IRDA issues new norms for non-life products under detariff regime
New Delhi: Insurance regulator IRDA has issued a 31-point draft revised 'File and Use' guideline for all general insurance products to be complied by insurers. The regulator is readying for a detariff regime from January next year.

Products which are currently under tariff but which will be underwritten with modified rates after the tariffs are removed should be filed under these guidelines, after September 30, 2006.

IRDA wants that design and rating of products should provide clear and transparent cover, simple language for product description for laymen to understand and use similar wordings for describing same cover across all products such as clauses of renewal, basis of insurance, due diligence clause, cancellation clause, arbitration clause, etc.

Further, the product should be genuinely an insurance of an insurable risk with a real risk transfer and insurers should not enter financial guarantee business in any form. Pricing of products should be based on support of appropriate data and technical justification; and terms and conditions of cover should be fair to both the insurer and insured. Margins built into rates should be consistent with the experience of insurer in respect of commission, expenses of management, contingencies and profits.

IRDA said insurers should ensure that competition will not lead to unprincipled rate cutting and other improper underwriting practices.
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SBI opens branch in Shanghai
Shanghai: The State Bank of India (SBI) has opened a branch in Shanghai, which is also India's first full-fledged bank in China.
The Indian bank has offered to assist the Chinese government in reforming and modernising China's banking sector, which is ready to open up for foreign competition this year.

SBI chairman, Om Prakash Bhatt said SBI has a strong training infrastructure comprising two apex colleges and specialised institutes for rural development and communication and information management, apart from 52 learning and development centres. He said SBI could team up with state owned banks in China and share experiences to mutual benefit.

He said that besides training of human resources, other areas where the bank may be able to offer help to China are in Non-Performing Assets (NPA) management, Information Technology, investments and capital market, he said.
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