Tag: Yearender 2020

Launch of ‘Saral Jeevan Bima’, positive cheque payments and more; key changes that come into effect from today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Several financial changes and new announcements have come into effect from January 1, 2021. These include the launch of ‘Saral Jeevan Bima’, the start of ‘positive pay system for cheque payments’, contactless card transaction limit increase, among others.

Here’s a list of changes/announcements that take place from today:

Launch of ‘Saral Jeevan Bima’

The Insurance Regulatory and Development Authority of India (IRDAI) has come out with a standardised term insurance policy known as ‘Saral Jeevan Bima’.

This is a non-linked, non-participating individual pure risk premium life insurance plan and shall provide for payment of sum assured in a lump sum to the nominee in case of the life assured’s unfortunate death during the policy term.

The positive pay system for cheque payments

The Reserve Bank of India (RBI) has started ‘positive pay system’ for cheques from today. Under this, re-confirmation of key details may be needed for payments beyond Rs 50,000. Availing of this facility will be at the discretion of the account holder. However, banks may consider making it mandatory in case of cheques for amounts of Rs 5 lakh and above.

Under the positive pay system, the issuer of the cheque will be required to submit electronically, through SMS, mobile app, internet banking or ATM certain minimum details of that cheque like date, name of the beneficiary, payee, amount to the drawee bank. These details will be cross-checked before the cheque is presented for payment.

Increase of contactless card transaction limit

The RBI has enhanced limits for contactless card payments and e-mandates on cards (and UPI) for recurring transactions to Rs 5,000 from Rs 2,000.

Quarterly Goods and Services Tax (GST) return filing facility

About 9.4 million small businesses now come under the quarterly Goods and Services Tax (GST) return filing facility. These firms with sales up to Rs 5 crore will need to file only four returns showing the summary of all transactions in the quarter in the new regime from today.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks to invest in 2021: Experts give their top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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New year means a fresh start and the chance to set new goals. People, who look forward to setting their investment goals error-free and have a risk-taking appetite may definitely wish to invest in stocks in 2021.

Here’s a list of stocks that may perform well in 2021 in different sectors:

Pharma

Bhavesh Gandhi, lead analyst – institutional equities, YES Securities expects COVID-led drug tailwinds and pre-stocking to end in H1 CY20.

“2021 could bring the focus on vaccine manufacturing and distribution capabilities, especially if a large 30-40 percent of the population is to be inoculated,” he believes.

“We reckon companies like Dr Reddys’, Aurobindo, Cadila and Wockardt and Serum. Our top picks are companies with large and fast-growing brands in the domestic market like Torrent Pharma while Aurobindo and Alembic Pharma fit the bill to play the US generics growth especially in injectables and sartans opportunity respectively,” he opines.

Also read | Mutual funds vs direct equity: Which investment option should you prefer in 2021?

Banks and NBFCs

According to Rajiv Mehta, lead analyst – institutional equities, YES Securities, sustained economic recovery, improving income scenario for salaried and business class, instrumental liquidity interventions by RBI and government, and a low-interest rate represents a conducive business backdrop for lenders. Consequently, the rally and recovery in stock prices should continue in 2021.

“We believe HDFC Bank, ICICI Bank, RBL Bank, Mahindra Finance, Repco Home and Spandana could be strong performers of 2021,” Mehta said.

Infrastructure

As per Alok Deora, lead analyst, institutional equities, YES Securities, stock performance has been improving post the correction seen in March/April.  Most companies have increased the full-year revenue targets post-September quarter results.

Deora’s top picks in this space are PNC Infratech, KNR Constructions and HG Infra.

Consumer Staples

Going forward into 2021, Himanshu Nayyar, lead analyst – institutional equities, YES Securities expects staples demand to remain steady with some moderation in packaged food and hygiene products demand to be offset by better trends in discretionary FMCG categories especially driven by continued tailwinds in rural FMCG markets and strong traction in winter portfolio.

Also read | Looking to invest in 2021? Here are the best investment options

His top picks in the staples space for 2021 are HUL, Tata Consumer, Marico and Emami.

On the discretionary side, he expects complete normalisation of demand for 4QFY21 for most categories. His top picks for 2021 are Asian Paints, Avenue Sipermarts, United Spirits, Relaxo, Page Industries, Radico, Trent, ABFRL and V-Mart.

