Apollo Munich Optima Restore: A Mediclaim product with a difference

Apollo Munich has launched Optima Restore, a mediclaim with innovative features of restoring sum insured during policy year and giving 50% no-claim-bonus increase in sum insured for couple of years. Will this optimal product restore faith in hapless mediclaim insured?

Apollo Munich Optima Restore takes care of couple of key customer needs. Customers fear exhausting the sum insured (SI) during the policy year and hoping there would not be any more hospitalisation during the remaining policy year, as there isn’t any more insurance until the new policy year. Optima Restore will give additional SI (equal to base SI) without additional premium or paper-work. The only caveat is that the additional SI can be used only for new illnesses. This is applicable for individual and family floater products which can be a boon to customers. E.g. Individual or family floater of Rs3 lakh SI can potentially give Rs6 lakh coverage in a year for the individual or family without additional premium (if Rs3 lakh is exhausted in the policy year), as long as the additional coverage is used for new illnesses.

The other concern customers have is that no-claim-bonus (NCB) usually gives only 5% additional SI subject to maximum of 25% in most mediclaim products. Apollo Munich is offering 50% increase in SI for NCB at no extra premium, subject to maximum of two years. This means if there are no claims in couple of years, your SI can double without any premium for additional SI. The only catch is that if there is claim, your SI drops down to the previous policy year, but you are guaranteed base SI. E.g. Individual or family floater of Rs3 lakh SI will increase to Rs4.5 lakh SI next year if there is no claim. If there is another year of no claims, the SI will increase to Rs6 lakh, but you will pay premium on only Rs3 lakh SI. If there is claim in year, the SI falls to Rs4.5 SI. If there is another year with claim, the SI goes down to Rs3 lakh, but it will not go below Rs3 lakh. If there are claim-free years again, there is potential to increase SI by 50% for couple of years.

The best feature is that the restore feature of SI and NCB multiplier work together. E.g. Individual or family floater of Rs3 lakh SI will increase to Rs6 lakh SI in a couple of years with no claim. If for some reason, Rs6 lakh SI is exhausted in the policy year, the product will give additional Rs3 lakh (base SI) coverage for new illnesses. It means you can be covered for Rs9 lakh during that policy year by paying premium of Rs3 lakh SI.

 
The product offers SI of Rs3, 5, 10 and 15 lakh. As expected, the product pricing is on higher side, but it is still a good deal. The product offers no claims based loading and hence the premium is same for same age group, which is an additional advantage especially for those not in best of health. The maximum entry age is 65 years, but the product will offer life-long renewal.

The company is confident of not running into losses with the product offering, as it is based on 17 months of intensive research. The product is structured to give incentive to not lodge a claim. The company purports to have mopped up Rs1 crore premium in the last 15 days with a soft-launch of this product.

In the past, Reliance General HealthWise had run into trouble by giving cheap mediclaim and then running into huge losses which even compelled Insurance Regulatory and Development Authority (IRDA) to approve 500% jump in premium after the company kept the premiums artificially low for three years.

 

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    COMMENTS

    Ashima Gill Iqbal

    2 years ago

    I have many complaints but don't know to higher authority person is there to whom I can complaint

    Ashima Gill Iqbal

    2 years ago

    It's a useless policy just making fool of people

    vinod

    7 years ago

    apollo munich health insurance, india should not be trusted. they have duped and taken us, sr. citizen, for aride. they have refused to reimberse charges as promised by their medical centre and manager. only 5 medical tests were done on us but apollo munich health insurance has given us reports for 19 tests. where did they get reports for 14 tests when they were not done on us? do not

    Kshitij Hunari

    8 years ago

    Apollo Munich defines the term Unbelievable with its new product Optima restore. But, play the Unbelievable contest and experience the truly unbelievable!

