Mumbai

The company had signed a definitive agreement to sell a 26 per cent stake in Reliance Life Insurance to Nippon Life Insurance for Rs 3,062 crore earlier this year. The deal was subject to regulatory approvals.

The Insurance Regulatory Development Authority (IRDA) has already granted in-principle approval for the proposed stake sale. Following RBI clearance for the deal, IRDA will now grant final approval for completion of the transaction, Reliance Capital said in a filing to the Bombay Stock Exchange.

Commenting on the development, Reliance Capital CEO Sam Ghosh said, “We are delighted to receive the RBI approval, bringing us closer to concluding this transaction very shortly.”

“This is great news as we move closer to completing the transaction,” Nippon Life Insurance President Yoshinobu Tsutsui said.

This transaction pegs the total valuation of Reliance Life Insurance at around Rs 11,500 crore.

Nippon Life is a 122-year-old Global Fortune 100 company and the seventh largest life insurer in the world. It is a leading private life insurer in Asia and Japan.

R-Cap figures among the country’s top-four private sector financial services and banking groups in terms of net worth.

“I say it will be very shortly, that could be a week or ten days,” Financial Services Secretary DK Mittal told a select group of reporters here over the weekend. Mittal blamed the delay on the long process to be followed while selecting such a candidate.

Life Insurance Corporation (LIC) has been without a full time chairman since May, after the then chairman TS Vijayan’s five-year term had ended.

As an interim arrangement, Additional Secretary in the Finance Ministry Rakesh Singh was appointed as chairman of LIC and subsequently D K Mehrotra, the incumbent managing director was asked to officiate as the chairman of the country’s largest financial institution.

A selection panel, headed by Economic Affairs Secretary R Gopalan, had invited four probable candidates in June. But the panel could not decide as two of the contenders did not have Central vigilance clearance.

When asked about the names being discussed, Mittal said, “that’s for the selection committee to decide. What I am saying is that this process is on and very shortly you will get a final (decision).”

According to earlier reports, the shortlisted candidates -all from within the LIC ranks–include current acting chairman DK Mehrotra, managing director Thomas Mathew, and three executive directors– AK Sahoo, TT Mathew and KB Saha.

Several questions have been raised about the government’s inability to find a full-time leadership at LIC, which has assets exceeding Rs 10 trillion, especially at a time when it faces competition from over 23 aggressive private players since the opening up of the sector a decade ago.

Sourced By: The Financial Express

The various types of life insurance policies available make policy selection to address protection needs alone or savings a daunting task. Moreover, there are policies that exist to address the different financial risks that one is exposed to during life’s different stages. All this makes the case for one to have an insurance portfolio that addresses different needs at different times. For instance, a single person most often has no financial dependents and has little financial risks compared with a married man with children or a couple with financially dependent parents. Likewise, someone in their 50s, who has taken care of his financial commitments, will be looking forward to his life in retirement and lower insurance cover.

There is a kind of life insurance policy that focuses only on covering financial risk, protecting one’s financial dependents in case of contingencies. Term insurance is a low-cost, high-value insurance cover where one is insured only against the risk of death. It also ensures that one is always adequately insured. Term plans are also useful when anyone takes on additional financial liabilities such as a loan to fund a house for a long period of time. In such circumstances, the term plan acts as a hedge against life’s uncertainties, providing insurance cover equivalent to the loan amount and not impact the insured’s dependents were he to die during the loan repayment tenure. Youngsters and those with high insurance needs, should always look at term plans in their insurance portfolio. Whole life policies are another variant that provides an opportunity for risk cover throughout one’s life and helps in building cash value as a legacy.

There are also insurance plans that address savings and growth by going beyond death cover. These policies also ensure that the insured achieves his financial goals. Return-linked plans have a savings component besides protection, which is of great value to the policyholder in the long run. For example, return-linked policies are of immense help to achieve long-term financial goals, such as funding higher education needs of children that are 15-18 years away or building a retirement corpus, which is 25-30 years away. In return-linked plans, one makes periodic premium payments over several years. These policies benefit from averaging gain from the power of compounding and ride over various market cycles making them an ideal tool for long-term wealth creation. Such policies also offer choices of investments across equity and debt, enabling the policyholder to match the savings plan that best meets his risk profile.