Life and general insurance

Prayesh Jain, lead analyst – institutional equities, YES Securities believes the general insurance industry is well-positioned to benefit from the increased focus on product innovation and health awareness driven by the occurrence of pandemics.

ICICI Lombard although remains his preferred play in the sector with its journey towards underwriting profits, strong distribution franchise and balanced product mix.

AMC

Jain believes that the AUM growth story remains intact with the benefit of MTM gains more than compensating for the stressed inflows. In addition to that, the debt segment is expected to remain resilient as economic recovery will lead to improved cash flows for India Inc which get invested in debt funds.

NAM remains his top pick in the sector and is positioned well with the change in the brand name, strong retail base, focus on other business avenues and reasonable valuations. CAMS, a proxy play on the AMC story, is his top mid cap pick in the non-lending financial space.

Cement

Kunal Shah, analyst – institutional equities, YES Securities expects profitability for the sector to have peaked out in Q2FY21E as he believes the industry to witness pricing pressure and a pinch of higher input costs from 2021 onwards.

He expects stocks like Birla Corp and Sagar Cements in small caps to outperform as they commission their capacities in 2021 and in large cap, he expects UltraTech Cement may post its recent capex announcement.

Defense

In defense sector, Umesh Raut, analyst – institutional equities, YES Securities see margin uptick potential from core defense products due to efficiencies developed over years.

His top picks are Bharat Electronics and Mazagon Dock, while the key rerating catalysts for Hindustan Aeronautics/Bharat Dynamics /Cochin Shipyard would be the realization of guided order inflows, steady margins and strong growth capital generation.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crash or next boom in housing market: Rising demand for luxury homes and expectations from 2021

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Manav Singh

The year 2020 had many highs and lows, especially with the pandemic and nationwide-lockdowns for the Indian real estate sector. With the entire world moving towards the new normal, the economic revival is expected to bounce back in 2021.

After, almost three-quarter prolonged break, the luxury homes segment is witnessing huge demand with festive offers, ready-to-move inventory and stable prices. The real estate segment is expected to rise significantly in 2021 as compared to the pre-covid demand. The living condition in pandemic has shifted the focus of the buyer to upgrade to bigger living spaces.

The upcoming trends that the luxury homes segment is expecting will be more towards the following:

1) Buyers seeking out managed residences, upgrading to a bigger living space will be another focus, however with kids and senior citizens at home, buyers will relook at the options available along with the living space.

The architecture and design of a luxury home should also integrate green areas, open landscape, etc. that creates a sense of positive living and a healthy lifestyle. The pandemic invoked healthy living into the minds of the people, which will influence every buying choice they make, be it for a house or furniture.

2) Another interesting thing that can be taken into consideration, is the lowest interest rates, the stamp duty reduction, and an increase in demand for ready to shift homes have opened new avenues for NRIs to invest in the upcoming New Year.

Along with NRIs even the High Net Worth Individuals in India are looking forward to making the safest investment in the luxury housing segment.

3) Amenities are also one of the important trends that the sector will be witnessing further. Every luxury home environment might have facilities like clubhouse, walking areas, etc but going the extra mile and including amenities like 24×7 medical emergency, Helicopter facility like Auramah Valley in Shimla, on-call security and maintenance assistance, health & wellness club with extra facilities will go a long way.

Pandemic has changed the perspective of people’s living conditions, facilities available at your doorstep, and adding to your convenience in all forms will help buyers in the long run.

4) Design and Décor will also be one of the driving factors for buyers as India is known for following certain practices while making the buying decision. Increasing awareness concerning the living standards and positive vibes through spacious design and the sunlight with accurate directions has brought about a paradigm shift in the preferences of the home buyers in the luxury segment.

With the world-class design and accentuating décor, the developers need to focus on certain other factors like enough sunlight and proper ventilation entering the house, open spaces to make the furniture setting uber-luxurious with international standards.

5) Apart from aesthetics, interiors, and luxurious décor, certain other factors will influence the buyer’s decision for luxury homes like
Smart Tech, which is yet another trend that is popular while buying a luxury home. Technology has been the most integral part of everyone’s life. From Gen X to Gen Z and millennial, smart tech homes are the top priority.

