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Insurance firms
can’t deny claims,
says Ombudsman Securitisation
Act may be amended Bird flu costs
160 cr to farmers: PFI
Foreign
investment up 2.7 pc: IMF Ownership turmoil
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Outlook for bank
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Insurance firms can’t deny claims, Chandigarh, February 15 This order was pronounced by Dr Ashok Kumar Kundra, Insurance Ombudsman, Chandigarh, while declaring an award of Rs 52,000 to Mr S.K. Moudgil, of Ludhiana, who had taken a group personal accident policy from the New India Assurance Co. in 2000. The company had cancelled his medical claims, when he met with an accident, on the grounds that he had not filled in information regarding his disability in the relevant columns of the application form. The Ombudsman said it was the responsibility of the company to get required information. Dr Kundra, who has recently taken over the charge of insurance ombudsman here, said: “Most officials of the insurance companies create hassles at the time of settlement of claims by ‘narrow’ interpretation of the policy
clauses. With the entry of private players in the industry, the customer services have substantially improved, but a lot still needs to be done.” Referring to the performance of the Ombudsman, Dr Kundra said,”Most of the insurance policy holders are, though, not aware about the existence and powers of this office, but we are receiving about 250 complaints on an average annually. Any policy holder, whose complaint has not been redressed by the company concerned within one month, can approach us. He can submit the complaint on a plain paper without any intermediary. We will decide the case within three months.” The insurance Ombudsman has been empowered to listen to the cases amounting up to Rs 20 lakh involving delay in settlement of claims, denial of service and delivery of policy and other documents. Interestingly, its orders are binding on the insurance companies and they cannot make any appeal against him but the complainant can approach consumer or other courts, if he is not satisfied with the final verdict. In another order, the Ombudsman has announced an award of Rs 2.80 lakh, besides 9 per cent penal interest for 26 months’ period, in favour of Ms Harjit Kaur, a car owner of Amritsar. She had taken a car insurance policy from the National Insurance but her insurance claims were not settled for over two years, when her car was stolen. Dr Kundra claimed that about 40 per cent of reported cases were settled at the first stage itself as the insurance companies would respond immediately to the notices of the Ombudsman. Otherwise both parties would be called for hearing and award announced, if required. Generally, they would reach a mutual agreement. He said, “As against 256 complaints received by January this year, we have disposed of 217 cases, and providing relief in 143 cases.”
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Securitisation Act may be amended
New Delhi, February 15 “I sincerely think that the present (Securitisation) Act needs to be amended... for involving cost accountants,” Minister of State for Finance Anandrao V Adsul said here. He opined that cost accountants could do better job in the ‘real’ costing of assets and liabilities since chartered accountants many a times certify the accounts without getting into the ‘realities’. Mr Adsul said chartered accountants were like those doctors who gave a certificate on the demands of the patient who had to submit medical certificates for their leaves to their organisation. “Same job is done by majority of chartered accountants,” who, otherwise, should have gone through documents and the supporting ones, he added. To reduce NPAs, which is over Rs 55,000 crore in banking industry, the Centre had passed Securitisation and Reconstruction of Financial Assets and Security Interest Act, which later got into legal wrangles before the Supreme Court on the issue of Mardia Chemicals. Observing that the practice of fixing the responsibility (for bad loans) had been on management only, Mr Adsul said “We will have to go for the liabilities of bankers and chartered accountants too.”
