Police arrest man for defrauding insurance firm of Rs 34 lakh
Kochi: A man accused of defrauding Rs 34 lakh from a private insurance company was arrested by the police here on Thursday.
The suspect, identified as Varun Kumar Nair (36), a resident of Ochira in Kollam, was apprehended on charges of cheating Niva Bupa Health Insurance Company Limited, police said.
Varun had taken a personal accident insurance policy worth Rs 25 lakh. He underwent cashless treatment amounting to Rs 3,41,995 at Valiyath Institute of Medical Science Hospital in Kollam and he claimed an additional Rs 70 lakh for pre-and post-hospitalisation expenses. After verification of bills, he was paid Rs 34 lakh by the company, police said. The fraud was orchestrated using fake invoices procured through the PharmEasy online platform, they said.
Varun allegedly placed online orders for medicines using the cash-on-delivery option, cancelled the deliveries, and used the invoices to claim reimbursements from the insurance company, officials said. He then transferred the claim amount to a different bank account, police said.
The scam came to light during an internal investigation conducted by Niva Bupa Health Insurance Manager Abdullah and their partner, Optimus Medical Service, police added.
Varun, who had been absconding after the Kerala High Court rejected his anticipatory bail plea, was tracked down and arrested by the Kochi city police. Following his arrest, he was presented in a local court, which remanded him to judicial custody, police confirmed.
Source : The Print
Canara HSBC Life Insurance has launched a brand campaign featuring actor Varun Sharma, focusing on the importance of financial planning for modern consumers. Reportedly, the campaign includes three main ad films and supporting content, showcasing scenarios where financial solutions like savings, retirement, and term plans address diverse goals.
“At Canara HSBC Life Insurance, we aim to demystify financial planning and make it approachable for everyone. Often seen as complex and overwhelming, financial planning becomes relatable and engaging through this campaign’s light-hearted yet meaningful storytelling. By showcasing real-life scenarios, we not only highlight the importance of insurance but also demonstrate how our tailored solutions empower individuals to achieve their diverse aspirations seamlessly.” Rishi Mathur, chief marketing officer and chief distribution officer- Alternate Channels, Canara HSBC Life Insurance, said.
From what is understood, the films depict relatable situations: a couple exploring savings and retirement plans, two brothers addressing financial goals through term and savings plans, and a father-son conversation on securing future generations using child and retirement plans. The campaign will roll out across digital platforms, television, and social media channels.
Shares of insurance companies took a hit on Monday, declining by as much as 6% in intra-day trading on the BSE. The downturn followed the Goods and Services Tax (GST) Council’s decision to defer discussions on reducing GST rates for life and health insurance premiums. Consequently, the existing GST rates on insurance remain unchanged.
The Council, which also postponed a decision on rationalizing taxes for 148 other items, cited the need for more time to finalize its reports. Union Finance Minister Nirmala Sitharaman, during a post-meeting briefing, explained that the Group of Ministers (GoM) is awaiting crucial inputs from the Insurance Regulatory and Development Authority of India (IRDAI) regarding insurance premium rates. Once these inputs are reviewed, the finalized reports will be submitted to the Council for further deliberation.
As a result, key insurance stocks experienced significant declines. Shares of New India Assurance Company dropped 6% to ₹200.80, while General Insurance Corporation of India slipped 3% to ₹485.55. These declines reversed some of the gains from last Friday when General Insurance Corporation surged 14% and New India Assurance rose 4% despite a sluggish market.
Other major players like ICICI Prudential Life Insurance, ICICI Lombard General Insurance, SBI Life Insurance, HDFC Life Insurance, Star Health, LIC, and Niva Bupa Health Insurance saw stock prices dip between 1% and 2%. Over the past month, life insurers such as ICICI Prudential, HDFC Life, and SBI Life have reported declines of 6% to 10%, compared to a 2% dip in the broader market index.
ICICI Securities noted that the delay in the GST Council’s decision and the lack of a clear timeline for implementation have created uncertainty, keeping insurance stocks under pressure in the short term.
Despite these immediate challenges, analysts remain optimistic about the sector’s long-term growth potential. India’s insurance penetration remains below global averages, but factors such as a significant protection gap and rising per capita income are expected to drive future growth. Additionally, the demand for credit protection products is in its early stages and is poised for expansion as retail loan penetration increases.
Experts believe that companies with a strong product mix, robust services, and extensive distribution networks will emerge as key beneficiaries in the sector. However, they caution that regulatory changes and intensified competition may pose risks to profitability in the long run.
Net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52 per cent during 2023-24 as against 82.95 per cent in the preceding fiscal year, as per the Irdai’s annual report.
According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (Irdai), during 2023-24, the non-life insurance industry underwrote a total direct premium of ₹2.90 lakh crore in India registering a growth of 12.76 per cent from previous year.
The contribution of public sector general insurers increased 8.88 per cent from ₹82,891 crore in 2022-23 to ₹90,252 crore in 2023-24. Private sector insurers, including standalone health insurers, have underwritten ₹1.88 lakh crore as against ₹1.58 lakh crore in 2022-23.
The aggregate profit of the non-life insurance sector was ₹10,119 crore as against a net loss of ₹2,566 crore in 2022-23. During 2023-24, the aggregate net incurred claims saw a 15.39 per cent increase to ₹1.72 lakh crore from ₹1.49 lakh crore.
“The incurred claims ratio (net incurred claims to net earned premium) of the non-life insurance industry was 82.52 per cent during 2023-24 as against 82.95 per cent of the previous year,” the report said. The incurred claims ratio for public sector insurers was 97.23 per cent for 2023-24 as against the previous year’s incurred claims ratio of 99.02 per cent.
The incurred claims ratio for private sector general insurers, standalone health insurers and specialised insurers were at 76.49 per cent, 63.63 per cent, and 66.58 per cent, respectively, for 2023-24 as compared to the previous year’s ratio of 75.13 per cent, 61.44 per cent and 73.71 per cent, respectively. The report also said that the life insurance industry paid total benefits of ₹5.77 lakh crore in 2023-24, constituting 70.22 per cent of the net premium.
The benefits paid on account of surrenders/withdrawals increased 15.29 per cent to ₹2.29 lakh crore in 2023-24 of which public sector life insurer accounted for 58.36 per cent. During 2023-24, a total of 18 life insurance companies reported profits. Profits of the life insurance industry grew 10.79 per cent in 2023-24 with profit after tax (PAT) of ₹47,407 crore as against ₹42,788 crore in 2022-23.
Public sector life insurers reported an 11.75 per cent increase in profits while private sector life insurers reported a rise of 5.32 per cent in profit in 2023-24. Irdai said in 2023-24, the country’s insurance penetration was at 3.7 per cent as compared to 4 per cent in 2022-23.
The insurance penetration for life insurance industry marginally declined from 3 per cent in the previous year to 2.8 per cent during 2023-24. The penetration with respect to non-life insurance industry remained the same at 1 per cent during 2023-24 as in 2022-23. There were 26 life insurers, 25 general insurers, eight standalone health insurers, 12 reinsurers and foreign reinsurance branches, and two specialised insurers, registered as on March 31, 2024.
Source : Live Mint
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