News Letter Headlines

IRDA hikes third-party motor premium

SUMMARY: For passenger cars below 1,000 cc, Insurance Regulatory and Development Authority has hiked third-party premium from Rs 941 to Rs 1,129. read more.....

e-Insurance

You have been enjoying the benefits of Demat account and would have experienced the ease and convenience that Demat form of holding Securities have brought to dealings in Securities Market. Now it's time to hold Insurance Policies in electronic form and experience the same ease and convenience.. read more.....

Critical Illness Insurance

When a major illness strikes, it not only means large costs for medical care but it also puts immense pressure on the family to manage their living expenses while the patient recoups. In such a situation your Critical Ilness insurance can come to your aid ...read more.....

IRDA's new guidelines

Over the past couple of years Insurance Regulatory and Authority had been driving the agenda of customer centricity in Indian life insurance industry. While the regulator has brought about several regulatory changes, life insurers have taken several steps to enhance customer focus. Regulations related to products have been undertaken not only to change product design but to also bring a positive change in sales practices.read more.....

Health Insurance

Bharti AXA offers health insurance with a range of benefits to take care of you and your family's health care needs. Our Comprehensive Health Insurance is flexible and affordable, available in 3 plans - Rs. 2 lakhs, Rs. 3 lakhs and Rs. 5 lakhs - to suit your needs and budget.read more.....

advance premium collection

Premium that has been collected in advance can only be adjusted on the due-date of premium. The Insurance Regulatory and Development Authority (Irda) on Monday modified its linked and non-linked insurance products regulations to allow advance premium collection. read more.....

NNSDL Database Management Limited (NDML) has been authorized by Insurance Regulatory and Development Authority (IRDA) to act as an Insurance Repository. You can now hold your insurance policies in electronic form with NSDL group, the way you hold your securities in Demat Account. We have named this initiative as "National Insurance-policy Repository" (NIR). NIR facilitates a proposer to hold insurance policies in electronic form in a single e-Insurance Account (eIA) and offers easy online access to these insurance policies. For this, you will have to open an eIA and the insurance policies will be credited by the Insurance Company into this eIA. You can seek credit of existing as well as new insurance policies in eIA.
What are the facilities under e-Insurace available with Kotak Life Insurance?

With the advent of the online medium, the most basic of all our needs are available easily at the click of a button. So, why not insurance? Kotak Life Insurance has introduced online life insurance plans to serve your insurance needs conveniently, quickly and without any hassle. This medium enables you to buy insurance online anytime you wish to. Not only is the process to buy insurance online easy but also completely transparent. The system is designed with a great emphasis on making your purchase extremely quick and without any hassles. All you have to do is select your choice of online life insurance policy, Calculate your premium/benefits, fill up the application form, make the payment and you have completed 4 easy steps to buy insurance online -See more at: "http://insurance.kotak.com/insurance-guide/e-insurance.php#sthash.rpUntt6L.dpuf">

The array of online insurance products include Kotak e-Term/e-Preferred Term - Online term life insurance plans In order to safeguard the financial security of your loved ones if an untoward event like death happens to you; you need to buy our online term insurance plan; Kotak e-Term/e-Preferred Term .These are pure risk online term plans that provide you with a high level of financial protection at a very economical price. The plan provides you with a Step-Up option, available only with online term plans, which enables you to increase your life cover at different events in life. Thus , as the lifestyle needs of your family increase with time, they have sufficient monetary cushion also. This online term insurance plan offers lower premiums to Non-tobacco users and females. Kotak e-Term/e-Preferred Term can be bought completely online - See more at: "http://insurance.kotak.com/insurance-guide/e-insurance.php#sthash.rpUntt6L.dpuf">

When a major illness strikes, it not only means large costs for medical care but it also puts immense pressure on the family to manage their living expenses while the patient recoups. In such a situation your Critical Ilness insurance can come to your aid by not only covering hospitalization expenses but also providing you with lump sum compensation that can help you meet your day to day expenses like child's school fees, Car and House EMIs, credit card payments etc Bharti AXA Critical Illness insurance covers you in the event you are diagnosed with any of the 20 critical illnesses covered. Upon diagnosis and a survival period of 30 days, we pay you a lump sum compensation equivalent to the sum insured of your plan - Rs. 2 lakhs, Rs. 3 lakhs or Rs. 5 lakhs. You can use this money as you wish, to cover your medical bills or maintain your family.

It is simple and easy to get Critical Illness insurance:

1. No medical checkup up to 45 years
2. Lifetime renewal
3. Tax benefit under section 80 (D)
4. 24x7 claim assistance and easy claim settlement process
5. 5% renewal discount every year maximum up to 25% on a progressive scale

Bharti AXA offers health insurance with a range of benefits to take care of you and your family's health care needs. Our Comprehensive Health Insurance is flexible and affordable, available in 3 plans - Rs. 2 lakhs, Rs. 3 lakhs and Rs. 5 lakhs - to suit your needs and budget.

