Author: parastar

Categories
Life Insurance Corporation

LIC Jeevan Akshay 7 (An Annuity Policy that Secures Your Future)

LIC Jeevan Akshay 7- A Policy to Secure Your Future

Annuity plans are one of the most preferred retirement plans. LIC Jeevan Akshay 7 is one of them. It can be purchased by paying a lump-sum amount. It offers an annuity payout right after the premium payment, ensuring a financially secured retired life. It also offers a stated amount during the lifetime of the annuitant. It also makes several options of the mode and type of payment available to the insured.

LIC Jeevan Akshay 7 has various features. Let’s move ahead and know about them.

Features of the LIC Jeevan Akshay 7 policy

Here are a few features of the plan:

  • Jeevan Akshay is an immediate annuity plan where the pension starts immediately after the premium payment from the chosen date.
  • You can choose to cover only for a single life (life of the policyholder) but also for joint lives (policyholder and spouse).
  • No medical check-ups are needed for this policy.
  • Higher annuity rates are offered for online purchases.
  • Annuity rates are higher for the purchase price of Rs. 2,50,000 and above.

Benefits of the LIC Jeevan Akshay 7

The policy offers benefits to the policyholder and also to the other beneficiaries as mentioned in the contract. Here are the most important ones:

Death Benefit

The benefit is availed by the beneficiary based on the clause chosen by the policyholder or the assured.

Income Tax Benefit

Under section 80CCC of the Income Tax act, 1961 tax benefits can be availed by the policyholder on the premium paid.

 

Eligibility Criteria for the policy

  • The minimum entry age for the policy is 30 years.
  • The maximum entry age allowed is 65 years.

Expected returns

Suppose if the policy is purchased for Rs 10 Lakhs, here’s the return that one can expect:

Annuity Option

Amount

Immediate Annuity for life

 63,950

 

Immediate Annuity with guaranteed

period of 5 years and life thereafter

 

63,850

 

Immediate Annuity with guaranteed

period of 10 years and life thereafter

 

63,650

Immediate Annuity with guaranteed

period of 15 years and life thereafter

 

63,350

 

Immediate Annuity with guaranteed

period of 20 years and life thereafter

62,750

 

Immediate Annuity for life with

return of Purchase Price

 

53,150

Immediate Annuity for life

increasing at a simple rate of 3% p.a.

 

47,150

Joint Life Immediate Annuity for

life with a provision for 50% of the annuity

to the Secondary Annuitant on the death of the primary Annuitant

 

60,550

Joint Life Immediate Annuity for

life with a provision for 100% of the annuity

payable as long as one of the Annuitant

survives

 

57,550

Joint Life Immediate Annuity for

life with a provision for 100% of the annuity

payable as long as one of the Annuitant

survives and return of Purchase Price on

death of the last survivor

 

52,750


LIC Jeevan Akshay 7 not just offers a regular income but can also relieve you from worrying about your better half in your absence along with benefitting your family if you choose the right options.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Life Insurance

Life Insurance Corporation of India (LIC)

Learn about Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is the largest life insurer in the country. LIC has a long-standing history of providing its policyholders with competitive and beneficial life and term insurance products.

LIC is a statutory corporation that was brought into existence with an act of parliament through the LIC Act 1956. As it suggests, LIC came into existence on 1st September 1956.

LIC has a tremendous amount of business around the nation, with revenues exceeding US$75 Billion (in 2019), and net income exceeding US$380Billion (in 2019).

The company is also one of the largest employers in the world with over 1.14 Lakh employees.

This content piece will aim to talk about the most important topics relating to the LIC of India from the perspective of a potential policy buyer. So, if you are considering purchasing a LIC policy, you will find this article worth reading.

Topics covered are:

  • History about LIC
  • LIC shareholding
  • LIC facts and features
  • LIC policies
  • Benefits of LIC
  • Objectives of LIC
  • How to check LIC policy status
  • LIC customer support

History about LIC

Let us understand the history of LIC along with some of the most important milestones:

Founding of Oriental Life Insurance Company: The British empire founded the Oriental Life Insurance company in Kolkata in 1818. This insurance company only catered to the British. It had the objective of providing life insurance and related services to only British individuals, not Indians.

Founding of Bombay Mutual Life Assurance Society: This was the first Indian life insurance company, started in 1870. The company was incorporated in Madras. This was the first life insurance company in India that provided life insurance services to Indians without any discrimination.

