LIC to seek review of new Irda norms

Kumud Das, Sitanshu Swain
Posted: Tuesday, Aug 26, 2008 at 0155 hrs IST
Updated: Tuesday, Aug 26, 2008 at 0155 hrs IST

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Mumbai, Aug 25: Life Insurance, India’s largest private sector insurance company, said the new norms have given higher investment flexibility while focusing on better risk management. “This will potentially translate into higher risk adjusted returns for policyholders,’’ he said. The new guidelines will increase the private sector life insurers’ flexibility to invest in initial public offerings further.

On whether the new norms will allow more investments in the stock market, Nanda said: “Not necessarily. The extent of stock investments depends on various factors like customer goals and preference, horizon, risk appetite, product structure and investment strategy of the company.”

Ironically, only recently, the government eased the norms for investments in equity by non-government provident funds, allowing equity investments up to 15%....

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» Norms ar enot cleared yet

Posted by Rahul on 2009-09-18 11:12:57.339469+05:30
As all These charges are Gouing to implement from 1st of october.the norms are not cleared that how insurance advisor will adjust their commission in this parameter as this industry is totaly dependent on advisory module .will implimetation of charges will effect directly on business generation.

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» LIC-IRDA

Posted by Shyam.P.Kunte on 2008-08-26 09:11:41.093896+05:30
Life Insurance business with current IRDA norms are only beneficial to Private Insurance companies as the funds collected as premiums carry no under written gurantee to policy holders and is wholly available to them to spend on commissions,so called motivational programme and a free will to invest with no worry on its return.In today`s schenerio,the policy holders get benefits only when the mortality strikes during policy period and otherwise not.I appeal to IRDA and Insurance companies to design Insurance plans (No ULIPS) of endowment nature with assured and guranteed maturity value as In India the life business should be seen as a Long term Savings plan with protection as it is a country with no social security alms like (IRDA copying) western countries.It is high time IRDA realises this to stop foreign insurance companies loot monies of poor Indians.JaiHind.

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