IRDAI recently has directed insurance companies to provide cover for mental illness under health insurance policies before 31st October, 2022. This direction is based on mental health Act, 2017 wherein every insurer will have to make provision for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.
World Health Organisation believes Covid-19 remains a global emergency though its impact has reduced in most of the countries. But we need to take lessons from Covid 19 and be prepared for any future pandemic like this.
Central Govt. has notified that four PSU’s New India Assurance Co. Ltd., United India Insurance Co. National Insurance Co. and Oriental Insurance Companies staff will get 12% pay hike since August, 2017. This will entail an additional expenditure of around 8000 crores. This will certainly impact the balance sheet of the insurers.
IRDAI is said to be exploring general insurance products with longer tenures and has written to the general insurance companies in this regard and formed a working group as well with representatives from the industry.
IndiaFirst Life Insurance has filed preliminary papers with Sebi to raise funds through an initial public offering (IPO). According to merchant banking sources, the IPO size could be between Rs 2,000 crore and Rs 2,500 crore.
We expect more Insurance Companies will raise capital through the IPO route. But after the LIC poor performance of IPO Insurance companies are wary of immediately jumping for IPO. LIC shares are still getting battered on stock market and still far behind the offer price. LIC was expected to do well on bourses keeping in mind its popularity among the masses. LIC needs to gear up and improve its performance to stay in the competition.