A luxury home is a perfect choice when it has top-notch security, smart home assistance, fire and gas leak detectors, etc. The hi-tech technology-enabled systems help in providing much-added convenience and comfort in the everyday life of the homeowners. It aims to incorporate security, mobility, comfort, and entertainment, providing occupants with connected solutions at all times.

6) Brand tie-ups will be another trend in 2021, associations with big brands, as well as, apps that add convenience, will help big developers stand out in the industry. For instance, the My Gate association not only helps vendors but also aims to help homeowners and families to shop while enjoying the comfort of their home.

People are looking forward to optioning where there is no need to walk a mile to stock-up on their favorite daily essential brands. This will help to increase the goodwill of the developer and add credibility for the buyer. This will be a visible change that buyers can witness and make an informed decision about the investment. Brand tie-ups can be for various facilities like sports, food, daily essentials, etc.

In the wake of the reviving state of the luxury homes segment in the country, these trends will gradually help the real estate developers to upgrade the premium inventory a notch higher and sustain in the competitive market in the long run.

Manav Singh is founder at Auramah Valley and Chairman Imperial holding group. Views are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yearender 2020: Controversial statements by Indian politicians this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The year 2020 has been a tumultuous year as Citizenship Amendment Act protests, COVID lockdown and new agriculture laws disrupted normalcy in the country. Amid these disruptions, many politicians made unsavory statements and these comments triggered furore and dominated political discourse in 2020.

1) Sanjay Raut (Shiv Sena spokesperson): “Kangana Ranaut is har**khor.”

Shiv Sena leader Sanjay Raut called Kangana ‘haramkhor’. In a new video, Ranaut slammed Raut for his mindset and criticised Mumbai Police’s investigation into Sushant Singh Rajput’s death case.

2) Kamal Nath’s “item” jibe at BJP woman candidate

Senior Congress leader and former Madhya Pradesh CM Kamal Nath in the run-up to Madhya Pradesh legislative assembly by-polls, stirred a political storm when he called BJP minister Imarti Devi as an “item”.

#WATCH: Our candidate is not like her… what’s her name? (people shout Imarti Devi, who is former State Minister) You know her better and should have warned me earlier… ye kya item hai: Former Madhya Pradesh CM & Congress leader Kamal Nath pic.twitter.com/eW76f2z8gU

— ANI (@ANI) October 18, 2020

3) Farooq Abdullah (Former Jammu & Kashmir chief minister): They’d (Kashmiris) rather have China rule them.”

Farooq Abdullah stirred controversy as he made a statement in an interview with The Wire that Kashmiris rather love to be ruled by China.

4) Anurag Thakur: ‘Gun down traitors of country’

During the Delhi Assembly elections campaign, BJP leader Anurag Thakur caught on camera saying “Gun down traitors of country”.

5) Ashok Gehlot (Rajasthan chief minister): ‘Sachin Pilot is ‘nikamma, nakara’

Talking to reporters, Gehlot said Sachin Pilot is ‘nikamma’, ‘nakara’ (slothful and wastrel) he was only making people fight.

6) Suman Haripriya (Assam BJP MLA): ‘Gaumutra’ and ‘Gobar’ to cure Coronavirus

While the world was grappling with novel coronavirus outbreak, Assam BJP MLA Suman Haripriya has made a bizarre statement on the cure for coronavirus.

“We all know that cow dung is very helpful. Likewise, when cow urine is sprayed, it purifies an area… I believe something similar could be done with ‘gaumutra’ and ‘gobar’ to cure Coronavirus (disease),” she said during a discussion on the first day of the budget session of the Assembly.

We all know cow dung is very helpful. Likewise, when cow urine is sprayed, it purifies an area. I believe something similar could be done with cow urine, cow dung to cure #coronavirus: Assam BJP MLA Suman Haripriya

— Press Trust of India (@PTI_News) March 2, 2020

7) Rahul Gandhi is like a student eager to impress the teacher, but lacks aptitude and passion: Barack Obama in his memoir

Former US president Barack Obama i his memoir said Congress leader Rahul Gandhi has a “nervous, unformed quality” about him like a student eager to impress the teacher but lack aptitude and passion to master the subject.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Health insurance industry: An overview of 2020 and outlook for 2021

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Ajay Shah

Given that the country’s individual health insurance penetration is only around 3 percent, COVID-19 helped health insurance become a priority for the common man. The surge in these policies began in end-April and the beginning of May 2020, fuelled by rising COVID-19 cases.