    hemant

    8 years ago

    the product is very good with one of the best features available in the market. but one also needs to look at the long term prospective of premium increase with reference claims which will definitely increase over the years. as the age progresses beyond 55 yrs, with medical inflation the rise in premium which can be between 15 to 30% every 4 years is definite. it is advisable to go with PSU for premium consistency as they do not come with upgraded features in the same product and the fear of raising premium's every 4 years is very rare

    Sundaram

    8 years ago

    Thanks,Raj,for this v.useful info.Indeed this is truly innovative in the Indian context.One problem with Apollo is that they do not have in-house administration of claims(they operate thro' TPAs, I understand,which can be cumbersome)."No loading" for claims is also a favourable aspect.But the fear is that they may substantially jack up the premiums after a couple of years leaving the insured high and dry.

    REPLY

    raj

    In Reply to Sundaram 8 years ago

    premium rise is given due to medical inflation. How much will depend on product performance. Reliance did increase by 500% and IRDA allowed them to do it.

    HDFC Life Click2Protect—an online term life insurance @50% discount

    HDFC Life online term life insurance has premium rates 50% of its offline version, to make it competitive in the market. The online term life insurance market is heating up with more players entering the fray and existing ones planning to take the pricing further down. Is it a race to the bottom?

    HDFC Life Click2Protect will beat its own term life insurance HDFC Life Term Assurance product by 50%. Imagine, a 27-year old existing HDFC Life Term Assurance customer shelling out annual premium of Rs11,294 for Rs50 lakh sum assured for policy term of 25 years. Today, HDFC Life Click2Protect will offer the same customer a premium of only Rs5,000 for same coverage. The customer will feel dejected but then be lured to give up the existing expensive policy and buy the new cheaper one. Unlike the Term Assurance plan which offers optional riders of accidental death and accidental disability, Click2Protect does not come with any riders.

    The question is whether online sale without any agent make up for such a gigantic difference in the premium? It cannot justify the enormous variation; even though that’s the standard answer you will read or hear from the insurance company. Is there an assumption of online buyer living healthy lifestyle, having access to proper healthcare and hence will live longer? Time will tell if the assumptions stand true. The mortality experience of the product will tell if the premiums collected are enough or insurance company has hole in their pocket.

    Aviva i-Life is the cheapest, beating the next competitor HDFC Life Click2Protect handsomely. Even though the current online term premium rates are good deal for customers, the competition is just getting started. Aegon Religare, which started it all with its innovative iTerm product, will soon cut its premium rates by 12% to 32%. Existing customers may be offered additional cover or rider to reimburse for the reduction in premium. The much-awaited online term plan this year will be from LIC.

    HDFC Life Click2Protect has maximum maturity age of 65 years which is a drawback, considering that many insurers today offer term plan with maximum maturity age of 75 years. The maximum policy term is 30 years. The minimum sum assured is Rs10 lakh and maximum sum assured is Rs10 crore. The product offers free-look period of 30 days from the date of receipt of the policy. The cancellation will entail refund of premium after deducting medical expenses (if applicable), pro-rata cost for the period under cover and stamp duty.

     

    A new product ICICI Pru Life iCare tries to address the major hiccup with the online term insurance buying process. The medical tests which online term insurance products require for all (or higher age groups) has been done away with this innovative product. There were issues like premium hike after medical tests which used to catch customers by surprise. This one-of-a-kind product will have no medical tests and no surprises of premium hike. This is an online term plan in complete sense.

    Recent entrants like DLF Pramerica U-Protect and Edelweiss Tokio Life Protection have premiums which are the lowest in offline term plan space. Their premium is Rs5,956 and Rs5,984 respectively for Rs50 lakh sum assured for a 27 year old non-smoker male based in Mumbai for policy term of 25 years. Both the products are offline as of now.

    You may also want to read...

     

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    User

    COMMENTS

    Narendra K Shetty

    7 years ago

    Insurance sector regulator Irda has imposed fine of Rs. 1.47 crore on HDFC Life Insurance -- the highest ever penalty on any insurer -- for violation of various regulatory provisions.


    http://www.livemint.com/2012/06/28230150...

