Why Most Indians end up Buying Insurance the Wrong Way?

Buying insurance should be the very first step for every person who has saving goals. You must buy insurance before you even think about doing anything related to finance. In order to do so, you need to have an understanding of what is the real meaning of insurance and how much insurance coverage you need.The dictionary meaning of insurance is- an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.The definition of insurance regarding life insurance is – an arrangement by which a company will compensate your survivors if you die, in return for payment of a specified premium. This is one and only valid definition of insurance.

 

Before you buy health insurance, always compare mediclaim insurance plans offered by various insurance providers.
The question is, how much insurance coverage is adequate? There are various ways that could lead us to the answer but the basic one is the ten times your current income. For obvious, the sum insured will vary as per the income of the other family members, house, assets etc.

Now, the next question is- Do you have sufficient insurance coverage? For most of us, the answer is a big NO. There are so many people out there who pay insurance premiums annually but they have no clue about the money their family would get after they will die. This is so unusual because the life insurance sector is optimized by collecting premiums. Instead of how much the policyholders are secured for, how much premium the policyholder is paying is considered as the hallmark of success.

 

Not just the insurance providers but the insurance regulator IRDA offically measures the success of insurance industry by computing the premium amount collected by the policyholders. Ideally, they should measure the success of insurance companies based on how much insurance insurers have delivered to how many policyholders. IRDA’s  annual report and any published report in our country don’t reveal the actual insurance coverage of the policyholders. IRDA uses ‘insurance density’, that is the per capita premium collected from the policyholders along with the premium as the GDP ratio.

Nothing in these reports provides us the credible information regarding how much insurance coverage is delivered, this is the question that we actually want to be answered. A policy buyer is least interested in how much the insurance industry has collected from its premium. Policyholders are more interested in knowing how much monetary benefit the family of policyholder will get at the time of his sudden demise. The ratio of the total collected premium to the total coverage provided etc. It is very shocking, this information doesn’t exist, at least for the policyholders.

 

When the potential policyholders don’t know how much coverage the insurance companies have provided to its policyholders, they are unable to make a fair decision. The right way to select or reject an insurance provider is on the basis of the provided coverage.

Every insurance provider makes promises, knowing how many promises up to which extent are fulfilled helps to buy the insurance plans in right and fair way.

Your Checklist While Buying a Student Travel Insurance Plan

Planning to study abroad? If yes then have you considered buying a student travel insurance plan? Or do you really think of student travel plan as a compulsion? If not then you are doing a blunder!

Studying aboard is a life-changing decision which includes lots of excitement, passion, enthuse, but also the journey is prone to welcome many speed bumps and nuisances. You can never predict the issues that may arise all sudden and being in an unfamiliar country, you may find it difficult at time to deal with the odds. Thus, student travel insurance policy is a must as it goes hand in hand with study abroad! Also, there is always that chance-

  • Some medical emergencies arise
  • Mishap occurs during an adventurous activity
  • Flight gets cancelled
  • You break your DSLR
  • You need to fly home immediately due to a death of a family member

Hereby, before flying to your dream destination for studies and buying a travel plan, we suggest you to make a checklist of essentials that your policy should cover and ensure purchasing the best one. Here we go:

Medical Coverage

In some countries like US, Canada, medical expenses are quite high than the rest. A financial strain case cause mental stress, which may adversely affect on your studies. Major Indian insurance companies offer cashless medical treatment for illness or injury and accelerate the claim process. While some offer additional medical coverage, like:

  • Dental treatment
  • Diagnostic test for Cancer
  • Treatment for sports injuries
  • Mental and nervous disorder

It is essential to check the extent of your medical coverage before purchasing a particular student travel plan.

Loss of Documents or Luggage

Your travel insurance should also cover the loss of passport or loss of checked in luggage. Losing either of the two can put you in hassle that too in a new country. When you have an insurance plan, your insurer will compensate the loss and help you deal you with the situation.

Loss of Studies Due to Interruption

It is always uncertain that you’ll get to study in your dream university or not. Even if you get, sometimes it is mandatory to pay exorbitant tuition fees. You’ll be upside down when due to an unforeseen event you miss a semester or more and it leads to wastage of time and money to a huge extent. If you’re financially dependent on someone and sudden demise of that person can be emotionally shattering, and financial strain may put a pause to complete the studies, which should not add to their woes. Make sure that your travel plan covers any such interruption in your studies so that you can excel at studies without any break.

Two-way Compassionate Visit

It is an exciting clause that should be included in your travel plan. It is applicable if in case you are hospitalised for over 7 days, a relative can come visit you, via a compensation given by your insurer. Similarly, availing this benefit, a student can visit an ailing relative in India.