Founding of Bombay Life Assurance Company: This was another Indian Life insurance company that provided life insurance products to Indians. It was founded in1908, headquartered in Bombay.

The emergence of other Swadeshi insurance companies: The following other Swadeshi insurance companies were incorporated as part of the Swadesh Movement-

  • National Insurance Company
  • United India Insurance Company
  • National Indian
  • Bharat Insurance Company
    And more.

First insurance regulator in India: The Indian Life Insurance Companies Act was passed in the British Parliament to regulate the insurance sector in India. Its task was to regulate the premium costs, competition, and ensure fair practices within the insurance sector in India.

Indian Insurance Companies Act of 1928: This act was enacted by the government in 1928. It gave the government the power to collect insurance company data. This act leads to more accountability among Indian insurance companies.

Insurance Act 198: The Insurance Act 1938 was brought into power by combining previous insurance acts and merging them into a single act. This act is still applied to date and does regulation work of the Indian insurance industry.

LIC Act 1956: It was decided by the Parliament of India that regulating over 245 large insurance companies was becoming challenging. Thus, it was decided that all these companies would be merged into a single entity, this entity would be called Life Insurance Corporation of India (LIC). LIC of India started its operations shortly after.

LIC shareholding

  • 100% shares owned by the Government of India
  • 95% profits distributed across policyholders and 5% retained by the Government of India
  • It was proposed in the 2021 budget that LIC could go for an Initial Public Offering (IPO), where a minority stake will be sold to the public via an IPO.

LIC facts and figures

Particulars

Data

Date of incorporation

1956

Headquarters

Mumbai

Total policy holders

29 Crores

Total assets under control

US$440 Billion

Total revenue (2019)

US$79 Billion

Net income (2019)

US$380 Million

LIC policies

Let us now talk about the list of policies offered by LIC. All LIC policies are classified under different sections, they are:

  • Insurance policies
  • ULIP policies
  • Pension plans
  • Health plans
  • Micro Insurance policies

LIC insurance policies

Endowment plans

Policy nameAbout the policy
LIC Bima JyotiThis policy is a non-linked, non-participating life assurance savings policy. This policy provides a lump sum amount to the policy nominee in the event of the policyholders demise.
LIC Bachat PlusThis policy provides death as well as savings component to the policyholder.
LIC New Jeevan AnandThis policy provides the holder with death benefit, maturity benefit along with continued lifetime cover.
LIC Saral Jeevan BimaThis is a non-linked pure risk insurance policy.
LIC New Bima BachatThis is a single premium money back policy that provides life coverage along with a savings component.
LIC Jeevan LabhThis is an endowment policy that provides retirement benefits to the policyholder.
LIC Aadhar ShilaThis is a special policy for the benefit of women. This policy provides life coverage, maturity and loyalty addition benefits.
LIC Aadhar StambhThis is a life insurance policy that provides liquidity to the policyholder during challenging times through its auto-cover loan feature.
LIC Jeevan Umang (Whole life plan)This is a whole life policy that provides life coverage to the policyholder up till 99 years of age.

Money back plans

Plan nameAbout the plan
LIC Jeevan TarunThis is a specially structured plan to meet the educational demands of today’s students. It provides a regular payment option to the policyholder every year.
LIC Bima ShreeThis is a plan that provides death benefit, maturity benefit, survival benefits and guaranteed add-ons. Minimum entry price is Rs 10 Lakhs.
LIC New Money Back Plan (20 years)This plan provides death benefit along with periodic payments to the policyholder.
LIC New Money Back Plan (25 years)This plan provides death benefit along with periodic payments to the holder.
LIC New Children’s Money Back PlanThis plan can be purchased by parents of children between the ages of 12 years or lower. It is a plan that provides life coverage of the child along with regular payments at intervals to the holder.
LIC Jeevan Shiromani PlanThis is a life coverage plan with additional benefits. This plan is targeted towards high net worth individuals as its entry price is Rs 1 Crores.

Term plans

Plan nameAbout the plan
LIC Jeevan AmarThis is a term insurance plan with options for 2 types of death benefits (regular sum assured or increasing sum assured).
LIC Tech TermThis is an online-only plan that provides term coverage to the insured.

