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Life Insurance

Meaning of life Insurance (Understand the concept of life insurance)

Meaning of life Insurance (Understand the concept of life insurance)

So, you want to understand the meaning of life insurance? This article will talk about its concept, benefits, features, types, and more.

  • Meaning of life insurance
  • Features of life insurance
  • Benefits of life insurance
  • Types of life insurance
  • Companies that provide life insurance plans

Meaning of life insurance

In simple words, Life insurance is a contractual agreement between the insurance company and the insured, where the insurance company will be liable to pay a sum assured to the nominees or legal heirs of the insured in the event of policyholder’s demise. The insurance company provides this life coverage in exchange for a premium amount.

Features of life insurance

Now, let us talk about the features of a life insurance policy so that you can understand it better

Insured – The individual who is provided life coverage by the insurer is called an insured. After his/her demise, the insurance company will be liable to pay the sum assured to the nominees or legal heirs of the insured person.

 

Premium – A premium is a fee that the insured pays to the insurance company to obtain the benefit of a life cover. Maturity- Maturity is the period at which the policy term is completed and the life insurance contract concludes.

 

Sum assured – It is a pre-determined amount that the insurance company will have to pay to the insured’s family in the unfortunate event of his death.

 

Nominee– A nominee is an individual who is entitled to receive the sum assured. The nominee’s name and details will be mentioned in the policy contract by the insured individual. Usually, spouses, children, parents are taken as nominees in most cases.

 

Policy term – A policy term is a specified period of time during which the insurance company provides life coverage to the insured. The policy is said to be in force during this period.

 

Claim– In the unfortunate event of the insured’s demise, the nominees file a claim with the insurance company in order to receive the sum assured.

Benefits of life insurance

The purpose of life insurance is to financially protect your loved ones from the monetary loss that they may have to face in your absence. Let us look at some of the most important benefits of a life insurance policy.

Financial security– A life insurance policy will provide your loved ones financial safety from any kind of monetary loss that they may face in the event of your demise. A good life insurance plan can help your family repay any kind of financial liabilities such as personal loans, auto loans, home loans, etc.

 

Wealth creation – Certain life insurance policies such as ULIP policies offer the benefit of both life coverage as well as investment.
A certain portion of your premium will be used to provide you a life cover while the rest will be invested in debt and equity markets, depending on your risk appetite. Such plans not only provide you a life cover but also invests your money systematically and grows your corpus to beat inflation.

The sum assured along with the return from your investments will be paid to the loved ones of the policyholder in the event of his death.

 

Tax benefit – The premium paid towards your life insurance can be claimed for income tax deduction under Section 80C of the Income Tax Act, 1961. The premium paid for your life insurance is eligible to a maximum tax deduction of up to Rs.1.5 lakh. Also, any payouts received from the insurance company are tax-free.

 

Maturity benefit – Certain life insurance policies also provide you savings benefits. If the policyholder survives the policy period and no claims have been made, the total premium paid will be returned to the insured as savings benefit at the end of the policy term.

 

Loan facility – You can also avail of a loan against certain life insurance policies.

Types of life insurance plans

There are various types of life insurance policies. Let us discuss them in detail.

Term insurance plans

A Term insurance plan is a traditional and most basic plan. This plan provides a life cover to the insured for a specified policy term. In case of death of the insured during this policy term, the sum assured will be paid to the nominees of the policy.

Some term insurance plans also come with survival benefits. In such a case, if the policyholder survives during the policy term, he will receive a certain sum as a survival benefit.

Features of term insurance

  • Provides you a high life cover at an affordable premium
  • Provides coverage for a longer duration (up to 30-year policy term)

Whole life insurance

Whole life insurance provides coverage to the insured for the entirety of his life (generally up to 100 years of age).

Features of whole life insurance plans

  • Coverage is provided up to 100 years of age.
  • Premium under a whole life plan is generally paid for a limited period.
  • Whole life insurance plans come with different variants such as endowment assurance plans, money back plans, unit-linked plans, and more.

