IRDAI Cracks Down on Reliance Health

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IRDAI Cracks Down on Reliance Health EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE THE HINDU DELHI FRIDAY, NOVEMBER 8, 2019 BUSINESS 15 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE market watch 07-11-2019 % CHANGE Sensex dddddddddddddddddddddd 40,654 ddddddddddddddd0.45 IRDAI cracks down on Reliance Health US Dollardddddddddddddddddddd 70.97 ddddddddddddddd0.00 Gold ddddddddddddddddddddddddddd 38,930 ddddddddddddd-0.18 Brent oil ddddddddddddddddddddd 62.52 ddddddddddddd-0.53 Regulator asks health insurer to stop selling policies over solvency worries N. Ravi Kumar nancial assets to RGICL with nuine claims will continue to NIFTY 50 HYDERABAD effect from November 15. be duly honoured.” PRICE CHANGE The Insurance Regulatory “Till that time, RHICL had However, Reliance Capi­ Adani Ports. ............. ..... 390.45. ....... -0.55 and Development Authority been prohibited from using tal, the promoter of Reliance Asian Paints. ............ ... 1826.95. ...... 29.35 Axis Bank . ................ ..... 734.75. .....-12.50 of India (IRDAI) has directed its assets for any payment Health, said it had proposed Bajaj Auto . ............... ... 3265.85. ...... 17.55 Reliance Health Insurance other than claim settlement. transfer of the health portfo­ Finance Minister Nirmala Sitharaman with RBI Governor Bajaj Finserv. ........... ... 8832.90. ...... 60.05 Company (RHICL) to stop It is estimated that the un­ lio to Reliance General. Shaktikanta Das, left, and Finance Secretary Rajiv Kumar. * PTI Bajaj Finance . .......... ... 4225.85. ...... 37.70 selling new policies. derlying assets are sufficient “As proposed by Reliance Bharti Airtel . ........... ..... 371.75. ........ 0.30 BPCL. ........................ ..... 513.20. .....-10.70 It also directed the insurer to meet the claims of the ex­ Capital, the promoter com­ Britannia Ind . .......... ... 3223.80. ....... -4.05 to transfer the entire policy­ isting policyholders that may pany of Reliance Health Insu­ Cipla . ........................ ..... 471.85. ....... -9.00 Govt. mulling changes holders’ liabilities along with arise in future,” IRDAI said. rance (RHI) and Reliance Coal India . ............... ..... 212.50. ........ 0.10 Dr Reddys Lab . ........ ... 2871.05. ........ 8.35 financial assets to Reliance Reliance General Insu­ General Insurance (RGI), RHI Eicher Motors. ......... 21423.95. .. -181.60 General Insurance Co. rance Co. had been directed will transfer its health insu­ to laws to address GAIL (India). ............ ..... 132.10. ....... -4.60 (RGICL) with effect from No­ to service the claims of the rance portfolio covering all Grasim Ind . .............. ..... 777.85. ........ 4.60 vember 15. RHICL policyholders financial assets and policy­ HCL Tech. ................. ... 1148.45. ........ 0.10 promptly and efficiently holder liabilities to RGI. This HDFC . ....................... ... 2251.00. ...... 30.40 inter­regulatory issues HDFC Bank. .............. ... 1263.70. ........ 7.05 Below level with effect from November process is being undertaken Hero MotoCorp . ...... ... 2660.85. .....-17.50 IRDAI’s direction follows the 15. in consultation with IRDAI Hindalco . ................. ..... 205.20. ........ 3.70 FM discusses economy at FSDC meet Anil Ambani group entity’s from 106% to 77%,” the order surer was issued a show­ “IRDAI will be closely and has been approved by Hind Unilever . ......... ... 2138.25. .....-41.20 Special Correspondent ICICI Bank . ............... ..... 478.55. ....... -2.15 solvency margin falling be­ said. RHICL’s solvency ratio cause notice and given monitoring the situation to the regulator,” a Reliance thening the regulatory me­ NEW DELHI IndusInd Bank . ........ ... 1381.90. ...... 38.90 low the control level of 150% declined to 63% as on Sep­ another opportunity to pre­ ensure smooth transfer of Capital spokesperson said. chanism, there is a need for Bharti Infratel . ........ ..... 229.45. ........ 8.30 for some months now. tember 30, 2019. sent its case.” the portfolio, settlement of Sources said Reliance Finance Minister Nirmala certain amendments in the Infosys . .................... ..... 720.10. ........ 7.80 Indian OilCorp. ........ ..... 135.85. ........ 0.25 The regulator said in its IRDAI said, it had, in Au­ As there had been no im­ claims and protection of the General Insurance and Re­ Sitharaman held a review relevant Act that governs ITC . ........................... ..... 265.85. ........ 