InsureRelaxInfo: July 2013

Birla Sun Life Insurance Company has been directed by UT District consumer disputes refund to a complainant the surrendered value

Birla Sun Life Insurance Company has been directed by UT District consumer disputes redressal forum to refund to a complainant the surrendered value along with the cost of litigation, on the ground of false assurance to provide an insurance cover that he required.

The complainant, Yashu Vashishath, a resident of sector 19 and a student at Punjab University subscribed to the policy which assured catering to all the requirements needed for him to get admission in Winconsin, U. S. A.

After paying the first premium of Rs 1 lakh, he left for the US. Yashu alleged that the premium receipt that the company issued to the school authorities abroad was rejected as the policy was not recognized there.

Yashu then took up the issue with insurance company, asking for the refund of the premium, but to no avail. A complaint was filed with the insurance ombudsman and despite the instructions; the company did not send the duplicate copy of the policy bond and or refund the amount.

Meanwhile, the insurance company pleaded that the complaint was barred by limitation as the same was filed after five years of inception of the policy. It was stated that the policyholder signed the declaration after agreeing to the contents. The company also alleged that complainant had failed to pay the remaining installments.

The council for the appellants submitted that the consumer complaint was filed after a lapse of five years of purchase of the policy and as such, it was palpably barred by time. Insurance ombudsman also held that the complainant was only entitled to the surrender value as five years had already lapsed.

4 out of 9 mediclaime policy hoders dissatisfied with claime settelment

Every four out of nine policyholders have faced problems with their health insurance providers and Third Party Administrators (TPA) at the time of getting their claim approved, a study conducted by consumer right’s organization, Consumer Voice has found.

Out of this, most complaints were related to delay in authorizing claim. Unnecessary delay by TPA in giving authorization is the most frequently occurring problem, as 28.1% of the complaints were related to this issue, the Consumer Voice said in its report.

Documentation was another bone of contention, with nearly 26% of claimants polled citing ‘unnecessary documents required by TPA/ insurance company’ as a key issue.

Another source of dissatisfaction with service providers was the amount of claim settled. Close to 17% of the complainants who participated in the survey rated unjustified deduction by TPA in claim settlement as a major problem they have to deal with at the time of claim processing.

As per the study, around 55% of the respondents named TATA AIG General as the insurer with whom they ‘had a problem’. The private sector insurer was followed by standalone health insurers Max Bupa (51.2%), Apollo Munich (50%) and general insurer Royal Sundaram (49.2%) on the list.

The survey was conducted across eight cities –Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad and Lucknow – in order to identify health insurance providers who are ‘actually making right claims and keeping promise’, Consumer Voice said.

The study posed questions to 3,312 respondents who had health insurance policies from various health insurance companies.

Demend for insurance cover for home dailysis

The Renal Care Foundation held a round table discussion around ‘rational and cost effective management of chronic renal failure payer and payee perspective’. The forum spoke to the opportunity to recognize the need for inclusion of peritoneal dialysis in the health insurance cover.

Peritoneal dialysis offers better quality of life to renal patients as the treatment can be conducted at home. It also lowers risks of infection. Kidney failure is becoming a chronic condition in India, and dialysis in hospitals is leading to high risks of Hepatitis C and other infections in patients.

The condition becomes more distressful as the treatment poses financial crisis on the patient and his family. The urgent need is to create a cost-effective and rational financial means for dialysis treatment in India.

Dialysis is a life saving treatment for patients with kidney failure waiting for an organ transplant. Hemodialysis, a treatment done at hospitals, for at least three-times a week, uses a common machine to filter blood. Peritoneal dialysis, on the other hand, is done by patients at home. It uses the lining of the abdomen called peritoneal membrane to filter blood. The cost of both the procedures is almost the same.

According to World Health Organization (WHO) Global Burden of Disease Project, disease of the kidney and urinary tracked contribute to approximately 850,000 deaths every year of which chronic kidney disease is the 12th leading cause of death and 17th leading cause of disability in the world.

Doctors say that chronic ailments do get expensive and it will be encouraging for both doctors and patients to opt for them if the burden is eased. Peritoneal dialysis should be part of all health covers as lifestyle ailments are on rise and insurance companies should able to design such packages.

that a surveyor’s assessment could not be treated as the final word.

When it comes to general insurance claims, a surveyor is the one on whose word insurance companies rely while handing out the money.

A surveyor is a qualified professional, who assesses the nature and extent of loss, and insurer processes the claim on the basis of the report that is prepared by him.