Add-ons/Riders

NameAbout the plan
LIC Accident Benefit RiderThis is a rider that provides accident coverage to the insured. This can be bought along with another comprehensive plan that covers critical illnesses.
LIC New Critical Illness Benefit RiderThis add-on provides protection to the policyholder if the policyholder is suffering from a pre-existing sickness.
LIC Linked Accidental Death Benefit RiderThis is a linked accidental death rider.
LIC Accidental Death and Disability RiderThis rider provides protection in the event of accidental death or even disability. One should avail of this rider along with another comprehensive plan for maximum protection.
LIC Premium Waiver RiderThis rider provides relief in future premium payment in the event of the policy proposer’s demise.
LIC New Term Assurance RiderThis is a basic term assurance rider that provides life coverage for a specified term.

ULIP policies

Policy nameAbout the policy
LIC SIIPThis is a unit-linked policy that provides death and maturity benefits.
LIC Nivesh PlusThis is a single premium unit-linked policy that provides death and maturity benefits.
LIC New Endowment PlusThis is a unit-linked retirement plan.

Pension plans

Plan nameAbout the plan
LIC New Jeevan ShantiThis is single premium annuity plan that provides deferred annuity to the policyholders.
LIC Jeevan Akshay 7This is an annuity plan that has varied options. The policyholder can either start his annuity immediately or after a specified time frame.
Pradhan Mandri Vaya Vandana YojanaThis is an assured pension plan that provides pension facility to elders at a rate of interest of 7.4%.

Health plans

Plan nameAbout the plan
LIC Health Protection PlusThis is a ULIP plan that provides health coverage along with savings and investment component.
LIC Jeevan ArogyaThis is a health plan that provides comprehensive health coverage like surgical coverage, hospital cash, ambulance costs, NCB etc.
LIC Cancer CoverThis plan providers coverage for cancer and related illnesses.

Micro insurance policies

Policy nameAbout the policy
LIC New Jeevan MangalThis is a micro insurance savings plan that provides a guaranteed payment of 110% of total amount of premiums paid on policy maturity.
LIC Micro BachatThis is a micro insurance policy that provides death and maturity coverage.
LIC Bhagya LakshmiThis is a non-linked micro insurance plan with a savings component.

Benefits of LIC

  • Sovereign guarantee: Any amount invested with LIC has the full guarantee of the Indian Government. This means that the policyholders will get their money back in the event of the company’s winding up.
  • High claim settlement ratio: LIC has a high claim settlement ratio of 96.69% (in 2019-20). This means that the company has settled roughly 97 out of every 100 claims. This is a very healthy claim settlement ratio.
  • Focus on welfare of policyholders: LIC always has its focus on the welfare of its policyholders above everything else. It is a government entity, has the objective of people’s welfare.
  • A vast variety of policies: LIC offers a vast variety of policies that a policyholder can avail. There are all types of policies like endowment policies, retirement policies, money-back policies, health plans, child plans, general term and life insurance plans, and more. There is something for everyone at LIC.
  • 24×7 support: LIC offers its customers the benefit of 24×7 customer support, so customers can address their grievances and queries at any time.

Objectives of LIC

Let us learn about the most important objectives of LIC below:

  • Increasing the penetration of insurance and related products within India.
  • Ensure the welfare of the common population.
  • Keep the policyholder’s interests always on top.
  • Conduct insurance-related business as efficiently as possible.
  • Encourage an environment of savings among the people.

How to check your LIC policy status

LIC has made it quite easy for existing policyholders to check the status of their respective policies. They can check their policy status easily and seamlessly through the LIC website. Let us understand the process in simple steps.

Step 1: Register yourself with the LIC e-services account

Enter your policy number, date of birth, name, mobile number, etc within the fields and click on the ‘Proceed’ button.

Step 2: Login to your LIC e-services account

Enter your login credentials and press on ‘Sign in’. You will now be redirected to the dashboard.

Step 3: Enter your dashboard

Once entered, navigate to the ‘Policies’ section to the left and click on your policy. You can now view your policy details within the portal.

LIC customer support

LIC Call Center

SMS Helpzone

Email

022 6827 6827 (24×7)

SMS LICHELP to 9222492224

corporate.enquiry@licindia.com (corporate inquiries)

18004259876 (for health plans)

SMS LICHELP to 56767877

List of LIC email ID’s

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Health Insurance

What is TPA in insurance? (Understand its concept and role)

What is TPA in insurance (Understand its concept and role)

A medical emergency is something that comes unannounced, so it is imperative to get health insurance. TPA is a word you often hear while looking for health insurance. But, what is TPA is insurance, and how does it work? This article will explore this concept in detail and help you understand the role TPA has in health insurance.

