Two-wheeler insurance policies to get cheaper, easier to buy

Comprehensive two-wheeler insurance policies would soon get cheaper once policies with three-year validity come into effect. Large insurance companies such as ICICI Lombard and Tata AIG General Insurance, apart from government-owned companies, are planning to launch policies with riders for customers.

To enable long-term motor insurance for two-wheelers, the Insurance Regulatory and Development Authority (Irda) has introduced a long-term motor third-party insurance policy for two-wheelers with a three-year term.

Irda said the total premium charged for the third-party coverage would be three times the annual third-party premium for two-wheelers as decided by the regulator. Motor third-party premium is regulated by Irda and the regulator brings out revised rates for these policies every year based on the claims experience. Third-party motor insurance is mandatory in India.

The insurance regulator also said that the premium would not be revised upwards or downwards during the period of the policy. According to insurance industry executives, two-wheeler owners would opt for these, since there would not be any premium fluctuations for the three-year term unlike one-year policies where the premium would be revised every year.

Sector officials said the firms would save costs by not having to renew policies every year. This, they said, would be passed on to customers in the form of discounts on the ‘own damage’ front. Customers would also get an option to stay with their one-year policy or opt for a three-year policy.

Third-party two wheeler insurance includes two parts, own damage that protects the driver/owner from accidents and third-party cover that covers liability from third-party accidents. Third-party cover is mandatory, while own damage is optional.

General insurance companies have already planned to launch products. Madhukar Sinha, national head (personal lines) at Tata AIG General Insurance, said his company would file a product in tandem with the Irda guidelines.

He added add-ons could be offered with the policies, subject to Irda approvals.

"With respect to the pricing of the product, we are analysing the past trends for a suitable pricing mechanism."

From April 1, 2014, third-party premiums in the two-wheeler category were raised by 9-10 per cent, compared with the proposed 1-45 per cent across segments - sub-75cc, 75-150cc, 150-350cc, and more than 350cc.

Sanjay Datta, head of underwriting and claims at ICICI Lombard, had earlier said the insurer would launch a motor third-party policy for two-wheelers after filing the product with Irda. Thereafter, the company would file a comprehensive two-wheeler plan, he added.

Irda also said that the entire premium would have to be paid in one installment and insurers would not be able to cancel the standalone third-party cover in any circumstances except for ‘total loss’. In case of cancellation of policy under total loss, premiums for the full unexpired years would be refunded. Non-life companies wanting to introduce these policies will have to submit a letter of intent to Irda.

According to the regulator, since there is also a need to have long-term comprehensive cover including own damage and third-party covers, insurers can also file three-year term comprehensive policy for two-wheelers. While the ‘own-damage’ motor segment covers losses to self during accidents, motor third-party covers liability to a third-party caused by a vehicle owner during an accident.

Source: https://insurancegeneralindia.wordpress.com/2015/06/30/two-wheeler-insurance-policies-to-get-cheaper-easier-to-buy/

Why do young drivers need more insurance cover?

A Car culture is youth culture. It’s exciting to see how teens cruise in their dream machines showing off their lavish lifestyle often being gifted by the higher income parents of the society. It’s natural that youth driving is associated to fun, pleasure, race and meeting the technology pace. So where there is haste there are undeliberate mistakes or unexpected problems putting them into bad times of their lives. Therefore it becomes imperative that the youth stays protect with a suitable car insurance which will take care of these uncertain problems being struck due to any mishap or crisis.

Finding affordable insurance for a young person is often a daunting task, because insurers usually charge higher car insurance premiums for younger, less experienced drivers. Again the carefree attitude and inexperience comes into pictures for these higher premiums. However, there are some initiatives that you can take to buy lower cost car insurance without giving up great coverage, including breakdown cover. Besides, with the emergence of internet, it is now easy to find out the most suitable insurance quotes. The authentic websites help you get insurance quotes from reputable insurance companies and ensure that you get the best deal possible. Online sites are a great place to start as they help you easily to compare the cost of insurance and also provide you variety of options to choose as per your requirements.

The articles take through some tips for young drivers to bank upon a good and low cost car insurance coverage.