However, in a recent case, the National Consumer Commission held that the surveyor’s assessment need not be the final word while settling a claim. Given the extent to which the insurance companies depend on the surveyor’s report, this ruling is significant.

It clearly establishes that companies must look beyond the assessment report, especially in cases of ambiguity.

In April 2005, the owner of Uni Ply Industries insured the stock in his factory for Rs 30 lakh with New India Assurance, for a year. The insurance company issued a one-page policy cover note, but without any terms and conditions. The policyholder renewed the policy for another year in 2006, but before the term ended, a fire broke out in the factory, destroying stock worth Rs 19 lakh, as per the owner’s estimate.

However, the surveyor approved by the Insurance Regulatory and Development Authority (IRDA) assessed the loss at Rs 10 lakh. The insurer made a payment of only Rs 8 lakh to the factory owner by invoking the excess clause. According to this clause, in the event of loss, a predetermined portion is paid by the policyholder.

The factory owner protested, but accepted the Rs 8 lakh settlement as part payment. Later, when he asked the insurance company to pay the balance, his request was rejected on the ground that the matter had been already settled.

So, in 2007, the factory owner filed a case on the ground of deficiency of service with the district commission, which ruled in his favour.

The insurance company’s appeal to the state commission also went in favour of the policyholder.

The New India Assurance then filed a revision petition with the National Commission, questioning the findings of the district and state commissions. The company’s main argument was that it had processed the claim based on the findings of an independent surveyor and hence, there was no deficiency in service.

However, the National Commission held that it was incorrect on the part of the company to treat the payment of Rs 8 lakh as final settlement since the policyholder had accepted it only as partial relief; his signing the discharge Boucher did not end the matter.

The ruling also referred to court precedent, or ‘settled law’, that a surveyor’s assessment could not be treated as the final word.

The Commission held that the company could not invoke the excess clause as it had failed to issue the terms and conditions of the policy to the factory owner. With this ruling, the National Commission has reiterated the roll that a surveyor plays in processing claims.

If the surveyor’s assessment is not in line with the terms of the contract, or all material facts are not considered, it is likely to be set aside. The National Commission’s verdict reinforces this dictum. Or in other words, if there is doubt that surveyor did not consider all material facts while arriving at the loss; the insurance company can’t rely solely on his opinion to settle a claim.The ruling also clearly establishes that if there is uncertainty about the loss amount, the insurance company should not invoke the excess clause.

In the given case, the stock in the factory was burnt beyond recognition and hence, it was difficult to calculate the exact loss. It was, however, observed that the factory stored stocks worth Rs 29 lakh on an average, and the value of the stock that was not damaged was about Rs 10 lakh. So, logically, the value of the damaged stock should have been around Rs 19 lakh. The surveyor, however, reported a loss of Rs 10 lakh, and the insurer reduced it by invoking the excess clause, which was incorrect, stated the commission.

The case also highlighted the importance of terms and conditions in the document. Nearly issuing a cover note of the policy is not enough. If there is any ambiguity in the terms of the policy, interpretation will be against the insurer since it drafts the policy wording. Thus, it is important for an Insurer to ensure that the policy terms and conditions are communicated to the insured and any special conditions/ warranties are clear and free of ambiguity.

Narendra Modi's speech at Public Meeting in Pune

Narendra Modi's speech at BJP Public Meeting in Pune

https://www.youtube.com/watch?v=VSye_qirCaM
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NEWPROPOSAL FORM FOR OUR STUDY

click on this link

https://docs.google.com/viewer?a=v&pid=gmail&attid=0.1&thid=14028def23940de3&mt=application/pdf&url=https://mail.google.com/mail/u/0/?ui%3D2%26ik%3Da7237f84cd%26view%3Datt%26th%3D14028def23940de3%26attid%3D0.1%26disp%3Dsafe%26realattid%3Df_hjp7if321%26zw&sig=AHIEtbTV4SWbgWsJnifUYlyiHb33vZtrxg
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Existing cheque clearing arrangement will continue till year end RBI

Existing cheque clearing arrangement will continue till year end: RBI
18-Jul-2013
Source : Business Standard

Non-CTS-2010 cheques (Cheque Truncation System) will continue to be cleared even after the deadline of July 31, 2013. However, banks must continue to make efforts to withdraw the non-CTS-2010 standard cheques in circulation, said the Reserve Bank of India, in a notification issued on Tuesday.

Guarantors of loan defaulters, Beware!

