Vol 5 | January 2014

Hi, Are You The Famous “Engage”? The New

HRMS Portal OfChola MS?

Hi, Can You Please Tell Us

Your Story!

An HRMS Portal With…Workflow based system

Interes�ng Features!Easy To Access!

Online Approvals!Online Helpdesk!

Sure, Well, Chola MS decided to come up with one of the Best HRMS portal’s

for their employees!

Each Team Member Worked

On It Day & Night..

Thought through Interes�ng, Unique,

User-friendly FeaturesFor The New HRMS

Portal!

A�endanceDetailsAny�me!

Daily Dips�ck!Online

Helpdesk!

What’s YourMood Today?

OnlineApprovals!

What’sThe Buzz?

And Thus Was Born

Patna

Delhi

JaipurHO

IndoreMumbai

TriupurKolkataInvited Employees

Across The Country To Suggest An

Interes�ng Name!

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Seasons’ Greetings!

As we continue to embark our journey of “Profitable Growth”, it gives me yet another opportunity to connect with you all through this edition of “Aspire” - a word that continuously resonates with our thought process.

Growing profitably has always been our business strategy and not merely an

embellished expression. This continues to be possible as we align our core capabilities and resources in an all-inclusive manner. Our Vision

2020 re-emphasizes this and addresses by way of waves. As we enter the final quarter of this financial year, all the transformation and business-as-usual activities should come to the fore in driving our targets and initiatives.

Our efforts during the first three quarters of FY14 has given impressive bottom line result. Congratulations to each one of you on this achievement. We continue to rank 7th in the private sector space in terms of GWP. Year to date Dec 13, our GWP stood at Rs. 13165 Million - 12.1% growth over previous year and the same is in line with industry. Month of Dec

13, witnessed a significant growth of 25% over corresponding period of previous year. Year to date Operating PBT grew by 44% over PY same period. To my mind, this was possible due to the new structure with a substantial organization bandwidth to address channels and geographic opportunities with clear importance to lines of business. Our mass media campaign continue to affirm our brand positioning and visibility that rightly reflected our customer centricity - A value proposition that we always believed in.

Our way for the future will be based on our belief to navigate each one of the parameters like product, process, and people through channels in geographies. The external environment will continue to challenge us. The regulatory landscape too will unsettle the way we function. When the going gets tough, the tough gets going. Let us continue our good work by taking longer and firmer strides.

Wishing you good luck now and ever.

S S Gopalarathnam Managing Director

Our efforts during the first three quarters of FY14 has given impressive bottom

line result. Congratulations to each one of you on this

achievement.

☞ MD's Message☞ Chola MS Events ❖ Chola MS - IBL tie up ❖ CIFCO Training Marathon ❖ BI Training Workshop ❖ Rededication Day ❖ 3rd Quarter Awards and others☞ Chola MS in the News ❖ CBI - 103 years celebration ❖ National Convention of Company

Secretaries ❖ CIFCO - Chola MS cricket match in

Patna

Editorial Board: Chitra K, Neeraj Moorjani and Rajalakshmi B

ASPIRE Core Committee: Deepak Ranganathan, Kamod Kumar Dubey, Kavitha Balasubramanian, Nayanmoni Das, Pradeep Mittal, Sanjay Srivasthava, Soumi Tapan Roy Ghose, Subhomoy Sen and Venkateswaran S

MD’s Message

☞ NewInitiatives ❖ Branch Transformation ❖ Commercial connect ❖ Care 2 clear up – By Smitha Kumar,

AGM, CRM ❖ 5th Pillar of Sales – By Deepak

Ranganathan, National Head, Sales Training

☞ III exams☞ Customer Complaints ☞ News from across branches☞ Employee Corner ❖ Why core is important-Kavitha

Balasubramanian, Manager, CRM

❖ Interesting facts about human behaviour - Sanjay Srivasthava, AGM, Claims, Lucknow

☞ Gyan ❖ Companies Act 2013 - Impact -

Dhanunjay Nakka, Sr. Manager, HO U/wl

❖ Dynamism thy name is insurance - Rajkumar, AGM, Underwriting

❖ Yoga _ Introduction- Manjunatha BN, Internal Audit.

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Chola MS Events

CIFCO Training - 3666 trained in 2 weeks"!

Chola MS has renewed the corporate agency agreement with IndusInd Bank Ltd for the next 5 years. The relationship was developed at every level and the service extended speaks volumes about this relationship. What began as a humble beginning in 2008 has today blossomed into the second largest Banca relationship in the General Insurance Industry. During these years, Chola MS has been able

to develop other lines of business in addition to Motor with IBL. A GWP of Rs.1750 crores was completed in the last 5 years with IBL. Another ambitious goal has been set for the team for the next 5 years i.e. 2013-18. Let us join hands together as usual and make the seemingly impossible possible!