We live in an era of extreme unpredictability, coupled with changing lifestyle, owing to economic growth. Such development makes insurance needs dynamic and one should review and reassess one’s insurance needs every time there is a significant change in lifestyle and finances. Doing so will ensure that one can maintain the same standard of living in the future and also ensure that dependents do not have to make any financial compromises in the future. The flexibility offered by insurance policies addresses the need for risk cover as well as returns for every stage in life.

Source: Financial Chronicle

A brief Detail about the plan:

Reliance Life Insurance Guaranteed Money Back Plan
(get the dual benefit of protection and returns)

Reliance Life Insurance Guaranteed Money Back Plan is a Non-linked, Non- participating money back plan with an inbuilt accidental death benefit and waiver of premium benefit on death of the life assured. This plan helps you plan for the financial obligations required at various upcoming events in your life.

A sputtering US economy and headwinds from a European debt crisis could crimp foreign portfolio investments, while a sharp fall in the rupee will accelerate inflation pressures, traders said.

The selloff picked up pace after European stocks tumbled nearly 4 per cent, with export-driven software services exporters such as Infosys , energy major Reliance Industries and banks among the big losers. “We are mimicking what is happening globally. Our markets will remain weak unless there is some recovery (in Europe),” Sailav Kaji, director of institutional equities at Padmakshi
Financial Services, said.

The 30-share BSE index fell 4.13 per cent, or 704 points, to 16,361.15, its lowest close in nearly one month. It was the biggest one-day per centage fall since July 6, 2009 with all of its components dropping.

World stocks as measured by MSCI fell more than 2.4 per cent to a new year low, making for a 14 per cent year-to-date loss.

The more volatile emerging markets stock index was down nearly 5 per cent for a 22 per cent 2011 loss.

The stocks slide sent the rupee skidding to its weakest in more than 26 months and triggered concerns about more pressure on inflation that has been running at more than 9 per cent for months.

“We are net importers of crude and rupee-fall will bring in imported-inflation as all our crude imports are in dollar terms,” Kaji said.

The Reserve Bank of India had raised rates last week for the 12th time in 18 months and warned fighting stubbornly high inflation remained its priority even as economic growth was slowing.

Shares in Reliance Industries , which has the maxim um weight on the main index, fell 6.1 per cent in their biggest one-day fall since June 2009, after media reports the oil ministry may lower the company’s cost recovery at its key gas blocks off India’s east coast.

A company spokesman declined to comment when contacted by Reuters.

Earlier this month, India’s federal auditor had criticised the energy major and the government over development of natural gas field in the Krishna Godavari basin and called for revamping profit sharing arrangements from oil and gas blocks.

Software services bellwether Infosys shed 3.4 per cent and bigger rival Tata Consultancy Services dropped 4.7 per cent.

Sourced by- The Economic Times

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The country will contribute 10% of total global premium growth in this period and be one of the few major markets to grow at double digit rates, said The Associated Chambers of Commerce and Industry of India (Assocham).

The life insurance industry grew by 28% during 2000 and 2010 in new business premiums, 27% in annualised premium equivalent (APE) and 25% in gross written premiums, catapulting India to top ten markets globally.

“But the level of protection as measured by sum assured to GDP is about 55% relative to benchmarks in developed markets of 150% to 250%,“ said secretary general D.S. Rawat.

The relentless focus on growing new business premiums has led to several inefficiencies in business practices, he said. Creation of short-term products, incentivisation of front-line managers and agents primarily on new business and limited profiling of customer needs resulted in low levels of profitability.

Between September 2010 and March this year, the industry registered negative growth of 13% in APE. In the private sector, the negative growth was even higher at 32%. In the first quarter of 2011-12, the slowdown continued with the industry registering negative APE growth of 23% and private sector registering negative APE growth of close to 40%.

Going forward, the focus of industry will broaden beyond growth to include two important aspects which has been largely ignored in the past ��” providing long-term savings and protection to consumers, and driving profitability in the core life insurance business through sustainable business models.

