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									                                                ASEAN DIGEST
         Volume: 1                                         Issue No.1                     Year: 2010 

         Inside this issue:                                   
     ⇒ International          Insurance News
     ⇒ Domestic          Insurance News
     ⇒ Insurance          Legal Corner
     ⇒ Insurance          Business Statistics
     ⇒ Poem

     ⇒ Perspective

                                                          The Haitian presidential palace stands in ruins on January 12, 2010
                                                          in Port-au-Prince after a huge earthquake measuring 7.0 rocked the
                                                          impoverished Caribbean nation of Haiti at 2153 GMT , toppling
                                                          buildings and causing widespread damage and panic, officials and
                                                          AFP witnesses said. (LISANDRO SUERO/Getty Images)

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                            INTERNATIONAL INSURANCE NEWS

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                        INTERNATIONAL INSURANCE NEWS


Singapore's Nanyang Technological University (NTU) has set up a research institute to help governments and companies in the
region better prepare and insure themselves against natural disasters like typhoons, tsunamis and earthquakes as well as non-
traditional risks like infectious diseases and terrorism.
                                                                                               Asia Insurance Review, Jan’10
                                      SNOW HITS SOUTH KOREAN INSURERS
South Korea's motor insurers are bracing themselves for higher claims because of a growing number of car accidents in unusually
harsh weather this winter, reports the JoongAng Daily. A preliminary assessment by local auto insurers indicates that they will face
the worst business margins in years because of skyrocketing insurance claims.
                                                                                                 Asia Insurance Review, Jan’10
                                   IN VIETNAM
Life insurers in Vietnam are planning to set up fund management companies, but are proceeding slowly on these plans as they wait
for the right timing, reports Vietnam Net Bridge. "Every life insurance company wants to set up investment fund management
companies of their own, because this is a model popular all over the world. However, we don't think that we should set up such a
company right now," said the General Director of a life insurance company. He says that his company is looking for a suitable time
to do so, and this could come in one or two years.
                                                                                                 Asia Insurance Review, Jan’10


                                   IN 2010
Taiwan's life insurance industry is expected to rake in first-year premiums exceeding NT$1 trillion (US$31.2 billion) this year, after
posting first-year premium revenues of NT$925.1 billion last year, reports the Taiwan Economic News. Overall, the island's life
insurers reported record premium revenue of NT$2.006 trillion in 2009 on the back of significant increases in sales of traditional
products and annuities.
                                                                                                   Asia Insurance Review, Jan’10
                                   AIG COULD REFUSE SALE OF TAIWAN UNIT
US insurance group AIG could refuse to sell its Taiwanese subsidiary, Nan Shan Life Insurance, to China Strategic and Primus
Financial if the Taiwanese government fails to grant its approval of the proposed sale of the Taiwanese insurer to the two
Hongkong-based companies, reports Taiwan News citing Nan Shan Life's CEO, Mr. Chen Run-lin.
                                                                                             Asia Insurance Review, Jan’10
Taiwanese education authorities have unveiled a new campus accident insurance scheme to kick off next month for schools under
the umbrella of the Education Ministry, according to the China Post newspaper.
                                                                                             Asia Insurance Review, Jan’10
                       SAUDI ARABIA: TAWUNIYA POSTS $27 MLN PROFITS IN 4Q09
Tawuniya posted profits of SAR101.5 million (US$27 million) for the three months ended December 2009, reversing a net loss of
SAR34.6 million for the corresponding period in 2008. Having been exposed to December's Jeddah floods, the results had fallen
slightly short of the company's expectations. Chief Executive Ali Al Subaihin had said in October that he expected earnings in the
fourth quarter to at least match the SAR125.6 million it made in the third quarter of 2009.
                                                                                                  Asia Insurance Review, Jan’10
                                     UAE: NOOR TAKAFUL AND SIB SIGN PACT
Noor Takaful has signed an agreement with Sharjah Islamic Bank (SIB) to have its motor takaful coverage offered to SIB customers
through the bank's 23 branches. As per the terms of the agreement, SIB customers will be able to avail themselves of motor
insurance from Noor Takaful at competitive rates compared to those available in the market from other insurance companies.
                                                                                                  Asia Insurance Review, Jan’10
The Gulf Bond and Sukuk Association (GBSA) has been launched as a new independent membership body devoted to the
development of fixed income markets across the Gulf Cooperation Council (GCC). Unveiled in Dubai on Monday, it will provide a
forum for local bond market and sukuk issuers and investors and will carry out its work in conjunction with local governments,
regulators, corporations, banks and asset managers. It will champion efforts to deepen and widen regional capital markets by
promoting international best practice, contribute to the development of legislation and regulation, raise professional standards, and
facilitate further training and professional education.
                                                                                                     Asia Insurance Review, Jan’10