Our Health plans provide you:

1. Cashless hospitalization.
2. Day-care procedures.
3. Pre and post hospitalization expenses.
4. 20 main critical illnesses covered (on selected health plans)
5. Unlimited room rent (on selected health plans)
6. Lifetime renewal.
8. Tax benefit under section 80 (D)
9. 24x7 claim assistance and easy claim settlement process
10. Cashless hospitalization at 4300+ hospitals across India
11. 5% renewal discount every year maximum up to 25% on a progressive scale
12. Dedicated Claims Handler for health insurance claims

Over the past couple of years Insurance Regulatory and Authority had been driving the agenda of customer centricity in Indian life insurance industry. While the regulator has brought about several regulatory changes, life insurers have taken several steps to enhance customer focus. Regulations related to products have been undertaken not only to change product design but to also bring a positive change in sales practices.
The new guidelines issued by The Insurance Regulatory and Development Authority (IRDA) for life insurance products specially traditional products, is an attempt at making life insurance true to its core value, more transparent and customer friendly. Most of the new guidelines require noteworthy changes in processes, systems, as well as fundamental changes to product design and offerings.
Keeping in view the quantum of work on designing a new product portfolio and training of distribution intermediaries, the regulator has also decided to postpone the implementation date of the guidelines by 3 months to January 2014.
Steps in the right direction
The guidelines follow overarching themes of providing 1. Transparency 2. Protection 3. Customer centricity 4. Long term focus
1. Transparency
In order to bring transparency, the regulator has ensured that all insurance products provide the prospective policyholder a customised benefit illustration on guaranteed and non-guaranteed benefits at gross investment returns of 4% and 8% respectively for all products. Currently, this is mandatory only for ULIPs. This benefit illustration should be signed by the customer and the agent as a part of the policy contract. This will give policyholders an indicative idea of the benefits they can expect not only at maturity, but also every year of the policy term as well.
Another step to ensure transparency in the requirement to set up a "With Profit Committee", at the board level of every insurance company. This committee will approve asset mix and expense allocated for and investment income earned on the fund. This in turn will lead to improved and more transparent corporate governance in the administration of participating or 'with profit' policies.
2. Protection Orientation
The regulator has directed that the minimum sum for all policies will now be 10 times of the annual premium for people below 45 years and above 7 times for 45 years and above. At any point the death benefit will have to be at least 105% of all premiums paid till date. Through this the regulator aims to promote life insurance for its core value of protection.
3. Customer Centricity
As per the new norms, traditional policies will now have better surrender value after the completion of 5 years. If the policyholder has to exit their policy before completion of policy tenure, he/she will be entitled to a higher surrender value especially in early part of the policy tenure. Currently, there are no preset rules. In the new regime the minimum guaranteed surrender value will be 30% of all premiums paid going up to 90% of the premiums paid in the last two policy years. Through this step the regulator has acted in the larger interests of the consumer by providing liquidity for sudden emergencies that may occur. Thus with these new regulations customer retention and need based selling becomes even more important by the day.
4. Long term focus
In order to re-emphasize the long term nature of the life insurance business the guidelines have also correlated agents' Compensation to the policy terms. Short-term policies will now have a lower commission than traditional products with a policy term of 12 years or more. In case of regular premium insurance policies, a policy with a premium paying term (PPT) of five years will limit commissions to 15% in the first year, 7.5% in the second and third year and 5% subsequently. Products with PPT of 12 years or more will have first year commissions up to 35% in case the company has completed 10 years of existence and 40% for the company in business for less than 10 years. This will incentivize intermediaries in selling long-term life insurance products espousing benefits for disciplined savers.
Conclusion
The Indian market offers significant top-line growth opportunities due to younger country demographics and working population, an increasing customer base, and regulations that maintain the development of a financially sound industry. As regulations extend further, insurers need to acclimatize their products and business models accordingly. Since time is running out, managing this large scale product portfolio transition while minimizing disruption to business continuity requires the regulator and industry players to work in tandem.
(The author is Head - Products Solutions Management, Max Life Insurance)

Premium that has been collected in advance can only be adjusted on the due-date of premium. The Insurance Regulatory and Development Authority (Irda) on Monday modified its linked and non-linked insurance products regulations to allow advance premium collection. "Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year," Irda said in a circular addressed to the CEOs of life insurance companies. However, if the advance premium is collected for the next financial year, then insurers can collect the same "for a maximum period of three months in advance of the due date of the premium", the regulator noted in the circular. The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date. Earlier, Irda had said that the premium due might be accepted 30 days before the due date. The regulator had also said that in the monthly premium payment mode, insurers could accept three months' premiums in advance only on the date of commencement of the policy
SOURCE: BUSSINESS STANDARD: March 27, 2014