Personal Accident: A must-have cover

About 0.15 million Indians died on the roads and over 0.3 million were permanently disabled in 2010. Life and physical abilities are irreplaceable but personal accident insurance, available at a low price in India, can at least relieve the monetary burden—as long as you have the right cover. Raj Pradhan explains what you really need

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  • IRDA given life insurance memorandum by Moneylife Foundation

    Life insurance is plagued with several issues of mis-selling by intermediaries and even more by banks. Moneylife Foundation has handed over a memorandum to IRDA which highlights the citizens' concerns
       
    Insurance Regulatory and Development Authority (IRDA) has the task of keeping insurance companies in check from mis-selling and profiting from toxic products. IRDA has initiated several steps in this direction. There is always scope for improvement and hence Moneylife foundation decided to meet number of activists, experts, eminent citizens and citizens groups to get their feedback. The issues along with required actions were put in memorandum and given to IRDA on May 10, 2012.

    Life insurance issues range from mis-selling by officers of insurance companies which includes forgery and falsification of documents, bancassurance channel which has seen rampant mis-selling, deep reluctance on the part of insurers to sell term plans, traditional products carrying high commission which means poor returns for customers and insurers profiting from lapsed policies and toxic products and so. These are other issues are contained in the memorandum Moneylife Foundation has submitted to the IRDA. A copy is uploaded here.

     
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    COMMENTS

    pcchacko

    8 years ago

    The agents/advisors or other intermediaries selling life Insurance in India are not giving the correct plans suitable to individual situation.Their focus is on teh premium amount and the commission and other benefits they receive .The public too donot try to study the plans and arenot prepared to understand that Life Insurance cover is not an investment but a an essential service to the dependents that in case of premature death of the bread winner the dependents will be asble to generate sufficient income from the investment made by the claim amount.A peron should have 15 times to 25 times as life cover dependeingupon the age and liability of the insured.This can only beachieved by term insurance plans .Here the problem of understanding is that if there is no death within the policy term npthing is payable to the insured. This can be overcome by accepting the plan of term insurance with return of premiums in case there is no claim premium paid will be returned In other words the life cover will be financed from the interest on premium paid and capital is returned. One cannot have full cover through endowment or money back plans or Unit linked plans The Insurers advistors and intermediaries should guide the customers honestly .

    REPLY

    raj

    In Reply to pcchacko 8 years ago

    good comment

    IRDA given health insurance memorandum by Moneylife Foundation

    Health insurance is a cause of concern for everyone. There are several issues that need regulatory intervention and direction. IRDA has been handed over a memorandum by Moneylife Foundation highlighting the actions for each consumer concerns
     
    The Insurance Regulatory and Development Authority (IRDA) have the task of protecting policyholders and has initiated several steps in this direction. There is always scope for improvement and hence Moneylife foundation decided to meet number of activists, experts, eminent citizens and citizens groups to get their feedback. The issues along with required actions were put in memorandum and given to IRDA on 10 May 2012.

    Among the more common issues that citizens face are rising health insurance premium, senior citizens' inability to increase sum insured, mediclaim policies getting restrictive with different caps, increase in the number of claim rejections for frivolous reasons, cashless facility restricted to few hospitals, claims based loading even after decades of no-claims from the policyholder, stringent hospitalisation intimation and claims submission deadlines, poor and delayed grievance redressal, several Third Party Administrator (TPA) issues which has harassed policyholders to no end and lack of control on medical charges of hospitals and consultants.

    Moneylife Foundation is analysed and collated these issues and put them in a memorandum and given to IRDA. A copy of this memorandum is uploaded here.

     
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    COMMENTS

    nagesh kini

    8 years ago

    We need to ascertain from Mr. Hari Narayan how he has dealt with our memorandum.

    Samar

    8 years ago

    Why cant't we have a standard health insurance policy like RSBY?
    Individual requirements could be assessed and underwritten with extras and conditions.Just see, as many as 3 cr plus are insured under RSBY , with standard premium and listed Hospitals & package.Largest good of the largest number could be attained under such mass cover.

    DR Aniruddha Malpani

    8 years ago

    IRDA should make it compulsory for health insurance companies to provide health and patient education to their customers.

    This will help their customers remain healthy - and will also ensure their bottom line is healthier !

    Health insurance can be much more than just illness insurance ?

    We feel patients are the largest untapped healthcare resource and that Information Therapy is Powerful Medicine !

    We help patients by
    Promoting SelfCare and helping them to do as much for themselves as they can
    Helping them with Evidence-Based Guidelines , so that they can ask for the right medical treatment that they need - no more and no less
    Helping them with Veto Power, so they can say No to medical care they don’t need, thus preventing overtesting and unnecessary surgery .

    REPLY

    raj

    In Reply to DR Aniruddha Malpani 8 years ago

    Valid points. Preventive health care initiatives are focussed on group plans. Preventive health care initiatives for Individual plans have started, but has a long way to go.

    Samar

    In Reply to raj 8 years ago

    IRDA have let down the Sr citizens from health care security, by treating them in a pedestrian way, offering plain vanilla mediclaim policy , in the name of Varistha.
    As rightly outlined by Dr Malpani, Varistha could have been designed need based , a package of self care , followed by preventive cum maintenance care for the sr citizens , with top up tertiary care. Elders above 60 are not to be, every time rushed to the hospitals , if a holistic approach , built on home care / preventive care would have been dovetailed in Varistha Policy.
    Much of it are detailed in Sastry Committee Report.Sadly, Chairman IRDA, by passed the recommendation and lost an opportunity to do good to the Elders in APL Category , estimated to be above 5 cr.

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