IRDA norms for new life schemes

Mumbai: Insurance regulator IRDA on Tuesday said that all universal life products, a new kind of insurance which entered India recently and gives greater flexibility to customers, will not have any unit-linked component in them.
    IRDA also said that from now, all such products will be named variable insurance products (VIPs) and have a lock-in period of at least three years.
    The regulator prescribed that all VIPs should provide death benefits equal to the guaranteed sum assured plus the balance in the policy account while the maturity benefit should equal the balance in the policy account together with a terminal bonus, if any, as applicable. It also said that the sum assured under these policies should be at least ten times the annual premium.
    As of now, no group insurance is allowed by IRDA to operate under these policies. Single premium or limited premium structures are also not be allowed for VIPs.
    Specifiying on the cost structure, IRDA said that the maximum expense, including commission, should not be more than 27.5% of the premium, while for the second and the third year, this will be capped at 7.5%. From the fourth year onward, the expense is capped at 5%. The regulator also said that the minimum policy and premium payment term shall be five years.

[Ways2Insurance] New comment on Google Alert - Insurance.

Anonymous has left a new comment on your post "Google Alert - Insurance":

naked beach [url=http://freenude.onsugar.com/] nude video clips[/url] Nude celebrities

Publish
Delete
Mark as spam

Moderate comments for this blog.

Posted by Anonymous to Ways2Insurance at October 26, 2010 7:51 AM

[Ways2Insurance] New comment on Google Alert - Insurance.

Anonymous has left a new comment on your post "Google Alert - Insurance":

I love this site ways2insurance.blogspot.com. Lot of great information. I am Tech guy. I have been a Desktop Technician since 1997 but have tons of other interests. In my spare time... Oh, wait I don't have any of that (just kidding). Anyways, I have been aware of this website for quite some time and decided to join the community and contribute as well as learn a lot from others. I am excited to get started on the forum and am looking forward to a great journey together. Lots of potential friends and I look forward to meeting many online.

Publish
Delete
Mark as spam

Moderate comments for this blog.

Posted by Anonymous to Ways2Insurance at October 25, 2010 3:34 PM

[Ways2Insurance] New comment on Google Alert - Insurance.

Anonymous has left a new comment on your post "Google Alert - Insurance":

freenaked [url=http://community.illbrew.com/service/linkOut.kickAction?as=32539&url=http%3A%2F%2Fwww.platinum-celebs.com%2Factresses%2Fnadine-velazquez%2F&h=67525d82cbd3fa2291eed9b520a37337] nude photos[/url] NakedbeachNaked beaches

Publish
Delete
Mark as spam

Moderate comments for this blog.

Posted by Anonymous to Ways2Insurance at October 23, 2010 1:45 AM

[Ways2Insurance] New comment on Google Alert - Insurance.

Anonymous has left a new comment on your post "Google Alert - Insurance":

Please tell me it worked right? I dont want to sumit it again if i do not have to! Either the blog glitced out or i am an idiot, the second option doesnt surprise me lol. thanks for a great blog!

Publish
Delete
Mark as spam

Moderate comments for this blog.

Posted by Anonymous to Ways2Insurance at September 18, 2010 3:21 AM

Revive your lapsed policies, the easy way

Policies may get lapsed for a number of reasons. But you can revive them without too much of a hassle. Dhruv Agarwala & Kartik Varma offer some suggestions

MANY of us are often unable to continue paying premiums towards our life insurance policy, causing the policy to lapse. Policy lapsation can be dangerous as you or your financial dependants/beneficiaries may not get any benefit, which was the reason for buying the insurance cover.
    One needs to know the reasons behind the policy lapsation and how one can revive it, if need be, at a later date. An insurance policy may cease to exist due to various reasons. It could be because of carelessness or because one doesn't see value in continuing with the policy, or because of a financial crisis and can't afford it any longer. Here are some basics on policy lapsation and revival that all policyholders must know.
How does a life insurance policy lapse?
As long as you pay your premiums regularly, your policy will remain alive. If something happens to you during this period, the insurance company will honour its commitment and pay you or your beneficiaries, depending upon the type of policy you hold. However, if you stop paying your premium, then the insurance company will no longer be obliged to continue providing an insurance cover on your life. In this situation, your policy is said to have lapsed. The insurer might not provide any monetary benefits (the sum assured under the policy) to you or your beneficiaries if something were to happen to you.
    Before your policy lapses, you still have a limited time period during which you can make good on a delayed premium payment. If you are late on your premium payment, the insurer will send you a reminder and give you a grace period within which to pay your premium. This is usually 15 days when you pay your premium monthly and 30 days in all other cases. If you fail to pay the premium even after this grace period, your policy will lapse. The insurer will send you a letter informing you about the same.
Can I revive a lapsed policy? Will the benefits be the same after
revival?
Most traditional policies (like term, whole-life and endowment plans) can be revived, subject to certain criteria that your insurer might impose on you.
    Revival can happen at any time, but the conditions for revival might depend upon how long the policy has been lapsed for. Under the insurance laws, if the policy has been in force for at least three years, the insured gets up to two years to revive the policy. Some insurers like LIC have special schemes under which policies can be revived for up to five years from being lapsed.
    If you revive the policy within six months from the date of lapsation, the process might be as simple as paying the overdue premium (and interest) to catch up on the delay on your part.
    If you revive the policy after six months from the date of lapsation, you might be required to pay the overdue premium, penalty fees, as well as interest payment that could be up to 12-18% of the premium payment, depending upon the type of policy and the date of purchase.
    At the time of revival, the insurer might impose a lot of conditions or even decline your request for a policy revival if the company is not convinced about the integrity of your application on grounds of suspected fraud or the like. It can be very likely that the insurer will ask you to appear for a medical test before the policy can be revived to ascertain whether you have developed a new medical condition during policy lapse that might expose the insurance company to a high risk in insuring your life.
    At the time of revival, usually, full benefits that you or your beneficiaries are eligible for will be reinstated. However, if after revival, the insured commits suicide within one year, the insurer can deny the claim. Similarly, if the insured passes away within two years of the revival, the insurer has the option of conducting an inquiry before they decide to pay the claims to the beneficiaries.
Can one still file a claim on a
lapsed policy?
If a policy is less than three years old but lapses, and if something happens to you after the policy lapses, and a claim is filed, the insurer will not pay you anything. At best, the insurer might be willing to give you or your dependants the premium payments that you have made. But, this is also totally at the insurer's discretion.
    If a policy is more than three years old, but lapses, and if something were to happen to you, under the existing insurance rules, your dependants can still get some benefit. However, the insurer will pay only a reduced sum assured based on a pre-set formula (for those who are technically inclined, it's the number of premiums paid to the total number of premiums payable).
What if I am facing a cash crunch and can't pay my premium?
One choice you have is to review your insurance contract and change the terms. For instance, you can reduce your sum assured and your premiums will go down accordingly, perhaps making it more affordable for you to keep the policy in force.
    Life insurance is a necessary financial instrument that every person with financial dependants must have. Don't let your policy lapse, otherwise your financial dependants might end up facing financial hardship when you are not around to provide for them.
    www.iTrust.in 

