Should you buy insurance from a corporate agent?
Yes, you can buy but you must check that it is not one of the 4261 corporate agents whose licence has been cancelled by IRDA, the regulator.
The following news item is an eye opener for those who have to buy the insurance.
“The Insurance Regulatory and Development Authority (IRDA) has said that as many as 4,261 corporate agents, out of the total 7,000 in the country, are not authorized to sell policies from March 31, this year.
The IRDA, which displayed the names of corporate agents that were banned, cautioned the insurance companies and general public not to transact any insurance business through them.
The list of banned agents includes HDFC Bank (General Insurance), Oswal Consultancy, India Bulls Insurance Advisors Pvt Ltd in Mumbai; Prosoft Technologies and Tangent in Bangalore; Rishab Investments and Cosmos Financial Services in Chennai; Pact Brokerage and Atluri Travels in Hyderabad.
"These corporate agencies were due for renewal on or before March 31, 2010 but have not been renewed till date. All these agency licences have been withdrawn," IRDA said in a circular on Tuesday.
According to a senior IRDA official, the policies purchased after March 31 and till date could be valid and the full implications are being worked out.
The business is likely to hit as almost all life and general insurers including Life Insurance Corporation of India engaged these agencies.“
Is it that many of the MLM companies are also affected?
Comments are invited.
Friday, June 11, 2010
Wednesday, June 9, 2010
Lodge your health insurance claim within 7 days Timeframe to Submit documents for filing Health Insurance claims reduced to 7 days from 30 days
You must lodge your health insurance claim within 7 daysTimeframe to Submit documents for filing Health Insurance claims reduced to 7 days from 30 days
You are familiar with the clause which permitted you or expected from you that your health insurance claim should be lodged within 30 days. No one noticed that this clause has been amended to 7 days because claims submitted up to 30 days were continuing to be paid.
Now, in an abrupt move, we understand that insurance companies have suddenly decided to strictly implement the 7 day condition. They have informed the TPAs to treat claims where documents are received after 7 days from the date of discharge as untenable.
You are required to follow this 7 days clause with a view to protect your interest.
We feel that there should be a joint campaign by all insurance companies offering health insurance for the information of policy holders and a separate letter should go to each and every policy holder to make them aware of this clause being implemented.It will keep the number of cases going to Consumer Forum Courts under control.We are sure Consumer Forum Courts will support the policy holders on this issue.
You are familiar with the clause which permitted you or expected from you that your health insurance claim should be lodged within 30 days. No one noticed that this clause has been amended to 7 days because claims submitted up to 30 days were continuing to be paid.
Now, in an abrupt move, we understand that insurance companies have suddenly decided to strictly implement the 7 day condition. They have informed the TPAs to treat claims where documents are received after 7 days from the date of discharge as untenable.
You are required to follow this 7 days clause with a view to protect your interest.
We feel that there should be a joint campaign by all insurance companies offering health insurance for the information of policy holders and a separate letter should go to each and every policy holder to make them aware of this clause being implemented.It will keep the number of cases going to Consumer Forum Courts under control.We are sure Consumer Forum Courts will support the policy holders on this issue.
Monday, May 31, 2010
Facts Indian Health Insurance 2010
Facts Indian Health Insurance 2010
IRDA has released statistics pertaining to Indian Health Insurance Industry for the year 2008 -09 and some of the facts are:
This is the truth. If you do not agree the do let us have your comments.
IRDA has released statistics pertaining to Indian Health Insurance Industry for the year 2008 -09 and some of the facts are:
This is the truth. If you do not agree the do let us have your comments.
Thursday, May 27, 2010
Health Insurance Policy with sum assured of Rs 50 Lakhs seems to be a favourite number of Indian Insurance Companies – Yes the time has changed
Health Insurance Policy with sum assured of Rs 50 Lakhs seems to be a favourite number of Indian Insurance Companies – Yes the time has changed
Max Bupa made the beginning in our country by coming up with Health Insurance Policy for maximum sum assured of Rs 50 Lakhs and within few weeks it has been able to sell 15 policies. This shows that there was an unfulfilled demand for such product. May be the initial success of this product has appealed so much to other insurance companies that now we hear:
•New India Assurance
•Apollo Munich
•Iffco Tokio
all of them have started working actively for coming up with similar or a competitive product. An improvement being considered by New India is that its product will not be a normal domestic product (only within India) but will also be valid for overseas treatment.
We welcome this move to upgrade the Indian customer by offering premium product to him.
We have questions before us:
(i) Under the name of Medical Tourism USA Insurance Companies are sending their patients to India which shows that Indian Health Care industry has achieved certain level of acceptance in the world and is economical also.
(ii) Under New India policy- will HNI’s of India start going to foreign countries during summer season for treatment under the policy. Will the travel expenses be also paid as part of claim? If we are charging higher premium let us charge something more and include this facility also. This is the wish of many potential customers, who talked to me in last 2 days.
(iii) Is it worth while to have a product where few hundred policies are to be issued during the year? Will these polices be handled by same TPA’s or a special team will be set up.
If you have some more questions do let us know. We will be pleased to have your comments.
Max Bupa made the beginning in our country by coming up with Health Insurance Policy for maximum sum assured of Rs 50 Lakhs and within few weeks it has been able to sell 15 policies. This shows that there was an unfulfilled demand for such product. May be the initial success of this product has appealed so much to other insurance companies that now we hear:
•New India Assurance
•Apollo Munich
•Iffco Tokio
all of them have started working actively for coming up with similar or a competitive product. An improvement being considered by New India is that its product will not be a normal domestic product (only within India) but will also be valid for overseas treatment.
We welcome this move to upgrade the Indian customer by offering premium product to him.
We have questions before us:
(i) Under the name of Medical Tourism USA Insurance Companies are sending their patients to India which shows that Indian Health Care industry has achieved certain level of acceptance in the world and is economical also.
(ii) Under New India policy- will HNI’s of India start going to foreign countries during summer season for treatment under the policy. Will the travel expenses be also paid as part of claim? If we are charging higher premium let us charge something more and include this facility also. This is the wish of many potential customers, who talked to me in last 2 days.
(iii) Is it worth while to have a product where few hundred policies are to be issued during the year? Will these polices be handled by same TPA’s or a special team will be set up.
If you have some more questions do let us know. We will be pleased to have your comments.
Monday, May 17, 2010
Portability of health insurance
As predicted by us vanilla product will be introduced by all general insurance / health insurance companies in near future as the product details are being sent to IRDA. New health insurance product to be sold by all companies will have following features:
•Max sum assured – Rs 2 Lakhs only
•Preexisting diseases will be covered after 4 years
•Max entry age will be 65 years
•No claim bonus – Reduced premium or increased sum assured will be given. Companies like Oriental will have to change their policy of not giving benefit to the customers as far as this policy is concerned.
•Indicative premium for Rs 1 Lakh – up to age 18 years will be Rs 1000, which means that we are sticking to existing rates. We can expect Rs 1400 for someone who is in the 18 -35 age bracket.
•To be introduced by all companies. We feel Max Bupa may not come out with this product. Let us see what will be the stand of Regulator (IRDA) with respect to this-will Max Bupa be asked to introduce this product ?
Let us see what is the ultimate outcome when the product is introduced?
Our suggestion :
Let all the companies come out with a joint advertising campaign –explain benefits of having health insurance. We should aim for 10 crores policies to be sold under this category. With an average policy size of Rs 2500 this should mean premium of Rs. 25000 crores.
•Max sum assured – Rs 2 Lakhs only
•Preexisting diseases will be covered after 4 years
•Max entry age will be 65 years
•No claim bonus – Reduced premium or increased sum assured will be given. Companies like Oriental will have to change their policy of not giving benefit to the customers as far as this policy is concerned.
•Indicative premium for Rs 1 Lakh – up to age 18 years will be Rs 1000, which means that we are sticking to existing rates. We can expect Rs 1400 for someone who is in the 18 -35 age bracket.
•To be introduced by all companies. We feel Max Bupa may not come out with this product. Let us see what will be the stand of Regulator (IRDA) with respect to this-will Max Bupa be asked to introduce this product ?
Let us see what is the ultimate outcome when the product is introduced?
Our suggestion :
Let all the companies come out with a joint advertising campaign –explain benefits of having health insurance. We should aim for 10 crores policies to be sold under this category. With an average policy size of Rs 2500 this should mean premium of Rs. 25000 crores.