Coverage Gains Momentum

The rise in the cover amount was mainly propelled by the realization that the cost of treating COVID-19 could be extremely high. The directive from IRDAI (Insurance Regulatory and Development Authority of India) for insurers to mandatorily provide a standard coverage for COVID-19 through Corona Kavach and Corona Rakshak policies also helped their cause.

Given the urgency of Covid 19, these products addressed the immediate need of the consumers. However, buying a comprehensive cover remains a smart choice because it provides wider coverage against diseases or accidents and not just Covid-19. Further, comprehensive policies see better renewals for long term coverage and hence lesser incidence of dropouts.

The General Insurance Council’s data reveals that in July, health insurance premiums accounted for 32.7 percent of the general insurance market. Thanks to these tailwinds, research reveals that in the months ahead, health insurance will keep picking up due to pandemic pressures on the public.

The pandemic also had significant impact on the sector’s way of operating. Health Insurance organizations were quick to move to technology-enabled servicing solutions that on the overall were beneficial for customers as they could avail services from the comfort of their home.

With consistent investment in technology, the presence of adequate security protocols etc. organizations could empower their employees to operate and manage company’s data seamlessly in a work-from-home environment. All departments like underwriting, operations, claims and customer-service were rendered fully functional on an almost immediate basis.

In addition, having clear business continuity plans ensured employees were aware of the immediate steps they had to adopt in the given situation and this led to a smooth transition across teams. Since physical meetings and interactions were not possible or restricted; digital platforms helped in keeping communication channels open.

Meanwhile, despite the arrival of vaccines, apprehensions of contracting COVID-19 will continue nudging people towards health insurance in 2021 too. The health insurance penetration rate that was slow paced for years is expected to gain further momentum in 2021.

A noticeable trend concerns people taking the trouble of learning more about insurance policies and evaluating the options to ensure they get more value for their money.

Evolving Trends

Lockdown restrictions meant facilitating medical examinations was no longer easy or possible in many cases. To overcome the barrier, insurers began issuing policies through Tele-MER – recorded phone interviews conducted by proposers in gathering risk-related data and the medical history of applicants.

Another interesting trend was the change in the attitude of millennials towards health insurance. This segment was reluctant to put down money for health insurance, believing they did not require it since they were young and healthy. But as coronavirus began infecting both old and young, almost overnight, millennials realised that health insurance was a necessity even for them. Within weeks after the outbreak, millennials began buying health insurance. Their motive was twofold – to protect their financial stability if they required expensive hospitalisation and ensure economic security for families in case of an unwanted eventuality.

Although the majority of working millennials have a corporate health insurance cover provided by their employers, it is often inadequate in covering the entire family. This is particularly true because of rising healthcare costs and the growing number of infectious diseases. The other advantage of these first-time insurance purchasers – a significant section prefers comprehensive health insurance coverage; a prudent purchase by all accounts.

In 2021 too, the health insurance industry expects the tailwinds from the pandemic to sustain the shift towards greater penetration among untapped segments. Simultaneously, data-driven innovations and digital tools like AI, IoT, RPA (robotic process automation), machine learning and blockchain, among others, will help in speeding up administrative tasks such as underwriting, processing of claims and managing customer queries. All of which are expected to facilitate faster growth, benefitting both health insurers and the insured.

Ajay Shah is Director and Head – Retail Sales at Care Health Insurance
(Formerly Religare Health Insurance). Views are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s a list of bank holidays in 2021

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Banks in Delhi, Mumbai, Chennai and Kolkata will remain shut for several festivals in 2021, including Holi, Good Friday, Id-ul-Fitar, Diwali, Guru Nanak Jayanti, Christmas, among others.

According to the Reserve Bank of India (RBI) guidelines, all banks in the country—including public sector, private sector, foreign banks, cooperative banks and regional banks—are shut on every Sunday and on the second and fourth Saturdays of every month.

Also read: Banks holidays in January 2021; check full list here

Additionally, there are some restricted holidays which vary from state to state.

Here’s a list of some of the major bank holidays in the four metros in 2021:

(Source: rbi.org.in)

Meanwhile, the central bank has declared bank holiday in Chennai, Aizawl, Gangtok, Imphal and Shillong on January 1, 2021, in view of the new year celebrations.