Unit-linked insurance plans

Unit-linked plans are also known as market-linked plans. It is a hybrid plan that provides you the benefit of life cover as well as investment returns. A part of your premium paid is used to provide you life coverage and the remaining is invested in debt/equity markets. The legal heir/nominee shall receive the assured sum as a death benefit if the policyholder dies during the policy term. On maturity of the policy, you will be paid the fund value which is equal to the premiums invested along with the returns generated by it over the term.

Features of ULIP

  • You can choose the type of investment fund to invest in according to your risk appetite.
  • You can withdraw your funds after the completion of 5 years of policy in certain plans.
  • You can switch from one investment fund to another.
  • Higher of the sum assured or fund value shall be paid to the nominee on the death of the policyholder. However, on maturity, the fund value will be paid.

Endowment assurance plans

Endowment assurance plans provide the benefit of a life cover along with guaranteed savings benefits. The policyholder will receive a lump sum amount if he/she survives until the maturity period of the policy, or the nominees shall receive the sum assured on the demise of the policyholder, whichever occurs first.

Features of endowment assurance plans

  • The life cover provided is relatively lower than other plans.
  • Coverage can be provided ranging from 10 years to 30 years

There are 2 types of Endowment Plans- Participating plans and Non-participating plans. The former earns a bonus will the latter plan does not.

Money Back Plan

Under this plan, the policyholder will receive a certain percentage of his sum assured at fixed intervals. This will provide the policyholder with stable financial resources along with the benefit of a life cover. In case of the death of the policyholder, the entire assured sum shall be paid to the nominee of the policyholder irrespective of the survival benefits paid earlier.

Features of money back plan

  • The tenure of a money-back plan ranges from 12- 15 years or 20-25 years.
  • The Money-back benefits can also be termed as survival benefits.
  • They are participating plans where the bonus is added.

Child insurance plan

Child insurance plans are designed to protect and safeguard your child’s future. Under this policy, life cover is provided until the end of the policy tenure. These plans also offer coverage to your child along with flexible payouts at important milestones during your child’s lifetime such as their 18th birthday or graduation, etc.

Not only that, if the insured parent dies during the policy term a death benefit is immediately paid to the child and the policy remains in force.

Features of child insurance plans

  • In case of the death of the insured parent, all premiums are waived off and the policy remains in force until its maturity date.
  • The insured can be a parent or a minor child, however, the primary policyholder will be the parent.
  • The child will become the policyholder when he turns 18 years of age and the policy will turn in his name.
  • Only parents of minor children are eligible for the plan.

Annuity plans/ pension plans

These plans are suitable for persons reaching the age of retirement and want to build a corpus for their life ahead. Under this plan, you can create a corpus for your retirement or avail lifelong income benefits from the accumulated sum. They are ideal plans for people looking to cater to their financial needs post-retirement.

Features of annuity/ pension plans

These plans come in 2 variants – a) Deferred annuity plans b) Immediate annuity plans

Under deferred annuity plans you choose a policy tenure and pay the premiums to generate your retirement corpus
Under immediate annuity plans, annuity payouts begin as soon as you buy the plan.

Life insurance riders

These are additional ride-on covers that you can buy along with the above-said policies to avail of better coverage benefits as per your needs. You will have to pay a little extra premium to avail the riders.

Features of life insurance riders

  • You can choose multiple riders on your base policy.
  • Riders have their own sum assured, lower or equal to the base life insurance policy.
  • They do not come with maturity benefit and come to for force when the specified event takes place.

Types of rider cover available

  • Critical illness rider
  • Hospital cash rider
  • Premium waiver rider
  • Accidental death and disability rider
  • Term rider

Name of insurance companies in India that provide life insurance

  • Life Insurance Corporation of India
  • Max Life Insurance Company Limited
  • HDFC Life Insurance Company Limited
  • ICICI Prudential Life Insurance Company Limited
  • Kotak Mahindra Life Insurance Company Limited
  • Aditya Birla Sun Life Insurance Company Limited
  • Exide Life Insurance Company Limited
  • Bajaj Allianz Life Insurance Company Limited
  • PNB MetLife India Insurance Company Limited
  • Reliance Nippon Life Insurance Company Limited
  • TATA AIA Life Insurance Company Limited
  • SBI Life Insurance Company Limited
  • Aviva Life Insurance Company Limited
  • Bharti AXA Life Insurance Company Limited
  • Future Generali India Life Insurance Company Limited
  • IDBI Federal Life Insurance Company Limited
  • Canara HSBC OBC Life Insurance Company Limited
  • Aegon Life Insurance Company Limited
  • Pramerica Life Insurance Company Limited
  • Star Union Dai-ichi Life Insurance Company Limited
  • IndiaFirst Life Insurance Company Limited
  • Edelweiss Tokio Life Insurance Company Limited

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Insurance

Insurance Policy cancellation letter (With a sample letter)

letter

Insurance Policy Cancellation Letter (Sample Letter)

Sometimes we may end up choosing an insurance policy that may not cover all our requirements. In that event, we may want to cancel that policy and upgrade to a better one. Let us talk about this process in detail.

In this article, we will tell you about an insurance cancellation letter and how you can write one simply and easily. Further, we will also show you a sample insurance cancellation letter for your reference.

Things You Should Know

1.) Free Look Period

While issuing insurance policies, insurance companies generally provide a free look period. If the policyholder is not satisfied with the policy he may choose to terminate his policy within the free look period. This free look period is usually anywhere between 15-30 days.

If you choose to cancel your policy within this free look period you will receive up to 100% of your premium. However, you shall have to pay any cost that the insurance company may have spent on any stamp duty or medical tests.

2.) Policy Cancellation After Your Free Look Period

  • You can also cancel your insurance policy after the free look period, but you will not receive your entire premium.
  • If you cancel your insurance policy within a month of the free look period you will be entitled to receive up to 75% of your premium paid.
  • If you cancel your insurance policy within 3 months after the completion of the free look period, you will be entitled to receive 50% of your premium.
  • If you cancel your insurance policy within 6 months of the free look period, you shall be entitled to 25% of your premium paid.
  • If you cancel your policy after 6 months of the free look period, you will not receive any refund of your premium paid.

Cancellation Process

Step 1: Fill the cancellation form

Insurance companies will provide you a standard health insurance cancellation form. Kindly make sure to fill the form correctly with valid information, mentioning policy details such as date of the policy, policy number, name of the policyholder, etc. You will also have to mention the reason for termination.

Step 2: Insurance company receives your request

Once the insurance company has received your cancellation request, they will get in touch with you shortly. The insurance company will inquire about the reason for the cancellation and try to provide you a resolution. However, if you have made up your mind about canceling the policy, the cancellation process will be initiated by the company and you will get your refund.

Insurance Policy Cancellation Letter

Steps to writing a cancellation letter

  • Step 1: Call your insurance company and get the correct contact details and email address of the cancellation department.
  • Step 2: Write a letter as following (example)

 

Sample Letter

 

 

Ram Kapur,
B04 Ganpat Apartments,
Shivaji Park,
Mumbai-400016,
Date 12-03-21

To,
The Claim Settlement Department,
HDFC ERGO General Insurance Company,

[Their full address]

Sub: Cancellation of insurance policy (Policy No xxxxxxxxxx)

Respected Sir/ Madam,

I, Ram Kapur, am writing you this letter to formally submit my request for the cancellation of my health insurance policy (Policy no xxxxxxx) with HDFC ERGO. The effective date for canceling the policy is 13-03-21. Please stop debiting any charges for the same. Further, kindly return any unused premium to the following bank account (mention your bank details).

Request you to send me the written confirmation of cancellation of the policy ASAP. Please do not hesitate to contact me regarding this matter. I look forward to your prompt attention on the same.

Yours sincerely,

Ram Kapur
Contact No (——-)

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Insurance for job loss (Meaning, Benefits and Workings)

Insurance for job loss (Meaning, Benefits and Workings)

Life is uncertain, one can never predict the future. Even specialized world-class analysts could not predict the black swan event of the global pandemic that is now known as the COVID-19 pandemic.
Millions of people during these times faced tremendous difficulties and millions of people all around the world lost their jobs.

In fact, according to a report of the National Statistical Office (NSO), India’s GDP was adversely affected due to the pandemic resulting in a sharp decline of 23.9% in the 1st quarter of 2020.

One must be cognizant of the harsh fact that anyone can lose their job and consider looking into insurance for job loss. A job loss insurance policy can provide the cushion that you require during difficult times.

