Rishi Mehra

Did you know that accurately valuing warranties is critical for your business’s financial health? Warranties involve future payments based on past commitments, appropriate provisioning is essential as per IFRS 37 / INDAS 37 / AS 29. If your business intends to deduct warranty provisions while filing income tax returns, these provisions must be developed using a scientific methodology rather than being made on ad-hoc basis. According to the Hon’ble Supreme Court of India, provisions set on an ad hoc basis are not deductible; they must constitute a liability. Both the Hon’ble Supreme Court and IFRS 37 / INDAS 37 / AS 29 stipulate that a provision is a liability which can be measured only by using a substantial degree of estimation. A provision is recognized when: (a) an enterprise has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation ; and (c) a reliable estimate can be made of the amount of the obligation. This is why an independent actuarial assessment is essential. Our firm can provide certified warranty valuations and help you understand the warranty risks specific to your business. For more information, reach out to us at [email protected], or call us at +91-9015388214. Please visit our website for more details on Warranty Valuation: https://lnkd.in/g3Rppt2H

4

We’ve seen a significant uptick in enquiries on M&A and tax risk insurance in India over the past 12 months - there are some interesting developments in both areas. Please do reach out if you have any questions. #taxinsurance #mergersandacquisitions #wandiinsurance

12

Sharing my thoughts on insurance's role in inclusive growth in India in this ET BFSI article. Check out the link to learn more about the topic. Together, let's ensure a more prosperous and secure future. #PNBMetLife #FinancialSecurity #InsuranceForAll

176

6 Comments

As per Aon's Global Risk Management Survey 2023 ,Intellectual Property (IP) risks are fairly underrated when it comes to prioritization among risk professionals across the globe. In the Indian context we rarely have any meaningful discussions around that. I personally have been aware of IP insurance cover being available since last 10 years but my hunch is I do not feel there have been many policies that have been sold. Sporadically we get into discussion around it but then it usually fizzles out. The fact that intangible assets , mostly in the form of IP make up to 90% of S&P 500 companies value, makes one wonder why IP risks are rated so low by Risk Professionals across the globe. There has also been an increase in IP litigations as well. My take is just like Cyber Risks which were present in the horizon for more than a decade before it got due attention in the past few years, IP risks may follow the same path. However with the proliferation of AI , which I believe may accelerate IP related infringement and dispute, in fact make us redefine what constitutes an infringement, IP risks may come up the pecking order in prioritization for Risk managers lot sooner than cyber Risks did.

28

The next session at MachineCon 2024 was a panel discussion on "The Impact of GCCs on the Insurance Sector," featuring Prashant Dahiya - Head GBS Strategy and Operations, Swiss Re, Prawal Kalita -Managing Director, Marsh, moderated by Rai Rajani Vinodkumar - Head AI Platforms, Chubb. The panelists discussed the ongoing digital transformation in the insurance industry, emphasizing the adoption of advanced technologies such as AI and ML to boost productivity, drive innovation, and scale operations. Key points included: - The adoption of AI and ML to enhance productivity and innovation within the insurance sector. - The critical importance of data security and compliance in the implementation of advanced technologies. - The potential of AI and automation to improve efficiency, streamline processes, reduce costs, and enhance customer success. How AI-powered chatbots can expand the client base and provide more meaningful services. The session highlighted the transformative role of GCCs in the insurance sector, showcasing the benefits and challenges of integrating advanced technologies.

51

#GST Relief Alone May Not Make Health #Insurance Affordable Arguing for GST waivers on health insurance premiums based on a breakdown of each sector’s contribution to #tax revenue is misguided. Emerging sectors may naturally have a smaller contribution due to their infancy, but that doesn't justify special treatment. Furthermore, there’s no compelling evidence that GST relief alone would significantly drive penetration. For instance, the benefits of Section #80D tax deductions haven’t drastically boosted #healthinsurance #adoption. The real issue is how much customers will be paying three years from now, as spiraling #premiums could outpace any tax relief. Some states rightly argue that the potential for GST relief could simply allow insurers to hike premiums at a faster rate, diluting any real benefit. Instead of focusing solely on GST, the Group of Ministers (GOM) should have expanded the discussion to explore long-term #affordability, forecasting the landscape five to ten years from now. A bolder solution would be to earmark the GST collected on premiums for subsidies—similar to #Singapore’s #MediSave—for those who are critically ill and unable to afford coverage. More than two-thirds of #healthcare costs in #India will come from the #elderly and those suffering from non-communicable diseases (#NCDs). Addressing this demographic is crucial. The debate should have shifted to a deeper examination of how to structure health #savings and insurance to ensure sustainability. There’s no guarantee that those buying insurance today will still be able to afford it in a decade. The focus must be on asking the right questions: Are we merely addressing superficial concerns, or are we tackling the root causes of escalating healthcare costs? If we want a meaningful solution, we must look beyond tax breaks and pursue structural reforms in health insurance including product design that includes #primarycare so that we can reasonably guarantee long-term affordability and health security for all. The time has come to reimagine health insurance policies with a view toward the future. We need actionable frameworks that ensure affordability, especially for the vulnerable, and a focus on healthcare savings that truly benefit the population at large. Tax relief alone is not the answer.