What is TPA in insurance?

Third-Party Administrator is TPA insurance full form. It is an entity that manages insurance claims that are protected by the Mediclaim scheme. These managers are usually self-contained but may also serve as a representative of the insurers.

The need for the concept of TPA

An increasing number of health insurance policies dispensed by insurers has made maintaining a record of every task done challenging, resulting in a reduction of the quality of services provided. TPAs were established as a result of IRDA’s efforts. Ever since it has been considered accountable for the following:

  • Hassle-free quality services.
  • Managing a vast number of health insurance claims.

Role of TPA in health insurance

TPA in insurance means an entity that is essential for the overall handling of health insurance claims. Some of the roles of TPAs in health insurance can include:

1.) Provide the insured with their health cards

A validation process is carried out by issuing a valid health card for each policy issued. This card includes information about the policy number as well as the TPA in charge of processing the claim. This document is extremely important to acquire health insurance claims.

For instance, if a person with health insurance gets injured, he has to show this card and inform the TPA or insurer of the details of the claim while being admitted to the hospital.

2.) Production and resolution of claims with ease

A TPA is accountable for expediting a claim as quickly as the insured tells them of it. Their duty is to go through all of the submitted records. The TPA may request as many details as is required to double-check the data. The claim will be settled either cashlessly or on a refund basis.

In any case, a TPA would be responsible for inspecting all records. The TPA will obtain the documentation from the hospital in the case of a cashless settlement. In other situations, the TPA can request the favoring documents and bills from the insured.

3.) Customer support helpline

Policyholders can contact their TPA to receive help with their claim or to clear any related queries through a toll-free number 1800-258-5956. This facility is available 24 hours a day and can help you track the status of their claims.

After knowing what TPA is in insurance, it’s safe to say that the presence of a third-party administrator (TPA) in the insurance business makes the different steps of a health insurance policy much simpler and quicker for you. Furthermore, TPAs become a great help for policyholders by providing much-needed claim assistance.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

What is fire insurance (Everything you need to Know)

What is fire insurance? (Everything you need to know)

The answer to the question “what is fire insurance?” is simple. It is a legal, contractual agreement between a policyholder and an insurance company. However, there are some clauses related to this insurance you need to be informed about before applying for one. This can complicate the concept of those new insurance policies. In this article, we will explore in detail fire insurance meaning and what it entails.

What is fire insurance?

Fire insurance allows you to get insured against fire damages. Such a policy aims to provide compensation to you if there has been damage to your property via fire. For instance, if your house catches on fire, the fire insurance policy will cover the losses.

However, fire insurance also helps cover the repairs for the damage to your property. This may also extend to the coverage of the cost of your accommodation. Thus, fire insurance is somewhat of a lifesaver.

Why do you need fire insurance?

Imagine this: you put every penny you have saved into a new business. Your business is slowly picking up pace. However, one day you turn up to work and find that there has been a fire. The locality has been burned down. The shop next to yours had been razed to the ground, but the person is not in as much despair as you because they have a fire insurance policy. You, on the other hand, lose all savings and have to bear the loss yourself.

This does not sound ideal, does it?

More than twelve billion dollars of property damage was reported across fire stations. The statistics are as recent as 2019. The perils of an accidental fire are manifold. A fire insurance policy protects you and your interests in case of misfortune.

Let us take a look at how a fire insurance policy is beneficial to you:

  • As a policyholder, you are entitled to a fire insurance claim when there is a fire at your insured property.
  • The policy will cover the charges for any damage repair required.
  • Fire insurance policies also cover natural disasters such as lightning or gas explosions.

How does a fire insurance policy work?

The fire insurance company will compensate for the insured property. The insured property is the property for which you have paid insurance. The policyholder will also receive financial coverage for damaged assets in the interiors of the insured property.

What does a fire insurance policy cover?

If you become a policyholder, the fire insurance policy will cover several sources, including a short circuit, an electrical misfire, or even explosions. Fire insurance policies cover a range of sources, be it natural or man-made (read accidents, gas explosions, faulty pipes).

Types of fire insurance

Depending on your insurer, fire insurance policies may differ. Some of the basic policies offered by companies include:

Replacement policy

Here the compensation given is based on the market value of the insured property. The amount you will receive will be equal to the market value of your lost property after the depreciating value has been calculated. This means that you will need to look for an asset that is equal to the market price of your damaged property. No additional expense is given in case the price of your new asset exceeds the replacement cost.

