Combat Volatility like a pro with Mahindra Manulife Arbitration Yojana mutual fund

Who would have thought that a majority of Indian PSU banks would be trading below Rs 50? Who would have predicted that Pharma shares would be touching sky high within a few months? There were only a few market gurus who could predict the unprecedented move of RIL in just 50 days. Analysing our sensitive stock market in tough especially in the unprecedented & unseen times like these. But investing must not stop as Ups & Downs are a part of our lives as well as markets.

Market analysts rely on INDIAVIX index during such strange times. Basically its an index which charts the future trajectory of the market cycle. When the lockdown was announced, the INDIAVIX index jumped from 10 to 80 within a fortnight. As they say, only 5% of investors make the most of such occurrences and the rest 95% end up losing their hard earned money. The damage was such that most investors even today think twice before averaging their pre-covid investments. People who traded each minute, each day during the market hour were afraid to check their trading portals.

It’s funny when they say, “When the bulls climb they take the stairs & when the bears fall they jump through the window”. The general perception was so skewed that when the market media cried a No Buy on a certain stocks and funds there were investors who took a leap of faith & made it big!

Are you aware that there is a mutual fund which can make money on both rise and fall of the market cycle? Mahindra Manulife Arbitrage Yojana is an open ended scheme for investment in arbitrage opportunities available in equity, derivatives, debt and invIT markets. Arbitrage Mutual Funds are moderately low risk investment that can generate you an income through arbitrage opportunities in cash and derivative segment. Volatility gives an investor more opportunity in cash & futures/options market. Arbitrage Mutual Funds though they invest in equity are generally considered as safe investment pick and investors making loss in this kind of investment is yet unheard of.

Depending the upon the market conditions, Mahindra Manulife Arbitrage Yojana can hedge the risk by switching between Debt & Equity investment. At times a stock is available at different prices in two exchanges. For instance, stock A is trading at Rs 1000 on NSE & Rs 950 on BSE at the same time, then the spread of Rs 50 between both exchanges acts as your profit.

Another strategy that is often used by fund managers is cash & carry arbitrage. For example, buy stock B at Rs 1000 in spot market and sell the same contract of stock B in futures market at Rs 1020 with a lock-in profit of Rs 20. It is one of the least volatile hybrid schemes that is suitable for investment across market cycles.

What differentiates Mahindra Manulife Arbitration Yojana from other liquid funds is that when you exit the fund, the credit is reflected in your account the very next day. Being an equity based fund hybrid arbitrage mutual fund, the market position gets closed immediately giving investors an instant margin facility. The scheme offers better tax efficiency on returns compared to other short-term debt funds. Also, there’s no exit load after the period of 30 days.

It’s a win-win-win situation wherever the market heads. Mahindra Manulife Arbitration Yojana is best suited for investors who are looking out for Short Term investment parking pool with investment period varied from 1 month to 6 months.

The NFO opens for subscription on August 12 and closes on August 19. The scheme will reopen for continuous sale and repurchase from August 25.

Investors can invest online in the scheme from here.

Mahindra Manulife Arbitration Yojana MF scheme details

Fund House: Mahindra Manulife Mutual Fund

Issue opens: 12 August 2020

Issue close: 19 August 2020

MF category: Hybrid

Type: Open ended

Minimum Investment: Rs 1,000

Exit Load: Nil, after 30 days.

Plans: Growth, Dividend

Benchmark: Nifty 50 Arbitrage Index TRI

Riskometer: Moderately Low

Fund Managers: Srinivasan Ramamurthy & Rahul Pal

Disclaimer: Investment subject to market risk. Please consult your financial advisor before investing.

#IRMA2019: Key insights from ICICI Lombard’s ‘Managing New Age Risks’ survey.

Technology, as we know, has become an integral part of our business enterprises. Industrial Revolution 4.0 which connects physical devices with electronic devices comes with new kind of risks. As the world is getting increasingly interconnected, everyone shares the responsibility of securing our cyberspace. Adopting preventive measures and cyber risk mitigation tools has become the need of the hour.

ICICI Lombard, India’s leading private sector general insurance company has commissioned a PAN India survey titled ‘Managing New Age Risk’ to assess the preparedness of Indian organisations towards new age risks. A detailed feedback of CXOs from 100 companies across various sectors was taken for this research.

