Does this explain Aegon Religare's profits?

A copy of my email sent to Aegon Religare
Hello xxxx,

hope you are doing well. i was looking at the IRDA's annual statement recently.
It seems there were 7 claims in the whole year and 5 of them rejected/repudiated.
I have attached a screenshot of the relevant page from IRDA's report.
You can get the whole report from here:
http://www.irdaindia.org/annualreport09/annual_rep_eng_09.pdf
The relevant report is page #151.
Aegon Religare's Claims repudiation ratio is above 70% !!!
This is rather extreme. No other insurance company has it so high.
LIC's figure is 1.33%
No other private players' number is so high.
How would you explain this?

I hope this is not what explains the profit numbers of Aegon Religare.
As a person who has bought life coverage from Aegon Religare, i am very nervous about this.


--------------------------------------------------------------------------

From: XXXX Chowdhury
Sent: Fri, January 8, 2010 1:19:11 PM
Subject: Press Coverage- Aegon Religare posts profit

Dear all,

Attached are the scans of the coverage we’ve received:

Yesterday:
In the Financial Express under the headline ‘Life Insurer’s losses soar 43% in FY09’.

Today:
Ø In The Hindu Business Line under the headline ‘Life Insurers’ losses mount 43% in FY09’.
Ø In The Economic Times under the headline ‘Insurance aggregators leave you spoilt for choice’.
Ø Indian Express on web, under the headline ‘Insurance firms widen Net, tap online market’
http://www.indianexpress.com/news/insurance-firms-widen-net-tap-online-market/560856/

Regards,
xxxx
AEGON Religare Life Insurance Co Ltd
Please visit us at www.aegonreligare.com

LIC promises 35% returns! No one can beat that!

Just see this letter from LIC chief manager pitching an LIC policy. And they say there's no mis-selling!




"Jeevan Saathi Plus of LIC was launched on 29/06/2009. The units became NAV based (initial NAV of Rs 10)
on 29/06/2009. Current NAV of Growth fund as on 13-Jan-2010. is Rs. 11.5500 Average annual growth is :
24.96%

If we hypothetically assume similar performance of LIC in managing the fund of Market Plus-I, then the
benefits can be projected as under....."

I am stunned at this. IRDA has clearly instructed Insurance companies to project returns based on 10% and 6% nominal returns.

Complaint sent to IRDA on Jan 14, 2010

misleading advertisement by LIC employees

Hello Sir,

i am a policyholder of LIC. Please see the advertisement LIC has sent me. It claims to provide 30% returns.
This is not an advertisement from an unscrupulous agent. But seems from the LIC branch directly.
I called the cell number provided and the person (Mrs. Jayasree Krishnan) claimed to be a
Chief Manager of LIC's N.R.Square branch. She claimed that 10 lakh invested in this policy
would become 1 crore in 10 years. This is an IRR of around 30%.
I feel that this kind of advertising is misleading and customers are being cheated.

According to IRDA guidelines the project returns should be based on a nominal returns of 10%
and 6%. In light of this, this advertisement is a violation of IRDA guidelines.
I hope you take action against such practices so that customers are not cheated.

Please find a copy of the advertisement attached.

regards,
Sumant