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New Delhi, <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> would consider capital infusion in three loss-making public sector general insurance companies based on their financial performance of nine months. The infusion if required would be made in the fourth quarter of the current financial year, sources said. According to sources, the finance ministry last year asked three insurers -- National Insurance Company Limited, <keyword id="94451" type="General" weightage="80" keywordseo="oriental-insurance-company-limited" source="Orion">Oriental Insurance Company Limited</keyword> and <keyword id="356117" type="General" weightage="80" keywordseo="united-india-insurance-company" source="Orion">United India Insurance Company</keyword> -- to chase bottomlines rather than topline and underwrite only good proposals. The financial review would give some idea about the impact of restructuring initiated on the profitability numbers and the solvency margin, sources said. The solvency margin is the extra capital the companies must hold over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims. The government last year provided Rs 5,000 crore capital to three insurers -- National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company. Kolkata-based National Insurance Company Limited was given the highest, Rs 3,700 crore, followed by Delhi-based Oriental Insurance Company Limited (Rs 1,200 crore) and Chennai-based United India Insurance Company (Rs 100 crore). According to sources these companies have been asked to improve their solvency ratio and meet the regulatory requirement of 150 per cent. The solvency ratio is a measure of capital adequacy. A higher ratio reflects better financial health and the ability of the company to pay claims and meet future contingencies and business growth plans. Barring the solvency ratio of <keyword id="6369780" type="General" weightage="80" keywordseo="new-india-assurance" source="Orion">New India Assurance</keyword>, this key indicator of the three public sector general insurance companies stood below the regulatory requirement of 150 per cent. During 2019-20, the government infused Rs 2,500 crore in these three companies. It increased substantially to Rs 9,950 crore in the following year and Rs 5,000 crore in 2021-22. In all, the government infused Rs 17,450 crore into these insurance firms so far to improve their financial health. Public sector general insurance companies are undergoing various reforms, including organisational restructuring, product rationalisation, cost rationalisation and digitalisation. For efficient use of capital and to push profitable growth, the sources said, a set of key performance indicators linked reforms have been initiated by all public sector general insurance companies effective 2020-21, when the maximum capital infusion was made. Of the four state-run general insurance companies only New India Assurance Company is listed on the stock exchanges, the remaining three are wholly owned by the government. The government has already announced its intention to privatise one general insurance company. To facilitate privatisation, Parliament has already approved amendments to the General Insurance Business (Nationalisation) Act (GIBNA). Finance Minister <keyword id="129243" type="General" weightage="80" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> in the Budget 2021-22 announced a big-ticket privatisation agenda, which included two public sector banks and one general insurance company. "We propose to take up the privatisation of two public sector Banks and one general insurance company in the year 2021-22. This would require legislative amendments," she had said.

