Aadhaar card must be voluntary, says Supreme Court

In the middle of a working day, SM Rehman, a daily wage earner, is at the ration card office in Delhi's Ambedkar Nagar, trying to get a new ration card made for his family of six. His biggest stumbling block isn't the form but an Aadhaar card. Under the Delhi government's food security scheme, an Aadhaar card is required to get a new smart card for ration.

"I took me 15 days to get my Aadhaar card made, but I'm the only one who has an Aadhaar card in my family," he tells us. The new ration card, will entitle his family to subsidised food under the government's ambitious food security scheme. But the long processes have him worried. "I have already spent 30 days of work for 3 kilos of ration."

Mr Rehman is not alone. Some residents of Sarita Vihar we met at the ration office told us the mantra was simple: no Aadhaar, no ration card. Laxmi said, "They won't accept forms here without an Aadhaar number. Even if you have to add the names of children, they need to have Aadhaar cards too."

The Delhi government has maintained that the registration for Aadhar or the unique identification number (UID) is voluntary. But by linking the Aadhaar to the ration card has virtually made enrolling for the UID mandatory.

Now the government's ambitious unique identity project comes with a word of caution from the Supreme Court. While hearing a petition on its distribution among illegal immigrants, the top court said getting an Aadhaar card must be voluntary and not mandatory.

The Supreme Court which is examining the validity of the Aadhar scheme has passed an interim order today saying no citizen should suffer for want of Aadhaar cards and Aadhaar cards should not be issued to illegal migrants.

After the Supreme Court order the Delhi government told NDTV it will study the top court's decision before revisiting its plan although it feels the Aadhaar has already covered 99 per cent of the population and is being used more as a tool of convenience.
 Source : http://www.ndtv.com/article/india/aadhaar-card-must-be-voluntary-says-supreme-court-422675

Soon, apply for passport from your phone

Soon there will be a smart way to apply for passports. The ministry of external affairs is in the final stages of launching an app that will allow people to apply and pay the fees for passports on their mobile phones.
The new app will be an upgraded version of mPassport Seva that is available for Android, iOS and Windows Phone platforms. mPassport Seva currently allows users to find general information, locate nearest passport centre and police station, calculate fees and track the status of applications. More features like provision to file application and pay fees will be added to it.

"The facility to help applicants fill passports and make payment through the app should be available in one to one-and-a-half months," said Golok Kumar Simli, principal consultant and head (technology), ministry of external affairs. Applicants will be able to log in, file the application and track its status but will have to carry hard copies of the documents required to the passport seva kendra after an ARN number is generated and an appointment fixed, he said. Citing security concerns, he, however, refused to explain how the app will work.
Simli said it was being developed by Tata Consultancy Services which will hand it over to MEA. The development team, comprising 30-40 people, is simultaneously working on other MEA projects. It is part of the Passport Seva Project, which is executed by consular, passport and visa (CPV) division of MEA, and aims at providing passport services to everyone in a speedy and transparent manner.
Applicants appeared elated about the plan. "Presently, even getting an online appointment is a struggle. With the new app, more people will begin applying and I don't think the system will have network issues."
A top official at the regional passport office in the city said they had received a communication about the technical wing working on the new app. "It remains to be seen whether there will be issues on connectivity and network," he said.

Source : http://articles.timesofindia.indiatimes.com/2013-10-08/software-services/42828093_1_passport-seva-project-new-app-mpassport-seva

Cheaper term cover may not be the best deal

You should look at the death claims denial ratio and mortality tables of companies before selecting an insurance policy.

