9021 - How point-of-sales person will help curb misselling of insurance - Financial Express

How point-of-sales person will help curb misselling of insurance

The PoS can sell comprehensive motor insurance, third-party liability, personal accident cover, travel insurance policy, home insurance policy and any other policy specifically approved by Irdai

By: FE Bureau | November 3, 2015 11:44 AM

To facilitate the growth of non-life and health insurance business in the country, the Insurance Regulatory and Development Authority of India (Irdai) has introduced a new type of distribution model called Point-of-Sales Person.

It will be an individual who possesses the minimum qualifications and has undergone training and passed the examination as specified in the guidelines.

There are a number of people involved in undertaking simple and routine activities like solicitation and marketing of insurance policies. For example, a bulk of products in motor insurance, travel insurance and personal accident insurance require very little underwriting. These are largely pre-underwritten products where information is provided by the prospect and the policy is generated by the system. The intervention required for such a product is minimal and the training and examination for such persons could be of a lesser degree.

The guidelines suggest that there will be two types of persons who will solicit and market insurance policies. For one, an insurance agent, or specified persons of corporate agent or broker-trained persons for soliciting and marketing insurance policies or insurance sales persons of insurance marketing companies. The second will be Point-of-Sales Person (PoS) who can solicit and market only certain pre-underwritten products approved by the authority.

The PoS can sell comprehensive motor insurance, third-party liability, personal accident cover, travel insurance policy, home insurance policy and any other policy specifically approved by Irdai. Every policy sold through PoS will be separately identified and pre-fixed by the name PoS. The insurer will have to file the product with the regulator under the file-use guidelines for information.

Every PoS will be identified by the Aadhaar Card Number or his PAN Card. The persons soliciting and marketing such pre-underwritten products approved by the authority as PoS will have to be at least a matriculate. He will be sponsored to National Institute of Electronics and Information Technology (NIELIT) by the insurance company or the insurance intermediary with whom he will work for undergoing online training specified for PoS. The fees for the online training and examination will not be over R500, which will be paid to NIELIT by either the insurance company or the intermediary sponsoring the individual.

The training module will be hosted on NIELIT website as approved by Irdai and the PoS will appear for the online examination conducted by NIELIT, which will be the examining body. On successful passing of the examination, the candidate will be issued a letter by NIELIT certifying him as a PoS.

The PoS will be made liable to a penalty as per the provisions of Section 102 of the Act. Where  ever sales are done through the insurance intermediary, the latter will record the Aadhaar card number or the PAN of the PoS in the proposal form. Insurance companies and intermediaries will have to make suitable changes in their policy administrative system to capture the Aadhaar number or the PAN details of the PoS. Also, the PoS when engaged by the insurer will place business with that insurer subject to compliance of rules and procedures of that insurance company.

The insurance regulator will specify the format maintaining returns which the insurance company and the intermediary will maintain in electronic form and these can be accessed by the authority on a remote location base.

The formats will have to mention the number of policies sold and the premium collected by the PoS on a monthly basis. The policy will be tagged to the Aadhaar number as every proposal form — in paper or paperless form — will carry provision to record the Aadhaar number of the person selling the policy.

Analysts say the move will curb misselling of policies as the insurance company can keep a tab on the PoS.

First Published on November 03, 2015 12:05 am

9006 - Guidelines on PoS person issued - The Hindu

HYDERABAD, October 28, 2015

Guidelines on PoS person issued

• N. RAVI KUMAR

Insurance Regulatory and Development Authority of India (IRDAI) has come out with elaborate guidelines on Point of Sales (PoS) person, who sells non-life products such as motor and home insurance.

In doing so, it has mandated that such representatives be identified by their Aadhaar (unique identity) number or PAN (Permanent Account Number) cards.

As per the guidelines, announced on Monday, the PoS person can sell only pre-underwritten products. This comprises motor comprehensive insurance package policy for 2-wheeler, private car and commercial vehicles; third-party liability policy for such vehicles; and personal accident, travel insurance and home insurance policies besides any other policy specifically approved by the regulator. Every policy sold through the representative would have to be separately identified, by the insurance firm, and pre-fixed with POS followed by name of product. With the intervention needed for sale of pre-underwritten products minimal, the training and examination for such representatives could be of a lesser degree, the Authority said stipulating that a POS person should be at least 10{+t}{+h}class pass.

