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The Kotla Factory: In heart of Delhi, a village of sport strugglers | Sport-others News


FOR ANKIT Kumar, 21, a state-ranked hurdler, life is an unending race against time. When not trying to beat his coach’s stop-watch at the Jawaharlal Nehru (JLN) Stadium, he is trying to stick to the ETA while delivering orders for a quick-commerce grocery app.

The son of a welder from Kundli in Haryana, Ankit stays in a windowless room at Kotla Mubarakpur, an urban slum not far from JLN. It’s a space that he shares with four others. Ankit’s roommates and close to 1,000 other athletes at Kotla lead a similar double-life. They fund their track-and-field dreams by working as gig workers — the flexibility and independence of the industry allowing them time to move between two very distinct worlds.

“We try to complete a few orders in the morning before the afternoon sun comes out and we continue later after evening practice. I deliver from 8 pm to 2 am on most days. It affects my post-practice recovery but option kya hai (there’s no choice),” says Ankit.

As they flock to Kotla from villages in states neighbouring Delhi, many of these youngsters exercise that only “option” they have: undertake the journey to Delhi, hoping the Capital will give them a chance to make it in the impossibly competitive world of track and field. Back home, where there are no coaching and training facilities worth talking of, their dreams run into a series of obstacle courses. For instance, the West UP town of Meerut, known as a sports manufacturing hub, doesn’t have a single synthetic track for training. JLN, though poorly maintained, with a patched-up track in the main arena and a practice track that’s not fit for elite training, is still the best option for many of these youngsters. They know that they are on their own until they break into the national level, which is when they can hope for some kind of state support.

Kotla and its thousand dreams

When Ankit came to Delhi in 2018, he knew where to go. On the athletics circuit, he had heard that Kotla Mubarakpur was the ideal place for those wanting to follow in the footsteps of Neeraj Chopra, India’s first-ever Olympic track-and-field gold medallist. It’s Kotla Mubarakpur’s proximity to JLN and its budget spaces, unlike the more upmarket areas of Defence Colony or South Extension nearby, that draw Ankit and hundreds of others like him to the neighbourhood.

The area’s open drains, complex maze of bylanes and the unmissable ‘bad elements’ don’t make Kotla the ideal neighbourhood for those hoping to climb podiums. But as they keep saying around here, “option kya hai?”.

Sonam (centre), a steeplechase national record-holder from a village in Uttar Pradesh’s Bulandshahr district, in her rented room in Kotla Mubarakpur. (Express Photo by Abhinav Saha)

In one such lane lives youth steeplechase national record-holder Sonam. The daughter of a brick kiln labourer from a Dalit settlement in Hurthala village in Bulandshahr district of Uttar Pradesh, Sonam made Kotla her home when she was 15. She is now 19 and has grown used to the place. “Yahan ki mehak hi alag hai, na (This place has a distinct scent doesn’t it)?,” she jokes, embarrassed by the foul smell emanating from the litter outside her room.

While Sonam, with multiple junior national titles, is among the more accomplished athletes, most of the Kotla athletes are still trying to find their feet. A good number of them are state medallists and regularly take part in private running events for prize money. Sonam had to work as a delivery agent until she broke Parul Chaudhary’s decade-old 200m Youth national record at the Khelo India Youth Games last year. She is now part of the Khelo India scholarship, where she receives a monthly stipend of Rs 10,000.

“This is one of the better lanes to live in,” assures Sonam’s coach Sanjeev. He smiles and adds: “Option kya hai?”. Sanjeev speaks for most of the athletes who have made Kotla their home. Their shared sporting dreams have given Delhi’s urban landscape another pocket of aspiration. If North Delhi’s Mukherjee Nagar is where the country’s UPSC aspirants head to and Mandi House attracts theatre artistes, Kotla Mubarakpur has now emerged as a village of sporting strugglers.

The Mukherjee Nagar of sports

Just as coaching classes and photocopy kiosks mushroom around education hubs, auxiliary businesses catering to the athletes fight for space in this densely-populated area. The neighbourhood’s fruit juice shops, kiosks selling boiled eggs, sports apparel outlets and chemist shops are mostly frequented by fit and lean boys and girls.