Govt may infuse capital in PSU general insurers in Q4 based on performance

<ul><li><keyword id="482957" type="General" weightage="20" keywordseo="home-insurance" source="Orion">Home Insurance</keyword> protects one’s home from any unforeseen circumstances such as fire, theft, and natural calamities like earthquakes, floods, and storms. </li><li>For individual homeowners, it is recommended to choose comprehensive coverage. </li><li>Homeowners can boost their standard home insurance policies with add-on options.</li></ul>Scary as it may sound, with climate change now a reality, all our cities are likely to experience devastating floods. We have seen it in Mumbai, in Chennai, in Bangalore, and very recently in Himachal and Uttarakhand. Let us take the case of Mumbai. Studies suggest that high rainfall, rising sea levels and sinking land expose more people to the risk of floods. Moreover, there are other natural calamities that may occur too and add to that the risk of theft and burglary. This makes home insurance very essential for anyone who owns a property, or even those who stay in rented accommodation where one can insure the contents of the house against various risks. “Home insurance is a type of property insurance that protects one’s home from any unforeseen circumstances such as fire, theft, and natural calamities like earthquakes, floods, and storms. It also covers the damage caused due to water-logging due to floods,” says Vivek Chaturvedi, CMO and head of direct sales, Digit Insurance. <cmsannotation type="cmsannotation" annotationid="Home insurance in India is abysmally low" comment="subhead" text="Home insurance in India is abysmally low">Home insurance in India is abysmally low</cmsannotation> Home insurance penetration in India is very very low. Data from The Asia Insurance Review revealed that home insurance in India stood at only 1% five years back. In contrast, countries like the US, UK, France and Australia have home insurance rates ranging from 90% to 97%. There are a couple of reasons for it. “One is the perception that nothing will happen to me and I do not need home insurance. The second is related to the lack of knowledge of new products, that one can insure both the building and the content,” says Gurdeep Singh Batra, national head, retail non-motor underwriting and coinsurance, Bajaj Allianz <keyword id="6366282" type="General" weightage="20" keywordseo="general-insurance" source="Orion">General Insurance</keyword>. Also, home insurance in India is not mandatory. While it is also not legally mandatory in the United States, the United Kingdom, or Canada, many mortgage lenders in these countries often require borrowers to have home insurance as a condition of the mortgage loan. This requirement is to protect the lender's financial interest in the property. While it's not a legal obligation for homeowners, it is a practical necessity to secure coverage to safeguard their homes, personal belongings, and liability in unforeseen circumstances while satisfying lender requirements. We look at why home insurance is important and what it covers. <cmsannotation type="cmsannotation" annotationid="What is covered under home insurance" comment="Subhead" text="What is covered under home insurance">What is covered under home insurance</cmsannotation> Under home insurance, there are three kinds of cover available. <cmsannotation type="cmsannotation" annotationid="Building-Only Cover" comment="subhead" text="Building-Only Cover">Building-Only Cover</cmsannotation>: This type protects the physical structure of the building, including the net usable area (carpet area). It excludes external walls, service shafts, balconies, verandahs, and open terrace areas but includes internal partition walls within the residential unit. <cmsannotation type="cmsannotation" annotationid="Content-Only Cover" comment="subhead" text="Content-Only Cover">Content-Only Cover</cmsannotation>: This option covers personal belongings inside the house that aren't permanently attached to the structure, such as furniture, electronics, and kitchen equipment. <cmsannotation type="cmsannotation" annotationid="Comprehensive Cover" comment="Subhead" text="Comprehensive Cover">Comprehensive Cover</cmsannotation>: This provides complete protection for both the building and its contents. It often includes additional options like coverage for equipment breakdown and burglary. Individuals can choose the option that suits their specific needs and circumstances. <cmsannotation type="cmsannotation" annotationid="Insure your home according to your needs" comment="Subhead" text="Insure your home according to your needs">Insure your home according to your needs</cmsannotation> For individual homeowners, it is recommended to choose comprehensive coverage because it provides protection for both the building and the contents of the house. If you own a flat within an apartment complex, it is typically the responsibility of the housing society to insure the structure itself. In this case, the flat owner would only need to insure the personal contents within their home. “In case the building isn’t insured, then one can buy a cover individually as well to protect the structures of their flat,” says Chaturvedi. If you're a tenant residing in an apartment or a standalone house, you might want to focus solely on obtaining 'content-only' insurance coverage.This type of insurance safeguards all your possessions within the dwelling. “It could be a wise idea for landlords who have let-out properties to consider landlords' insurance, which covers damage to the building as well as loss of rent,” says Mathur. <cmsannotation type="cmsannotation" annotationid="Subhead" text="Add-ons to boost your home insurance">Add-ons to boost your home insurance</cmsannotation> “Protecting your home with a comprehensive home insurance policy coupled with tailored add-ons is the most sensible and prudent thing to do,” says Tarun Mathur, CBO - General Insurance, Policybazaar.com. "Theft and Burglary Cover" protects against losses not typically covered by standard policies, such as theft of valuable items like gold and electronics. "Gold and Jewelry Add-On" extends coverage to include precious metals and offers significant protection. "Portable Electronic Items Add-On" is essential, covering devices like laptops and phones that may not be included in standard policies. In the event of home damage, "Alternate Accommodation Add-On" eases the burden by covering the cost of temporary housing during repairs. For added security, "New-for-Old Cover" ensures valuable items are replaced with new ones, rather than reimbursed at their depreciated value. <cmsannotation type="cmsannotation" annotationid="Low premiums" comment="Subhead" text="Low premiums">Low premiums</cmsannotation> Interestingly home insurance premiums are low and are very manageable. Home insurance premiums vary based on factors like property value and coverage. “ The premium for home insurance lies between 0.10 per thousand to 0.25 per thousand sum insured,” says Batra. You can get a ₹ 1 crore sum assured for as low as ₹2,500 per year and ₹25,000 for a 10-year period. Comprehensive plans with added features will cost you more. It's essential to obtain quotes from different insurers to find the best policy that suits your specific needs and budget.