                      7CHINA'S INSURANCE PREMIUMS INCREASE BY 13.8% IN 2009
The Chinese insurance watchdog, CIRC has announced that the country's insurers wrote policies involving premiums totaling 1.11
trillion Yuan (US$161 billion) in 2009, up 13.8% year-on-year. This is the first time that the figure has crossed the trillion-Yuan mark.
Life insurance companies generated premiums amounting to 826.15 billion Yuan, representing an increase of 10.9% on an annual
basis, the regulator says. Property insurance premiums totaled 287.58 billion Yuan, a rise of 23.1% year-on-year.
                                                                                                        Asia Insurance Review, Jan’10
China's insurance industry realized investment income of 214.17 billion Yuan (US$31.4 billion) in 2009, achieving an investment
return rate of 6.41%, which represented a 4.5 percentage point increase over the previous year, according to CIRC. The regulator
says said that during the year, insurers' investment portfolios and asset management had improved. Investment income generated
from fixed assets totaled 102.95 billion Yuan, accounting for 48.1%, while income generated from equities was 103.58 billion Yuan,
accounting for 48.4% of the total. This shows that the income structure of the industry is "balanced," says CIRC.
                                                                                                     Asia Insurance Review, Jan’10


                               DOMESTIC INSURANCE NEWS
                                 INSURANCE FOR CORD BLOOD SAMPLES?

PathCare Labs Pvt. Ltd, which has become the fifth company in the country to start cord blood bank, is engaged in talks with a few
health insurance companies to explore the possibility of insuring the samples saved in the bank. “They, in turn, need to take up the
issue with Insurance Regulatory and Development Authority to evolve relevant guidelines,” Dr G.V. Prasad, Managing Director and
Chief Executive Officer of PathCare, said. Addressing a press conference here on Thursday, Dr G.V. Prasad, Managing Director
and Chief Executive Officer of PathCare, said the company had roped in 600 franchisees across the country to collect samples.
                                                                                         Hyderabad, The Business Line 28.12.09

Reinsurance rates in the Indian market could rise when they come up for renewal in April even though the rates in the international
market have softened. The reason — general insurance companies are staring at huge claims arising from the inferno that engulfed
IOC's storage depot in Jaipur and the Kota bridge collapse. Besides, these companies continue to underwrite business at huge
discounts, say industry players. While international insurance renewal takes place on January 1, in India, the renewals happen only
in April.
                                                                                            Mumbai, The Business Line 27.12.09

Bajaj Allianz General Insurance Company sees huge potential for its credit insurance business. “In the current economic context,
credit insurance is becoming important for all players including small and medium enterprises (SMEs). We will focus on all sectors
including textiles which have been hit by the economic slowdown,'' Mr. Sumit Dutt, Vice-President, (Credit Insurance), Bajaj Allianz,.
                                                                                         Hyderabad, The Business Line 26.12.09

