Category: Insurance

e-insurance account

e-insurance account

Steps to opening an e-insurance account

1) Select the insurance repository or contact your insurer that has partnered with a repository.

List of Insurance Repositories

Insurance Repository Website
M/s NSDL Database Management Limited www.nir.ndml.in
M/s Central Insurance Repository Limited, www.cirl.co.in
M/s Karvy Insurance Repository Limited www.kinrep.com 
M/s CAMS Repository Services Limited, www.camsrepository.com

 

What is an Insurance Repository?
Insurance Repository is a facility to help policy holders buy and keep insurance policies in electronic form, rather than as a paper document. Insurance Repositories, like Share Depositories or Mutual Fund Transfer Agencies, will hold electronic records of insurance policies issued to individuals and such policies are called “electronic policies” or “ePolicies”.

2) Download the account opening form from the website of the repository or the insurer.
3) Submit the documents, along with KYC documents, to the ‘Approved Person’, website or branch of insurer.

What are the documents required to open an eIA Account?

  • ID Proof: Aadhar Card or PAN Card
  • Address Proof: Any one of Aadhar letter, Passport,Voter ID card, Driving license, Bank Passbook

4) The ‘Approved person’/ insurer will verify the e-insurance form and process the application.

5) The form will be submitted to insurance repository if you have deposited it with your insurance company.
6) The repository will open the account and send the ID and password via text and e-mail to you.
7) You can log in to the repository website and access your policy details.
8) Existing policies can be linked to e-insurance account by submitting the required form to repository. You can view and download policy.

What are the benefits of holding Insurance Policies in electronic form?

There are multiple benefits in holding insurance policies in electronic form under a single eInsurance Account (eIA). These benefits include:

  • Safety: There is no risk of loss or damage of a policy as may happen with paper policies; the electronic form ensures that the policies are in safe custody and can be easily accessed when needed.
  • Convenience: All insurance policies, be it life, pension, health or general, can be electronically held under a single eIA. This means all details of all policies are available in a single account (place). The details of any of the policies can be accessed at any time by logging on to the online portal of Insurance Repository. Premium for all the policies can be paid online and many service requests or complaints can be logged at this website.
  • Single Point of Service: All service requests in respect of eIA or any of the electronic policies held under the eIA can be submitted at any of Insurance Repository’s service points – there is no need to go to the offices of individual insurance companies for service.
  • Less Paper work: When you want to buy a new electronic insurance policy under an existing eIA, you don’t need to go through KYC verification all over again, if there are no changes to your KYC details already recorded in your eIA. Further, if you want to make any changes to your personal details like address or contact no, it is enough to change the details in your eIA with Insurance Repository by submitting a single request – Insurance Repository, in turn, will inform all the insurance companies with whom you hold electronic policies, about the changes.
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Bonus in insurance plans

Bonus in insurance plans

  • When a life insurance company makes a profit, it is supposed to distribute a part of that profit to its policyholders, in the form of bonus payments.
  • Not all life plans are eligible for bonus. Plans can either be participatory, thereby qualifying for bonus, or non-participatory, that do not qualify for bonus.
  • Bonus is different from guaranteed addition (GA). Bonus depends on the insurer’s profit while GA is an assured addition to the policy and is disclosed upfront.
  • Bonus depends on quantum of investment gains of the ‘with profit’ fund either as a certain amount per Rs 1,000 sum assured or as a percentage of the sum assured.
  • In most traditional life policies, bonus amount keeps getting added to the policy and keeps accumulating till the policy’s maturity. This is ‘reversionary’ bonus.
  • Terminal bonus is added on maturity of policy or on death. It is a onetime bonus that the insurer declares for policyholders who keep policy till maturity.

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Why health cover claims get rejected?

Why health cover claims get rejected?

Pre-existing disease: Medical conditions that exist before obtaining the health insurance policy are not covered from day one. A waiting period of up to 4 years can apply for such conditions.

Policy exclusions: Some illnesses covered only after a few years. Standard exclusions are cost of spectacles, dental and cosmetic surgeries, expenses for diagnosis and treatment relating to pregnancy etc.

Gap in renewal: The health insurance policy is renewable provided you pay the premium within 15 days of expiry date after which it lapses. During this gap period, coverage is not be available.

Policy coverage: The health insurance policy will mention sub-limits under heads such as room rent, consultancy fees, ambulance charges etc. and amounts over which costs will not be covered.

Incorrect information: Any wrong information given at the time of purchasing the policy if making a claim when discovered at a later stage could lead to claim rejection.

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Insurance Claim settlement ratio

Insurance Claim settlement ratio

1) An important yardstick for selecting an insurance policy is the insurance company’s claim settlement ratio.

2) It is calculated as the number of insurance claims settled by an insurance company as a percentage of the number of claims received over a period of time.

3) The higher the claim settlement ratio of a particular company, the greater are the chances of a claim being settled by it.

4) Choosing a policy with a lower claim settlement ratio, even if it has a low premium, may not be wise, as this defeats the purpose of having an insurance cover.

5) Insurers report data about the claims and settlement to Irdai, which publishes it on a regular basis, to be used by investors.