Chola MS - IBL tie up

A new “Health Product” & an enhanced “Personal Accident” product for CIFCO Vehicle Loan Customers were launched by Chola MS in December 2013. A total of 3666 employees of CIFCO were trained at their offices across India in 2 weeks by the Chola MS team- Trainers, State Banca Heads & some State Heads from Chola MS on product features, advantages, benefits and selling pitch. A session on motor insurance was also conducted along with this training.

Our CMO, Mr. Vedanarayanan Seshadri expressed his appreciation for this phenomenal team effort. He was confident that both CIFCO and Chola MS teams would leverage the learning from this training and scale the health business to new heights. Glimpses of the training across India are seen in the photos..

Cifco Training- Health, PA, Motor

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Rededication day - MDs Speech Rededication Day - Resolution Rededication day - Audience

Quarterly Awards

LEAG Team at Pondicherry 2014 Rededication Day - Cake cutting with new comers

Rededication Day - Introduced Wedding Gift policy

BI Training Workshop at Head Office on 27th January 2014

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Sl No.

Initiatives Winning Region Name

Individual Category awards

1 Major supportive role for growing the Marine portfolio 120% above the budget for the nine months in this year

Chennai - HORaja J, Sr. Manager - Underwriting (Marine) -HO

2 New initiative for releasing Banca renewal quotes

Mumbai ROSuchita Suresh More – Back Office Associate – Underwriting Mumbai

3 MIS Support for Banca Transformation to Mckinsey Team

Chennai - HO Balakrishnan V, Asst Manager - MIS, HO

Sl No.

Initiatives Winning Region Department

Team awards

4 “Chola MS Wellness-on-the-go” an android based mobile app for delivery of digital health card and value added wellness and service applications.

Chennai - HO - Mobile Application

IT & Operations

5 Chola Engage - A new HR portal launched. "Chennai - HO Human Resources"

HR

6 Fast Track Policy issuance "Chennai - HO Operations"

Operations

7 Clearance of incomplete proposals "Chennai - HO Customer Services"

Operations

8 The State With Best Target Achievement & Growth In Retail & Banca

Rajasthan Sales & Marketing

9 The Best Target Achievement In Commercial New Delhi Sales & Marketing

10 The State With Best RLAP Score Jharkhand Sales & Marketing

11 The State With Best CAB performance for 103 Foundation Day - CBI

Bihar Sales & Marketing

12 The State With Best Penetration In Shubh & Sambandh In CIFCO

ROM Sales & Marketing

13 The State With Best Tractor Volumes (B + NB) Madhya Pradesh Sales & Marketing

14 The State With Best T P Volumes Rajasthan Sales & Marketing

15 The State With Best Renewal Ratio (B + NB) West Bengal Sales & Marketing

16 The State With Best Retail Health Business Madhya Pradesh Sales & Marketing

17 The State With Best Deposit Conversion in IBL Orissa Sales & Marketing

18 The State With Highest Volume With <20% DTD In IBL

Uttar Pradesh Sales & Marketing

19 The State With Best Improvement In MIBL LR Gujarat Sales & Marketing

20 The State With Best BT Implementation Andhra Pradesh Sales & Marketing

21 The State With Best AT Implementation Tamil Nadu - II Sales & Marketing

22 The State With Best Growth in IBL North East Sales & Marketing

23 Best Region with Highest CALORELI Settlement New Delhi Claims

24 Best Region for submitting survey reports with-in 48hrs of receipt of Invoice/ Better disposal of claims.

Bihar & Jharkhand (Patna)

Claims

Quarterly Awards

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Chola MS in the News

By Subhomoy Sen, Sr. Manager,Internal Audit, Kolkatta

There was a cricket tournament at Patna on 4th Jan14 between CIFCO & Chola MS. Chola MS emerged as winners in the final & our State Business Head Bihar-Santosh Kumar was adjudged as “Man of the Series” for bagging 9 wickets in the tournament. The news item is - Reported by Subhomoy Sen. The synopsis of the tournament is given below.

Match 1 - CIFCO B v/s CHOLA MS A - Chola MS won by 11 wickets

Match 2 - CIFCO A v/s CHOLA MS B - CIFCO won by 3 wicketsMatch 3 - Final Match between CIFCO A v/s CHOLA MS A - CHOLA MS won the match.Mr. Santosh Kumar(State Business Head Bihar) MAN of the SERIES with 9 Wickets..WINNING CAPTAIN - MR. RITESH RANJAN-BM PatnaMr. Suryakant with a cameo of 101* in the final match, bagged the MAN of the MATCH award.