The simplest way to get low cost insurance for a young person is to maintain a clean driving record. Always drive safely and responsibly and staying with the posted speed limits. Avoiding accidents helps build trust in the insurer that you are a good risk; they will reward you by issuing you a lesser car insurance premium. Never drive under the influence of alcohol or drugs. You’re at risk of making horrible accidents and secondly it shows your carelessness towards your car thereby raising the premiums.

The type of vehicle you drive affects the cost of your insurance premium. Expensive cars usually cost more to insure because they have costly parts and expensive repair bills. A young person can get good insurance simply by driving a modest vehicle with many safety features incorporated pre hand in the car.

Learn to earn a good credit rating. Many young people can get credit cards on their name, pay their timely bill and maintain good reputation and credit ratings. This helps you to get a better car insurance based on your credit history and relation with the banks. Establishing credit will help you in other aspects of your life, too, such as renting an apartment, buying a house or being approved for other major purchases.

The best way to master the skills of driving is by enrolling yourself to driving school. You can usually register for these classes at your local area driving schools or get trained under an expert person. Taking a driving class proves the insurer that you are serious about safe driving. This builds a trust in your insurer and they offer you comprehensive car insurance. One of the ways you get lower rates insurance is by being a secondary driver on your parents’ insurance policy. Most insurers offer lower rates for young drivers who remain on their parents’ insurance policy.

Source: https://insurancegeneralindia.wordpress.com/2015/06/29/why-do-young-drivers-need-more-insurance-cover/

75% of 2-wheelers have no insurance

If you get hit by a two-wheeler, there is little chance of getting compensation. That's because nearly 75% of two-wheelers in India run without insurance, putting vulnerable road-users like pedestrians and cyclists at risk.

The revelation, made by Insurance Regulatory Development Authority (IRDA), has prompted a Supreme Court-appointed committee on road safety to ask the agency and the transport ministry to work out a protocol for identifying such vehicles within three months and submit a report.

"IRDA representatives told us early this month that most two wheelers either have no insurance or their insurance has lapsed. Most of the owners don't renew them since there is little enforcement," said committee chairman Justice (retd) K S Radhakrishnan.

According to rough estimates, two-wheelers have a formidable presence on roads, constituting 70% of all vehicles in the country.

Around 82% of vehicles in India are privately owned and a majority of these are two-wheelers. In recent years, the number of two-wheelers has grown exponentially in rural areas where Two Wheeler Insurance papers are seldom checked by the enforcement agencies.

"Running an uninsured vehicle should be treated as a criminal act and there should be harshest of punishment since such people cannot play with the lives of others. The vehicle owner has the liability to pay the compensation for any accident. But in case he doesn't have the capacity to pay compensation, the victim becomes helpless," said S P Singh of IFTRT, a Delhi-based transport think tank.

A road transport ministry official said they had flagged this issue to IRDA about two years back and had asked it to integrate data of vehicles without third party insurance. "A couple of months back, we asked National Informatics Centre (NIC) to populate the state-wise data of such vehicles. Once it's prepared, we will send them to states so that their law enforcement agencies can take action against such offenders," he said.

Moreover, to put check on such offenders, the Road Safety and Transport Bill proposes very high penalty- impounding of uninsured vehicle and imprisonment of its owner.

Giving details of directions that the SC-appointed panel has issued to state governments, Justice Radhakrishnan said they have been asked to ban sale of alcohol along the national and state highways. "There should not even be a signage on the highway indicating location of such shops. We have asked them to take concrete action on dozens of issues by June-end. If they fail to comply, we will submit the details to SC.

Source: https://insurancegeneralindia.wordpress.com/2015/06/26/75-of-2-wheelers-have-no-insurance/

India’s insurance reform will benefit insurers and society

One major change was implementing the Indian Insurance Act, first proposed by the previous government.

The Act enables global reinsurers to enter as 100 per cent owned branches and increases overall foreign direct investment (FDI) in the insurance industry from the current limit of 26 per cent to 49 per cent. While there are many aspects of insurance, the most significant opportunity not only for insurers but also for Indian society, is the health insurance sector.

India is one of the fastest growing health insurance markets in the world. It has grown rapidly since the industry opened to private and foreign players in 1999 with the establishment of the Insurance Regulatory Developments Authority. In 2014, the health insurance market grew to $2.7bn from just $150m in 2004. It is on track to hit $8bn by 2020.

There are a number of factors driving this growth.

