Government wishes PSU banks going to exit from Insurance, which is a non core activity.
Everyone one wants to diversify when times are good but when the times are tough there is heat to squeeze. The banks have been asked by the government to get out of non core business such as Insurance. It could be a big blow to banks if this is implemented. Some of the banks would have to exit joint venture and industry would be seriously hampered, considering the agency model for insurance is under question due to high attrition and lack of professionalism.
As per the news published in Economic Times the Government’s pre-conditions for capital infusion stems from the concern that a number of non-core banking activities, particularly life and non-life insurance activities are capital guzzlers. Banks have to infuse capital for years in these ventures since it may take several years to break even. "The government is worried that demand for capital will rise every year if banks decide to undertake these activities. As an owner, they will then be obliged to infuse more capital to sustain the bank, something they would want to avoid when the fiscal deficit is out of control," said a senior bank official from public sector bank.
If this is indeed implemented then we as a country will need new non banking players to enter the insurance business In the recent past many business houses who entered got disheartened and have been in the mode to exit. Some of these are
• Bharti Axa : Bharti
• DLF Pramerica : DLF
• Future Generali : Future group
We wonder whether 49% FDI in insurance sector will make much impact.
Monday, March 19, 2012
Few days are left for making Significant Savings in Health Insurance Premium
On April 1, 2012 the service tax on health insurance premium would increase to 12.36% from the existing rate of 10.30%. It means that you have to pay a higher premium. For example if you pay a premium of Rs. 20,000/- for the health insurance premium, this is how you will be impacted:
From the above example you can see that you will be able to save Rs 3,721 on the 2nd year premium which is equal to 16.87% whereas banks FD for the same duration would not give you more than 6%-7% returns.
Friday, March 9, 2012
Health care costs will go on going up as the price of real estate goes up in New Delhi & other Metro cities
It is interesting to see ad of Delhi Development Authority (Government body controlling land in the capital city of India- Delhi/ New Delhi) which has advertised for plots for:
Hospitals
Nursing Homes
Polyclinics
in different parts of Delhi state.
You can look at sr. no. 2 where reserve price for 6 Hectar plot is Rs.464 crores. Assuming 500 beds will be available in this hospital the fixed cost of land for every bed will be Rs.92 lakhs. To this you have to add the following costs.
Construction cost
Equipment cost
Manpower cost
You can well imagine what a patient will have to pay when he is admitted to this hospital in 2016 or 2017, when the hospital will be operational.
This leads us to conclusion that one must have Health Insurance policy to pay for those costs.
Hospitals
Nursing Homes
Polyclinics
in different parts of Delhi state.
Construction cost
Equipment cost
Manpower cost
You can well imagine what a patient will have to pay when he is admitted to this hospital in 2016 or 2017, when the hospital will be operational.
This leads us to conclusion that one must have Health Insurance policy to pay for those costs.
Take up your claim with Insurance Ombudsman- There are good chances of Success
Insurance Foundation of India has always stood by its members and helped them to get settlement of health insurance claims from insurance companies and their TPAs.
In a recent case one of our client’s claim was rejected by the Insurer on the ground that the insured was not required to be hospitalized for abdomen pain. Furthermore, they contested that the insured should not have ever gone to hospital for such pain. The claim amount for hospitalization was Rs 18,732/-.
We believe that treating doctor’s decision is important (also proved in this case). An insured person should not take any symptom related to his health lightly, however minor it may seem. In this case too, the insured followed the advice of the doctor and was hospitalized. In a recent case we have seen that a young man collapsed during the Gurgaon Marathon due to dehydration. Unfortunately, the young man died in a leading hospital in Delhi after being hospitalized for over 30 days due to complications caused as a result of dehydration.
We advised our client to take the next step as per the process i.e to approach the Insurance Ombudsman. We helped the client in presenting his case before the Ombudsman. The Insurance Ombudsman directed the Insurance Company to pay the claim amount along with interest @ 8% from the date of the claim. The Insurance Company has paid Rs. 18,958 along with the interest @ 8% i.e. Rs. 2,401 to our customer as directed by the Ombudsman.
The settlement of Rs. 18,958 has again highlighted the fact that persistence is the key. We have always maintained that if you are persistent and have professional guidance then the chances of your insurance claim being settled in your favour are more than 98%.
In a recent case one of our client’s claim was rejected by the Insurer on the ground that the insured was not required to be hospitalized for abdomen pain. Furthermore, they contested that the insured should not have ever gone to hospital for such pain. The claim amount for hospitalization was Rs 18,732/-.
We believe that treating doctor’s decision is important (also proved in this case). An insured person should not take any symptom related to his health lightly, however minor it may seem. In this case too, the insured followed the advice of the doctor and was hospitalized. In a recent case we have seen that a young man collapsed during the Gurgaon Marathon due to dehydration. Unfortunately, the young man died in a leading hospital in Delhi after being hospitalized for over 30 days due to complications caused as a result of dehydration.
We advised our client to take the next step as per the process i.e to approach the Insurance Ombudsman. We helped the client in presenting his case before the Ombudsman. The Insurance Ombudsman directed the Insurance Company to pay the claim amount along with interest @ 8% from the date of the claim. The Insurance Company has paid Rs. 18,958 along with the interest @ 8% i.e. Rs. 2,401 to our customer as directed by the Ombudsman.
The settlement of Rs. 18,958 has again highlighted the fact that persistence is the key. We have always maintained that if you are persistent and have professional guidance then the chances of your insurance claim being settled in your favour are more than 98%.