The bank will remain open across other major cities on January 1.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yearender 2020: New year resolutions to consider for achieving financial freedom

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Amarjeet Maurya

Surely, 2021 is a year that everyone waits with hope, curiosity, and anticipation. With multiple vaccine candidates in their last legs of development, perhaps, the year will finally help us break through the shackles of face masks, social distancing, and everything else that has left us with the anxiety of late! In other words, it will be a year of freedom wherein we appreciate, cherish, and enjoy those aspects of life that we earlier paid little heed to.

The year 2021 also gives us the perfect opportunity to start afresh with a new beginning and achieve our long-desired financial freedom.

So, if you’re looking for ideas, here are some of the New Year resolutions that you must consider:

I will start investing

The year 2020 has given us the perfect glimpse of why we should always have a financial buffer. It not only secures us and our family for any unforeseen need, but it also unlocks avenues for superior wealth creation. This way, we can invest in a market opportunity as and when it emerges.

For instance, benchmark indices have grown by 80 percent from their lows in March. They are about 13 percent up from where they were at the beginning of the year. Several stocks across segments including IT and Pharma have grown multifold during this period. The more you invest and keep on investing, the more your accumulated wealth will grow whenever relevant market opportunities arrive.

I will channelize my spends

Just because you’re starting to invest doesn’t mean that you need to spend any lesser. In the words of the great Roman playwright Plautus, “You must spend money to make more money”. What our dear friend meant was that you have to channelize your spending such that they generate wealth for you. So, maybe you can give that burger a pass and rather begin a SIP or buy a stock. By doing so, you will also be ensuring your physical fitness along with a financial one.

I will increase my financial knowledge

Uninformed investors are likely to make subpar profits and incur losses. Don’t make that mistake. Even if you are buying anything as per the recommendation of an advisor, an investment engine, or a small case, make sure you learn about all intricacies of the instrument that you’re about to buy. It will ensure your returns are always optimal. Doing so will also enable you to make quick and better decisions while eliminating the stroke of luck from the equation.

I will diversify my investment

Though it seems to be a nice idea to keep the investments simple, seasoned investors will tell you never to keep all of your eggs in one basket. If you’ve invested in stocks, make sure you diversify throughout the sector (including high-potential large-cap and small-cap companies). Also, balance it off by giving a certain weightage to gold or silver. A diversified portfolio directly decreases the risk concentration and hence, your overall risk exposure.

I will learn to code

Do you know? Today, more than one-third of all trades executed in India are algorithmic trades. Algorithmic trading, popularly known as algo trading, is the virtual modeling of trading strategy to automate the buying and selling of securities. And, it’s not rocket science either. You simply have to write a code and feed your call to action in the algorithm. Certain digital brokers even empower you to create advanced charts using historic and real-time data, which can be used to determine such calls to action. The best bit is that you get premium rates while trading in this approach as compared to manual buying and selling.

In developed economies, the algo trades comprise as high as 80% of the overall market volume. The figure is still expected to grow given the increasing tech intervention in trading and investment. In India, you can perhaps stay ahead of the curve by learning a language such as Python, R, or Java alongside others and enter the ripe market of algo trading – which will surely dominate a majority of trades in the future.

With 2021 just around the corner, it’s high time to do all that you have long wished for including your financial freedom. Make sure you keep these New Year resolutions on priority in order to truly achieve a new beginning of financial freedom. Godspeed!

Amarjeet Maurya is AVP – Mid Caps at Angel Broking Ltd. Views are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Key IRDAI regulations that changed face of term insurance industry in 2020

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Santosh Agarwal

The COVID-19 pandemic reinforced the need for better digital services all across the world. Ever since this pandemic struck, every sector scrambled to make its services digital, convenient, simpler, and quicker. The insurance sector in India is no exception. Treading the same path, Insurance regulator IRDAI took a lead and left no stone unturned in providing safe and convenient digital services to its customers. And amongst innumerable and profound changes brought by this tiny virus in our lives- the consolidation of digital infrastructure is a positive one and is here to stay even in the post-pandemic world.

With timely interventions, IRDAI took some bold and laudable steps. From standardization of products to covering new trends, by replacing tedious processes with simpler ones – IRDAI made 2020 a transformative year for the whole insurance industry. These changes introduced by the IRDAI made buying, understanding, and on-boarding for customers completely new and a seamless experience. Keeping pace with the rapid changes brought in the lives of people by this virus, IRDAI addressed everything on the war footing.