Naveen Kumar is one such beneficiary of the Kotla-JLN ecosystem. His clothes store, which he has been running for over seven years, supplies “foreign reject” apparel to athletes. Hand-me-down domestic branded clothes also make their way to Naveen’s collection. If bargained right, a T-shirt can be bought for as less as Rs 50. Stores such as these are lifesavers for athletes living on a shoestring budget.

If North Delhi’s Mukherjee Nagar is where the country’s UPSC aspirants head to and Mandi House attracts theatre artistes, Kotla Mubarakpur has now emerged as a village of sporting strugglers. (Express Photo by Abhinav Saha)

“Athletes tell me in advance what kind of apparel they need and I sort it from the pile of clothes that arrive,” Naveen explains.

“I don’t know where they get these clothes from. Once we got a jersey of some school in Australia,” says Sonam’s coach Sanjeev.

Steeplechaser Mohammed Abbas does have issues with Kotla’s poorly ventilated rooms and dingy lanes, but is happy to adjust for the convenience that comes with living in the area.

“You will get everything here and for a reasonable price. There are good food options and they all treat athletes nicely,” says the 19-year-old state medallist who works part-time as a BPO call agent.

Manoj Kumar, co-owner of the popular Kailash restaurant, says 60 per cent of their revenue comes from sportspersons. “I can’t give you the number of athletes visiting each day but if you come this evening, you will find them taking up all the tables. There is hardly any space left for others,” says the manager.

For most athletes, though, eating at a budget dhaba is a luxury so on most days, they cook their meals. In Ankit’s room, the responsibilities have been divided. “Two are in charge of cooking, one has to do the cleaning and we also have one person whose job is to run errands (from the third floor),” explains Ankit’s roommate, Ashish.

Rooms without fans and a ticking body clock

The rent for a single room, shared by three or more athletes, ranges from Rs 3,000 to 6,000. Azad Gautam, a middle-distance runner who had to go on a hunger strike to persuade his family to let him come to Delhi, shares a room with three others. The room doesn’t have a ceiling fan and Delhi’s unforgiving summer months have begun to kick in. “The budget is a little tight this month. We will see if we can get a fan soon,” he says. “At least this area has some sunlight; some athletes live in areas where you can’t tell if it is night or day,” adds steeplechaser Abbas, who lives on the floor above Azad’s.

Azad has seen worse — his room in Kotla Mubarakpur is an upgrade from his home in Bulandshahr. “Barish mein chhath tapakti thi gaon mein (At our village home, the roof would leak during the rains). Until my elder brother found a job, we didn’t have enough for three proper meals. Woh ek sangharsh tha, aab ye ek sangharsh hai (that was one struggle, this is another),” says Azad, who moved to Delhi early this year.

Ankit Kumar, who works as delivery boy, during a practice session at JLN Stadium. (Express Photo by Abhinav Saha)

The “sangharsh” is relentless. With every passing year, the pressure from family to quit and take up a job keeps mounting.

Abbas, who has been trying to win a national-level medal for over five years, compares the lives of Kotla’s athletes to those of UPSC aspirants.

“Everything is temporary, tension is permanent. Every day before going to bed, doubts creep in. Every morning when we wake up, there is pressure to achieve something. Athletes have a very short career. I know I have very little time left,” says the 18-year-old.

Since most athletes are in their early 20s, they know they need to make a breakthrough quickly. They have to make the most of their 20s when their bodies are at peak fitness levels. “We know that we have to get our breakthrough before we turn 28-29. There are many senior athletes at JLN who are still hoping to bag their first national medal. It is tough,” says Abbas.

A medal at the Athletics Federation of India’s national-level meets is the bare minimum these youngsters have to achieve if they hope to ever turn pro. A medal at the nationals makes them eligible for applying in PSUs and other central government agencies. But a national medal in athletics is not easy. “Out of every 100 athletes who start off, only five will eventually be able to make a career out of it. We know this fact but yet we give it everything we have got. We athletes are a little crazy but that’s also what pushes us,” says Abbas.

There’s also the stress of societal and family pressure to “settle down”. “If I had still been in my village, my parents would have got me married off. My dreams of representing India would have been put to rest. But now that I have come here and earned a name for myself, the mindset of people in my village is changing,” says Sonam.

