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In this issue- FChFP Results- Financial Planning- Lapsation clause- LUGI Annual Convention

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LIFE UNDERWRITERS GUILD OF INDIA

muhavar samachar

August 2010

muhavar samachar Product Communicator for insurance professionals from


Muhavar Samachar - Issue August 2010

THALAIVAR'S MESSAGE

There are times in life when we are over joyed, our

emotions filled with love and happiness. But life is a great

balancer. We also end up facing those moments we rather

not - the depression of not closing a sale, the feeling of

being lost and insecure about self. It is these moments that

actually teach us better lessons than those of our success.

There is a great saying which goes as “Nothing succeeds

like failure”. What a powerful yet simple philosophy. I

am sure you will agree that we all are so submerged in

joy of success that we fail to learn anything new. On the

other hand, failure awakens us. It throws us a challenge.

It questions our abilities, weighs our determination.

Allows us to think differently. That thought process is in

a way a stepping stone of innovation. Innovation is after

all creating new avenues that have not been explored. I

always tell my agent friends “ It doesn’t matter how many

mistakes you make, if you’re determined to finally do it

right”. There are many paths that bring success, but we

need to constantly validate the path that we take. Look

out for alternatives. Understand the circumstances, draw

a new plan. This will help us in keeping our eyes open to

new things. Things that can change the way we live and

lead.

Very often, it is such opportunities that motivate us to

rekindle our energies and renew our belief in ourselves. It

is also an important aspect of leadership. Because a true

leader is one who does not give up – neither on the issue

nor on his team. Everyone one of us has certain qualities

of leadership that need to be groomed, given shape and

direction.

I am glad to note that the 8th Annual convention of LUGI

to be held in September 2010 is based on the concept of

INSPIRE. It will definitely give the momentum to take the

lead, to set an example, to commit to our responsibility of

leading people to their dreams. I am hoping to see every

one of you there. I know that all of you have

the potential to hold fort for tomorrow. Simply

put, it is when you discover your strengths;

you discover a new way of life.

Bring out the leader in you. Create a better

future. Goo d luck.

(P.SRINIVASAN)

President



Muhavar Samachar - Issue August 2010Muhavar Samachar - Issue A

Success is stagnant. When accumulation of knowledge and expertise over years of experience reaches its peak, this juncture looks like the end. Yes, leadership qualities do bring us up here, but a true leader is one who moves beyond this point. Who doesn›t fail to realize that it is this elevated position from where one get›s a clear view of the way forward. It is here one recognizes a larger role, challenging all achievements and beliefs. From here a quest to explore possibilities of leading and guiding directs towards a new journey and a larger responsibility. A responsibility to inspire.

Inspiration is about being able to make a continuous impact that influences people in a positive way. Inspirational leaders possess a positive energy that draws people to commit and build a sustainable winning path for others. With the marketplace becoming highly competitive and consumer centric, only those who can innovate and think beyond the beaten path and create distinctly different platforms of service will move forward. That›s why we need leadership that is inspiring and involving.

INSPIRE, the 8th Annual Convention of LUGI will explore the influence of inspirational leadership. Experts and thought leaders will share their experiences and guide you to a more compelling space where you will understand yourself better. Participate and start your journey of inspiration. Take the lead.



Muhavar Samachar - Issue August 2010Muhavar Sam

M K ANGAJANAngajan is an accomplished management philosopher, behavioral scientist, corporate consultant, author and much sought-after speaker. He conducts value-based Executive Development Workshops and Seminars for senior corporate personnel, business executives, entrepreneurs, professionals, political leaders, scientists and other professional groups. His scientific rationale,

practical approaches and impassioned presentations, have earned him the patronage of many reputed corporations and organizations including Fortune 500 companies and several Business Schools internationally. Angajan›s book «Value Systems For Success» and a number of CDs and DVDs on various topics have received overwhelming response from intelligentsia. Angajan founded the Vedanta CenterforManagement and Leadership in India and South Africa. He resides in Durban, South Africa.

Speakers

C GOPINATHPopularly known as the moderator for various TV shows, Gobinath has been active in the media industry for over 12 years. He also conducts training sessions and workshops for students and professionals. These include areas like journalism, communication and personality development and interview techniques. He was selected as India›s best young journalist and anchor bytheAmerican government. India Today, honored him with the Young Achievers of India award for outstanding performance in TV and Radio. He was given the Vikatan award recognizing him as the best presenter. Gobinath has also written a book titled «Theruvellam Devadhaigal».