14

1 Comment

#MCPersonalFinance | Why senior citizens over 70 need separate health insurance covers, despite Ayushman Bharat 🛡️🏥 Preeti Kulkarni shares more insights on this👇 https://lnkd.in/dP2uXy5q #SeniorCitizen #HealthInsurance #AyushmanBharat

4

The Case for GST Relief on Medical Insurance In recent Lok Sabha discussions, the call for GST relief on medical insurance has gained traction. With general and stand-alone health insurance companies achieving a medical premium of ₹97,000 crore in FY24 and contributing ₹17,500 crore in GST on the same in a year , growing at 20%+, it’s clear that this sector plays a vital role in supporting government revenues. However, as overall revenue collections rise, it's time to revisit GST rates on essential items, with health insurance at the top of the list. Why GST Relief on Medical Insurance Makes Sense: Affordable Healthcare: Reducing GST can make health insurance more accessible, encouraging more people to secure their health. Preventive Care: Insurance policies often come with benefits like annual health check-ups and wellness programs. More affordable insurance means wider access to these preventive measures, developing a healthier population and reducing long-term healthcare costs. Strengthening the Insurance Ecosystem: Increased insurance penetration can drive innovation and improve services within the industry. I think reduction in GST rates on health insurance is a logical step towards a healthier India . Let's advocate for changes that support the well-being of every Indian. #Healthcare #medicalInsurance #GSTRelief #PolicyChange #AffordableHealthcare #LokSabha #IndiaHealth

221

17 Comments

From Strategy to Execution ✅ Here’s a glimpse of Asit Rath, CEO & MD at Aviva India in an exciting and insightful conversation with MY FM - Radio Division of Dainik Bhaskar Group (D.B. Corp. Ltd.) as he shares his vision on the current landscape of Life Insurance in India and opportunities that lie ahead. Stay tuned for full episode #Leadershiptalk #FutureReady #AvivaIndia

258

8 Comments

Unit Linked Insurance Plans (ULIPs) have been a topic of debate and confusion among investors for years. Despite their introduction in the Indian market over 50 years ago, misconceptions about ULIPs continue to mislead potential investors. Often perceived as complex and risky, ULIPs have evolved significantly to offer a blend of insurance and investment benefits. Let me set the record straight and highlight why ULIPs might be the right investment tool for you. Myth 1: ULIPs Are Expensive Fact: Contrary to popular belief, ULIP charges have decreased significantly. Modern ULIPs come with lower costs, thanks to regulatory caps on fund management fees and reduced policy administration charges. Some new plans even offer features like the Return of Mortality Charge (ROMC), which further reduces costs. Myth 2: Market Performance Affects Insurance Cover Fact: The insurance cover in ULIPs is independent of market performance. In the event of a policyholder’s death, the higher of the sum assured or the fund value is paid out. This ensures that the life cover remains robust regardless of market fluctuations. Myth 3: ULIPs Are High-Risk Fact: ULIPs offer a range of fund options to suit different risk appetites. Whether you prefer conservative debt funds or aggressive equity funds, ULIPs can be tailored to match your risk tolerance. The ability to switch funds based on market conditions helps manage and mitigate risk effectively. Myth 4: ULIPs Offer Low Returns Fact: ULIPs have proven to deliver competitive returns over the long term. By investing in well-managed funds, ULIPs can provide significant capital appreciation. With the added benefit of tax exemptions on long-term capital gains, they can be a valuable addition to your investment portfolio. Myth 5: ULIPs Cannot Be Surrendered Early Fact: ULIPs come with a lock-in period of five years. After this period, you can surrender your policy without penalties. If you need to exit before the lock-in period, the fund value is preserved and payable after the five-year mark. Understanding these facts helps demystify ULIPs and highlights their potential as a versatile investment tool. Explore ULIPs with a clear perspective and make informed decisions that align with your financial goals. #ULIP #Insurance #myths #mythvsfact #investment #finance

9

Major GST relief for general insurance sector: Key demands addressed.