[Ways2Insurance] New comment on Google Alert - Insurance.

Anonymous has left a new comment on your post "Google Alert - Insurance":

handed researcheven adjacent reaching float lawyers scuttle opportunity enjoying scaffolding exert
lolikneri havaqatsu

Publish this comment.

Reject this comment.

Moderate comments for this blog.

Posted by Anonymous to Ways2Insurance at February 7, 2010 2:33 PM

Take extra cover for sake of your health

Take an additional health cover even if your employer covers you with a group mediclaim. In many cases, claims can be made under both the policies, says Preeti Kulkarni WHILE spiralling healthcare costs have awakened people to the indispensability of health insurance, the concept of corporate group mediclaim has led to many employees avoiding buying a standalone health cover. A large number of organisations in the organised sector cover their employees as well as their immediate families under corporate mediclaim, resulting in independent health insurance slipping out of their priority list. However, financial planners and health insurers caution against adopting such a lax attitude towards the health of your family as well as your own.  A CASE FOR INDEPENDENT HEALTH COVER  The reasons are multi-fold. Your corporate medical cover is contingent upon you being employed with the organisation — the moment you decide to switch jobs or happen to face a lay-off, it will cease to exist. You may be entitled to the group health cover offered by your new employer, but it will not come into force during the transition period, leaving you exposed to the risk of having to foot your own bill, should any medical emergency arise then. A personal health cover ensures continuous coverage.      Besides, adds Sanjay Datta, head of health and accident of ICICI Lombard General Insurance: "Group mediclaim coverage is decided by the employer and is often inadequate in terms of coverage limits and does not cover the entire family." This apart, the prospect of having a critical illness with little or no earning capability also makes a very compelling case for buying personal health cover.      Health cover provided by the employer does not extend to post-retirement years — the period when you would need it the most, as ailments start taking their toll. This is also the age when individuals find it difficult to obtain a standalone cover at a reasonable premium, making buying health insurance at a younger age imperative.  MAKING A CLAIM UNDER TWO POLICIES  Many policyholders tend to assume that they can file a claim under any of the policies they have signed up for, which may not always be the case; whether the individual can make a choice to claim depends on the provisions made in the policies taken. Also, whether the individual can make a choice to claim, depends on the provisions made in the policies taken. "Typically, there is a declaration sought from the customer on the policies under which s/he is covered, and the total liability is shared by the insurers," informs Mr Datta.      The contribution clause in the policies states that claims can be made under both the policies, in the same ratio as the sum insured. For instance, if you are covered under a corporate policy with a sum insured of Rs 2 lakh, in addition to a personal cover of Rs 1 lakh and make a claim for Rs 1 lakh, the insurer servicing the former will contribute around Rs 66,000 while the balance will come from the other insurer. However, according to Pawan Bhalla, CEO of Raksha TPA, in India, policyholders are not legally bound to disclose the details of any existing policy or make a claim under both the policies. Hence, they can file a claim under any of the two policies they are covered under.  CLAIMS PROCEDURE  The swiftness with which a third party administrator (TPA) processes a claim plays a role in fulfilling the objective of buying health insurance. If your mediclaim policies are serviced by the same TPA, the process becomes simpler, as the documents need not be transferred from one TPA to the other. In cases where the TPAs are not common, a certificate needs to be obtained from one TPA mentioning the claim amount being settled and that original documents have been retained. The insured can submit the photocopies along with this certificate to the other TPA.      preeti.kulkarni@timesgroup.com