Corporate dependence on insurance to cover the risk of cyberattacks is expanding in line with their increasing reliance on tech for everything from invoicing to engaging consumers on social media. Next-gen technologies such as Artificial Intelligence, Robotics, Cloud, Blockchain, IoT etc. are associated with new age risks like cyberattacks, data theft, cloud hacks etc. India was the target of 17% cyberattacks, second only to US (38%) between 2015- 2017 as per report released by Symantec Corp. The Indian Computer Emergency Response Team (CERT-In) reported 53,081 cases of cybercrime in the year 2017. More than 40,000 computers in India were jeopardised by Wannacry ransomware attack. Recently, a Pune-based co-operative bank lost nearly Rs 94 crores when hackers operating from abroad breached bank’s ATM servers.

As cyberattacks become more frequent and severe, the need for solid insurance coverage to plug potential financial losses is in demand.

ICICI Lombard’s ‘Managing New Age Risks’ survey delved into understanding the risks that Indian Inc. perceives as critical for business. It also looked at the role of insurers in managing risks from the lens of Indian firms. The survey findings were unveiled by Mr. Bhargav Dasgupta, MD and CEO, ICICI Lombard in the august presence of Prof. Kenneth Rogoff, Professor of Economics & Public Policy at Harvard University and a former Chief Economist at the International Monetary Fund.

The report highlights that companies still consider traditional risks as extremely crucial for their business. CXOs believed that assets like property, machinery and health & wellness of employees are pivotal risks and are needed to be insured. When asked about which risks have been gaining importance in the last 3 years, the response was clearly for new age risks such as hacking, data theft etc. 67% of India Inc. believes data thefts have increased substantially from the last 3 years, 63% feels that risks from cybercrime have increased substantially in the same period.

In terms of challenges to handle risks, 43% CXOs find new age risk incident to be unique, while 42% found it even difficult to identify the source of an attack, making it a tough task to manage. 21% company executives believed that new age risk incidents spread too fast, making it difficult for firms to handle them.

Lack of internal capabilities was a key takeaway when it came to preparedness of organisations in managing new age risks. 41% respondents believed that their existing systems were not equipped to handle these risks, while 39% respondents felt that there was a shortage of skilled manpower that could address these risks. 71% of respondents said that prevention of new age risks is the best way to deal with e-risks.

On the role of insurers, 81% companies believe that insurers are equipped to a certain extent in managing new age risks. Specifically, companies believe that insurers are better equipped to manage risks such as cloud computing (100%) and cyberattacks (69%). However, a majority of CXOs believe that e-risks like data thefts can be better managed internally.

“New age risks are already a reality today, globally and in India. It is most critical that Indian firms take cognizance of this aspect. As is evident from ‘Managing New Age Risks’ survey, being prepared and having the right risk management framework in place is the need of the hour. ICICI Lombard is partnering with their clients to ensure that they are equipped with appropriate and adequate ‘risk management and mitigation’ solutions to effectively handle any prospective new age risk incidents.” - Mr. Bhargav Dasgupta, MD & CEO, ICICI Lombard.

In the digital age, cyberattacks will face a sharp incline in the years to come. Corporates and Insurance companies will have to combine synergies to fight these new age cyber risks in the interest of customers.

- Chaitanya Kulkarni.

COCO by DHFL General Insurance is here to transform the “Sold, Not Bought” aspect of Insurance.

Students studying in the field of Insurance are practised to believe in the thought process of “Insurance is Sold and Not Bought”. This is even considered as conventional wisdom for veterans working in the insurance industry. Many people claim that insurance products are complex, easily misunderstood, need a detailed analysis to be underwritten, and therefore have to be “sold” to customers. But for how long? With the advent of technology, InsureTech firms are here to demystify the age-old concept of “Sold, Not Bought”. Insurance companies are not just going to B2C but the customer too is keen for best value offering.

In the age of where everything is going digital, insurance companies are offering new products through the digital ecosystem. The key advantages for consumers choosing digital insurers are product choice, transparency, direct point of contact etc. COCO by DHFL General Insurance believes in the Philosophy of Connected Covers – a policy which can be bought, reviewed, claimed and renewed, all online in the digital ecosystem with the help of next-gen techs like Artificial Intelligence and Machine Learning.

COCODrive offers India’s highest Personal Accident Cover

COCO by DHFL General Insurance has launched India’s first customizable online comprehensive car insurance policy named COCODrive. Gone are the days when consumers were forced to buy unwanted services in bundled insurance policies. Busting traditional routes, COCODrive gives freedom to customers to choose from whopping 19 add-ons depending upon the type of car, the age of a car or geographical area.

The a`la carte approach in the COCODrive policy provides suggestions to customers that will help them pick the right add-ons suitable for their need. COCO by DHFL General Insurance ensures that customers have the right protection for themselves, their loved ones and of course their family car.

