A recent survey puts ball in the court of management to take the Indian insurance industry to new heights from hereContrary to the global view, Indian insurance industry puts regulatory environment in least risk category. Regulations, interestingly tops the risk concern for most of the global insurance players.This is the result from CSFI’s latest ‘Insurance Banana Skins 2015’ survey, conducted in association with PwC, which polled over 800 insurance practitioners and industry observers in 54 countries (including India), to find out where they saw the greatest risks over the next 2-3 years. The survey was conducted in March and April 2015 and is based on 806 responses.For Indian insurers these are the 5 major risk concerns:• Change management• Long tail liabilities: Risk impacting net worth of insurer and re-insurance need• Investment performance• Cyber risk• Quality of managementWith management concern coming up twice among top five risks, a lot needs to be addressed before time runs out in this fast changing environment.There are two other insights from the survey results.• India’s ‘above average’ score on the Banana Skins Index implies a higher level of risk anxiety.• And, India scores above average on the Preparedness Index as well implying a higher level of risk preparedness.Sharing his thoughts on India findings, Anuraag Sunder, Director, PwC India said, “Respondents from India perceive regulation as the least important risk and this could only be a reflection of the new reality where post the FDI changes, industry has accepted the new set of regulations as 'new normal'. They are now more focused on 'Change management', which is ranked as the top business risk. Fast paced changes on the ever-evolving customer side and increasing demand of digital interface is also a reflection of 'change management' that insurers would need to walk through.Peep into survey’s take on digital Insurance: As India’s customers continue to adopt technology in a big way, adapting to their ever-evolving expectations, especially from a technology standpoint was high on the priority list of the respondents. On the non-life side the absence of any common data platform to make informed decisions was an area of concern. Technology was widely seen as the driving force behind new markets, changing customer demand, and facilitating competition from non-traditional entrants. While the need for insurers to respond to change is nothing new, many respondents saw the current challenges demanding special urgency.The concern raised is that the traditional insurance industry will be slow to grasp the opportunity and will end up facing a threat. Developments such as digitisation, the internet and social media are already profoundly influencing price and demand for insurance products, and the means customers use to interact with their insurance providers.
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Yes Bank has received approval from RBI to set up IFSC Banking Units (IBUs) in Gujarat International Finance Tec (GIFT) city. Establishing the IBU will propel the bank's growth plans further by providing it access to international financial markets, as well as provide a comprehensive product suite to its corporate clients requiring foreign currency funding, Yes Bank said in a statement on Tuesday (14 July). It will also allow the bank to raise foreign currency funding through MTNs and other routes as appropriate, Yes Bank MD Rana Kapoor said. He added, it will help in further diversification and expansion of cross border asset products as well as widen the scope and depth of liabilities base.(PTI)
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Sunil Dhawan explains the whole process for youMaybe the long awaited wish of most taxpayers has finally been fulfilled. Many would still remember the old days of standing in long queues for hours to merely submit and get the income tax return form stamped by the income tax authorities as an acknowledgment that the form has been filed. Today, while e-filing is in place, the ITRV needs to be sent across the department’s Bengaluru office through courier or speed post in case the filing is being done without the Digital Signature. This last leg of the entire online process hasn’t gone well with tax payers. From this year onwards, the need to send courier has been done away with. After the filing is over online, one has to merely validate the same on one’s mobile.The tax department has come out with EVC- Electronic verification code for electronically filed income tax return. It is a code generated for the purpose of electronic verification of the person filing the online return. EVC is a 10-digit alpha numeric number and will be unique to each PAN of the tax payer. One may use more than one way to generate and obtain EVC and it can be generated multiple times.Ways to Generate EVCLog- in to e-filing website through net banking – Banks provides facility to e-file through their websites by re-directing the accountholder to the e-filing website. EVC can be generated thereafter.Using Aadhaar authentication: Here are the steps:1. Provide Aadhaar number while e-filing.2. Aadhaar number gets linked to your PAN and will be verified on the basis of name, date of birth and gender as per PAN database with similar data available under his Aadhaar with UIDAI.3. If the Aadhaar authentication in this manner is successful, the Verifier's Aadhaar will be linked to his PAN.4. Thereafter, an OTP will be generated and sent to the mobile number. This Aadhaar OTP will be the EVC generated under this Aadhaar Authentication and OTP mode and can be used to verify the Assessee's Income Tax return.Watch outs: This Aadhaar OTP could be valid for 10 minutes and remember to use the same registered number that is mentioned in PAN and Aadhaar details.Using ATM of bank : Here are the steps:1. Access the ATM of the Bank using ATM (Debit/Credit) card.2. Select the 'Generate EV’ for Income Tax Return Filing' option on the ATM screen (A new option that will be available at ATMs of specified banks).3. Bank will communicate this request to the Income Tax Department E-Filing website which will generate the EVC and send to your registered mobile number.Watch outs: Confirm if ATM card is linked to PAN validated bank account and the Bank is registered with the Income Tax department for providing this service.Registered mobile number in Aadhaar records is the most crucial link in EVC verification process. For security reasons it has been therefore kept restricted to mobile number. However, for all those, whose total income as per the Income Tax Return is Rs. 5 lakh or below and there is no refund claim, the EVC can be generated on the E-filing website and can be received both at Registered Email id and mobile number.