KARTHIK VYASMr. Kartik Vyas is acclaimed as a versatile, inspiring motivational speaker, corporate trainer and life coach in the fields of Professional-Personal-Spiritual Development, Behavioural Sciences, Yoga, NLP (Neuro Linguistic Programming), and Subconscious transformation. Over the last 25 years he has trained professionals at various levels including those of Fortune 500 companies. He is a faculty for various associations and training centers and has been a guest trainer at IIM Ahmedabad. As a corporate trainer, he leads seminars and workshops in a wide range of subjects in the fields of Leadership Skills, Communication Skills, Human Potential Development, and Yoga. He is the Director of Potentials Unlimited, -. Mumbai.



Muhavar Samachar - Issue August 2010Muhavar S

LENA TAMLVANANLena Tam iIvanon is a well-known name among the Tamil speaking community all over the world. He is apart of the team that is in-charge of the most widely circulated Tamil magazine Kumudam. KaIkandu, published by the Kumudam group and edited by Lena is very popular among the masses. He heads the editorial team of Manimekalai Prasuram which has 84 authors and has published thousands of books on a variety of subjects. He has authored more than 70 books, many of which have gained worldwide recognition. He has traveled to -; many countries, mostly addressing conferences as a key speaker. Lena, has won many awards and accolades for his contribution to the Tamil language and literary works. He is also a trainer, an inspiring orator and a sports freak.

RAJESH TAGORERajesh Tagore, a Salesman who transformed into Sales Trainer, is regularly hired by India's and world's largest companies. He has conducted more than 2500 workshops, seminars and training programs in all the major cities of India. He has trained more than 2000 Development Officers and more than 1 ,00,000 agents. His educational audio cassettes have also transformed many lives. Rajesh Tagore and NFIFWI Western Zone together have conducted more than 50 high energy motivational training seminars all over Gujarat, Maharashtra and Goo, and he also runs the 42km Standard Chartered Marathon held in Mumbai every year.

Speakers

SAJEEV NAIRSajeev Nair is a very successful entrepreneur, motivational trainer and a best selling author, helping people to make significant positive changes in life. He has already been recognized as one of the most powerful motivational speakers in Asia. He is the founder of Thought Process Re-Engineering (TPR); a unique program to bring in the positive transformations in an individual by working at the Neural levels. Sajeev Nair has authored books titled 'Vijayamanthrangol' and'Srushtikam Ningalude Lokam'. He has written articles on Management, Leadership & Success Principles. He has won several awards and recognitions such as'Top 50 emerging leaders', 'Business Sree', 'The Best Marketer of the Year 2003and'The Outstanding Young Indian Award'. He is the Chief Mentor of Bramma Learning Solutions, a Performance Solutions company.

S K SAMYSamy has been in the insurance business with Great Eastern for 28 years. He has achieved MDAfrom 1990-1993 & in 2000, 2004. He was also initiated to the MD PC in 1983, 1988, 1989 and 1993. So my is a MDRT qualifierfor 2003 and 2004. He qualified for the Supremacy award consecutively between 1999 and 2004 and for the Productivity award in 1991 and 1993. He is a Life and Fellow Planner and Marketer, a Fellow Chartered Financial Planner and a Registered Financial Planner. He has held and continues to hold positions as Chairman and President of several Councils, Associations and Forums. He is currently the Honorary Secretary of Asia Pacific Financial Services Association (APFinSA).




V.M. SASIKUMARSasikumar, Development Officer and SBA in LIC Salem South Branch, joined LIC in 1989 and has been the number one development officer in Tamil Nadu forthe last 3 years. He has a team of over 240 LIC professionals who have been trained and motivated by him. He is a member of the Rotary Club of Salem Central and of Salem Steel City Jaycees. He is considered to be a source of inspiration to many of his colleagues and team members. Sasikumor has delivered many addresses and is regarded as highly motivating speaker.

S SWAMI NATHANS.Swaminathan is a Power Motivator, Educator, Motivational Speaker, Soft Skills Trainer, HRD Consultant and Director of Asktenali.com. Thousands have benefitted through his seminars, workshops and lectures on Leadership, Management and Personality Development related topics. His workshop topics are creative, innovative, and inspirational and focus on shifting perspectives on leadership and life. Many Indian corporates and MNCs have benefitted from his training and work shops. He has also conducted Leadership and FacultyDevelopment Programs for various educational institutions. He has also appeared in number of TV programs on HRD topics. A widely traveled person, he speaks English, Hindi, Bengali and Tamil among several others.

