The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
In case of any claim dispute, where can my case be represented?
In case of any claim dispute, the case can be represented to the insurance ombudsman. The ombudsman has judicial powers and can be challenged only in a high court.
The Insurance Regulatory and Development Authority clearly articulates that a claim should ideally be settled within 30 days from the date of receipt of all relevant information. In case the claim warrants an investigation, then the insurance company has to complete the investigation not later than six months from the time the claim is lodged.
Moreover, in case a claim is ready for payment but the payment can’t be made due to any reason, such an amount will earn interest at the rate applicable to a savings bank account.
I am 30, and work for a multinational company. I have an annual income of Rs15 lakh. I have a six-year-old son and want to invest in a plan that can secure my child’s future and provide for his needs in case I am not around. Which plan should I invest in?
There are a number of child plans available in the market today. These not only help to secure your child’s future, but can also give him the freedom to pursue his dreams in case of any unfortunate eventuality to you. The plan that you choose should have features such as:
• Premium waiver: All remaining premiums get waived and the policy continues in case of the death of the parent.
• Income benefit rider: This ensures a regular income for the child in case of the death of the parent.
• Comprehensive health benefit rider: In case the parent suffers from a critical illness or permanent total disability, the sum assured is paid immediately and all future premiums are also waived, so that the policy continues for the benefit of the child.
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is T.R. Ramachandran, managing director and CEO, Aviva India.