Kanta Prasad, who bagged two medals in long-distance running at the Delhi state meet this year, ran away from his home in Hamirpur district of UP in 2017 to escape marriage. After working in Ghaziabad as an office boy for a few years, he decided he had had enough. “I walked up to an auto and asked him to drop me off at the best athletics stadium in the region. He said it would cost me Rs 150 and dropped me at JLN. I had only seen JLN in photos and was mesmerised by what I saw. Those canopies at the main stadium gave it such a grand look,” he recalls. Kanta now works at a juice stall at JLN’s Gate No.1. He can’t afford a room at Kotla yet so sleeps on top of a kiosk in the open.

Then there is sprinter Mohammed Airaf, who also doubles as the hairstylist of most of the JLN athletes. The Moradabad resident has been a full-time barber since he was 10. After a rigorous day at the stadium, he barely gets any rest since the 19-year-old has to rush to the salon he works at in Kotla on a “50/50 deal” — he gets to keep half of his daily earnings; the other half goes to the owner in lieu of using the salon’s facilities.

“I didn’t know he was a barber when one of my students brought him to train under me. He is still young but has a lot of hunger to do well. For now, his cutting skills are better than running,” says Delhi state chief coach Dinesh Rawat, who is now a regular customer at Airaf’s salon.

Amidst all these struggles, sports remains the only balm. The hours spent slogging at the stadium remain their only escape. Abbas sums it up: “When we leave Kotla’s dingy area and enter the stadium it’s like jahannum ki aag se nikal kar jannat me agaye (We have escaped the fires of hell and reached heaven”.

After all, option kya hai.





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Private general insurers push up market share, competition set to intensify | Insurance News


Private sector non-life insurance companies have increased their market share in the financial year 2023-24 (FY24) amid intense competition in the sector, mainly in the health and motor businesses. The overall market share of private non-life insurers has witnessed a sustained increase to 65 per cent for FY24 from 62 per cent in FY23 and 59 per cent in FY22 highlighting the persistent growth differential between the public and private sectors.

The non-life general insurance industry reported a lower growth during FY24 with a premium income of Rs 2.89 lakh crore, a rise of 12.78 per cent compared to the 16.3 per cent growth in premium income at Rs 2.56 lakh crore in FY23, according to figures released by the General Insurance Council.

Competition is likely to increase, especially in the health segments as new companies have commenced operations while others are waiting in the wings to enter the segment. Till date, motor third party rate hike has not been announced for FY25, which could impinge on the growth.

Additionally, tensions around the Red Sea and the Iran-Israel conflict may impact the marine segment. However, intensified competition, an uncertain international geopolitical environment and elevated inflation may negatively affect economic growth and subsequently impact the non-life insurance sector.

The industry’s growth is driven by the health and motor insurance segments. However, compared to last year, there was a decline in growth due to a fall in liability, crop insurance and credit guarantee, while fire and marine segments reported subdued growth numbers compared to last year.

Private general insurers push up market share, competition set to intensify

Life insurance segment grows 2%

Further, for the month of March 2024 as well, the growth rate was comparatively lower as growth in health was offset by slower growth in motor and a fall in the fire segment. New India Assurance has remained the leading player with a premium income of Rs 37,035 crore in FY24, a rise of 7.40 per cent over the last year.

PSU general insurers’ March 2024 numbers rose by 9.9 per cent, more than double the of 4.0 per cent in March 2023. However, the annual performance, although positive, was muted by nearly 130 bps compared to last year. On the other hand, the private sector general insurers reported a growth of 9.5 per cent for March 2024 as against 13.2 per cent in March 2023.

“The FY24 numbers have demonstrated robust growth which can be primarily attributed to group health and motor insurance (premiumisation of the market with SUV sales increasing their share in the PV segment,” said a CareEdge Ratings report.

Meanwhile, specialised insurers posted a drop of 28.9 per cent in March 2024 compared to a rise of 14.1 per cent in March 2023. Similarly, the FY24 numbers continued to reduce by 29.3 per cent vs. a growth of 5.1 per cent in FY23. This has been primarily because crop insurance premiums of Agriculture Insurance Company reduced by 32.1 per cent for FY24, as select public sector general insurers and a few private general insurers picked up a larger proportion of crop insurance premiums.

