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Health Insurance

Facultative Reinsurance: Meaning, Features and Examples

Facultative Reinsurance: Meaning, Features and Examples

Have you ever wondered what could happen if your insurance company fails? The answer to this question is understanding the concept of reinsurance. Understanding how reinsurance works can give you peace of mind. The scope of this article is to provide a brief understanding of the following:

  • What is Reinsurance
  • What is Facultative Reinsurance
  • Facultative Reinsurance Example
  • Treaty vs Facultative Reinsurance

What is Reinsurance?

There could be times where an insurance company will not be in a position to service all its claims. What can an insurance company do in such a scenario? It will enter into a reinsurance contract with a reinsurance company. The reinsurance company will take over the risk burden of the insurance company for a premium. Thus if the insurance company fails to honor the claim due to the unavailability of funds, the reinsurance company will step in and honor the claim.

What is Facultative Reinsurance?

Facultative reinsurance is when an insurance company comes into an ad-hoc reinsurance contract with a reinsurance company. It is a specialized contract with special specific terms and conditions unique to a particular project/venture.
An insurance company can come into a facultative reinsurance contract with a reinsurance company if It wants to cover something which is not covered in its regular treaty reinsurance contract.

Facultative Reinsurance Example

Suppose an insurance company wants to cover a new specialized real estate project that is not part of its treaty reinsurance contract. How will the insurer insure this new project? The answer is the insurance company will enter into a facultative reinsurance contract with a reinsurer that covers risks associated only with this project. The treaty reinsurance contract will cover the other

Treaty vs Facultative Reinsurance

A treaty reinsurance contract is a blanket reinsurance treaty that agrees to cover all of the insurance company’s risk. A treaty reinsurance contract can cover all of the risks on the books of the insurance company or risks associated with a particular sector. For instance, there could be a treaty reinsurance contract that covers all of the marine insurance-related risks of an insurance company.
Facultative reinsurance is where an insurance company is inclined to cover a specific project that is not covered under its blanker reinsurance treaty.

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Health Insurance

Domiciliary Hospitalization

Domiciliary Hospitalization

Domiciliary Hospitalization is where the medical treatment is done at home. It is also commonly known as Home Hospitalization. There are various cases where a person may prefer domiciliary Hospitalization over regular hospitalization. Certain ailments are better handled at home, rather than in the hospital. This is where Domiciliary Hospitalization can be boon.

There could be situations where the doctor states that a home environment would be better suited for the healing of the patient. In this situation, a policyholder can avail a domiciliary hospitalization cover from his insurance company.
This is could be important to know whether your health insurance policy covers domiciliary hospitalization.

This article will aim to cover the most important points on this topic, such as:

• Domiciliary hospitalization meaning
• Domiciliary hospitalization eligibility
• Coverage and exclusions under domiciliary hospitalization
• Companies that provide domiciliary hospitalization coverage
• Benefits of domiciliary hospitalization

Domiciliary Hospitalization Meaning

Let us aim to understand Domiciliary Hospitalization with an easy example. Let us say Mr. Shyam slipped and had a leg injury at his home.
He called a doctor at his home and the doctor suggested that due to the sensitive nature of his injury he not be moved out from the house. Mr. Shyam decided to get home treatment.
Mr. Shyam was lucky as his health insurance policy covered domiciliary hospitalization treatment.

Domiciliary Hospitalization Eligibility

Domiciliary Hospitalization coverage will only be considered in the following cases:

  • If the patient cannot be moved to the hospital due to the nature of the injury/illness.
  • If there was no availability of hospital bed.
  • There should be a valid reason to get home treatment

Coverage and Exclusions under Domiciliary Hospitalization

Coverage

Coverage will vary from policy to policy. You must check your health insurance policy coverage in the case of home hospitalization. That being said, most companies will cover most illnesses if you can prove that it was not possible to shift the patient to a hospital, and home treatment was the only option.

Exclusions

Some general exclusions include:

  • Hypertension
  • Arthritis
  • Diarrhoea, Dysentery
  • Diabetes Mellitus and Insipidus
  • Bronchitis
  • Chronic Nephritis
  • Epilepsy
  • Common cough and cold
  • Influenza
  • Psychosomatic Disorders
  • Tonsillitis
  • Laryngitis or Pharyngitis

Benefits of Domiciliary Hospitalization

  • Home treatment could be the ideal choice for some people during the COVID-19 pandemic
  • Certain illness’ merit home or domiciliary hospitalization
  • In certain situations the patient can recover faster at home
  • Some policies cover Ayurveda, Unani and Homeopathic treatments at home (Depends on policy to policy)

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Health Insurance

Difference between Double Insurance and Reinsurance

Difference between Double Insurance and Reinsurance

It is common to confuse Double Insurance with Reinsurance. This article aims to give you complete clarity on what both these terms mean, as well as the difference between double insurance and reinsurance.
But before we get to their difference we need to understand what each term means.