                                               ENSURING HEALTH COVER
BPL families daily wage workers engaged in a paddy field near Palakkad in Kerala. The State Government proposes to bring 22
lakh families under the BPL (below poverty line) norms of the Planning Commission to join the Centre's Rashtriya Swasthya Bima
Yojana (RSBY). The project ensures health insurance coverage of up to Rs 30,000 a year for the poor through a smart card-based
                                                                                                   The Business Line 25.12.09

                                        INSURANCE FIELD WORKERS' PLEA
The All-India General Insurance Field Workers' Association (AIGIFWA) has appealed to the management of public sector general
insurance companies to advocate the cause of reducing performance-linked salary component for Development Officers.
Addressing a meeting here recently, the Secretary General of AIGIFWA, Mr. S Vasudevan, said, “We have appealed to the General
Insurers Public Sector Association (GIPSA) to talk to the Centre about removing the non-core components of the Development
Officers' salary from the performance-based structure.” Non-core components currently constitute nearly 30 per cent of these
officers' salary, he added. The inclusion of non-core components in the incentive structure coupled with a drastic reduction in
general insurance premium rates after the de-tariffing of rates in 2007 had made it difficult for Development Officers to maintain a
stable salary, Mr. Vasudevan said.
                                                                                                           Business Line 25.12.09

The Insurance Regulatory and Development Authority (IRDA) today came out with guidelines on combining a pure term plan and a
health policy. The policy will be called a 'Health plus Life Combi Product'. Under the guidelines, life and non-life insurance
companies can come together to offer this health-plus-life cover. Health insurance under this scheme will provide sickness benefits,
medical, surgical or hospital expenses benefits, whether in-patient or out-patient, on an indemnity or reimbursement basis and the
life insurer will offer a pure term product. The regulator said the product could be offered both to individuals and groups.
                                                                                                Mumbai, Business Standard 24.12.09

                                   JAPANESE INSURERS EYE INDIAN MARKET
Some of the top Japanese insurance players such as Mitsui Sumitomo are exploring opportunities to enter the Indian insurance
sector. The enthusiasm to set shop in India has gone up among Japanese and Korean companies, post the government’s proposal
to lift the FDI cap in the insurance sector from 26 per cent to 49 per cent. Post the crisis, India and China are among the fastest
growing insurance markets. Although China is a bigger market, India’s distribution system is more evolved, say experts.
                                                                                                           The Economic Time 24.12.09

Reliance Life Insurance has entered into an association with the makers of '3 Idiots', as per which the insurance firm will use the
thought 'All is Well' -- one of the mainstay theme of the film -- to promote its products. "'All is well' is a brand promise. It is a way of
saying that if someone has our policy, his financial needs in the various milestones of his life would be covered by our plans,"
Reliance Capital Chief Marketing Officer Sanjay Jain said.
                                                                                                              The Times of India 24.12.09

                              MINIMUM INVESTMENT, TENURE FOR ULIPS TO RISE
The minimum ticket size and the tenure for unit-linked insurance plans (ULIPS) are set to be higher from the New Year. SBI Life
has increased the minimum ticket size from Rs 6,000 to Rs 12,000. Likewise, Star Union Daiichi Life Insurance has increased the
minimum premium from Rs 12,000 to Rs 18,000. Similarly, the minimum tenure has gone up to 10 years. Similarly, Aegon Religare
Life Insurance has increased the minimum premium from Rs 12,000 to Rs 15,000, and has increase the term to 10 years from five
                                                                                                    Business Standard 23.12.09

                              LIC, CENTRAL BANK OFFER TO BUY RATE FUTURES
Life Insurance Corporation of India (LIC) and Central Bank of India have offered to support transactions in the interest rates futures
(IRF) market by buying securities from various market participants, the National Stock Exchange announced. Analysts have been
complaining that current regulations are skewed in favour of the sellers of futures, thus putting buyers at a disadvantage. The
support from LIC and Central Bank is aimed at plugging this deficit. The two state-owned entities have committed to purchase
securities from members who wish to liquidate the securities received as a part of their IRF obligations, the NSE release said.
                                                                                           Mumbai, The Economic Times 22.12.09

