meet this demand, temporary workers can anticipate a promising second half
of 2023.
TOP
70% Indians in rural, semi-rural areas do not have health insurance, says survey – Outlook
– 11th August 2023
Indians still have a long way to go towards healthcare awareness and accessibility to health, at least in
the semi-rural and rural areas of the country, according to the findings of a recent survey. A huge 75 per
cent of the semi-rural and rural population in India do not have access to modern healthcare within their
localities. About 55 per cent of those surveyed said they had never heard of insurance while 70 per cent
said they did not have a health insurance cover.

24
Among those aware of insurance, only 32 per cent said they had opted for insurance at some point, with a
mere 28 per cent possessing health insurance for themselves or their families.
About 23 per cent relied on informal loans or borrowing
to take care of hospital expenses, with 6 per cent saying
they had resorted to selling assets to pay off their medical
bills and a significant 53 per cent claiming they had
utilised some form of savings to cover these expenses.
About 45 per cent of respondents said they travelled
more than 10 kms to avail the services of a doctor,
according to the survey by Pay Nearby.
Titled Bharat Health Index (BHI) 2023, the survey
involved 10,000-plus retailers across semi-rural and
India over a month. According to the respondents, they
spent about 15-20 per cent of their yearly income on
medical expenses. However, there is a growing interest in online medical purchase as well as
telemedicine consultation. About 35 per cent of respondents expressed interest in online medical
purchases, and 32 per cent on telemedicine consultation, the survey said.
According to the survey, the accessibility index saw a major dip as one moved from urban to rural India.
Only about 10 per cent of the rural respondents citing that they had access to healthcare within a 10km
radius. Lack of skilled healthcare providers at the last mile was a major challenge for accessibility, the
survey said.
“Only 15 per cent of respondents confirmed having a doctor’s clinic or healthcare facility within a 5 km
radius. In terms of medical practitioners available, while 25 per cent had access to general physicians in
their area, 92 per cent lacked specialised doctors, such as cardiologists, gynaecologists or paediatricians,
impacting medical care,” the survey said.
“For specialised treatment such as cancer, neurological or blood disorders, 90 per cent needed to travel
to a different location for treatment, 5 per cent reported loss of a loved one due to unavailability of
specialist doctors at the local healthcare facility,” the survey added. The survey also evaluated the
accessibility and convenience of medical stores at the last mile.
“A notable 52 per cent of respondents had a pharmacy within 5 km radius of their residence, making
essential medicines relatively accessible. However, 85 per cent of the respondents had to travel more
than 10 kms to obtain specialised medicines, indicating potential challenges for those with specific
medical needs,” the survey said. Interestingly, only 47 per cent of the respondents said they possessed a
thermometer at home, while only 7 per cent had instruments to check blood pressure and blood sugar.
The survey also emphasised the urgent need for setting up a financial funding mechanism to address the
escalating medical expenses at the last mile.
Reasons For No Insurance
According to the survey, the penetration of financial products, such as insurance would prove crucial in
enhancing healthcare affordability and accessibility. “Among those with insurance, 88 per cent obtained
it from government or state sponsored schemes, while less than 10 per cent obtained it from private
insurance providers,” the survey further said.
According to the survey, about 38 per cent cited affordability as a major hindrance, while 36 per cent
mentioned uncertainty about where to buy insurance, while 24 per cent said they were unaware of the
benefits of insurance.
About 32 per cent identified limited availability of health insurance providers and lack of information as
the primary challenge.