What is Double Insurance?

Double insurance is two or more insurance companies cover the same risk. This is where the insured buys two or more insurance policies from two or more insurance companies covering the same insured object.
An example of double insurance would be that an individual would buy 2 or more health insurance policies for himself. Both policies are bought from different companies.


What is Reinsurance?

Reinsurance provides insurance to insurance companies. Let us decompress this a little further. At times an insurance company insures huge projects like real estate projects, marine engineering projects, civil engineering projects, etc. These huge projects increase the risk exposure of the insurance company.
That company suspects that if there is a claim made, it may not be able to service it. So what is the solution to this issue? This is where reinsurance comes into play. The insurance company will enter into a reinsurance contract with another insurance company (generally larger than itself) and the reinsurance company will insure against any loss that the insurance company may face due to claims made.
Reinsurance basically transfers the risk from the insurance company to the reinsurance company.

Difference between Double Insurance and Reinsurance

Comparison TermReinsuranceDouble Insurance
MeaningThis is where the insurance company transfers its risk to a reinsurance company.This is where an insured takes 2 or more insurance policies with 2 or more insurance companies covering the same risk.
Risk BearingRisk is borne by the insurance companyRisk is borne by the reinsurance company
Done By WhomInsurance is done by insurance companyInsurance is done by reinsurance company
ObjectiveTo insure the insuredTo insure the insurance company

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Motor Insurance

What is OD (Own Damage) in Insurance?

What is OD (Own Damage) in Insurance?

OD (own damage) is the damage caused to the policyholder’s insured vehicle. A motor insurance policy providing OD coverage will compensate the policyholder against any damage caused to his own vehicle.
This content piece will aim to explain the concept of OD in insurance by discussing the following topics:

• What is OD Coverage in motor insurance?
• Example of OD in motor insurance
• How is OD Premium Calculated?
• OD Vs Third-Party insurance

What is OD Coverage in motor insurance?

An own damage (OD) motor insurance policy will provide coverage to the policyholder if his insured vehicle is damaged, stolen, vandalized, totaled, etc. The insurance company will either provide a cashless claim settlement or will reimburse the insured at a later date.
OD coverage is optional in India and car owners can either choose to purchase a comprehensive motor insurance policy (optional) or a third-party motor insurance policy (mandatory).
If a person has bought a comprehensive policy, he/she does not need to buy the mandatory third-party policy.

Example of OD in motor insurance

Let us assume Mr. Jayesh bought a comprehensive motor insurance policy for his new Honda City. A few months pass by and Mr. Jayesh becomes involved in a minor accident. His car’s windscreen is damaged and needs replacement. Mr. Jayesh informs the insurance company about this accident and the company reimburses him for the repair cost of the car. This is an example of OD coverage in motor insurance.

How is OD Premium Calculated?

The OD premium is calculated based on the following factors:
• Age of vehicle
• Make and model of the vehicle
• Owners age and profile
• IDV of the vehicle
• Area of the vehicle

OD Vs Third-Party insurance

OD insurance is also commonly known as comprehensive motor insurance. This is where the owner and the third-party are both covered.

Own Damage (OD)Third-Party
CoverageCovers only the owner’s own vehicle.Covers only the opposite person’s damage/loss.
Whether compulsoryNoYes. Third-party motor insurance is compulsory under the Motor Vehicles Act.
CostIt generally costs more than third-party insurance as it covers both the owner and the third-party.It is cheaper compared to comprehensive insurance.
CustomizationsCustomizations and riders can be opted under this policy.No. This is a standardized policy

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Insurance

TDS on insurance commission

TDS on insurance commission

If you are an insurance broker, you may have a question about the TDS implications on insurance commission. This article will aim to clear your doubts with clear and concise examples and illustrations.

Section 194D of the Indian I.T. Act

Section 194D of the Indian I.T. Act deals with rules and regulations about insurance commissions.
Under section 194D of the Indian Income Tax Act, an insurance company must cut 5% of the commission paid to an insurance agent at source, provided that the commission amount is more than Rs.2.50 Lakhs/year.