1

Celebrating the Life of Amitabh Bachchan: An Insurance Perspective As we celebrate the birthday of the legendary Amitabh Bachchan, it’s intriguing to reflect on how his life experiences intertwine with important lessons about insurance and risk management. From health challenges to financial hurdles, Amitabh’s journey is a testament to resilience, and it also highlights the crucial role of insurance in navigating life’s uncertainties. Surviving Injury on Set In 1982, while shooting for the film “Coolie,” A.B. suffered a near-fatal accident that left him critically injured. This incident underscores the unpredictable nature of life, particularly for those in high-risk professions like acting. Such events emphasize the importance of having adequate health insurance, not only for medical expenses but also for ensuring peace of mind during recovery. Navigating Financial Challenges Amitabh faced significant financial difficulties when his production company, Amitabh Bachchan Corporation Limited (ABCL), nearly went bankrupt in the late 1990s. This challenging period in his life illustrates how business ventures can face unexpected setbacks. It serves as a reminder of the importance of business insurance, which can protect against losses due to unforeseen circumstances, ensuring continuity and stability. Health and Well-being In the early 2000s, Amitabh ji was diagnosed with tuberculosis (TB), a condition that required significant medical attention. His battle with this illness highlighted the importance of health insurance in covering treatment costs and the psychological support needed during such difficult times. It also aligns with a broader message about prioritizing health, encouraging everyone to secure comprehensive health coverage. Advocating for Life Insurance Amitabh Bachchan has long been a face of trust and reliability, serving as the brand ambassador for ICICI Prudential Life Insurance Company Limited. Through this role, he has emphasized the importance of life insurance in providing financial security for families in the event of unforeseen circumstances. His endorsement has played a significant role in promoting awareness about securing one’s family’s future. Supporting Social Initiatives He has endorsed the Pradhan Mantri Jyoti Bima Yojana, a govt initiative aimed at providing affordable life insurance to the economically disadvantaged. This initiative not only highlights his commitment to social causes but also emphasizes the critical role of insurance in improving the quality of life for millions of Indians. Conclusion As we honor AB Sir on his birthday, let us also celebrate the lessons learned from his remarkable journey. His experiences remind us of the importance of resilience, the need for comprehensive insurance coverage, and the commitment to securing our future and that of our loved ones. Happy Birthday, Amitabh Bachchan! Your journey inspires us all to navigate life’s uncertainties with courage and foresight.

47

7 Comments

Celebrity power couple Virat Kohli and Anushka Sharma are set to reap substantial rewards from their investment in Go Digit General Insurance ahead of its IPO. Kohli invested ₹2 crore for 266,667 shares, while Sharma invested ₹50 lakh for 66,667 shares in January 2020. With Go Digit announcing a price band of ₹258 to ₹272 per share for its IPO, Kohli's stake could yield ₹7.5 crore, and Sharma's could realize ₹1.85 crore, totaling a significant profit of ₹6.75 crore. The grey market already shows a premium of around 18% above the official price range, indicating strong investor interest.    Go Digit offers a diverse portfolio of insurance solutions, including health, liability, property, marine, travel, and auto insurance policies, with 74 active products across various business lines, and theirs is one of the most eagerly awaited IPOs of the year.    Read the full article here: https://lnkd.in/dWFdqbwU   #CelebrityInvestors #GoDigitIPO #ViratKohli #AnushkaSharma #InvestmentSuccess #WealthGrowth #InsuranceSolutions #InvestmentOpportunity

9

Big Relief for General Insurance Industry.. 📢 Industry Call Answered: Reinsurance & Coinsurance Not Subject to GST The GST Council has clarified that reinsurance and coinsurance are not taxable services. This decision relieves 20 insurers from tax demands totaling ₹12,000 crore. This move is expected to bring certainty to the insurance sector and avoid double taxation issues. #Insurance #GST #Reinsurance #Coinsurance #TaxRelief #IndustryNews

217

5 Comments

🚀 Exciting News in the Insurance Sector! 🚀 LIC, India's largest and most trusted insurer, is considering a strategic move, ĺic may acquire few private health insurance company. This bold step will mark LIC's entry into the rapidly growing health insurance market, enhancing its portfolio and offering comprehensive health coverage solutions to millions of Indians. With this acquisition, LIC aims to leverage its extensive experience and robust infrastructure to bring innovative and customer-centric health insurance products. This move not only signifies LIC's commitment to expanding its horizons but also its dedication to meeting the evolving needs of its policyholders. Stay tuned for more updates on this significant development! #sukantasingharoy #healthinsuranceconsultant #LIC #Insurance #HealthInsurance #StrategicAcquisition #BusinessGrowth #Healthcare #CustomerCentric #Innovation

90