Either the insurance company or the insurance intermediary for whom the representatives work should sponsor them to the National Institute of Electronics and Information Technology (NIELIT) for undergoing online training specified for POS Person. On clearing its online examination, the Institute would certify them. While renewing the certificate conduct of the POS Person on their rolls will be considered.

8863 - SC refuses to expand uses of Aadhaar card - Deccan Herald

SC refuses to expand uses of Aadhaar card

NEW DELHI, OCt 08, 2015, DHNS

Constitution Bench to hear pleas by govt agencies

The Supreme Court on Wednesday refused to oblige multifarious government agencies and regulatory authorities by passing any order to expand the use of Aadhaar card for other than LPG and PDS schemes.

Their requests would be decided by a Constitution Bench, it said. A three-judge bench presided over by Justice J Chelameswar said a batch of PILs challenging the validity of the Aadhaar card for being repugnant with right to privacy has already been referred to the Constitution Bench for adjudication.

The applications filed by the UIDAI, Trai, IRDA, Sebi, RBI, Pension Fund Regulatory Authority and different state governments would also be considered by the Constitution Bench, the court said.

The government is likely to urge the Chief Justice of India (CJI) to set up a Constitution Bench in view of the order which came as a setback to it. On Tuesday, the matter was  mentioned before the bench presided over by CJI H L Dattu, who said it was difficult to spare seven judges at the moment for the Constitution Bench.

After hearing arguments a day before, the bench, also comprising Justice S A Bobde and Justice C Nagappan, had put the matter for passing order on Wednesday, also on the issue of maintainability of those modification pleas. The same bench had on August 11 referred the PILs, including one filed by former Karnataka HC judge Justice K S Puttaswamy, to a Constitution Bench of appropriate strength to determine the legal issue if the right to privacy was a fundamental right.

The court had then also directed the government to ensure that the Aadhaar card is not made mandatory for citizens to avail any benefit. It had also ordered that the card would not be used for any purposes other than linking it to PDS and LPG cylinders

However, the UIDAI, Trai, IRDA, Sebi, RBI, Pension Fund Regulatory Authority and different state governments, including, Jharkhand, Haryana and Rajasthan, sought modification of the order, saying if the starving poor voluntarily came forward for the Aadhaar, it should be allowed to be used.

The Trai claimed the card issued by the UIDAI should be permitted to be used as valid document for purchasing SIM cards in order to obviate any possibility of the mobile phone being used by terrorists.

The Sebi also claimed the use of the card would help in curbing use of black money in stock market.
  

8858 - SC says no to restrictive use of Aadhaar card - Business Standard

SC says no to restrictive use of Aadhaar card

The apex court declines to modify its order restricting Aadhaar card use only for PDS benefits

BS Reporter & PTI  |  New Delhi 

October 8, 2015 Last Updated at 00:20 IST

The central government and financial institutions suffered a setback on Wednesday, when the Supreme Court declined to modify its order restricting Aadhaar card use only for public distribution system (PDS) benefits. The issue would now go before a larger bench to be set up by the Chief Justice of India.

The central and some state governments, along with Securities and Exchange Board of India (Sebi) , Reserve Bank of India(RBI), banks and other public institutions were vehemently arguing that the court order of August 11, restricting the use of Aadhaar cards only to essential items, has stalled their functioning. They had contended that those who voluntarily come forward to register for the identity card should be allowed to do so. Sebi and the banks argued that the use of the card would allow them to track black money operations.

However, a three-judge bench headed by J Chelameswar did not change the order and stated in its order that it would be better that the issue be decided by a larger bench. "We are of the opinion that it is better that these applications for modification are also heard by a larger bench," the three-judge bench, which also included Justices S A Bobde and C Nagappan, said.