Cricket at Patna

The Central Bank of India, celebrated its 103rd Foundation day on , at Madurai.

Finance Minister P Chidamabaram presided over the function, along with the opening of 103 new branches & 103 ATMs through video conferencing.

Rajeev Rishi, Chairman and Managing Director of the Bank said the bank had always been a common man's lender and chose the occasion to focus on the rural and under privileged sector as well. The Bank also launched a special Chola

Arogya Bhima Health Insurance Policy through the Finance Minister, to provide affordable Health Insurance to 1.03 lakh rural families. Chola MS marched proudly as the Insurance partner for the century old Bank. 103 medical camps were also conducted in collaboration with Chola MS.

Five hundred and three Women Self-Help Groups were linked with Bank's Financial Assistance.

R K Goyal and Animesh Chauhan, Executive directors of the Bank, were also present at the occasion.

The Central Bank of India's 103rd foundation day

Our MD Mr. SS Gopalarathnam, addressed the 41st National Convention of Company Secretaries held at Chennai on Nov 2013. He

spoke about Corporate Governance and also was a panel member in the discussion on "Ifs and Buts with Governance and

Related Professionals". It was attended by 1200 delegates from all over India.

National Convention of Company Secretaries

- The Hindu Business Line,

Dt: 11th Jan, 2014

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New InitiativesBT Progress report

There has been noticeable improvement in performance of BT branchesAverage numbers for all BT branches

Recruitment per branch

Top quartile branches

Bottom quartile branches

1.0x

1.0x

1.0x

1.0x

1.0x

1.6x

1.2x

1.2x

1.2x

1.2x

1.5x

1.5x

1.2x

1.2x 1.2x

1.9x

1.9x

1.4x

2.2x

2.3x

Fresh health (Rs lakhs)

TP business (Rs lakhs)

Renewal %

GWP (Rs cr)

3.5x

3.8x

10x

1.3x

1.4x

1.2x

1.2x

1.9x

0.9x

0.8x

April '13 Q1 Q2 Q3

65 branches across India have been initiated into “Branch Transformation” by end of Q3.

1Dicipline of “Daily Huddle Meeting” at 9.30 am every day at all BT branches has become habit.

2Previous day’s achievement, Today’s plan, Partner recruitment & Engagement, Focus on priority LOB is being driven with rigor.

3Partner RECRUITMENT has scaled up by 2.3 times over April-13 by end of Q3 with top branches recording a scale up of 3.5 times.

4FRESH HEALTH business has nearly doubled in the 3 qtr’s with top branches generating around 4 times of April business by end of Q3.

5TP business scales up by 3.3 times with few branches scaling up 10 times over the start of the FY.

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RENEWALS has seen an increase of 40%.7AGENCY TRANSFORMATION has been launched on 2nd October 2013 and DST TRANSFORMATION launched on 2nd Jan-14.

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At present, Business Development Managers across locations send RFP request for approval to the underwriters. The process

is managed over mails, any clarifications or approval is communicated via mails. Tracking of request happens through excel file. The current process not only consumes time but also has non value added steps which increases the complexity of the process. In addition exchange of communication

between various stakeholders happens over phone call or email, which leads to more time

consumption in responding to queries, and finally leads to higher turnaround time (TAT) In order to overcome the above mentioned problem, Chola MS has taken an initiative for automating the process of raising a RFP request to converting that to a policy. After implementing this workflow application there will be no mail communication for RFQ processing. We have also built the Premium rater into Cordys which reduces the overall process time since it is currently done in Excel. In Cordys the closing slip will get auto-generated once the Quote is approved in system. Also the status of all RFQ’s can be tracked thereby increasing visibility.

Commercial Connect For Group Health Goes Live

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The 5th Pillar - Your trainers

Know Your Colleagues - Care 2 Clear Up: The Journey- Smitha Kumar, AGM - CRM (HO)

Early in March 2013, the Chola MS Famous Five met at Dare House in Chennai, to discuss five critical issues. An action force to tackle each of these issues was deputed, marking the start of an adventurous journey. Little did we realize the Treasure Island we were on, when the action force to reduce ‘Rejections’ was thought of - In our company the term ‘Rejection’ refers to an interim status where policy issuance is pending for various reasons, viz., a document, additional information, premium collection, etc.