From a workforce perspective, just 10 per cent of India’s 300m working population work within formal sectors such as government, the public sector or in large private companies, which often offer health insurance perks. The rest work in the informal sectors, meaning they are self-employed or working in family businesses and, therefore, without corporate health insurance cover.

It is this end of the market that is most dependent on financial security during ill health. Yet, in the absence of health insurance plans, many are liable for medical bills and loss of potential income during treatment.

Demographically, the population boom, rising life expectancy and increased incidences of lifestyle-related diseases means that total healthcare expenditure is growing rapidly. It is expected to rise from $70bn to $280bn by 2020.

Despite this, there is a low spend per capita compared with countries where healthcare is largely funded by the government, meaning that some 62 per cent of total expenditure on health is paid for out of pocket.

India has one of the lowest penetration rates of pre-paid health coverage and medical insurance in the world. This is due to its geographical size, the capital required to invest in developing the distribution network and the current lack of focus from insurers in the individual health insurance sector.

The limitation on foreign investment rules in insurance did not give much incentive for a lot of foreign experienced players to participate in this market. There are just five standalone health insurance companies and 17 private sector insurance companies offering health insurance. So there is low consumer choice, coverage and competition. Compare this with the UK, which has 911 general insurers. India itself had over 100 players in general insurance before the market was nationalised in 1972.

Active foreign participation is critical for the sector, bringing better standards and driving competition, with better quality products, customer coverage and choice. The increase in the FDI limit will create significant opportunities for foreign players to enter the market through joint ventures, mergers or acquisitions.

Yet there are some significant challenges that remain, such as finding the right acquisition target or a partner with the right balance of local knowledge and cultural compatibility in the boardroom between the two organisations. Successful firms will be those that are comfortable with local regulatory requirements and have working knowledge of India’s business environment.

Modi’s government has promised to revamp India’s healthcare sector and make services more affordable and accessible for all walks of society. With the doors opening to India’s insurance industry, the health insurance sector will play an increasingly important role in delivering this commitment to its citizens from all walks of life.

Source:  http://insurancegeneralindia.tumblr.com/post/122318481099/indias-insurance-reform-will-benefit-insurers-and

India’s insurance reform will benefit insurers and society

One major change was implementing the Indian Insurance Act, first proposed by the previous government.

The Act enables global reinsurers to enter as 100 per cent owned branches and increases overall foreign direct investment (FDI) in the insurance industry from the current limit of 26 per cent to 49 per cent. While there are many aspects of insurance, the most significant opportunity not only for insurers but also for Indian society, is the health insurance sector.

India is one of the fastest growing health insurance markets in the world. It has grown rapidly since the industry opened to private and foreign players in 1999 with the establishment of the Insurance Regulatory Developments Authority. In 2014, the health insurance market grew to $2.7bn from just $150m in 2004. It is on track to hit $8bn by 2020.

There are a number of factors driving this growth.

From a workforce perspective, just 10 per cent of India’s 300m working population work within formal sectors such as government, the public sector or in large private companies, which often offer health insurance perks. The rest work in the informal sectors, meaning they are self-employed or working in family businesses and, therefore, without corporate health insurance cover.

It is this end of the market that is most dependent on financial security during ill health. Yet, in the absence of health insurance plans, many are liable for medical bills and loss of potential income during treatment.

Demographically, the population boom, rising life expectancy and increased incidences of lifestyle-related diseases means that total healthcare expenditure is growing rapidly. It is expected to rise from $70bn to $280bn by 2020.

Despite this, there is a low spend per capita compared with countries where healthcare is largely funded by the government, meaning that some 62 per cent of total expenditure on health is paid for out of pocket.

India has one of the lowest penetration rates of pre-paid health coverage and medical insurance in the world. This is due to its geographical size, the capital required to invest in developing the distribution network and the current lack of focus from insurers in the individual health insurance sector.

The limitation on foreign investment rules in insurance did not give much incentive for a lot of foreign experienced players to participate in this market. There are just five standalone health insurance companies and 17 private sector insurance companies offering health insurance. So there is low consumer choice, coverage and competition. Compare this with the UK, which has 911 general insurers. India itself had over 100 players in general insurance before the market was nationalised in 1972.