Specific policy

If you opt for this policy, you will need to fix a particular amount. In case of any loss, you will receive an amount in compensation if the compensation required is less than the amount you had initially fixed.

Consequential loss policy

This is more suited to a business owner as the compensation handed over is calculated on the loss of sales. Essentially, you receive an amount for your profits. For instance, when there is a fire at a factory, there will still be some fixed expenditure. This expense can be covered by the insurance payout.

Comprehensive policy

An expansive policy that protects the insured property against all forms of danger: break-in, flood, fire outbreak, among other things.

Floating policy

This policy is beneficial to business owners, particularly those who handle import and export trade. This protects your goods when they are still amid delivery. It essentially covers these goods against fire outbreaks regardless of the places they’re stuck in. However, the policy holds only if all the goods belong to one person and one premium has been decided upon for all the goods.

Valued policy

A value is fixed initially based upon which the policyholder gets compensated.

What is not covered by fire insurance?

Any insurance policy comes with tiny prints. These clauses may decide whether you receive any coverage as a policyholder. For instance, the insurer is not liable to pay you anything if the fire has been caused by a nuclear attack. You will not receive compensation for your fire insurance policy in the following cases:

  • Market losses, or any type of consequential loss such as earning or delay.
  • Any damage incurred by earthquakes or volcanoes and other such natural disasters.
  • No coverage is provided during war or other such warlike situations.
  • You will not receive compensation for damage incurred by electric gears.
  • No coverage is provided in case of terrorism or any related activity.
  • Nuclear activities, radioactivity, and other related activities are not covered by the fire insurance policy.

Fire insurance is crucial to homeowners and business owners. Any property is an investment. Fire insurance policies help you protect these investments. It is always better to insure yourself in case of accidents, as it can help you out in a time of need.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

What is an insurance rider?

What is an insurance rider?

When dealing with insurance policies, you must have heard the term rider. Now, what is an insurance rider? In simple terms, an insurance rider is a policy provision that offers added benefits or amends the terms of your Insurance policy. This article will explore the meaning of an insurance rider in life and health insurance policies and the different types of riders you can add to a policy.

What are life and health insurance riders?

Insurance riders are additional benefits offered over your existing insurance or policy, like broader coverage. Most life and health insurance riders come with add-on benefits that allow policyholders to make the most out of their policy. For instance, the term insurance rider provides a death benefit to the nominee on the insured’s death.

Different types of insurance riders

There are various types of insurance riders for life insurance policies. Some of them are listed below:

Long-term care

While many market policies ensure long-term life care, this rider also makes sure that the policyholder is allowed a monthly payment in case he/ she has to stay at a nursing home or receive home care.

Term conversion

This term insurance rider allows the policyholder to convert his/ her existing term life insurance to permanent life insurance without a medical exam. Once the term insurance expires, it can be difficult to convert or obtain another policy.

Waiver of premiums

Future premiums are waived under this rider if the policyholder somehow becomes permanently disabled or loses their income due to some injury or illness. Eligible policyholders are excused from paying the due premium until they are ready to work again.

Accidental death rider

This rider provides a payable benefit if the policyholder dies during the rider benefit term due to an accident. This payable sum is in addition to the basic sum assured. However, the premium remains fixed throughout the term of the policy.

Child term rider

This term insurance rider offers financial benefits in the event of a child’s death. Additionally, the rider can also be converted into permanent insurance after the child reaches maturity.

Different types of health insurance rider

Here are a few health insurance riders that offer increased cover for your existing policy:

Maternity cover rider

This rider ensures that your insurance covers certain expenses during childbirth. Primarily, it covers delivery expenses. The rider might also include pre or post-delivery charges. In some cases, it also covers newborn baby expenses and vaccination costs.

Critical illness rider

This health insurance rider ensures that the policyholder receives a basic lump sum of money on a valid diagnosis of a critical illness pre-specified in the policy. Most major illnesses are covered under the critical illness rider, including cancer, heart attack, paralysis, organ failure, etc.

Personal accident rider

From permanent total disablement and accidental death to temporary disablement, this health insurance rider covers all possible aftermath of an accident. In case the policy rider dies in the accident, the nominee is entitled to twice the amount of the policy.

