General Insurance Industry-2011-12 (Figures in Rs. Cr.)
Thursday, 26 April 2012
With issue of R2 Licence Religare Health Insurance is near to start operations.
This will be 4th stand alone health insurance company in the country. All the
Partners in this company are Indian i.e. Religare Group & 2 banks.
We welcome the entry of 4th stand alone health insurance Company.
Monday, 26 March 2012
Documents needed for filing claim under 3rd party claim for accident to MACT
Following documents should accompany the petition for filing claim under 3rd party claim for accident to MACT:
1. Copy of the FIR registered in connection with said accident, if any.
2. Copy of the MLC/Post Mortem Report/Death Report as the case may be.
3. The documents of the identity of the claimants and of the deceased in a death case.
4. Original bills of expenses incurred on the treatment along with treatment record.
5. Documents of the educational qualifications of the deceased, if any.
6. Disability Certificate, if already obtained, in an injury case.
7. The proof of income of the deceased/injured.
8. Documents about the age of the victim.
9. The cover note of the third party insurance policy, if any.
10. An affidavit in support of the above documents and detailing the relationship of the claimants with the deceased.
You will find this list useful so that complete documents are lodged and claim / case is settled at the earliest.
Following documents should accompany the petition for filing claim under 3rd party claim for accident to MACT:
1. Copy of the FIR registered in connection with said accident, if any.
2. Copy of the MLC/Post Mortem Report/Death Report as the case may be.
3. The documents of the identity of the claimants and of the deceased in a death case.
4. Original bills of expenses incurred on the treatment along with treatment record.
5. Documents of the educational qualifications of the deceased, if any.
6. Disability Certificate, if already obtained, in an injury case.
7. The proof of income of the deceased/injured.
8. Documents about the age of the victim.
9. The cover note of the third party insurance policy, if any.
10. An affidavit in support of the above documents and detailing the relationship of the claimants with the deceased.
You will find this list useful so that complete documents are lodged and claim / case is settled at the earliest.
Should Insurance Companies reward customers having good eating habits?
Scientific studies reveal that there is a definite correlation to what we eat to our health conditions. Lot of research is going on and there have been many studies which have established this correlation. Recently, we have come across two different studies which have shown that the two most deadly diseases especially are related to the lifestyle and prove have definite correlation to what we eat.
Study 1 “Soft drinks raise heart attack risk”.
“Drinking one sugar laden soft drink every day dramatically raises the odds of having a heart attack” A study has confirmed. Diet varieties of Soft drinks /Cakes/ Ice-cream /or frozen yogurt (that use artificial sweeteners) got a clean bill of health. It is found out that a daily sugar sweetened drink raised risk of heart attack – including a deadly one – by 20%.
The study, reported in the journal “Circulation” also found that the more sugary drinks someone had, including still fruit squashes with added sugar, the chances of risk rose. Water, coffee and tea are the best drink choices, followed by low fat milk. Tea and coffee are okay too, but only if taken without sugar.
Study 2 “Regular & daily intake of large bowl of white rice increases chances of diabetes”
British Medical Journal has covered a study which was conducted over a period of 4 to 22 years. According to this “Eating one large bowl of white rice every day increases the risk of diabetes by 11%.”
A team of Harvard School of Public Health and Harvard Medical School who looked at 2 studies in Asians (Chinese and Japanese) and two in western populations found that every large bowl of white rice eaten a day is linked to an 11% increased risk.
As these studies are having large sample base and are conducted over long period we come to the conclusion that it is high time that the insurance companies in India will start rewarding people, who have healthy food habits. At the same time in comparison to this diet if the person consumes too much of sugar laden soft drink or is habitually a rice eater then premiums can be loaded.
We invite comments from you.
Scientific studies reveal that there is a definite correlation to what we eat to our health conditions. Lot of research is going on and there have been many studies which have established this correlation. Recently, we have come across two different studies which have shown that the two most deadly diseases especially are related to the lifestyle and prove have definite correlation to what we eat.
Study 1 “Soft drinks raise heart attack risk”.
“Drinking one sugar laden soft drink every day dramatically raises the odds of having a heart attack” A study has confirmed. Diet varieties of Soft drinks /Cakes/ Ice-cream /or frozen yogurt (that use artificial sweeteners) got a clean bill of health. It is found out that a daily sugar sweetened drink raised risk of heart attack – including a deadly one – by 20%.
The study, reported in the journal “Circulation” also found that the more sugary drinks someone had, including still fruit squashes with added sugar, the chances of risk rose. Water, coffee and tea are the best drink choices, followed by low fat milk. Tea and coffee are okay too, but only if taken without sugar.
Study 2 “Regular & daily intake of large bowl of white rice increases chances of diabetes”
British Medical Journal has covered a study which was conducted over a period of 4 to 22 years. According to this “Eating one large bowl of white rice every day increases the risk of diabetes by 11%.”
A team of Harvard School of Public Health and Harvard Medical School who looked at 2 studies in Asians (Chinese and Japanese) and two in western populations found that every large bowl of white rice eaten a day is linked to an 11% increased risk.
As these studies are having large sample base and are conducted over long period we come to the conclusion that it is high time that the insurance companies in India will start rewarding people, who have healthy food habits. At the same time in comparison to this diet if the person consumes too much of sugar laden soft drink or is habitually a rice eater then premiums can be loaded.
We invite comments from you.
Monday, 19 March 2012
Government wishes PSU banks going to exit from Insurance, which is a non core activity.
