Latest news with #EoM
The Hindu
03-08-2025
- Politics
- The Hindu
Tipu Sultan laid the foundation stone for KRS: Mahadevappa
The foundation stone for KRS built across river Cauvery in Srirangapatna was originally laid by the eighteenth century ruler Tipu Sultan, said Minister for Social Welfare H.C. Mahadevappa. Speaking after laying the foundation stone for Ambedkar Bhavan in Srirangapatna near here on Sunday, Mr. Mahadevappa said the foundation stone for the reservoir laid by Tipu Sultan is found at its entrance. Claiming that nobody has the courage to say so now, the Minister quoted B.R. Ambedkar and said people, who 'don't know history cannot create it'. Srirangapatna, which is historical place, was the capital of the region during the reign of Tipu Sultan. Mr. Mahadevappa said Tipu had a mosque on one side and a temple on the other. 'He would hear Allahu Akbar from one end and the temple bells on the other,' he remarked. The Minister went on to credit abolition of devadasi system to Tipu Sultan and said the erstwhile ruler also strove to protect the interests of oppressed classes. Further, Mr. Mahadevappa said sericulture was introduced in the country for the first time by Tipu Sultan. Describing Tipu Sultan as a freedom fighter, who fought the British in the battlefield and even forged an alliance with the French to counter the British, Mr. Mahadevappa said the ruler made Gubbi and Harihar as commercial centres. Taking exception to people, who do not understand Tipu Sultan, Mr Mahadevappa said the eighteenth century ruler did not discriminate among his subjects. EoM
Time of India
20-07-2025
- Business
- Time of India
Tax department probes over 20 insurers over breach of expense limits
The Income Tax Department is looking into over 20 insurance companies they to see if that have breached regulatory Expense of Management (EoM) limits over the past two fiscal years, according to people familiar with the development. The move could impact five to six life insurers and as many as 15 general insurers, including standalone firms such as Niva Bupa Health Insurance and GoDigit General Insurance. Explore courses from Top Institutes in Select a Course Category Data Analytics Data Science Healthcare healthcare Finance Operations Management Product Management Cybersecurity Others Public Policy PGDM Technology Project Management Management MBA Leadership Artificial Intelligence Digital Marketing CXO others Data Science Degree Design Thinking Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details To be clear, no notices have been sent as yet. These insurance companies under the scanner either overshot their regulatory expense limits or failed to provide sufficient explanations for cost overruns. Notices are expected to land in the coming weeks, with tax implications likely if companies are unable to justify the expenditures post change in norms by IRDAI in April 2023, sources in the know added. The income tax scrutiny follows 2022 notices by the DGGI to around 20 general insurance companies operating in SEZs, alleging unpaid dues of ₹2,000 crore. Similarly, life insurers have been facing a huge tax battle with the GST authority for allegedly issuing invoices without rendering actual services, with the adjudicating authority concluding that transactions were not actual. HDFC Life , for instance, is facing ₹5,500 crore tax notice for 2017-2022. Similarly, others including ICICI Prudential Life have also allegedly routed excessive commission payments to corporate agents under the guise of advertising expenses through marketing vendors. Following these tax notices, IRDAI, in April 2023 removed product-specific commission caps, putting an overall cap on expenses. This led to a jump in commissions paid by life insurers by 22% year-on-year in FY24 to ₹51,524 crore, while those by general insurers nearly doubled to ₹39,600 crore, according to IRDAI's annual report. About half of those companies are yet to limit their EoMs to 30% or 35% that the regulator has stipulated. The regulator has asked for a clear roadmap every quarter in terms of what is their plan to achieve the numbers within that limit of 30% or 35%. Listed Niva Bupa had reported expense of management ratio of 37.4% for FY25, which is 190 basis points above the allowable expense ratio of 35.5% considering 35% and some allowances on insure tech. The company has given a glide path in achieving EOM norm. While Go Digit has been able to reduce expense ratio to 33.4% in FY25 against 36.3% in FY24, it is still above the regulatory requirement of 30%. "Now, IRDAI obviously would be very serious about this, and this is my personal opinion, that I would expect IRDAI to take some corrective actions on EOM so that they can actually achieve the objective of lower commissions," said Kamesh Goyal, founder Go Digit Insurance, during an investor call in May. "So, we are on the path of reducing EOM, and the reduction has been decent. But the industry's trend is otherwise, especially with 1/n, and a lot of companies would actually be seeing an increase in EOM, bigger or smaller ones both."
Time of India
17-07-2025
- Automotive
- Time of India
India's insurance sector: Growth to slow down; dragged by muted auto sales and weak corporate health renewal
The insurance industry is facing a noticeable slowdown, primarily dragged down by weak motor sales and a dip in corporate policy renewals, according to a recent research report by Nuvama. The report indicated that overall industry growth is likely to remain subdued, driven majorly by a decline in vehicle sales and a reduction in the renewal of corporate insurance policies. However, the muted performance in the auto sector may be partially offset by the recent hike in third-party (TP) insurance premiums. Nuvama also noted that large incumbent insurers could stand to gain from the stricter enforcement of the Expenses of Management (EoM) regulations recently implemented by the Insurance Regulatory and Development Authority of India (IRDAI). 'We expect slower industry growth largely due to a slowdown in motor sales...... Retail health expanded 9.8% YoY while group remained flat at -0.1% YoY dragged by lower corporate policy renewals,' the report said, quoted by ANI . It also pointed out that retail policy growth was impacted by the one-nth (1/n) recognition model for long-term health policies, which tempered reported growth figures. In the motor insurance segment, growth has clearly decelerated, attributed mainly to weak retail vehicle sales. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dubai's Next Icon: Experience Binghatti Aquarise Luxury Binghatti Developers FZE Learn More Undo The Gross Direct Premium Income (GDPI) in this category increased by 6.7% year-on-year in June 2025, a drop from the 8.2% YoY growth seen in May 2024. Within motor insurance, third-party (TP) premiums grew by 8.1% YoY, while own damage (OD) insurance posted a more modest rise of 4.7% YoY. Public sector general insurers, meanwhile, continued to aggressively capture market share, reaching 29.4% in Q1 FY26, an increase of 222 basis points from the previous year. In June 2025, their growth in the OD and TP segments stood at 4.7% and 18.8% YoY, respectively. On the whole, the insurance industry's GDPI growth remained sluggish in June 2025. While the fire insurance segment saw a notable upturn with 20.6% YoY growth, the health insurance segment recorded a moderate 3.3% YoY increase. Excluding crop insurance, overall GDPI rose by 9.3% YoY. Within motor insurance, OD and TP premiums grew by 4.7% and 8.1% YoY, respectively. The broader slowdown in the sector is largely being attributed to the slump in motor vehicle sales and a reduction in corporate renewals, though select categories such as fire insurance and TP motor insurance have shown signs of resilience. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
