A small photo studio in T Nagar, Chennai, sold more than 50 general insurance policies in the last months alone. All that a person had to furnish was his name, address and the nominee’s name. The policy document will be issued in 15 minutes, shop owner M Raju Mani said.
With the general insurance penetration at a dismal 0.60 per cent (measured as a percentage of GDP), many companies feel that selling the policies through photo studios, grocery stores and even telephone booths would help improve the figure.
“We need to think outside the box and need alternative channels. If telecom companies are able to use grocery stores, petty shops and other small outlets, why not insurance companies?” said an Irda official.
The Committee on Distribution Channels, headed by LIC ex-chairman N M Govardhan, in its report recommended that one of the biggest challenges for the general insurance companies was getting agents to sell their products. The report noted that people are not interested in becoming general insurance agents as the commission is quite low.
In 2005-06, around 40,551 agents were licensed by the general insurance companies compared to 7,21,696 agents employed by the life insurance companies. The committee was constituted by the Insurance Regulatory and Development Authority (Irda).
Private insurers have already gone ahead and started exploring such channels. Bajaj Allianz General Insurance Company has introduced point-of-sale concept on a pilot basis to sell its products.
The point-of-sale concept started in Delhi, where the company’s agent will go to the customers’ homes along with a handy gadget like a blackberry to issue policies on the spot, said Swaraj Krishnan, chief executive officer, Bajaj Allianz General Insurance Company.
The company is also talking to some medical pharmacy chains to sell its health and home insurance products. For motor insurance, the company is in talks with oil companies to sell its products through their retail outlets across the country, he added.
The gadget costs about Rs 50,000. The company wants to supply the gadgets to all its branches, but there is shortage of these machines since there are only two Korean suppliers.
Similarly, ICICI Lombard General Insurance sells its health and motor policies through photo studios and malls. The photo studio in Chennai is selling both the policies.
Wednesday, August 27, 2008
Saturday, August 23, 2008
HIV Positive to get insurance policy
An insurance company, in a first of its kind initiative has brought an insurance policy, which will cover HIV positive patients. The illness caused by HIV due to the weak immune system of the patients will be covered under this policy.
This policy has been launched by Star Health and Allied Insurance Company, The policy will cover cover hospitalisation expenses incurred on opportunistic illness acquired by an HIV+ person.
Uday Chandran, VP Government & New Initiatives, Star Health & Allied Insurance Company said, "The policy is unique not only in India but also in the world. It will cover hospitalisation expenses as a result of opportunistic diseases acquired by the HIV+ person.”
“The policy would not cover any treatment cost for HIV like Anti Retro- Viral Therapy (ART) and would also not cover conditions, which existed before enrolling into the policy. It will only cover illness acquired by such persons due to weakness of their immune system,” he added.
TB & gastroenteritis, two most common diseases affecting HIV positive patients will also not be covered under this policy. Stating the reason for this exclusion Chandran said that the company wanted to keep the policy as cost effective as possible.
On asked if the policy would take care of expenses once a HIV+ person is declared full blown AIDS patient, he said that in such cases, lump-sum amount is paid to the policy holder as per the sum insured by him or her.
This policy has been launched by Star Health and Allied Insurance Company, The policy will cover cover hospitalisation expenses incurred on opportunistic illness acquired by an HIV+ person.
Uday Chandran, VP Government & New Initiatives, Star Health & Allied Insurance Company said, "The policy is unique not only in India but also in the world. It will cover hospitalisation expenses as a result of opportunistic diseases acquired by the HIV+ person.”
“The policy would not cover any treatment cost for HIV like Anti Retro- Viral Therapy (ART) and would also not cover conditions, which existed before enrolling into the policy. It will only cover illness acquired by such persons due to weakness of their immune system,” he added.
TB & gastroenteritis, two most common diseases affecting HIV positive patients will also not be covered under this policy. Stating the reason for this exclusion Chandran said that the company wanted to keep the policy as cost effective as possible.
On asked if the policy would take care of expenses once a HIV+ person is declared full blown AIDS patient, he said that in such cases, lump-sum amount is paid to the policy holder as per the sum insured by him or her.
Wednesday, August 13, 2008
Now, insurers can`t refuse health cover renewal
In a move that will bring cheer to health insurance policyholders, non-life insurers are finalising the contours of a new product that will have a common minimum standard cover and will be renewable and portable across companies.
The move being pushed by the General Insurance Council, the self-regulatory body, will mean that insurers cannot refuse renewal of policies on grounds of adverse claims. Similarly, all benefits will continue to be available to an insured person even if he or she switches to a new company.
While pre-existing diseases are only covered after four years of a policy, an insured will be eligible to these benefits from the first year of switching to a new company. In addition, cumulative bonus and discounts will also be available after the change.
General Insurance Council Secretary General K N Bhandari said those buying a health cover at an early age will not be denied renewal on grounds of adverse claims. So, if someone buys the new cover at, say, 30, he will still get a cover at 50 years even if the he has developed heart problems and has filed for claims.
Insurers will approach the Insurance Regulatory and Development Authority for approval of the new product that will come with all these features later this month. Premium is, however, yet to be finalised, but will be affordable, Bhandari said.
“Insurance companies will not refuse renewing the health insurance policy except on specified grounds such as moral hazards. In case the insured has cheated the insurer or not disclosed the full facts regarding his health or in those cases where there is no correct exposure, we will refuse renewing the cover,” he added.
Health insurance policies contain the renewability clause that specifies the type of the contract and terms for renewal, which are of three types. The first type is optionally renewable, where the insurer has the option to renew the policy on its terms. This is the cheapest policy for the insured.
The second type is guaranteed renewability, the premium rating for which depends on the claims experience. The third type, which is the most expensive variant, cannot be cancelled and renewal is guaranteed, but the price can vary.
The move being pushed by the General Insurance Council, the self-regulatory body, will mean that insurers cannot refuse renewal of policies on grounds of adverse claims. Similarly, all benefits will continue to be available to an insured person even if he or she switches to a new company.
While pre-existing diseases are only covered after four years of a policy, an insured will be eligible to these benefits from the first year of switching to a new company. In addition, cumulative bonus and discounts will also be available after the change.
General Insurance Council Secretary General K N Bhandari said those buying a health cover at an early age will not be denied renewal on grounds of adverse claims. So, if someone buys the new cover at, say, 30, he will still get a cover at 50 years even if the he has developed heart problems and has filed for claims.
Insurers will approach the Insurance Regulatory and Development Authority for approval of the new product that will come with all these features later this month. Premium is, however, yet to be finalised, but will be affordable, Bhandari said.
“Insurance companies will not refuse renewing the health insurance policy except on specified grounds such as moral hazards. In case the insured has cheated the insurer or not disclosed the full facts regarding his health or in those cases where there is no correct exposure, we will refuse renewing the cover,” he added.
Health insurance policies contain the renewability clause that specifies the type of the contract and terms for renewal, which are of three types. The first type is optionally renewable, where the insurer has the option to renew the policy on its terms. This is the cheapest policy for the insured.
The second type is guaranteed renewability, the premium rating for which depends on the claims experience. The third type, which is the most expensive variant, cannot be cancelled and renewal is guaranteed, but the price can vary.
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