Dr. VIJAY NAGASWAMIDr. Vijay Nagaswami graduated from the Madras Medical College and underwent post-graduate training in Psychiatry. He has served the Schizophrenia Research Foundation (India), as Deputy Director, as a Consultant to the World Health Organization and the International Labor Organization and headed the Human Resources Development function for a group of public limited companies. He has authored best sellers like "Courtship and Marriage: A Guide for Indian Couples", "The Splintered Mind: Understanding Schizophrenia" and "The 24x7 Marriage". He is a columnist for The Hindu and also conducts workshops and seminars for business corporations as well as individuals and couples on marriage and personal relationships management.

Kovalam is a beach town on the Arabian Sea in Kerala, a state in south India. It is located around 13 km from downtown Thiruvananthapuram. There are a large number of beach resorts in and around Kovalam. The sea port of Vizhinjam is about 3 km away and famous for its special varieties of fish, old Hindu temples, big churches and a mosque.

Perched on a rock-face, The Leela, a 5 star deluxe resort offers the most panoramic views of the famed Kovalam shoreline. It is sure to spoil you with a host of impeccable dining and entertainment options. The Leela Kempinski Kovalam Beach, has been nominated for the World Travel Awards 2010.

Speakers

Venue



Muhavar Samachar - Issue August 2010Muhavar Samachar - Issue

Registration Fee for Non Residential ProgrammePlan A : Single Payment on or before 07.07.2010 - Rs. 10,750Plan B : Single Payment between 08.07.2010 and 05.08.2010 - Rs. 11,500Plan C : Monthly Instalment Payments starting 25.06.2010 and ending 25.08.2010 Rs. 12,300 (3 post dated cheques required @ Rs 4,100 each)Plan D : Single Payment between 06.08.2010 and 20.09.2010 - Rs. 12,000

Those who wish to remit the payment under Plan D (Single Payment between 06.08.2010 and 20.09.2010) should send the payment by Demand Draft only. Cheques will not be accepted.

The package includes Conference materials and the following Date Day Facility 24.09.2010 Friday Mid Morning Coffee / Tea Lunch Mid Evening Coffee / Tea / Dinner 25.09.2010 Saturday Mid Morning Coffee / Tea % Lunch Mid Evening Coffee / Tea 26.09.2010 Sunday Mid Morning Coffee / Tea Lunch

The package does not include breakfast.Seats would be allotted strictly on first come first serve basis

Cheques/DDs are payable at Coimbatore in favour of Life Underwriters Guild of India - Seminar A/c For outstation cheques, add Rs.100 towards bank charges

A passport size colour photograph should be attached along with the enclosed participation confirmation form, duly filled without fail The registration fee once paid by the participants will not be transferred to any at member or refunded or adjusted for next convention

Payments can be made through Online or Electronic money transfer: Name of the Bank & Branch : Andhra Bank, Ramnagar, Coimbatore Name of the A/C : Life Underwriters Guild of India - Seminar A/c Account No : 048611100000210 (15 Digits) Branch Code (IFSC) : ANDB0000486 (11 Digits)Note : 1 . Send the scanned copy or photo copy of the challan for remittance made online2. Only on receipt of the challan copy, your registration will be confirmed Life Insurance Corporation of India have given accreditation to LUGI and have authorised the Chairman›s Club Members, to attend the LUGI Annual Conventior Members who are eligible to attend Chairman›s Club Convention, for the membership year 2009-10 may/can attend LUGI Convention and get reimbursement Spot registration will not be entertained Global Conference Management Group, Chennai is the authorised agent to arrange for accommodation for the convention. The address and phone no.s are Global Conference Management Group, Suit No. l , 6th Floor,New no. 279/281, Also Towers, Poonamallee High Road, Kilpauk, Chennai - 600 010.Phone : +91 44 31901926, Fax : +91 44 28262447 Email: [email protected] Website : www.globalconferencemanagementgroup.comContact Mr. Zahoor Sofi - General Manager Mob: +91 98843 91926Ms. Nandini Devi - Assistant Manager, Co-ordination Mob : +91 98418 61 164 Please remember that LUGI will not take responsibility for organizing accommodation and will not entertain any enquiries regarding accommodation facilities for the participants

Event8th Annual Convention of LUGI will be held at Kovalam Beach, Trivandrum from 24th (Friday) to 26th (Sunday), September 2010.