Hospital Cash

This health insurance rider ensures a daily cash allowance to the insured to help with the hospitalization expenses. The number of days you’re allowed to utilize this cash is defined in the rider.

To conclude, insurance riders provide added benefits to the existing policy. The extra premium for a rider is also pretty low. You should be thorough and careful about the terms of the rider. An insurance rider can enhance your life coverage and provide secure financial support for your family.

 

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

What is an insurance claim? (Understand the claims process)

What is an insurance claim? (Understand the claims process)

When it comes to an insurance policy, the question “What is an insurance claim?” is quite common. An insurance claim is simply a formal request made to the policy provider concerning an insurance policy. Insurance can be claimed when the insured suffers some sort of loss like personal injury or property damage.

Not many are familiar with the process of an insurance claim. So with this article, we will cover all the various claim types and the steps for claiming.

Various Insurance claim types

There multiple types of insurance claims:

  • Burglary and theft
  • Water and freezing damage
  • Wind and hail damage
  • Slip and falls
  • Fire
  • Customer injury and property damage
  • Struck by an object/ Workplace accidents
  • Reputational harm
  • Auto accidents concerning commercial vehicles

Steps for insurance claim process

  1. Contact your broker: He/she is your primary point of contact. They understand your insurance policy and will know how to proceed from here. Provide a detailed rundown of your damage and loss and catalogue these with photos.
  2. Claim investigation: Once the claim has been reported, the insurer will schedule an adjuster for investigation. The adjuster will determine if the amount and value of the loss you have suffered is covered under your insurance policy or not. They will also inquire about any liable party.
  3. Policy review: Once the investigation is complete, the adjuster will go through your policy carefully. They will inform you about any deductible applicable in your case.
  4. Damage evaluation: The adjuster hires appraisers, contractors, or engineers to evaluate the extent of your damage accurately. Once done with the evaluation, your adjuster will provide the list of vendors for repairs.
  5. Payment: Your adjuster will contact you regarding the settlement of your insurance claim. The time to complete the transaction depends on your policyholder and the severity of your loss and damage.

How to claim insurance for a car / How to claim insurance for a bike?

  • In case your vehicle has met an accident and needs repairs, contact your insurance policyholder.
  • Register for an Insurance Claim. You will be given a registration number.
  • The appointed adjuster will investigate and evaluate damage and loss sustained to your vehicle.
  • Take your vehicle to the nearest, preferred, or allotted garage for repair and replacement services.
  • Collect and safely keep all the bills during the process.
  • Claim reimbursement or settlement.

In case of theft and burglary, lodge an FIR at the nearest police station.

Documents needed:

  • Insurance claim form
  • RC Copy of the vehicle
  • Tax receipt of the vehicle
  • Driving license
  • Insurance policy document
  • FIR copy in case of theft
  • Repair bills and receipts.

An insurance claim is a process where you file a claim after suffering some form of loss. Every insurer has a different method and time of the process. Every insurance claim has a different approach and resolution. Your adjuster and broker will help you through the process and serve to your satisfaction.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

Everything You Need to Know About Section 45 of The Insurance Act

Everything You Need to Know About Section 45 of The Insurance Act

Section 45 of the Insurance Act refers to the rejection of an insured claim. According to this section, an insurance company can withdraw the policy under the ground of a misstatement if they can prove the misstatement within 3 years. After 3 years, an insurance company cannot return one’s premium and reject the insured claims. Understanding the various terms under this act can be difficult for those trying to get an insurance policy.

This article aims to break down the various components of section 45 of the Insurance Act. The article will also bring to light the major issues with the implication of section 45. After doing so, a solution will be put together in detail.

Section 45 of the Insurance Act in detail

Insurance companies, in general, require you to fill out long forms asking about different details about your lifestyle. However, many individuals withhold information about certain details. This is known as a Misstatement. Insurance companies are given 3 years to prove this misstatement. The 3 years begins from the following dates:

  • The date on which the policy was insured
  • The date after which the risk began
  • Date when the renewal of the policy took place
  • Dates of the addition of riders to the policy.

The date from the above list that is more recent is considered. For example, if the revival or renewal of the policy took place most recently, then the company has three years to investigate the potential misstatement.

If there is a case of fraud, then the company receives the same 3 years for giving concrete evidence.

The section also outlines what constitutes fraud. It implies that the insured will come under question if:

  • Concealing essential information
  • Giving out false information

In addition to this, if there is evidence of a misstatement., an insurer can repudiate the policy and claims and return the premium acquired back to the former policyholder.