COCODrive offers India’s highest personal accident cover which can go up to Rs 35 lakhs. The policy offers many non-standard add-ons such as enhanced owner, occupant and paid driver personal accident cover. While the recent Supreme Court decision mandates personal accident cover of Rs 15 lakhs, COCODrive is the only product in the market to offer an enhanced personal accident cover that can go as high as Rs 35 lakh.

Protecting your loved ones: Family + Car.

Choose what you want! COCODrive offers a range of crucial add-ons for you, your loved ones and your car. COCO by DHFL General Insurance offers 6 car related add-ons out of a total number of 19 add-ons, which is the highest in the market.

Using a car which is older than 5 years, then you should buy Zero Dep cover as it fully pays the replacement cost of your car’s damaged parts without worrying for depreciation. If you live in monsoon prone areas like Mumbai, Bangalore, Kerala or North East which face excessive floods every year. The Engine Protect add-on cover pays for damages caused to the vehicle’s engine or its most important parts like cylinder, piston, crankshaft, pins, gearbox etc due to water ingression. Flood related damages are excluded in the standard motor insurance policy and it is essential to buy if you live in low lying areas. Also, car owners should avoid parking your car in the flood prone areas or over a river bridge during monsoon. A car fully submerged under water can result in a total loss. In such unfortunate case, New Car for Old Car add-on can get you a claim worth the cost of the new vehicle at just Rs 0.50 per day.

In case of a vehicle breakdown or meeting with an accident, the Roadside Assistance offers a host of benefits including towing, battery jump start, phone assistance etc. Data analytics suggests that 80% of breakdowns or accidents happen on National Highway, far from the city. In such case, if your vehicle can’t be repaired on spot, the Emergency Transport and Hotel Stay add-on covers for your last minute travelling charges or an overnight hotel stay. Accidents generally end up in a need to go to the hospital, although we dislike it. The Accident Hospitalisation add-on will ensure that the cost of medical expenses (driver and occupants) do not add to your pain.

COCODrive rewards you for Safe Driving with No Claim Bonus (NCB) which can go high as 50% of the policy value. The NCB Secure add-on allows you to have Second Chance by protecting your NCB in case you make 1 claim during your policy tenure.

#CareMoreHaveMore

COCO by DHFL General Insurance Ltd is a new age InsureTech (general insurance venture) promoted by Wadhawan Global Capital Pvt Ltd (WGC).  COCO by DHFL General Insurance, a 100%  owned entity of WGC started its business operations in November 2017 with an overreaching ambition to transform General Insurance domain in India. COCO has launched Motor Insurance and is soon going to venture into other General Insurance segments namely Health, Travel, and Home. COCO, the digital avatar of DHFL General Insurance was awarded for ‘Brand Excellence in BFSI’ at Awards for Excellence in Branding and Marketing, Singapore 2018. The Gross Written Premium for YTD FY 201819 stood at Rs 202.71 crores, making COCO by DHFL General Insurance a leading InsureTech firm to service Indians.

- Chaitanya Kulkarni.

#TheIndianCapitalist: All You Need to Know about the LIC - IDBI Bank Deal

The much-awaited LIC - IDBI Bank deal has finally received the green light from the apex regulators and the union cabinet. India’s largest insurer, the Life Insurance Corporation (LIC) will now have a controlling stake in the IDBI Bank, one of India’s leading nationalised bank. With a rich legacy of industrial financing for more than 50 years, IDBI was converted into a banking company ie. IDBI Bank Ltd. - to undertake the entire gamut of banking activities across the length and breadth of India. IDBI Bank has serviced millions of Indians through a wide array of banking products and services from its 1900 plus branches and more than 4,000 ATMs.

In August 2018, the Union Cabinet chaired by PM Modi had approved conveying of no objection to the reduction in Government of India shareholding in IDBI Bank to below 50% by dilution. It had also approved the acquisition of controlling stake by LIC as a promoter in the bank through preferential allotment/open offer of equity, and relinquishment of management control by the Government of India in the IDBI Bank.

The approvals on LIC- IDBI Bank deal from Union Cabinet was followed after Securities Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI) go ahead on the same. The IRDAI, in June 2018, gave a one-time exemption to LIC to acquire a 40 per cent stake in the IDBI Bank, taking its total holding in the lender to over 51 per cent.

Financial experts are of an opinion that both LIC and the IDBI Bank would be benefited with this transaction. Both the entities will gain in terms of their reach through extensive customer and network base. LIC will get access to IDBI Bank’s 1.6 crore customers and 1,900 branches to sell its insurance products while IDBI Bank may further earn fees and float income from LIC customers that will boost its income and bring down the cost of funds. Also, the reach of LIC would be beneficial for IDBI Bank to target rural and semi-urban segments. The strong financial backup from the LIC brand would help IDBI Bank in its NPA resolution plan.

