Don't be lured by low premium, check company's settlement record too - The Economic Times

Insurance regulator IRDA's annual reports for 2012-13 reveal that of the total 23 private life insurers, only five have a claim-settlement ratio of over 90% (in terms of number of policies), despite many of them having completed 10 years of operations. The figure tells you that many insurers are tight-fisted when it comes to passing on the benefits to nominees.

According to financial advisors, it's time insurance buyers, especially those considering pure protection-term covers, take their eyes off the claims of lowest premium and highest benefits, and pay a more attention to the claim settlement record of the insurance company.
"Claims settlement ratio, along with related data, is the only objective yardstick for the consumer to determine which insurance company is preferable and more reliable," says consumer activist Jehangir Gai.

IRDA's data reveals LIC had the best claim settlement ratio of 97.73% among life insurers in the country. Private life insurers' average settlement record was at 88.65%. Of the 23 private life insurers, only five — ICICI Prudential Life, SBI Life, HDFC Life, Max Life and Kotak Life — have a claim settlement record of over 90%. Shriram Life, Aegon Religare, Edelweiss Tokio and DLF Pramerica Life are at the bottom of the list.


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Insurers say wrong information provided by policyholders in the proposal form or non-disclosure of facts are the key reasons for rejection of claims. Often, they claim, this is because many policyholders leave the paperwork to agents. So, apart from completing the form yourself when you have zeroed in on an insurance product, next time ask your insurance advisor for the claim settlement record of the insurer.

Even before asking him for details, you can visit the website of the insurance regulator and go through the industry data to ensure the advisor doesn't take you for a ride. So, exercise caution and buy a policy from a company that has a claims settlement ratio of above 95%. However, please note the distinction: new companies typically tend to have a high claim-rejection ratio.



As older companies see more of non-early claims, their overall rejection ratio seems lower. Insurers are not allowed to reject claims citing non-disclosure of facts, if the policy has been in force for more than two years. For a newer company, which is bound to have more early claims, the overall repudiation ratio seems higher as most claims are likely to be early claims, requiring investigation. However, do not stop at just examining the claim-settlement record. Claim pending ratio would help you in ascertaining the time taken by insurer to settle claims.




According to the IRDA annual report, private insurers' claim-pending ratio stood at 7.68% (pending for 3-6 months). LIC's ratio was higher at 15.47%. A high claim pending ratio usually points to the company's inefficiency in processing claims, particularly, if the proportion of claims pending for more than six months is higher. As per guidelines, all claims should be decided within six months. There should not be too many claims pending for more than three months.

Turnaround time for claim settlement is crucial as well. You will get an indication of the time taken by a company to settle claims. While choosing an insurer, check whether a huge proportion of claims has been settled after a delay of more than 180 days.

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Don't be lured by low premium, check company's settlement record too - The Economic Times:



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Microsoft establishes IPR Chair at Gujarat National Law University

For the first time, Microsoft India has established a dedicated Intellectual Property Rights (IPR) Chair at the Gujarat National Law University (GNLU).

The Microsoft Chair will consist of one full-time Professor, a research associate and an administrative secretariat along with an administrative assistant. The focus will be on capacity creation, development of policy research and thought leadership in IPR laws in India. Over the next five years, Microsoft and GNLU will develop suitable academic research projects; provide a framework for analyzing the impact of IPR Law and policy on development and growth of the Indian economy and disseminate knowledge and information on IPR Law and Policy through outreach programs in India. In the long run, this initiative also aims to help bridge the gap between university and industry on issues related to Intellectual Property Rights.

Horacio Gutierrez, Corporate Vice President and Deputy General Counsel, Microsoft in his message said, “As India continues its development into a knowledge economy, recognition of and respect for Intellectual Property law is critical. We are excited to set up a Chair for Intellectual Property at Gujarat National Law University and believe that it will help drive a significant amount of research in this area. Our ultimate aim with this initiative is to foster continuous research, academic collaboration and capacity building in Intellectual Property laws and policies.”

The Chair has been officially launched on February 26, 2014, at Gujarat National Law University by Jim Banowsky, managing director, International Patents. Legal and Corporate Affairs, Microsoft at Redmond, Washington along with Bimal Patel, Director, Gujarat National Law University.  Vipin Aggarwal, Senior Attorney and Director IP, Legal & Corporate Affairs, Microsoft Corporation (India) was also present at the occasion. The focus of this initiative will be on undertaking policy-relevant cutting edge research. Organizing training workshops to deliberate on research and research outcomes, augmenting the GNLU library with IT-IPR related books, latest research reports, and databases and participating in national and international workshops/seminars by members of the Microsoft Chair.

Bimal Patel, Director, Gujarat National Law University said: “We view this as an important and impactful initiative that will enable GNLU to promote teaching and research in Intellectual Property Rights. The availability of this funding will augment academic partnerships with the institutions of Governance, judiciary, economy and civil society, thereby enabling us to carry out quality applied legal and interdisciplinary research in various areas. We expect that the creation of the Chair will help us become more competitive and attract the right talent for our academic projects.” he added.

Source - Business Standard

India needs an Intellectual Property Rights friendly culture

Microsoft (India) has established the Intellectual Property Rights (IPR) chair at Gujarat National Law University (GNLU) about which the software giant had made an announcement recently. In an effort to raise awareness about IPR laws in India, Microsoft and GNLU will collaborate on research in the field and organize seminars on IPR for the next five years.