Tightening their noose on loan defaulters, banks have decided to ’name and shame’ the guarantors of such borrowers as well by publishing their photographs and other details in newspapers and at notice boards of bank branches and community centres.

Banks, mostly public sector lenders, began publishing pictures of wilful loan defaulters in newspapers and at other places around the areas of residence of such borrowers earlier this year to induce them to pay up.

This exercise has now been extended to the guarantors of loan defaulters as well as part of efforts to build pressure on the borrowers to clear their dues and Allahabad Bank published one such public notice today.

Interestingly, public sector banks are at the forefront of taking such measures and those already making public the photographs and other details of loan defaulters include the country’s biggest lender SBI and UCO Bank, Allahabad Bank, Indian Bank and Indian Overseas Bank.

Gold coin, overseas trip promised to sell insurance policies

Gold coin, overseas trip promised to sell insurance policies AA

PTI : CHANDIGARH, JUN 07 2013, 19:07 IST
Buyers of insurance policies are promised gold coin, cash back, guaranteed return and in some cases a foreign trip by some private insurance companies that mis-sell products, the Insurance Ombudsman was told.

Such complaints continue to be top among list of complaints filed by aggrieved customers with the authority here.

"Maximum number of complaints against insurance companies is related to mis-selling of insurance policies," an official of Chandigarh Insurance Ombudsman said.

With complaints related to insurance products continuing to flow in, Chandigarh Insurance Ombudsman has disposed of 1,836 complaints between September 2012 and May this year, though over 2,000 numbers of complaints are still pending for disposal.

"We are disposing of 25 cases (complaints) every day," the official said.

Chandigarh Insurance Ombudsman has jurisdiction over Punjab, UT Chandigarh, Jammu and Kashmir, Himachal Pradesh and Haryana.

The Ombudsman received complaints from people, even educated and professionals, who said they were misled by companies making false promises at the time of selling

insurance policies.

In one such case, an insurance product buyer lodged a complaint against a company, saying he was promised 5 gram gold coin on buying an insurance policy with annual premium of Rs 20,000.

He said that he neither received policy document nor got assured gold coin and demanded refund of his money and cancellation of policy.

When the matter was heard by Ombudsman, the company assured to settle the matter by refunding the premium paid.

In another case of mis-selling, the complainant was promised 10 per cent cash back, a trip to Singapore and a bonus of Rs 11,000 on buying a policy which was not honoured by the private insurance company.

In this case, the insurance company refunded the amount to the complainant when the matter was taken up with Ombudsman office, official said.

Another complainant said he was promised 11 per cent annual return for 10 years at the time of policy purchase but when he received policy documents, there was no mention of guaranteed return.

It also came to the notice of the office of Ombudsman that some customers were being denied having a `Free Look' period by the agents so that customers were left with no option than to continue with the policy.

During the free look period, the purchaser can continue to ask the insurer questions regarding the contract in order to better understand the policy.

Dr Subramanyam swami for us, must wach

Hindustan people must watch this video
http://www.youtube.com/watch?v=lL1U36g4ygQ

all types of insurance" bimabazar"

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How to find an old life insurance policy (and other unclaimed property)

We get a lot of queries from people looking for old life insurance policies that they think might have named them as a beneficiary.

Here are some quick tips. For more specifics and links, please see our brand-new "how to find an old life insurance policy" web page.
Try to track down as much information as possible. You'll presumably know the name of the policyholder (any name changes?), and it also helps to know the state or states that the person lived in.

Ideally, you'll be able to locate a copy of the policy itself, which will have a number on it. But sometimes there's a wrinkle: the insurance company or its name may have changed, especially for older policies. That can be a challenge, but your state's insurance department can probably help you track down the current company information. If you live in Washington state -- we're the state insurance regulator there -- feel free to call us at 1-800-562-6900 and talk to our consumer advocacy staff.

If you can't find the policy, try going through the person's financial records, looking for payments made to an insurer. Also, look through old mail: the company may have sent periodic statements or billing reminders. It's also worth checking with the person's auto- or homeowners insurers, since people sometimes buy life insurance from the same company.

You could opt to pay a search company to run a check for the person's name through industry databases or send queries to a large number of insurers.

If a policy goes unclaimed for a long time, insurers are supposed to turn the money over to state-run unclaimed property programs. They hold the money, often forever, in case someone files a claim. You can easily run the person's name through these free, state-run online search sites. Washington state's is at http://ucp.dor.wa.gov, and you can easily find other state's unclaimed property programs at www.unclaimed.org.