As this thought materialized into actions, a rollercoaster ride began - Instant head count approvals were sought, systems & workstations were organized, senior resources from CRM were moved into this team, the process note, process map and reporting formats were designed and signed off, trainings were conducted… While all this was happening, much thought was put into the christening this new arrival. What should we call this team? After much deliberation, our MD zeroed in on the name ‘Care 2 Clear Up’

- And thus was born this team of 5 members

managed by Ramya Yuvaraj, all reporting into

the CRM wing of Chola MS.

The C2CU team was excited but overwhelmed

with a heavy burden of 12.3K rejects at the

start of their journey in April 2013. The hot

summer spared none - the C2CU team, state

heads, sales, underwriting, operations both in

branches & the head office - worked hard to

lighten this load. States were soon bifurcated

based on the number of proposals in rejection,

as follows:

• Red Zone (high rejects)

• Amber Zone (moderate rejects)

• Green Zone (fewer rejects)

It is now a matter of great prestige to be in the Green Zone!

The number of rejections quickly reduced to 3.5K levels in December 2013, and this would not have been possible if it weren’t for the driving force of our Geo Head. Needless to say, the travelers’ contribution in ensuring lesser baggage is carried around, is remarkable and calls for much applause!

The journey continues and work is still in progress to make our policy issuance process hitch free & smooth

Dr. Lata Murjani

My Location: Delhi

Why did I choose to be a trainer?

Teaching and Training are similar professions and

only professions were you can earn by just speaking

and audience has no choice but to listen

Bimal Gajjar

My Location: Ahmedabad

Why did I choose to be a trainer?

This is the only profession where you can influence one

to many. Passionate about bringing behavioral change in

the individual.

Ramraj Mahadevan

My Location: Chennai HO

Why did I choose to be a trainer?

Sales guy turned trainer due to pure passion and interest towards acquiring in-depth knowledge and imparting

the same to others

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Mark Kwan Kharkongor

My Location: Kolkata (East)

Why did I choose to be a trainer?

Like to meet new people & interact, Like to hear & share experiences of the audience, Want to ensure the people I

train learn & become successful faster than we took, thru sharing

of our experience.

Vinit Kumar TaunkMy Location: Raipur

Why did I choose to be a trainer?

Actually, it was by chance and not choice

Ranganath Panchangam

My Location: Hyderabad

Why did I choose to be a trainer?

I Enjoy Learning and Sharing of Knowledge.

Bharath Sharma

My Location: Head Office

Why did I choose to be a trainer?

Its give me a oppurtiny to apply my creative mind. Accoding to me Training

just not communication of Concepts or Content. It is type

of Performing Arts. You can use training as a medium to not only make people learn but also Transform Minds

and bring very high levels of Motivation in professional &

Personal life. I relate my work with my personality.

Amit Ashit Bhowmik

My Location: West 1 (Based in Mumbai)

Why did I choose to be a trainer?

I joined Hindustan Lever's Network division wherein apart from sales, product

training and business opportunity presentations

was one of the most important function. I realized

that addressing audiences kept me happy and energetic,

also the respect which was given to a trainer made me passionate about training, since then then there has

been no looking back.

Ranganathan Deepak

My Location: Head Office

Why did I choose to be a trainer?

My 'passion' for training and Chola MS's 'plan' to have this

5th pillar co incided... The choice just got made!

Rajeswari Narang S

My Location: Chennai

Why did I choose to be a trainer?

It was rather a chance than a choice. But once I got an opportunity It became my passion because the cause that then motivated me to become a trainer is closest

to my heart. Simple words it is my husband’s dream that I am living and delivering and I enjoy every moment of it, because it is a great feeling fulfilling and living up to the

dreams of your loved one.

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Expert TalkBecome an Acknowledged Insurance Professional through III Exams!

Customer Complaints

The Insurance Institute of India formerly known as Federation of Insurance Institutes (J.C. Setalvad Memorial) was established in the year 1955, for the purpose of promoting Insurance Education & Training in the country. Institute qualifications are held in esteem both by the regulator and the industry. In its role as an leading education and training provider I.I.I. is closely associated with all the segments of the insurance industry which

includes Insurance regulatory authority of

India, public and private sector insurance

companies. Chola MS has launched a reward

program for clearing the III exams from Apr

2013.

Employees are given a cash reward of Rs.

7500, Rs. 15000 and Rs. 25000 for clearing

the Licentiate, Associate and Fellowship

Certification. In addition the Registration fee

and Examination fee will also be reimbursed.

LICENTIATE EXAMINATION This is essentially an introductory course dealing with the two compulsory papers i.e. Principles of Insurance and Practice of Insurance (Life and Non-Life) and one more paper as optional from professional exam curriculum.