You must have read a number of times that it’s best to buy a term-insurance policy early in life to avail of cheaper premium rates.
However, cheaper rates should not drive your decision to choose a particular policy as you may not always get the best deal.
The primary reason for buying a term cover should be to take adequate insurance, which should be done through a reliable company.
Term insurance is a pure risk cover taken for a specific period of time. It pays benefits to the nominees of the insured only if the insured dies within that specific period.
If he/she lives beyond that period, no benefits are payable. The premiums on term insurance are much affordable but rise as the person ages.
There are a few things an individual needs to look into before buying a term cover. As the person’s age increases, his/her family responsibilities widen.
The accompanying table shows how premiums keep increasing if the term cover is not bought at a right age, which is when the individual starts earning.
“For individuals who are financially independent with no liabilities, a cover at least 10 times of their annual income could be adequate. But with increasing obligations and assets, he needs to analyse and accordingly take a cover,” says Harsh Roongta, CEO, Apnapaisa.com.
Buying it online:
Buying an insurance policy is definitely cheaper as the agent commissions and distribution costs are almost negligible.
However, if a person buys a product online, it’s his responsibility to initiate the entire process and see that claim settlement is not too tedious for his family on his death. Because on settling the claim, there is no intermediary between the insured and the company, which one may find difficult to track.
Though in term cover, the online settlement of claims should be an easy process, it may still be strenuous as the family has to do all the documentation.
On the other hand, the agent is usually very alert and keeps a track of the slightest change that is required in the policy.
“Since insurance is a push-product, unless an agent explains the product in depth, it is never bought by the customer. Policy servicing and claim settlement are also better managed by an agent, who updates your policy regularly. Thus it’s difficult for insurance to sell online.” says GV Nageswara Rao, managing director  & chief executive officer, IDBI Federal Life Insurance Co Ltd.
Also, the policy needs to be kept updated regularly. For example, job change requires the policy to be updated, because if your premiums are auto-debit from your salary account and you forget to intimidate your insurer about your new salary account, then in such a case the policy may lapse and you will have to start a new policy all together.
Some people don’t mind paying the agent commissions as long as their policy is getting regularly serviced, rather than getting their policy lapsed for such minor reasons. One has to be very alert about his policy if taken online.
“Buying an insurance policy online is 10-15% cheaper than the offline rates, because of various factors like cut in agent commissions, rent & office expenses.” says Elizabeth Venkataraman, CMO of Kotak Mahindra Old Mutual Life Insurance.
Secondly, one has to be an internet savvy as it requires one to pay premiums and complete all the formalities.
Also the paperwork is not reduced as you are still expected to submit the required documents Insurance companies usually send their agents to collect the documents, but not all may provide an agent who could assist you for your medical tests.
Death claim repudiation ratio: 
One can get this information on the Insurance Regulatory & Development Authority website. The denial claim ratio tells us the percentage of claims settled by a company. But one cannot take a negative view about companies based on the ratio. At times, it’s also the customer who does not disclose all the information related to his ailments to avoid higher premiums. In such cases, the company may refuse to pay claims on death for not disclosing information about his health.
But across the industry, the insurance companies have to pay claims even if the person has not disclosed certain ailments but has completed two years of buying the policy.
Also, insurance should be bought from a company which has a good brand name and reputation.
For example, there is a difference of Rs4,000 in premiums of Met Life which is an online product against State Bank of India which makes lowest premiums available through their agents.
 “Met Life has a denial claim percentage of 25% whereas SBI has it close to 5%. This means Met Life has managed to settle death claims of up to 75% whereas SBI has done it close to 95%. Only Birla Sun Life, LIC, ICICI Prudential Life Insurance, HDFC Life and SBI Life have claims ratios close to 5%,” said Roongta.
For example, LIC’s term plan might look very expensive but it holds a very good claims denial ratio, which should be of utmost importance to the buyer.
Mortality:
The term-cover premium may vary from company to company also because the main reason being its mortality rate risk. Mortality rate is the number of deaths occurred in a specified age group and time period.
For example, Birla Sun Life offers Rs50 lakh cover for an annual premium of Rs11,650, whereas Reliance Life Insurance offers the same cover at Rs19,652.
“The difference in mortality rate is because every company has a different set of customer profiles and many companies don’t even update their old figures regularly. This can also be a reason why LIC has the most expensive term plan in the market.” says Suresh Sadagopan, who runs Ladder 7 Financial Advisories.
The life expectancy is higher in high income groups as they have access to good healthcare solutions.
Thus, the mortality rate and risks associated with their lives is lesser, resulting in lower premiums against the companies have higher mortality rates.
In case of term covers, the premiums charged are inclusive of the mortality rates and are not shown separately as they are shown in unit-linked insurance products.

Source : http://www.dnaindia.com/money/1502355/report-cheaper-term-cover-may-not-be-the-best-deal

LIC asks IRDA for deadline extension

Life Insurance of India (LIC) has said it has asked the regulator for extending the deadline for withdrawing existing products that do not meet the new norms from October 1.

“We are awaiting approval from the Insurance Regulatory and Development Authority (IRDA). We have made this request in case approvals are not with us. I am sure that IRDA is going to take a call on this and take a decision, which is in the larger interest of investors,” LIC Chairman S K Roy told reporters here on the sidelines of an event organised by Ramakrishna Mission.

According to the regulator, all the existing group products have to be aligned with the new rules before June 30, while individual products have time till September-end.

The new guideline for traditional life insurance will have products with more benefits for policyholders, improve transparency and curb mis-selling of the traditional products.

Under this, IRDA has capped commissions, and provided for minimum sum assured and guaranteed surrender value on traditional products sold by life insurers.

Talking about LIC’s product line Roy said, “Looking at what we are trying to do is that whatever products we have in the bouquet today, we want to have similar products in the restructured versions also. That is our product strategy at this moment. We are planning to file everything that is required to be filed. We are hopeful that IRDA will take a call on this matter.”

Going forward, he said the business growth is healthy and the company is expecting a good growth. “Business outlook is good. July and August have shown good growth. September business so far has also been very good. Overall, we are showing a healthy growth in the business,” he added.

The current quarter has seen growth in the business, but it is difficult to assume the impact of whatever changes have been brought in the restructured products by the regulator at this stage, Roy said.