Wednesday, March 7, 2012
Have you faced inconvenience in using Health Insurance portability within the company and within the city?
We appreciate the concept of health insurance portability which was introduced by IRDA in October 2011. As a result a policy holder can shift from one insurance company to another insurance company within the city and within the country without losing the benefits accrued on the previous policy. Those who have shifted their policy in recent months are having a feeling of satisfaction. Compliments to IRDA the regulator on empowering the customer. However, in case of public sector companies such as National Insurance Company Ltd, The New India Assurance Co. Ltd, The Oriental Insurance Co. Ltd and The United India Insurance Co.Ltd. it is a practice that different branches of same insurance company have different TPAs even within the same city. As a result of that if the customer wants to shift from one branch to another branch even within the same city then hassles are being created because the data from the old branch or TPA has to be shifted to the new branch as well as new TPA. Lot of difficulty is being faced by the customers in this regard.
It is high time that PSUs come out with policy that either all branches of the company in the same city use the same TPA or instructions should be given to the TPA and data transfer should be immediate. This will result in removing hindrance in shifting from one branch to another.
When one can shift from one company to other then why not portability from one branch to another?
It is high time that PSUs come out with policy that either all branches of the company in the same city use the same TPA or instructions should be given to the TPA and data transfer should be immediate. This will result in removing hindrance in shifting from one branch to another.
When one can shift from one company to other then why not portability from one branch to another?
Is prosecution of officials of National Insurance right step?
Is prosecution of officials of National Insurance right step?
According to a news item- 3 officials of National Insurance are to be prosecuted.
Is it a right step? It can happen for those who are working for PSU’s then why not for those who are working for Private Companies? Does it curb innovation, motivation to take decisions? Is it that those who do not take any decision get promoted because their track record is clean? Your comments are invited.
According to a news item- 3 officials of National Insurance are to be prosecuted.
Wednesday, November 9, 2011
If you are persistent you will win
The health insurance claim of Sanjay (name changed) was rejected by the insurance company. Repeated attempts by the insured with insurance company at various levels were not successful. We as Insurance Brokerage Firm advised him to take up the matter with Insurance Ombudsman. The matter took some time as the office of Insurance Ombudsman is having large number of complaints or cases coming up every day. After processing the date were fixed, the case was taken up and finally the insurance company was ordered to pay the claim. We appreciate the persistence effort put in by the insured, which has brought success to him.
Outlook magazine of November 3, 2011 has carried the case of Dr Kunal Saha, a medical doctor working and residing in USA. His wife had died in Kolkatta in 1998 while undergoing treatment. Kunal was convinced that Dr. Sukumar Mukherjee, the top Kolkatta physician who first treated Anuradha, had inflicted on her a massive overdose of Depomedrol, a long acting corticosteroids that went on to play havoc with her immune system; and that the treatment that followed, involving other doctors and the Advanced Medicare Research Institute (AMRI) a reputed private hospital, had been appallingly negligent .Armed with both certainty and rage, Saha, himself, a Kolkatta trained doctor put his peers in the dock.
Saha had too traveled 50 times over 13 years to India to fight the legal battle. I admire this gentleman.
The claim of Saha was for Rs 77 crores but Supreme Court of India delivered a ruling in 2009 which vindicated his struggle. By finding the Kolkatta doctors negligent, it opened the door for compensation order to be passed.
In October 2011, National Consumer Redressal commission has ordered that three Kolkatta doctors who treated Anuradha and AMFI will have to pay Rs 1.73 crores. Net payment after deductions to Saha will be Rs 1.34 crores. According to Dr Kunal Saha the amount spent by him on legal battle has been of the order of Rs 5 crores.
The points coming up before us are;
1. We should be persistent in follow up of our case whether it is Health insurance claim against an Insurance Company or liability claim against someone, who has not performed his duty.
2. Were 3 doctors or AMFI having professional liability cover in 1998 from Insurance Company? If yes will the Insurance Company pay it?
Let us wait and watch.
Outlook magazine of November 3, 2011 has carried the case of Dr Kunal Saha, a medical doctor working and residing in USA. His wife had died in Kolkatta in 1998 while undergoing treatment. Kunal was convinced that Dr. Sukumar Mukherjee, the top Kolkatta physician who first treated Anuradha, had inflicted on her a massive overdose of Depomedrol, a long acting corticosteroids that went on to play havoc with her immune system; and that the treatment that followed, involving other doctors and the Advanced Medicare Research Institute (AMRI) a reputed private hospital, had been appallingly negligent .Armed with both certainty and rage, Saha, himself, a Kolkatta trained doctor put his peers in the dock.
The claim of Saha was for Rs 77 crores but Supreme Court of India delivered a ruling in 2009 which vindicated his struggle. By finding the Kolkatta doctors negligent, it opened the door for compensation order to be passed.
In October 2011, National Consumer Redressal commission has ordered that three Kolkatta doctors who treated Anuradha and AMFI will have to pay Rs 1.73 crores. Net payment after deductions to Saha will be Rs 1.34 crores. According to Dr Kunal Saha the amount spent by him on legal battle has been of the order of Rs 5 crores.
The points coming up before us are;
1. We should be persistent in follow up of our case whether it is Health insurance claim against an Insurance Company or liability claim against someone, who has not performed his duty.
2. Were 3 doctors or AMFI having professional liability cover in 1998 from Insurance Company? If yes will the Insurance Company pay it?
Let us wait and watch.
Subscribe to:
Posts (Atom)