A S S O C I A T E S H I P EXAMINATION At this level, students may have option to choose subjects either Life or Non-Life or both combined. The scheme of

study provides knowledge of chosen subject. However, candidates will have to get familiar with the practical aspects related to these subjects.

FELLOWSHIP EXAMINATION This is the highest level and involves advanced studies of specified areas.

Dave, a musician from Halifax, Canada, was travelling with his band on United Airlines flight via Chocago to Nebraska. On reaching his destination, Dave was horrified to find that the baggage handlers at United has damaged his $3500 Taylor guitar. We would all have forgotten him for saying, ‘This is bad’. But Dave didn’t say it.

Instead, he wrote to the customer service folks at United, told them about the loss of his beloved guitar and sought compensation for it. While United acknowledged that the guitar had been broken, no compensation was forthcoming. He was referred from one department to another with each person

blaming someone else for the unfortunate event. After nine months of persistent follow-ups, the compensation was still nowhere in sight. Now we would have understood if Dave had said, ‘This is bad!’

He did not.

Instead, with a little help from his friends in the band, he filmed a music video describing his experience. The song was titled United Breaks Guitars. And he posted the same on YouTube. By the end of a month, the video has attarched over 5 million views. Twitter, Facebook, and the blog world were all singing paeans to United breaks guitars.

The head of customer service at United called Dave and offered to compensate for the loss. He declined the offer and asked United to pay to a charity.

Dave now goes around the world speaking to corporate about his experience in customer service and the lessons he picked up along the way. He’s the Guru on Customer Service and Experience.

http://www.unitedbreaksguitarsbook.com/

Source : The internetContributed by : Neeraj Moorjani.

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News Across Branches in States

12

WeddingBells

Wedding Bells Vijayalakshmi,

Associate Back Office, General Accounts, HO

Wedding Bells Venna,

AM, Bus. Analyst

Orissa Team outingOrissa Team outing 05th January 2014 Puri Baliharchandi

Cricket Match Patna T-20 between

cms & cifco

13

Interesting Facts about Human Behavior- Sanjay Srivastava-AGM Claims-RO Lucknow

Post on Optimal Science by Trent Mankelow

• Roughly speaking, losing something makes you twice as miserable as gaining the same thing makes you happy.

• If two people live together for a long time, they start to look like each other. They grow to look alike partly because of nutrition - shared diets and eating habits - but much of the effect is simple imitation of facial

expressions. Couples who end up looking alike also tend to be happier!

• Obesity is contagious; you’re more likely to be overweight if you have a lot of overweight friends.

• On average, those who eat with one other person eat about 35 per cent more than they do when they are alone; members of a group of four eat about 75 per cent more; those in

groups of seven or more eat 96 per cent more.

• High priced entries on the menu boost revenue for the restaurant - even if no one buys them. Why? Because even though people generally won’t buy the most expensive dish on the menu, they will order the second most expensive dish.

• People are much more likely to report being in ‘flow’ on the job than during leisure.

Employee CornerWhy ‘Core Strength’ is Important!- Kavitha Balasubramanian, Manager - Customer Services, HO

So, you’ve decided to hit the gym, sweat it out & get in shape. One of the first things you’ll hear your gym trainers talk about endlessly is this - core muscle workout. This issue, we’re going to break it down for you…

The anatomy of the Core

What are ‘Core Muscles’?In its simplest definition, the core refers to all muscles in your body other than your arms & legs. The major muscles that form part of your core are in the area of your stomach - In addition to the abs, the core also includes your back, side, pelvic & buttock muscles.

Why is it important to exercise your core muscles?There are many exercises which target the

abs, which is only one part of your core. However, building an overall stronger core is crucial for staying flexible & strong, with the added bonus of keeping back pain away. It forms a sturdy link between your upper & lower body - Like the trunk of a tree, your core needs to be strong yet flexible. No matter what you do you engage your core, be it daily acts viz., breathing, sitting, standing, bending, turning, lifting, etc. or sports or household work.

Don’t for a minute forget that your core is responsible for your balance & stability - It allows you to move in any direction or stand on a spot without losing your balance. A strong core drastically lessens your risk of falling & injuring yourself. It also helps you attain good posture - Weak core muscles make you slouch and increase the wear & tear of your spine, thereby leading to a host of spine, back, neck, stability & posture-related problems.