So, let us look at some key regulatory changes made by IRDAI in 2020 that changed the face of the Insurance sector in India:

Death Due to Pandemic Covered under Term Policy

Just a few weeks after the COVID-19 pandemic hit India, there was a lot of confusion amongst people, especially those with a term life insurance policy if death due to the pandemic will be covered under the policy. To clear this confusion, IRDAI and insurers came out stating death due to the COVID-19 pandemic will be covered under an existing term life insurance cover.

This means that if the insured person dies due to COVID-19 related complications, the death benefit will be paid to the nominee or the dependents after a valid life insurance claim is filed. This step also cleared the fog around the settlement of the death claim related to this pandemic. This direction by IRDAI not only reduced the disruptions and confusion induced by the virus but also provided much-needed relief for policyholders and policy buyers. So now every policyholder and buyer should note that no insurer can reject the claim related to the COVID-19 pandemic, and will settle a genuine COVID claim without any hiccups as per the direction of the regulator.

Issuance of Term Insurance Through Telemedical

Amidst the raging pandemic, people are reluctant to step out of their homes as the fear of contracting the virus is limiting their mobility. Thus addressing this concern, the Insurance Regulatory and Development Authority of India (IRDAI) brought in a major relief for the policyholders as it allowed the issuance of term plans through telemedical. Earlier, people who wanted to buy a term plan had to visit a medical centre for a mandatory physical test.

However, now with telemedical in place, policy buyers do not have to visit any medical centre and rather the medical screening can be done over a tele-video call. Talking about life insurance, a cover of up to 2 Crore sum-assured can be bought through telemedical. Customers are advised to provide appropriate and correct information to doctors over the phone so they face no challenge during the claim settlement process. The telemedical process is completely regulated by the IRDAI and is reliable from a customer standpoint.

E- Know Your Customer (E-KYC)

Bringing a major relief for the policy buyers amidst the ongoing pandemic, IRDAI gave green light to insurance companies to use Aadhaar-based authentication services to complete the Know Your Customer (KYC) process. This process enables the customers to fulfill the KYC requirements with the click of a button.

This move by the regulator is also seen as the beginning of paperless KYC for customers’ on-boarding journey even in the post-pandemic world. Now with digital KYC, policy buyers are no longer required to visit insurers’ offices for completing a long and tedious on-boarding process.

With the introduction of e-KYC, the customers will not be required to submit physical copies of their important documents such as address proof, identity proof and photograph for policy issuance. So, the new KYC process will save time, enhance the customer experience, and will be more convenient for insurers as well as policy buyers.

Buying Term Insurance Plan with OTP

During this pandemic, people have become more apprehensive about stepping out of home or meeting anyone in person. Thus the face-to-face model of buying and selling policies where agents would visit buyers and get all the details about the buyer has been affected drastically. To get rid of the hassle associated with the face-to-face model of buying a policy, IRDAI asked insurers to make the process digital and easier for the buyers.

As per the intervention of IRDAI, the new system enables buyers to authenticate the details with one-time password (OTP) verification. This authentication will be done with the help of a link sent to customers by insurers. This authentication via OTP will be a replacement for wet signatures.

This change will allow Insurers to send the complete proposal form on the buyer’s email ID or mobile number. The policy buyer will have to click on the confirmation link to validate the OTP shared with him. This important and much-required change will not only reduce the hassle involved in buying policies but will also expedite the whole process.

Digital Policy Documents

Keeping the convenience and the safety of policy buyers at the highest pedestal, Insurance regulator IRDAI in its new direction allowed insurers to issue the policy document on email. But If a policyholder asks for a policy document in physical form, the document has to be issued by insurers without levying any extra charges. This important change brought in by the regulator will expedite the policy issuance time at the insurer’s end. In addition to this, this process will secure the policy documents and improve transparency between the customers and insurers.

Introduction of Standard Term Plan

With life insurance penetration rate of 2.74 percent in India, the insurance regulator, with the aim of bringing more people under the net of insurance asked Insurers to offer standard products. The standard term plan – Saral Jeevan Bima with standard wording for sum insured is here to reduce the hassle for first-time buyers.