LIC – IDBI Bank Deal: The Way Forward

LIC is India’s insurance mammoth. Its brand value is immense; a renowned name for every Indian. One out of six people in India has an LIC policy. With a financial inclusion outlook already being saturated in the urban and semi-urban markets, IDBI Bank could reach rural segment with the reach of insurance agents. The Bank can leverage the bancassurance tie-up with LIC as also augment its ability to market its products and services. Taken together, the LIC home finance and the Bank’s home loan portfolio would be the biggest in the segment for the industry as a whole. This could act as a major growth driver for the Bank and could contribute immensely towards its revenues.

The Reserve Bank of India (RBI) and the Ministry of Finance have shown its strong commitment towards the NPA resolution. Independent media think tanks say that as much as Rs 4 lakh crores of bad loans have returned back to the system because of the new Insolvency and Bankruptcy Code (IBC). RBI is set to refer 12 big NPA accounts to National Company Law Tribunal (NCLT) under the new IBC code. IDBI Bank has received as much as Rs 329 crores as interest income from Bhushan Steel resolution. Media reports suggest that IDBI Bank has also moved to NCLT as a lead banker against Reliance Naval, Lanco Infratech, Jaypee Infratech etc. for bid-based resolution or liquidation for a quick recovery.

Amidst the NPA debate, the financial reports of IDBI Bank shed light on the bank’s lending potential in the long-term horizon. The bank reported an increase in operating profit by 71% to Rs 7907 crores during FY 2018 from Rs 4690 crores in FY2017. Recovery and up gradation improved to Rs. 6,231 crore during FY 2018 from Rs. 4,849 crore during FY 2017. IDBI Bank reported exponential growth in Current Account Savings Account (CASA) deposits and is expected to rise further after the LIC – IDBI Bank transaction.

TheIndianCapitalist.com is of an opinion that the LIC – IDBI Bank deal is a win-win for both the entities. The brand value of LIC and strong lending portfolio of IDBI Bank will create synergy and endless opportunities for millions of MSME lenders and policyholders.

- Chaitanya Kulkarni.

Dream big, set life goals and invest wisely!

With the changing times, priorities of today’s aspirational India have changed. Let’s start with the most amazing question. WHAT DO YOU REALLY WANT TO DO? A 23-year-old me would want to do an epic road trip from Mumbai to Tawang before I turn 25. A 30-year-old would plan to spend a week on privately owned island luxury resort in Seychelles.

Life is full of surprises and adventure. People inspired by the idea of new adventure may be interested in bungee jumping, surfing or rock climbing. With an advent of globalisation, people are looking for satisfaction beyond settling down in life.

Life coach experts believe that one should plan strategically and focus on realistic goals. Activities like adventure tourism, world travel, international executive educational degrees, destination wedding have become equally important when compared with a steady job or family-run business. As life has evolved, so have the life goals.

To achieve all of your #LifeGoals, one needs to systemically plan his/her financial investments. That way, you will always get what you want. With sound financial planning and sound financial investments, life maximisers can get maximised benefit from their investment.

To achieve life goals which you will cherish for the rest of your life, one needs to think beyond the regular savings approach. The mix of security and long-term return investments could easily beat inflation and help you maximise your savings. This is where ULIPs stand apart as the perfect investment product.

ULIPs or Unit Linked Insurance Plan is a long-term investment plan that offers the combined benefit of investment and insurance. These plans invest a portion of your premium in capital markets and allow you to invest in debt, equity or balanced funds depending upon market conditions or your risk appetite. To mobilise the best of your hard-earned money, capital market investments under ULIPs are managed by experts who can maximise your investments according to the market conditions. ULIPs bring a modern-day approach towards insurance investing.

Bajaj Allianz, one of India’s leading private insurer has launched value-packed goal-based ULIP. Bajaj Allianz Life Goal Assure, a one-of-its-kind ULIP, has been designed to provide investment benefits and life cover to life maximisers, the new generation of investors in India.

Bajaj Allianz Life Goal Assure has two unique benefits that are one-of-theirs-kind for ULIPs in India. One of the key features is Return of life cover. This feature of Bajaj Allianz Life Goal Assure guarantees that the policyholder will get back the cost of life cover when the policy matures, thus enhancing the value of their corpus on maturity. Furthermore, for those who do not opt for one-time lump-sum maturity benefits, the Return Enhancer feature of this plan offers 0.5% additional returns on periodic instalments over the period of five years. During this period, the customer's fund value will continue to participate in funds of his or her choice.