The question of the validity of Aadhaar has been caught in constitutional knots from the beginning. The scheme was challenged by a former high court judge and several organisations alleging that it violated the right to privacy by seeking too many personal details which could be leaked out and misused by private parties.

The right to privacy was argued for several days and then that bench referred the question - whether there is such a right in the Constitution - to a constitution bench.

Meanwhile, the government and financial institutions wanted a change in the interim order allowing them to demand Aadhaar card from people who approach institutions to avail of various benefits. This issue has also gone to a constitution bench with Wednesday's order.

According to the Attorney General, 920 million people have already received their cards and they gave information voluntarily. He had also assured the court that the information will not be shared with any unauthorised persons or entities. However, the pleas for relaxation of the August 11 order restricting the use of Aadhaar cards for PDS scheme and LPG (Liquified petroleum gas) distribution scheme, was opposed by those petitioners on whose PILs the apex court had said these cards will not be mandatory for availing benefits of welfare schemes.

On August 11, the apex court had said that Aadhaar card would remain optional for availing welfare schemes of the government and the authorities would not use it for the purposes other than PDS and LPG distribution system.

The Centre, RBI, Sebi, Insurance Regulatory and Development Authority, Telecom Regulatory Authority of India, Pension Fund Regulatory Authority and states like Gujarat and Jharkhand had recently moved the court and pitched strongly for voluntary use of Aadhaar cards for providing benefits of various schemes, other than PDS and LPG, at the doorsteps of the aged and the weaker sections.

FACT CARD

• The Supreme Court declined to modify its order restricting Aadhaar card use only for public distribution system benefits
• The court order of August 11, restricting the use of Aadhar cards only to essential items, has stalled their functioning, argued the Securities and Exchange Board of India along with other contenders
• 920 million people have already received their cards and they gave information voluntarily, according to the Attorney General

8854 - TRAI, IRDA, PFRDA too reach Supreme Court on Aadhaar issue - Money Life

TRAI, IRDA, PFRDA too reach Supreme Court on Aadhaar issue

MONEYLIFE DIGITAL TEAM | 06/10/2015 06:24 PM |   

The SC is likely to announce its decision on Wednesday on applications by RBI, SEBI and others for permission to use Aadhaar card for schemes 

Seeking clarification on usage of Aadhaar number, other regulators like Telecom Regulatory Authority of India (TRAI), Insurance Regulatory and Development Authority and Pension Fund Regulatory and Development Authority (PFRDA) too have reached the Supreme Court. These regulators along with Reserve Bank of India (RBI) and market regulator Securities and Exchange Board of India (SEBI) have  asked for clarification on the apex court's order notwithstanding the fact that the SC had for the fourth time on 11 August 2015, had reiterated that Aadhaar cannot be a condition for obtaining any benefits otherwise due to citizens.

Read Full Article at Money Life

8853 - Centre piches for voluntary benefit of Aadhaar card in Supreme Court -i Economic Times

Centre piches for voluntary benefit of Aadhaar card in Supreme Court

By PTI | 6 Oct, 2015, 09.10PM IST

Centre and its various arms today pitched strongly in the SC for voluntary use of Aadhaar cards to provide benefits of various welfare schemes, other than PDS and LPG. 

NEW DELHI: The Centre and its various arms today pitched strongly in the Supreme Court for voluntary use of Aadhaar cards to provide benefits of various welfare schemes, other than PDS and LPG, at the doorsteps of the aged and weaker sections of society, which are the target groups. 

However, the pleas for relaxation of the August 11 order restricting the use of Aadhaar cards for PDS scheme and LPG distribution scheme, was opposed by those petitioners on whose PILs the apex court had said these cards will not be mandatory for availing benefits of welfare schemes. 

A bench comprising Justices J Chelameswar, S A Bobde and C Nagappan reserved its order for tomorrow on the pleas for relaxation, modification and clarification of its interim order by Unique Identification Authority of India (UIDAI), RBI, SEBI, IRDA, TRAI, Pension Fund Regulatory Authority and states like Gujarat and Jharkhand, among others. 