25
This was closely followed by high premiums (28 per cent), complex documentation processes (15 per
cent), limited coverage for specific healthcare needs (18 per cent), and language or literacy barriers (7
per cent), the survey said.
Anand Kumar Bajaj, founder, managing director and CEO, PayNearby said, “Over 70 per cent of India
resides in rural and semi-rural regions. This survey reinforces the urgent need to scale healthcare
services for the masses. More than 80 per cent of doctors, 75 per cent of dispensaries, and 60 per cent of
hospitals are concentrated in urban India, leaving out marginalised population in semi-urban and rural
areas to fend for themselves. While infrastructure scaling takes times, leveraging technology for
distribution breakthroughs is crucial to cater to a wider audience. Reliable tele-consultation platforms
and easy to use online pharmacy modules can greatly contribute.”
TOP
INSURANCE CASES
Wrongful rejection of claim: NCDRC directs united India insurance to pay compensation to
DCW Ltd. – Live Law – 16th August 2023
The NCDRC consisting of Mr. Justice Sudipahluwalia (Presiding Member) and AVM J. Rajendra, AVSM VSM
(Retd.) (Member) allowed the complaint filed by DCW Ltd. (Complainant) against United India Assurance
Co. Ltd. (Insurer) and held it liable for deficiency in service.
The Commission set aside the Maharashtra State Commission’s order which had dismissed the complaint
by the Complainant. It directed the Insurer to pay Rs. 23,09,051/- towards the claim in respect of the
damage to the DG set with simple interest @ 8% per annum within 3 months.
Brief Facts:
The Complainant, a manufacturing company, involved in the production of caustic soda, synthetic rutile,
PVC, etc. bought an Industrial All Risk Policy from the Insurer to protect a Captive Power Plant containing
6 DG sets. During the policy period, DG Set No. 5 experienced an accident causing damage to the DG set
and other equipment. The Complainant informed the Insurer about the damage and engaged Rastek Pvt.
Ltd., an expert, to investigate the cause of the damage which submitted a report with their findings.
Subsequently, the Insurer appointed Shri Anantha Padmanaban, an Authorized Surveyor, to conduct a
survey of the damage. He observed that the Complainant allowed the DG set engine to run for 10 days
with decreasing oil pressure, which indicated gross negligence on its part. As a result, the Complainant
filed an insurance claim for Rs. 54,34,858/-.
However, the Surveyor evaluated the claim at Rs. 35,53,868/-. Based on the reports from the Surveyor
and the Expert, the Insurer rejected the nsurance claim and referred to Clause 2(a) of the insurance
policy excluding claims arising from "any intentional act or intentional negligence on the part of the
insured or anyone acting on their behalf."
Thus, the Complainant filed a Consumer Complaint before the State Commission, claiming Rs.54,34,858/-
with interest @18% p.a. and amount of Rs.5 Lakhs as exemplary damages.
The State Commission dismissed the complaint and held that there is no deficiency in service by the
Insurer and the repudiation of the insurance claim cannot be constructed as an arbitrary one. It
highlighted that no prompt steps were taken by the Complainant to prevent damage to DG set as
observed by the surveyor and the expert evidence.
Contentions of the Insurer:
The Insurer had contended before the State Commission that the insured DG Set was managed
negligently and the Complainant should have promptly shut down the machine when the alarm triggered
to prevent further damage. Further, it argued that the complainant’s argument that the engine couldn't
be abruptly stopped lacked logical reasoning. On the day of the incident, the engine tripped and stopped
at full speed. Therefore, the notion that the engine couldn't be stopped during an emergency doesn't hold.
The Insurer stated that it was indeed possible to transfer the load to other engines and shut down this

26
specific engine well in advance of the failure, especially when the insured had recorded the observed lube
oil pressure drop. This finding was backed by the surveyor and expert, Mr. K Gopalkrishnan.
Observations of the Commission:
The NCDRC allowed the complaint and set aside the order of the Maharashtra State Commission
observing a deficiency in service on the part of the Insurer. It held that the assertion of willful negligence
due to mishandling of the DG Set when the lube oil pressure was below the manual'sspecifications was a
mere presumption. Moreover, there is no documented requirement for specific actions by the
Complainant when the lube oil pressure ranges between 5.5 to 4.8 bar.
Further, the Commission pointed out that apart from the two reports from the same Surveyor, there is no
independent evidence presented to establish negligence bordering on willful negligence as the cause for
the DG set's trip-off and the subsequent damage. Additionally, there is no clear link established between
the alleged delay in switching off the DG set and the resulting damage, and thus the failure of the DG set
was unprecedented for the complainant.
The Commission highlighted that there was no ground or reasonable basis for the rejection of the
Insurance claim since no commission appears on the part of the Complainant.
The Commission, in conclusion, held the Surveyor’s valuation of the liability for the damage caused to the
DG set as Rs.23,09,051/- as reasonable and to be in terms with the insurance contract. It ordered the
Insurer to pay Rs. 23,09,051/- to the Complainant for the damage to the DG set with simple interest @
8% per annum within three months from the date of this order.
Case Title: DCW Ltd. vs. United India Assurance Co. Ltd. & Anr.
Counsel for Complainant: Mr. Vinay Kumar Mishra, Advocate & Ms. Nikita Sharma, Advocate
Counsel for Opposite Parties: Mr. Maibam N. Singh, Advocate
(The writer is Sachika Vij.)
TOP
Accident victim was without helmet, kin lose 30% of relief – The Times of India – 16th
August 2023
Attributing contributory negligence for not wearing a helmet, a Motor Accident Claims Tribunal docked
30 percent, awarding only Rs 1 crore (with interest) compensation instead of Rs 1.4 crore to the widow,
children and mother of a 38-year-old man who died after a truck rammed into his bike at Powai in 2014.
While the tribunal found that the truck driver had driven negligently, it also held that the biker had not
followed the rules. The tribunal said that from the record of scene of the incident, there seems to be no
presence of helmet at the spot. "Also, the panchas (independent witnesses) of inquest did not notice even
a broken helmet around the head of the deceased. All these circumstances are sufficient to infer that he
carried the risk by not following the rules of act and thus, contributed to an accident. It is well settled that
under these circumstances, compensation has to be reduced to the extent of 30 percent," the tribunal
said. The tribunal had calculated the compensation amount to be around Rs 95.2 lakh (without interest).
On January 21, 2015, the family had moved the tribunal against truck owner SR Metal Works and
insurance company The New India Assurance Co Ltd. They sought a compensation of Rs one crore
submitting that victim Satyaprakash was working for a private company and earning a monthly salary of
Rs 50,000. The family submitted that on February 1, 2014, Satyaprakash died in the accident. The truck
driver was booked for causing death by negligence and rash and negligence and rash and negligent
driving. Seeking a dismissal of the claim, the insurance company accused the deceased of contributing to
the accident.
(The writer is Rebecca Samervel.)
TOP