Example

Let us say Mr. Arun is an insurance agent with HDFC Life. Mr.Arun earned a cumulative commission of Rs.3 Lakh in F.Y. 20. Under section 194D of the I.T. Act, HDFC Life will have to deduct 5% of Rs.3 Lakh at source as TDS and then release the remaining amount to Mr.Arun. Mr.Arun can later file for a rebate with the income tax department if he so chooses.

Additional Points

There are a few other additional points that an insurance agent should be mindful about, they are:
• If an insurance agent does not provide a PAN card to the insurance company, TDS will be cut at a 20% rate.
• If an insurance company does not cut TDS at source (if the agent’s yearly income is over Rs.2.5 Lakh), it is liable to face a fine.
• If TDS is paid to a domestic company, it will be applied at 10%. For Individuals, it will be 5%.

We trust that we have cleared any lingering doubts and questions that an existing or budding insurance agent may have concerning TDS on your commissions.

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Life Insurance

List of Life Insurance Companies in India (IRDA Approved)

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List of Life Insurance Companies in India (IRDA Approved)

The insurance sector in India is regulated by the IRDA. This means that any insurance company (life insurance or general insurance) needs to be registered with the IRDA. It is important for a potential insurance buyer to ensure that the company they are dealing with is registered with the IRDA.

So, if you’re planning to purchase a life insurance policy, make sure the company is registered with the IRDA. This repository provides a list of life insurance companies in India registered with the IRDA (Updated 29-02-2021)

List of Life Insurance Companies in India (IRDA Registered)

CompanyCEO/MDNumberEmail IDSocial Media
Life Insurance Corporation of India (LIC)Mr. M. R. Kumar022 6827 6827chairman@licindia.comhttps://www.facebook.com/LICIndiaForever
https://twitter.com/licindiaforever
Max Life InsuranceMr. Prashant Tripathy0124 648 8900online@maxlifeinsurance.comhttps://www.facebook.com/maxlife/
1860 120 5577https://twitter.com/MaxLifeIns
Kotak Mahindra Life InsuranceMr. G Murlidhar1800 209 8800lifeexpert@kotak.comhttps://www.facebook.com/kotaklife/
https://twitter.com/Kotak_Life
HDFC Life InsuranceVibha Padalkar1800-266-9777buyonline@hdfclife.inhttps://www.facebook.com/HDFClife/
91 8291 890 569 (WhatsApp)https://twitter.com/HDFCLIFE
ICICI PrudentialMr. N S Kannan1860 266 7766lifeline@iciciprulife.com
https://www.facebook.com/ICICIPruLife/
https://twitter.com/ICICIPruLife
SBI Life InsuranceMr. Mahesh Kumar Sharma1800 267 9090info@sbilife.co.inhttps://www.facebook.com/Sbilifeinsurance/
https://twitter.com/SBILife
Aditya Birla SunLifeMr. Kamlesh Rao1800 270 7000care.lifeinsurance@adityabirlacapital.comhttps://www.facebook.com/abslifeinsurance/
https://twitter.com/abslifein
Bajaj Allianz Life InsuranceMr. Tarun Chugh1800-209-7272customercare@bajajallianz.co.inhttps://www.facebook.com/bajajallianzlifeinsuranceltd/
1800-209-4040websaleslife@bajajallianz.co.in
020-66026773https://twitter.com/BajajAllianzLIC
PNB MetLife InsuranceMr. Ashish Kumar Srivastava1800-425-6969indiaservice@pnbmetlife.co.inhttps://www.facebook.com/PNBMetLife/
-26502233https://twitter.com/PNBMetlife1
Exide Life InsuranceMr. Kshitij Jain1800 419 8228care@exidelife.inhttps://www.facebook.com/exidelife/
Tata AIAMr. Rishi Srivastava1-860-266-9966customercare@tataaia.comhttps://www.facebook.com/TataAIALifeInsuranceIndia/
7045669966 (WhatsApp)https://twitter.com/TataAIA_Life
Aviva Life InsuranceMr. Trevor Bull1800-103-7766customerservices@avivaindia.comhttps://www.facebook.com/AvivaIndia
complaints@avivaindia.comhttps://twitter.com/AvivaIndia
Shriram Life InsuranceMr. T.S. Krishna Murthy1800-103-7401customercare@shriramlife.inhttps://www.facebook.com/Shriramlife/
1800-103-2671https://twitter.com/shriramlifeins
Reliance Nippon Life InsuranceMr. Ashish Vohra1800 102 1010Rnlife.customerservice@relianceada.comhttps://www.facebook.com/RelianceNipponLifeInsurance/
022 4882 7000https://twitter.com/relnipponlife/
72088 52700 (WhatsApp)
Sahara India Life InsuranceMr. O.P. Srivastava18001809000sahara.life@sahara.in
Bharti AXA Life InsuranceMr. Parag Raja1800-102-4444service@bharti-axalife.comhttps://www.facebook.com/BhartiAXALife/
02248815768 (WhatsApp)https://twitter.com/bhartiaxalife
Future Generali Life InsuranceMr. Ghyanendra Nath Bajpai1800 102 2355care@futuregenerali.inhttps://www.facebook.com/FutureGenerali/
918108198633https://twitter.com/FGLifeIndia
Aegis Federal Life InsuranceMr. Vighnesh Shahane1800 209 0502support@ageasfederal.comhttps://www.facebook.com/AgeasFederal/
022 – 2302 9200grievance@ageasfederal.comhttps://twitter.com/AgeasFederal/
Aegon Life InsuranceMr. Satishwar Balakrishnan1800-209-9090customer.care@aegonlife.comhttps://www.facebook.com/AegonLifeInsurance/
https://twitter.com/aegonlife
Canara HSBC OBC Life InsuranceMr. Anuj Mathur1800-103-0003customerservice@canarahsbclife.inhttps://www.facebook.com/CanaraHSBCOBCLifeInsurance/
1800-180-0003Head.services@canarahsbclife.inhttps://twitter.com/canarahsbcobcli
9311444942 (WhatsApp)
Edelweiss Tokio Life InsuranceMr. Sumit Rai1800 212 1212care@edelweisstokio.inhttps://www.facebook.com/EdelweissTokioLife/
https://twitter.com/edelweiss_tokio
Star Union Dai-Ichi life insuranceMr. Girish Kulkarni1800 266 8833customercare@sudlife.inhttps://www.facebook.com/sudlifeinsurance/
https://twitter.com/sudlifein
India First Life InsuranceMr. R. M. Vishakha1800 209 8700customer.first@indiafirstlife.comhttps://www.facebook.com/indiafirstlife/
8828840199https://twitter.com/IndiaFirst_Life
Pramericaa Life Insurance1800 102 7070contactus@pramericalife.inhttps://www.facebook.com/PramericaLifeInsurance/
https://twitter.com/pramericalife