INDIVIDUAL DEATH CLAIMS 2016-17
Life Insurer Claims Paid
LIC 98.31%
Max Life 97.81%
HDFC Standard 97.62%
Aegon Religare 97.11%
SBI Life 96.69%
ICICI Prudential 96.68%
Exide Life 96.40%
Tata AIA 96.01%
Canara HSBC OBC 94.95%
Birla Sunlife 94.69%
Reliance Life 94.53%
Edelweiss Tokio 93.29%
Bharti Axa 92.37%
Bajaj Allianz 91.67%
Kotak Mahindra 91.24%
DHFL Pramerica 90.87%
Aviva 90.60%
IDBI Federal 90.33%
Sahara 90.21%
Future Generali 89.53%
PNB Met Life 87.14%
Star Union 84.05%
India First 82.65%
Shriram 63.53%

Source : IRDA ANNUAL REPORT 2016-17

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Personal accident insurance

Personal accident insurance

  • This policy offers compensation in case of disability to the insured person, as a result of an accident.
  • The primary purpose is to protect temporary or permanent reduction in income, arising out of accidents.
  • It covers permanent disability like paralysis and loss of limb and temporary disability like fractures.
  • The premium depends on an assessment of risk at the workplace, and the extent of coverage.
    For example, 
    For individual with Sum insured 10 Lakhs premium comes around Rs 1400/- 
    For a family of 4 members (2 Adults + 2 Childs) with sum insured 10 lakhs premium comes around Rs 2600/-
  • This can be added on to life insurance policies too.
  • Death or injury due to any illness or disease is not covered under this insurance, even if such disease might be linked to the nature of the job.
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How to claim maturity benefits from life insurance policies

How to claim maturity benefits from life insurance policies

In a life insurance policy with maturity benefits, the insured will be entitled to claim maturity benefits if he or she outlives the term of the policy. The insured is entitled to claim the maturity benefits only when the policy is in force and all premiums have been paid duly. A maturity claim is one of the simplest claim procedures with minimal paperwork involved.

Policy discharge form

Typically, the insurance company sends a Policy Discharge Form about one month before the maturity date of the insurance policy. The letter also provides instructions regarding the documents that need to accompany the form.

Details and documents

The policy discharge form must be duly filled by the policyholder. The form needs to be signed by the policyholder as well as two witnesses. Along with the form, the following documents need to be enclosed with the application:

  • Original policy document
  • Copy of identity proof
  • Copy of address proof
  • Bank mandate form with bank details
  • A cancelled cheque leaf

The duly completed form with required documents must reach the insurance company at least 5-7 working days before the maturity date of the policy for a seamless maturity claim settlement.

Process

Once the documents are sent to the insurance company, upon verification, the insurance company will process the maturity claim and make the payment to the policyholder. The maturity proceeds will be credited directly to the bank account of the policyholder after the policy maturity date.

Points to note

  • This procedure is applicable only to those policies that have maturity benefits such as survival benefit, bonus etc.
  • In case the policyholder dies after the maturity date of the policy but before policy discharge procedures are completed, the claim is considered as maturity claim and the amount is paid out to the legal heirs of the deceased policyholder.

 

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How to choose a term insurance plan

How to choose a term insurance plan

How to choose a term insurance plan

Term plans are the best form of life insurance because they offer high cover at a low price. A 30-year-old man will pay just Rs 700-800 a month for a cover of Rs 1 crore for 30 years.
That’s roughly what one spends on one movie outing with friends. However, the costs alone should not be the criterion when choosing a term plan. Here are a few things you ought to keep in mind when you go shopping for one.

How big is the cover?

An inadequate cover defeats the very purpose of buying insurance. The sum assured must be large enough to generate enough income to cover the basic expenditure that your family will incur as well as provide for crucial financial goals such as the education and marriage of children. It should also cover liabilities like loans, especially big-ticket borrowings like home loans. Take a large cover that provides for all these needs and also factors in in inflation in the coming years.

How much does it cost

For younger buyers aged 25-35 years, the daily cost of Rs 1 crore cover till the age of 60 is no more than the price of a soft drink.

* Premium of Click 2 Protect online term plan from HDFC Life Insurance for male non-smoker

How long is the tenure?

The tenure of the term plan is almost as important as the amount of cover. An insurance policy should cover a person till he intends to work. Till a few years ago, this was 60 years, but late marriages and having children in the late forties mean responsibilities do not end at 60.

Experts believe a person needs a life cover till at least 65 years, though it may vary according to circumstances. Don’t take a 15-20 year plan that will terminate when you are in your 50s. This is a critical period when the person’s insurance needs are highest. At that age, a new policy will cost him a bomb. He might even be denied the cover if he is not keeping good health. Buy a cover till the age of at least 60-65 years.

Have you lied about your health?

Insurance companies charge a lower premium if there is no history of medical problems in the family and if the person doesn’t use tobacco or drink alcohol. It is easy to say no to all these and get a lower premium, but people who keep their medical problems under wraps or conceal their social habits are playing with fire.

If the insurer finds out that you withheld crucial information on your health or lied about your smoking and drinking habit, the claim by your nominee may get rejected. Every year, about 2% of the claims received by life insurance firms end up in the trash can. Don’t let a difference of a few thousand rupees in the premium jeopardise your insurance cover.

How stable is the company?

An insurance policy is a long-term contract, but there are indications that a few insurance companies may not be around for the long term. The sector is going through a bad phase and several foreign partners have either sold off their stake or are looking for buyers. There is a possibility that loss-making companies may be taken over by larger players. Though the insurance regulator will ensure that all policies are honoured by the new owners, it’s best to choose a company that is doing well and is not likely to shut shop.

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