US coal companies could lose discount on clean-up insurance
The program that allows America’s coal companies to “self-bond” to discount clean-up insurance costs in the event of bankruptcy is being examined by regulators. The program was introduced in the late 1970s and is designed to protect taxpayers from the cost of cleaning up old mines in the event of the coal company’s insolvency. Reuters reports that as the coal industry’s finances have been declining the Office of Surface Mining Reclamation and Enforcement is questioning whether it is right for them to self-bond using their balance sheets; and if they are not entitled to do so then it also raises a question mark over their use of the program. If the regulator decides that the firms are ineligible then they will have to pay market rates for the insurance.
BNP Parabis, IAG to increase stakes in Indian insurer
The State Bank of India says that the partner in its life insurance business wants to increase its stake. BNP Parabis Cardif currently holds 26 per cent of the joint venture’s stock but SBI says that want to add 10 per cent. There will be no additional capital infusion as BNP will buy some of SBI’s 76 per cent holding. Additionally the bank’s partner in its general insurance business is also increasing its stake. Australian firm IAG will take an additional 23 per cent to take its stake to the 49 per cent maximum FDI that is allowed in Indian insurers.
Former Canadian Life agents jailed
Two former agents at Canada Life’s business in the Republic of Ireland have been jailed for fraud. Martin Reilly (59) was convicted of stealing 832,000 euros (U$923,800) from clients during his time as an insurance agent in Dublin. The Independent reports that Reilly convinced 18 clients to take funds from their existing Canada Life policies and invest them in products which did not exist. The insurance company has reimbursed those affected. In a separate case 33 year old Patrick Walsh was convicted of defrauding Canada Life of 215,000 euros (U$238,750) by creating fake policies for non-existent clients and then receiving commission for them.