 

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Motor Insurance

How to check your bike insurance status

How to check your bike insurance status

Are you looking for a way to check your bike insurance status easily? This article will show you how you can check the status of your two-wheeler within in a few simple and easy to follow steps.
We understand that regularly checking your motor insurance papers are very important as driving on the roads without a valid and up-to-date insurance policy is illegal. There are 2 ways of checking your bike insurance validity:

• Check bike insurance through VAHAN
• Check bike insurance through IIB

Check bike insurance status through VAHAN

Step 1: Visit the PARIVAHAN website

Visit the website by entering https://parivahan.gov.in in your favorite web browser. You will now be at VAHAN’s homepage.

Step 2: Hover over “Online Services” and click on “Vehicle Related Services”

parivahan online services

 

Step 3: Select your state

parivahan vehicle related services page

 

Step 4: Fill in the box with your RTO details

vahan citizen services homepage

 

Step 5: Click on RC Particulars

parivahan online services RC particulars

 

Step 6: Enter your vehicle number and chassis number

 

Step 7: Check your insurance validity

Insurance validity

 

Check bike insurance status through IIB website

Step 1: Visit the IIB website

Insurance Information Bureau of India Homepage

Visit the IIB website by entering https://iib.gov.in/ in your favorite web browser.

Step 2: Click on “V SEVA” under Quick Links

IIB quick links

 

Step 3: Fill in your details

IIB VSEVA Page

You will need to fill in your name, email OD, phone number, address, vehicle registration number, accident date, captcha code and press on the submit button.

Step 4: View vehicle details

You will get a detailed summary of your vehicle details on this page, including date of purchasing insurance and date of insurance expiry.

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Health Insurance

What is no claim bonus in health insurance?

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What is No Claim Bonus in health insurance?