Standalone private health insurers (SAHI) continued their growth momentum as the March 2023 numbers topped the Rs 4,000 crore mark from Rs 3,000 crore in February 2024 and coming in higher by 25.9 per cent over March 2023 as they continue to gain share in retail health from PSU insurers and increasing their share of the group health pie. Further with IRDAI approving two SAHIs in F24, competition is expected to accelerate even further in FY25. Health insurance premiums continue to be the primary growth driver of the non-life insurance industry. This has increased the segment’s market share from 33.3 per cent for FY22 to 37.6 per cent for FY24. The health segment has grown by 20.2 per cent for FY24, which is lower than the growth of 23.2 per cent witnessed for FY23.

“The industry’s growth will continue to be driven by the health and motor insurance segments as they account for around 68 per cent of the premiums. Broadly speaking the first quarter of the financial year accounts for around 20 per cent of the sector’s premiums and this trend is likely to persist in FY25,” CareEdge Ratings said.





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At 59 AQI, Saturday brings Delhi its best air quality for this year | Delhi News


On Saturday, Delhi recorded the best air quality it has seen so far this year, with an AQI of 59.

The figure falls in the “satisfactory” category (AQI from 51 to 100). According to the Commission for Air Quality Management (CAQM), this is the “best AQI,” that is, the lowest figure, that Delhi has recorded so far this year.

This week, the AQI has been in the “satisfactory” category Wednesday onwards, with parts of the city recording rainfall.

A “good” air day, which is when the city’s AQI is 50 or less with minimal impact of air pollutants on health, has eluded Delhi so far this year. However, a few monitoring stations in the city recorded 24-hour average AQI in the “good” category on Saturday. At the Jawaharlal Nehru Stadium, for instance, the 24-hour average AQI was as low as 23 at 6 pm. Similarly, the 24-hour average AQI at Nehru Nagar was 37, data from the Central Pollution Control Board (CPCB) shows.

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For this, Delhi has intermittent rainfall to thank with parts of the city witnessing rainfall on Friday that continued into the night and early morning on Saturday. Safdarjung weather station, the city’s base observatory, recorded 15.4 mm of rainfall from 8.30 am on Friday to 8.30 am on Saturday. Over the same period, the Ridge in North Delhi recorded a higher amount of 83.4 mm, while Pitampura recorded 67 mm, according to data from the India Meteorological Department (IMD).

So far this month, Delhi has recorded 384.6 mm of rainfall, well above the normal of 209.7 mm for July. For the season so far, which the IMD considers to be from June 1, Delhi has seen 486.3 mm of rainfall, which is also above the normal of 271 mm for the monsoon till July 29.

A drizzle is likely in Delhi on Sunday, while the city could remain dry on Monday and Tuesday, going by the IMD forecast.





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Back to work after protest, safai karamcharis of Gr Noida have a tough task at hand | Delhi News


After 16 days of protest, Greater Noida’s safai karamcharis resumed work Friday. However, they have a huge task at hand with locals complaining of choked drains and garbage strewn around in many areas.

A resident of Aicher village in Greater Noida, Sheeshpal (50), has been running a tea shop in the area. “The garbage scattered on the road is near the shop. This is affecting my sale. People do not like to sit here because of filth and smell. Today, some safai karamchari came here and cleaned the roadside, but nobody had come to pick up the garbage lying here for more than a week now.”

“Not only the authority, but people also are responsible for this situation. They do not throw the garbage into designated bin and garbage truck or trolley does not come here regularly. The garbage kept on piling,” he said.

Safai karamcharis ended the protest Thursday after Greater Noida Authority gave assurances and sought some time to fulfill their demand to hike in wages and Rs 10 lakh life insurance.

Kailash Kumar, a resident of Bundelkhand who has been living in Aicher village since 1998, said, “Most of the people in the area live in rented accommodation. Because we are tenants, supervisors do not listen to us. We have asked our owners to raise the sanitation issues with the authority, but they do not care as they do not live here. The situation has turned pathetic due to the protest. However, even on other days, we see very few cleanliness workers deployed in the area.” Kumar, who works as a painter, said, “There are a lot of carts selling food in the middle of the garbage. It is unhygienic… We are prone to many diseases as this is a favourable breeding ground for the mosquitoes.”

In Tugalpur village, Jagveer Singh said he has spats with his neighbours recently over the issue of garbage.

“They throw it from upstairs. Earlier, the safai karamcharis would come and clear the area. But for the past few days, nobody came here and it got accumulated. I asked them multiple times to not do this, but they do not listen,” said Singh, adding that his mechanic shop is just beside a plot full of filth.