Renuwing time no highk in premium

CHAIRMAN CLUB CONVENTION 2013

Flash ! Flash ! Flash ! Fl...................................................sh !
C.M.Club..... convention for SCZ & ECZ will be held at delhi on 08/10/2013,EZ,WZ &CZ to be held on 21/10/2013 at Hyderabad.NZ,NCZ & SZ to be held at Kolkata on 12/11/2013.Club convention to be organised by LIC. So plz attend & make it successful.

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chairman club convention 8-10-2013 Delhi

CHAIRMAN CONVENTION FOR EAST CENTRAL ZONE AND SOUTH CENTRAL ZONE WILL BE HELD AT DELHI ON 8TH OCTOBER 2013, THIS YEAR CONVENTION PLACES 1.DELHI, 2.CALCUTTA, 3.HYDERABAD conform at the branch and divisional office

know big fish fishing

Two men went fishing. One was an experienced fisherman the other wasn't. Every time the experienced fisherman caught a big fish he put it in his ice chest to keep it fresh. Whenever the inexperienced fisherman caught a big fish he threw it back.The experienced fisherman watched this go on all day and finally got tired of seeing the man waste good fish. "Why do you keep throwing back all the big fish you catch?" he asked.

The inexperienced fisherman replied, "I only have a small frying pan."

Sometimes, like that fisherman, we throwback the big plans, big dreams, big jobs, big opportunities that God gives us. Our faith is too small.

We laugh at that fisherman who didn't figure out that all he needed was a bigger frying pan, yet how ready are we to increase the size of our faith?
Whether it's a problem or a possibility, God will never give you anything bigger than you can handle. That means we can confidently walk into anything God brings our way.REMEMBER: Don't Tell God you've got Big problems.

Tell your problems you've got a BIG GOD

friends all credit gos to you, thank u

vinay mohanty

no body will healp you at the 60

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vinay mohanty blog chairman

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six daily tasks of successfull LIC agent

6 Daily Tasks of Successful Insurance Agents

There is always a price for success in any business venture. Insurance selling is without exception. The price for success is to do things you are not comfortable with. You may experience pain by stretching yourself. You may need to make sacrifices in exchange for the success you want.

Successful insurance agents are aware of the price for success. They know the success of their business relies on their own efforts. They know they need a good work habit to assure their business success.

Highly successful agents organize their efforts and religiously execute their business activities on a daily basis. The following are the 6 daily tasks highly effective insurance agents do:

(a) Planning

Top performing agents can multi-task. They are very good at planning their day. They write the game plan. List out the tasks they want to accomplish. Get started and stay busy with the tasks they assign to themselves.

They are able to identify tasks that give them highest payoff and maximize activities that support their sales results. They structure their days in such a manner that they get the most out of every hour spent.

(b) Make appointment

The only reason why we do not have any appointment is because we did not make any in advance. We reap what we sow. If we don't make appointment, we have zero appointment.

To top producers, making appointment is a continuous effort. Telephone call is insurance agents' first contact with their potential customers. Knowing how to interact with prospects over the telephone can make a difference when meeting with them face to face.

They may have called many people, yet they can still remain fresh and enthusiastic. They know they have only once chance to create the first good impression. They do not manufacture enthusiasm, they are genuinely excited when talking to people over the phone.

Insurance agents are always put to tests when meeting with their prospects. A number of skill sets are being evaluated when they are up close and personal with their prospects. Doing homework is a must prior to meeting with the customers.

Their ability to build trust with prospects, their tactfulness to move from one phase of the sales process to another, their creative way to arouse interest, their attention to details when listening to customers' concerns, their problem solving skills etc are all always scrutinized by their customers.

To high flying agents, the biggest contributor to success will be the amount of time they spend communicating with customers face to face. It is important for them to be in front of their prospects as often as they can.

(d) Getting referral

Top producing agents always have their pipelines filled with referrals. They always have someone else to see at the end of every appointment. To them, getting referrals is not a nice-to-do but a must-do daily task. That explains why they never run out of prospects.

To earn referrals, they make sure they do fantastic jobs for their existing customers. Successful insurance agents build solid relationship with their customers and delight their customers with quality service. In return, they are rewarded with good quality referrals.

(d) Stay motivated

Motivation is the fuel driving insurance agents to keep moving forward. Top performers are able to program their minds so that they can always stay motivated. Their positive mental attitude is one of the reasons why their customers want to do business with them. No one wants to buy from an unmotivated salesperson.

(e) Self improvement

There are days you do not make any single sale. So long as you carry out your sales activities honestly, you will never go home empty handed. There are always lessons you can learn from things you do.