Let us discuss the following:

  • What is job insurance?
  • Job insurance in India?
  • How does job insurance cover work?
  • Benefits of job insurance

What is job insurance?

Job insurance provides financial safety or security to the policyholder and his family for a specified period in case the policyholder loses their job.
The insurance company will pay the insured a sum assured if the policyholder loses his/her job due to reasons that are mentioned in the policy wordings.

Example

The policyholder may lose his job due to a certain critical illness or suffers from any kind of disability. The insurance company will compensate the policyholder for the same.

Job insurance in India

Insurance cover in India is not available as an independent policy yet. That being said, it can be taken as an additional rider on certain base policies.

Many insurance companies in India offer you job insurance cover along with a critical illness cover, personal accident cover, or even a home loan protection plan.

A job insurance cover is apt for you if you are the only earning member in your family, and want to mitigate any financial risks that you may have to face due to the loss of your job.

What risks are covered in a Job insurance cover?

Job insurance cover covers the following:

1) Removal from job

This cover provides financial cover in case the policyholder has lost his/her job.

2) Temporary suspension from employment

The cover will offer financial help to the policyholder in case the policyholder is suspended from his job due to specified reasons mentioned in the policy document.

3) Critical Illness

The insurance company will provide financial relief to the policyholder in case they have been diagnosed with a critical illness costing them their job (illness covered under the policy bond).

4) Loan EMI

The insurance company will pay the policyholder’s loan EMI up to a specified period providing the policyholder a breather while he looks for another job.

How does job insurance cover work?

  1. In case the policyholder loses his/her due to a valid reason, he must inform the insurance company about the incident immediately.
  2. The insurance company will appoint a claim assessor to inspect the case.
  3. Upon proper inspection, the insurance company will release the compensation sum to the policyholder.

Benefits of a job insurance Cover?

  1. Provides financial assistance to the policyholder in case of a job loss due to accident, chronic illness, any physical disability, etc.
  2. Protects the policyholder in case of a job loss due to termination or temporary suspension.
  3. Provides protection if the insured has a loan.
  4. Pre-medical tests are not mandatory while opting for this cover.

Eligibility for job loss insurance

Following is the eligibility criteria for job loss insurance:

  1. Individuals must have a fixed salaried income.
  2. Candidate should be employed in a registered company.
  3. This policy will not be provided to self-employed individuals.

What are the exclusions under job insurance cover?

The insurance company will not provide coverage under the following conditions:

  1. Non-compulsory or voluntary retirement from a job.
  2. Loss of job during the waiting period of the policy which is usually ranging from 30-90 days.
  3. Loss of job or termination due to poor performance.
  4. Termination due to any act of fraud or scam.
  5. Loss of job during the probation period.
  6. If the job is of contractual, casual, or temporary nature.

What are the steps to follow to claim Job insurance cover?

Step 1– In case of a job loss/ termination. The policyholder must immediately inform the insurance company about the same. The policyholder must write a formal letter providing the details about the incident attached along with proof of unemployment.

Step 2– The policyholder will be required to submit supporting documents to the insurance company to validate his claim.

Step 3– The insurance company will compensate the policyholder after a satisfactory inspection.

What are the documents that will be required in the claim process?

  • Singed and duly filled claim form needs to be submitted by the claimant.
  • Supporting documents as proof of unemployment.
  • Termination letter from the company.
  • Identification documents of the claimant.
  • Salary slips of previous months.
  • Form 16
  • Details about the claimant’s company in which he/she was employed.
  • Copy of policy documents.
  • Any other document requested by the insurance company.

List of job insurance plans

As mentioned earlier, job insurance is not available as an independent policy, it is available as an add-on cover along with certain policies.

Let us have a look at some of the plans that come with the benefit of a job insurance cover:

  1. Secure Mind by ICICI Lombard
  2. Home Suraksha Plan by HDFC ERGO
  3. Safe Loan Shield by Royal Sundaram

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Motor Insurance

How to update insurance details in mParivahan?

license

How to update insurance details in mParivahan?

It is important that you have your car insurance details updated in mParivahan as out-of-date information may lead to fines. Let us address how you can get your car insurance policy updated on the mParivahan App. But first, let us know what is mParivahan.

What is the mParivahan App?

mParivahan is an application made by The Road Transport and Highways Ministry of India. The app provides access to various important motor-related details such as vehicle owner name, car make, model, registration date, registering authority, fuel type, vehicle age, vehicle type, insurance validity, etc. It is also a reliable government app for All India RTO vehicle Registration Number Search.

First, let us discuss how an insurance policy gets automatically updated in the mParivahan app.

Whenever you buy an insurance policy from an agent or online. Its data gets stored in the insurer’s server. Supposing you have bought a car policy, the details of the car policy will get stored in the insurer’s server.
Now that your car policy details get stored in the insurer’s server, the insurance company will send your policy details to the RTO.
Post this, the vehicle details and the details of the policy will be matched verified, and updated in the mParivahan app within 72 hours.

What if your insurance details don’t get updated In the mParivahan App?

Usually, it takes up to 72 hours for your latest insurance policy details to get updated in the Mpravahan app, in case your policy detail is still not updated, You can write a mail to:- helpdeskmparivahan@gov.in
Addressing your query with valid car and policy details. You should receive a reply from the mParivahan support group within 24 hours and your policy will get updated shortly.

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Motor Insurance

How to get a duplicate car insurance copy online?

duplicate copy

How to get a duplicate car insurance copy online?

Your car insurance policy document is a legal document that mentions the inherent terms and conditions between the policyholder and the insurance company. It also acts as proof of insurance for the insured. Hence, it is crucial for the policyholder to safeguard their policy documents so that they may come in handy when required.

There can be instances where you may misplace, lose, or damage your policy documents. What should you do then? don’t worry! This article will talk about just that.

Let us show you how you can get your duplicate car insurance policy copy online

In this article, we will learn:

  • How to get your duplicate car insurance policy copy online?
  • How to get your duplicate car insurance policy copy offline?

How to get your duplicate car insurance policy copy online?

This is a faster and easier method to procure a copy of your car insurance policy.

Steps to get your duplicate car insurance policy copy online

Step 1– Kindly visit your insurance provider’s website.

Step 2– successfully log into your profile by entering valid details like your policy number, full name, registered mobile number, etc.

Step 3– Download your policy document via the insurance company’s online dashboard.

Step 4– View and examine your policy document and take a printout for safekeeping.

How to get your duplicate car insurance policy copy offline?

Now, let us guide you on how you can get your motor insurance papers offline:

Step 1– Intimate your insurance company
You must immediately inform your insurance company that you have lost your car insurance policy papers. Doing so immediately will enable the insurance company to initiate the process of issuing a duplicate copy of your insurance policy.

You can inform the insurance company at the earliest on their toll-free number or even via email. Further, you can also inform your insurance agent about the same.

You can find the relevant toll-free number and email address on the official website of your insurance company.

 

Step 2– File an FIR (First Information Report)
You will have to file an FIR with the nearest police station. This will act as proof that you have lost your car insurance papers. You will then have to submit the FIR copy to the insurance company to get a duplicate policy copy from them.

 

Step 3– Give advertisement in a local newspaper
After filing the FIR, you will also be required to submit an advertisement in a state newspaper, stating the loss of your car insurance policy. You will have to bear the expense for the ad from your own pocket and the insurance company will not be liable for the same.

 

Step 4– Submit an application to the insurance company
Apart from informing your insurer, you will also have to submit a formal written application to them requesting duplicate policy documents. Kindly provide them the application with all the valid details regarding your policy such as your policy number, full name, date of issuance, type of coverage, etc. Submit the written application along with the Police FIR.

 

Step 5- Acquire an indemnity Bond
The final step would be to get an indemnity bond made to acquire your policy documents and then submit them to the insurance company. The bond must include your full name and you will also require two witnesses to sign on it. You are required to sign an indemnity bond on non-judicial stamp paper and get it notarized. Once you submit the indemnity bond to your insurance company, they will issue you your duplicate car insurance policy copy.

Conclusion

it is mandatory to carry your car insurance documents while you travel. If you have misplaced/lost them follow the steps mentioned above to procure the insurance copy to avoid any penalties or fines.