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Singh’s shop opens to a drain, which he said was choked, resulting in sewage spilling in the area and a foul smell. Around 20 meters from his shop, there is a designated site to throw the waste, but he said the garbage has been lying there for days. “The van does not come here frequently to pick up the waste. In the rainfall, it has turned into havoc…,” said the man.

Manoj, a safai karamchari who works in the Pari Chowk area, said he has come back to work after the authority’s promise that their wages would be revised. “Our request to the authority’s CEO is that our salary should not be deducted for the time we were at the protest. We are back to work after his promise and are working round the clock. Our promises must be fulfilled at the earliest,” said the worker.

NG Ravi Kumar, Chief Executive Officer of Greater Noida Authority, has formed a five-member committee to look into the issue. “The committee will see if their salary can be increased after assessing the financial implications for around 2,000 safai karamcharis,” the CEO had earlier said.

 

 





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We clean your filth with our hands, why can’t we get a raise’: Gr Noida safai karamcharis on protest | Delhi News


“Everywhere else, salaries of employees are automatically increased every year based on an assessment of their work, but no one listens to us till we break down facing the heat, cold and rain on the roads. We go into the filth every day to keep your city beautiful,” said Rahul Parcha (33), raising slogans in front of the Greater Noida Authority’s office on Monday.

He is among hundreds of contractual safai karamcharis who have been protesting for the last 14 days demanding an increase in their salaries from Rs 17,170 to Rs 20,600.

“I get paid Rs 14,256 after deductions. Of this Rs 5,000 goes in rent, more than Rs 4,000 on food, then there are other expenses such as school fees. I have seven family members to support,” said Parcha, who works in Achchheja village.

Hailing from Hapur district, Parcha lives in Kasna. “I came here for a better future for my son. If my salary remains this low, what will be his future? I have to travel around 60 km to do this job, to keep other people’s surroundings clean, so they and their children can live a healthy life,” said the man angrily. He had worked in a pantry in Sector 62 till five years ago.

Satish Mehraulia (28) is the youngest of eight brothers. Due to his family’s economic condition, he had to start working after Class XII. “We have to clear all types of filth, sometimes we faint because of the gas released from the garbage. We are not provided with any protective gear. There are things that should be done only by the machines, but we are asked to enter nallahs to clean them,” said Mehraulia, who works in Sector Xu 1.

Sunil Makwana, city president of the Akhil Bhartiya Safai Majdoor Congress, said they will keep protesting until the demands are met.

He also alleged that the life insurance cover of Rs 5 lakh provided earlier has been replaced with an accidental death insurance cover of Rs 10 lakh. “Our demand is we should get Rs 10 lakh as life insurance,” he said.

NG Ravi Kumar, Chief Executive Officer of the Greater Noida Authority, said he has formed a five-member committee to look into the issue. “I met safai karamcharis two times. The committee will see if their salary can be increased after assessing the financial implications for the around 2,000 safai karamcharis… As far as insurance is concerned, we will discuss it with the bank. I have sought time and cooperation from the workers to help increase revenue, so we can route this proposal through the board.”

 





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Multidimensional Poverty Index: How the capital fared in the last five years


Three out of 11 districts in the city have seen the headcount ratio — proportion of population that lives below the poverty threshold — of the multi-dimensionally poor increase even as the Capital has witnessed an improvement in multidimensional poverty between 2015-16 and 2019-2021.

According to the 2023 Multidimensional Poverty Index prepared by the NITI Aayog, North Delhi, West Delhi and South West Delhi have seen an increase in the headcount ratio of the multi-dimensionally poor.

Two more districts — New Delhi and Central Delhi — have seen a marginal increase.

North East Delhi, which previously saw the multidimensional poverty rate of 7.35%, has seen a marked improvement as has North West Delhi. The city, overall, had one of the lowest headcount ratios in the country and witnessed an improvement of one percentage point — from 4.44% to 3.43% in five years.

The index is calculated using 12 indicators, gathered from the NFHS reports from 2015-16 and 2019-21 (one-year gap due to Covid). These indicators include nutrition, child and adolescent mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account, and are grouped under three heads — health, education and standard of living.