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Indian banks should consult each other and jointly decide on the timing to raise fresh capital from the market, Reserve Bank of India Deputy Governor R. Gandhi said on Tuesday (14 July)."What we are telling banks (is) that simultaneously all of them should not be coming together (to raise capital). There will be a problem," Gandhi said on the sidelines of an industry event.He said lenders should space out fresh capital raising from the market to avoid a liquidity crunch.Ratings agency Fitch estimates Indian lenders need more than $200 billion in fresh capital to prepare for the full implementation of the new Basel requirements in the next four years."What we are suggesting, that well in advance if banks are able to shore up ?their capital it should be good for their sound management," Gandhi added.(Reuters)
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Canadian investor Prem Watsa's Fairfax India Holdings Corp plans to increase its stake in Indian financial services firm IIFL Holdings Ltd to up to 26 percent for $225 million through a share tender offer. Fairfax India, a fund Hyderabad-born Watsa set up last year to boost India investments, said its Mauritius unit would buy about 83 million shares of IIFL at 195 rupees each, a premium of 3.6 percent over the Indian firm's close price on Monday. Fairfax India's parent Fairfax Financial Holdings Ltd <FFH.TO> already owns about 8.97 percent of IIFL, and has an economic interest of another 5.24 percent through derivative instruments, the fund said. It expects the offer to close later this year. IIFL is a diversified financial services holding company, with business interests in non-banking finance, housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution. (Reuters)
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The Income Tax Department on Monday (13 July) launched its ambitious One Time Password (OTP) based e-filing verification system for taxpayers, thereby ending the practice of sending paper acknowledgement to its office in Bengaluru.The facility can be accessed using internet banking, Aadhaar number, ATM and email.According to the rules notified in this regard by the Central Board of Direct Taxes (CBDT) today, any taxpayer, whose income is Rs 5 lakh or below per annum and has no refund claims, he or she can straightaway generate the 'Electronic Verification Code' (EVC) for e-filing and validating their Income Tax Return (ITR) through their registered mobile number and e-mail id with the department.However, this most simplified option, will be subject to certain "restrictions" which will be prepared by the taxman based on the concerned taxpayer's "risk criteria and profile" in a case-to-case basis."This simply means that if the department has some adverse observation against the said PAN number with income less than Rs 5 lakh, he or she will not be allowed to do the verification directly through their email and mobile number alone and such cases will have to go through the other established procedures in this regard like linkup through Aadhaar database, internet baking or via the ATM," a senior official explained.These new measures would completely eliminate the need of sending the paper acknowledgement, called ITR-V, through post to the I-T Central Processing Centre (CPC) based in Bengaluru.In the other options given, those taxpayers who have internet banking activated can do the e-verification of their ITR."The facility will be available on the internet banking website and the verifier (taxpayer) will use this facility using internet banking id, login password and transaction password," the latest CBDT rules said.Once logged in on the banking portal, the taxpayer will be sent the EVC to his mobile number provided in the official e-filing web portal of the department which they will put in their ITR for final submission.