You must have heard about the term ‘no claim bonus’ by your insurance agent. But what is a no-claim bonus (NCB)? This article will help you in understanding the concept of a no-claim bonus with respect to health insurance. Also, to solidify this concept, this article will drive home the concept of NCB with illustrations and examples. Let us begin.

  • What is NCB in health insurance?
  • Example of NCB
  • Companies providing maximum NCB

What is NCB in health insurance?

No claim bonus (NCB) is a bonus coverage provided to the insured if the insured does not raise a claim within a stipulated amount of time. It is a reward provided to the policyholder for not raising a claim. The insurance company will provide a predetermined additional coverage to the insured as a bonus for keeping their health in check and thereby not making a claim.

Example of NCB

Let us understand the concept of NCB with a simple example. Let us assume Mr. Mangesh purchased a health insurance policy with Bajaj Allianz Health Insurance. His policy provides him with coverage of Rs 10 Lakhs along with an NCB clause. According to this clause, if Mr. Mangesh does not make a claim, each year he will get additional coverage of 10% on his basic sum assured (i.e Rs.10 Lakhs) up to a total of 50%.

Years

No Claim Bonus (NCB)

Total Coverage

1

1 Lakh

11 Lakhs

2

1 Lakh

12 Lakhs

3

1 Lakh

13 Lakhs

4

1 Lakh

14 Lakhs

5

1 Lakh

15 Lakhs

At the end of the first claim-free year, Mr. Mangesh’s total coverage will increase from Rs 10 Lakhs to Rs 11 Lakhs. In the second year, it will increase to Rs 12 Lakhs. This increment will only last till his coverage reaches Rs 15 Lakhs. In the interim, if he makes a claim, his next year’s coverage will again roll back to the initial sum assured (Rs 10 Lakhs).

Companies providing maximum NCB

Health Insurance Companies

No Claim Bonus (NCB)

Manipal Cigna

Up to 200%

Apollo Munich

Up to 100%

Max Bupa

Up to100%

Aditya Birla

Up to 100%

Care Health Insurance

Up to 100%

HDFC ERGO

Up to 50%

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Aditya Birla Health Insurance

Aditya Birla Health Insurance Customer Care

Aditya Birla Health Insurance Customer Care

Are you looking to contact an Aditya Birla Health Insurance executive? look no further. Mentioned within are all necessary customer care details of the company’s support team.

You may reach out to them via the below mentioned contact details and raise your issue or query with them.

Contact Information

ParticularsContact Details
Contact Number 1800 270 7000
Email IDcare.healthinsurance@adityabirlacapital.com
Email ID for senior citizensseniorcitizen.healthinsurance@adityabirlacapital.com
Official Websitehttps://www.adityabirlacapital.com/healthinsurance/

 

If your grievance is not addressed properly or you are not satisfied with their support, you can contact their senior support executives below:

  • Customer Care Head: carehead.healthinsurance@adityabirlacapital.com
  • Grievance Redressal Officer:  gro.healthinsurance@adityabirlacapital.com

If you are still not satisfied with their resolution you can contact the Insurance Regulatory and Development Authority of India (IRDA)

  • Toll Free Number: 155255 (or) 1800 4254 732
  • Email Id: complaints@irdai.gov.in.

You can also reach out to your nearest insurance ombudsman office for a resolution. Locate your nearest ombudsman office phone number here:  https://www.cioins.co.in/SecretaryCenterwise

 

Source: https://www.adityabirlacapital.com/healthinsurance/contact-us

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Aditya Birla Health Insurance

Aditya Birla Health Insurance Renewal

Aditya Birla Health Insurance Renewal

One needs to pay their health insurance premiums on time to experience the continuous benefits of their health plan. Premiums not paid on time can lead your health plan to lapse. Below mentioned are simple and easy to follow steps to renew your Aditya Birla insurance policy. 

Online Procedure

Step 1: Go to the official website of Aditya Birla health insurance and click on the ‘’Renew” button on the top right-hand side, then click on “Quick Renew”.

Step 2: Enter valid details such as your policy number, mobile number, and date of birth.

Step 3: You are then required to pay your premium online via debit/credit card or other various modes of payments provided.

Step 4: After making the payment you will receive a confirmation mail on your email ID along with a premium payment receipt.

Offline Procedure

You can also renew your policy by directly visiting the nearest Aditya Birla Health Insurance Branch, or by connecting with their customer care team at 1800-270-7000.

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