Insurance Cos asked to issue digital policies, use DigiLocker by IRDAI

Insurance sector regulator Irdai has asked insurers to issue digital policies to their policyholders and also tell them how to use these documents,...

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Insurance policy documents can be saved in Digilocker, says IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) told insurers to enable their IT systems to interact with Digilocker facility to...

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LIC IPO: 10% of issue size reserved for policyholders

Up to 10% of the LIC IPO issue size would be reserved for policyholders, Minister of State for Finance Anurag Thakur said.

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IRDAI Mandates Insurers to Offer Standardized Life Insurance Starting 2021

Irdai has come out with the guidelines for a standardized individual term insurance mandating all life insurance companies to offer these policies...

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Half of term policy buyers opt cover of Rs 1 crore or more during April-August: Policybazaar

More and more people are going for a term insurance plan giving cover of Rs 1 crore or more to financially protect their family, reveals data...

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Life Insurers new business premium reports positive growth for second straight month in August

India’s life insurance industry continued to see growth in new business premiums (NBP) in August for the second straight month, writes The...

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LIC policyholders can now submit maturity claim documents online

To settle maturity and survival benefit claims, Life Insurance Corporation of India (LIC) has asked policyholders to send scanned copies of their...

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Life insurers new premium collections drop 32% in March

Life insurance players saw nearly all financial metrics such as sum assured, first year premiums, policies issued, and lives covered decline...

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LIC policyholders given 30 day relaxation for premiums due in March, April in wake of Covid-19 distress

The Life Insurance Corp of India (LIC) has announced a month-long extension for all policyholders whose premiums fall due in March and April in wake...

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IRDAI’s new guidelines to bring relief to group insurance customers of merging PSBs

The IRDAI has issued guidelines to protect the interests of customers of merging public sector banks who are also group insurance policyholders,...

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • The investools will have to be reworked and will offer model portfolios. We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder