Meet Your NEW INSURANCE Salesman

For the longest time, insurance selling was synonymous with the ubiquitous LIC agent — in some cases, a part of the extended Indian family. But selling insurance is no longer what it used to be. The brick-and-mortar sales model is giving way to the world of clicks and online engagement

    Even though it's a small player in terms of market share, Aegon Religare does have a couple of firsts to its credit — the KILB (Kum Insurance Lene Ki Bimari) campaign which is remembered for its clutter-breaking treatment. And perhaps more pertinent to the story at hand, it stuck its neck out in 2009 to launch the first ever insurance product sold exclusively online. Says Yateesh Srivastava, chief marketing officer, Aegon Religare Life Insurance, "Back then it was seen mostly as a kite-flying project that would die a natural death. Nobody really thought it would grow to a distribution channel." Apparently, even regulatory authorities asked to be informed the day 10 policies were sold. Much has changed since then for both the brand and the category. Today online sales comprise 30% of the total volume business for Aegon Religare. Online is here to stay. And this time, it's a medium to close the last mile. 
    The largest player in insurance, LIC has a 
marketshare of over 80% and an army of nearly 1.2 million agents. But the insurance giant is among those who've realised the power of going online. As per a LIC spokesperson, "the need emerges from the changing customer profile. Today's young, tech savvy executives are looking at ease of access to make purchases." Consumer trends point to the growing importance of "time saving" and "convenience" in all spheres. Adds Manish Dubey, head - marketing, ICICI Prudential Life, "Two basic characteristics of onlineinsurance are 'safety of payments' and 'simple products.' With the increase in online banking transactions, more consumers are becoming comfortable with online payments." As per studies, most buyers are males aged between 28-40 in SEC A & B with an income of over 10 lakh per annum. From a psychographic point of view they are comfortable with technology and seekers of information online. They also welcome a non-intermediated sales process. 
    What makes the affinity for online purchase all the more surprising is the nature of insurance. It's an entity that is relevant but seldom gets adequate attention. Ajay Kakar, chief marketing officer - financial services, Aditya Birla Group admits, "It is not even a felt need by most people who can benefit from it. And this reality is reflected in the fact that despite 38 of the world's best brands continuously investing in this high ad-spend category in India, penetration-levels are as low as 15% of household savings." Even those who have taken a policy, in all probability are heavily under-insured. This explains the industrymaxim that"insurance is sold, and not bought." It is a 'high-touch' category, with sales a byproduct of many across-the-table interactions between prospect and agent. So is all that set to change? For sure, if industry experts are to be believed. 
    For one, ecommerce is becoming a big-ticket industry. Estimates indicate that the market in India is set to grow the fastest within Asia-Pacific, a CAGR of over 57% between 2012-2016. The industry is piggybacking on this growth. Says Anisha Motwani, chief marketing officer, Max Life Insurance, "From a mere 10 crore annually 3 years back, online life insurance sales have come to exceed over 100 crore in the previous 12 months." She estimates the pie will increase to over 250 crore by 2014. 
    Better pricing tops the list of reasons to buy online. While the extent of saving depends on age, health, lifestyle and term of the policy, online plans can be anything between 15% to 70% cheaper. Points out C h a n d r a m o h a n Mehra, head - brand and cross sell, SBI Life, "Increasingly customers are searching for product information and comparing features on the internet before they shop for life insurance in a real environment." They are more likely to make a better-informed decision compared to the offline sales process driven by agents. 
    And so insurance brands that previously spent time training the best agents are now working to understand the path to conversion of users and catalysts along this journey. Vivek Bhargava, chief executive officer of a leading search marketing firm, iProspectCommunicate 2, says, "The deployment of technology allows us to understand and accordingly deploy the social platforms better. The keywords that have led to a sale, typically, give us a lot of insight on what people are searching more of and also what could be leading to those searches." For instance the growth of "term insurance" is primarily because these products are easier to understand and the user requires limited clarifications. 
    Agrees Motwani, "The 'research online, purchase offline' (ROPO) behaviour is being observed across lifeinsurance and in the light of this consumer behaviour, it becomes imperative for brands to anticipate the possible digital touchpoints, and build and sustain communication." Brands will have to evolve and strengthen digital assets, as it increasingly becomes a convergence point for research, engagement, acquisition and service. Says Sanjay Tripathy, head - marketing and direct channels, HDFC Life, "Finally this entire shift will bring a lower cost of acquisition, help companies provide cheaper products, and optimise distribution costs as well." 
    From a media planning perspective, it allows for targeted options instead of carpet-bombing. Says Gaurav Rajput, director - marketing at Aviva India, "Typically we segregate target groups basis their propensity to buy online, visit banking sites, the kind of transactions conducted and what they read about the category. Specific online products can be pushed on the medium." He surmises general as well as life insurance will drive the growth. Motor, travel and health see a greater shift towards online, as these products lend themselves to comparison of features and prices. 
    If brand engagement used to mean a meeting with the agent, it means a whole lot more now. There are premium reminders, query resolution, policy management and premium calculators among the suite of services offered to existing customers. Brands are doing their best to make themselves preferred and Facebook has emerged as the lead battleground. 
    Motwani is certain that advertising on the site doesn't lead to sales in the short term. But the primary expectation for Max Life and indeed its competitors is engagement. The players boast of likes that number in lakhs. 
    Max Life Insurance claims to be in the lead with 4.75 lakh members. Its 'Khushiyon Ki Planning' platform encourages long term planning and sharing the right insurance advice. SBI Life offers content around topics like 'things to do before buying life insurance, 'letting policyholders know their rights and responsibilities', 'e-life insurance dictionary'. It was the first to establish a presence on Facebook and Twitter. The page is branded as "Celebrate Life" and not SBI Life, aligned to the brand campaigns in more traditional media. Aviva's gone both the digital and activation route with 'The Aviva Great Wall of Education', which seeks to donate books to needy children. Says Rajput, "In a 'low engagement' category, on a medium that's all about 'engagement', brand communication needs to move to 'brand conversations' and 'story telling' for a meaningful connect." 
    Amidst this talk of digital and online being gamechangers, Kakar cautions that it can never entirely replace 'human engagement'. Creating a felt need (for insurance) and answering the doubts that come along with this seemingly complex-to-understand category can best be met only through human interactions is his view. The good news is agents who adapt to new technologies are helped by enriched data and better analysis. 
    Finally both types of customer segments co-exist today — those preferring to purchase online and those more comfortable with an agent. Ultimately it is the customer who decides. Says Dubey, "I believe it is not about how net savvy our consumers are, it is about how consumer savvy can our net offering become."

Increasingly customers are searching for product information and comparing features on the Internet before they shop for life insurance in a real environment 
    Chandramohan Mehra, 
    HEAD - BRAND AND 
    CROSS SELL, SBI LIFE

Typically we segregate target groups basis their propensity to buy online, visit banking sites, the kind of transactions conducted and what they read about the category. Specific online products, thus, can be pushed on the medium 
    Gaurav Rajput 
    DIRECTOR - MARKETING, 
    AVIVA INDIA

Should You Go for High Health Insurance?

    Most individuals fear that their health cover of . 5 lakh or . 10 lakh won't be enough to take care of a medical emergency. They believe advances in medical science, along with the rising cost of treatment, medications and procedures, may wipe out their savings and investment if they contract some serious or critical illness. The fears are not exaggerated. For example, an organ transplant, say, of liver or lung, can cost . 20 lakh to . 40 lakh. Even the new medicines for cancer and other serious illnesses cost . 500 upwards per tablet. However, most insurance companies offer a maximum health cover of only . 10 lakh. But the signs of changes are already there. Religare Health recently launched Care, a health insurance policy that offers sum insured of up to . 60 lakh, the highest offered on any health insurance product in the country. ICICI Lombard and Max Bupa Health Insurance already have products that offer health cover of up to . 50 lakh. 

"Due to advancement in technology and medical science, many new procedures have been adopted in critical surgeries and treatment of severe illnesses, which come at extra cost. Also, a change in lifestyle is encouraging individuals to take treatment in super-luxury hospitals. These factors, along with the inflation in healthcare cost, are forcing individuals to look for enhanced sum assured," says Pankaj Mathpal, certified financial planner and managing director, Optima Money Managers. "Individuals with adverse family history should go for a higher sum assured if they can afford the premium. Wealthy people looking for advance treatment and services in super-luxury hospitals can also go for such large sum assured," says Mathpal. 
Also, many people are increasingly opting for medical treatments outside India for critical illnesses. Some of these health insurance products cater to that need, too. For instance, Care covers costs related to medical treatments outside India for individuals opting for a sum assured of above . 50 lakh. "This policy provides coverage for hospitalisation abroad for cancer, benign brain tumour, major organ/bone marrow transplant, heart valve replacement, and heart bypass surgery, for a sum insured of . 50 lakh and . 60 lakh," says Mahavir Chopra, head, e-business, medimanage.com, a healthinsurance advisory firm. 
DO YOU NEED HIGH COVERS? 
Experts are unanimous that a cover of . 10 lakh may not suffice for treatment of any critical illness, especially in the metros. Gaurav Mashruwala, a certified financial planner, says, "People won't have any choice but to visit premier hospitals if they contract any serious illness. In Mumbai, a room in these premier hospitals costs . 5,000 to . 7,000. A room in the ICU would cost at least three to four times the normal room." According to him, if an individual can afford the premium, he or she should go for the maximum health cover. 
Still, affordability could be an issue for many people. For example, the premium for a health cover of . 50 lakh can be in the wide range of . 27,000 to . 50,000 for a 35-year-old individual, depending upon the product and the number of family members covered by the policy. The renewal premiums - ing in inflation and healthcare costs. "These policies do not have a claim-based loading at renewal. However, the premium of every policy increases after 1-2 years because of inflation and rising healthcare costs. So you have to factor in the potential hike in premium when you budget for such high-value policies," says Suresh Sadagopan, a certified financial planner with Ladder 7 Financial Advisories. 
"I would advise a client to go for the maximum health cover. If affordability is an issue, I would ask them to strike a balance," says Mashruwala. Striking a balance is very important because one shouldn't channel all the savings towards health insurance premium. "From a financial planning perspective, risk is only one of the components that includes term insurance, healthinsurance and home insurance. So a retail investor cannot afford spending . 30,000 only on a health insurance policy when he/she has to think about building a retirement corpus, saving for child's education, etc. And the premium will only go up as he ages," says Harshvardhan Roongta, certified financial planner, Roongta Securities. 
If you can't afford the premium, you should try to add a top-up health cover to your existing . 5 lakh or . 10 lakh cover. The maximum top-up cover available in the market today is . 15 lakh. "If you are comfortable getting treated in tier-2 hospitals, a cover of Rs 10-15 lakh in an urban area should suffice," says Roongta. Mashruwala suggests another way out for people who can't afford the premium for high covers. "You should start building a corpus of . 5 lakh for medical emergency. You can use this corpus for treatment of your minor illnesses." 
DON'T MISS THE FINE PRINT 
A large cover doesn't mean it will reimburse every expense. Pay attention to factors such as the network of hospitals, sub-limits in the policy, exclusions, waiting period for pre-existing disease, additional benefits such as maternity cover, neonatal cover, dental treatment and so on. In case of high-value policies, there may not be any caps or sub-limits on the room rent. However, there may be a definition of the category of the room covered by the policy. "In case of Religare Health, for sum insured of . 5 lakh and above there is a room category cap. Such a cap allows only the lowest category private room in the hospital," says Chopra. So even if you opt for a 5-star hospital, you have to opt for the lowest category of the private room. 
Just like health policies with small sum insured, these policies also have a co-pay clause at 20% for senior citizens. "The Religare Health policy applies a 20% co-pay for members who enter the policy at 61 years and above. Max Bupa applies 20% co-pay, even if one enters at the age of 20 and continues the policy for 45 years," says Chopra. So if you opt for tier-1 hospital for medical treatment, the 20% ratio to be borne by the patient will be a heavy sum. 

Revival plan for non-life biz? Insurers Ask FM To Extend 80D Benefits To Property Covers

Mumbai:A revival package is on the anvil for non-life insurance companies on the lines of what was announced by the finance minister for the lifeinsurance industry earlier this month. Finance minister P Chidambaram on Monday met chiefs of non-life companies to decide on measures required to increase general insurance penetration, which has stagnated at around 0.7% of gross domestic product.      "There was a suggestion that tax breaks under section 80D could be extended to property insurance for premiums up to Rs 1 lakh," said Amarnath Ananthanarayanan, MD & CEO, Bharti Axa General Insurance. At present, the only tax break for non-life is on payments up to Rs 20,000 for healthinsurance. "We also discussed in motor insurance third party pricing and of the large number of uninsured vehicles in India, estimated at around 9 crore," said K G Krishnamoorthy Rao, MD & CEO, Future Generali India Insurance. Among the other suggestions was that authorities should mandate propertyinsurance for multi-storeyed housing as is the practice in some countries.      Some insiders say that the industry has not been able to realize its potential because of unhealthy competition for top line. This is partly driven by the four state-owned insurance companies. According to K K Srinivasan, former member of IRDA, there is a strong case for merger of the four non-life companies.      "The four PSUs were created in the early seventies when the industry was nationalized. The purpose was to create a modicum of competition. It has lost its relevance now with around 20 private sector nonlife insurers in the field. It is senseless to keep the four PSUs competing among themselves. It is high time the sector is reformed by merging the four PSUs into one and give a strong united competition to the private sector," said Srinivasan.      Some of the regulatory issues were similar to the ones raised by the lifeinsurance industry. Non-life companies wanted regulations that would permit them to come up with products that could be sold after being filed with the regulator. They also wanted liberalization of distribution norms so that policies could be sold through banks.      The finance minister had earlier announced measures that would address these issues for the life industry.      In the meeting, the finance minister took down the views of all companies and indicated that the government would take measures to improve growth in the non-life sector. State-owned non-life companies highlighted their peculiar problem of not being able to hire actuaries in light of the age restriction which bars those above 70 years from being appointed.

Life Insurers Hit Jackpot with Online Term Plans

Sales rise 125% as people find it easier to buy policies on the Internet

The life insurance sector is witnessing a slowdown, but at least one segment of the industry is growing in leaps and bounds. Sales of online term plans are booming, with nearly 55,750 term policies sold in the past six months. 

During 2011-12, roughly 49,500 plans were sold in the entire year and the figure is expected to more than double this year. 
On an average, every five minutes somebody buys an online term plan in India. Insurance portal Policybazaar.com gets almost 2,600 enquiries for term plans every day. The portal has sold about 33,800 online term plans (60% of the total) in the past six months, averaging more than 140 policies per day. 
The average cover is . 72 lakh, which is 35 times larger than the average cover for all insurance policies sold during the past six months. 
Aegon Religare Life, which pioneered the online sale of life insurance nearly two years ago, is the largest player in this segment. It is followed closely by Aviva India. Snapping at their heels is HDFC Life, which launched its Click2Protect plan in January this year. ICICI Prudential Life and Kotak Life are the other active players in this segment. 
While other big players such as Reliance Life and Bajaj Allianz have also jumped onto the bandwagon, LIC has shelved its plans because of its powerful agent lobby. The LIC offering would have been a game changer because a lot of buyers believe that its high claim settlement ratio makes it the most trustworthy insurance company. But the powerful agent lobby forced the LIC to junk the idea.

Reduce the premium on car insurance

Find out the simple measures, such as installing safety devices in your vehicle and avoiding small claims, that can help you lower the premium

    If you have been planning to buy a new car, you are bound to have been pulled in by the bevy of discounts and freebies. One of the most attractive among these is the offer of free insurance. Since buying a car insurance policy is compulsory, the word 'free' pulls in buyers, but there could be hidden clauses. The first catch is that the insurance provided is typically only for a year. From the second year on, it's your responsibility to renew the policy and pay the premium. Moreover, free insurance would mean a lower discount on the price of the car as dealers invariably recover the premium through the final cost that you pay for the vehicle. Besides, the free policy may not include various types of damages, such as that by floods. So, read the fine print carefully before you take this bait, or you could opt for a higher discount on the car and buy an insurance policy separately. Find out how due diligence and research can help you reduce the insurance premium you may have to pay for the first year as well as subsequently. 
Voluntary deductible 
The part of the monetary loss that is borne by you is called a deductible, and it has two components—compulsory and voluntary. A compulsory deductible of 500 would mean that you pay 500 of the claim amount, while the company pays the rest. You can reduce the premium if you opt for an additional voluntary deductible. However, this also means that when a loss occurs, you will have to pay a large portion of the claim amount out of your own pocket. For instance, a voluntary deductible of 2,500 would give you a 20% discount on your premium, but when an accident occurs, you will have to pay 3,000 of the claim amount (voluntary deductible of 2,500 plus the compulsory deductible of 500). "Those who are confident of their driving ability could opt for a voluntary deductible to save on premium," says Vijay Kumar, president, motor insurance, Bajaj Allianz General Insurance. 
Insured declared value 
The IDV is the market value of your car. The higher the value, the more the premium. You can save a few hundred rupees on your premium by declaring a lower value for your car. If your car is worth 7 lakh, declaring a value of 6.3 lakh could help you save 200-500 on insurance premium. "This is a double-edged sword as the claim amount for accidents will not be affected by declaring a lower IDV. However, if your car is stolen, you will get a lower amount in line with the one declared by you," says Akshay Mehrotra, chief marketing officer, Policybazaar.com. 
Voluntary additional declarations 
The insurance company may not tell you this, but the premium charged for a car may differ according to the profile of the owner. Insurers adopt many parameters to evaluate the risk associated with your vehicle, and these include fuel type, age of vehicle, usage of car, as well as driver-specific details, such as the occupation and driver's age. A diesel-run car is assumed to be used more often than a petrol one, so the premium charged for it would be higher by 10-15%. Similarly, it is assumed that a businessman would use his car more frequently and, hence, would be charged a higher premium. Voluntary declarations about the usage of your car, as well as other details like driving records, can help you get a discount of around 10%. 
Safety devices 
Installing safety devices can bag you 100-200 discount on your premium. You can also lower the premium by up to 200 if you come under a 'safe driver' category. One way to do this is to become a member of the Automobile Association of India. "This improves your image and record in the eyes of insurance companies, which helps you get a discount," says Sanjay Datta, chief—underwriting & claims, ICICI Lombard GIC. 
No-claim bonus (NCB) 
An NCB is the reward you get for not making any claims throughout the year. This can help you bag a discount of 20-50% on your premium from the second year onwards (see graphic). However, since you lose this advantage if you make a claim, avoid making small claims, especially when the amount is lower than your premium. A benefit is that the NCB can be transferred from an old vehicle to a new one as it gets accumulated for the driver, not the vehicle. "By carrying forward your NCB to a new vehicle of the same type, you can slash the first premium," says Kumar. 
Premium declines over the years 
The premium falls with each passing year due to two reasons: reduced IDV and accumulated NCB. Besides, the value of your car will decline each year because of depreciation, and a lower market value automatically translates to a lower premium. However, at the time of a partial damage claim, this depreciation factor kicks in, reducing the claim amount that is payable by the company.

Tips to buy health insurance policy

A viable option is to choose a lifetime plan or one that provides insurance cover post-retirement as well.

Growing incidence of lifestyle diseases and rapidly rising medical costs have made health insurance one of the most bought insurance products these days. To meet the growing demand, health insurance companies have introduced several innovative plans to cater to the needs of the consumers and the target buyer group. The consumers are literally spoilt for choice. However, buying health insurance calls for greater awareness and cost-benefit balancing by consumers in order to buy the best product to provide maximum cover at reasonable cost.

THE RIGHT POLICY

First , the customer should buy a plan with maximum renewable age or lifetime insurance policy. The sole purpose of buying health insurance is to protect yourself and the family from mounting healthcare costs throughout your life. A viable option is to choose a lifetime plan or one that provides insurance cover for post-retirement as well.

Second and the most important point to keep in mind is that the policy should provide adequate cover to protect all the dependent members of the family. Accordingly, the sum insured should be decided according to the family size, past medical history and the area of residence.

A buyer needs to be careful as many companies do not pay for pre-existing diseases and the complications arising from them. These days, however, some companies allow for pre-existing diseases after a specific waiting period and if the insurance policy renewals are continuous.

Similarly, women insurers need to ensure whether maternity benefits are covered under given health insurance.

COST FACTOR

Third, buying health insurance entails a premium which depends on the number of family members and their age group. A buyer must check for all the limitations in an insurance cover and choose the one that provides maximum benefit within the affordable cost to him.

Fourth, for availing cashless insurance facility, it is important to check the list of empanelled hospitals as well. This would help avoid any problems in case of an emergency.

Some insurance companies also offer co-pay and sub-limits in insurance coverage, where the company pays certain percentage of the total amount incurred (say 90 per cent) or provides insurance with a limit for a particular treatment. In such cases, the buyer has to pay rest of the amount himself.

Fifth, till recently, health cover was popular as a group insurance product provided by employers in the organised sector. In such a case, an insurance cover can end abruptly depending upon the employers' policy to offer such a facility. It will be prudent on the part of the employees to have individual protection to cover themselves.

Also, check the credibility of an insurance company. It should be certified by the Insurance Regulatory and Development Authority. An insurance advisor or a broker firm can help in taking the right decision by presenting cost-benefit analysis of various schemes for a given option as against limited information by a company's insurance agent who may not be aware of other companies' products.

(The author is CFO, Max Bupa)

Keywords: tips to buy health insurance policy, choose a lifetime plan, provides insurance cover post-retirement as well

Banks as a shop for insurance

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BANKS | DEEPAK YOHANNAN | INDIA | INSURANCE

(The views expressed in this column are the author's own and do not represent those of Reuters)

The concept of insurance plans being sold through banks is called 'bancassurance' and there is a lot of interest in this distribution channel from all the stakeholders - customers, banks, insurance companies and the regulator.

Bank as a distribution channel offers some very distinct advantage for the insurance companies, biggest being a large established network which can operate on a purely variable cost basis. The time and money required to establish something similar is exhaustive and expensive, almost bordering on the impossible.

So the obvious has happened – all big Indian banks have actually become stakeholders in some insurance company or the other.

From the bank's perspective, it opens up a new line of fee-based income which is so crucial for most in today's world.  An attractive fee-based product like insurance seems too tempting to stay away from.

There is a large amount of trust which the customers have on the banking system and hence the trust factor combined with convenience makes it a good option for them.

The regulator would, of course, want such a large distribution system to function in a way which is fair to all and avoid or minimise systemic risks.

Though out-weighed by the positives, there are some flip-sides too. Banks by the nature of their business know a lot about the customer which most others would not. This creates a conflict-of-interest scenario and can provide an undue advantage to the seller.

Also banks are increasingly trying to move most of their transactions online or through ATMs, and in fact there are dis-incentives for branch visits and cash transactions. As banks move towards automation and reduce interaction avenues, the familiarity with the banker would come down and so the chances of sale too.

Another key point, which is more by the way of regulation, is the fact that banks can sell plans of only one life, general and health insurance company each. So instead of getting the most suitable product, the customer might actually be sold a product which makes the maximum fee-based income for the bank.

Also because of this regulation, new insurance companies are finding it difficult to get a partner as most of the big banks are already tied up with some insurer or the other.

The Insurance Regulatory and Development Authority (IRDA) has attempted to fix this problem by some regulatory tweaks. The changes are yet to be approved and are under discussion.

Banks can operate as brokers whereby they can sell plans of any insurance company. While this is good for the consumer, it means the banker now needs to be trained on a large number of products from multiple insurers. We can safely assume that the "banker" would probably find this too difficult.

The other solution offered is by breaking the country into zones and allowing banks to get into tie-ups with different insurers in different zones. Though this doesn't offer any advantage to the consumer, insurance companies with fewer bank partners will find it easier to find one in some zone.

While it is best for the consumer if the banks take on the role of a broker, it remains to be seen if banks would take that path, as there is a considerable increase in responsibilities towards the consumer. Banks might take the more focussed and easier path of sticking to single tie-ups within their branches.

It reduces the training costs and helps drive more volume to the single insurer.

Bancassurance is a very sought after channel for any insurer and these steps will create an opening for insurers who find it difficult to find banks as partners. These are the days of the supermarkets, so why not banks as financial supermarkets!

For more articles by Deepak Yohannan, please visit MyInsuranceClub.com

LAMBERT INSURES VOICE FOR $48M

Singer Adam Lambert has reportedly insured his voice for $48 million ( 250 crore, approx) ahead of a long run of promotional 

appearances. The singer's management decided to take out a policy to protect his vocal chords. 
"Insurance for stars is a big deal in the US and Adam's voice is his bacon. He had it insured last week," a website quoted a source as saying. Lambert, 30, joins a host of other stars, who are believed to have insured their body parts. Singer Mariah Carey is said to have taken out a $1 billion policy to cover her legs, while Dolly Parton has reportedly 
insured her chest for $600,000. It was recently 
revealed that Lambert, who finished as runner-up in the eighth season of 
American Idol, 
will make a guest appearance in popular US show Pretty Little Liars next month. IANS

Adam Lambert

Max Bupa Health Insurance Company has come up with Max Bupa Walk for Health in association with TIMES NOW

KUNAL, HUMA AND ANURAG RECOMMEND WALKING TO KEEP FIT

    It's time to put on your walking shoes. In keeping with its philosophy of placing the customer's health first, Max Bupa Health Insurance Company has come up with Max Bupa Walk for Health in association with TIMES NOW. The event, to be held on November 4 in Mumbai, New Delhi and Bangalore, will be attended by producer Anurag Kashyap and the cast of his upcoming film Luv Shuv Tey Chicken Khurana — Kunal Kapoor and Huma Qureshi. 
    Says Manasije Mishra, CEO (designate), Max Bupa HealthInsurance Company, "This is a unique initiative keeping with our mission to help people lead healthier, more successful lives. Walking is the simplest, most accessible form of physical activity. Through this initiative, we aim to spread awareness about the benefits of walking and encourage people to walk more everyday." 
    Here's what the stars have to say about the initiative: 
Kunal Kapoor: Walking is something very close to my heart. I make sure to head out for a walk early in the morning. It is something that everyone can do. Walk for Health is a superb initiative wherein someone is coming forward to mobilise people to take up walking as a daily habit rather than as an exercise. 
Huma Qureshi: This is a great step, wherein you bring out the benefits of walking. Anurag Kashyap: Walking is part of my daily routine. I walk to office from home and back and make sure to clock in half an hour of walking each day. This initiative will certainly inspire people to walk on November 4 and continue walking thereafter. 
    Participants can register online at at www.walkforhealth.in or by calling 1800 3010 3333. People of all age groups can participate free of cost.

Kunal Kapoor, Huma Qureshi and Anurag Kashyap

Insurance, infra scrips gain on reform buzz

Mumbai: Stocks of companies from the infrastructure sector and also those that have stakes in insurance companies witnessed hectic activity in Wednesday's market on expectation that the government would soon announce some reforms in these two sectors. 

    On the other hand, stocks of some of the software companies witnessed selling on fears that the recent rally in the rupee against the US dollar would pull down their revenues from exports. 
    Among insurance stocks, Max India closed 6.4% higher at Rs 233, while Bajaj Finserve was up 3.8% at Rs 925, Aditya Birla Nuvo gained 1.1% at Rs 910. Among infrastructure stocks, IVRCL was up 4.6% at Rs 51 while Gammon India closed 4.2% higher at Rs 51.50. 
    Among the IT stocks, Infosys closed 1.2% lower at Rs 2,579 while Wipro was down 0.7% at Rs 381. Both the stocks closed lower on fears that these companies, already under pressure due to slow revenue growth over the last several quarters, may witness some slide in quarterly revenues because of the recent rally in the rupee which on Wednesday closed at 52.17 to a dollar, a five-month high, compared to 56 just three months ago.

What you should know when buying insurance for your parents

Mediclaim for senior citizens is certainly not as easily available nor is it as comprehensive (as a policy) as mediclaim for someone who has not yet crossed the age of 60, but it is still available.

By PersonalFN

In recent years, life expectancy has been increasing thanks to medical advancements. With inflation however, these medical advancements have also been becoming more expensive.

As it is not uncommon to find that as senior citizens, we are often no longer in the pink of health, hence it is important to assess the opportunities available to save on medical costs, by way of takinghealth insurance .

As a senior citizen, a key question in your mind would be "Can I buy health insurance above the age of 60?"

And the answer is Yes, you can.

Mediclaim for senior citizens is certainly not as easily available nor is it as comprehensive (as a policy) as mediclaim for someone who has not yet crossed the age of 60, but it is still available. Certain insurance companies such as National Insurance, Oriental Insurance, New India, United, Apollo Munich, Max Bupa and others do offer health plans for senior citizens.

These plans are sometimes limited or restricted when compared to regular health insurance plans, so it is important to read the policy document very carefully, so you understand exactly what the policy offers you, and exactly what it does not offer you.

Here are some of the main features associated with the policies offered by these companies:

Entry Age: 
Most of the PSU companies are providing Mediclaim for senior citizens between the ages of 60-80 years. It means that if you have not taken this policy and have crossed 60 years of age then you can still approach PSU Mediclaim insurers and get yourself insured. However some companies limit entry age to 69 years of age i.e. once you cross 69, you are not eligible to take the policy.

There are also private insurers, such as Max Bupa and Apollo Munich, to name a few who offer health insurance with no maximum entry age. This means that the policies are not specifically for senior citizens, they are for all individuals, and even senior citizens can apply to become policy holders.

Renewal Age: 
Renewal age is the time till which you can renew your Mediclaim policy. This age limit is generally 90 years but it might differ from one insurer to another.

Pre-Existing Diseases: 
Pre-existing diseases are those diseases which you might already be suffering from; such diseases are typically covered after 1 or 2 years from the date of taking up of the policy (differs from company to company). However, certain policies, such as National Insurance's Varistha Senior Citizen Policy categorically states that it will never cover a pre-existing critical illness, under its critical illness rider, it will however cover hospitalization expenses under its health insurance cover.

Premium: 
The most important factor which comes to your mind before taking up the policy is the premium which you have to pay out of your pocket. The premium for such policies is generally high as the age of the life to be insured is above 60 years and if there is any pre-existing disease then the insurance company will charge an extra premium to cover that particular disease. The additional premium is to compensate for the additional risk taken on by the insurance company to cover a policy holder who has a pre existing disease.

Sum Assured: 
Sum Assured is the amount of insurance cover you get at the time of taking the policy. Public insurers that are providing Mediclaim for senior citizens offer coverage of about only Rs. 1 or 2 Lakhs which is pretty low keeping in mind the increasing medical cost.

Private insurers offer more, going as high as Rs. 15-20 lakhs under family floaters, but keep in mind premium and co-payment both.

Co-payment: 
Co-payment means the fixed percentage of total bill which you have to pay in case of a claim. This percentage is already defined in the policy document while taking up the policy. Co-payment clause is around 10% or 20% for such policies. For some policies, it can go as high as 40%.

Tax Benefit: 
The premium paid by you for such policies are deductible from your income u/s 80 D of Income Tax Act, 1962.

No Claim Bonus: 
If you buy this policy and do not claim anything during the year than in your subsequent renewal of the policy your sum assured will be increased by 5%, upto a maximum limit of 50% or 30% (differs from company to company).

What should you do? 
As a senior citizen looking for a health insurance policy, you currently have the following options:

INSURANCE COMPANY	POLICY NAME
Bajaj Allianz General Insurance Co. Ltd	Silver Health policy
National Insurance Company Ltd	Varistha Mediclaim for Senior Citizens
Star Health and Allied Insurance Company Ltd	Senior Citizen Red Carpet policy
New India Assurance Company Ltd	Senior Citizen Mediclaim policy
Oriental Insurance Company Ltd	Senior Citizen Specified Disease Insurance
United India Insurance Company Ltd	Senior Citizen Policy

RBI hurdle for insurance broking

Central Bank Does Not Want Additional Risks For Lenders

Mumbai: Banks may not immediately get to sell products of multipleinsurance companies as the Reserve Bank of India is not very keen on them being exposed to new risks. 
    Unlike a corporate agency where the life insurance company is responsible for missteps by the agent, in a broking model it is the intermediary who takes responsibility for mis-selling. 
    "Banks are corporate agents (Bancassurance) because they voluntarily applied for corporate agency license and got their licences. They cannot unilaterally be 'notified' as brokers now. They have to apply for a broker's license and obtain it," said K K Srinivasan, former member, IRDA, in response to a query on whether banks can start selling products of multiple companies. 
    "There are also some points of law here. Agents representinsurance companies. Their acts and omissions are that of theinsurance companies. Brokers are independent. They legally represent the customer and are liable for wrong professional advice given. Whether the banks will be willing to take on this liability?" he questioned. 
    In a statement on Monday, the finance minister had said that the present Bancassurance model of 'one bank, one insurance company' where the bankacts as an agent of the insurance company would be replaced by a broking model. "It is desirable that banks may act as 'brokers' where the fiduciary responsibility of the bank will be to the policy-holder. IRDA will consider notifying banks as 'brokers'." 
    As insurance broker, the bank may sell the products of more than oneinsurance company. This will provide the intended policy-holder a bouquet of products from which he/she may chose the appropriate product based on his/her needs and will also prevent mis-selling," the statement said. 
    IRDA norms require the broking firm to be a legal entity under its jurisdiction. This means that banks would need to float a subsidiary to acquire a broking licence. According to regulatory sources, RBI does not want banks to float new subsidiaries in the financial sector, particularly ones where the contingent liability would be high. An indication that a broker is exposed to contingent liabilities is the IRDA requirement that all brokers purchase a professional indemnity policy which will compensate for any errors or frauds by employees in selling insurance. Also, foreign shareholding into broking firms is regulated and is capped at 26%. This would mean that foreign banks would not be allowed to get into broking as they would not pass the FDI test.WHO WILL TAKE RESPONSIBILITY? 
äIn the broking model, banks will be responsible for mis-selling, not theinsurance company 
äIRDA norms require the broking firm to be a legal entity, which means banks will have to fl oat a subsidiary to acquire a broking licence 
äRBI does not want banks to fl oat new subsidiaries in the fi nancial sector, particularly ones where the contingent liability would be high

Insurance rejig to give tax breaks, easier policy terms

Pension Plans May Get More I-T Exemption New Delhi: The government on Monday announced a raft of new measures—including a simpler policy structure, easier know your customer (KYC) norms and possible tax breaks — aimed at providing a fillip to the insurance sector which is expected to generate long-term funds for investment, especially for infrastructure.      A decision on tax benefits ranging from service tax exemption for certain policies to additional exemption for investment in pension plans anddeduction for post-retirement medical scheme is expected by October 10, finance minister P Chidambaram told reporters while announcing the measures which he had promised soon after taking charge in August. The measures related to service tax can be implemented through notifications, but income tax-related changes may have to wait until the budget as the law needs to be amended.      This is the latest in a series of steps announced by the government since September 13 which are aimed at reviving investor sentiment and boosting growth. For life insurance firms, the moves would provide a lifeline amid falling sales, which dipped 9% during the last fiscal and were down over 3% during April-August 2012.      While the steps have been announced, the issues related to change in norms have to be notified by the insurance regulator IRDA, resulting in some scepticism. "On the face of it, they look positive. But it depends on how they are implemented," said HDFC Standard Life MD & CEO Amitabh Chaudhry, pointing to earlier attempts to fast-track product approvals, a key element of Chidambaram's game plan. WHAT'S IN IT FOR YOU?      Simpler policies and more choice for consumers      Fresh tax sops likely      More choice of companies at bank branches as they can sell products of more than one insurer      Apart from employers, employees and RWA members can also buy group insurance  HOW COMPANIES GAIN      Faster rollout that is likely to result in more innovation  More flexibility in managing expenses  BENEFITS FOR ECONOMY  Private sector infrastructure firms to get a boost from the new investment norms Second rung companies can hope to get more funds via bonds Higher sales will result in access to more long-term funds for government and corporate sector Life covers to be simplified, KYC won't be a barrier      Another key step in the government's package, finalized after talks with the industry and the regulator, relates to simpler terms of life insurance policies aimed at removing the clutter that has come to be associated with such covers. Several investors have shied away from buying insurance policies due to the complicated structure.      "This is truly transformational. It addresses the core issue which is customer satisfaction. It will result in simpler products which are easy to understand along with protecting their interests," said ICICI Prudential MD & CEO Sandeep Bakshi. In addition, KYC or the requirement to submit a fresh set of documents establishing the identity and address will no longer hamper policy purchases as a check done by a bank at the time of opening an accountwill be used for insurance too.      To get more people on board and cover their risks, IRDA will issue guidelines which will allow homogenous groups such as taxi drivers, nurses or even members of resident welfare associations to come together to buy life insurance. Currently, only employer-employee groups are recognized for group business, the finance minister said. He also promised to end the arbitrage between "units" and traditional policies such as money-back, which the industry viewed as a pointer to an across-the-board reduction in commission paid to agents, which can be as high as 40% in some cases. "It appears to be a move to realign the commission and expense  structure and bring the traditional products in line with Ulips," said Reliance Capital CEO Sam Ghosh.      To address complaints of mis-selling by banks, the government is also prodding IRDA to agree on a new mechanism. If the move goes through, banks will turn into brokers for several insurance companies instead of being an agent for one life and one general insurance company. In several cases, where banks have also set up insurance companies, a common complaint is that the branches hawk the in-house insurers' policies. Even if IRDA has come on board the government also needs to get RBI, the banking regulator, to the changes, something that it was reluctant to do earlier.      There were sops for the industry too with the government announcing easier investment norms for the non-AAA rated companies. This means that more bonds issued by even second rung companies would be eligible to get subscription from life insurance companies. Chidambaram said that the change in norms will result create space for an additional 12.5% of the funds with insurance companies to flow into non-AAA-rated securities.      Also, infrastructure sector special purpose vehicles set up by the private sector, which could be entities in the roads or power sector, can now hope to receive funds from an insurer, a benefit that was hitherto available only for arms of public sector companies.      PChidambaram, however, refused to discuss the issue of higher FDI in insurance although he did mention that the regulator had backed an increase in the ceiling from 26% to 49%. A Bill is currently pending in Parliament, which is being opposed by several political parties.