From fire to floods – Why home insurance is something you should not  ignore

The <keyword id="120582" type="General" weightage="20" keywordseo="hinduja-group" source="Orion">Hinduja group</keyword> has made an offer to invest an additional ₹300 crore in <keyword id="157626" type="General" weightage="20" keywordseo="reliance-general-insurance" source="Orion">Reliance General Insurance</keyword>. <keyword id="10926" type="General" weightage="20" keywordseo="reliance" source="Orion">Reliance</keyword> General Insurance, a unit of Reliance Capital, needs a cash infusion to maintain solvency levels. IndusInd International Holdings Ltd (<keyword id="1424679" type="General" weightage="20" keywordseo="iihl" source="Orion">IIHL</keyword>), which is owned by <keyword id="28125" type="General" weightage="20" keywordseo="hinduja" source="Orion">Hinduja</keyword>, made the highest bid of ₹9,650 crore for Reliance Capital in a second auction on Wednesday. Reliance General Insurance had sought ₹600 crore cash infusion from lenders in December last year to meet the solvency requirements of the IRDA. The lenders earlier rejected the call for fund infusion from their pocket, putting the onus on the general insurance firm to the incoming investor. The bid amount of ₹9,650 crore will go to lenders who had lent ₹24,000 crore to Reliance Capital. The Committee of Creditors (COC) of Reliance Capital will hold a meeting on Friday where the top officials of the Hinduja group will make a presentation on its resolution plan. Reliance Capital owns a 51 per cent stake in Reliance Nippon Life Insurance and 100 per cent in Reliance Nippon General Insurance. The Hinduja group has a presence in the financial services sector through its stake in Indusind Bank and Hinduja Leyland Finance, a non-banking finance company owned by Ashok Leyland. The group has a housing finance business which is core to its strategy to increase its presence in financial services. At a consolidated level, as on December 31, 2022, the AUM (assets under management) of Hinduja Leyland Finance stood at ₹33,353 crore of which the housing finance business accounted for 18 per cent. In addition to ₹9,650 crore, the company has also offered ₹300 crore capital infusion in Reliance General Insurance, and another ₹50 crore for other expenses. The total value of IIHL's bid is ₹10,000 crore. The total Hinduja bid is ₹1,900 crore more compared to its own bid of ₹8,110 crore in the first challenge mechanism. Torrent, which decided to skip the second auction, had offered ₹8,640 crore in the first auction. The new Hinduja bid is higher by ₹1,380 crore. Torrent has moved the Supreme Court on banks' plans to launch a second auction. The matter will be heard in August. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/how-to-grant-social-benefits-to-same-sex-couples-sc-asks-centre/articleshow/99815407.cms">'How to grant social benefits to same-sex couples', SC asks Centre</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/anil-agarwal-makes-zero-debt-pledge-says-very-comfortable-servicing-debt/articleshow/99815431.cms">Anil Agarwal makes 'zero debt' pledge, says 'very comfortable' servicing debt</a>