How strong is your core?Go on, test yourself to see how strong your core is… All you need is a mat & a seconds-clock (you can simply use your phone!).• Start in a plank position with both

elbows on the floor; remember we did a plank challenge in our first issue? Here’s a picture to help you…

• Hold this position for 60 seconds.• Lift your right arm off the floor; hold for

15 seconds.• Return your right arm to the floor & lift

your left arm off; hold for 15 seconds.• Return your left arm to the floor & lift

your right leg off; hold for 15 seconds.• Return your right leg to the floor & lift

your left leg off; hold for 15 seconds.• Lift your left leg and right arm off the

floor; hold for 15 seconds.• Return your left leg and right arm to the

floor; lift your right leg and left arm off the floor; hold for 15 seconds.

• Return to the plank position (elbows on the floor); hold this position for 30 seconds.

BottomlineIf you’re able to complete this test fully, you have good core strength. Anything less means you need to work your core. Try this 4-5 times a week until you improve - We will discuss specific exercises to strengthen your core in the next issue!

Lats

Glutes

Lower Back

Chest

Abs

Obliques

Do not look up, keep your head in the same line as your body, facing the floor

Elbows should be shoulder width apart and in the same line as your shoulders; interlock your palms together

Butt should not be up in the air, but in a straight line as the rest of your body

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GyanCompanies Act, 2013 and its impact on the Companies Directors and Officers - From Underwriter’s Perspective- By Dhananjay Nakka, Sr. Mgr, Underwriting HO.

The Companies Act 2013 has introduced many changes in provisions to the earlier Act of 1956 related to governance, e-management, disclosure guidelines, compliance and enforcement, auditors’ responsibilities and mergers & acquisitions. New concepts like one person company, dormant company, small companies, registered valuers, class action suits and corporate social responsibility have also been introduced. In this article, the key changes that were introduced in the 2013 Act and which may affect many companies in India and its Directors & Officers is dealt with.

As on May 31, 2013, out of the 13.21 lac Companies registered with Ministry of Corporate Affairs in India only 8.77 lac were active Companies. The others have either closed down for various reasons or in process of getting liquidated or not filed annual

return or balance sheet for at least the last 3

consecutive years which are considered as

dormant companies. Listed Companies are less

than 1% of the 8.77 lac active Companies- the

balance being either unlisted public or private

limited companies.

There is a marked increase in the compliance

requirements mandated for all- both public

& increasingly for private companies. Some

requirements for private companies include:-

• increase in the limit of number of members

from 50 to 200,

• provisions relating to kinds of share capital

and voting rights and provisions relating

to appointment of managerial personnel

which were earlier applicable to public

companies only,

• the requirements relating to CSR are now applicable to private companies also since the criteria is based on the specified levels of net-worth, turnover and net profit.

Some other significant aspects of the 2013 Act are:-

1. Appointment of independent directors & their responsibilities:- The number of independent directors in a listed public company will have to be at least one third of the total number of directors. Tenure of office should be maximum of two tenures of 5 consecutive years with a cooling period of 3 years between the two tenures

2. Code for Independent Directors & their liability:- Code is mandatory and relates to their duties, responsibilities, manner of appointment etc. and some concerns are:-

• If we watch how people’s brains respond, promising them monetary rewards and giving them cocaine, nicotine or amphetamines looks disturbingly similar.

• 50 per cent of your overall sense of happiness is genetically determined, and so cannot be altered. The better news is that another 10 per cent is attributable to general circumstances (educational level, income, whether you are married or single, etc.) that are difficult to change. However, the best news is that the remaining 40 per cent is derived from your day-to-day behavior and the way you think about yourself and others.

• In terms of short and long term happiness, buying experiences make people feel better than buying products. Why? Our memory of experiences easily becomes distorted over time (you edit out the terrible trip on the airplane and just remember those blissful moments relaxing on the beach). Our goods, however, tend to lose their appeal by becoming old, worn-out, and out-dated. Also, experiences promote one of the most effective happiness-inducing

behaviours - spending time with others.

• Those who sit upright are much happier than those who slouch.

• To increase happiness, try walking in a more relaxed way, swinging your arms slightly more and putting more of a spring in your step. Also, try making more expressive hand gestures during conversations, nod your head more when others are speaking, wear more colorful clothing, use positively charged emotional words more (especially ‘love’, ‘like’, and ‘fond’), use fewer self-references (‘me,’ ‘myself’ , and ‘I’), have a larger variation in the pitch of your voice, speak slightly faster, and have a significantly firmer handshake.

• If you want to increase your chances of making a good impression in a meeting, sit toward the middle of the table.

• People develop a special fondness for other people, objects and statements if they are introduced to them while eating a meal. The effect may be attributable to the fact that good food puts people in a happy mood and can cause them to make faster, and more impulsive, decisions. More recently,

researchers discovered that people who have just consumed caffeinated drinks were more likely to be swayed by arguments about various controversial topics.

• The next time you are trying to be creative in a meeting, gently lean forward and pull against the table.