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Insurance Co told to pay medical expenses – The Tribune – 14th August 2023
The District Consumer Disputes Redressal Commission, Yamunanagar, has passed an order directing an
insurance company to pay Rs 24,910 as medical expenses incurred by the complainant on the treatment
of his son.
Passing the order on July 28, 2023, the president of the DCDRC, Gulab Singh, members Geeta Parkash and
Jasvinder Singh asked the company to pay punitive damages of Rs 10,000 for compensating the
complainant in all heads.
The complainant availed a health insurance policy from an insurance company covering self, spouse and
dependent children on payment of a premium of Rs 16,462. The date of commencement of the insurance
policy was from January 12, 2022 to January 11, 2023 and the sum assured was Rs 5 lakh.

PENSION
Inflows from EPFO, new schemes drive passive funds’ asset growth - The Economic Times
(Delhi edition) – 18th August 2023
Passive funds are gradually gaining market share within the mutual fund industry as a jump in
allocations to retirement products, a slew of scheme launches, and lower costs are driving investors to
these schemes. The share of passive assets as a percentage of total assets under management has risen to
16 percent in July 2023 from 6 percent in July 2019, according to a Franklin Templeton Mutual Fund
report. While a large part of this growth has been driven by flows from the Employees’ Provident Fund
Organisation, which allows asset managers to invest in exchange-traded funds (ETFs), industry officials
said several differentiated
product launches have
been in the passive space,
sparking investor interest.
“The number of ideas that
one can generate in the
passive space is unlimited
and differentiated,
compared to the active
space where there are
restrictions due to
categorisation norms,”
said Swarup Mohanty,
chief executive officer of
Mirae Asset Mutual Fund.
Following the capital
market regulator
Securities and Exchange Board of India’s rules on the categorisation of mutual fund schemes in late 2017,
asset managers have faced restrictions on scheme launches in the active fund space. For instance, a fund
house can operate only one product in each category. Once the fund houses launch the schemes in these
actively managed categories, they turned to thematic and passive funds where there are no such
restrictions on scheme launches. A rise in the number of demat accounts is also leading to higher demand
for ETFs.
Over the past three years, there have been a series of launches in the passive space such as Nifty 50
Manufacturing ETF, Nifty 200 Momentum 30 Fund, Nifty Midcap 150 Index Fund, Nifty Microcap 250
Index Fund, Digital ETF, Auto ETF, Silver ETF, Global Electric & Autonomous Vehicles ETF, ELSS Tax
Saver Fund, Pharma ETF, Private Bank ETF, Nifty Midcap 50 Index Fund, S&P BSE Low Volatility Fund,
S&P BSE Enhanced Value ETF, S&P BSE Financials ex-Bank 30 Index Fund and S&P BSE Quality Index
Fund among others. “As the investor base expands, many of them need simple products that are easy to