Attorney General Mukul Rohatgi opened the arguments for UIDAI for lifting the bar on use of Aadhaar cards for various welfare schemes including Prime Minister's Jan Dhan Yojna. He was supported by Additional Solicitor Generals Tushar Mehta, P S Patwalia, Pinky Anand and senior advocates K K Venugopal, Jayant Bhushan who were appearing for various government organs and NGOs. 

All of them were in agreement with the Attorney General that since the apex court had said Aadhaar card was not mandatory, there should not be any problem in allowing it to be used on voluntarily basis to establish the identity of persons to make available the benefits of welfare scheme. 

Rohatgi conceded that he may not have understood fully the scope of the UIDAI scheme or was not able to explain properly to the apex court the benefit of the Aadhaar cards which he has realised now after passing of the interim order. 

"I don't want to be seen as blaming the court," he told the bench after explaining in detail the concept of the UIDAI number which is linked to various welfare schemes. 

He said issue of privacy cannot be linked to the Aadhaar card as the government is making efforts for those who cannot reach the court. 

"I am for those who have to take benefits of MNREGA, pension schemes etc. How it is understood that somebody is snooping into someone's bedroom. I am not doing that and I am not a paparazzi," he said. 

Read more at:

http://economictimes.indiatimes.com/articleshow/49247057.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

8852 - No interim relief: SC refers Aadhaar case to larger bench - Money Control

Oct 07, 2015, 04.43 PM | Source: Moneycontrol.com

No interim relief: SC refers Aadhaar case to larger bench

A Supreme Court bench hearing the applicability of Aadhaar for

essential services referred the matter to a larger Constitutional

bench, and refused to provide interim relief for it and regulators

seeking the use of the identification program.

The case involved the government and regulators such as RBI, SEBI, PFRDA and TRAI seeking permission from the apex court to mandate the use of the biometric information-based identification program for telecom and financial services or for schemes such as Jan Dhan Yojana or or MGNREGA.

Opponents of Aadhaar say mandating its use could be an invasion of privacy and expressed concerns over security of users' data.

The Aadhaar, operated by the Unique Identity Authority of India

(UIDAI), is the world's largest biometric based idenfication system.

The program was started by the erstwhile UPA government and has been given a push by the current government, which has expressed its wish to widen its scope.

8851 - SC declines to modify order on Aadhaar use, refers matter to constitution bench - Live Mint

Last Modified: Wed, Oct 07 2015. 04 42 PM IST

SC declines to modify order on Aadhaar use, refers matter to constitution bench

The Supreme Court restricts Aadhaar use to identifying beneficiaries of the public distribution system and subsidies on cooking gas and kerosene

The constitution bench is yet to be constituted by the Chief Justice of the Supreme Court, H.L Dattu. Photo: Mint

New Delhi: A Supreme Court bench on Wednesday declined to modify its 11 August interim order restricting Aadhaar to food and fuel for now, and referred the issue to a larger constitution bench.

The earlier order by the three-judge bench comprising justices J. Chelameswar, S.A. Bobde and C. Nagappan had said that the use of Aadhaar should be restricted to identifying beneficiaries of the public distribution system (PDS) and subsidies on cooking gas and kerosene.

“Even for the PDS, kerosene and LPG (cooking gas) distribution system, the card will not be mandatory,” the court order had said.

Mint reported that the Union government would put up a joint defence for Aadhaar before the court to allow the use of the unique identification number for various welfare schemes.

The Insurance Regulatory and Development Authority, Securities and Exchange Board of India, the Telecom Regulatory Authority of India, Pension Fund Regulatory and Development Authority, Life Insurance Corp. of India, the income tax department and the Reserve Bank of India have supported the government plea to modify the court’s 11 August order and sought to link Aadhaar to the schemes they offer.

On Tuesday, Attorney General Mukul Rohatgi who led the arguments against the court’s stay on the use of Aadhaar, had asked the court “if an interim order stops the benefit from reaching 50 crore (500 million) people?”