In addition to these features, Bajaj Allianz Life Goal Assure offer value-packed benefits like Fund Booster, wherein an additional fund-value amount is added on the date of maturity. For long-term investments above Rs 5 lakh annually for more than 10 years, loyalty additions are added to the fund value as a reward for paying premiums regularly and staying invested in the policy. There are also options to decrease sum assured, change Premium payment terms and unlimited free switches between funds for return maximization. Investors should also note that investments in ULIPs enjoy tax benefits under Section 80C and 10(10D).

Finally, one must also look at the legacy of Bajaj Allianz Life’s fund performance. The company has a reliable company portfolio which has consistently delivered one of the best CAGR returns, breaking benchmark indices over a long-term horizon of three, five and ten years. Most of the ULIP funds from Bajaj Allianz Life Insurance enjoy high performance rating from the coveted Morning Star ratings agency.

People who constantly on-the-go can visit Bajaj Allianz Life Insurance official website. The revamped website is designed to guide customers through every step of their Life-goal planning and purchase. Dream big, stay invested and achieve your #LifeGoals.

- Chaitanya Kulkarni

Ayushman Bharat health insurance will cover 50 crores Indians in just Rs 12,000 crores

Saifee Hospital, Mumbai

Ayushman Bharat aka ModiCare will be the world's largest government-sponsored health assurance scheme.

How much does it take to cover almost 50% of India's 'mammoth-size' population? Not much, actually. The useless debates on the Indian media and the over-estimation by India's weak opposition would have come to halt if both of them would have done some basic research. Forget research, most of these daily debaters didn't even invite insurance experts on the panel. Although the budget 2018 brings a ray of hope for farmers and India's poor, Indian media was disappointed with little changes in tax slabs. Some sections of Indian media being completely clueless starting calling Ayushman Bharat as 'a hoax to win votes'.

Swasth Bharat = Saksham Bharat

The general budget 2018-19 was aimed at making path-breaking interventions to address health holistically, in the primary, secondary and tertiary care systems, covering both prevention and health promotion. 

The initiatives are as follows:-  

Health and Wellness Centre:- The National Health Policy, 2017 has envisioned Health and Wellness Centres as the foundation of India’s health system. Under this 1.5 lakh centres will bring health care system closer to the homes of people. These centres will provide comprehensive health care, including for non-communicable diseases and maternal and child health services.  These centres will also provide free essential drugs and diagnostic services. The Budget has allocated Rs.1200 crore for this flagship programme. The contribution of the private sector through CSR and philanthropic institutions in adopting these centres is also envisaged.

National Health Protection Scheme:- The second flagship programme under Ayushman Bharat is National Health Protection Scheme, which will cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to 5 lakh rupees per family per year for secondary and tertiary care hospitalization.  This will be the world’s largest government-funded health care programme. Adequate funds will be provided for smooth implementation of this programme.

The National Health Protection Scheme aka 'ModiCare' will be the world's largest government-sponsored health assurance scheme. The much-appreciated ObamaCare in the US had approximately 30 crore enrollees. The United Kingdom through its National Health Services offers free healthcare to its 10 crore ordinary citizens at public hospitals. The 2017 UK budget allocated 6.3 million pounds for spending in NHS. India's newly announced NHPS will cover all of India's 50 crore poor citizens at the public as well as the privately operated hospitals.

'ModiCare' will cover nearly 50% of India's population is just Rs 12,000 crore

Insurance experts firmly believe that India's 10 crore poor families can be covered in just Rs 12,000 crores. Since healthcare is a state subject, 50% of the cost of premium will be borne by state governments. Rs 6,000 crore annually, from the central government is a small amount of India's 25 lakh crore general budget. As India grows, the 'ModiCare' scheme is likely to be expanded to all of its 128 crores + citizens and later we be can even be linked with retirement benefits, like the one's offered in ObamaCare. Currently, only 5% of India's population is covered by a health insurance.

Health insurance for India's poor is a not an initiative, as India's weak united opposition said. The Rashtriya Swastha Bima Yojana covered most of the blue-collar workers with Rs 30,000 year. The newly announced NHPS has been a talk-of-the-nation as Rs 5 lakh per year is enough to treat life threating diseases like cancer or cardiac illnesses. Various states in India have announced health insurance scheme but only Rajasthan's mass health coverage scheme comes close to 'ModiCare'.

