There is No Fate But What We Make: January 2010

Monday, January 25, 2010

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:
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:

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

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’

AEGON Religare Life Insurance Co Ltd
Please visit us at

Saturday, January 16, 2010

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 :

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.

Thursday, January 14, 2010

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.