Top achievers always look for opportunities for self improvement. Self improvement does not necessarily mean they have to acquire a new skill. A person can become smarter by learning what mistakes to avoid.

Commitment to improvement is the foundation of greater success. Star agents are always mindful that skills and knowledge is the currency for success. They don't mind to set aside a percentage of their income for personal development.

Successful insurance agents focus on building good work habit. They build habit by diligently carrying out the activities they plan for themselves on a daily basis. It is their habit that brings them incredible experience and achievement.

Habit separates winners from the mediocre.

who is your master ?

Who is your Master?

When the great Sufi mystic, Hasan, was dying, somebody asked
"Hasan, who was your master?" He said, "I had thousands of masters. If I just relate their names it will take months, years and it is too late. But three masters I will certainly tell you about.

One was a thief. Once I got lost in the desert, and when I reached a
Village it was very late, everything was closed. But at last I found one man who was trying to make a hole in the wall of a house. I asked him where I could stay and he said 'At this time of night it will be difficult, but you can stay with me - if you can stay with a thief'.

And the man was so beautiful. I stayed for one month! And each night he would say to me, 'Now I am going to my work. You rest, you pray.' When he came back I would ask 'Could you get anything?' He would say, 'Not tonight. But tomorrow I will try again, God willing.'

He was never in a state of hopelessness, he was always happy. When I was meditating and meditating for years on end and nothing was happening, many times the moment came when I was so desperate, so hopeless, that I thought to stop all this nonsense. And suddenly I would remember the thief who would say every night, 'God willing, tomorrow it is going to happen.'

And my second master was a dog. I was going to the river, thirsty and a dog came. He was also thirsty. He looked into the river, he saw another dog there -- his own image -- and became afraid. He would bard and run away, but his thirst was so much that he would come back. Finally, despite his fear, he just jumped into the water, and the image disappeared. And I knew that a message had come to me from God: one has to jump in spite of all fears.

And the third master was a small child. I entered a town and a child
Was carrying a lit candle. He was going to the mosque to put the
Candle there. 'Just joking,' I asked the boy, 'have you lit the candle
Yourself?' He said, 'Yes sir.' And I asked, 'There was a moment when the candle was unlit, and then there was a moment when the candle was lit. Can you show me the source from which the light came?' And the boy laughed, blew out the candle, and said, 'Now you have seen the light going. Where has it gone? You will tell me!' My ego was shattered; my whole knowledge was shattered. And that moment I felt my own stupidity.

Since then I dropped all my knowledge ability. It is true that I had no master. That does not mean that I was not a disciple -- I accepted the whole existence as my master.

My Disciple hood was a greater involvement than yours is. I trusted the clouds, the trees. I trusted existence as such. I had no master because I had millions of masters I learned from every possible source.

To be a disciple is a must on the path. What does it mean to be a disciple? It means to be able to learn, to be available to learn, to be vulnerable to existence. With a master you start learning to learn.

The master is a swimming pool where you can learn how to
Swim. Once you have learned, all the oceans are yours.

LIC could shell out record Rs 90,000 cr benefits to policyholders this fiscal

Life Insurance Corporation of India, or LIC, has an obligation to pay out the highest-ever benefits to policyholders this fiscal at a time earning sufficient returns from investment in equities and bonds has become uncertain because of the gyrations of the market.

LIC may have to pay Rs 90,000 crore in defined maturity benefits and survival benefits, up 20% from an approximate Rs 75,000 crore in FY13, said an official.

"LIC earned good returns on equity investments last year and matching that will be a challenge this year. But we are confident of doing it," said LIC Chairman SK Roy. "One always wonders about LIC's business performance and investment operations, but this (benefit payments) one is very significant for LIC."

The state-run insurer's payout showcases its dominance over the industry a decade after private companies were permitted to set up insurance companies, resulting in the entry ofICICI, Aviva and HDFC into the sector. Despite this, LIC's settlements will nearly equal the total premium income of the entire private sector for last fiscal.

But investment returns at LIC, the country's biggest institutional investor that controls three-fourths of the insurance industry, have become a cause for concern among some experts as it loads up on shares of state-run companies, in many cases to bail out the government. The increase in market volatility this year, especially after May, is whipsawing investors amid selling by FIIs.

The BSE Sensex is down 0.3% since May 1. Government bond yields are 48 basis points higher from year lows of 7.09% on May 17. Bond prices and yields move in opposite direction.

