Tides of 19.11.2015
1. Around
17,000 employees of the Reserve Bank of India (RBI) will be on “mass casual
leave” on November 19 to demand improvement in pensions and to protest against
the Union Government’s move to dilute the central bank’s autonomy. The strike
in the form of mass leave is the first in over six years and threatens to
disrupt settlement activities and the bond and foreign-exchange markets. A
walkout staged by RBI employees in 2009 hampered bond trading and agency
reports suggest that investors have been informed to be prepared about a
similar possible disruption. However, according to a source, the RBI is trying
to ensure that the public is not inconvenienced and will try to run the RTGS
facility.
2.
In a rare
intervention, the finance ministry has asked the insurance regulator to
reconsider its order directing SBI Life to pay Rs. 84.31 crore to its group
insurance members/ beneficiaries.In June 2008, the Insurance Regulatory and
Development Authority (IRDA), during an onsite inspection at SBI Life, found
that the company had paid Rs. 204.71 crore to 14 ‘Master Policyholders’ in
contravention of its regulations. The master policyholders, in this case, were
the banks that sold SBI Life’s home loan product. In 2011, the regulator
had levied a fine of Rs. 70 lakh on SBI Life, reserving its rights to take
further action in the matter. SBI Life paid the penalty. Later, in 2012,
the regulator ordered the life insurer to distribute Rs. 84.31 crore to
members/beneficiaries of the respective group insurance policies. Following
this order, SBI Life appealed to the regulator, which rejected the petition.
SBI Life then filed an appeal with the Finance Ministry, which heard both
parties in February this year.
3. Private
sector insurer Shriram Life Insurance aims to increase its branch network
across India by opening about 30 branches by the end of this fiscal year.The
network expansion is likely to boost new business revenues by 30 per cent from
about Rs. 500 crore last fiscal year to around Rs. 650 crore this year.The company had sold over 1.9
lakh policies last year, which it expects to cross 2.5 lakh by the current
fiscal year.“We cater to the bottom of the pyramid. And that’s where we expect
the maximum growth to come. We provide insurance to truck customers and gold
loan customers. Our average premium is one of the lowest at Rs. 12,000 per annum,” said Manoj Kumar Jain, CEO &
whole time director, Shriram Life Insurance Company Ltd.In Gujarat, the company
has tied up with SEWA Bank n Gujarat to offer Pradhan Mantri Jeevan Jyoti
Yojana to cater to the rural population and provide cheap life insurance.“In a
tie-up with SEWA Bank, we have sold more than 5,000 policies across Gujarat.
The average premium for these customers is just Rs. 360,”
he said.Jain added that the company will open four more branches in Gujarat
during this fiscal year to increase its presence from the existing 28 branches
in the state.