Rajasthan's Bhamasha Swasthya Bima Yojana, tendered in December 2017, will cover nearly 4 crore poor people of Rajasthan state. The project of Rajasthan's state-sponsored insurance was bagged by New India Assurance Ltd. This is one of the largest health insurance schemes in the country as it gives health cover for cashless treatment of 1,401 diseases - of Rs3,00,000 for 663 critical and Rs30,000 each for 738 general illnesses. The total insurance premium involved in Bhamasa Swasthya Bima Yojana is more than Rs1,200cr per annum with the State bearing Rs. 1,261 per family.

As the spread increases in insurance, the premium is expected to lower further. Rs 1,261 per family in Rajasthan could be reduced further to Rs 800 to Rs 1,000 per family in India. The tenders for NHPS are likely to be announced in Q1 2018 and the L1 bidder (that is the lowest bidder) for each state or tehsil will be selected. It is utmost important to maintain actuarial price for the successful implementation of this mammoth-sized project. This is India's golden chance to improve the standard of living of its poor citizens. With the demand for qualitative healthcare in small cities, the supply of multi-specialty quality hospitals are expected to reach the length and the breadth of this country. 

According to TheIndianCapitalist.com, the economies of scale and scope can do wonders for India. It is a humongous task, a case study for the world to achieve Sustainable Development Goals by the Year 2030. With the sincerity of purpose, honesty and giving-it-back attitude, India will be successful in this project. It's much appreciated that India's powerful man, the Prime Minister, is committed towards his duty towards Right to Qualitative Healthcare.

- Chaitanya Kulkarni

Plan, Invest and Achieve – a way towards happiness!

I will start with a question. A question which will make you think. A question which is applicable to every person you know, right from the start of one’s career till his or her retirement. WHAT DO YOU REALLY WANT?  Some would want to buy their dream car. Some would dream of living in a sky bungalow. People who have just entered the career cycle may want to invest in an international MBA. Depending upon the age, our goalposts or aspirations may change but goals remain constant.

Life coach experts believe that one should plan strategically and focus on realistic goals. Setting a goal, no matter how simple is always the easy part. Everyone has goals. The real challenge is not determining if you want the result, but if you are willing to accept the sacrifices required to achieve your goals. To achieve life goals, one needs to systemically plan his financial investments. That way, you will always win. With sound financial planning, your short-term goals will be achieved and you will get the motivation to achieve your next goal.

Bajaj Allianz Life Insurance, one of India’s leading private insurer invited us for their #LifeGoals meet. The meet started with a surprise. S.B. Anandan, a Malayalee fellow appeared on stage to explain his failed investment ideas, with the sense of comedy and enthralled the audience. The character was played by none other than Suresh Menon, a legendary comedian and YouTube sensation.

S.B. Anandan, with an advice from family and friends invested in different financial products. But sadly, it never resulted in any worthy savings. In fact, with the wrong financial advice, he lost his money in stock market. Though this was a plot in his stand-up scene, still the story stands true for millions of us. Bank investments these days don’t pay attractive interest which could beat inflation. People who want to achieve more look forward towards equities and mutual funds. Yes, India’s bullish markets have given handsome returns but these returns are based on market research and not mere speculation. People who do not have any financial background may find it difficult to understand and invest. This is where ULIPs work.

ULIPs or Unit Linked Insurance Plan is a long-term investment plan that offers the combined benefit of investment and insurance. These plans invest a portion of your premium in capital markets and allow you to invest in debt, equity or balanced funds depending upon market conditions or your risk appetite. Capital market investments under ULIPs are managed by experts who can mobilise your savings according to the market conditions. By investing in ULIPs, you can stay invested for a longer term, have your life covered and enjoy the benefits of investment made by experts on your behalf. ULIPs bring a modern-day approach towards insurance investing. Now, #InvestBefikar with ULIPs and chase your life goals.

Ideas of today’s aspirational India are far-reaching than a steady job or business. Fitness, solo-travel, road trips, adventure tourism, EDM concerts, technology, start-ups are deep-rooted in our younger minds. Happiness is not something ready-made, it comes with our actions. ULIPs have become a popular choice for investments due to affordability, capital appreciation, flexibility and transparency. ULIPs stand apart from traditional insurance as they act as life maximisers.

Bajaj Allianz Life Insurance is soon going to launch something interesting. Stay tuned on theindiancapitalist.com for more!

- Chaitanya Kulkarni

ICICI Lombard introduces India’s First Live Video Inspection feature for faster claims.

