Monday, May 23, 2011

Are the financial results of our General Insurance Companies disappointing?

Are the financial results of our General Insurance Companies disappointing?

Yes, it is disappointing to see that large numbers of General Insurance Companies are incurring losses and heavy losses.
Loss figure leaves impression that claims settlement will be a delayed process and may be you will have to settle with figure of 60% or 70%.
Of claim lodged. This is because of the fact that it is important for insurance companies to pay salaries/ bills/travel expenses and then only they can think of funds availability for payment of claims?

We will be happier to see profit making and financially strong insurance companies.

Healthy long life is good- Are you prepared?

We are living longer and in few years the average age of Indian citizens will touch 75 years or may be 80 years. Are we prepared to live longer but in a healthy way? Have we planned for our health care in the coming years? Very few persons have planned for health care, the fact is that for many age related treatments like hernia, cataract, hysterectomy, knee replacement a person may have to be hospitalized.

What I find is that majority of people have left this important aspect of their life to Almightily, God, Goddess or Guruji in whom they have 100% faith.

Someone may need cataract surgery at 60 years and someone may need it at age of 65 years. If you are going to live till the age of 92 years then you will definitely need hospitalization 2 to 5 times.

The solution lies in buying good health insurance and too where you smile will get claim support with a smile. Avoid disfeatured policies with large number of sub limits/exclusion clauses.

Are the financial results disappointing?

It is a disappointing thing when we see that large insurance companies are incoming losses.

Saturday, May 21, 2011

Why you should buy Health Insurance?

1. Good health is most important thing in your life. When you need health care treatment then you must have it, otherwise the whole world seems to be worth nothing to you.

2. Health care costs are increasing due to

• Normal inflation due to increase in petrol costs, electricity costs, taxation, imposition of new levies/taxes.

• Improvement in medical technology results in availability of new equipment, which is better, more accurate in diagnosis. We have moved step by step from x-ray, digital x-ray, CAT scan, MRI, modern models of MRI. More developments will be coming.

• Development of new/better medicines due to application of Biotechnology/ genetics. As high R+D costs are involved and extensive clinical trials cost lot of time/money therefore their price is definitely on the high side in the beginning.

• Highly skilled doctors/nurses/paramedical staff is attracted by developed countries as a result of which health care providers have to increase compensation level to retain the staff.

• Real estate cost is high and is increasing.

All these points indicate/confirm that costs will go up year by year and you have to be prepared for it. We foresee health care costs to go up by 21% in next year.

Many a times I have come across person telling me- I own 3 flats in Gurgaon and if I needed will sell 1 of that to pay for my medical treatment. Reality is that it does not happen. You won’t sell one bathroom of your flat to pay for knee replacement.

You must have a good health insurance policy to take care of your needs.

Some people say that they will go to government or charitable hospital for treatment, when the need arises.

Recently I came across photograph of Safdarjung Hospital, a very famous hospital in New Delhi

The cost of treatment in this hospital may be less but due to excessive pressure to cater to large number of patients you may have to compromise on many things time you should not be surprised if you have to wait for 6 months for MRI test.

Shortage of ventilators has resulted in a stage that attendants or relatives of patients are being asked to pump manual ventilator to revive patients.

You have to make up your mind whether you will like to have good treatment in a good hospital and that too with dignity or you will like to shorten your life. Choice is yours.

Wednesday, May 11, 2011

Cheapest term insurance and highest claim rejection- A good show

Cheapest term insurance and highest claim rejection- A good show.
Extensive advertising of Aegon Religare for online issue of term insurance policy at cheapest rates has attracted attention of good number of customers.

Priya Kapoor in her article in May 9-15, 2011 issue of Economic Times wealth has given an interesting chart.

Rejection of 45% Life Insurance claims by Aegon Religare is an eye opener and needs attention of all of us. This proves what we have been saying that one should buy policy through an Insurance Brokerage Firm as they will give you professional advice and support you when it comes to lodging of claim.
Insurance Broker Firms deal with all insurance companies and are aware of what is happening in the market? Which company is following what strategy with respect to service/ claim settlement?

Bharti AXA Life Insurance Company may change hands

Bharti AXA Life Insurance Company may change hands.

There is a news going around that

“Mukesh Ambani-controlled Reliance group is planning to foray into the insurance sector, and is in negotiations with Sunil Mittal-led Bharti to buy its stake in its joint venture with Axa, a French financial group.

Our impression is that this will happen with Bharti AXA Life Insurance as well as Bharti AXA General Insurance as both Co’s are having same promoters. Let us wait and watch.

CBSE is going to explore the scope for introducing financial literacy in CBSE syllabi

CBSE is going to explore the scope for introducing financial literacy in CBSE syllabi. The committee appointed by CBSE argued that while subjects like human rights, environmental issues and disaster management have been included in the school curriculum, financial literacy is yet to be included in the school and college curriculum and thus has decided to explore its introduction in CBSE. Insurance is definitely going to be a major part of this course.

We in IFI have been pursing this as one of the project.

“Introduction of Insurance as a subject in Secondary Schools all over the country.

Our representations to the following;
Minister HR, Govt of India (Mr. Kapil Sibal)
Chief Minister, Delhi (Mrs. Shiela Dikshit)
Director of Education, Delhi
+Many others have resulted in building up of public opinion in favor of this decision.

Millions of students passing out of our schools will be in a position to appreciate the importance of insurance.

The contribution of IFI(Insurance Foundation of India) needs appreciation.