LIC holds on to its investments for years, a practice that has yielded high returns over the past two decades as the global liquidity tide drove two stock market rallies that helped lift Indian stocks.

But the investment strategies of the past may not yield equally high returns. "Market performance gets masked out with different pool arrangements," said Ashwin Parekh of E&Y, referring to the practice of clubbing of premium incomes of various products in different baskets. "Weighted average yield in these kinds of cases will always be in a small range because of the large pool of investments (where returns - higher or lower - get evened out over years)."

Although investing in state-run companies have yielded high returns in the past, it may not be the case in future given intensifying competition and governmental interference. For example, in MTNL — the loss-making telecom company that was once a blue chip — Life Insurance Corporation (LIC) owns 19%. But Roy says LIC will continue playing a long-term game.

"From the investment point of view, the perspective will be 15-year plus," says Roy. "What happens in two or six months is a not a significant impacting event. We are very bullish on the economy, and we are certain this will turn out to be a very good India story. If the markets are rising, we will like to book profits wherever possible." In 2012-13, LIC had paid maturity benefits of around Rs 75,000 crore.

In 2011-12, LIC had paid maturity claims of Rs 63,348 crore while the figure was Rs 49,548 crore in 2010-11. In both these years, its investment income was superior.

It had generated investment income of Rs 90,267 crore when the Sensex lost 10.38% in 2011-12 and Rs 77,667 crore in 2010-11 when the benchmark gained 10.94%. But the industry is now facing pressure.

LIC had reported a 6.3% drop in new business income in 2012-13. Total income growth was flat at Rs 2.03 lakh crore, including income from selling new policies and renewal income.

Ranjans discovery of Ombudsman

E Insurance policy

The world is moving towards using less paper and to electronic records, especially financial records.
Shortly you too can get and maintain your insurance policies in electronic form. IRDA has issued guidelines relating to insurance repositories and electronic issuance of insurance policies.
You can:
Maintain, store and retrieve your policies and the information in them easily
You can modify or revise your insurance policies with speed and accuracy
It will help increase efficiency and transparency
It will reduce the cost of issuing and maintaining insurance policies

Judgments of insurance ombudsman

http://www.policyholder.gov.in/Case_laws_or_Judgements.aspx

need of 5 types of insurance

Approach a financial planner to formulate an investment strategy and chances are you'll be asked to buy a term cover first. Though it's the simplest and most cost-effective type of life cover, it does not promise a maturity corpus unlike the more popular endowment plans and unit-linked insurance plans (Ulips). It kicks in after the policyholder's death, which means your premium will not 'earn' you anything. The sum assured is handed over to the insured's nominees, ensuring their financial security— and your peace of mind.

The cost, too, is very less. For instance, a 25-year-old (male, non-smoker) can buy a Rs 1 crore cover for an annual premium of nearly Rs 6,000. The term policies sold online are cheaper than their offline counterparts. "Most people build huge liabilities, close to the present value of their future savings, during their working years. At any point, they have liabilities in the form of mortgage loan, car and personal loans, and credit cards. Besides, they have significant regular expenses for their kids' education and lifestyles. These necessitate an adequate life cover to shield the insured's dependants financially in his absence," says Sunil Sharma, appointed actuary, Kotak Life.

As a thumb rule, you should buy a life cover equivalent to your expected income for five years, plus any outstanding loans.

Personal accident insurance

Annual premium for Rs 10 lakh: Rs 1,500

As the name suggests, this cover is restricted to accidental deaths. However, it can come to a policyholder's rescue in the face of disabilities caused by an accident since it also covers income loss due to absence from work. "An accident and disability cover is, perhaps, the most underrated product in the insurance space," says Mahavir Chopra, head, ebusiness and personal lines, Medimanage.com, a health insurance consultancy firm. "The risk of an accident and the resultant disability is huge. The latter could put you out of action for several days, leading to loss of income. In this context, a disability cover is more important than a health insurance policy," adds Chopra.

While choosing such a policy, experts suggest that you should make sure it covers four eventualities— death, permanent total disability, temporary total disability and permanent partial disability.

Health cover

Annual premium for a Rs 5 lakh health cover: Rs 6,000-7,000 for a 30-year-old.

"Given the rising healthcare costs, a health insurance policy is indispensable for everyone," says Neeraj Basur, CFO, Max Bupa. "For an individual, the first step is to have a comprehensive indemnity-based cover in place," he adds. This is true even if you have just started earning and do not have any dependants because you will have to shell out a much higher premium if you buy it when you are older. Besides, you should not depend on the cover provided by your employer since a change of job could leave you vulnerable.