Undeterred by the premature end to its life insurance joint venture with Indiabulls Financial Services Ltd, French banking giant
Societe Generale is still buoyant on the opportunities in the sector and plans to develop a fresh strategy. “The Indian life insurance
market is now the tenth largest in the world with significant growth perspective and therefore, remains attractive for Societe
Generale Insurance,” Sandra Martyres, chief operating officer, Societe Generale India, said. “Societe Generale Insurance will
devise a fresh strategy to enter the insurance business in India, consistent with its goals and views on the success factors required
in this market. It will continue to closely monitor market opportunities,” Martyres said.
                                                                                                        Business Standard 22.12.09

                                             ICICI Pru launches new ULIP plan
ICICI Prudential Life Insurance has launched a ULIP plan called ICICI Pru Life Time Maxima, which follows two different portfolio,
strategies — fixed and trigger portfolio. The first strategy provides an option for you to choose from any of the seven funds —
Opportunities Fund, Blue-chip Fund, Multi-Cap Growth Fund, Multi-Cap Balanced Fund, Income Fund, and Return Guarantee Fund.
But the company bets on the trigger portfolio strategy to generate good returns in volatile market conditions.
                                                                                               New Delhi, Business Line 22.12.098

2009 was a year in which regulators ushered in quite a few changes and proposed as many, for the insurance industry. The most
notable changes were the ones that had policyholder interests in mind — a cap on the expenses of the popular unit-linked
insurance plans and allowing life insurers to sell products online. Apart from regulations which have already passed into law, there
are others in the proposal stage — such as the Swarup Committee recommendations and the Direct Taxes Code — which may
have far reaching implications for players.
                                                                                                            Business Line 22.12.09

                                           The road less taken in life insurance
THE life insurance industry was liberalised in 1999 and the first set of new companies was granted licences in the third quarter of
2000. The potential of life insurance in the country attracted competitive global giants and, strangely enough, unlike most other
markets, all international life insurance companies that have set foot in the Indian market — in collaboration with Indian partners, of
course — are among the Top 30 in the world. The outcome of the current situation has made industry managers sit up. Incidentally,
it may be noted that the pain of decline in the growth of the industry has been felt equally by the independent distribution networks.
The forward-looking stance is to visualise new strategic approaches, which will put the companies on firmer-footing of sustained
growth and profitability
                                                                                                       The Economic Times 19.12.09

Schools and colleges have become the new hunting ground for non-life insurers, eager to push personal accident (PA) policies, a
segment which has traditionally seen low claims. Tata AIG General Insurance, which is the market leader in personal accident
covers, eyes 200 per cent growth in income from this segment. It has tied up with a number of education consultants for its Prudent
Guard policy for students. “There is a need to create awareness about the product. We are sending teams to schools and colleges,
but most of the time it is intermediaries who bring in business,” said Tata AIG General Insurance Chief Executive officer Gaurav
Garg. Insurers sell two types of personal accident cover to schools- one for students and another for parents. Some insurers also
sell hybrid product covering both. “We have seen schools increasingly taking this cover. Since students are more prone to
accidents, they should be insured. We would like students’ personal accident cover to contribute 25 per cent of the PA income,
which is at less than 5 per cent now,” said Sanjay Dutta, ICICI Lombard head of health..
                                                                                           Mumbai, Business Standard 17.12.09

Bajaj Allianz Life Insurance, one of the leading private life insurance companies, expects to collect Rs 10-12 crore premium in its
Berhampur division from its new Unit-Linked Insurance Policy named Max Gain. The policy which opens on December 15 is valid till
December 31.“We hope to collect a premium of Rs 10-12 crore in the Berhampur division from the Max Gain policy. The new policy
will help us to achieve our premium collection target for 2009-10”, Pravash Ranjan Mishra, senior divisional manager (Berhampur
division), Bajaj Allianz Life Insurance. Bajaj Allianz has set a premium collection target of Rs 325 crore in Orissa in the current
                                                                                                      Business Standard 17.12.09