Active foreign participation is critical for the sector, bringing better standards and driving competition, with better quality products, customer coverage and choice. The increase in the FDI limit will create significant opportunities for foreign players to enter the market through joint ventures, mergers or acquisitions.

Yet there are some significant challenges that remain, such as finding the right acquisition target or a partner with the right balance of local knowledge and cultural compatibility in the boardroom between the two organisations. Successful firms will be those that are comfortable with local regulatory requirements and have working knowledge of India’s business environment.

Modi’s government has promised to revamp India’s healthcare sector and make services more affordable and accessible for all walks of society. With the doors opening to India’s insurance industry, the health insurance sector will play an increasingly important role in delivering this commitment to its citizens from all walks of life.

Source:  http://insurancegeneralindia.tumblr.com/post/122318481099/indias-insurance-reform-will-benefit-insurers-and

Are you true towards your health policy?

Due to increasing medical costs, complex treatment procedures and growing risk for healthy life due to rising pollution, extreme weather conditions etc. it has become imperative to buy a suitable health insurance plan to secure your present and future health issues. Although it has become a necessity most of the time adequate care is not taken while purchasing a health policy in India. At times, insurance claims get disapproved because the insured person fails to offer all necessary details, many a times due to ignorance or at times purposely because of the fear that it might be rejected by the company for them.

Let’s understand that insurance business is based on the principles of utmost faith between the purchasing party and the insurance company. It means if person is applying for a health insurance policy, then he or she is required to mention all his or her occupation and lifestyle related information as well as any health issues you and your family members may have suffered. Many times people hide various addictions or hereditary disease due to embarrassment but it’s totally wrong. The more transparent you stay in this sector the better coverage you’ll be given on your health.

While purchasing an insurance coverage just understanding the clauses mentioned in a plan are not enough, you also have to know its span of coverage. Always fill the application form by yourself instead of telling your insurance agent, this will help you understand the minute details, clauses, coverages, policy structure, fees and charges associated to it.

Insurance is after all a commitment between the purchasing party and the company, so just signing and sitting back won’t be sufficient. Understand that once you sign the form means you declaring that you’ll abide the rules and agreed with all the clauses. So, it becomes very important that you read the documents calmly and carefully.

Your information and declaration are basis on which the health insurance companies will customize your health plan, evaluate risks and estimate the premium to insure that risk. At the time of claims, insurance companies in India checks the authenticity of these declarations.

The article takes you through some important information that must be mentioned in the application to avoid claim rejection:

Personal Health

Addictive substances like alcohol and tobacco affect health adversely. If you ever have such kinds of addiction share it immediately with the company. The premium amount, plan and extension call will be based on frequency, consumption type, the duration for which person has been addicted and the quantity consumed.

Medical History

If you have gone through any kind of operation or treatment give proper information in your application form.

Family History

Customers should know that medical history of you and your family is taken into consideration by the insurer while giving coverage to them. Some serious illness of any immediate family member could make insurer wary the policy plan which might be a hereditary disorder. And if come to known later then there are chances that they might not be taken care off.

Occupation

One of the most important factors to determine the health insurance policy is occupational risk. Where you work, what kind of shift pattern, what kind of work everything helps insurers to evaluate risk of accident and wellness. People who are doing sedentary jobs very much open to cardiovascular diseases. Work nature therefore becomes important for assessment of risk in health insurance sector.

Source: https://insurancegeneralindia.wordpress.com/2015/06/23/are-you-true-towards-your-health-policy/

How to easily claim your home insurance policy?

A house is the most precious possession any individual has which is built over the years of hard work, dedication, focused dream and sentiments. In today’s uncertain times, it has become imperative to buy a suitable home insurance policy that will safeguard your living and will offer sufficient cover to build a new one in case of any disasters calamities or mishaps. It is designed to anchor your pockets from shedding out that extra money in case of any emergency like fire or burglary etc. Getting a home insurance for your priceless dream often involves long term investment and financial obligation. Besides what really worries most customers is the claiming process during any kind of disaster or manmade mishaps like stealing, or fire or damages. It sounds a bit stressful especially while your turn to file a claim.

The articles will give your some easy tips to make your claim process much relax and hassle-free especially when you’re in the state of depression due to the damages caused to your house.