Everyone one wants to diversify when times are good but when the times are tough there is heat to squeeze. The banks have been asked by the government to get out of non core business such as Insurance. It could be a big blow to banks if this is implemented. Some of the banks would have to exit joint venture and industry would be seriously hampered, considering the agency model for insurance is under question due to high attrition and lack of professionalism.
As per the news published in Economic Times the Government’s pre-conditions for capital infusion stems from the concern that a number of non-core banking activities, particularly life and non-life insurance activities are capital guzzlers. Banks have to infuse capital for years in these ventures since it may take several years to break even. "The government is worried that demand for capital will rise every year if banks decide to undertake these activities. As an owner, they will then be obliged to infuse more capital to sustain the bank, something they would want to avoid when the fiscal deficit is out of control," said a senior bank official from public sector bank.
If this is indeed implemented then we as a country will need new non banking players to enter the insurance business In the recent past many business houses who entered got disheartened and have been in the mode to exit. Some of these are
• Bharti Axa : Bharti
• DLF Pramerica : DLF
• Future Generali : Future group
We wonder whether 49% FDI in insurance sector will make much impact.
Everyone one wants to diversify when times are good but when the times are tough there is heat to squeeze. The banks have been asked by the government to get out of non core business such as Insurance. It could be a big blow to banks if this is implemented. Some of the banks would have to exit joint venture and industry would be seriously hampered, considering the agency model for insurance is under question due to high attrition and lack of professionalism.
As per the news published in Economic Times the Government’s pre-conditions for capital infusion stems from the concern that a number of non-core banking activities, particularly life and non-life insurance activities are capital guzzlers. Banks have to infuse capital for years in these ventures since it may take several years to break even. "The government is worried that demand for capital will rise every year if banks decide to undertake these activities. As an owner, they will then be obliged to infuse more capital to sustain the bank, something they would want to avoid when the fiscal deficit is out of control," said a senior bank official from public sector bank.
If this is indeed implemented then we as a country will need new non banking players to enter the insurance business In the recent past many business houses who entered got disheartened and have been in the mode to exit. Some of these are
• Bharti Axa : Bharti
• DLF Pramerica : DLF
• Future Generali : Future group
We wonder whether 49% FDI in insurance sector will make much impact.
On April 1, 2012 the service tax on health insurance premium would increase to 12.36% from the existing rate of 10.30%. It means that you have to pay a higher premium. For example if you pay a premium of Rs. 20,000/- for the health insurance premium, this is how you will be impacted:
It will be much better for you to go in for 2 years policy being offered by certain Insurance companies by giving discount of 7.5%.
From the above example you can see that you will be able to save Rs 3,721 on the 2nd year premium which is equal to 16.87% whereas banks FD for the same duration would not give you more than 6%-7% returns.
Thursday, 15 March 2012
Health Insurance may Touch Rs. 141500 crores if all are covered
In my blog of 1st February,2010 I had come out with a suggestion that all senior citizens should be asked compulsorily to go in for health insurance so that this portfolio increases. For initiating this great initiative, Government can support the scheme initially with some subsidy and later on reduce the same.
Hindustan Times has covered the news according to which now Indian Government is considering to cover all citizens with Health Cover during Five year Plan (2012-2017). It is a welcome step by the government to include all under the ambit of health Insurance. It is heartening that Clinical Establishment will also be regulated.
Let us see what it means for us. Below are the assumptions
India population: 120 crores
Family size: 5
Households: 24 crores
If we take an average of 5 lacs crore dedicated for healthcare for the 12th Five year plan it translates to expenditure of 1 lac crore each year. Dividing this by the 24 crore households the average expenditure comes to around Rs.4167each year. The question arises: Is Rs. 4167/- per house hold sufficient?
If we talk of providing health insurance to all the people the average annual premium per family would be
If we talk of only insurance premium required each year to cover the households the average cost per family each year would be Rs. 5896/- . Clearly there is a deficit of Rs 1700/- per year for each household.
However, what will be interesting is to know how the government will be able to bridge this deficit. Even in countries where it exists for example Australia Medicare levy (tax) is charged. The levy funds the scheme that gives Australian residents access to health care. The Medicare levy surcharge (additional tax) may apply to high income individuals or families who don't have private patient hospital cover or Mediclaim.
In my blog of 1st February,2010 I had come out with a suggestion that all senior citizens should be asked compulsorily to go in for health insurance so that this portfolio increases. For initiating this great initiative, Government can support the scheme initially with some subsidy and later on reduce the same.
Hindustan Times has covered the news according to which now Indian Government is considering to cover all citizens with Health Cover during Five year Plan (2012-2017). It is a welcome step by the government to include all under the ambit of health Insurance. It is heartening that Clinical Establishment will also be regulated.
India population: 120 crores
Family size: 5
Households: 24 crores
If we take an average of 5 lacs crore dedicated for healthcare for the 12th Five year plan it translates to expenditure of 1 lac crore each year. Dividing this by the 24 crore households the average expenditure comes to around Rs.4167each year. The question arises: Is Rs. 4167/- per house hold sufficient?
If we talk of providing health insurance to all the people the average annual premium per family would be
If we talk of only insurance premium required each year to cover the households the average cost per family each year would be Rs. 5896/- . Clearly there is a deficit of Rs 1700/- per year for each household.
However, what will be interesting is to know how the government will be able to bridge this deficit. Even in countries where it exists for example Australia Medicare levy (tax) is charged. The levy funds the scheme that gives Australian residents access to health care. The Medicare levy surcharge (additional tax) may apply to high income individuals or families who don't have private patient hospital cover or Mediclaim.
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