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Few would dispute the immense benefits travel insurance offers to even the most meticulous of travellers. However, several travellers continue to be eluded of these benefits as more often than not they pick up a travel insurance product without examination of key policy features. Simple internet research throws enough light on cheapest available options, benefits and ease of the claims process. But while we lay great emphasis on knowing what all our travel insurance policy covers, most do not realise that it’s equally important to be aware of what a policy does not cover.Here are some exceptions and exclusions that travelers will not get coverage on:Pre-existing Illnesses: This is the most common exclusion in insurance policies. A pre-existing illness is something that has happened or exists before the policy was taken. While traveling, if you suffer from a health problem related to the same condition, your treatment will not be covered.Baggage Delayed for Less Than 24 hours (outbound flights only): Usually for expenses for baggage delayed less than 24 hours aren’t reimbursed. It's best to carry on with what you need for at least a day after you reach your destination.Loss of passport or documents: Thefts are rampant and caution with passport and important travel documents is a must. There is no cover for items left unattended in a public place. If documents are stolen or lost, a written report with the local law enforcement agencies is a mandatory to file a claim.Adventurous Sports and Activities: Injuries while trying out extreme sports may not be covered. The policy may specifically list activities or sports that the insurance firm considers dangerous. Common sports like mountain climbing, parasailing, hand gliding or bungee jumping are not covered by any travel insurance policy.Limits on Trip Duration: While looking for which travel insurance policy to go for, it's important to know how many consecutive days abroad would be covered for. The limits vary on insurer to insurer, and if you go over this limit, even if it's only by a day, you will nullify your insurance.Your Trip Cancels On You: Many trip cancellations apply only when you cancel the trip yourself. However, if the tour-company or travel agent cancels it, the insurance company does not cover expenses. While you will receive a refund from the company, other expenditures incurred, such as air fare or hotel and accommodation expenses, are not covered by your insurance policy.Alcohol and Drugs Influences: Relaxing and taking it easy during a holiday is what everyone looks forward to. However, if you're involved in an accident when you're under the influence of alcohol or non-prescription drugs, your policy is not likely to cover the expenses.Check exactly what situations your policy will pay for, and if you're uncertain, ask your agent or policy provider for clarification before buying the insurance and carry your policy documentation with you when you're away so you can refer to it, if necessary.Subrahmanyam B., Senior Vice President, Bharti AXA General Insurance.
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Former ICICI Bank chairman K.V. Kamath has said the bank is in "great hands" under the leadership of its current CEO Chanda Kochhar. "ICICI Bank is in great hands. Chanda will take it to greater heights and I have no doubts about it," said Kamath, who relinquished his position as the bank's chairman earlier this month to take up the responsibility as the first president of the BRICS nations' $100-billion New Development Bank (NDB). "It (ICICI Bank) is a great bank and it will keep scaling new heights every passing day," Kamath told PTI in Ufa, Russia. He was in Ufa for the BRICS Summit, attended by the heads of state of the five leading emerging economies (Brazil, Russia, India, China and South Africa). The ratification process for setting up of NDB was also completed during the summit. On India, Kamath said he is very optimistic about the growth prospects of the country. "I have always been sure that India will realise its dreams of being a global power," he said. Kamath is the first president of NDB, which will provide infrastructure loans to emerging nations, rivalling multilateral lenders such as the World Bank and the IMF. Kamath will largely operate from China in his new role at Shanghai-based BRICS Bank - taking him back to one of his favourite countries where he spent a good amount of time during his tenure at Asian Development Bank, between 1988 and 1996, when he returned to ICICI Bank as its CEO. The 67-year-old banker began his career in 1971 at ICICI, the erstwhile financial institution that was incidentally set up at the initiative of another multi-lateral development institution, the World Bank. ICICI Bank was later set up as a subsidiary of ICICI Ltd in 1994, while the parent later merged into it in 2002. He led the group's transformation into a diversified, technology-driven financial services group that has leadership positions across banking, insurance and asset management in India and abroad. Back in 2008, when ICICI Bank was hit by widespread rumours of 'run-on-the-bank', Kamath led from the front and brought everything back into order, even as bank customers were queueing up before its branches to withdraw funds. He retired as managing director and CEO in April 2009 and became its non-executive Chairman. He was succeeded by Kochhar as MD and CEO. Kamath, a mechanical engineer and an MBA from prestigious IIM-Ahmedabad, was also on board of several other companies, including that of IT giant Infosys where he served as a non-executive Chairman. In an earlier interview, Kamath had said if there was an 'Ivy League' of banks across the world, he expected ICICI Bank and a few more from India to join that elite club.
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