Insurance sector Current Affairs

Government launches Sampoorna Bima Gram Yojana

The Union Government has launched Sampoorna Bima Gram (SBG) Yojana and expanded coverage of Postal Life Insurance (PLI) in a bid to provide affordable life insurance services to people particularly those living in rural areas. Witt expnasion, PLI will now cover professionals also apart from government employees.

Sampoorna Bima Gram (SBG) Yojana

Under SBG Yojana, at least one village (having a minimum of 100 households) will be identified in each of revenue districts of country to cover all households of identified village with minimum of one RPLI (Rural Postal Life Insurance) policy each. Coverage of all households in identified Sampoorna Bima Gram village is primary objective of this scheme.

Expansion of PLI

With expansion of PLI, benefits of PLI will no more be confined to government and semi-government employees only, but will also be available to professionals such as doctors, engineers, management consultants, chartered accountants, architects, lawyers, bankers etc. and to employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). It will enlarge cover of social security and bring maximum number of people under protection of PLI.

Postal Life Insurance (PLI)

PLI was introduced in 1884. It is one of oldest life insurance schemes for benefit of government and semi-government employees. It covers employees of Central and state governments, Central and state public sector undertakings (PSUs), universities, government-aided educational institutions, nationalized banks, local bodies, autonomous bodies, joint ventures having a minimum of 10% Government/PSU stakes societies etc. It also extends facility of insurance to officers and staff of Defence services and para-military forces. It also manages group insurance scheme for extra departmental employees (Gramin Dak Sevaks) of Department of Posts.

PLI offers 6 types of plans viz. Whole Life Assurance (SURAKSHA), Convertible Whole Life Assurance (SUVIDHA), Endowment Assurance (SANTOSH), Anticipated Endowment Assurance (SUMANGAL), Joint Life Assurance (YUGAL SURAKSHA) and Children Policy (BAL JEEVAN BIMA). In all policies age limit is 19 to 55 years. Low premium and high bonus is unique feature of PLI scheme.

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Cabinet approves IRDAI’s admission as a signatory to IAIS, MMoU

The Union Cabinet approved Insurance Regulatory and Development Authority’s (IRDAI) admission as a signatory to International Association of Insurance Supervisors (IAIS), Multilateral Memorandum of Understanding (MMoU).

The IAIS is a global framework for cooperation and information exchange between insurance supervisors. The IAIS-MMoU is a statement of its signatories’ intent to cooperate in the field of information exchange as well as procedure for handling information requests.

It provides a formal basis for cooperation and information exchange between the Signatory Authorities regarding the supervision of insurance companies where cross-border aspects arise mainly due to absence of any bilateral agreements.

The scope of the IAIS-MMoU is wider than the existing agreements as it also provides for supervision of other regulated entities such as insurance intermediaries under Anti Money Laundering, (AML) and Combating the Finance of Terrorism (CFT).

Background

With increasing integration of financial market and growing number of internationally active insurance companies there is increased need for mutual cooperation and information exchange between insurance industry supervisors. In this background the IRDAI has become a signatory member of the IAIS-MMoU.

About Insurance Regulatory Authority of India (IRDA)

IRDA is an apex statutory body that regulates and develops the insurance industry in India. It was constituted as per provisions of Insurance Regulatory and Development Authority Act, 1999. Its headquarter is in Hyderabad.

The functions of IRDA are to protect the rights of insurance policy holders; provide registration certification to life insurance companies; renew, modify, cancel or suspend this registration certificate as and when appropriate; promote efficiency in the conduct of insurance business; promote and regulate professional organisations connected with the insurance and reinsurance business; regulate investment of funds by insurance companies; adjudication of disputes between insurers and intermediaries or insurance intermediaries.

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