PATNA: Bihar government on Tuesday signed MoUs with three insurance firms -- ICICI Lombard, Chola Mandalam M S Insurance and Royal Sundaram for giving Rashtriya Swasthya Bima Yojana (RSBY) benefits to below poverty line (BPL) families in 22 districts.With this, 30 of the state's 38 districts are now covered by RSBY. While ICICI Lombard has been given the responsibility of 11 districts, Chola Mandalam M S Insurance and Royal Sundaram have been allotted three and eight districts respectively.
Prior to the Tuesday's MoUs, BPL families of eight districts were provided health insurance cover under the RSBY by Oriental Insurance. The Yojana was launched in the state by chief minister Nitish Kumar on August 20 last year.
The RSBY provides a health insurance cover worth Rs 30,000 each to BPL families for which the premium is paid by the Centre and the state concerned on a 75:25 basis. A smart card, issued to the beneficiary, allows him/her to avail of the cashless hospitalisation facility.
Health insurance for BPL families in 22 more dists
Doubling of rise in National Insurance will affect 20 million people
Middle and higher earners face paying hundreds of pounds more to the taxman because of a rise in national insurance and a freeze in the thresholds at which the basic and higher rates of income tax kick in.
As Labour struggles to fill a huge black hole in government finances, Alistair Darling revealed that from 2011 people would be stung by a one percentage point increase in national insurance. He had previously said that only a 0.5 percentage point rise would be necessary.
Many middle-income earners will also be dragged into the 40 per cent tax net after the Chancellor said he would freeze the higher-rate tax threshold. He also announced that there will be no increase in the personal allowance in April.
The national insurance increase will affect anyone who earns £20,000 or more — up to 20 million people, says PricewaterhouseCoopers. The damage will be offset for lower earners by an increase in the national insurance starting point.
James Dolan, of the accountant Grant Thornton, said: “These changes are set to yield the Treasury around £2.7 billion a year, equivalent to ½p on the basic rate of income tax.”
The standard rate of national insurance for employees will rise from 11 per cent to 12 per cent. Workers will be charged 2 per cent on all earnings above the upper limit.
From 2011, someone earning £30,000 will pay £87 more in national insurance. Those earning £100,000 will pay an extra £786. The rate for employers will also increase to 13.8 per cent, in a move which has been condemned as bad for business.
21% less for life insurance
A little over EUR 276 million is the amount of gross written premiums on life insurance, which represents 17.6% of the insurance market. The nominal evolution in European currency was -21%, which means a reduction in life insurance business, with over EUR 74 million less than the amount recorded in late September last year.
The top 10 companies on the market have underwrote, cumulated, 95% of the volume on life insurance and, excepting the leader ING Asigurari de Viata, none of the companies in TOP 10 life insurance maintained the same position in the hierarchy.
Therefore, ING Asigurari de Viata remains the market leader and, because it has decreased less than the market average, it managed to gain almost 1 percentage point market share.
BCR Asigurari de Viata is the only company that managed to spectacularly increase, amid the negative evolution of the entire market. The company underwrote nearly EUR 40 million and grew by over 22%.
The market share gained by the company increased by 5 percentage points, up to 14.4%.
According to estimates, AIG Life has underwritten EUR 29 million and fell by over 50%, compared to the achievements of the first 9 months of last year. The company lost almost 7 percentage points of market share. It remains to be seen whether the results at the end of year will confirm or not this estimate.
The most spectacular rise, from the point of view of the positions gained in the hierarchy, was that of AVIVA, which recorded a decrease of only 5% of the underwritings, and thus climbed from the 9th place to the 4th place. ASIROM, GENERALI and EUREKO climbed, each, one position in the top. GROUPAMA fell 4 positions, while GRAWE dropped two places, down to the 9th place.
Jobless insurance tax rising
Nebraska employers figured that they might pay higher unemployment insurance taxes next year, but now they're getting the specifics: Rates will more than double for most companies.
Although the increases can vary widely among employers, most rates will increase about 165 percent. The average annual payment per employee will increase to $300 from $113, beginning in April.
The State Labor Department mailed notices this week to 47,000 Nebraska employers with the specific payment rates, from zero to a maximum of $780 per employee. The previous maximum amount was $486.
Even so, said David Brown, president and chief executive of the Greater Omaha Chamber of Commerce, “The timing couldn't have been worse to have this kind of an increase. This is really a burden on all businesses and particularly small businesses. They're already trying to figure out how to maintain cash flow.”
Brown said the Legislature could change the way the tax rate is determined, so it could be adjusted to allow for unusual economic conditions. But it's too late to halt the 2010 increases.
The stiff increase revives a debate about whether the state should have gone after $43.6 million in federal stimulus funds designed to soften the recession's impact on state unemployment insurance trust funds.