You can also enhance your cover by adding a fixed benefit plan, which hands over a predefined amount when a claim is made. "Such plans can help replace loss of income due to absence from work. Since the amount is paid to the insured, he can use it to meet expenses other than hospitalisation, such as those on food and travel, recuperation, and so on," says Basur.

Home insurance

Annual premium for a structure cover of Rs 20 lakh: Rs 1,200

Most home loan borrowers are familiar with home loan insurance, thanks to their lenders, but home insurance is different. While the former protects a family from loan liabilities in case of the policyholder's demise during the policy term, home insurance protects one's property from manmade or natural calamities.

"During floods, like the one in Uttarakhand, all possessions, including houses, are swept away and very few people are in a position to rebuild their homes on their own. Home insurance can provide financial support for resurrecting their dwellings," says Joydeep Roy, CEO and whole-time director, L&T Insurance. The scope of coverage could include damage due to terror attacks, too, whereby policyholders receive a compensation for the value of their property and other articles.

Critical illness

Annual premium for a standalone cover of Rs 25 lakh: Rs 1,500-2,000

If you have bought health insurance, you might question the need for this cover, but experts recommend it. This is because while a health cover takes care of hospitalisation bills and related expenses, a critical illness covers long-term medical care needs for life-threatening diseases like multiple sclerosis and cancer. Most health plans offer a maximum cover of Rs 10 lakh. "One needs to worry more about managing a critical illness rather than death. The developments in medicine have helped prolong life, but funding the treatment costs of critical illnesses remains a challenge," says Chopra.

"A critical illness cover can also come in handy if the policyholder is unable to resume work after the treatment, say, for cancer. The payouts will help maintain one's lifestyle during the recuperation period," explains Sharma.

You also have the option of buying a critical illness rider attached to your term plan.

roll of an insurance agent

vinay mohanty

government considering a renewed bid to get parliament’s assent in the monsoon session.

he chances of higher Foreign Direct Investment (FDI) limit in insurance sector have brightened with the UPA government considering a renewed bid to get parliament’s assent in the monsoon session.

Two allies, -one new, one old – will help the government. Janata Dal (United or Jd (U), with 17 MPs has parted ways with the Bhartiya Janata Party (BJP) and will try to prove its political distance from its former partner.

The Dravida Munnetra Kazhagam (DMK) with 18 MPs had walked out of the Congress-led UPA, but Congress’s assistance in the recent election of Kanimozhi to the Rajya Sabha will not go unacknowledged, top DMK leaders have told the Congress.

Kanimozhi, the daughter of DMK supremo M Karunanidhi, could have not won the election without Congress support.

This solid phalanx of 35 MPs, coupled with the Samajwadi Party (22 MPs) and the Bahujan Samaj Party (21 MPs) whose letters of support to the UPA continued to be lodged in the safe custody of the President of India, means the government can technically clear the Insurance bill in Lok Sabha.

The bill need assent of 272 Mps in the Lok Sabha. With 204 of its own and the assurance that nearly 100 other Mps will support, the Congress says that it is more confident now that the bill has a chance of being passed.

Its passage would pave the way for higher FDI in insurance as well as the pension sector. Liberalization in the two sectors is linked to each other.

The BJP is opposing to both. It says that there should be standard 26 % FDI limit for the financial sector.

Standing Committee on Finance, headed by BJP leader, Yashwant Sinha said that the FDI limit should not be raised. This was not accepted by the government while finalizing the bill.

Clearing the Insurance bill will be a big feather in the government’s cap, given that it has been pending for five years.

From October 2013 (LIC) policies will cost more

From October 2013, Life Insurance Corporation of India (LIC) policies will cost more. LIC, which accounts for 83% of the market share, will levy service tax of around 3% on all non-Unit-Linked Products beginning from first October 2013.

This means if the annual premium for your money-back policy from LIC is Rs 10 lakh, you will have to pay an additional Rs 30,000.

While private insurers add a service tax component to the premium paid by customers, LIC has not been levying the tax on its endowment and money-back plans.

From October 2013, however, all LIC policies will attract separate tax.

In a recent announcement, the Insurance Regulatory and Development Authority (Irda) mandated that service tax should not be included in the contractual premium, but should be collected separately from policyholders.

Currently, LIC will be absorbing the service tax as part of the policyholder’s funds, as the share capital of the government (which is its owner) is just around Rs 100 crores.

When service tax is charged separately, LIC may be able to pay higher bonuses on the policies.