“Unless the products are rolled out in the market and the distribution arm works on those products, it is difficult to predict the impact of the changes,” he said adding, “However, I am confident that our products will be well accepted by customers.”

Source : http://www.thehindubusinessline.com/industry-and-economy/banking/new-norms-lic-asks-irda-for-deadline-extension/article5182267.ece

Exide looking to sell stake in insurance arm

Exide looks at equity partner for ING Vysya Life Insurance after the exit of ING Group earlier this year.

Industrial battery maker Exide Industries Ltd is looking to bring in an equity partner in its insurance firm, ING Vysya Life Insurance Co. Ltd, following the sale of the ING Group’s interests in all Asian insurance ventures earlier this year.

The insurer is now wholly owned by Exide, after it bought in March the combined 50% stake of its three partners. ING, a Dutch financial services group, held 26% in the firm. The insurer is now looking to issue new shares to expand its capital base for growth, said P.K. Kataky, Exide’s chief executive officer and managing director.

Exide does not intend to sell its own stake immediately though it will get diluted due to the share sale by the insurer, he added.

Source : http://www.livemint.com/Companies/1v7IBcP3skZzczuY3V8dZK/Exide-looking-to-sell-stake-in-insurance-arm.html

ING set to exit Indian insurance business

ING Insurance International, the Dutch major, is all set to exit the Indian insurance market.

ING Insurance International, the Dutch major, is all set to exit the Indian insurance market.
The company holds 26% stake in ING Vysya Life Insurance Company.
“ING is definitely looking at exiting, it’s just a matter of time. They are at the moment concentrating on selling the rest of Asia business. Once that’s taken care of, ING will exit from India too,” five sources familiar with the development separately said.
An ING Vysya spokesperson refused to comment saying “it is business as usual at ING”.
One reason for putting the India exit on the backburner is that some issues are left to be ironed out.
For instance, ING Vysya Bank is seeking a bancassurance partnership for distributing insurance products even after the exit of the foreign partner.
“The bank wants to negotiate this with the foreign partners who are lined up for the stake sale ,” said an industry source, requesting anonymity.
“Even Exide wants to exit. And this will lead to greater trouble as they will have to seek both a domestic partner and a foreign partner or go for a merger,” this person said.
Battery major Exide Industries is the largest shareholder in the company with 50% stake.
An Exide spokesperson refused to comment, and another company source said an exit is not being contemplated.
ING has decided to sell off its insurance and asset management business by 2013 as part of a global restructuring plan.
The move will help the company to pay back $7 billion that it received from European Union in 2008. During that financial crisis, the company received $14.6 billion through a bailout plan.
According to Insurance Regulatory Development Authority data, ING Life collected premium of Rs48.79 crore for January this year. In February and March, the mop-ups were Rs62.55 crore and Rs116.96 crore, respectively. The ‘tax-saving’ month, indeed, provided a lot of cheer.
But like all life insurers, business went over a cliff with the start of the new fiscal in April and the premium collection stood at Rs14.09 crore. A major chunk of the business came from individual single and non-single premium collections.

Source : http://www.dnaindia.com/money/1706262/report-ing-set-to-exit-indian-insurance-business

DLF bids adieu to insurance, sells 74% stake in DLF Pramerica

 India’s largest realty firm DLF will exit from life insurance business by selling 74 percent stake in its joint venture DLF Pramerica Life Insurance to Dewan Housing Finance, reportedly for over Rs 350 crore. DLF had in 2007 announced entry into the life insurance business through a joint venture with US insurance giant Prudential Financial’s arm. The joint venture, where the Indian realty firm held 74 percent in the joint venture and the rest was owned by Prudential International Insurance 26 per cent, had reported a combined loss of over Rs 250 crore during past two fiscals.

 A man walks past a DLF billboard in Mumbai. Reuters “…the company today signed definitive agreements to sell its 74 percent stake in the life insurance joint venture DLF Pramerica Life Insurance…to Dewan Housing Finance and its group entities,” DLF said in a filing to BSE. Neither of the companies, however, disclosed the value of the deal but sources said it could be worth Rs 350-400 crore.

 “These agreements are subject to regulatory approvals. The transaction consideration shall be disclosed post receipt of all such approvals,” it said. “This transaction is in line with our ongoing strategy to divest non-core businesses or assets. We have had a very cordial relationship with Prudential and wish them the best in their new partnership with DHFL,” DLF Group CFO Ashok Tyagi said in a statement. During 2012-13, the company had earned first premium income of Rs 138.64 crore, a 35 percent increase over Rs 102.83 crore in the previous fiscal. At the end of 2012-13, the joint venture completed about four-and-a-half years of operations and had 55 branches in India and a team of 5,487 individual agents.

Read more at: http://www.firstpost.com/investing/dlf-bids-adieu-to-insurance-sells-74-stake-in-dlf-pramerica-986981.html?utm_source=ref_article