This is the fifth year that Nebraska has determined the rates under a 2005 state law that sets a mathematical formula to keep the employer-funded unemployment insurance trust fund solvent.
Between Oct. 1, 2008, and Sept. 30, 2009, the trust fund paid out $189 million in unemployment benefits, more than double the $90 million paid out in the previous fiscal year. To replenish the fund, the formula raised the rates that employers will pay in 2010.
Senate Defeats Antiabortion Amendment To Health Reform Bill
The Senate on Tuesday voted 54-45 to table an amendment to its health reform bill that would prohibit coverage of abortion services in any health plan insuring people who receive federal subsidies, though the action "is unlikely to be the final word on how the issue is dealt with in the health bill," the New York Times reports. The amendment, offered by Sens. Ben Nelson (D-Neb.) and Orrin Hatch (R-Utah), was virtually identical to an amendment adopted in the House health reform bill (HR 3962) that was introduced by Rep. Bart Stupak (D-Mich.). The amendment stated that no federal money could be "used to pay for any abortion or to cover any part of the costs of any health plan that includes coverage of abortion," except in cases of rape, incest or to save the life of the woman. Women could use their own money to buy "separate supplemental coverage for abortion." The current language in the Senate bill would allow federally subsidized insurance plans to cover abortion services but would require plans to segregate federal funds from private money that would pay for the services (Pear/Herszenhorn, New York Times, 12/9). During a floor speech before the vote on Nelson's amendment, Senate Majority Leader Harry Reid (D-Nev.) said the bill's current language represents "a fair middle ground" on the issue (Murray/Montgomery, Washington Post, 12/9). Reid, an abortion-rights opponent who voted against Nelson's amendment, said that the "reason I oppose abortion and the reason I support this historic bill are the same: I respect the sanctity of life" (Hook/Levey, Los Angeles Times, 12/9). He added that the health reform bill is "not an abortion bill" and that the Senate "can't afford to miss the big picture," noting that "[n]either this amendment nor any other should overshadow the entire bill or overwhelm the entire process. ... I will not support efforts to undermine this historic legislation"
Forex: USD/JPY edges up past 88.40, hits session high
FXstreet.com (Barcelona) - The Dollar weakened during late Asian session to find support at 87.75 day low ahead of the European session opening, and the pair has rallied during European trade to reach levels past 88.40 to hit a fresh day high at 88.45.
On a larger perspective, the pair is shaping a triangle formation, which, according to Ian Coleman, technical analyst at Turtle Index, is likely to be broken to the upside: "The only negative view is the fact that I struggle to count the move down in three waves. We are, however, making a triangle formation and I would expect a break to the upside. 9054 would be the first target then 91.26 and 93.00."
At the moment, the Dollar is struggling at 88.40 area, and in case of further appreciation, the pair could find resistance at 88.70 (Dec 9 high) and 89.05/20. On the downside, support levels lie at 87.70 (session low) and below here 87.35 (Dec 9 low) and 87.00/20.
France In Favor Of Matching UK Bank Bonus Tax - Government Official
France In Favor Of Matching UK Bank Bonus Tax - Government Official
PARIS -(Dow Jones)- France is in favor of matching a tax on bank bonuses that will be applied in the U.K and is likely to slap such a levy on bonuses to be paid out in 2010 for the past year, a senior French government official told Dow Jones Newswires Thursday.
The U.K.'s decision to tax bank bonuses could make a similar move easier in France as it removes concern about the competitiveness of Paris as a financial market place, the official added.
"We are in favor of such a tax as the French president has outlined in the Wall Street Journal. In so far as this will be applied in the U.K., this removes one of the main competition hurdles for Paris," the official said.
In a co-authored article published in Thursday's Wall Street Journal, French President Nicholas Sarkozy and Prime Minister Gordon Brown said a one-off tax on bank bonuses should be considered a priority.
The U.K's initiative was outlined Wednesday in the government's latest budget plan and will consist of a 50% tax on some bonuses to be paid by banks to employees.
-By Nathalie Boschat, Dow Jones Newswires; + 33 (0) 1 40 17 17 40; nathalie.boschat@dowjones.com
Forex: EUR/GBP reacts up after BoE holds rates unchanged
FXstreet.com (Barcelona) – The Euro is rising right now against the Sterling in the minutes following the BoE decision to maintain unchanged its interest rate and its asses purchase program. The EUR/GBP has risen from intra-day low at 0.9020 to test MA55 hourly chart at 0.9050.
EUR/GBP is trading around 0.9040/50, 0.30% below opening price action at 0.9055.
The Bank of England has decided to leave its official bank rate unchanged at 0.5% as well as to maintain its bond buying program at GBP200 billion. Bank affirms in its statement: “The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”