Separately, a reference on whether the Aadhaar scheme would be a violation of a citizen’s fundamental right of privacy was on 11 August referred to a larger constitution bench for its consideration. The bench is yet to be constituted by the Chief Justice of the Supreme Court, H.L Dattu.

Now, the applications seeking clarification and modification of the interim order will be decided by the same constitution bench that will hear the privacy issue.

Apurva Vishwanath

8805 - PMO’s Aadhaar card push: Mobilizing support via states a good idea - Financial Express

PMO’s Aadhaar card push: Mobilizing support via states a good idea

PM Narendra Modi has done well to mobilize BJP states like Gujarat and Haryana to petition the Supreme Court on its order on the usage of Aadhaar card...

By: The Financial Express | October 1, 2015 3:12 PM

Prime Minister Narendra Modi has done well to mobilize Bharatiya Janata Party (BJP) states like Gujarat and Haryana to petition the Supreme Court on its order on the usage of Aadhaar card, and while regulators like The Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) have also joined the petition, others like Pension Fund Regulatory and Development Authority (PFRDA) and Insurance Regulatory and Development Authority (IRDA) are also expected to follow suit soon. As Narendra Modi pointed out in his Silicon Valley speeches, Aadhaar is one of the pivots of his anti-poverty strategies. Since creating jobs is not going to happen in a hurry, Modi’s best bet is to ensure the poor get all the money that is meant for them. If around half of this gets siphoned off along the way – that’s Rs 150,000 crore this year, for the centre alone – what kind of anti-poverty fight is Modi going to wage? Indeed, the petition by the Gujarat government puts it very well – with Harish Salve appearing for Gujarat, a bevy of top-notch lawyers will appear in the case representing various states/regulators – when it says that the SC needs to extend its own logic. The SC – which allowed Aadhaar for PDS, but made it non-mandatory – the Gujarat petition says, ‘was guided by the right to food, which is contained in Article 21 of the Constitution … it is submitted that the schemes falling under other rights, viz, the right to work, right to receive old age or disability pensions under the Article 21, may also be treated equally’.

While Gujarat’s petition includes MGNREGA under Article 21, Sebi and RBI say that Aadhaar allows easier Know-Your-Customer (KYC) and therefore, allows a much easier participation in banking/stock markets – for the poor who wish to open bank accounts, Aadhaar is critical, especially so in the case of payments being made through mobile phone networks.

Given that the SC’s real hesitation in making Aadhaar mandatory relates to its possible impact on privacy, the Unique Identification Authority of India (UIDAI) would do well to have a special presentation on that alone, to show that Aadhaar’s network is such that it cannot be used to get details of users – indeed, as this newspaper has pointed out there is enough data on various official websites such as the Election Commission and property tax ones to be able to construct detailed profiles of individuals – and then there is Facebook, not to mention that most apps on phones demand access to a user’s contacts and calendar and, often, location details. Getting Aadhaar through is vital for the Modi government, so it has to put everything it has to convince the SC of its credentials, apart from showing how it is critical for the poor to get their rights.

First Published on October 01, 2015 1:09 pm

8788 - Modi govt goes all out for Aadhaar - LIve Mint

Last Modified: Thu, Oct 01 2015. 11 39 AM IST

Modi govt goes all out for Aadhaar

More departments to approach Supreme Court for review of interim order; PM Narendra Modi to personally review Aadhaar enrolment

Saurabh Kumar

On Wednesday, Narendra Modi called a meeting of state secretaries as well as other stakeholders in the Aadhaar unique identity number programme and asked them to push ahead with their enrolment initiative. Photo: Bloomberg

New Delhi: Prime Minister Narendra Modi and his National Democratic Alliance (NDA) government are pulling out all the stops to ensure that the Aadhaar number doesn’t lose relevance in the face of a legal challenge to its use.

On Wednesday, soon after his return from the US, Modi called a meeting of state secretaries as well as other stakeholders in the Aadhaar unique identity number programme and asked them to push ahead with their enrolment initiative. The Prime Minister asked the states to complete the enrolment by December; he will personally review the progress every month. Thus far, 920 million people have been enrolled in the project.