"India has changed several IP rules in the last 10 years. They are now among the most forward-looking in the world. But we need to create a culture that will adopt these laws," said Vipin Aggarwal, senior attorney and director, IP, legal and corporate affairs, Microsoft India. The newly established department will have one full-time professor, a research associate and an administrative secretariat.

Bimal Patel, director, GNLU, said, "The availability of funding from Microsoft will augment academic partnerships with institutions of governance, judiciary and the economy. It will help us become more competitive and attract the right talent for our academic projects."

Source: http://timesofindia.indiatimes.com/city/ahmedabad/India-needs-an-Intellectual-Property-Rights-friendly-culture/articleshow/31119666.cms

Gujarat National Law University to hold seminar on global arbitration - TOI news

In a unique endeavour, the Gujarat National Law University ( GNLU) is organizing a two-day seminar on international arbitration law starting from March 28. 

Being organized in collaboration with the International Chambers of Commerce (ICC), Paris; the London Court of International Arbitration (LCIA); Singapore International Arbitration Centre (SIAC), Singapore; and Amarchand & Mangaldas & Suresh A Shroff & Co (AMSS), the seminar has 'Changing Face of Arbitration in India' as the central theme. 

Legal practitioners and academicians will come together in a lecture series and throw light on the different facets of international arbitration law namely international commercial, maritime and investment treaty arbitration. Some of the biggest names in the field of arbitration, including former Chief Justice of India A M Ahmadi, additional solicitor general of India Gourab Banerjee, deputy counsel at ICC Paris Abhinav Bhushan and Tejas Karia of AMSS will be addressing the seminar. 

The first panel discussion will see official representatives from the ICC, LCIA and SIAC discuss the benefits of institutional arbitration over ad-hoc arbitration and best practices in the context of institutional arbitration. In the second panel discussion, scholars, practitioners, experts, users and arbitration enthusiasts will deliberate on how to make India a better seat of arbitration.

Source - timesofindia.indiatimes.com/city/ahmedabad/Gujarat-National-Law-University-to-hold-seminar-on-global-arbitration/articleshow/32036248.cms

Powers of Law Commissions - The Hindu

The Law Commission of India



As we get closer to the great grand election, there is much talk about the enforcement of the moral code of conduct across the country. It is a sad reality that in a country with a rich history and heritage, the politicians and leaders need to be reminded about the etiquettes of public speaking. The seat of judiciary in New Delhi, the Supreme Court on Thursday asked the Law Commission to look into the issue of hate speeches made by leaders of political, social and religious outfits and consider framing guidelines to regulate provocative statements. This week, freewheeling will focus on the Law Commission. 

Law Commission of India is an executive body consisting of legal experts established by the Central Government whose major function is to work for legal reform. More than a dozen research personnel work for this organisation. The administrative side is taken care of by the secretarial staff.

From the 1830s , Law Commissions have been constituted from time to time to recommend reforms to clarify on particular branches of law. The first law commission was established in 1834 under Lord Macaulay. The second, third, fourth Law commissions were constituted in 1853, 1861 and 1879 respectively. These Law commissions have played a great role in enriching the Indian Statute Book. The Indian Code of Civil Procedure and the Transfer of Property Act are products of the labour of the first four Law Commissions.

The first Law commission of independent India was established in 1955 with Setalvad as Chairman. As of today, there have been 20 Law Commissions, each with a term of three years. The present Law Commission (the twentieth) came into effect from September 1, 2012 and its term ends on August 31, 2015.

Areas of work 

The Law Commissions identify laws which are no longer relevant, not in harmony with the existing climate, and laws which require change. It also suggests suitable measures for quick redressal of citizens’ grievances, in the field of law. Law Commission takes all necessary steps to make the poor benefit out of the legal process. These are just a few of the many things that the law commission does. Apart from examining the laws for promoting gender equality and suggesting amendments, it also recommends revision in the central acts.

The Ministry of Law in consultation with the concerned administrative ministries considers the reports of the law commissions and submits it to the Parliament. Subsequently, they are acted upon by government departments concerned.

From - Powers of Law Commissions - The Hindu

Law Commission to propose changes to Arbitration Act - From The Hindu

The Law Commission will submit a proposal for amendments to the Arbitration and Conciliation Act, 1996, to strengthen the arbitration system to settle disputes.

“The submission before the Law Ministry is likely by the end of April,” said AP Shah, Chairperson, Law Commission of India.

Arbitration is out-of-court dispute resolution. The procedure is simpler than the rigour observed in courts but the “award” by the arbitrator is legally binding. Speaking at a conference organised by The Nani Palkhivala Arbitration Centre here, he said the changes to the Act are aimed at a harmonious relationship between courts and the arbitration system. “Courts must be partners, not supervisors,” he said.

However, the proceedings of certain arbitrations seem questionable. He cited an instance of the Delhi High Court dismantling two arbitrations on the grounds of undue delay and complaint by the parties of excessive fees.

The amendments will help bolster the credibility of arbitration and fortify the process against interference by courts. There are provisions to look at enlarging the scope of cases that can be referred to arbitrators and non-appointment of arbitrators related in any way to parties in contention. A list of cases in which an arbitrator should not judge and proposals to regulate delay are also among the recommendations.

“After two years of proceedings, the parties may extend, but once 30 months get over, the court may intervene,” he said.

Source - http://www.thehindubusinessline.com/news/states/law-commission-to-propose-changes-to-arbitration-act-soon/article5792501.ece