HIV patients will be able to get health insurance policy issued
Under the present guidelines of various Insurance Companies have not been issuing Health Insurance policies to HIV patients. From time to time we had expressed that insurance policy should be issued to them, with HIV being mentioned as preexisting disease. We always felt that HIV patient can be involved in accident and may need hospitalization. He can also get some disease which has no correlation with HIV.
It is good to know that IRDA has considered this viewpoint favorably and in near future Insurance companies will start issuing policies to HIV patients with HIV being mentioned as preexisting disease.
We feel it is a good gesture of Regulator as well as Insurance Companies.
Friday, September 16, 2011
Sunday, September 11, 2011
Names of hospitals deleted from the approval list of hospitals
Names of hospitals deleted from
the approval list of hospitals.
Customers have been having
grievance that they looked at the hospital list when they decided to buy the
health insurance for first time.
After many years say 7 years when
the need arose then it is found that name of the hospital is not there. As and
when the policy holder asked insurance company about deletion of name of
hospital then no satisfactory reply was being given. In fact the stand was that
Insurance Company has the right to add or delete the name of any hospital at
any time.
(Source Times of
But good news is that CIC has
asked the insurance company (New India) to give this information.
It is a welcome step.
Monday, September 5, 2011
It is depressing to know that bribe is demanded in a hospital
It is depressing to know that bribe is demanded in a hospital
Reading of this news item (The Times of India) was a great disappointment.
Reading of this news item (The Times of India) was a great disappointment.
But why it happens? There is urgent need to establish more and more medical colleges/hospitals wish that next budget will bring some proposal which will encourage setting up of medical colleges as will as hospitals.
Be ready to pay Service Tax on health care from next budget (2012)
Be ready to pay Service Tax on health care from next budget (2012). There are clear indications that government is going to impose Service Tax on health insurance from next budget (2012) In case of health care- two options are being considered.
Option 1.
To exclude all services provided by clinical establishments with turnover under Rs.4 crores from the tax. This means that apart from your medical bill at a large private hospital you will also have to pay service tax, which could be 10% of the total amount. The implication of this will be that you should increase sum assured at least by 20% (10% to take care of Service Tax and 10% to take care of inflation).
Option 2.
To leave out hospitals, medical care, diagnostic and paramedical services but tax health check-ups and cosmetic surgery”. After the last budget, the government had deferred a tax on most healthcare facilities in the wake of public protests.
Option 1.
To exclude all services provided by clinical establishments with turnover under Rs.4 crores from the tax. This means that apart from your medical bill at a large private hospital you will also have to pay service tax, which could be 10% of the total amount. The implication of this will be that you should increase sum assured at least by 20% (10% to take care of Service Tax and 10% to take care of inflation).
Option 2.
To leave out hospitals, medical care, diagnostic and paramedical services but tax health check-ups and cosmetic surgery”. After the last budget, the government had deferred a tax on most healthcare facilities in the wake of public protests.
Monday, August 22, 2011
It is bad that only 33% vehicles were insured in India during 2010
We knew the facts that:
1. No commission is being paid to insurance intermediaries on 3rd party premium as a result they do not have any interest or motivation to sell this policy.
2. Private companies generally do not insure vehicles for 3rd party risk.
3. Customers find it is wastage of time in going to branch office of PSU’s for getting policy issued for 3rd policy or even for comprehensive policy for vehicles older than 7 years.
4. If there is break in insurance then rules are so difficult (deposit the money on the same day before 3.45 pm.Assuming th survey was done at 12.30 then you should rush to insurance company branch office to stand in the queue so that premium is deposited by 3.45 pm.When some one asked that earlier the rule was insurance to be done within 24 hours then a person laughed and said “we changed the rules to harass the customers so that they do not come to our offices to insure the vehicles.”
As a result the number of uninsured vehicles has been increasing and the statistics are;
Numbers of policies issued were 3, 74, 59,868
Additional number of policies which could have been issued 750 lakhs
Total premium earned by the industry Rs.12, 041crore
Total premium which could have been earned by the industry Rs.18000 crores (assuming some of these vehicles are old and 3 rd party cover only).
We can say about Delhi as a city or state that Police is happy if the vehicle driver does not have the policy because it gives them an opportunity to make some money on the side.
We feel all insurance companies should issue 3rd party cover. No excuse to Private Companies. No pick and chose to be allowed to them.
No vehicle should be refused insurance by any insurance company. If they refuse then they should give the reason in writing.
Let us go back to issue of policies (break in insurance) within 24 hours of survey being done.
Let us respect Motor Vehicles Act 100%
1. No commission is being paid to insurance intermediaries on 3rd party premium as a result they do not have any interest or motivation to sell this policy.
2. Private companies generally do not insure vehicles for 3rd party risk.
3. Customers find it is wastage of time in going to branch office of PSU’s for getting policy issued for 3rd policy or even for comprehensive policy for vehicles older than 7 years.
4. If there is break in insurance then rules are so difficult (deposit the money on the same day before 3.45 pm.Assuming th survey was done at 12.30 then you should rush to insurance company branch office to stand in the queue so that premium is deposited by 3.45 pm.When some one asked that earlier the rule was insurance to be done within 24 hours then a person laughed and said “we changed the rules to harass the customers so that they do not come to our offices to insure the vehicles.”
As a result the number of uninsured vehicles has been increasing and the statistics are;
Numbers of policies issued were 3, 74, 59,868
Additional number of policies which could have been issued 750 lakhs
Total premium earned by the industry Rs.12, 041crore
Total premium which could have been earned by the industry Rs.18000 crores (assuming some of these vehicles are old and 3 rd party cover only).
We can say about Delhi as a city or state that Police is happy if the vehicle driver does not have the policy because it gives them an opportunity to make some money on the side.
We feel all insurance companies should issue 3rd party cover. No excuse to Private Companies. No pick and chose to be allowed to them.
No vehicle should be refused insurance by any insurance company. If they refuse then they should give the reason in writing.
Let us go back to issue of policies (break in insurance) within 24 hours of survey being done.
Let us respect Motor Vehicles Act 100%
Sunday, August 21, 2011
Are we wasting money/energy on Training Insurance Agents?
Are we wasting money/energy on Training Insurance Agents?
We had predicted 50000 agency managers in life insurance companies will lose their jobs
On an average 20 agents /advisors/financial advisors working for life insurance companies report to 1 agency manager. We had predicted that changes in ULIP and reduction of commission to be paid to intermediaries will result in marginal agents to lose interest opt for cancellation of their license or selling life insurance they will be left with options compelling the insurance company to cancel their license.
Yes this has happened
Source Economic Times
As you will notice from this news time in the Economic Tunis licences of 10.45 lakh agents have been cancelled. It we take the following costs.
1. Recruitment / Selection
2. Advertisement for hiring agents
3. Executive / Managers time in selection / training of agents
4. Cost of logistics – office / conference Room.
We estimate it will add up to Rs.50000/ agent. This means money spent on 10.45 lakh agents resulting in the expenditure of 10.45 Lakh X 50000 = Rs.522500 Lakhs (Rs.5225 crores) has been wasted.
or Rs.52250 crores.
It is a big loss.
We had predicted 50000 agency managers in life insurance companies will lose their jobs
On an average 20 agents /advisors/financial advisors working for life insurance companies report to 1 agency manager. We had predicted that changes in ULIP and reduction of commission to be paid to intermediaries will result in marginal agents to lose interest opt for cancellation of their license or selling life insurance they will be left with options compelling the insurance company to cancel their license.
Yes this has happened
As you will notice from this news time in the Economic Tunis licences of 10.45 lakh agents have been cancelled. It we take the following costs.
1. Recruitment / Selection
2. Advertisement for hiring agents
3. Executive / Managers time in selection / training of agents
4. Cost of logistics – office / conference Room.
We estimate it will add up to Rs.50000/ agent. This means money spent on 10.45 lakh agents resulting in the expenditure of 10.45 Lakh X 50000 = Rs.522500 Lakhs (Rs.5225 crores) has been wasted.
or Rs.52250 crores.
It is a big loss.
Monday, August 15, 2011
Give with one hand –take it away by other hand
Give with one hand –take it away by other hand.
It is very common to hear this type of statement. The same thing was noticed in one of the news item according to which Apollo Munich is going to get approval for health insurance product for senior citizens of any age. This product is going to get approval of IRDA by end of August 2011.
This is one part of the story where it is giving with one hand. The cooling off period will be 1 year or 12 months. This is what we have called is taking away by other hand. We feel Cooling off period of 12 months is totally unreasonable. Which senior citizen will accept this while knowing it? This will encourage tendency for missselling.Let us avoid it .We do hope the regulator will look into this aspect.
It is very common to hear this type of statement. The same thing was noticed in one of the news item according to which Apollo Munich is going to get approval for health insurance product for senior citizens of any age. This product is going to get approval of IRDA by end of August 2011.
This is one part of the story where it is giving with one hand. The cooling off period will be 1 year or 12 months. This is what we have called is taking away by other hand. We feel Cooling off period of 12 months is totally unreasonable. Which senior citizen will accept this while knowing it? This will encourage tendency for missselling.Let us avoid it .We do hope the regulator will look into this aspect.
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