All along LIC had been paying service tax from the money in the policyholder’s fund (which holds the premium collected and income from investments). It is the surplus in this account that is declared as bonus on traditional plans.

Customers may, however, see this move only as an additional burden.

LIC agents say that the service tax was a deterrent particularly for immediate annuity plans and single premium plans where the premium is usually large.

However, LIC may lose the advantage over other traditional plans from private life insurers now, and though this may come as shock to customers initially, they will slowly get accustomed to the new norm.

HDFCstdered,bajajAllianz and sun life are the top 3 unfair trade practices complaint chart

HDFC Standard Life tops unfair trade practices complaint chart

Last Updated: Tuesday, April 23, 2013, 18:16

New Delhi: Leading private life insurers HDFC Standard Life, Bajaj Allianz and Birla Sun Life top the list of firms against whom consumers have filed complaints with sectoral regulator IRDA for indulging in unfair business practices.

The other major companies against whom large number of complaints for making false lucrative offers to sell policies have been filed include ICICI Prudential and Reliance Life, Finance Minister P Chidambaram informed the Rajya Sabha in a written reply.

As compared to their private counterparts, the number of unfair business practice complaints filed against public sector behemoth LIC was significantly less during 2012-13.

Insurance regulator IRDA, Chidambaram said, "based on its own enquiries, levies penalty on insurance companies wherever a case of unfair business practice is established".

Based on the data by the Finance Minister, the total number of unfair business practice complaints has shot up to 1.68 lakh in 2012-13, from about 1 lakh a year ago.

During the year, the number of complaints filed against HDFC Standard Life during 2012-13 stood at 33,813 followed by Bajaj Allianz (21,745), Birla Sun Life (21,651), ICICI Prudential Life (16,891) and Reliance Life (16,401).

In case of LIC, which is the largest insurance company in the country, only 2,538 complaints regarding unfair business practice were received by IRDA.

The complaints against insurance companies for selling policies by making false lucrative offers at the point of sale are put under the category of the unfair business practices, he said.

PTI

house full

vinay mohanty

hats off to Bharatiya army

Irda’s new mortality table for life insurers may lower premium

Irda’s new mortality table for life insurers may lower premium
Posted 2/23/2013

Insurance regulator Irda today released new mortality table for life insurance companies for fixing premium, which may lower payments towards new policies. The table called Indian Assured Lives Mortality (2006-08) will be effective from April 1, Irda said in a circular. The mortality table indicates the rate of deaths occurring in a defined population during a selected time interval, or survival from birth to any given age.
According to sources, Irda’s new table will lead to reduction in life insurance premium. The new table is an improvement over the existing table as it is based on the latest mortality and claim experience of different life insurance companies. The variation in mortality across regions and gender is incorporated in the latest table.

The existing table is based on LIC’s data alone for the period 1994-96. There has been significant improvement in mortality rates across all ages, particularly in the young age, since 1996 and the new table will be useful for insurance companies in streamlining the pricing of policies based on latest data.

Source : PTI

IRDA Plans Cap On Sales By Bank-Promoted Insurers

Insurance companies promoted by non-banks may soon be on a level playing field with bank-promoted insurers.

According to the guidelines being planned by Insurance Regulatory and Development Authority (IRDA), banks which opt to be insurance brokers, will have to cap business from their own group companies at 25%.

This means banks cannot push for products from their own group companies beyond 25% of the total annual sales. For example, if State Bank of India (SBI) becomes a broker, its total insurance sales from SBI Life Insurance will be restricted to 25%. There will be similar cap for general insurance business.

Most major banks such as ICICI Bank, HDFC, Bank of Baroda, Bank of India, SBI, Canara bank, Punjab National Bank, Andhra Bank and IDBI have promoted insurance companies.

With many banks starting their own insurance ventures, newer, non-bank promoted insurers have been finding it difficult to find distribution partners with a wide network.

Under the current existing norms for distribution, a bank can only become a corporate agent, which allows it to sell products of one life insurance Company, one non-life insurance company and one standalone health insurance Company.

In his budget speech, Finance Minister P. Chidambaram had said that banks would be allowed to act as brokers to sell insurance to help improve penetration through the extensive national bank network.

These steps will ensure that there will be no selective selling by banks and provide a good platform for products of all insurance companies.

Also, to prevent mis-selling of policies through the bank channel, the IRDA will specify norms which require extensive training of the bank personnel selling insurance products, besides a strict compliance with Know Your Customer (KYC) norms.