• If you want to get someone to help you out, try the briefest of touches on the upper arm.

• Long-term couples will feel more attracted to each other when they regularly engage in novel and exciting joint activities that involve working together to achieve a goal.

• Research suggests that telling children that they are bright and talented is a terrible thing to do. Telling children that they possess a certain trait, such as being bright or talented, is not good for their psychological health because it encourages them to avoid challenging situations, no to try so hard, and quickly to be become demotivated when the going gets tough. In contrast, praising effort encourages people to stretch themselves, work hard, and persist in the face of difficulties.

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• It states that an ”independent director shall follow ethical standards of integrity and probity”. But what would constitute ethical behavior is not defined and is open to interpretation.

• It does not give any emphasis on the need for “training of independent directors”.

• It refers to “appointment of independent directors by the board after evaluating certain attributes” but the manner in which companies need to carry out an assessment of attributes of independent directors is unaddressed.

• Independent directors are liable ‘only in respect of such acts of omission or commission by a company which had occurred with his knowledge, attributable through Board processes, and with his consent or connivance or where he had not acted diligently’. By virtue of this, the “duty of independent directors actually goes beyond its normal definition and is not restricted to executive directors only”. It is quite clear that independent directors have little or no defense and their obligations continues to remain a debatable topic since they would be held equally responsible as that of any other director for decisions made through board processes.

3. Appointment of auditors/ audit firms & their responsibility and liability:- Unlike appointment at each annual general meeting under the 1956 Act, the auditor will now be appointed for a period of 5 years, with a requirement to ratify such appointment at each such meeting. The 2013 Act introduced the concept of rotation of auditors and audit firms. In case of listed companies, it is mandatory to rotate individual auditor every 5 years and every 10 years in case of appointment of audit firm, with a cooling off period of 5 years in both cases. This new requirement may have impact on the quality of audits, cost and complexity of audits and their effectiveness.

4. Services like accounting, internal audit, actuarial services, investment and management services etc:- The 2013 Act provides that these services cannot be rendered by the audit firm either directly or indirectly through itself or any of its partners or subsidiaries. These restrictions may have been aimed at achieving auditor

independence but it will have significant impact on cost of the companies in multiple jurisdictions as they will need to employ significant resources to address this independence requirement. Also certain non-audit services which could be of benefit to a company and could enhance shareholder value, cannot be provided now.

5. Auditors’ Liability:- The 2013 Act substantially enhanced the scope and extent of auditor’s liability. The auditor is now subject to oversight by multiple regulators and the penalties and other repercussions that an auditor may now faces can be due to:-

• Professional or other misconduct • Punishment for contravention of the law • In case of fraud/intent to defraud

6. Obligation to report to Central Government:- Even an auditor/auditing firm now(as per 2013 Act) has to directly report to the central government, if he has any reason to believe that any offence involving fraud is being committed or has been committed against the company by its officers or employees. Else he will be punishable with fine of upto 25 lakhs and with minimum of 1 lakh.

7. Role of Company Secretary:- Their role in a company has become very critical and the Company Secretary (CS) has been included under the definition of ‘key managerial personnel’ under the 2013 Act. Even the requirement of certification by a CS in practice of annual return will be extended to companies having paid up capital and turnover as may be prescribed, whereas the 1956 Act requires such certification only for listed companies. It means that CS also has the strict responsibility now to cross-verify all the details related to annual returns and if he feels that anything is not in order he should take it up with the board appropriately else he also shall be held equally liable in case of any investigation on irregularities.

8. Class Action Suits:- The 2013 Act introduces the concept of class action suits (a legal form of lawsuit where a large group of individuals collectively bring a claim to court) for the first time in India. While this concept is a welcome provision considering the best interests of the shareholders and to be at par with global standards but the fact that there are always possibilities of misuse cannot be ignored. Additionally, a developing economy like India

may find it difficult to appreciate this concept and implement it successfully.

Protection available to the key directors and officers:-

So far we have been discussing about what are the key changes under the Companies Act 2013 and possible consequences on companies in India and its directors & officers. Now the question that arises is what can be the protection/immunity available for the key employees of companies. Best option seems to be companies indemnifying their directors and officers against any possible claims made on them. Is this really possible for all companies especially of small size and having limited capital and also because of ever changing economic or political reasons? Without such corporate indemnity, directors and officers have to rely on their own personal assets to pay for costs of defense and any resulting settlement/judgment against them.

