What is the primary purpose of the 'glide path' strategy in asset management funds?

To systematically reduce equity exposure as an investor approaches a target date

To eliminate the need for bond investments in a diversified portfolio

To ensure a fixed 10% annual return on retirement portfolios

To maximize short-term capital gains through aggressive equity trading

Under the recent Supreme Court ruling regarding motor accident compensation, what is the 'Loss of Domestic Care' category based on?

A fixed minimum economic value of ₹30,000 per month for unpaid domestic work

The actual salary earned by a homemaker in a part-time job

A percentage of the husband's total annual income

The market rate for unskilled labor as defined by the Minimum Wages Act

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13 July 2026

Business and insurance sector updates

The Supreme Court ruling on the economic valuation of homemakers' unpaid labor is a significant judicial development with direct implications for gender justice and social welfare policy, while the insurance updates provide relevant context for financial inclusion and digital governance.

Notes

Term life insurance is a critical tool for household income protection, yet India remains under-protected due to affordability, complex underwriting, and documentation fatigue.
Digital transformation in insurance: AI-led underwriting models use digital medical records, prescription history, and behavioral data to enable individualised risk assessment rather than broad categorisation.
India's Digital Public Infrastructure (e-KYC, Account Aggregator framework, digital health records) has reduced underwriting friction and uncertainty.
Accelerated underwriting uses intelligent triaging to identify low-risk applicants, allowing for simplified or no-medical issuance, reducing operational costs and improving affordability.
Risk segmentation is becoming more granular; women often receive 15-30% lower premiums due to higher life expectancy, and non-smokers benefit from preferential pricing.
Supreme Court ruling (June 11, 2026): Fixed ₹30,000/month as the minimum economic value of a homemaker's unpaid domestic work for motor accident compensation.
The ruling creates a 'Loss of Domestic Care' category under the Motor Vehicles Act, 1988, ending the practice of assigning nil value to homemakers.
The compensation baseline includes a 10% increase every three years for inflation and allows for individual cases to claim higher amounts.
The 'glide path' in investment management refers to the systematic reduction of equity allocation as an individual approaches retirement to mitigate market risk.
SEBI regulations allow AMCs to offer lifecycle funds using a glide path, with equity exposure typically dropping from 65-95% (15 years to target) to 20% or less (less than 1 year to target).

Questions

Discuss how the integration of Digital Public Infrastructure and AI-led underwriting is transforming the life insurance sector in India, particularly in terms of affordability and risk assessment. 150 words

Attempt this — 150 words in 8 min

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The recent Supreme Court ruling recognizing the economic value of unpaid domestic work marks a significant shift in judicial approach toward gender equity and social security. Analyze the implications of this judgment for the insurance sector and the broader recognition of domestic labor in India's economic framework. 250 words

Attempt this — 250 words in 11 min

0 / 250 words 11:00
Explain the concept of the 'glide path' in retirement planning and its significance in managing market volatility for long-term investors under SEBI's regulatory framework. 150 words

Attempt this — 150 words in 8 min

0 / 150 words 8:00

Prelims

What is the primary purpose of the 'glide path' strategy in asset management funds?

Under the recent Supreme Court ruling regarding motor accident compensation, what is the 'Loss of Domestic Care' category based on?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-13/business-and-insurance-sector-updates