Hinduja group offers to infuse ₹300 crore in Reliance General Insurance

<ul><li>IRDAI chairperson Debasish Panda in a keynote address at FICCI’s Annual <keyword id="5724733" type="General" weightage="20" keywordseo="insurance-conference" source="Orion">Insurance Conference</keyword> – ‘FINCON 2023’ stated that the country could achieve <keyword id="10516382" type="General" weightage="20" keywordseo="insurance-for-all" source="Orion">insurance for all</keyword> before 2047. </li><li>IRDAI chief suggested the industry could work with government groups like ASHA workers, anganwadi workers, self-help groups and non-government organisations to spread awareness about insurance. </li><li>Since 2022, the insurance regulator has awarded licences to three insurance companies – CreditAccess Grameen Life Insurance, Acko Life Insurance and Kshema <keyword id="6366282" type="General" weightage="20" keywordseo="general-insurance" source="Orion">General Insurance</keyword>. </li><li>The regulator has granted a licence for life insurance business after 2011 and general insurance after 2017. </li></ul>The <keyword id="35486" type="General" weightage="20" keywordseo="insurance-industry" source="Orion">insurance industry</keyword> is targeting an ambitious vision to achieve ‘Insurance for all by 2047’ as the insurance regulator seeks to ease regulations to bring in more players and boost penetration of insurance products in the country. The Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, in a keynote address at FICCI’s Annual Insurance Conference ‘FINCON 2023’, stated that the country could achieve insurance for all before 2047. “The risks that we face in our daily lives are numerous and highly unpredictable. And yet, despite this reality, insurance coverage remains a privilege only being accessed by few and not the majority,” said Panda at the conference. Since 2022, the insurance regulator has awarded licences to three insurance companies – CreditAccess Grameen Life Insurance, Acko Life Insurance and Kshema General Insurance. The regulator has granted a licence for life insurance business after 2011 and for general insurance after 2017, he said. To boost insurance penetration the regulator is also changing the registration guidelines and bringing in more clarity, he said. Besides, 20 odd companies are in the process of getting their insurance licences, he added. India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1.0%, which is pretty low compared to other nations. This also offers huge opportunities for insurance players to tap into a market that offers high potential. Panda also encouraged companies to utilise the increase in foreign direct investment (FDI) limit in the insurance sector to 74%, from 49% earlier, to bring in more capital and grow faster than in the past. “I expect the industry must innovate and create products that are affordable and accessible and also available to a wide range of consumers,” said Panda. He underlined the need to cater to 1.4 billion people, their businesses, properties, health, assets. And for this he said “we need more players, more capital, more distribution channels, more products, innovation and healthy competition.” Panda added that the industry could connect with the last mile to spread awareness by working with government groups like ASHA workers, anganwadi workers, self-help groups and non-government organisations, who could be messengers to make people aware of insurance.

More insurers, capital, distributors and healthy competition required to make insurance for all by 2047

<ul><li>The strike has been called off following an agreement reached with the management of the companies.</li><li><keyword id="651724" type="General" weightage="80" keywordseo="clc" source="Orion">CLC</keyword> had further advised that the managements should consider the suggestions of the <keyword id="122605" type="General" weightage="80" keywordseo="associations" source="Orion">associations</keyword> positively.</li><li>The strike notice was given by Girish <keyword id="24716" type="General" weightage="80" keywordseo="khurana" source="Orion">Khurana</keyword>, National Convenor, JFTY protesting against the unilateral implementation of the EY recommendations.</li></ul> The unions in the government-owned general insurance companies and General Insurance Corporation of India Ltd (GIC Re) on Monday called off their January 4 strike, said an union leader. The strike has been called off following an agreement reached with the management of the companies at the conciliation meeting called by the Chief Labour Commissioner, Central. "Various arguments took place in the meeting from both sides and finally, the CLC advised the managements to give proper bilateral opportunity for discussion with the Associations within 15 days and take the suggestions," Trilok Singh, Convenor-North Zone, Joint Forum of Trade Unions and Association (JFTU), told IANS. He said the CLC had further advised that the managements should consider the suggestions of the associations positively. "Managements agreed to meet the Associations within 15 days for the same. In the light of these instructions from the CLC's office and the managements' decision, we have decided to defer the strike till further advices," Singh said. At the conciliation meeting, the management representative said since 2016 it has been a matter of existence for the insurers. They said even after infusion of capital by the government, the companies are struggling to survive. The companies have to maintain solvency ratio and for that, they have to cost effective. The representative of the Department of Financial Services also maintained that the insurers have to improve their performance. The strike notice was given by Girish Khurana, National Convenor, JFTY protesting against the unilateral implementation of the EY recommendations on rejigging the five reinsurers. The CLC had called the Chairman-cum-Managing Directors of the five companies, Joint Secretary, Department of Financial Services, and Khurana for a conciliation meeting. The unions have been demanding the copy of the EY report for a long time. The management had given them a copy of the power point presentation made to them about the EY report. "Bullet points contained in <keyword id="6678164" type="General" weightage="50" keywordseo="ppt" source="Orion">PPT</keyword> (powerpoint presentation) reveal no details and we are unable to submit our view-points and suggestions in the matter," Khurana said in a letter to <keyword id="14574026" type="General" weightage="50" keywordseo="suchita-gupta" source="Orion">Suchita Gupta</keyword>, <keyword id="15951458" type="General" weightage="50" keywordseo="chairperson-gipsa" source="Orion">Chairperson GIPSA</keyword> and Chairman-cum-Managing Director, <keyword id="15951459" type="General" weightage="50" keywordseo="national-insurance-earlier" source="Orion">National Insurance earlier</keyword>. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/delhiites-guzzle-over-1-crore-liquor-bottles-worth-218-crore-from-dec-24-31/articleshow/96698044.cms">Delhiites guzzle over 1 crore liquor bottles worth ₹218 crore from Dec 24-31</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/zomato-irctc-zee-entertainment-among-stocks-in-focus-on-tuesday/articleshow/96697684.cms">Sensex, Nifty50 likely to open in red amid weak global cues; Zomato, IRCTC, Zee Entertainment among stocks in focus</a>