A government official familiar with the matter said the Telecom Regulatory Authority of India (Trai), Insurance Regulatory and Development Authority, Pension Fund Regulatory and Development Authority and the state governments of Maharasthtra, Jharkhand and Chhattisgarh will also seek a review from the Supreme Court of its 11 August interim order restricting the use of Aadhaar to paying subsidies for the public distribution system and cooking gas.

That follows Tuesday’s united defence of Aadhaar in the Supreme Court by the Unique Identification Authority of India (UIDAI), Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and the state of Gujarat—all, again, sought a review of the order, which has jeopardized the government’s Digital India plan as well as the country’s move to a cashless economy.

In total, there will be 11 such review petitions, the official added, speaking on condition of anonymity.

On Tuesday, the bench adjourned the hearing to 6 October and is likely to decide whether the case can now be heard by the same three-judge bench or if it should be heard by a larger constitution bench to which the case has been referred. Supreme Court chief justice H.L. Dattu is yet to notify the constitution of a larger bench to hear the matter. The 11 August interim order did not ask the government to stop the process of enrolment.

Rarely have so many regulators and state governments approached the Supreme Court for such a review.

A second person familiar with the developments who spoke on condition of anonymity said that apart from highlighting the utility of Aadhaar, this is also a move to clearly delineate the powers of the executive from those of the judiciary. Indeed, over the past decade, courts have repeatedly stepped into the realm of policy-making—something that the Modi government hopes to stop.

Interestingly, while addressing the Indian community at SAP Centre in San Jose, California, on Monday, Modi emphasized the utility of Aadhaar in saving subsidies given for liquefied petroleum gas cylinders. He had said that India is moving ahead with “JAM of all”, short for Jan Dhan (a scheme to give people no-frills bank accounts), Aadhaar and mobile governance. He also said that giving a unique number to each citizen will help eliminate duplication in providing government benefits.

Under the Aadhaar-based direct benefit transfer (DBT) for LPG, or Pahal Scheme, so far 142.5 million beneficiaries have received Rs.25,795.93 crore in their bank accounts since the scheme was relaunched in November 2014. The government expects to save Rs.15,000 crore in leakages in LPG subsidy every year.

Also, as reported by Mint on 25 September, the government expects to save 40% of the subsidy through DBT in foodgrains, which will be an annual saving of around Rs.50,000 crore (mintne.ws/1KC83qG).

A Trai official who did not want to be identified confirmed that the telecom regulator was moving an application before the Supreme Court on the subject. The regulator wants a clarification on whether telecom subscribers can use Aadhaar as identity proof. As of July 2015, the total mobile subscriber base of the country was 983.21 million.

The first government official said that states have been directed to set up camps in schools and maternal and child welfare centres, especially in rural areas, to enrol children in the Aadhaar programme.

“Out of the 350 million or so people who do not have Aadhaar, around 250 million are people below the age of 18 years. This population does not have proper government identity and the enrolment drive will focus on this. The Prime Minister believes that Aadhaar is a transformational tool and an enabler,” the official said.

Of the 920 million Aadhaar enrolments, 240 million have been done after the current National Democratic Alliance government came in to power in May 2014, said the first government official quoted above.

As of now, Aadhaar number has been seeded for various government schemes such as Jeevan Pramaan, DigiLocker, scholarships, Jan Suraksha Schemes, passports and voter’s identity cards, among others.

The Supreme Court’s 11 August order came in response to several petitions that questioned whether the mandatory use of Aadhaar for various government welfare schemes discriminates against those who don’t have the number, and concerns related to privacy and abuse of the Aadhaar database.

Although the Supreme Court didn’t stop the process of enrolment under Aadhaar, a petitioner in the case who did not want to be identified said the enrolment cannot be forced or mandatory. “We have collected instances of the court’s order being violated and we will submit it to the court in the next hearing,” the petitioner said.

The idea of Aadhaar numbers, issued by UIDAI, was hatched during the rule of the United Progressive Alliance government. The project currently doesn’t have legislative backing.

Apurva Vishwanath contributed to this story.

Saurabh Kumar