Imagine you’re driving down to your office in the morning and an auto driver bumps into the rear of your brand new car. Your heart skips a beat worrying about the damages. The traffic, the honking adding the stress all around! You pull over your car out of the traffic to have a look. The traffic makes its way and leaves you wondering about the endless hassle of getting the car fixed and the dreadful wait of getting the damages reimbursed.

Wouldn’t it be better if processing claims would have been ‘Insta’ like all Insta hashtags we use on social media? Indian insurance business is growing at 32% but penetration of insurance is miniscule. That’s because we all hate paperwork! Innovation is the key here and ICICI Lombard motor insurance has raised the bar. ICICI Lombard has been an early adopter of fintech. With the advent of technology, ICICI Lombard General Insurance has been successful at processing paperless claims. Over 90% of its claims are settled with tabs. The ‘Insure’ mobile app has been a boon for an ‘on the go’ connect with its customers.

But wait, It’s not only paperless! How about we tell you that the ‘Insure’ app settles claims with its video streaming feature? ICICI Lombard launched India’s first live video inspection feature.

This novel feature allows its customers to simply stream a live video of the damaged vehicle to an ICICI Lombard claims manager with these 4 simple steps.

The claims manager then assesses the damage through the live video chat and informs the customer about the extent of liability. All you need to do is keep your driving license and vehicle registration copy handy. For a better experience, it is advised to use a smartphone with good picture quality (5 MP or more).

The customer can accept the claims manager’s assessment of the damage. The details and approvals are sent to the workshop even as the car is being transported there. The entire claim approval process takes a few hours; much lesser than most conventional claims processes.

The live video streaming feature has brought in

• On the spot vehicle inspection
• Reduced waiting time
• Clarity on coverage and deductions
• Greater transparency
• Assistance with vehicle pick-up services
• Faster claim settlements

An insurance contract is a contract of Uberrima fides or a contract of utmost good faith. The parties to an insurance contract are required to deal with each other in good faith and declare all material facts. Trust being the founding stone of an insurance contract, the InstaSpect feature helps build trust and transparency between the insurer and the insuree.

The InstaSpect feature has been a pathbreaking augmentation to the existing ‘Insure’ mobile app. It has not only reduced the insurer’s turn around time; it has allowed both the insurer and the insuree to optimize the claim settlement process.

As high speed internet spreads its web across India, such modern insurance tech will continue to transform this business sector. With the help of technology, ICICI Lombard has become India’s first private sector insurance company to achieve claim settlement ratio of 92.2% vis-à-vis industry average of 81.9%.

- Chaitanya Kulkarni

Chatbots are transforming Insurance tech space.

We all text more than ever before with our family and friends. It is now time to take the conversation to the whole new level. Conversations help us build effective relationships in a business environment. Uber’s Chris Messina has coined the swanky term for robotic texting as ‘conversational commerce’. It refers to the trend of interacting with businesses through messaging and chat apps like Facebook Messenger, WhatsApp, Zendesk or voice technology like Amazon Echo. Introducing Chatbots, a computer program which is designed to have conversations with the end user. A set of text algorithms ensures that the end user feels like texting with a human.

‘’We’re in the midst of a once-in-a-decade paradigm shift. Messaging is the new platform, and bots are the new apps. The shift radically changes end-user experiences and developer frameworks and inevitably will change business models, how we monetize, and how we advertise.’’ – Sundar Pichai, Google.

A chatbot is a computer program that maintains a conversation with a user in natural language, understands the intent of the user, and sends a response based on business rules and data of the organisation. Mobile messengers like WhatsApp, Facebook Messenger and WeChat have gone global with more than a billion users of each. Users prefer to transact on messengers than on apps as it is an effective form of direct communication. TechCrunch data reveals that average user has about 20 apps installed on his phone. The app boom has resulted in consumer reluctance especially in a country like India where data deficiency is common.

“People-to-people conversations, people-to-digital assistants, people-to-bots … that’s the world you’re going to get to see in the years to come.” – Satya Nadella, Microsoft

Brands are constantly looking for efficient user experience. India’s leading private general insurer, ICICI Lombard is constantly innovating for holistic experience to its customers by building effective conversational commerce. Chatbots are transforming customer acquisition and retention with smart interactive responses. ICICI Lombard has four chatbots under implementation which are part of their digital innovation strategy. Chatbot projects in focus on fire insurance and two-wheeler insurance has already gone live.

ICICI Lombard has automated the process of purchasing two-wheeler insurance through a chat bot. Users can proceed with the chat on ICICI Lombard official website where the chatbot would require your basic information and policy number, in case of renewal to assist you well. The chatbot can assist you in pricing, terms and conditions and regulatory requirements. The facility allows you to upload necessary files and photos which are required as per IRDA mandate. ICICI Lombard Facebook chatbot for health insurance is currently under-development.

