Insurance Current Affairs - 2020

Indian Army and Bank of India ink MoU on Defence Salary Package

Indian Army and Bank of India (BOI) on 8 May 2015 signed Memorandum of Understanding (MoU) on the Defence Salary Package.

The signed MoU is a revised version of previous and first MoU which was signed in 2011 between both parties and was valid for a period of three years.

Key facts of revised MoU

  • The basic features of the MoU are the same as before and are tailor made to suit the requirements of serving soldiers, pensioners and their families.
  • Number of additional facilities are incorporated after concerted efforts. It includes the standard bundle of free and concessional services.
  • These free services are drafts, cheque books, funds transfers to any bank in India through RTGS and NEFT, ATM cards etc.
  • Added additional facilities also include extended Personal Accident Insurance (PAI) cover upto Rs 10 lacs from current Rs 5 lacs.
  • PAI is for air insurance, Home Loan Insurance on Army Welfare housing Organisation (AWHO) for deaths on account of war, external aggression and terrorist attack up to Rs 50 lacs.

By signing this MoU, Indian Army is hoping it will benefit a large number of serving and retired Army personnel who are having their accounts with BOI. It also seeks to provide them an opportunity to access modern banking facilities.

Parliament passes Insurance Laws (Amendment) Bill, 2015

Parliament has passed Insurance Laws (Amendment) Bill, 2015. It was first passed in Lok Sabha on 4 March 2015 and later in Rajya Sabha on 12 March 2015.

In both the houses the bill was passed by voice vote. The amendment bill replaces ordinance promulgated in this regard and aims to bring improvements and revisions in the existing laws relating to insurance business in India.

The bill also seeks to remove archaic provisions in previous laws and incorporate modern day practices of insurance business that are emerging in a changing dynamic environment, which also includes private participation.

The amendment bill hikes Foreign Direct Investment (FDI) cap in the insurance sector to 49 percent from present 26 percent.

It also adds provision for the establishment of Life Insurance Council and the General Insurance Council. These councils will act as self-regulating bodies for the insurance sector.

The bill also grants permission to PSU general insurers to raise funds from the capital market and increases the penalty to deter multilevel marketing of insurance products.