The Insurance Regulatory & Development Authority (IRDA) is expected to allow banks to sell insurance products of more than one
company, allowing banks to retail insurance products and not just be distributors for one insurer. A panel, set up by the insurance
sector watchdog to look into bancassurance, is giving final touches to its report, an IRDA official told.
                                                                                                        The Economic Times 17.12.09

                                            Insurers take cover in rural India
Consumer goods makers are not the only ones making a beeline for India’s villages. The country’s 23 life insurance companies and
the 21 general insurance firms are experimenting and innovating in terms of product development, pricing policy and the delivery
channels to grab a larger pie of the under-penetrated rural India after sales began to plateau in cities and towns. “There is an
increasing realisation that the needs of the rural India and urban poor aren’t much different from the urban middle class whom the
insurers are catering to,” said TR Ramchandra, CEO of Aviva Life insurance. Insurance companies, which used to service these
segments just to comply with IRDA norms, seem to have realised the potential of rural India. According to a Max New York Life-
NCAER survey, only 19% of the country’s rural households have life insurance cover, compared with the figure of 38% for urban
                                                                                                     The Economic Times 16.12.09

                                 SBI GETS FINAL NOD FOR NON-LIFE VENTURE
Public lender State Bank of India (SBI) received final approval for its general insurance subsidiary from the regulator IRDA. State
Bank of India has formed a joint venture with Australia-based Insurance Australia Group (IAG) to form SBI General Insurance. The
R3 approval (final approval required for starting an insurance company) was given to SBI today, IRDA said. With this, the total
number of general insurers registered with IRDA has gone up to 22.
                                                                                          Mumbai, The Economic Times 15.12.09

In a bid to conserve capital, private sector general insurers have shifted business focus from top line to bottom line. The shift was
apparent from the figures released by the Insurance Regulatory and Development Authority. Three private sector insurance majors
showed negative growth for the first seven months of the current financial year. ICICI-Lombard General Insurance posted negative
growth of 14.57 per cent on a year-on-year basis; Bajaj Allianz General Insurance posted -11.83 per cent and Tata AIG -5.97 per
cent. The refocus partly stems from the ongoing negotiations for treaty renewals for reinsurance. There are already signs of
hardening of stances by the large reinsurers — Munich Re, Swiss Re, Hannover Re and the national reinsurer, General Insurance
Corporation of India.
                                                                                               Bangalore, Business Line 15.12.09

                                     INSURANCE, PENSION BILLS FACE DELAY
Fierce protests from the Trinamool force Sonia Gandhi to ask her managers not to proceed with the land Bill. Fearing protests from
key allies, the Congress leadership may finally decide against bringing three contentious Bills during the current Winter Session of
Parliament. These are the Insurance Laws (Amendment) Bill, the Pension Fund Regulatory and Development Authority (PFRDA)
Bill and the Land Acquisition (amendment) Bill. While the Insurance Bill is already pending in Parliament, the two other have to be
introduced afresh in the House. The Winter Session will continue till December 21 and there are five more working days left in this
                                                                                          New Delhi, Business Standard 15.12.09

Most private players see a decline in premium income. The slowdown has taken a toll on life insurance companies, which have
taken their foot off the growth accelerator to keep costs under check. During the first half of the current financial year, the 22
licensed life insurers hired 91,000 agents, less than half their total hiring of 200,000 in the corresponding period last year, data with
the Life Insurance Council showed. The entry into new centres also slowed as these companies opened 86 branches in the first six
months of 2009-10 as against 1,806 in the corresponding period last year. This is the result of a slowdown in sales. While the
industry saw a 12.85 per cent increase in premium income from new policies, the rise was the result of a higher mop-up by Life
Insurance Corporation of India. Other major players such as ICICI Prudential, Reliance Life and Bajaj Allianz saw a decline in first
premium income.
                                                                                                 Mumbai, Business Standard 15.12.09