PSU general insurance unions call off their Jan 4 strike

As the deadline for the submission of binding bids approaches, the bidders of <keyword id="6360090" type="General" weightage="100" keywordseo="reliance-capital" source="Orion">Reliance Capital</keyword>, including Hinduja, Torrent, Zurich, and Piramal have flagged off various legal issues to the lenders and Administrator, involving Reliance Capital and its subsidiaries. These legal issues involve a cumulative liability of Rs 22,000 crore, and they need quick resolution for the successful closure of RCAP's resolution plan. According to sources, the bidders are likely to make a condition precedent of these issues to any payment to the lenders. The two big issues flagged off by the bidders are the impending resolution of <keyword id="3649632" type="General" weightage="50" keywordseo="reliance-home-finance-ltd" source="Orion">Reliance Home Finance Ltd</keyword> (<keyword id="1590678" type="General" weightage="50" keywordseo="rhfl" source="Orion">RHFL</keyword>) and the legal battle between the Administrator and IDBI Trusteeship for the control of <keyword id="157626" type="General" weightage="50" keywordseo="reliance-general-insurance" source="Orion">Reliance General Insurance</keyword>'s shares, which is pending in the NCLT. Authum Investment and Infrastructure Ltd had been selected as the successful bidder for RHFL in June 2021, but the resolution process has not yet been completed due to various litigation involving the debenture holders. The total debt of RHFL is Rs 11,500 crore. As far as Reliance General Insurance is concerned, the Independent actuarial <keyword id="5413795" type="General" weightage="50" keywordseo="tower-watson" source="Orion">Tower Watson</keyword> has valued this business at Rs 9,500 crore. Apart from these, the two other legal cases flagged off by the bidders are Axis Bank's claim of Rs 150 crore against Reliance Capital, which the bank has lost in the NCLT, and a case involving Administrator and IndusInd Bank, involving arbitration of Nippon Asset Management shares. The total liability in this matter is Rs 650 crore. The last date for submitting binding bids is November 28. The quick resolution of these legal matters is a challenge for the Administrator for the successful closure of the RCAP resolution plan. Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries. Torrent, IndusInd, Oaktree, Cosmea Financial, Authum Investment, and B Right Real Estate have submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for Reliance Capital's entire assets. For Reliance General Insurance business, Piramal Finance has bid Rs 3,600 crore, while <keyword id="1657992" type="General" weightage="50" keywordseo="zurich-insurance" source="Orion">Zurich Insurance</keyword>'s bid is Rs 3,700 crore. The third bidder, Advent, has bid Rs 7,000 crore for Reliance General Insurance. Jindal Steel and Power and <keyword id="8564251" type="General" weightage="50" keywordseo="uvarc" source="Orion">UVARC</keyword> have submitted bids for Reliance Capital's ARC business. For other assorted assets of Reliance Capital, 3 bidders -- Choice Equity, Global Fincap, and <keyword id="15413642" type="General" weightage="50" keywordseo="grand-bhawan" source="Orion">Grand Bhawan</keyword> -- have submitted the bids. RCAP's life insurance business, <keyword id="15259421" type="General" weightage="50" keywordseo="rnlic" source="Orion">RNLIC</keyword>, had not received any bid, but later on Aditya Birla Capital and Nippon Life Insurance, which is already holding 49 per cent equity in RNLIC, have evinced interest in acquiring RCAP's 51 per cent stake in this business. At the beginning of the resolution process of Reliance Capital over 54 companies had submitted Expression of Interest (EOI) for its various assets, out of which only 14 are now in the fray. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/electric-mobility-platform-moeving-raises-2-5-million-from-jsw-ventures/articleshow/95252790.cms">Electric mobility platform MoEving raises $2.5 million from JSW Ventures</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/tumblr-to-allow-nudity-but-not-sexually-explicit-images/articleshow/95253755.cms">Tumblr to allow nudity but not sexually explicit images</a>