Often, it’s only after you meet a mishap and slashed that you realise the true worth of having a travel insurance policy. But is it necessary to wait until it happens- at best it could be a mere trouble and at worst you could be in real financial crisis, trapped abroad and unable to afford to get home. A travel insurance policy hereby provides financial safety during your course in abroad by igniting the hope that you’re not alone. So, once you get your confirmation/admission letter, search for the best plan online that covers all the required features together!

Three Ways to Cut your Car Insurance Premium

After you buy a car, the next thing you buy is a car insurance plan. As per law, it is mandatory for every vehicle owner to buy motor insurance for his vehicle plying on the Indian roads otherwise, they will have to pay a hefty fine. Before you buy a car insurance policy, compare car insurance policy so that you get the best. Buying the first plan that you come across is a big no.

Every vehicle owner wants to save his money on car insurance. The vehicle owners are always looking forward to the ways that can help them to cut their car insurance premium. If you want to reduce your car insurance premium, here are the ways that can be helpful for you.

Shop Around

In case your car insurance policy’s due date is approaching and the annual premium of your insurance has hiked up then you must in order to obtain quotes from various insurance providing companies. By doing this, you can come across different quotes for car insurance plans by various insurance providers. You can buy the one which gives you the maximum coverage at the minimum price.

The thing to keep in your mind is that cheaper plan doesn’t ensure that it is better. It might be better in the monetary terms but as an insurance buyer, you must pay attention to the coverage that this a specific plan offers. CSR- Claim
Settlement Ratio
also plays an important role. CSR is the insurance providers ability to pass a claim.

Install Anti-Theft Devices

Anti-theft devices can enhance the security and the safety of your car. When your cars’ safety is improved, your insurance provider offers you a discounted premium as your car is less prone to theft, all thanks to the anti-theft devices that you have installed in your car.

Various insurance providers offer a discount when you install particular anti-theft devices. Before you install an anti-theft device in your car, make sure that you cross check with your insurance provider so that you can cut your car insurance premium.

Get Rid off the Unnecessary Coverage

Drop specific coverage that is not required by you. We know that it could be difficult for you as you can’t predict when or where an accident can take place. Assess the coverage that you have opted so that you can come across the unnecessary coverage and get rid off it. ,

For instance, if a person drives a very old car then, there is no point in keeping the collision cover. Getting rid of an insurance cover doesn’t mean that there is no way that you’ll be needing that particular cover in the future. It means that chances are less that you’ll need it. The insurance covers you buy are based on the assumptions only. Isn’t it?

The least required insurance cover can be dropped when an individual is looking forward to cutting his/her insurance premium so that his insurance needs are fulfilled.

 

Benefits of Buying A Domestic Travel Insurance Plan Online

In this new era, there is nothing that can’t be available online. Starting from clothes to grocery, from baby products to cosmetic items, you can order anything in the blink of an eye. Online business has occupied a huge place in the market as every single company is digging into promoting their product online. Same is with insurance sector. A plethora of insurance companies now introduce their product online. But whenever we buy a travel insurance plan be it overseas or domestic travel insurance plan, the first thing that strikes in our mind is whether we should contact the insurance agent or buy it online. We often get confused with the availability of numerous plans available in the market regarding their offerings and about buying mode. We may end up buying a wrong one or may face an odd phase during the claim process. Hereby, making an informed decision is essential towards buying a travel plan. Thus, to give some guidance in this regard, we’ve compiled a list of benefits associated with an online insurance plan, to help you in making a firm decision.

Benefits of Online Domestic Travel Insurance Plan

Convenience:

Customers’ convenience is taking into account here. The online offerings allow the customers to get all plan-related information at the easiest way and privacy of their home. You just need to visit their website, compare the plan, buy the appropriate one and remain stress-free during your trip.

Low Premium:

By making travel plans available online, the insurance companies have cut the agent commission because, in an online purchase, the deal is supposed to happen between the client and insurer. This way you can avail a good premium discount. There are plans, which offer premium at 30%-40% cheaper than the offline plans.

Experience Instant & Safe Service:

Online services are always instant. You don’t need to visit the office of an insurer to discuss a suitable travel plan as per the requirement. Open your PC or laptop, visit the website of the insurer and look for the plans available online. Again, at the time of claim as well, you can register your claim online, which is the easiest and the fastest way. During a trip, if you happen to file a claim, you can call on the toll-free number or drop a mail to get instant assistance. Is not it alluring?