India First Life Insurance has received regulatory approval to launch three products and expects to commence its operations by the
month-end, a senior official said. India First Life Insurance is a three-way joint venture between two public-sector lenders--Bank of
Baroda and Andhra Bank, and the UK-based company Legal and General (L&G). "We have received approval for all the three ULIP
products--savings, children and retirement plans, applied to IRDA. We are now planning to begin our operations by end-this month,"
India First Life Insurance Chief Executive Officer, P Nandagopal, told today.
                                                                                             Mumbai, The Economic Times 15.12.09
Consumers may get the freedom to change their health insurance provider by next April, according to new guidelines being
prepared by the industry in tandem with the sector regulator. “We are working on the norms for portability,” said M Ramadoss, CMD
of New India Assurance, the country’s largest general insurer. He is party to the discussions and said the final draft will be
submitted to the Insurance Regulatory and Development Authority (IRDA). Under the existing regulations, if a consumer is
dissatisfied with a service provider he will have to buy a new policy from the firm of his choice.
                                                                                          New Delhi, The Economic Times 15.12.09

                                      China Life may help in pre-IPO placement
Reliance Life is in talks with Chinese insurance giant China Life for a pre-initial public offer (IPO) placement. The Anil Dhirubhai
Ambani group company is also in discussions with a private equity player for a total placement of 15 per cent stake. The private
insurer has been contemplating public offer for over six months now and is awaiting a government waiver to allow the IPO. ‘We
would bring in a private equity firm after that,” he said.Ghosh, however, said the company has not entered into any discussions with
any insurance firm for pre-IPO placements, as the process would start only after the IPO guidelines were in place..
                                                                                              Mumbai, Business Standard 14.12.09

The Delhi high court last week dismissed the appeal of ICICI Lombard General Insurance Company against the award of Rs 34.5
lakh to the dependents of a government employee who was crushed to death by a truck while riding the pillion of bike. Upholding
the award of the motor accident claims tribunal, it ruled that future income could also be taken into account while arriving at a just
and fair amount of compensation. At the time of the death of this government employee, the Sixth Pay Commission had just
become effective. Therefore, the compensation should be according to the new pay scale, the court ruled.
                                                                                                       Business Standard 14.12.09

After agents and banks, insurers are looking at other channels such as post offices, kirana stores and even malls to sell policies.
For instance, ICICI Prudential Life Insurance has tied up with 22 post office circles in the country for distribution of insurance
policies in the next couple of months. “Through this partnership, we would have a pan India presence,” says Anup Rau, senior vice-
president and head of sales, ICICI Prudential. Rau refuses to disclose the business expected to be generated from the post office
route, saying “it’s still early days. We are bullish about this mode as it provides last mile reach and addresses the accessibility
                                                                                             Chennai, The Times of India 14.12.09

Aegon Religare Life Insurance is planning to enter the health insurance segment. The company, which had launched its pension
plan in January, is looking to bring out a health insurance product sometime later this year, said Mr. Rajiv Jamkhedkar, Chief
Executive Officer, Aegon Religare Life Insurance. The company currently has products in the pension and child space.
                                                                                               Mumbai, Business Line 12.12.09

                            IT WON’T COST MUCH TO LIVE LIFE ON YOUR ‘TERMS’
When was the last time your insurance agent sold a term plan to you? It’s not a very popular policy among agents, as their
commission in absolute terms is low because of the low-premium. Just as agents have their self interests in mind while selling, you
need to make your own decision about your insurance needs, which are unique to your family.
                                                                                                  The Economic Times 11.12.09