    Narendra Shetty

    7 years ago

    I have invested all my saving of 15 years with HDFC Life but now i lost Rs 80000 Rs at one go due misleading information provided by one of the branch employ, when it is addressed to customer service they admit their mistake but refused to compensate the money and person is still working with HDFCLIFE. They have cheated 80000 RS for me.

    I lodged complaint with Costumer grievances cell nothing happens.

    Imagine what will happen our saving as well dependent when we die and they show same attitude with our claim. If you require any further information you can reach me on [email protected] Narendra K Shetty

    suresh kumar gupta

    8 years ago

    Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
    the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
    Regards
    suresh kumar gupta
    rawali gali
    opp street of eloji
    BALOTRA RAJASTHAN 344022
    INDIA
    94141 07928

    Ramnik

    8 years ago

    What do you feel about Aviva i-life ?

    suresh kumar gupta

    8 years ago


    -----






    Dear Mam/Sir
    pl try to resolve my following issue with HDFC SLIC
    -----



    Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
    the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
    Regards
    suresh kumar gupta
    rawali gali
    opp street of eloji
    BALOTRA RAJASTHAN 344022
    INDIA
    94141 07928

    suresh kumar gupta

    8 years ago


    -----






    Dear Mam/Sir
    pl try to resolve my following issue with HDFC SLIC
    -----



    Hon sir I am certified financial consultant of HDFC STANDARD LIFE INSURANCE CO LTD Mumabi. my code number is 00041214 My request you as under. 1, Company has terminate me on the basis of false complaint of LOCAL STAFF i.e. BALOTRA branch 2. The both person has left the company 3. Due to my termination and lake of services my innocent client has lost almost 20 lakha INR AND POLICY HAS DEACTIVATED. 4. I very humbly request to company to provide the letters/emails/on which basis the company has terminate me but company has not provide the papers. 5.i also pray to company to provide the clause of agency agreement on which basis i have voilete this clouse but company has not replied my a singal word. Pl help to resolve my issue and reach a free and fa ir investigation in the interest of INNOCENT CLIENTS
    the CEO OF HDFC SLIC MR.AMITABH CHAUDHARY mail id is [email protected]
    Regards
    suresh kumar gupta
    rawali gali
    opp street of eloji
    BALOTRA RAJASTHAN 344022
    INDIA
    94141 07928

    REPLY

    rajeev

    In Reply to suresh kumar gupta 8 years ago

    Contact IRDA at http://www.irda.in and complain about unfair dismissal.Show proof.Then you can get justice

    suresh kumar gupta

    In Reply to rajeev 8 years ago

    Dear Rajeev sir
    thank you for your immediate revert and i am regularly approching to IRDA TO [email protected] but company has not providing proper resolution to me and i think that IRDA has also unable to help me
    i do not want to approch to legal court as this is civil matter case and almost 20 years will be passed to decession

    Mohit

    8 years ago

    Why HDFC is best.

    REPLY

    Vinayak

    In Reply to Mohit 8 years ago

    Yes its cheaper, but the customer service is bad. It takes 30 days to get the policy document. Payment is collected in advance on the day you buy

    SURESH KUMAR GUPTA

    In Reply to Vinayak 8 years ago

    thank you for your immediate revert and i am regularly approching to IRDA TO [email protected] but company has not providing proper resolution to me and i think that IRDA has also unable to help me
    i do not want to approch to legal court as this is civil matter case and almost 20 years will be passed to decession

    Just 2% from your life Insurance?

    After ULIPs fell from grace, traditional plans are selling fast. In another first from Moneylife, Raj Pradhan exposes the terrible returns from traditional plans that customers seem oblivious to

    My cousin Roshan was facing a dilemma. He wanted to buy term life insurance; but his father, my uncle, insisted on his buying an endowment or money-back policy—traditional insurance in trade...

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