BackNews in numbers | General insurance premiums may go up by 10% in April
Reinsurance rates could increase in segments such as motor and property insurance, which have faced losses due to natural calamities
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₹ 4,100 crore
What is it? The value reportedly attached to the Kingfisher Airlines brand by tax and advisory firm Grant Thornton India in 2011.
Why is it important? The Serious Fraud Investigation Office (SFIO) is now investigating how Grant Thornton arrived at this valuation, which was used by Kingfisher Airlines as the single largest collateral to avail loans. The banks are struggling to recover at least some part of it. The valuation was done when the now grounded airline was almost bankrupt, cash-strapped airlines were seeking a bailout package from the government and oil prices were ruling the skies.
Tell me more: According to sources, the SFIO has sent notices to Grant Thornton and the lenders regarding this matter. The grounded airline owes ₹ 9,091 crore to banks.
5.18%
What is it?The retail price inflation in February 2016.
Why is it important? Inflation has slowed down compared to a 5.69% rise recorded in January. This is well within the Reserve Bank of India’s retail inflation target of 6% by March this year and has led to calls for the central bank to cut interest rates on or before 5 April when its next monetary policy review is scheduled. The fall is due to lower food inflation (5.3% in February versus 6.85% in January).
Tell me more: India’s wholesale price inflation fell for the 16th consecutive month in February, declining an annual 0.91%, mainly due to falling oil prices and lower vegetable prices.
6
What is it? The number of states where winter crops such as wheat, mustard and chickpea have been damaged due to unseasonal rains and hailstorm over the last few days. The states are Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh and Maharashtra.
Why is it important? Though the extent of the damage is unknown, this could result in the fourth straight crop loss for farmers. The previous three crop failures caused a 0.2% fall in agricultural output in 2014-15 and if the situation worsens, the sector’s expected 1.1% growth may be difficult to achieve.
Tell me more: Indian agriculture is beset with problems including two consecutive droughts, unusually dry and warm winter and unseasonal rains, which have forced some farmers to end their lives.
10%
What is it? The likely increase in reinsurance rates in April, according to Alice Vaidyan, chairman and managing director of General Insurance Corporation, India’s sole reinsurer.
Why is it important? This may push up general insurance premiums. Reinsurance rates could increase in segments such as motor and property insurance, which have faced losses due to natural calamities. For instance, insurance companies fielded claims worth nearly ₹ 5,000 crore during the Chennai floods.
Tell me more: A couple of months ago, some industry officials had said that reinsurance rates would decline due to softening global reinsurance prices and, therefore, general insurance premiums are not likely to go up.
4.2
What is it? Mumbai’s score in its ability to deliver quality of life on a scale of 10.
Why is it important? Mumbai topped a list of 21 cities across 18 states but it compares poorly with global benchmarks such as London and New York, whose scores were 9.4 and 9.7, respectively. Thiruvananthapuram and Kolkata were ranked second and third, while Chandigarh occupied the last spot for the second time in a row. This highlights the distance the government has to cover in making 100 Indian cities ‘smart’ by 2022.
Tell me more: The survey was done by Janaagraha Centre for Citizenship and Democracy. The report focuses on the root causes (flawed legislations, policies, processes and practices) of problems such as bad roads, lack of continuous water supply and over-stretched public transportation.
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