Just buying a policy and storing the papers in your locker, sipping around a coffee with friends and family won’t work. Once you buy the policy read carefully the fine print on your policy that details the inclusions and exclusions and clearly defines what can be claimed for and what cannot. You should be aware what damages your policy covers and till what extent. There is no point in claiming for things your policy doesn’t cover.

Store your bills and documents safely and most important at the place of your convenience which you remember the most. It is advisable you can keep duplicate copies at your offices or place of work just in case the house comes down to ashes and you’re unable to find anything from it. Technology is always at your doorstep. If unable to stock any evidence, you can click pictures of your valuables and their purchase documents with serial numbers and save them online in a cloud based service like Dropbox etc. Don’t forget to mention the date of purchase and value at the time of purchase. When you purchase a home insurance policy, create a list of all your key possessions.

Make a habit of creating a written note of all your household goods from jewelry to electronic equipment on an annual basis. Once the list is ready contact your insurance provider and updated the company records with your valuable belongings and possessions so that when you present your policy they are in sync with your property value, belongings and possessions.

You can fill the claim form online and request the customer service department for the same. Do enter the appropriate details for easy evaluation of claim with correct contact details. Take your time, sit calmly and fill out the claim form carefully. Ensure that you don’t make any silly errors that will lead to delay in your claim process.

Stay in touch with the insurance company one you make your claim. Evaluate the amount that you receive as per the agreements excluding the service deductions. Whether your house is affected by fire, flood, terrorism or burglary, home insurance is a ray of new hope which revitalizes your dreams to rebuild it brick by brick.

Source: http://homeinsuranceindia.tumblr.com/post/122145291107/how-to-easily-claim-your-home-insurance-policy

Health insurance scheme to be rolled out by this year’s end

Health insurance scheme for all, is likely to be rolled out in different phases by the end of this year. Health minister Harsh Vardhan said on Monday that the details on health facilities to be covered in the scheme have been discussed at the ministry level and also the Prime Minister's Office (PMO). 

"The health insurance scheme, which will be a part of the Universal Health Assurance Scheme, will be the world's largest public health insurance programme," the minister said. He was briefing the media to list the achievement of his ministry in the first 100 days. 

He said that the new insurance scheme would be free for those below the poverty line and the premium for others would also be low. "At present, health insurance touches about 25 percent of population. We will spread the population of the insured rapidly, resulting in sharp fall in premium rates and many consumer benefits," the health minster added. 

He said that an autonomous UHAM agency will be formed to ensure above-board operations and genuine protection of the insured. 

The health ministry had set up an expert group to prepare the roadmap for the universal health mission, Harsh Vardhan said adding that the expert group submitted its report within eight weeks of its formation, which is right now under the consideration of the health ministry. 

Asserting that his ministry was focussed on improving the health infrastructure in the country, the minister said that he was in favour of the decisions taken by the previous UPA government to introduce rural cadre of doctors who would serve at primary health centres. 

"This scheme has not been shelved. If any state government wants to run this, they are free to do so," he said. The health minister said that he was trying to prevail upon the state governments to persuade their doctors towards rational use of antibiotics. He said: "If good quality generic drugs are available, then they should be used." 

Harsh Vardhan also said that he was in favour of a single National Eligibility Test (NET) for medical entrance exams in the country. "Unfortunately this was rejected by the Supreme Court. We have filed a review petition and are monitoring it," he added. 

Three new bills to regulate health research and facilitate clinical practices in areas like surrogacy and new systems of medicine have been finalised, Vardhan said. 

He said radical transformation is required in the functioning of regulatory bodies like the medical and the dental councils of India. He said: "We are studying and discussing their structure. There will be radical change and transformation in their structure."

Source: https://insurancegeneralindia.wordpress.com/2015/06/20/health-insurance-scheme-to-be-rolled-out-by-this-years-end/

Universal Health Insurance in India: A way to go forward

Rudolf Virchow a German pathologist, public health activist and politician stated in 1849 that Medicine is a social science and politics is nothing else but medicine on a large scale. As we know now, health is not just about diagnosing ailments, hospitals and social services; it is an issue of social justice.

Getting good health care is not a privilege; it is considered a fundamental right. A humane society must be able to provide basic health access to its citizens irrespective of their paying capacity.