Future Generali Life Insurance Company is working towards garnering new business premium of Rs 750 crore by March 2010. For
the current financial year, it has collected new business premium of Rs 210 crore in life business, as against its first-year collection
of Rs 155 crore, said Mr. Anup Seth, Head- Mall assurance Channel, Future Generali India.
                                                                                                 Chennai, Business Line 11.12.09


                                INSURANCE LEGAL CORNER
                           HC: ACCIDENT VICTIMS TO GET CLAIMS IN 4 MONTHS
In a step that is likely to reduce the wait for compensation by accident victims or their kin, the Delhi High Court (HC) directed the
police and insurance companies to implement the Claims Tribunal Agreed Procedure under which road accident victims will get
compensation within four months of an accident. The scheme will be set in motion from January on a trial basis. ‘‘It has been
agreed by the Delhi police that the Claims Tribunal Agreed Procedure will be implemented from January 15, 2010, and will
tentatively remain in force till July 14, 2010,’’ Justice JR Midha observed while hearing a suo moto case on delays in compensating
victims. The court was hearing an accident claim case in which the victim’s family had been struggling to get compensation for
several years. The HC then laid out the timeframe, saying within 48 hours of an accident it will be the duty of the local police to
inform the MACT court about it. Similarly, insurance companies will also get 30 days time to decide on the amount to be awarded to
victims or to contest the claims, with the MACT courts now expected to wrap up a claims case within 120 days. Expressing concern
over the struggle of accident victims for compensation, the court approved the committee’s suggestion that the Delhi police will
provide the accident information report within 30 days to the insurance company. The court also approved the suggestion that the
city police will produce the victim or his family members, the driver and the owner of the vehicle involved in the accident, besides
the information report before the tribunal within a month. Approving the suggestion that the insurance company deposit the
compensation with the tribunal after assessing the amount, the court said the insurance company would depute an officer to deal
with the case till its disposal.
                                                                                                         The Times of India 22.12.09

                         UNSAFE SEX LEADS TO PARALYSIS, COSTS $200K CLAIM
Unprotected sex led to paralysis and cost a Canadian man his $200,000 medical insurance claim. Throwing out his hefty medical
claim, the Canadian Supreme Court said unprotected sex that leads to disabling diseases is not an “accident” entitling the victim to
insurance benefits. Randolph Gibbens, a former high-pressure water blaster in Vancouver, contracted genital herpes in 2003 after
unprotected sex with three women. The herpes virus later attacked his spine and paralyzed him from his abdomen down. He filed
the hefty insurance claim against the Co-operators Life Insurance Company, saying that his paralysis was an unnatural accident.
When the insurance company moved the lower provincial court in Vancouver against his claim, the court sided with the man, saying
that his paralysis was indeed an unnatural outcome of having unprotected sex. In its ruling, the lower court also said that though the
man’s sexual behaviour was foolish, it didn’t amount to “inordinate risk”. Later, a court of appeal also favoured the man, forcing the
insurance firm to move the apex court. Delivering its unanimous verdict, the apex court said on Friday the man’s paralysis was not
an accident, quashing his $200,000 health insurance claim. Granting Gibbens the insurance claim would “stretch the boundaries of
an accident policy beyond the snapping point”, the Supreme Court said. “In the case of Mr. Gibbens we are dealing with a disease
transmitted in the ordinary course of having sex,” the court added. As per the court definition, unprotected sex leading to
diseases thus doesn't remain an accident entitling the victim to health insurance benefits in Canada.
                                                                                                          The Times of India 20.12.09