Buyers Can’t be Spoiled

While buying a travel insurance plan online, a customer directly visits the insurer’s website. And once it is written on a website, no one can deny the genuineness and you won’t be deceived. Because an insurer can’t back out about whatever they promised in the website. Again you get an option to compare the various plans and select the cheap and best one for you. This reduces the chance of misspelling which is probable in the case of buying through an agent.

You may like to read : Travel Insurance for Domestic and International Studies

Having a travel insurance plan is essential to safeguard your trip, be it domestic or international one. A travel insurance plan may not help you avoid the unforeseen circumstances but it gives financial assistance during an emergency, which may burn a big hole in your pocket. With an ample of travel insurance plans making their product alluring online, you should be careful while buying one. By considering the both sides positive and negative, you can analyse a plan, compare with the rest and take an informed decision. This way nothing can stop you having a good insurance coverage and make your trip stress-free. Because travel insurance is a must for a globe trotter like you!

A Complete Guide to HDFC ERGO General Insurance Plans

Wordweb defines insurance as- the promise of reimbursement in the case of loss.

Nobody gets informed in advance about the loss he/she will incur in the future. It is almost impossible to dodge all the losses, but we can be prepared the losses in advance so that when the losses incurred in real life, we don’t have to suffer that much. HDFC Ergo General Insurance offers various plans so that the potential insurance buyers can have best plans to choose from and make a right decision.

Here are the general insurance plans offered by HDFC Ergo.

1. HDFC ERGO Private Car Insurance

It offers four-wheeler insurance plans that fulfill all your insurance needs. You can buy insurance for your car even if your previous insurance plan has expired. Once you provide your details, HDFC ERGO’s executive would get in touch with you in order to schedule automobile inspection as per your convenience and availability. Throughout the process, it keeps you updated via SMS and e-mails.

For your ease, a platform is provided where you can track the status online by entering the unique number of the quotes provided by HDFC ERGO.

After up to the mark inspection results, an individual can pay for the premium online and get the digital policy delivered in his inbox. If your policy in a printed format, you can take a print out of your policy.

You may like to read : Top General Insurance companies in 2017

2. HDFC ERGO Comprehensive Two-Wheeler Insurance

Two-wheeler insurance plan offered by HDFC ERGO offers various benefits such as around the clock claim assistance, easy and quick settlement of the claim process. Their policy can be issued online the offers the biggest benefit of going digital and paperless.

HDFC ERGO’s bike insurance plans offer coverage against the legal liabilities due to any injury or even death of any third-party along with the self-cover including personal accident cover for the driver/ owner.

3. Health Insurance

Health insurance plans offered by HDFC ERGO offers health insurance policies that provide various benefits. Its comprehensive medical insurance policies come at the best prices. These plans are supported by a wide network of more than 5,000 hospitals. These plans come with the best features such as Enhanced No Claim Bonus, flexibility in the payment choices, cashless hospitalization facility etc.

4. Home Insurance 

Buying a home is a dream come true for the most of us. It involves a big investment that is why it is very important to safeguard it from various risks such as unpredictable damages, natural catastrophes, manmade disasters, threats like burglary and theft. For any family, their home and its contents are a treasure that they cherish. Each corner of their house tells a beautiful memory, which can be preserved with the help of a bike insurance.

HDFC Ergo General Insurance plans take care of all the individualistic insurance needs of the insurance buyers so that their insurance needs are fulfilled. Insurance creates an extra layer of protection that prepares us for the unfavorable situations and safeguards us from the financial burden caused by those situations.

How are Third-Party Insurance Liabilities Settled?

Purchasing a third-party motor insurance is compulsory for all the automobiles plying on the Indian roads. In the case of an accident, a third-party insurance claim can be filed so that the compensation for the damages and the injuries can be obtained.

In a case, you’re involved in a road mishap and you’ve suffered bodily injuries and damages on your property because of somebody else’s fault, the law allows you to register a claim and demand compensation from the owner of the involved automobile.

For the convenience of the policyholders, the claims process has been nade simpler by the insurance providers. Still, it is recommended to the policyholders to better to know the ins and outs of the claims filing process. This article will be your helpful guide.

What is a Third-Party Liability or Insurance?

The Third-party liability or insurance is a basic kind of vehicle insurance plan offered by general insurance companies.  According to law, it is mandatory to have a third-party cover for every automobile plying on the Indian roads.

Claims Filing Procedure

In a case you’ve suffered a road mishap, you can file a claim against the owner of the involved vehicle. In the event, your automobile is involved in any accident and it results in bodily injuries, death or damages to a third-party or its property, the third-party can file a claim against you as your vehicle was involved in an accident. The claim would be settled by your insurance provider.