All across the world, public seeks health care either through a government facility or private sector or a combination. Socialized medicine (state medicine) is a term used for a health care delivery system wherein government takes up the responsibility of providing health care to its citizens at tax payers’ cost. This is also called Public –funded health care. The latter can be largely delivered in 2 ways: One, where the government takes up the charge of providing health care by directly administering clinics, hospitals and other facilities. Cuba is a classic example in modern times. The communist country has government-run facilities. There is no private medical sector in Cuba.
 The second method is provision of health care through health insurance. Canada is a classic example where government ensures health insurance for everyone and patients can go to a government or a private facility. In last 6 decades, India has struggled to make progress in improving health access for its people. Healthcare financing in India has been poor, it spends just 4 percent of its national budget on health. Notwithstanding its burgeoning population, vast geographical area, illiteracy rate and poverty, Indian government has been able to take health care to rural populace through sub-centers, primary health centers, and community health centers. At the same time, private medical sector has also developed significantly. However, unique challenges still remain. Thus, it is obvious that government of India remains committed to universal health access for its citizens.India is signatory to W.H.O.’s Alma Ata (1978) convention of “Health for All by 2000 A.D.” and subsequent Millennium Development Goals (MDGs) as envisioned by W.H.O. in the year 2000. Indian central and state governments have so far chiefly focused on owning and administering their own health care delivery system. However, government-run dispensaries and hospitals and health programs have delivered sub-optimal results. The public perception about governmental hospitals is also poor. One alternative which has remained largely unexploited is providing health coverage via health insurance.

The government rather than necessarily running its own health facilities may consider providing health insurance to its citizens. Time has come that India catches up with this alternative model of allocating resources and funding to its public health programs. When Mr. Narendra Modi took over as Prime Minister last year, he envisioned health insurance for everyone. His ambitious National Health Assurance Mission (NHAM) is likely to be launched in coming days. This will bring much needed promise to the evolution of health insurance model in India.To be rolled out in phases, it may take a decade before the scheme can be actually offered to everyone. National Health Assurance Mission (NHAM) is one example of Government-sponsored Health Insurance schemes (GSHISs). The Congress regimen in 2008 had launched an ambitious Rastriya Swasthya Bima Yojna (RSBY). It focuses on providing inpatient coverage to families living Below Poverty Line (BPL). With a mere registration fee of Rs. 30, RSBY provides cash-less health insurance to BPL families up to Rs. 30,000. The entire premium is paid by the state (25%) and central (75%) governments. With the introduction of NHAM, RSBY will be gradually merged into NHAM.

Government-sponsored Health Insurance schemes (GSHISs) are not new to India, but surely the evolution has been slow. Employees’ State Insurance Scheme (ESIS), Central Government Health Scheme (CGHS) schemes are in vogue since decades. ‘Mediclaim’ was a private voluntary health scheme launched in 1986 by government insurance companies. 

In the last decade, a few states have successfully launched health insurance schemes: AarogyaSri (Andhra Pradesh), Vajpayee Arogyashri (Karnatka), the Chief Minister Comprehensive Health Insurance (Tamil Nadu) and RSBY Plus (Himachal Pradesh).The most crucial advantage of government sponsored health schemes is that they are primarily targeted at poorer people, thus enabling a bottom up approach for health for all. Compared to USA where 75 % of people have health insurance, the most common mode of payment for medical services in India is still ‘out of pocket’. Thus, there is ample scope for health insurance in India. With government’s push for universal health coverage, this market is likely to grow in coming years.

Government sponsored Health insurance is likely to be the dominant theme, but private insurance companies can also play a crucial role. Not only they will bring in the much needed investment, their entry will bring better practices, competition and a global insight. Health insurance is currently limited to indoor treatment. There is a need of coverage being extended to outpatient treatment and procedures too. Health Insurance is not without challenges in India.

In our country, there is already a high level of medical malpractice. The unfettered continuation of such unethical practices may bleed health insurance schemes. Then there is lack of standardization of medical treatment regimens and practices in India, creating challenges for the insurance companies when it comes to reimbursements. Medicine cannot just continue as a private matter, it must evolve into a social institution wherein it can serve the basic needs of the society. Universal health assurance hopefully will accelerate the process for India in the direction. Source: http://indianexpress.com/article/blogs/universal-health-insurance-in-india-a-way-to-go-forward/2/