This policy will ensure that buying, understanding, and processing the policy remains an easy task for people belonging to all sections of society. Regular term insurance plans have different income criteria bases on which a term plan is issued to a customer. However, the standard term life insurance plan – Saral Jeevan Bima will be issued to customers without any restrictions on income, age, gender and location.

A customer can choose the sum assured as per his/her premium paying capacity. For the benefit of the customers, the plan will be available across all digital channels and customers can avail of an additional discount of 20 percent if they choose to buy the plan online. Thus this policy will be a game-changer in bringing more and more people under the life insurance net. This is a remarkable step taken by IRDA to bring people from rural backgrounds under the net of insurance.

These developments introduced by IRDAI in 2020 have changed the whole landscape of the insurance industry in India for a better future. The announcements not only benefit the consumers but also have made processes easier for the insurers.

Santosh Agarwal is CBO-Life Insurance at Policybazaar.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yearender 2020: Delhi riots to Kozhikode plane crash, 10 defining events for India this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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From Delhi riots to Sushant Singh Rajput’s suicide and Kozhikode plane crash, India was shaken by a number of incidents in 2020. There were also some events like Donald Trump’s visit to India and Bhoomi pujan of Ram temple by Prime Minister Narendra Modi.

Days before the year draws to a close, CNBC-TV18 look back at some of the key events in politics, Bollywood and aviation that defined 2020 for India:

#1. Kerala reports first confirmed COVID-19 case in India

On January 29, India had reported its first confirmed case of novel coronavirus in Thrissur district of Kerala. The patient was a student studying in Wuhan University, China, and had recently returned to India. Kerala Health Minister KK Shailaja said 20 samples were sent for tests out, of which one was found to be positive for novel coronavirus. She was a 20-year-old student and had been studying in one of the universities in Wuhan for some years now. She returned to Kerala on January 24 after the situation in Wuhan deteriorated. During screening at the airport, she could not identify any symptoms and be allowed to go home. In February, the patient had tested negative for the infection in fresh test at the National Institute of Virology’s local centre in Kerala.

#2. Delhi riots

Communal clashes had broken out in northeast Delhi on February 24 after violence between citizenship law supporters and protesters spiralled out of control leaving at least 53 people dead and around 200 injured. The Delhi Police had registered 436 FIRs and arrested or detained 1,427 people in connection with the communal violence. The Delhi Police had named CPI (M) general secretary Sitaram Yechury, Swaraj Abhiyan leader Yogendra Yadav, economist Jayati Ghosh, Delhi University professor and activist Apoorvanand, and documentary filmmaker Rahul Roy as co-conspirators in the February Delhi riots.

#3. Donald Trump’s visit to India

US President Donald Trump was on his maiden official visit to India from February 24 to 25. He was accompanied by First Lady Melania and a high-powered delegation comprising senior US administration officials, including National Security Advisor Robert O’Brien. They visited Ahmedabad, Agra and New Delhi. During the visit, India and the US on Tuesday finalised defence deals worth $3 billion under which 30 military helicopters will be procured from two American defence majors for Indian armed forces. The US President participated in a host of engagements over the course of his nearly-36-hour-long trip, including a roadshow, visit to the Taj Mahal, addressing a mammoth crowd at the ”Namaste Trump” event at Ahmedabad, among others.

#4. Janata curfew

Millions of people across the country stayed indoors, streets wore a deserted look and bare number of vehicles were on the road on March 22 in an unprecedented shutdown on Prime Minister Narendra Modi’s appeal for a ‘Janata curfew’ to check spread of coronavirus. As the 14-hour ‘Janata curfew’ imposed at 7 am, people kept themselves indoors as part of the social distancing exercise to help stop the spread of the virus. All markets and establishments except those dealing in essential goods and services are closed for the day. The ‘Janata curfew’ will end at 9 pm. Ahead of the start of the curfew, Prime Minister Narendra Modi said, “In a few minutes from now, the #JantaCurfew commences. Let us all be a part of this curfew, which will add tremendous strength to the fight against COVID-19 menace”.

Except for essential services, everything else including bus services, commercial establishments, restaurants, markets and places of worship were shut and people remained home.