Convention VenueThe Leela Kempinski, Kovalam Beach, Trivandrum - 695527, India. Tel : +91 471 3051234, Fax : +91 471 2481522




FchFP Results

List of successful candidates for the examination held on 19.06.2010

Serial No

Student ID First Name PLACE Subject

1. 00011 R.MANI Chennai Risk Management

2. 00102 S.SARAVANAN Chennai Risk Management

3. 00105 D.SARAVANAN Chennai Risk Management

4. 00106 RAVI RAJA KRISHNAMURTHY.V.K Chennai Risk Management

5. 00107 N.THIYAGARAJAN Chennai Risk Management

6. 00109 MAHALAKSHMI RAVI Chennai Risk Management

7. 00111 K.DHANDAPANI Chennai Risk Management

8. 00112 S.RAMANATHAN Chennai Risk Management

9. 00113 B.NANDHAKUMAR Chennai Risk Management

10. 00129 CAPT. SHOBANA.C Chennai Risk Management

11. 00049 S.CHOKKALINGAM Coimbatore ESTATE PLANNING

12. 00052 K.JANARDHANAN Coimbatore ESTATE PLANNING

13. 00068 R.SRINIVASAN Coimbatore ESTATE PLANNING

14. 00076 S.KANAGARAJ Coimbatore ESTATE PLANNING

15. 00078 KUMARAVEL.R Coimbatore ESTATE PLANNING

16. 00079 MANIVANAN.G Coimbatore ESTATE PLANNING

17. 00080 S.MURUGESAN Coimbatore ESTATE PLANNING

18. 00082 ARUMUGAM PALANISWAMY Coimbatore ESTATE PLANNING

19. 00084 RAJKUMAR.R Coimbatore ESTATE PLANNING

20. 00090 N.VISWANATHAN Coimbatore ESTATE PLANNING

21. 00092 K.CHANDRA SEKAR Coimbatore ESTATE PLANNING

22. 00094 ARAVIND V MANI Coimbatore ESTATE PLANNING

23. 00095 P.ARUNAGIRI Coimbatore ESTATE PLANNING

24. 00131 S.GOPALAKRISHNAN Coimbatore ESTATE PLANNING

25. 00132 V.JAIKUMAR Coimbatore ESTATE PLANNING

26. 00136 R.KUMAR Coimbatore ESTATE PLANNING




Claim for Aircrash VictimsThe Air India Express plane crash in Mangalore on Saturday may result in one of the highest liability claim payouts in a plane accident so far in India.

The crash was the first major plane accident in the country on an international route since the ratification of the Montreal Convention by India. The 1999 Convention became effective for India from June 30, 2009. The Montreal Convention lays down

effect recently, the compensation limits on international route would be approximately Rs 70 lakh,” Aviation Expert in an international insurance broking company said.Last year, Air India had taken insurance cover from a consortium of four private sector insurance companies – Reliance General Insurance, HDFC Ergo, Bajaj Allianz and IFFCO-TOKIO. The leading reinsurer for Air India is Japanese major Mitsui Sumitomo.

Benefits of Meditation / Meditation Therapy

The benefits of meditation / meditation therapy is manifold. Meditation is a mental exercise, in which one focuses on breath or object or sound, in order to increase awareness of the present, to enhance one’s personality and bring about spiritual growth.

The English word ‘Meditation’ is derived from the Latin ‘meditatio’, which originally indicated all types of physical and intellectual

exercise. Another version points to Indo-European root “med”, meaning ‘to measure’ from which English words such as ‘medicine’, ‘modest’, ‘mete’ and ‘moderate’ are derived.

Meditation therapy is a technique or tool to look within to increase the conscious state. Meditation has been practiced for over 5000 years by Rishis, Yogis, medical practitioners, practitioners of Alternative medicine (Healers) such

as Reiki, yoga, pranic healing and even lay people. Meditation rejuvenates the body and mind and enables practitioners to rise to higher spiritual levels. It pulls the mind away from distractions, unwanted worries, anxieties and increases the inner strength. Meditation prepares a person mentally and physically for all challenges in life. It is the best method for students to increase

the guidelines and compensation standards for passengers in an international plane accident. The Air India Express flight was operating on the Dubai-Mangalore route.

Montreal Convention“As per the Carriage by Air Act 1972, the minimum compensation for death of each passenger in both domestic and international route was Rs 7.5 lakh. With the Montreal Convention coming into

their concentration and memory power.

Meditation is one of the best Alternative Therapies. It is a Mind-Body Medicine. It is a safe and simple method to balance a person’s physical, emotional and mental state. More and more doctors are prescribing meditation therapy along with their treatment to enhance and quicken the healing process.

Meditation therapy was predominantly an Eastern practice but is now popular even in the West. Meditation gives a chance to the practitioners to look within, conduct self-analysis and self-inquiry. If done well, meditation guides a person to fulfillment, atonement and salvation.

"Reading makes a full man, meditation a profound man, discourse a clear man." Benjamin Franklin

"When meditation is mastered,

the mind is unwavering like the

flame of a lamp in a windless

place." - Bhagavad-Gita




Group Health Insurance premium increases

Employees will have to pay more for the medicare of their dependent parents.This is because parents are being increasingly left out of group health insurance schemes offered by companies to their employees.According to insurance company officials, claim ratios are high in the case of parents and for insurers, this has become a loss-making segment.Therefore, they are now asking for higher premiums to include parents in the group health cover.

Additional premiumEmployers, on the other hand, are not prepared to pay additional premium for including parents. They think group insurance costs are already high.

Group health premium costs have gone up 15-20 per cent in the past one year. Notwithstanding this price correction, loss ratios in this segment are in excess of 100 per cent, says an officer with a private insurer offering group cover.

“In the group medical, parents are not getting covered, only spouse and children are. Even in cases where parents are getting covered, the rates are very high. Coverage limits are also being brought down”, said Dr Amarnath Ananthanarayanan, Chief Executive Officer, Bharti Axa General Insurance.

It is for the companies to decide on how comprehensive they want the insurance plan to be and the constituencies to be covered.

Some companies extend group health plan cover to the parents of employees but there are others that exclude them, said Mr Sanjay Datta, Head, Health, Customer Service and Accident, ICICI Lombard General Insurance.

Insurance companies fix the premium based on past loss ratios while renewing group health covers.

When the claim ratio is adverse — which is the case with parents — the insurers ask for higher premiums. Alternatively, they place other restrictions such as not offering cashless facility or asking the insured to pay a part of the hospital bills. Mr T. A. Ramalingam, Head, Underwriting, Bajaj Allianz General Insurance, said, “We do not exclude parents from the cover, but where we are faced with high claims, we increase the premiums”.

‘Co-pay'Normally, companies with higher health insurance budgets offer cover to employee's parents. Those with small budgets exclude them, said Mr Anthony Jacob, Chief Executive Officer, Apollo Munich Health Insurance Company.

According to Mr Jacob, the concept of ‘co-pay', where the employee also has to bear a part of the hospitalisation costs, is catching up.

“Insurance companies are increasingly adopting the co-pay model where the insured also has to bear a part of the costs. The insured has to bear anywhere between 5 and 25 per cent of the total hospitalisation expenses in the co-pay model”, said Mr Jacob.




STATION NAME OF TPA CONTACT NO. CONTACT PERSON CELL NO. OF CONTACT P

AHMEDABAD HEALTH INDIA PVT LTD 30612402 Mr. Imran Sheikh 98243772796th Floor, Krishna Complex, 30612403near Mitha Khali, 6th Road, 30612404Navrangpura, Ahmedabad - 380009 30612405

BENGALURU HEALTH INDIA (080) 41715056 Dr. Harish 9845905062 SREE COMPLEX, (080) 42826606 9740009752

208, St.John Road, 2nd Floor,Bengaluru - 560042

CHENNAI HEALTH INDIA (044) 2852 4671 Mr. A. Anand Raj 9841185995753, Mount Road, (044) 2852 4673Chennai - 600002

DELHI UNIVERSAL MEDI-AID SERVICES LTD. (011) 27033811 Dr. Punit 9868802080WZ-101/8 & 11, 2ND Floor, Rishi Nagar, (011) 27033812Capt. Satish Marg, Rani Bagh, Shakur Basti, (011) 27033813Delhi - 110034 (011) 27033814

HYDERABAD HEALTH INDIA (040) 65528550 Ms. Chandana 9246351550Door No.-3-6-151-152-153, Flat No.- 401, (040) 65529550

4th floor, G S TOWER, opp. to Trinetra Super Market,

Himayet Nagar, Hyderabad - 500 029

GURGAON UNIVERSAL MEDI-AID SERVICES LTD. (011) 27033811 Dr. Punit 9818192186WZ-101/8 & 11, 2ND Floor, Rishi Nagar, (011) 27033812Capt. Satish Marg, Rani Bagh, Shakur Basti, (011) 27033813Delhi - 110034 (011) 27033814

KANPUR RAKSHA TPA PVT. LTD., Dr. V K Asthana 941513043511/298, Souper Ganj,Kanpur - 208001

KOLKATA(1) MDINDIA HEALTHCARE SERVICES (TPA) PVT LTD 1860-233-4446 Mr. Subhadeep Banerjee 9830965498169, Sarat Bose Road, 2nd Floor,Kolkata - 700026.

KOLKATA(2) GRAND HEALTHCARE TPA SERVICES PVT LTD 1800-345-3315 Mr. Subhashis Chakravorty 983079505045A, Hindistan Park,Kolkata - 700029.

LUCKNOW RAKSHA TPA PVT. LTD. (0522) 5546595 Mr. Sudhakar Shukla 99352999003rd Floor, New Janpath Complex, (0522) 32022019A, Ashok Marg, Hazratganj,Lucknow- 226001

MUMBAI HEALTH INDIA (Bhaichand Amoluk ISPL) (022) 6755 7900 (30 Lines) Ms. Mugdha 9223268028Anand Commercial Co Ltd. (022) 6755 7919 (Direct) Dr. Raj Patil 9223316431103, B L C S Marg, Gandhi Nagar, 9322328833 (Mobile) Dr. Partha Sinha 9223214865Vikhroli(W), MUMBAI - 400 083.

NAGPUR (1) ARNEJA HEART INSTITUTE (0712) 2548721 123, Ramdas Path, Behind Someswar High School, (0712) 2548725

Nagpur - 10 (0712) 2527929

NAGPUR (2) SPANDAN (0712) 2443333 Off Chitali Marg, Behind Hitawada Press, Dhantoli, (0712) 6453333 Nagpur - 12

PUNE UNIVERSAL MEDI-AID SERVICES LTD (020) 2553 3076 Branch Manager 9325635121 1202, Ravikiran Appartment, (020) 2553 3077 Flat No.-10, 2nd Floor, Shirole Road, Opp. TATA Finance, Shivajinagar, Pune- 411004

RAJKOT HEALTH CARE Mr. Atish Mehta 9898588202 202, Century Building near Gujarat Samachar Press, Kantasree Vikash Gram Road, Rajkot, Gujarat, PIN- 360001.

TPA




PF claim settlement in a week soonThe Ministry of Labour is planning to reduce claim settlement time of provident fund from almost a month at present to seven days soon. The move, aimed at facilitating withdrawal from provident fund accounts, will be a source of relief for 6 crore account holders.

"We will be able to simplify the system after computerisation is complete. Our aim is to reduce settlement time to 7 days from one month at present," said Samirendra Chatterjee, central provident fund commissioner of Employees' Provident Fund.

The EPFO, which settles around 1 crore applications per year, is on a major drive to computerise all data lying with it. EPFO has already

among the regular accounts.

Although such accounts will not be given interest as a regular annual feature, when the account holder wants to withdraw the amount, he will get interest applicable on the date of withdrawal. But the EPFO is yet to decide on whether 1.1% administrative charges could be deducted from that.According to Chatterjee, about Rs 15,000 crore of unclaimed amount is lying with the EPFO for almost 2 crore accounts.

Meanwhile, EPFO is also planning to buy annuity plan for the pension fund account holder. "This will make the pension scheme more viable," Chatterjee said

Insurance firms,Providers met over the cashless insurance serviceThe members of CII National Committee on Healthcare and other stakeholders including AMC met up with the leadership team of the 4 PSU insurance companies (New India Assurance, Oriental Insurance, United India Insurance and National Insurance Company) and GIPSA in Mumbai, today.

There was an exchange of issues faced by all the stakeholders concerned in a collaborative setting. All the parties unanimous in their view that health insurance and insurance benefits are necessary for the growth of good healthcare in India.

However, there were concerns of the current process involving

the escalating and unsustainable claim ratios, and the optimum use of the insurance limit by the consumer during the entire policy period. To address these concerns, the insurance companies have commenced certain initiatives around Preferred Providers Network (PPN). The provider group wants an expansion of the current Preferred Providers Network (PPN) in order to enable the consumers get wider access through the cashless facility.

The insurance companies reiterated their current position of willingness to expand the PPN and in 90 days work with CII and other stakeholders to address areas of concern.

Mr. M Ramadoss, Chairman cum Managing Director, The New India Assurance Co. Ltd. felt that in order to keep Health insurance premiums affordable and viable all stakeholders including the consumers have to respect and maintain the integrity of the system. It was therefore felt that the higher level of consumer awareness is required to ensure that the process continues to be sustainable and beneficially to the consumers.

It was decided that the representative bodies of providers like CII will meet with insurance companies through TPAs to help expand the PPN through mutually agreeable terms.

computerised 28 regional offices and is computerising 56 at present. The computerisation is likely to be completed by next March.

"We are also looking at developing a system where challans can be given electronically," Chatterjee said. Such a system will be helpful in doing electronic payment by the employers and receiving account statements through internet. EPFO has asked all regional offices to prepare websites to facilitate such electronic transactions.

Present at an interactive session organised by the Indian Chamber of Commerce, he said that accounts remaining inoperative for three years will be blocked and will not be counted




Planning investments for retirement years

Senior Citizens’ Savings SchemeOne of the best options available is the nine percent Senior Citizens' Savings Scheme. The entry level to this scheme is 60 years of age. The scheme has a provision where an investor who has reached 55 years of age and has just retired can put the money received on retirement into the scheme.

This has to be undertaken within a period of one month from the date of receipt of the retirement benefits. Making this investment within the specified time limit will enable you to avail of the benefits. There is a limit of Rs 15 lakhs as the maximum amount that can be invested here. The interest received is liable to tax.

Small savings schemesAnother option is the small savings schemes such as the post office monthly income scheme. There is a maximum limit of Rs 3 lakhs in investments in a single name and Rs 6 lakhs for a joint holding.

One of the biggest challenges faced by retired people and those on the verge of retirement is ensuring a safe, reliable and continuous flow of income after retirement . Not all are covered under the pension schemes. While planning such investments, it is of utmost importance to ensure that the investments are safe, secure and offer a regular income so that you can maintain your lifestyle as it was before retirement.

Also, it needs to be ensured that the lock-in period is not too long. It is to be noted that over the years the options

available have shrunk to a bare minimum. Investing in the stock markets has

some pitfalls and cannot be relied on solely. A small proportion of your

investments may be earmarked for the stock markets . Income

from dividends as well as capital gains is volatile.

The return is eight percent. Income from this scheme is received monthly. Hence it is useful for those who require a regular payout.

Provident fundThen there is the Public Provident Fund (PPF), but the interest is receivable only on maturity. Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to PPF. There is a limit of Rs 70,000 in a year. An individual may also subscribe to the fund on behalf of a Hindu Undivided Family or an association of persons.

An individual, including a Hindu Undivided Family, can open only one account. A person having another PF account can also open a PPF account. More than one account or joint accounts are not permitted.

The PPF account can be opened in a head post office, or in a branch of the State Bank of India or its subsidiaries,

and also at specified branches of some other nationalised banks.

Mutual fundsWith the increase in interest rates, the debt-oriented mutual funds have taken a hit. Returns from medium to long-term debt funds have also dropped. So, floating rate funds or short-term

funds are better options.

For those with risk appetiteNow, on the risky side, is the stock market route or investments in equities and mutual funds. The dividends received from shares are free of tax. Stock markets are rising. So, you can look at additional income by investing in equity. However, this is a volatile and unreliable source, and cannot be relied on as a primary source of income.

The bulls and bear phases alternate, and the durations vary and are unpredictable. The amount to be invested here depends on the risk appetite of the investor. One has to evaluate the risk and reward ratio. If a higher return is required, then a higher risk needs to be taken through exposure to equity in some form or the other.

However, one cannot expect regular income from such sources. You can also consider investing in monthly income plans that have a low equity exposure and then move to balanced funds. While taking investment decisions, you should not lose sight of the tax considerations on income derived from the investments




Succession planning: How to pass on your wealth?Most of the people lack the will to write a will during their life time.

Absence of will leads to sheer confusion, after the life time of the individual, ultimately the successors do not enjoy the benefits.

The successors spend more time in courts and in registrar offices.

The purpose of this communication is to impress on our friends in LUGI the need to create a will whenever he creates a wealth or an asset.

Most of the people spend their working lives accumulating and building wealth with great care.However some amount of care is not shown to preserve and to pass on that wealth to the future generation, without any hitch. He who prepares succession planning or estate planning provides happiness to everybody. Simply put, a succession planning is a creation of a definite plan for managing wealth and distributing it after your death.

It encompasses all three distinct elements:1. Wealth Accumulation 2. Wealth Preservation 3. Wealth Distribution.

For most Indians, the probable succession planning is writing a will, that is the most traditional method.

A will is the legal document where you describe how your asset should be distributed in the event of your death.

Let me now explain to you how to make a will.

It is never too early for any individual to prepare a will.

Any individual who accumulates a property or wealth must necessarily record distribution of his wealth or asset in the will.

A will is very useful document.

It helps the smooth passing on of a person›s property to the people to whom he wants it to go.

In the absence of the will there could be many problems involved in establishing title to the property left by the deceased.

Wherever there is a property and will, the successions becomes easy.

The will also has a power to cancel nominations made for receipt of monies, such as insurance and bank deposits.

When a person dies without having made a will he is said to die intestate. The beneficiaries under a will are called legatees or donees.

A will is very simple document. It is very easy to make.

It need not be written on a stamp paper. Just a plain paper will do.

It need not be typed. Handwriting will do.

There is no need for it should be written by a lawyer or a magistrate.

There is no need to register it.

However it is advisable to do so.

The following are the important conditions.1. A person who is writing a will should be in a sound state of mind. He must judge and write a will. 2. He should sign the will and get it attested by at least two witnesses. A will should preferably be witnessed by independent persons outside the family circle. It is advisable not to make any one of the beneficiaries to witness.In addition to the above conditions the following aspects may be noted.1) Each property to go to whom and when should be clearly spelt out.




2) If any legal heir is excluded then the reason should be recorded.Sometimes people can appoint an executor to see that their wishes expressed in the will are carried out.However appointment of executor is not mandatory.When properties are large then an executor may be helpful.One of the beneficiaries under the will himself or herself can be appointed as an executor.A person can cancel or change a will at any time during his life time.We can make any number of wills and only the last will holds good.Registration means taking a legal document to the office of the registrar and requesting him to take a note of it in the official register.Registration is advisable.What happens if a person dies intestate (without leaving any will), then his or her property passes to the

legal heirs of the person depending upon the personal law of the deceased i.e. Hindu, Muslim or Christian etc.,As far as Muslims are concerned there are some limitations as regards the will.A will is to be kept safely.A will can also be deposited with some banks.I believe this information should be helpful to you and to others.This is an add on service rendered to LUG[ members.A draft of the standard will is enclosed. I will be happy to get your observations at your earliest convenience in the enclosed self addressed prepaid post card.Regards, (P.SRINIVASAN) President

DRAFT OF A STANDARD WILL

I, (name), son/daughter of (father›s name) aged about ..... years, residing at (full address) hereby revoke all my previous wills and codicils, if any, and declare this will made at (address of the place where the will is being executed) in sound disposing state of mind on this .... day of (month) in the year ......, as my last will.

I hereby devise and bequeath all my properties both movable and immovable including monies in banks and other places, debts and monies due to me shares and securities, ornaments, furniture, equipment and all other forms assets which I now own or which I may become entitled to in future and remain undisposed of at the time of my death in favour of (name, relationship, age and address of the person to whom the property is being bequeathed) with absolute ownership and full power of disposal.

I hereby constitute and appoint (name and address) as executor.

This will shall come into effect only after my death and I have the liberty to revoke or alter this will during my lifetime.In witness whereof I have signed this will in the presence of the undermentioned persons who have attested this will as witnesses thereof in my presence.

Place: Date: Signature of the testator Name of the testatorWitnesses:1. Signature 2. Signature Name Name Address Address

Note:This is a draft of a will where the testator is giving all his property to only one legatee. Where property is to be given to more than

one legatee either equally or in specified shares the wording will have to be altered suitably.

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