Reliance Capital bidders flag off multiple legal issues involving Rs 20,000 crore liability

The bidders for <keyword id="6360090" type="General" weightage="100" keywordseo="reliance-capital" source="Orion">Reliance Capital</keyword> assets have to submit their financial bids by August 29 (Monday), as the final deadline for the submission of bids ends tomorrow. The bidders will submit their final non binding indicative bids under two options. Under option 1, bidders can bid for Reliance Capital as a Core Investment Company (CIC), while the second option gives the bidders freedom to buy <keyword id="411324" type="General" weightage="80" keywordseo="rcap" source="Orion">RCAP</keyword>'s different business clusters, either individually or in combination. Though the lenders are more keen to sell Reliance Capital as a company (CIC) than individual businesses separately. The deadline for the submission of bids has been extended five times in the past by the lenders. The timeline for the completion of Reliance Capital's resolution process has also been extended twice by the lenders. Now, the final deadline to complete the process is 1 November 2022. At the beginning of the resolution process of Reliance Capital, over 54 companies had submitted Expression of Interest (EOI) for its various assets, but now there are only a handful of bidders actively engaged with the Administrator. According to the banking sources, out of the 54 EOIs received initially, currently only four-five bidders including Piramal Group and Yes Bank are actively engaged in the resolution process of Reliance Capital. Due to the poor response, the Committee of Creditors (COC) even waived off the condition of paying Rs. 75 Cr. Earnest Money Deposit (EMD), in the first submission date. The bidders major concerns have been regarding the treatment of three important business clusters of Reliance Capital i.e. Reliance Commercial Finance (<keyword id="6388800" type="General" weightage="80" keywordseo="rcf" source="Orion">RCF</keyword>), <keyword id="857313" type="General" weightage="50" keywordseo="reliance-home-finance" source="Orion">Reliance Home Finance</keyword> (<keyword id="5541231" type="General" weightage="80" keywordseo="rhf" source="Orion">RHF</keyword>) and <keyword id="157626" type="General" weightage="50" keywordseo="reliance-general-insurance" source="Orion">Reliance General Insurance</keyword> Company (RGIC). Both RCF and RHF had gone through a separate resolution process with Authum Investment and Infrastructure, much before RCAP was referred to NCLT. On the other hand, the shares of Reliance General Insurance, which is the most valuable asset in the entire business portfolio of RCAP, are held by IDBI Trusteeship on the behalf of Credit Suisse. IDBI Trusteeship has refused to release these shares for the ongoing NCLT-led resolution process. To allay the concerns of the bidders regarding the RCF and RHF, the COC has proposed that both the entities will be held in a separate Trust for the Authum Investment and Infrastructure's resolution. The combined debt of these two entities - RCF and RHF is around Rs. 25,000 Cr. The proposed Trust structure would ensure that the bidders of RCAP do not have to deal with this debt. The debt of RCAP is around Rs. 20,000 Cr. The Trust structure would ensure that out of Rs 45,000 crore debt, the Rs 25,000 crore debt of RCF and RHF is excluded from this resolution process. As far as RGIC's shares are concerned, there has been a stalemate between the lenders and IDBI Trusteeship. IDBI Trusteeship Services Limited acting in its capacity as a debenture trustee on behalf of Credit Suisse, had invoked the pledge of RCAP's 100 per cent shareholding in RGICL in November 2019 and transferred the shares to its account. RGICL is the most valuable asset of RCAP and the Administrator wants to include the same as a part of RCAP's IBC process and debt resolution, but with the IDBI Trustee refusing to release the shares of RCIC, the process seems to have hit a roadblock. According to the bankers involved in the process, the value of Reliance General Insurance's business is estimated to be around Rs 5,000 crore to 6,000 crore. Bidders have raised questions and concerns as to how they can submit bids for Reliance General Insurance if the shares of the company are held by IDBI Trusteeship, who has refused to release the same for inclusion in the ongoing IBC process. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/markets-under-pressure-and-look-vulnerable-arun-kejriwal/articleshow/93845387.cms">Markets under pressure and look vulnerable: Arun Kejriwal</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/lg-tone-free-fp9-tws-buds-review-underrated-tws-with-a-lot-of-potential/articleshow/93804655.cms">LG TONE Free FP9 TWS Buds Review: Underrated TWS with a lot of potential</a>