Mr Rawat said the market is likely to witness continued regulatory action in line with trends which are being seen among regulators across the world. Secondly, the Indian consumer is evolving rapidly.

“Consumers are increasingly becoming multi-channel. Studies show over 80% of consumers across Asia use more than one channel across the purchase and usage process especially for buying insurance products.“

With India on the cusp of a digital revolution, mobile and internet driven transactions are estimated to grow three to four times over the next five years. So the paradigm for success is likely to change, driven by discontinuities in regulation, customer behaviour and technology adoption.

Emerging winners will have to redefine their business models with careful consideration to strategic issues around agency, bancassurance, innovation, geographic footprint and value of existing customer franchise.

Reliance Life Insurance offers Best Insurance and Investment plan to save Tax u/s 80C

We offer in all kinds of Insurance and Investment product for Tax Saving, Future Planning, Social security and Insurance protection for you and of your Valuable things i.e Car Insurance, Home Insurance, Factory Insurance, Marine Insurance, Mediclaim Insurance etc.

Get in touch or give us an opportunity to give you best services and unbeatable advise to invest your Hard Earned Money.

Deepak Bansal

MBA Finance

(M) 9312408068

In India, ever since the insurance industry has opened up, opportunities for insurance companies have become limitless. To tap this opportunity, they require insurance agents because agents are one of the most significant modes of bringing in much-needed business to the company.

At Reliance Life Insurance, you will not merely be an insurance agent—you will be a Financial Advisor. You will have an important role to play because you have to give valuable advice to prospective customers about their financial planning.

Opportunities for Reliance Advisors

• Make a good profit without a heavy investment.
• Enjoy the benefit of residual income.
• Maintain flexible work hours.
• Earn attractive commissions.
• Participate in exciting recognition programs.
• Associate with Reliance – One of the strongest brands of the country.
• Capitalize on the growing Insurance market.
• Become a full time sales manager.

Ulips provide both protection and savings combined with flexibility to investors. These are equity-linked, and have the potential to deliver higher returns.

A Ulip investor has the flexibility to switch funds, determine the amount of investment and withdraw funds partially or systematically. Ulips also provide the convenience of pliable insurance cover, which can be increased or decreased at any time. However, a Ulip policyholder needs to be more involved as the investment risk rests with him.

On the other hand, traditional insurance plans — which include term, endowment and whole-life policies — offer multiple benefits in terms of risk cover, return and safety. These are considered risk-free, as they provide fixed returns in case of death or on maturity. Investment guidelines also ensure safety of funds with a cap on equity investment.

Traditional participating plans are the most popular category of traditional life insurance products. Though they are popular in Indian market for many decades now, there is still lack of understanding about them.

Participating plans provide the policyholder 90 per cent share of surplus whereas 10 per cent is the share of the life insurer. This sharing mechanism aligns the intent of both the policyholder and the life insurer, as high investment surplus will drive higher returns for both parties. In participating plans, investments are primarily in debt instruments, as such returns do not have the volatility generally associated with equity-linked plans.

Traditional participating plans are truly protection-oriented financial instruments, as they have a strong sum assured orientation and consistent returns.

The biggest advantage of a traditional plan is that it is less prone to mis-selling as a large component of the returns is guaranteed. Bonus history also gives ample clarity on the possibility of future returns. Unlike equity-linked products, which go through cycles of volatility, returns are smoothened here.

Which product to choose?

After understanding Ulips and traditional plans, it is important to understand the criteria for choosing between the two. The choice largely depends on the profile and goal of the investor. The investor’s risk-taking ability, age, income or return expectation are crucial factors. A young investor may be more aggressive and opt for Ulips, whereas an older person in the same income bracket may choose an endowment policy for stability.

Source: Financial Chronicle

We offer in all kinds of Insurance and Investment product for Tax Saving, Future Planning, Social security and Insurance protection for you and of your Valuable things i.e Car Insurance, Home Insurance, Factory Insurance, Marine Insurance, Mediclaim Insurance etc.

Get in touch or give us an opportunity to give you best services and unbeatable advise to invest your Hard Earned Money.

Deepak Bansal

MBA Finance

(M) 9312408068

www.bigrupya.com