Former Chief Statistician Pronab Sen said one of the probable reasons for an increase in poverty in a few districts could be migration. “When migrants first enter a state, they usually have nowhere to go… they settle in slums, which ends up increasing the multi-dimensional poverty. This could be one of the reasons.”

 





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Production at water treatment plants hit, RWAs complain of water shortage


Written by Sabika Syed

A day after three water treatment plants — Okhla, Wazirabad and Chandrawal — were shut owing to the Yamuna flooding the city, residents have complained of water shortage.

Chief Minister Arvind Kejriwal said while the plant at Okhla resumed functioning on Friday, the other two will start operating by Sunday morning if the water level goes below 207.7 metres. As of 8 pm on Friday, the water level was 208.12 metres. The Sonia Vihar water treatment plant’s production has also been reduced by 25%.

On Thursday, the DJB had said water supply will be affected for at least the next two days in areas including Civil Lines, Karol Bagh, areas under New Delhi Municipal Council, Rajinder Nagar, Govindpuri, Kalkaji, Model Town, Punjabi Bagh, Moolchand, Greater Kailash, South Extension among others.

In North Delhi’s Model Town, which receives water from the Wazirabad plant, Sanjay Gupta, General Secretary of Model Town Residents’ Society, claimed that the locality has not received water in two days and that the situation is dire. He said, “People had stored water but it is running out now. We have been buying bottled water…”

Gupta said the local market has run out of bottles of larger quantities of water: “We have to buy 1-2 litre bottles now, even 5-litre bottles are not available.” He said officials concerned did not respond to his calls over the issue.

Water supply has taken a hit in Dwarka as well. Rejimon CK from the Dwarka Forum, a welfare association of residents, said while water supply hasn’t been completely cut off, it has been reduced. “In a society with 256 flats, 74,000 litres was provided,” he said.

Residents of the locality are calling for private tankers to make ends meet, he said.

Rajiv Kakaria, member of a Greater Kailash RWA, said there is an intimation of water supply being disrupted Saturday: “We were told supply might be hit so residents are taking precautions by storing water and only using it for essential tasks.”

Kritika, a resident of Paschim Vihar in West Delhi, said their water supply got cut on Thursday and that the water tank in the society was empty. She added, “There is no drinking water in our locality so we have just been shifting between other people’s houses.”





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IRDAI retains mandatory cession of business in favour of GIC Re at 4% for FY24


The Insurance Regulatory and Development Authority (IRDAI) has maintained the status quo on obligatory cession of business for the financial year 2023-24 at 4 per cent in favour of General Insurance Corporation of India (GIC Re), disappointing the private sector general insurers and foreign reinsurers with operations in India.

The government had notified the move recently saying that the entire Obligatory Cession is to be placed with GIC Re only. Obligatory cession refers to the part of the business that general insurance companies have to mandatorily cede to the national reinsurer GIC Re.

Understandably, private general insurers are against any obligatory cession to GIC Re as it doesn’t give them any freedom to place the reinsurance business the way they like and with the reinsurers they like. The general insurers earn substantial commission out of any reinsurance business they place with the reinsurers apart from the risk cover.

The IRDAI had constituted a panel under Bhargava Dasgupta, MD of ICICI Lombard General Insurance, to suggest measures to phase out obligatory cession and the panel had suggested phase-out the obligatory business along with the right to first refusal by the GIC Re.

Under the right to first refusal, GIC Re has the first right to choose the reinsurance business from the general insurers and then it can be placed with other reinsurers. The obligatory cession was reduced from 5 per cent to 4 per cent in FY23 and the IRDAI, in line with demands of general insurers, had indicated that it will be further be reduced and can even be made zero. “Maybe the government thinks removal of obligatory cession will impact the performance of GIC Re,” said an insurance official.

The IRDAI, after consultation with the Advisory Committee, and with the previous approval of the central government has taken the decision that the percentage cession of the sum insured on each general insurance policy to be reinsured with the Indian re-insurer (GIC Re), will be four percent during the financial year, except the terrorism premium and premium ceded to nuclear pool wherein it would be made ‘NIL’, said the notification.

The approximate size of the Indian reinsurance market is around Rs 70,000 crore in FY2022-23. There are now over 10 foreign reinsurers who are operating in India. However, there are over 200 cross border reinsurers who provide cover offshore and much cheaper premium. The size of the Indian general insurance market is over Rs 2.20 trillion in 2022-23.