There are many provisions in the 2013 Act stating that responsible key personnel of the company shall be fined upto some pre-determined amounts say 10 to 25 lacs or thereabouts for violation of various norms. But the point to note is ‘Are those issues totally settled just by paying those prescribed fines’? The real concern many people forget is the possible consequences of shareholders or investors claims on the directors and officers of companies for violation of such norms or failure to supervise such violations, for which costs itself may run into crores of rupees.

So the alternative & best option available seems to be D&O insurance by choosing appropriate covers as per the requirements of such company.

If we have to summarize the Companies Act 2013, then the liability and responsibilities in the new Act can be categorized as follows:

• Immunity is Limited• New substantive law• Several players accountable• Unlimited/high quantum of claims• Reach beyond Companies Act• Additional duties/responsibilities• Number of stakeholders• Class Actions suits• Extensive disclosures

And the best protection available to companies seems to be only D& O INSURANCE….

Published By: Cholamandalam MS General Insurance Company Ltd., Dare House, No. 2, N.S.C Bose Road, Parrys, Chennai - 600 001. Tel: +91 44 3044 5400 Fax: +91 44 3044 5550 | www.cholainsurance.com

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Cholamandalam MS General Insurance Company Limited(A joint venture between Murugappa Group &

Mitsui Sumitomo Insurance Co. Ltd, Japan)

Ohm……Saints and mystics of varied religious traditions have encountered the inner Ohm, and they refer to it by different names. The phenomenon of Aum is encountered within by saints and mystics of many religions, and described by them in various terms. • In Hindu Yoga it is known as Om, Aum,

Omkar, and Omkara.• The Sikhs have a great deal of knowledge

about the Holy Sound. Sikh masters from Guru Nanak on down have many terms for it, most notably The Shabd, Nam and "Bani" - divine inner music

• Buddhist mystics refer to it as Transcendental Sound.

• OM term occurs in various ancient and

modern civilizations. • In the Greek alphabet the last letter is

Omega which comes very close to OM. • In ancient Vedas-AUM denotes the

sound of the Sun, the sound of Light. It is the sound of assent (affirmation) and ascent (it has an upwards movement and uplifts the soul).

• The significance of the syllable OM as the beginning and end finds a parallel in many of the scripts associated with ancient languages.

• The phenomenon of Aum is encountered within by saints and mystics of many religions, and described by them in various terms.

• It is also called Pranava -which refers to either the spoken mantra "Aum" or the

actual inner sound.

• By sound and form, AUM symbolizes the infinite-the ultimate reality- also the entire universe.

This is representative of the Trinity of God-Brahma, Vishnu and Shiva.

• The three portions of AUM relate to the states: waking, dream and deep sleep.

• The three portions of AUM relate to the three gunas: rajas, satva, tamas.

All the words produced by the human vocal organ can be represented by AUM. A is produced by the throat, U & M by the lips. Its not being specific to any one country or civilization is indicative of its being an universally perceptible sound for the human race.

Innovation is the basic mantra to survive in the current competitive world more so in case of insurance industry. Given the dynamics of the economy, the needs of customer are varied & ever demanding. No more the policies with traditional coverage shall suit the requirements of the public.

The object of making products as per specific life stage - needs has started gaining ground. Insurers are exploring options in products targeting specific people, ages, needs, conveniences & pricing.

Areas in which firms are keen to explore:- Health Insurance:-

Inflation of the hospitalization costs a plethora of lifestyle diseases & medical advancements bill continue to boost demand for health Insurance.

a) Outpatient treatment b) Emergency services c) Increasing Riders d) Insistence in health / wellness program. e) Health saving accounts f) Rural health products g) Health products for lower income group.

Motor Insurance:-Motor Insurance is expected to grow in line with auto sales. Newer methods of rating shall be evolved.

a) Pay as you drive. b) Behavior based pricing.

Film Insurance:-Media liability policies not only cover legal & financial liabilities of production houses, but also ensure that the film releases on time &

the financial cost are met. Of late Insurers have been seeing a rise in demand for media policies. With rise in litigations prior to the release of films. Films producers take up these policies.

A Media liability policy covers the legal & financial liabilities arising out of acts such as errors of omission & commission by production houses. The policy cover liability arising out of wrong full act committed or alleged to have been committed by a firm. It includes libel, plagiarism, invasion of privacy, hurting religious sentiments, trade secret or slander by words / music written, spoken, audible or visual materials published or broad cast.

Whatever be the need the basic tenet of insurance has to be strictly followed. The law of large numbers & geographical spread of risk.

Simple Yoga techniques-Introduction- Contributed by Author: Manjunatha BN. Edited by: S. Venkateswaran.

Dynamism Thy Name Is Insurance- By Rajkumar, AGM, Marine Underwriting.

IRDA Regn. No. 123