#5. Sushant Singh Rajput suicide

Bollywood actor Sushant Singh Rajput, who made his silver screen debut in the critically acclaimed “Kai Po Che” seven years ago, was found dead in his apartment in suburban Bandra in Mumbai on June 14. A statement from Rajput’s publicist said: “It pains us to share that Sushant Singh Rajput is no longer with us. We request his fans to keep him in their thoughts and celebrate his life, and his work like they have done so far. We request media to help us maintain privacy at this moment of grief.” Ahead of the Bihar elections, Sushant Singh Rajput suicide issue was raised and demanded that son of the Bihar will get justice. On August 19, the Supreme Court had upheld the transfer of an FIR, lodged by Rajput’s father at Patna against the actor’s girlfriend Rhea Chakraborty and others for allegedly abetting his suicide, to the CBI. In October, the medical board of the New Delhi-based All India Institute of Medical Sciences (AIIMS) had ruled out murder in the death of Rajput, terming it “a case of hanging and death by suicide”.

#6. China–India skirmish

Twenty Indian Army personnel, including a colonel, were killed in clashes with Chinese troops in the Galwan Valley on June 15, the biggest military confrontation in over five decades that has significantly escalated the already volatile border standoff in the region. China is yet to disclose the number of its soldiers killed and injured in the clash though it officially admitted to have suffered casualties. According to an American intelligence report, the number of casualties on the Chinese side was 35. It is the first incident involving the casualty of an Indian soldier in a violent clash with the Chinese Army after 1975 when four Indian soldiers were killed in an ambush at Tulung La in Arunachal Pradesh.

#7. Govt bans 59 Chinese apps

India on June 29 banned 59 apps with Chinese links, including hugely popular TikTok and UC Browser. The ban, which comes in the backdrop of current stand-off along the Line of Actual control in Ladakh with Chinese troops, is also applicable for WeChat and Bigo Live. The list of apps that have been banned also include Helo, Likee, CamScanner, Vigo Video, Mi Video Call – Xiaomi, Clash of Kings as well as e-commerce platforms Club Factory and Shein.

The Information Technology Ministry in a statement said it has received many complaints from various sources, including several reports about misuse of some mobile apps available on Android and iOS platforms for “stealing and surreptitiously transmitting users’ data in an unauthorised manner to servers which have locations outside India”.

#8. Bhoomi pujan of Ram temple

Prime Minister Narendra Modi had performed bhoomi pujan of the Supreme Court-mandated Ram temple in Ayodhya, bringing to fruition the BJP’s mandir movement that defined its politics for three decades and took it to the heights of power. The guest list included religious leaders, who formed part of the movement that started in the 1980s, was restricted to 175 in view of the COVID-19 crisis. As a priest chanted Sanskrit shlokas and the ground-breaking ceremony got underway under a giant marquee decorated in shades of reds and yellows, PM Modi and other dignitaries, all in masks, maintained social distancing and sat a safe distance away from each other. Slogans of ‘Bharat Mataki Jai’ and ‘Har Har Mahadev’ were raised as the ritual ended and the Prime Minister laid the foundation of the temple.

#9. Kozhikode plane crash

The Air India Express flight from Dubai with 190 people, including a six-member crew, overshot the tabletop runway during landing at the Kozhikode airport in heavy rain on August 7, fell into a valley 35 feet below and broke into two, killing 18 people, including the pilots. The accident happened around at around 7:41 pm when the Air India flight from Dubai was making a descent and preparing for landing. After landing at Runway 10, the flight continued running to end of the runway and fell down in the valley and broke into two portions. The Boeing 737 jet, on a Vande Bharat mission as flight AIX 1344 from Dubai, was bringing in Indians who were stranded abroad due to the Covid-19 pandemic.

#10. All 32 accused in Babri demolition case acquitted

Twenty-eight years after the Babri Masjid was razed, a court acquitted all 32 people including BJP veterans L K Advani, M M Joshi and Uma Bharti accused of being involved in the demolition of the mosque they believed occupied the spot where Lord Ram was born. In a judgment that ran to 2,300 pages with enclosures, the special CBI court on September 30 said there was no conclusive evidence against the 32 accused of being involved in any conspiracy to bring down the disputed structure in Ayodhya.

Delivering the verdict on the day of his retirement, special Judge S K Yadav did not accept newspaper reports and video cassettes as evidence. The court also observed that the late Vishwa Hindu Parishad leader Ashok Singhal wanted to save the structure because Ram idols were inside.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow