Budget 2018: Tweaks likely in govt insurance schemes

THE UNION BUDGET TO BE PRESENTED ON FEBRUARY 1 IS LIKELY TO MAKE TWEAKS TO THE INSURANCE SCHEMES UNDER THE JAN SURAKSHA YOJANA, NAMELY THE PERSONAL ACCIDENT AND TERM INSURANCE. THIS COULD INCLUDE SOME CHANGES IN THE PRODUCT STRUCTURE AND REVISIONS IN THE PRICING.

The Union Budget to be presented on February 1 is likely to make tweaks to the insurance schemes under the Jan Suraksha Yojana, namely the personal accident and term insurance. This could include some changes in the product structure and revisions in the pricing.

The Jeevan Jyoti Bima Yojana or term insurance offers a cover of Rs 2 lakh with an annual premium of Rs 330. Similarly, the Suraksha Bima or personal accident scheme offers Rs 2 lakh cover for accidental death for an annual premium of Rs 12.

“We have sought certain tweaks in the product including some upwards premium revision as well as measures to curb fraudulent claims. We have been assured of measures to deal with this,” said a senior private sector insurance company chief.

These insurance schemes, along with Atal Pension Yojana was launched in May 2015 to provide accessible basic insurance covers for Indians at a nominal cost. The products are sold solely through bank branches for which they earn a small commission.

There have also been concerns about the slow pace of enrollment into the schemes. The personal accident policy has had more than 133 million policyholders while the term insurance policy has had 53 million policyholders.

“Banks could also be encouraged to sell more of the policies by offering a better incentive under the scheme. Some announcements are likely,” said a senior official associated with this development.

Fraudulent claims have been reported, especially from the cooperative and regional rural banks. Due to this, insurers said that claims have also been rejected for causes including fraudulent documents produced and incorrect declaration of facts. These could be tackled through changes in underwriting structure by the budget announcements.

To prevent misuse of the products, the terms of the PMJJBY policy state that the insurance cover will not be available for death (other than due to accident) occurring during the first 45 days from the date of enrollment into the scheme.

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Ola plans to go big on electric vehicles; may launch e-rickshaws soon

Ola's immediate task is to set up electric autorickshaws all over the country after looking at the success of Ola autos in Chennai and Bengaluru.

Cab aggregator Ola is setting up a team to design electric vehicles (EVs), including cars and auto-rickshaws, reports The Business Standard.

After the success of Ola autos in Chennai and Bengaluru, the company now eyes immediate coverage of electric auto-rickshaws across the country. Uber re-entering the auto-rickshaw segment vindicates Ola's investments in auto-rickshaws, sources told the paper.

Ola is believed to have had plans of manufacturing its own electric car, but called it off because of stiff competition from the existing car majors - Maruti Suzuki, Tata, among others.

Bajaj Auto and TVS are the only two major players in the commuter-auto-rickshaw segment. Mahindra and Piaggio are also a part of this market segment, but their focus is on ferrying goods. As of now, no major firm has entered the electric auto-rickshaw space.

"It makes a lot of business sense for a company like Ola to build its own electric auto, especially since the government is also pushing for electric vehicles. Ola owns the end consumer and their data, and tomorrow they will most probably become the largest consumers of auto-rickshaws anyway," experts told the paper.

Former Bajaj Auto Executive and now Ola's Senior Director (Electric Vehicle) Chinam Netaji Patro will look into e-rickshaws and technologies and partnerships in this segment.

According to the firm's statement, Ola brought him on board because, "Chinam is an auto industry veteran, who brings in deep understanding when it comes to assessing the right technologies for Ola and collaborating with the right partners so as to bring forward India’s EV ecosystem."

Masayoshi Son, the owner of Ola's largest investor SoftBank, dreams of bringing one million EVs to Indian roads, and in pursuing this dream Ola has already started its 'Ola Electric' initiative in Nagpur where cars have been procured from major car-makers such as Tata and Mahindra&Mahindra.

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If you own bitcoin, Warren Buffett's cryptocurrency predictions are scary. How to cope

If those ominous words aren't enough to stress investors out, earlier this week, the popular cryptocurrency ripple plunged almost 13 percent and bitcoin shed nearly 8 percent of its value.

Billionaire investor Warren Buffett says cryptocurrencies are headed for trouble.

"We'll never have a position in them," Buffett, chairman and CEO of Berkshire Hathaway, told CNBC's "Squawk Box" Wednesday morning. "I can say with almost certainty that they will come to a bad ending."

If those ominous words aren't enough to stress investors out, earlier this week, the popular cryptocurrency ripple plunged almost 13 percent and bitcoin shed nearly 8 percent of its value.

Owning an asset that's been called both a fraud and the future can be an emotionally intense experience. Best Stock Tips Adviser

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