SBI Life, the life-insurance arm of State Bank of India, will contest a Rs 275-crore refund order that the Insurance Regulatory and Development Authority issued Tuesday in relation with a case of alleged misselling of a group insurance policy, MD and CEO Atanu Sen told CNBC-TV18.
We are appealing against the IRDA order and believe we gave buyers an informed choice.
Atanu Sen
MD and CEO
SBI Life Insurance
SBI Life, the life-insurance arm of State Bank of India, will contest a Rs 275-crore refund order that the Insurance Regulatory and Development Authority issued Tuesday in relation with a case of alleged misselling of a group insurance policy, MD and CEO Atanu Sen told CNBC-TV18.
Yesterday, the IRDA had asked the insurer to refund Rs 275 crore, or 44 percent of the Rs 625 crore premium it had collected against issuing Dhanaraksha Plus Limited Premium Paying Term (LPPT) policy.
Several news reports said the product was sold to customers bundled along with State Bank of India's home loans.
The regulator said that between the years 2008-09 and 2010-11, corporate agents mainly belonging to SBI and associate banks sold the policies to customers by charging the second year premium along with the first year's, which resulted in commission payouts of 40 percent and 7.5 percent, respectively, for the two years.
"Had the single premium version of product been offered to the policy holders, the actual commission payable would have been only 2 percent," the regulator said, adding that the insurer had "adopted business practices in violation of prescribed regulatory norms."
The firm's CEO, however, said that the insurer had not violated any norms and that the order would be appeal to the chairman of the IRDA.
The regulator in its order had charged SBI Life of misrepresenting the nature of the policy, paying excess commission to agents and not providing buyers of an informed choice.
"The three charges are interconnected," Sen said. "We are appealing against the third point and believe we gave buyers an informed choice."
He added that IRDA had approved of both products -- the single-premium and two-year premium plans -- and appeared to suggest that the premium collected on the policies was far less than the Rs 625-crore amount that the regulator has mentioned in its order.
SBI stock price
On March 12, 2014, at 12:31 hrs State Bank of India was quoting at Rs 1652.95, down Rs 22.2, or 1.33 percent. The 52-week high of the share was Rs 2469.25 and the 52-week low was Rs 1452.90.
The company's trailing 12-month (TTM) EPS was at Rs 149.34 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 11.07. The latest book value of the company is Rs 1325.34 per share. At current value, the price-to-book value of the company is 1.25.
Anda sedang membaca artikel tentang
SBI Life to appeal against IRDA's Rs 275cr refund order
Dengan url
https://rokokkanker.blogspot.com/2014/03/sbi-life-to-appeal-against-irdas-rs.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
SBI Life to appeal against IRDA's Rs 275cr refund order
namun jangan lupa untuk meletakkan link
SBI Life to appeal against IRDA's Rs 275cr refund order
sebagai sumbernya
0 komentar:
Posting Komentar