Insurance sector Current Affairs

Enter Your Email Address To Subscribe Current Affairs Daily Digest, Daily Quiz and other updates on Current Affairs:

CCEA approves listing of five general insurance PSUs at the stock exchanges

The Cabinet Committee on Economic Affairs (CCEA) has given its ‘in principle’ approval for listing the five Public Sector General Insurance Companies (2016-17) owned General Insurance Companies in the stock exchanges.

They are New India Assurance Company Ltd, United India Insurance Company Ltd, Oriental Insurance Company Ltd, National Insurance Company Ltd and General Insurance Corporation of India.

The shareholding of these PSGICs will be divested from 100% to 75% in one or more tranches over a period of time as per Securities and Exchange Board of India (SEBI) and Development Authority of India (IRDAI) rules and regulations.

Significance of listing of PSGICs
  • Bring transparency and equity in the companies functioning as listing on the stock exchange necessitates compliance requirements of SEBI.
  • Improve corporate governance and risk management practices leading to improved efficiency. It will lead to greater focus on growth and earnings.
  • Open the way for the companies to raise resources from the capital market to meet their fund requirements to expand their businesses, instead of being dependent on the Government for capital infusion.
  • Divestment in these companies will help government in raising resources and portion of the funds can be used by the company for expansion.
Background

The Union Finance Minister in his 2016-17 Budget speech had announced that public shareholding in Government-owned companies is a means of ensuring higher levels of transparency and accountability. In order to promote this objective, the general insurance companies owned by the Government will be listed on the stock exchanges.

Tags:

India’s first Nuclear Suppliers’ Insurance Policy unveiled by INIP

India’s first Nuclear Suppliers’ insurance policy for ‘Right to Recourse’ was unveiled by India Nuclear Insurance Pool (INIP).

The policy was unveiled by Atomic Energy Commission (AEC) chairman Sekhar Basu in Mumbai, Maharashtra.

INIP is the 27th global nuclear insurance pool which was launched by state run General Insurance Corporation of India (GIC Re), in association with non-life insurance companies.

New India Assurance Co (NIAC) and INIP will issue the policy and administer the claims on behalf of the pool.  Earlier NIAC had issued a policy for the operators of nuclear power plants under INIP by underwriting premium to the tune of Rs 100 crore.

What is India Nuclear Insurance Pool (INIP)?

  • Indian Nuclear Insurance Pool (INIP) of 1,500 crore rupees was launched as per the mandatory provision under the Civil Liability for Nuclear Damage Act (CLND), 2010.
  • The pool provides capacity for insurance coverage to operators and suppliers for any nuclear liability towards third party.
  • INIP also will offer policies on the nuclear operators liability insurance policy and a nuclear suppliers’ special contingency (against right to recourse) insurance policy.
  • It will also address third-party liability insurance and later expand into property and other hot zone i.e. inside reactor areas risk. At present, it only covers cold zones (outside reactor areas).
  • It will also provide the risk transfer mechanism to the operators and suppliers to meet their obligations under the CLND Act, 2010.

Tags:

Union Cabinet gives nod to MoU between IRDAI and Insurance Authority of UAE

The Union Cabinet has given its ex-post facto approval for the Memorandum of Understanding (MoU) between Insurance Regulatory and Development Authority of India (IRDAI) and the Insurance Authority of United Arab Emirates.

Decision in this regard was taken by the Union Cabinet meeting chaired by the Prime Minister  Narendra Modi in New Delhi. The MoU was signed in February, 2016.

The MoU provides for

  • Enhanced cooperation between the two authorities in the field of insurance supervision.
  • It will provide a framework for co-operation such as channels of communication.
  • Increase mutual understanding through the exchange of regulatory and relevant supervisory information.
  • It will also include confidential information to enforce or ensure compliance with their respective laws and regulations.

Tags:

Advertisement

12