Financial Bids for Reliance Capital to be submitted on Monday

The Micro, Small &amp; Medium Enterprises (MSMEs) have been contributing significantly to the country’s economy and serve as a robust platform for business innovation. According to the MSME ministry data, there are about 6.3 crore MSMEs in India, which provide employment to approximately 11.10 crore Indians and contribute to about 27% to the country's GDP. It is important to note that the micro segment is more than 99% of the MSME population, while the Small &amp; Medium segment is less than 1% of the MSME universe. Compared to large or multinational firms backed by relatively deeper pockets, MSMEs require a bare minimum protection plan for managing the risks. The Union Budget FY22-23 also re-emphasised the need to make the MSME sector more robust and provide ways and means to mitigate the risks such as fire, theft, or worker safety. Most of these MSMEs often are business ventures where the promoter has invested their lifetime savings or borrowed money to start a new business. Given their small size and scale of operations, most of these MSME units are prone to risks that threaten their overall business objective – something that they put in years to scale up. Insurance offers protection from sudden shocks and uncertainties and helps mitigate adverse effects on the long-term business plan of the MSME, thus ensuring longevity and sustenance of the business. Why do MSMEs need to insure their business? MSMEs should understand and evaluate their risks and identify the optimal size of insurance covers based on their business activity and asset size. The probability of certain threats and perils might seem low and to save premiums these firms might remain underinsured or even uninsured. However, in the face of adversities, the damage caused and the stakes lost end up being much higher. MSMEs must pick the right insurance plan to avoid being underinsured. As the business grows, so does the allocated budget for insurance and risk mitigation measures. The decision on which kind of insurance protection plan an MSME unit needs must be made bearing certain factors in mind – nature of business, employee strength, and financial capability of the company, among others. Some of the key products that MSMEs could opt for are: 1. Bharat <keyword id="11967149" type="General" weightage="80" keywordseo="sookshma-udyam-suraksha" source="Orion">Sookshma Udyam Suraksha</keyword> &amp; Bharat Laghu Udyam Suraksha <ul><li>This is the newly devised asset insurance products for MSME sector from insurance regulator (IRDAI) and effective from April 1, 2021. These products protect MSME from fire, flood, and earthquakes among other perils. There are two schemes under this</li><li>Bharat Sookshma Udyam Suraksha, which is for MSME units having value at risk up to ₹5 crores</li><li>Bharat Laghu Udyam Suraksha for units having value at risk above ₹5 crore.</li></ul>2.Trade Credit InsuranceThis protects the enterprise from payment risks resulting from an issue regarding delivery of goods and services. 3. <keyword id="1672191" type="General" weightage="80" keywordseo="cyber-insurance" source="Orion">Cyber Insurance</keyword> coverage Adequate cyber insurance coverage is a must in today’s environment and can be the perfect risk mitigating tool against cyber threats of all kinds. 4. Marine Cargo Insurance Provides wide coverage for loss or damage caused to the cargo whilst in transit between any two points by sea/air/rail/road/courier. 5. <keyword id="5139309" type="General" weightage="80" keywordseo="group-medical" source="Orion">Group Medical</keyword> coverage policy For the employees of the MSME thereby building employee loyalty and faith by promoting a cohesive, healthy working environment. Besides these, there are numerous other insurance covers like Liability Insurance, Motor Insurance, etc. that cover multiple aspects depending on the nature of business of an MSME business While there is a rise in awareness about insurance, MSMEs are gradually understanding the importance of insurance as a risk mitigation tool because that is often the only saviour that helps them get back on their feet as quickly as possible, when adversity strikes, and the pandemic has made this more evident than ever before. This article is authored by Anand Pejawar, Deputy Managing Director at <keyword id="6400643" type="General" weightage="80" keywordseo="sbi-general-insurance" source="Orion">SBI General Insurance</keyword>. The opinions expressed are those of the author and do not necessarily reflect the views of Business Insider India.

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