28
understand, which is driving demand for passives,” said Anand Vardarajan, business head at Tata Mutual
Fund. Passive funds are low-cost products that mimic an index. While financial planners recommend
firsttime investors to use simple passive funds like the Nifty ETF, Bharat Bond ETF and Gold ETF for their
portfolios, savvier investors place bets on microcap funds, low volatility funds and thematic funds based
on their understanding of the markets to make returns.
(The writer is Prashant Mahesh.)
TOP
PFRDA integrates NPS statement with CAS – The Hindu Business Line – 13th August 2023
Pension regulator PFRDA in coordination with capital market regulator SEBI has enabled the NPS
subscribers to view their pension fund corpus along with their demat securities and MF holdings under a
single consolidated account statement (CAS). This functionality that will benefit over 1.35 crore NPS
subscribers, is expected to provide a simplified and secured way to stay informed on NPS investments
through CAS.
Currently, CAS, which is provided by National Securities Depository Ltd and Central Depository Services
Ltd, offers a consolidated view of personal investments in the securities market with updated mark-to-
market values.
Till date, nearly 50,000 NPS subscribers have already evinced interest and provided their consent to avail
the facility of viewing their NPS corpus under CAS, sources said.
Comprehensive record
This latest move of PFRDA to integrate the NPS Statement of Transaction (SoT) with CAS is in sync with
the Centre’s vision to create a comprehensive record of every individual’s financial assets.
Currently, the NPS SoT is shared on an annual basis either physically or through email and it can also be
viewed online in the Central Record Keeping Agency (CRA) login.
Also Read: NPS assets grow by 27% to ₹9.92-lakh crore in one year
Now, PFRDA has enabled CRAs to integrate with depositories, registered with SEBI to provide NPS
subscribers with the option to include NPS transactions in CAS.
Consent basis
The facility to include NPS SoT in CAS will be available to NPS subscribers on consent basis, said a PFRDA
circular.
If the subscriber wishes to opt for the inclusion, the consent can be provided on the respective website of
CRAs, it added.

Pension assets have been growing at robust pace in recent years with Compounded Annual Growth Rate
(CAGR) of over 20 per cent. The assets under management of NPS and APY in aggregate have now
touched ₹ 9.92-lakh crore.
Benefits
Having a CAS has several benefits including simplified record keeping, enhanced safety and timely
information.
CAS eliminates the need to maintain separate statements for different investments by summarising the
details into one comprehensive statement.
This reduces paperwork and provides a consolidated view of all investments at one one place, making it
easier to manage and track the same.
(The writer is KR Srivats.)
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 GLOBAL NEWS
Singapore: Survey highlights customer demand for personalised insurance plans – Asia
Insurance Review
The majority of consumers polled in Capco's 2023 survey of insurance policyholders in Singapore want
more personalised insurance, notably in the case of long-term savings products (76% of policyholders),
life insurance (74%) and health insurance (73%). This and other findings in the survey highlight a clear
opportunity for insurers to innovate to deliver products and services that are more precisely tailored to
customer needs and expectations. In addition, an overwhelming majority (90%) of the 1,000 Singapore
policyholders polled in the survey are willing to share additional personal data with insurers for a range
of benefits. Enhancing the claims process was the leading motivating factor cited (49%), followed by
cheaper premiums (46%) and more personalised services (45%).
While customers largely prefer to purchase insurance through traditional channels such as agents, many
are open to sharing additional data to get a more personalised product or offering. Forty-three percent
will consider sharing this data through wireless wearables, such as smart watches. The same percentage
would consider doing so via a fitness test and 38% via a smart device in their home. Capco's Singapore
survey polled a representative sample of policyholders between the ages of 18 and 65 years to capture
consumer attitudes to insurance and insurers, including preferred purchasing channels, decision drivers,
their views on the claims process and insurance apps, and their appetite for personalisation and sharing
personal data.
Mr Lance Levy, CEO of Capco, said, "The future of insurance products will be increasingly tailored to each
individual customer's needs, with insurers using dynamic pricing among other methods to guide
customers to the right product, at the right time and place, with the right premium. The insurers who can
most successfully integrate data and technological tools to complement their business strategy will be the
ones that stay ahead of the competition." Ms Erienne Wong, managing principal at Capco Singapore, said,
"The volume of data potentially available to insurers has grown exponentially. While they recognise the
importance of being data-led, customer-centric and tech-focused organisations, they have yet to master
translating data at speed into impactful insights and actions. With the right data and technology
capabilities in place, insurers can rapidly create more innovative and personalized products to help them
better compete."
Major findings
Other key findings in Capco's Singapore report include:
When purchasing insurance, the two most important decision factors are affordable premiums (51%)
and value for money (45%). Trust in the brand (37%) and the ability of an offer to meet the customer's
needs (37%) are also key considerations. Most respondents (64%) prefer to purchase their insurance
through representatives and agents.
Smaller percentages prefer using third parties (23%) such as non-tied agents or purchasing insurance by
themselves (13%). The vast majority (81%) of respondents who have made a claim are satisfied with
their experience. Among those respondents who identify as 'less than satisfied,' the top issues are slow
insurer responses, slow payouts and too much paperwork.
Three-quarters (76%) of insurance app users are positive about their app experience. Almost a quarter
(23%) say it is 'very good', and just over half (53%) describe the experience as 'good.' However, a further
quarter of respondents (24%) described the experience as merely 'satisfactory' (23%) or poor (1%),
with complaints about a lack of user-friendliness or that apps are slow and unresponsive.
A range of additional app features, including booking an appointment with a doctor (32%) and health
information resources (32%), are of interest to Singapore app users. Heart rate monitoring (29%),
nutrition tracking and analysis (28%), sleep tracking (28%), and mental health coaching (27%) are also
of interest. Older adults (55-65 years old) are more likely than young adults (18-34 years old) to want
heart rate monitoring (36% versus 25%).