The claims registering process varies as it depends on the consequences or nature of the accident. Mentioned below is the basic claim filing process specifically for the third-party liability cover.

Property Damage

  • In the case of a road mishap, property damage is caused to a third-party, the affected individual can register a claim through theMotor Accident Claims Tribunal.
  • The person filing the claim should get the insurance details of the involved automobile and register a First Information Report at the nearest police station.
  • The insurance details along with the FIR needs to be submitted at the time of registering the claim.
  • On the basis of the tribunal’s decision, the compensation would be provided to the person who has filed a claim.
  • As per the law, the highest amount that can be offered as a compensation regarding the property damage is Rupees 7,50,000.

Bodily Injury, Disability or Death

  • In case a road mishap results in any bodily injury, disability or death of the third-party involved, the third-party or his/her dependents depending upon the case can register a claim in order to get a compensation from the automobile owner.
  • A FIR needs to be registered at the nearest police station. The FIR must clearly state the series of the events and the details of both the parties involved.
  • The vehicle owner’s insurance details must be obtained.
  • The information mentioned above must be presented to the Motor Accident Claims Tribunal as per the jurisdiction.
  • The tribunal will deliver its ruling on the basis of the submitted documents.
  • There are cases, where the automobile owner wants an out of court settlement. It is allowed by the law.

Latest rates for Star Medical Insurance – Check Online

It is rightly said that “health is wealth”. The same belief is reflected in the policies of Star medical insurance as they make the health of their insured people their priority. Their insurance plans make sure that your health isn’t compromised under any circumstances by offering a wide range of flexible insurance policies so that your health is protected. The following are the features of various insurance plans offered by Star. 

  1. Family Optima Insurance Plan
  1. This is a single policy that offers wider coverage for the whole family that too at a basic premium.
  2. Extra sum insured is offered at no extra charges.
  3. For every claim-free year, health check-up benefits are offered.
  4. 100 percent automatic restoration of the sum insured is offered 3 times.
  5. Coverage is provided for the Assisted Reproductive Treatment.
  6. An infant can be covered from the 16th day onwards.
  7. Donors’ organ transplantation charges are covered.
  8. Domiciliary Hospitalization Charges are provided in case the treatment exceeds 3 days.
  9. All the day care procedures are covered.
  10. The grace period for 120 days is provided.
  1. Senior Citizens Red Carpet Health Insurance Policy
  1. This plan is exclusively for the senior citizens between 60 -75 years of age.
  1.  No need for medical screening.
  2.  It provides the coverage for pre-existing illness from the second year.
  3.  Medical consultation for out-patients is provided in a network listed hospital.
  4.  Higher Sum Insured up to Rs.10 Lakhs is offered.
  5.  It guaranteed renewal for a lifetime.
  1. Star Comprehensive Insurance Policy
  1.  There is no cap on the room charges and treatment expenses.
  2.  It provides coverage for the medical charges incurred on bariatric surgery along with its complications.
  3.  Coverage is offered for the air ambulance assistance and second medical opinion.
  4.  After 3 claim free years, a free health check-up is offered.
  5.  Maternity expenses for normal as well as caesarean delivery) and the infant is covered.
  6.  The entire sum insured is restored automatically by 100 percent.
  7.  Dental/ophthalmic treatment expenses are covered in OPD basis.
  8.  The benefit of hospital cash is provided.
  9.  Coverage is provided for 400-day-care procedures.
  10.  In the case of death/permanent total disability, personal accident cover is provided at no extra price.
  11. Upon a claim-free renewal, there is an increment in the sum insured.
  1. Medi-Classic Insurance Policy (For Individuals)
  1. At the end of every claim free year, No claim bonus between 5-25 percent is offered.
  2. After 4 claim free years, health check-up cost up to Rupees 5,000 is covered.
  3. The entire sum assured gets restored automatically by 200 percent.
  4.  Optional Coverage for hospital cash, patient care etc. is offered.
  5.  Coverage is provided for 101 -day-care procedures.

You may like to read : 5 Smart things to compare before you buy Health Insurance in India!

  1. Star Health Gain Insurance Policy
  1.  This insurance plan provides coverage for Individuals and Families.
  2.  The coverage for in-patient as well out-patient treatments is provided.
  3.  Unutilized Outpatient benefits are carried forward to the next insurance cycle at the time of renewal.
  4.  No Claim Bonus up to 10 percent is offered at the time of renewal.
  5.  Premium is fixed across all the sum Insured ranges along with the age groups.