Insurance

 (Photo: iStock)
The insurance industry is aware of the fact that high lapse rates coupled with very high surrender costs can cause a huge reputation risk to the industry.
The insurance industry is aware of the fact that high lapse rates coupled with very high surrender costs can cause a huge reputation risk to the industry.

Cost of early exit from insurance may cost a little less, but will still hurt

  • The surrender costs—charge for leaving the policy before the term expires—have come down slightly
  • They are nowhere close to giving you the comfort of moving out of an insurance plan mid-way with little cost implications

The petition had alleged that the LIC Jeevan Saral policy was arbitrarily designed and the proposals were not correct. (Mint)
The petition had alleged that the LIC Jeevan Saral policy was arbitrarily designed and the proposals were not correct. (Mint)

SC dismisses PIL seeking scrapping of LIC Jeevan Saral Policy

  • The PIL had alleged mass cheating by Life Insurance Corporation of India (LIC) through its Jeevan Saral policy
  • It was alleged by the petitioner that the Jeevan Saral Policy holders have been misled and cheated by LIC

To understand insurance, one must have a basic understanding of the concept of risk. (iStock)
To understand insurance, one must have a basic understanding of the concept of risk. (iStock)

Why you should not expect your insurance policy to make money for you

  • People who invest in guaranteed plans should be mindful and realistic of the returns they expect on these policies, regardless of the guarantees provided by the insurance company
  • Your insurance premium includes growth, mortality costs, overhead costs and the profitability of the insurance company

 (Photo: iStockphoto)
(Photo: iStockphoto)

Factors that may hike your insurance premium

  • When it comes to life insurance, the underlying mortality rate plays an important role among other factors on deciding your premium
  • In health insurance, the underwriting process focusses more on the diseases you may already have at the time of application

 (iStock)
 (Mint)
(Mint)

Airtel Payments Bank ties up with Bharti AXA Life to sell term insurance

  • The product, Bharti AXA Life POS Saral Jeevan Bima Yojana, is a pure life term insurance plan which is aimed at the under-insured and uninsured segments in India
  • While the policy is initially available at Airtel Payments Bank's 25,000 retail outlets, this will soon be expanded to cover over 60,000 banking points

Buying health insurance is an important decision because this insurance serves you for life.
Manulife Chief Executive Officer Roy Gori (Photo: Bloomberg)
Manulife Chief Executive Officer Roy Gori (Photo: Bloomberg)

Manulife CEO Roy Gori sees India becoming big part of Asia business

  • Manulife CEO Gori sees the combination of Mahindra’s local market brand with Manulife’s global capability and knowledge as a key step
  • Manulife last week announced a joint venture with India’s Mahindra & Mahindra Financial Services, a firm with over 6 million customers

 (iStock)

When is the right time to buy life insurance?

  • While the premiums might be low if you buy a term plan when you’re young, you will only need the coverage if you have dependants to look after
  • Of the life insurance products available, a term plan is the best if you’re looking for a cost-efficient protection plan

 (iStock)
 (iStock)
(iStock)

Why is third-party motor insurance cover mandatory?

  • The SC in July last year made it mandatory for all car owners to have a 3-year TP policy and 2-wheeler owners to have a 5-year policy
  • Third-party property damages are covered up to a sum of 7.5 lakh. If the damage is beyond the insurance cover, the policyholder has to bear the additional expense

Buying health insurance is an important decision because this insurance serves you for life. Photo: HT
The consolidation in the PSU general insurance firms is part of disinvestment strategy of the government (iStock)
The consolidation in the PSU general insurance firms is part of disinvestment strategy of the government (iStock)

Govt looks to consolidate state-run general insurers

  • The govt is exploring various consolidation options including merger of state-owned general insurance companies with New India Assurance
  • The govt is also looking at other options including stake sale in 3 PSU insurance firms like NIC, Oriental Insurance and UIIC

 (Photo: iStock)
 (Photo: Shutterstock)
SBI Life held 2.1% of India’s total 331 million life insurance policies as of March 31, 2018. Photo: Bloomberg
SBI Life held 2.1% of India’s total 331 million life insurance policies as of March 31, 2018. Photo: Bloomberg

'It's time to take your money out of stocks': India's top insurer to investors

  • 'It’s time to take some money out of equities because valuations are looking stretched,' Gopikrishna Shenoy, SBI Life Insurance
  • SBI Life expects earnings at India’s top 50 companies to rise as much as an average of 14% in FY20