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Capco's 2023 Singapore insurance survey can be downloaded here. Capco, a part of the Bengaluru-
headquartered multinational corporation Wipro, is a global technology and management consultancy
specialising in driving digital transformation in the financial services industry.
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Philippines: Insurance penetration stays low despite higher premiums - Asia Insurance
Review
The Insurance Commission (IC) has expressed optimism that the country's insurance density and
penetration would improve on the back of financial literacy programmes and digitalisation. IC
Commissioner Mr Reynaldo A Regalado, in his keynote speech at the first Life Insurance Convention
Philippines in Cebu City last week, said that while total assets, net worth, invested assets and premiums
increased based on figures collated by the Insurance Commission as of the first quarter of 2023, the
insurance density and insurance penetration remained low.
The country’s insurance density in 1Q2023 stood at PHP872.56 ($15.32) while the insurance penetration
rate was 1.75%, reported the newspaper, Manila Standard. However, referring to 1Q2023, he added, “I
am optimistic that our efforts are bearing fruit, especially as total premiums collected by life insurance
companies from their new business has increased to PHP15.47bn, or by 18.16% year-on-year.” “To
further promote financial inclusion, the Insurance Commission has also introduced digitalisation
programs such as the online submission and approval of new insurance products and is set to release the
regulatory guidelines on Islamic insurance within the year.”
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COI Training Programs
More Details / help for enrollment mail at college_insurance@iii.org.in

Training Programs at COI Mumbai

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Start Date Date Link
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CT Mumbai
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Teams in Insurance - CT Mumbai
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Excellence in Insurance Technical
- Non Life
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Presentation Skills
6 Mega Risk Insurance 11-Sep-23 12-Sep-23 ClickHere Register
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Management in Life Insurance
Companies
8 Marketing Strategies for creating 12-Sep-23 12-Sep-23 ClickHere Register
a captive Market - CT Mumbai
9 Liability Insurance Focus - 14-Sep-23 15-Sep-23 ClickHere Register
Financial Lines - CT Mumbai
10 Personal Financial Planning and 14-Sep-23 15-Sep-23 ClickHere Register
Life Insurance

31
 11 Customer Service and Claims 21-Sep-23 21-Sep-23 ClickHere Register
Management
12 Industrial Risk Inspection- 25-Sep-23 26-Sep-23 ClickHere Register
Methods & Reporting - CT
Mumbai
13 Social Media Marketing-Tools 26-Sep-23 26-Sep-23 ClickHere Register
and Techniques for Insurers - CT
Mumbai
14 Health Insurance Underwriting - 29-Sep-23 29-Sep-23 ClickHere Register
CVT Mumbai

Training Programs at COI Kolkata

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Start Date Date Link
1 Managing Cyber Risk & 05-Sep-23 06-Sep-23 ClickHere Register
Insurance - CT Kolkata
2 Managing Cyber Risk & 05-Sep-23 06-Sep-23 ClickHere Register
Insurance - CVT Kolkata
3 Managing Project & Engineering 25-Sep-23 27-Sep-23 ClickHere Register
Insurance - Underwriting and
Claims - CT-Kolkata
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Insurance - Underwriting and
Claims - CVT-Kolkata

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