It has been growing at over 15 per cent in recent years except for the last two years when it has faced many challenges due to CovID-19 Pandemic and has grown within 10 per cent single digit.

In fact, obligatory cession was 10 per cent which was reduced to five per cent afterwards and the foreign reinsurers which are having branches in India are demanding the total removal of the obligatory cession for GIC Re to create a level playing field in the Indian reinsurance market.

GIC Re reported a net profit of Rs 3,417 crore for the March quarter, an increase of 90 per cent over Rs 1,794 crore reported in the same period of last year. The rise was despite underwriting profits shrinking 61 per cent to Rs 889 crore from Rs 2,313 crore a year ago.

IRDAI had named LIC, GIC Re and New India Assurance as domestic systematically important insurers — which are considered as “too big or too important to fail”





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Firing at Delhi’s Tis Hazari Court as lawyers clash over car parking


An incident of firing was reported from the Tis Hazari Court premises in North Delhi on Wednesday. Police said an argument broke out between two groups of lawyers over car parking and other issues. The fight escalated and one of the lawyers fired in the air but nobody was injured.

The incident took place around 1.30 pm behind the court building. Police said the firing happened near the lawyers’ chamber area.





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Domestic institutions not part of FPI-led bull rally


When the domestic stock markets on Tuesday hit another record high, domestic institutional institutions (DIIs) were sellers, refusing to join the buying euphoria. While foreign portfolio investors (FPIs) bought stocks worth Rs 2,134 crore, DIIs made net sales of Rs 785 crore during the day.

Unlike FPIs, domestic institutions (DIIs) led by LIC, insurance companies and mutual funds are not very active in the ongoing bull run. On Monday, FPIs invested Rs 1,995 crore but DIIs pulled out Rs 337 crore. Aided by FPI buying, the Sensex soared by 274 points, 0.42 per cent, to a record high of 65,479.05 and the NSE Nifty soared by 66 points to 19,389 on Tuesday.

According to NSDL data, foreign investors invested around Rs 60,000 crore in April-June period of 2023. However, DIIs invested just Rs 3,368 crore during the period. That was the period when markets rose by over 10 per cent amid the easing of inflation and the RBI decision to keep interest rates steady.

DIIs, who were big buyers when the market was down in the second quarter and fourth quarter of FY2022-23, are now sellers on many days. In the last quarter (January-March) of FY 2023, DIIs had bought stocks worth Rs 83,000 crore while FPIs sold stocks worth over Rs 50,000 crore. “Domestic institutions are contrarians. They buy when other big operators like FPIs sell… and sell when FPIs and others buy. They have made good profits through this strategy,” said a fund manager.

LIC, the largest investor in the stock market, normally sells stocks when the market soars to new peaks. “We sell when others buy, and buy when others sell. LIC has been making consistent profit from its market operations in the last several years. LIC is a long-term investor in the markets,” said an official.

“Clearly, DIIs are sitting on a good profit on investments made by them in the last quarter of FY2023. They are not accumulating stocks at high levels. Ideally retail investors should follow the investment strategy being followed by DIIs. Then they won’t make losses,” said a market analyst. There’s a perception in the market that the stock markets are entering into an overbought zone with valuations hitting new highs. If there’s a major correction, DIIs won’t get any major impact while FPIs and retail investors – normally aiming at making a fast buck — who invest at high levels, will suffer losses.

The FPI sell-off of Rs 1.21 lakh crore in calendar year 2022 was absorbed by DIIs to a great extent, preventing a major crash in the markets since March 2022. A global risk-off sentiment amidst increased risks to global growth contributed to the decline in global equities including India. There were domestic factors at play as well, including high inflation and rising interest rates. Inflows into mutual funds, however, remained robust, as investors turn risk-averse.

Despite huge volatility in stock markets and sustained selling by FPIs, equity mutual funds have been attracting inflows. Significantly, inflow through SIP (systematic investment plan) stood at an all-time high of Rs 14,748.68 crore in May, indicating that retail investors continue to hold confidence on equity investments.

Mutual funds have assets worth Rs 16.56 lakh crore in equity-oriented schemes as of May 2023. The combined strength of MFs, LIC and other insurance companies like New India Assurance can neutralise the impact of FPI buy or sell operations. FPIs are considered as “hot money” which can exit Indian markets faster than they entered.





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