Chat based assistance is fruitful for individual customer but when it comes to corporate clients, email is the way-to-go. Email based chatbot by ICICI Lombard is transforming the ease of doing business in fire insurance. This chatbot enables faster quote generation with prospective clients without any human interference. Transaction time has drastically reduced. Since fire insurance quotes depend upon the area and the line of business the client operates in, email based chatbots ensures EODB for both client and insurer.

Chatbots were initially designed to automate business function. ICICI Lombard, in an industry first has deployed HR chatbot which works as an add-on on Yammer, a social networking site for corporates. Employees can access HR services on-the-go. The HR chatbot helps you connect with your teams and natural groups and have live conversations with them in a secured way. Employees can raise queries, schedule leaves and manage emoluments 24/7, giving employees on the field instant access to transactions and HR data, regardless of location or time zone.

ICICI Lombard has been the early adopters of fintech in multiple functions. Technology plays the role of enabler in the enterprise. Chatbots are currently in initial stages of functioning. In future, we would see more interactive conversations with regional understandability and support. In India, the accessibility of chatbots in regional languages would ensure last mile reachability. It is an undeniable fact that Artificial Intelligence will take financial services business in India to the whole new level.

The 5 must-have Insurance Policies for SMEs

Small Medium Enterprises play a crucial role in development of Indian economy. It employs 40% of India's work-force. According to DIPP statistics, India's SME sector manufactures over 7,000 products ranging from traditional to high-tech in both domestic and international markets. And with the surge in e-commerce business, it is slated to grow exponentially over the next five years. Despite all these promising numbers, India's MSME sector still remains the most challenging one's to operate.

Red tape, limiting regulations, dearth of finance, inadequate infrastructure, family run management and unskilled labour are the major reasons that hamper SME growth. Insurance is not just a legal mandate but a necessity for this sector. Adequate coverage can minimise internal and external risks of business enterprise. Sure, a majority of low-margin profit SMEs think of insurance as a burden but they themselves do not claim to be calamity proof.

For an SME, insurance is important because it provides protection against unforeseen eventualities; empowers the business; manages or reduce cost of unplanned risks; and enhances consistency and momentum of the business. Small businesses usually don’t have that kind of saving fund that can be diverted to resurrecting the business in case of an eventuality. This makes it all the more important for them to have an insurance plan. SMEs see a lot of business ups and downs and an insurance cover can provide them adequate financial support when the need arises.

The 5 must-have Insurance policies for SMEs

1. Employee Liability Insurance - Any employee including contractual workers are included in employee group insurance scheme. The policy covers statutory liability of an employer for death, bodily injuries or occupational diseases arising during the employment. A cover of Rs. 2 lakh rupees or more is an industry standard to cover all the hospital charges in Tier 1 cities. As a part of employee welfare, some business enterprises have tie-ups with nearby city hospitals where the family members of employees get free treatments.

2. Standard Fire and Special Perils policy - The insurance company will indemnify the insured due to loss because of fire which may be caused by natural fire, combustion, lightning, riots and natural disasters. Building, plant and machinery, furniture, business related goods are covered in these policies. Fire policy is an annual policy. The cost of fire insurance is calculated on the area of business activity. Fire exits, fire fighting drills, fire safety equipments reduce the risk of calamity and thus reduce the premium price. Fire photographs or newspaper article on fire acts as a legal proof for the claim.

3. Burglary Policy - Theft of physical products or copyrighted digital product is covered under burglary policy. Policies issued to business premises cover stock-in-trade, money in transit, goods in trust or on commission, fixtures and fittings, tools of trade such as typewriters, calculators and other similar property and cash and currency notes in locked safe against the risk of burglary and house-breaking. Burglary insurance can be essential for technology based startups as cyber crimes such as hacking, skimming and cloning can be covered in cyber security insurance.

4. Machinery breakdown policy - When the production of a factory grinds to a halt because of breakdown, it can result in huge losses. Especially when delivery schedules are tight and the penalties are strict. The policy broadly covers loss due to all kinds of accidental, electrical and mechanical breakdowns as a result of internal and external causes. Loss in freight charges due to mechanical breakdown is also covered.

5. Special Contingency Policy - This is an add-on insurance which covers against floods, earthquake, tsunami etc. Special contingency provides cover against external as well as internal risks. Loss to business due to strike, riots is add-on. The rate of premium varies from 1% to 2% of property to be covered.

- Chaitanya Kulkarni ( twitter.com/chai2kul )