4.50 order that the solvency ratio gust, issued a direction to provement, but only deterio­ interest of the policyhol­ liance Health Insurance meeting on Thursday with the multi­State cooperative JSW Steel. ................ ..... 252.65. ........ 4.40 reported by RHICL for the the health insurer to restore ration in the financial posi­ ders,” a statement said. would be merged and the the Financial Stability and societies and there the pro­ Kotak Bank . ............. ... 1584.00. ...... 12.95 quarter ended June was the required level of solven­ tion of RHICL, a decision was The regulator said it proposal was tabled by Re­ Development Council cess of amending certain L&T. .......................... ... 1435.05. .....-18.00 M&M . ....................... ..... 580.35. ........ 0.55 106%. cy margin within one month. taken to direct the insurer to would like to assure RHICL liance Capital about two (FSDC) during which she provisions of the Multi­State Maurti Suzuki. ......... ... 7287.15. .....-24.00 “There was further dete­ “Despite repeated follow stop selling new policies and policyholders that “all their weeks ago. discussed the state of the Cooperative Societies Act is Nestle India Ltd. .... 14711.25. ...... 61.60 rioration in solvency bet­ up, this has not been carried transfer the entire policyhol­ interests have been adeq­ (With inputs from Manojit economy in detail. being taken forward by the NTPC . ....................... ..... 119.55. ....... -1.10 ween June and August 2019, out so far. Thereafter, the in­ ders’ liabilities along with fi­ uately protected and all ge­ Saha in Mumbai) “The Council reviewed government in consultation ONGC . ...................... ..... 142.05. ....... -2.60 PowerGrid Corp . ..... ..... 194.20. ....... -0.90 the current global and dom­ with the RBI,” Mr. Das Reliance Ind . ........... ... 1458.60. ...... 23.70 estic macro­economic situa­ added. State Bank . .............. ..... 318.15. ........ 0.60 tion and financial stability Sun Pharma . ............ ..... 440.60. ...... 12.70 HDFC Bank and vulnerabilities issues, ‘NBFCs doing well’ Tata Motors . ............ ..... 171.50. ....... -3.00 ArcelorMittal targets year­end for Tata Steel . ............... ..... 403.10. ....... -1.35 including... those concern­ The RBI Governor said that TCS . .......................... ... 2185.35. ....... -3.15 slashes ing NBFCs and credit rating the current state of NBFCs Tech Mahindra . ....... ..... 769.70. ....... -2.20 agencies,” the government was discussed and there Titan . ....................... ... 1167.20. ...... 11.10 lending rate . .. ... ...... completion of Essar Steel acquisition said in a release. were many NBFCs that were UltraTech Cement 4187.40 51.75 UPL. .......................... ..... 577.70. .....-28.90 Speaking to reporters af­ performing well. Vedanta . .................. ..... 160.95. ........ 3.00 Global major awaits Supreme Court verdict on appeal against NCLAT’s order SPECIAL CORRESPONDENT ter the meeting, RBI Gover­ “Today, both the banks Wipro . ...................... ..... 259.65. ........ 2.80 Mumbai YES Bank. ................. ....... 66.45. ....... -2.25 nor Shaktikanta Das said and the markets are diffe­ Special Correspondent Zee Entertainment . ..... 285.75. ....... -0.05 tional and financial creditors ment signed with the Japa­ sults, Chairman and CEO HDFC Bank has reduced that the government was rentiating between the good MUMBAI for distribution of claims nese firm on January 22, Lakshmi N. Mittal, said: “As the marginal cost of funds looking into making specific NBFCs and the not­so­good ArcelorMittal is awaiting the from the winning bid in the 2019. “ArcelorMittal and NSC anticipated, we continued to based lending rate (MCLR) legislative amendments to NBFCs,” Mr. Das said. “Even EXCHANGE RATES Supreme Court’s order to insolvency resolution expect to finance the joint face tough market condi­ by 5­10 basis points (bps) address inter­regulatory is­ today, we have a good num­ Indicative direct rates in rupees a unit complete the ₹42,000 crore process. venture through a combina­ tions in the third quarter, across various tenures with sues, including to the Multi­ ber of NBFCs that are well­ except yen at 4 p.m. on November 07 acquisition of Essar Steel be­ “The Supreme Court case, tion of partnership equity characterised by low steel CURRENCY TT BUY TT SELL effect from Thursday. State Cooperative Societies functioning, which are able fore the end of this calendar which dealt with appeals
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