Section 45 and fraudulent claims

However, since Section 45 of the Insurance Act of 1938 came into being, insurance companies have been greatly affected. In 2018, the companies lost around 250 crores to false claims. These claims are primarily made after faking an insured’s death.

C.L. Baradhwaj, Vice President of Future Generali India Life Insurance, voiced his concerns regarding section 45. He claimed that the possibility of an individual concealing material facts can significantly impact the coverage that the insurance offers. He urged all proposers to state material facts that will directly impact the terms of the insurance. Baradhwaj warned that the insured cannot claim that they did not read all the questions in the proposal form at the time of signing.

Like any other law, Section 45 of the Insurance Act has loopholes too. It was created to give the family of the insured a way to be financially secure after the policyholder’s death. However, many misuse it through false information. In order to curb this fraud, it is in the best interest of the company to receive more than three years.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

Importance of The Public Liability Insurance Act 1991

Importance of the Public Liability Insurance Act 1991

The public liability insurance act 1991 was ordained to offer immediate aid to the people affected by accidents caused by any hazardous substance or incidents. In the event of the death of any person working in a company dealing with hazardous substances, direct compensation is to be given to their legal heir. However, not many people understand the full extent of this act.

This article will explore the public liability insurance act 1991 to understand its scope better.

Major Objective of the Public Liability Insurance Act 1991

The major objective of the public liability insurance act 1991 is to provide immediate relief to the injured people and victims affected by the mishaps that take place while dealing with dangerous chemicals and substances. The act is applicable to the owners of factories or industries that deal with or produce hazardous chemicals and other substances.

With the rise in industries that deal with fatal substances, the potential danger to an employee has increased. The accidents that occur due to such industries may lead to fatal injury or death of the workers as well as other people residing in the vicinity.

Various places, such as factories, malls, night clubs, etc., should avail of the coverage provided by this act to be secured against legal liabilities of any fatal incident. The public liability insurance act 1991 also covers claims for the family members of the deceased.

Reasons for Enacting the Public Liability Insurance Act 1991

One of the major reasons for legislating this act is the Bhopal Gas Tragedy. On the 3rd of December, 1984, at midnight, a chemical reaction took place at Union Carbide (India) Limited plan. This resulted in the release of a harmful gas, methyl isocyanate (MIC), from a tank within the plant.
The gas formed a cloud over the city and turned both the city and the lake into a gas chamber. Nearly 3,000 people died due to this catastrophe, and there were thousands of people who were found physically injured and hurt in various ways.

This act came into use even during the Vizag Gas Leak. In this tragedy, about 13 people were found dead because of respiratory problems caused by a chemical leak from LG Polymers India Limited. Up to Rs. 5 crores under the Public Liability Act policy was utilized to compensate the victims.

The public liability insurance act 1991 came into effect after the Bhopal Gas Tragedy to give prompt assistance to those gravely affected by the tragedy caused by dangerous industries. It helps regulate the power to request information, entry, inspection, search, and seizure. But above all, those working in industries prone to chemical accidents are protected through this Social Welfare Law.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

Pet Insurance in India: Protect Your Furry Friends

pets

Pet Insurance in India: Protect Your Furry Friends

Pets are considered a part of the family. They are given special care and love. With the rising trend of having pets, the demand for pet insurance in India is rising. The schemes provided by pet insurance companies cover veterinary expenses, protection of pets from any threat or from any third party, compensation on loss or death of a pet.

Dogs, being the most common pet, can be insured through dog insurance in India as dogs are the most common pet in India. However, this is not common knowledge among pet owners.

If you have a pet and you don’t have or know about pet insurance, this article is for you. In this article, you will learn the features and benefits of this type of insurance.

Features and Benefits of Pet Insurance in India

Pet insurance policies help insure our pets and cover expenses related to their treatments and more, making it popular insurance among pet owners. Here are a few features and benefits of pet insurance in India:

Third-party insurance

This is a form of liability insurance that protects your pet if it bites or attacks a third party or another pet or harms someone else’s property. You just need to check policy details to know what it covers.

Customized plans for all pets

Pet insurance in India covers all types of pets, including dogs, cats, and birds. However, some insurers also offer plans for horses, elephants, and other exotic and indigenous animals.