— PTI
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Bird flu costs 160 cr to farmers: PFI
New Delhi, February 15 Despite confirmations by the Indian Agriculture, Health and Animal Husbandry Ministries and the World Health Organisation (WHO) that ‘’India is free of any bird flu disease’’, the consumers are still avoiding the poultry products, including eggs, said Dr A P
Sachdev, Chairman on the Advisory Committee of the Poultry Federation of India
(PFI). “The survival of the Rs 30,000-crore poultry industry is at stake as the panic created by reports of the outbreak of Avian
Influeza, known as bird flu, in some South East Asian countries killing millions of chickens, has brought down the consumption of chicken in India by more than 50 per cent,’’ said Dr
Sachdev, who is also the Director of Blue Cross - a consultancy firm for the livestock industry. Markets all over the country have crashed, causing immense losses to the farmers. Since the scare, the poultry prices (live birds) have suffered and farmers are forced to sell at much less than the cost of production between Rs 25 to Rs 30 a bird. India produces 1400 million chickens a year, close to 27 Million a week, of which 95 per cent is traded live. With average weight of 1.6 kg, average cost of produce of Rs 30 and recovery taken at Rs 15-16 a kg, the net loss is estimated at Rs 115 crore during the last fortnight. This loss is suffered by broiler farmers alone, he added. The eggs sector has also been hit very badly. Prices in Namakkal were close to Rs 155 per 100 eggs and plummetted to Rs 100 per 100 pieces in the last few days. With average cost of production close to Rs 121 and recovery presently averaging about Rs 90 per 100 the net loss to farmers during this period is close to Rs 45 crore. The calculations did not take into account the loss of profit, but were calculated on the basis of selling the product below cost of production. If the loss to the feed manufacturer, vaccines, medicine trade and allied activities is taken into account the loss with be manifold. If the ongoing situation persists for longer, the industry would come to the verge of closure, Dr Sachdev quipped. With chicken melas organised by various farmers and associations in Delhi, Amritsar, Chandigarh, Hyderabad, Bombay, Coimbatore and celebrity shows on prime time all over the country, the industry is trying to instill confidence in the consumers that the birds available in the country are free of any virus and are safe for consumption, he said.
— UNI
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Foreign investment up 2.7 pc: IMF
New Delhi, February 15 At $ 25.4 billion (in terms of end-period stocks), the share of direct investment in total investment in 2002 has also increased to 17.8 from $ 20.3 billion which was 14.7 per cent of the total investment in 2001. As far as portfolio investments into the country is concerned, the IMF Yearbook 2003 said there has been only a marginal increase to $31.5 billion from $31.3 billion, during the period under review. Suggestive of strong fundamentals, the yearbook said loan component of the total investment actually fell to $ 62.7 billion from $ 63.9 billion, a decline of 1.8 per cent. India’s assets as part of its international investment position in 2002 stood at $73.7 billion, up 18 per cent from $ 62.47 billion in
2001. — PTI
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Wheat output to rise
New Delhi, February 15 “The crop is good and has been spurred by suitable weather conditions but our data, as of now, shows that an all-time record output is unlikely,” Directorate of Economics and
Statistics officials said here after preparing the Second Advance Crop estimates.
— UNI
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Thiruvananthapuram/ New Delhi, February 15 While officials of the Kerala-based bank maintain there would not be any major changes in the management following the death last week of its principal shareholder Ashwini Puri, banking sources say some shake-up is inevitable. Puri, who along with his family and associates owned 65 percent equity of Lord Krishna Bank, was found murdered in a luxury hotel in the Angolan capital Luanda on February 11. He had recently set up a factory in Luanda in collaboration with the Angolan government to manufacture leather boots and shoes for the Angolan military under the banner of his business group Mohan Exports. New Delhi-based Puri, who was a director on the board of Lord Krishna Bank, was one of the key persons responsible for transforming the old private sector bank into a new generation technology-savvy bank. “Although Puri’s death comes as a shock to all of us, the banking business is going on as usual across all offices in the country,” said R.M. Nayak, managing director of Lord Krishna Bank. “Puri was our majority shareholder and a director. But he was not a member of any of the bank’s crucial committees, and I do not see any immediate need for a change in the bank management,” Nayak said. He added: “We have no idea what the future plans of his family members are or whether other stakeholders are going to increase their stake in the bank.” Banking sources, however, say Puri’s son Mohan Puri may join the private sector bank as a director in place of his father.
— IANS
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New male contraceptive Inflation dips Reliance institute Lord Krishna Bank |
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Chandigarh, February 15