Monday, May 10, 2010
23 Life Insurance Companies are planning to enter India.
23 Life Insurance Companies are planning to enter India.
Many life insurance companies of the worked are planning to enter India.
We under stand the list is of 23 companies and as and when we come to know about more names we will be put the same in our blog.
In addition to this following Health Insurance Companies are also planning to enter
Question before us is – where are the people to manage these companies?
We in Insurance Foundation of India feel that at least 100 Management Schools (out of 1450 operating in India ) should start MBA Insurance as a separate course during 2011 session otherwise shortage of manpower in itself will retard the growth of this industry.
Many life insurance companies of the worked are planning to enter India.
We under stand the list is of 23 companies and as and when we come to know about more names we will be put the same in our blog.
In addition to this following Health Insurance Companies are also planning to enter
Question before us is – where are the people to manage these companies?
We in Insurance Foundation of India feel that at least 100 Management Schools (out of 1450 operating in India ) should start MBA Insurance as a separate course during 2011 session otherwise shortage of manpower in itself will retard the growth of this industry.
Friday, April 30, 2010
Best policy of today may not remain the best policy after few years
Best policy of today may not remain the best policy after few years
Large number of clients contacts us to know which the best policy is so that they can buy the same. Everyone’s wish is to buy the best. One of the main parameter on which decision is taken is lowest price as on today. Our suggestion is that take broader view of the whole scenario because what is lowest today may not remain lowest after few years. Is it not affect that last year Reliance was having very low premium rates and during April 2010 they suddenly increased the rates by as high as 231%. They are now one of the highest priced one and are 10th position in a list of II. You do not change insurance company frequently therefore let us see some rates as an example,
Premium for family floater policy
(Age of head of the family 35yrs/ 45yrs- 2 Adults+ 2 Children)
Only premium can not be the basis as there are many parameters like issue of policy & ID Cards ,claims settlement, brand goodwill .
Apollo Munich & Max Bupa are 2 companies who do not put a limit on room rent @ 1% of sum assured.
In comparison of Iffco-Tokio vs Apollo Munich you save Rs. 3335 by not taking Apollo Munich as a today. Assuming a claim is lodged and hospitalization is needed for 6 days where room rent is Rs. 7000 per day. You will notice that hospital will charge Rs. 42000. Apollo Munich will pay Rs.4200 where else Iffco-Tokio will pay Rs. 3000x6=Rs.18000. You will have to pay out of your pocket Rs.24000.
At the same time you will notice Apollo Munich which is No. 7 for age 35 yrs becomes No.10. When the head of the family becomes 45 yrs, which means as age will go up Apollo Munich will increase the premium rates at a faster rate.
Large number of clients contacts us to know which the best policy is so that they can buy the same. Everyone’s wish is to buy the best. One of the main parameter on which decision is taken is lowest price as on today. Our suggestion is that take broader view of the whole scenario because what is lowest today may not remain lowest after few years. Is it not affect that last year Reliance was having very low premium rates and during April 2010 they suddenly increased the rates by as high as 231%. They are now one of the highest priced one and are 10th position in a list of II. You do not change insurance company frequently therefore let us see some rates as an example,
Premium for family floater policy
(Age of head of the family 35yrs/ 45yrs- 2 Adults+ 2 Children)
Only premium can not be the basis as there are many parameters like issue of policy & ID Cards ,claims settlement, brand goodwill .
Apollo Munich & Max Bupa are 2 companies who do not put a limit on room rent @ 1% of sum assured.
In comparison of Iffco-Tokio vs Apollo Munich you save Rs. 3335 by not taking Apollo Munich as a today. Assuming a claim is lodged and hospitalization is needed for 6 days where room rent is Rs. 7000 per day. You will notice that hospital will charge Rs. 42000. Apollo Munich will pay Rs.4200 where else Iffco-Tokio will pay Rs. 3000x6=Rs.18000. You will have to pay out of your pocket Rs.24000.
At the same time you will notice Apollo Munich which is No. 7 for age 35 yrs becomes No.10. When the head of the family becomes 45 yrs, which means as age will go up Apollo Munich will increase the premium rates at a faster rate.
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