                                   INSURER TO PAY RS 50L TO DISABLED GIRL
It was a accident that left her a paraplegic for life. She was just 11 years old in 1993, when her life lost the assurance it holds for
children. Now 16 years later, the Bombay high court has finally helped ease some of her misery and after pulling up the insurers,
directed New India Assurance Company to pay her compensation which with interest amounts to almost Rs 50 lakh. The high court
bench of Justices Sharad Bobde and S J Kathawala dismissed as withdrawn an appeal filed by the company challenging an order
of the Motor Accident Claims Tribunal. And, in response to an appeal filed by accident victim, Shweta Mehta, seeking an enhanced
compensation from New India Assurance, the HC castigated the company for its "miserly" attitude and directed it to pay her the Rs
21.23 lakh that the tribunal had ordered in 2007 along with interest. "Pay the difference in amount already paid out of Rs 21.23 lakh
at the rate of 12% from date of filing the petition till December 2002 and then at 7.5% between 2003 to 2006 and then again at the
rate of 10% between January 2007 till the final amount is paid up." The entire amount the company has to pay her is Rs 49.48 lakh,
and it must be paid in ways specified by the court within four weeks. The court said some money meant for her "inevitable
expenses" and for the "loss of fulltime income" will be placed as fixed deposit in nationalised banks so that only she can access it.

The court had earlier given the insurance company an earful after New India offered Rs 5 lakh more only for the victim. Mehta had
sought an enhanced compensation of Rs 91 lakh.
                                                                                           Mumbai, The Times of India 15.12.09

The Supreme Court has ruled that relatives of a pillion rider or other gratuitous passengers in a vehicle involved in road accidents
are not entitled to third party insurance claims. In this case, the victim Ramulu was riding pillion in a scooter belonging to Yadi
Reddy in Hyderabad city on October 8, 1996. The vehicle at that time was being driven by Mohd Yasin. Ramulu's widow, son and
father filed a claim petition for compensation of Rs three lakh, but the Motor Accidents Claims Tribunal rejected the plea on the
reasoning that the pillion rider's claimants were not entitled to any claim as the insurance policy only covered third parties. However,
the Andhra Pradesh High Court on an appeal took a contrary view and directed the United Insurance Company to pay the
compensation following which the insurer filed an appeal in the apex court. Upholding the insurance company's appeal, the apex
court citing its earlier ruling in the Asha Rani and a number of other cases said a pillion rider or other gratuitous passengers
travelling in a goods vehicle are not covered under third party insurance claims. As such the claimants in the present case are not
entitled to compensation, the apex court bench of Arijit Pasayat and Mukundakam Sharma observed.
                                                                                              New Delhi, The Times of India 14.12.09



      IRDA Journal, Jan’10


                                                Alley Cat Love Song
Dana Gioia

Come into the garden, Fred,
For the neighborhood tabby is gone.
Come into the garden, Fred.
I have nothing but my flea collar on,
And the scent of catnip has gone to my head.
I'll wait by the screen door till dawn.

The fireflies court in the sweetgum tree.
The nightjar calls from the pine,
And she seems to say in her rhapsody,
"Oh, mustard-brown Fred, be mine!"
The full moon lights my whiskers afire,
And the fur goes erect on my spine.

I hear the frogs in the muddy lake
Croaking from shore to shore.
They've one swift season to soothe their ache.
In autumn they sing no more.
So ignore me now, and you'll hear my meow
As I scratch all night at the door.

                                                                                                       Library of Congress, London


Key lessons learned from the financial crisis are essential to reinforcing insurance supervision in both developed and emerging
markets while promoting financial inclusion and access to insurance globally.
                                                                                                            Mr. Peter Braumuller
                                                                                                IAIS Executive Committee Chair

Better governance per se does not guarantee that there will never be a crisis, but it can minimise its probability and its impact if it
does occur.
                                                                                                              Mr. Heng Swee Keat
                                                                          Managing Director, Monetary Authority of Singapore

Data sharing is a very important prerequisite for insurers to keep adverse selection at bay and also to fight the evil of moral hazard.
                                                                                                                   Mr. J. Hari Narayan
                                                                      Chairman, Insurance Regulatory & Development Authority


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