SBI Life, the joint venture between State Bank of India and BNP Paribas, has launched a new Variable Insurance Product (VIP) called the Flexi Smart Insurance. Under this the customer would pay a minimum premium of Rs 1500 per month to subscribe and with the flexibility to pay premiums at yearly, half yearly, quarterly or monthly. This premium is liable to earn an interim interest of 7% during 2011-2012 apart from the additional interest rate declared at the end of the financial year.
VIPs were earlier known as Universal Linked Plan. Earlier IRDA issued a new guideline to change its name to VIP and also asserted that these products be offered only on non-unit lined products. SBI Life is the first to introduce VIP with the launch of Bima Account Number 2. The Flexi Smart Insurance is their second offering so far.
The VIP offers choices across different levels of risk exposure. It can also provide stable returns and safe investments for the risk-averse customers. The key feature is that it gives the customer to vary the assured amount as well as premium payment.
Find all that you need to compare and select the best insurance plan for you and your family. Be it Health Insurance, Life Insurance or Car Insurance.
Showing posts with label SBI Life. Show all posts
Showing posts with label SBI Life. Show all posts
Monday, July 11, 2011
Friday, July 8, 2011
SBI Life Faces Regulator's Ire
IRDA, the insurance regulator, has levied a fine of Rs 70 lakhs on SBI Life Insurance company for paying commissions to a master policy holder. As per the rules in India, Insurance companies can pay commissions only to life insurance agents, corporate agents or brokers, and not to a policyholder. There were 14 instances of commissions being paid, and IRDA has levied a fee of Rs 5 lakhs per instance, totalling to Rs 70 lakhs. SBI Life is a joint venture between SBI, India's largest bank and BNP Paribas Cardif.
In all insurance companies where one of the prominent share holders is a bank, the regulator needs to watch out for this particular practice: the bank which owns the insurance company bundles an expensive insurance policy with their loans disbursed. A retail or corporate customer, seeking a loan from the bank and at a moment in time when the bank is in a position of strength, cannot refuse the insurance policy. This is especially true if there are veiled indications that the loan disbursement itself might not go through if the preferred insurance policy is not bought.
In all insurance companies where one of the prominent share holders is a bank, the regulator needs to watch out for this particular practice: the bank which owns the insurance company bundles an expensive insurance policy with their loans disbursed. A retail or corporate customer, seeking a loan from the bank and at a moment in time when the bank is in a position of strength, cannot refuse the insurance policy. This is especially true if there are veiled indications that the loan disbursement itself might not go through if the preferred insurance policy is not bought.
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