Insurance

IRDAI's call to introduce the option of multiple premium payment options is a welcoming change (AP)
A third-party liability cover is the basic form of motor insurance or car insurance. (iStock)
A third-party liability cover is the basic form of motor insurance or car insurance. (iStock)

Why the slump in automobile sale hasn’t hit motor insurers

  • General insurance companies seem to be enjoying the spike in the sale of motor insurance policies
  • After the amendments to the Motor Vehicles Act, not having a third-party motor insurance attracts a fine of 2,000 for the first offence

More disclosures at the time of sale, and a review of incentives for intermediaries is the need of the hour (Photo: iStock)
More disclosures at the time of sale, and a review of incentives for intermediaries is the need of the hour (Photo: iStock)

The menace of mis-selling in insurance and how to curb it

  • The spat between ICICI Pru Life Insurance and its former employee reveals a larger industry problem
  • Front-end commission structure and high exit cost contribute to mis-selling in insurance

Photo: iStock
If an individual is diagnosed with a mental illness subsequent to buying a health insurance policy, the insurer cannot reject the claim (Photo: iStock)
If an individual is diagnosed with a mental illness subsequent to buying a health insurance policy, the insurer cannot reject the claim (Photo: iStock)

Health insurance policies now cover mental illnesses

  • The Mental Healthcare Act 2017, directs every insurer offering health insurance products to cater to policyholders with mental illnesses the same way they cater to physical illnesses or injuries
  • The Irdai guidelines say an insurer cannot discriminate an illness in being mental or physical

Being the largest financial institution, LIC is also the largest investor in the equities and debt market valued at trillions of rupees.
Being the largest financial institution, LIC is also the largest investor in the equities and debt market valued at trillions of rupees.

LIC says social media messages baseless, policyholders' money safe

  • LIC says social media messages wrongly speculate about its financial health
  • Clarification comes after messages on social media claimed that LIC is in heavy losses

Photo: iStock
Injury or illness associated with hazardous activities will now be covered, but there will be exceptions. (Photo: iStock)
Injury or illness associated with hazardous activities will now be covered, but there will be exceptions. (Photo: iStock)

Health coverage to be wider, but costs may rise

  • Irdai guidelines may be good news for policyholders who didn’t understand how exclusions worked and got a shocker at the time of making a claim
  • Irdai has told health insurance companies to standardize exclusions for existing products by 1 October 2020

Life Insurance is not about investing your money to earn a return on it, it’s about financial protection for your loved ones  (Photo: iStock)
Life Insurance is not about investing your money to earn a return on it, it’s about financial protection for your loved ones (Photo: iStock)

Term plan premiums explained

  • A term plan is the only kind of life policy you need to have because it gives you a large cover for low cost
  • Buying a term plan also needs due diligence at your end when filling up the insurance policy form called as the proposal form

The Irdai circular mentions the provisions life insurers must follow to ensure fair sales process with relevant disclosures (Photo: iStock)
The Irdai circular mentions the provisions life insurers must follow to ensure fair sales process with relevant disclosures (Photo: iStock)

Irdai moves to make sale of life covers transparent

  • Irdai’s new guidelines for life insurers aim to protect policyholders against mis-selling
  • The guidelines will help better readability of all charges, year-by-year fund value at assumed rates of 4% and 8%, surrender value and life cover

Policyholders will now be given the option to pay health insurance premiums in various frequencies or instalments. (Photo: iStock)
Life Insurance is not about investing your money to earn a return on it, it’s about financial protection for your loved ones (Photo: iStock)
Life Insurance is not about investing your money to earn a return on it, it’s about financial protection for your loved ones (Photo: iStock)

Term plan premiums explained

  • A term plan is the only kind of life policy you need to have because it gives you a large cover for low cost
  • Buying a term plan also needs due diligence at your end when filling up the insurance policy form called as the proposal form

Most employer-provided group top-up plans would have a cover for pre-existing illnesses immediately. (iStock)
For individual plans, the sum assured are  ₹ 5 lakh,  ₹ 10 lakh,  ₹ 20 lakh and  ₹ 50 lakh. In each of these, the ages are 30, 45, 60 and 75 years (Photo: iStock)
For individual plans, the sum assured are 5 lakh, 10 lakh, 20 lakh and 50 lakh. In each of these, the ages are 30, 45, 60 and 75 years (Photo: iStock)

Top health insurance plans for you

  • Here is a comparison of top health insurance plans for different sum assured and across different age groups
  • Only the A-rated health insurance plans have been shown here

Policyholders will now be given the option to pay health insurance premiums in various frequencies or instalments. (Photo: iStock)
Policyholders will now be given the option to pay health insurance premiums in various frequencies or instalments. (Photo: iStock)

Pay health premiums in instalments now

  • Monthly, quarterly or half-yearly: choose your frequency to pay
  • The regulator’s move also comes as a relief for senior citizens whose premiums increase significantly

Our product criteria focus has remained the time that pre-existing diseases are excluded and the restrictions on room type. (Photo: iStock)
This year we rated 24 insurance companies and 112 policies across three broad categories of price, features and claims. (Photo: iStock)
This year we rated 24 insurance companies and 112 policies across three broad categories of price, features and claims. (Photo: iStock)

Choose from India’s best health policies

  • Don’t stop at top-rated plans; find one that caters to your needs
  • The ratings should not only help you choose a plan well but also help you develop an understanding about what to look for in health insurance

Most financial advisers and planners say that Indians are under-insured in terms of health cover. (Photo:iStock)
You could consider buying sachet plans if you already have significant health, life and accident covers
The recommended best practices, common standards, collaborative measures and IT framework for effective healthcare through health insurance in India (Photo: iStock)
The recommended best practices, common standards, collaborative measures and IT framework for effective healthcare through health insurance in India (Photo: iStock)

NHA, IRDAI recommend measures for effective healthcare through health insurance

  • The report recommend to build a National Repository of Empanelled Hospitals under insurance/govt schemes with defined standards for quality, package rates and codes
  • The report also recommended developing a roadmap to get one common list of accredited verified hospitals for the entire industry