IRDA approved

Pet insurance plans like cattle insurance, dog insurance, and cat insurance are IRDA (Insurance Regulatory and Development Authority) approved. This authority acts as the regulator of the insurance industry in India and protects the interest of policyholders.

Pet Insurance for your Dogs

As 85% of the pet market in India is dominated by dogs, some insurers cover only dogs of any breed. These insurance plans are offered by both private and public insurance companies, but the former has more number of dog insurance policies.

Private pet insurance

Private pet insurance generally has insurance for dogs, covering all breeds from 8-week old to 8-year old. The coverage provided for the dog depends on the insurer. However, generally, these insurance plans cover death due to accident, poisoning, illness, third-party injury, and permanent disability.

Some plans also cover surgery costs, as well, which might become a more common feature of pet insurance in India as the market grows. Moreover, certain dog insurance policies have no waiting period like regular plans and come into effect almost immediately.

In India, pet insurance companies bear around 80% of the sum insured, and 20% of the sum goes to the pet owner.

Public pet insurance

Public pet insurers cover all pets like birds, dogs, rabbits, cats, pigs, horses, and other livestock. However, compared to private sector policies, public sector pet insurance policies do not provide coverage for all diseases. Diseases like rabies and distemper are generally not covered by public sector insurers.

People spend a lot on pets, but their treatment or routine healthcare can be expensive. Moreover, it is crucial to protect your beloved pet from any misfortune or damage.

Buying pet insurance in India does not cost more and requires only a form and veterinary health certificate, providing identification like a tattoo or nose print. Make sure you read the terms of the policy and choose one that suits your requirements the best.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I
Categories
Insurance

An Overview of Property and Casualty Insurance

An Overview of Property and Casualty Insurance

Casualties and losses come in when least expected. Hence, it is always beneficial to get insured against such incidents. Property and casualty insurance covers a range of general insurance policies. It generally provides two forms of coverage: property protection and liability insurance. In this article, we will delve into property and casualty insurance concepts and what each coverage means and entails.

Learning Property and Casualty Insurance Basics

So, what is property and casualty insurance?

Property and casualty insurance provides a number of coverage options depending on the nature of the property to be covered. It is basically created to protect your properties from theft or loss and your wealth from being drained by natural disasters or legal claims.

This type of coverage is suitable for companies and assists them in mitigating risks and liabilities that occur as a result of their activities. Other forms of coverage, such as life insurance, health insurance, and fire insurance, are not included in P&C insurance. Let us now look into property and casualty insurance in more detail.

Property Insurance

Property insurance applies to every insurance policy that protects your personal belongings. This coverage refers to personal property that has been stolen or destroyed as a result of damages like a burst pipe or fire. For example, if your property is vandalized and destroyed, you can claim coverage through a property insurance policy.

“Property” may include your home, the contents of your home, your car, valuable items, and even property owned by your company.

In simple terms, this is insurance that assists in the repair and replacement of your personal property.

Some of the different types of property insurance policies include:

  • Package or Umbrella Insurance Policy
  • Fire Policy Insurance
  • Theft Insurance Policy
  • All Risks Insurance Policy
  • Marine Cargo Insurance Policy
  • Machinery Breakdown Insurance Policy
  • Electronic Equipment Insurance Policy


Casualty Insurance

Casualty insurance is designed to provide liability coverage. This portion of your insurance will cover the expenses for your legal liability if caused damage to another party. It will usually cover expenses both in and out of court, but it will cover legal bills and any penalties you’re supposed to pay, provided it is within your mandatory coverage.

Here’s an example to understand this concept. Suppose an individual gets injured due to an accident on your property, and you are found responsible. In that case, you are liable to compensate for the loss or harm. A casualty insurance policy will cover this cost, minimizing your out-of-pocket expenses.

This is the insurance that assists you in compensating another person if you are held accountable for their losses.

Some of the different types of casualty insurance policies include:

  • Commercial General Liability Insurance Policy
  • Public Liability Insurance (Non-Industrial & Industrial) Policy
  • Workmen’s Compensation Insurance Policy
  • Pollution Legal Liability Insurance Policy
  • Umbrella Liability Policy
  • Product Liability-Indian Market Wordings Policy

The aim of insurance policies is to assist you in planning for the unexpected. Getting a plan in place ensures that you are not left with a large bill in the event of an accident. Property and casualty insurance covers you, your possessions, and your family from any kind of unforeseen event.

Related articles

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

Chat with A.I