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What is a grace period in insurance? (With Examples)

time

What is a grace period in insurance? (With Examples)

Due to our hectic lives, we may sometimes forget to pay our insurance premiums on time. To safeguard the interests of the insurer, the insurance company provides a grace period to pay the premium before the existing policy becomes invalid. This grace period varies from company to company, it usually varies between 15 -30 days.

Health insurance grace period

A health insurance grace period is the specified number of days that the insurance company provides to the insurer to pay the premium after its due date. The grace period could be between 15- 30 days. Post that, if the insurer fails to pay the premium the insurance company may choose not to accept the policy renewal application.

Most insurance companies will refuse the claims made by the insurer during the grace period.

Let us understand this with a simple example:

Mr. Raj’s health insurance policy has expired on 6th December 2019. His insurance company provides him with 30 days grace period, which means Mr. Raj has to pay his premium latest by 6th January 2020 or his policy will turn invalid. If Mr. Raj makes a claim during this period, the insurance company will reject the claim and Mr. Raj will not get any coverage.

Points to keep in mind

  • If the insured fails to pay his premium even in the grace period, any acquired No claim Bonus (NCB) and waiting period for preexisting conditions/exclusions will become invalid. That is, they will lose the benefit of extra coverage gained through NCB, and also the waiting period for specified illnesses will completely start again.
  • That is why one must pay their health premium on time and if somehow they miss they can pay during the grace period and get covered by the health insurance provider once again.

Motor insurance grace period

Similar to the above scenario, if you have failed to pay your car insurance premium on time, the car insurance company provides you with a few extra days to pay the premium after the policy’s due date so that your car policy does not lapse.

The grace period for car insurance varies between 3 days to 1 month.

For example

Mr. Rakesh’s car insurance policy has expired on the 10th of May 2021, according to the terms and conditions of Mr. Rakesh’s car insurance policy he has a grace period of 15 days before his car policy lapses, which means Mr. Rakesh will have to pay his premium latest by 25th of May 2021 to enjoy the continued benefit of his policy.

Life insurance grace period

Insurance companies recognize that sometimes due to various reasons the insurer may fail to pay his life insurance policy premium on time. Hence, it provides extra days to pay the premium after the due date of the policy.
According to Insurance Regulatory and Development Authority (IRDA), the grace period for a term life insurance policy is 30 days.

In term life insurance, the grace period may differ according to the premium payment method. Usually, the grace period is 30 days if the premium is paid annually and 15 days if it is paid monthly.

If the insurer still does not pay his premium within the grace period, his policy will lapse. This will result in the lapse of all of his life insurance benefits. Hence the policyholder must pay his premium on time to avoid any distress.

Further, It is to be noted that the life insurance policy remains active during the grace period and if anything happens to the insured, the nominee will still be entitled to the benefits.

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Edelweiss General Insurance Company Limited (Plans, Benefits and more)

Edelweiss General Insurance Company Limited (Plans, Benefits & more)

Edelweiss General Insurance is part of the Edelweiss Financial Group. The company is one of the leading players of general insurance in India and has been awarded a host of awards like the ‘Insuretech Company of the year 2020’, ‘Indian Express BFSI Digital Innovation Award 2019’, ‘Best Innovation Award 2021 by Finnoviti’, and more.

In this article, we will talk about the most important topics concerning Edelweiss General Insurance, such as:

  • Company overview
  • Products and services
  • Contact details

Company overview

Edelweiss General Insurance company Limited was founded in March 2016. It provides insurance services relating to health, motor, fire, marine, home insurance, and more. It is headquartered in Mumbai. The company has a claim settlement ratio of 85.54% and has sold over 10 thousand policies.

Products & Services offered

Edelweiss Motor Insurance

Third-Party motor insurance

This is a mandatory car insurance policy that provides financial coverage against any liabilities suffered in case of any loss/damage caused to the third party persons or their property.

What is covered?

  • Personal accident cover for persons traveling in the car available up to Rs.2,00,000.
  • Demise or bodily injury to any person meeting the requirements of the Motor Vehicles Act.
  • Covers liabilities towards your driver.
  • Property damage maximum up to Rs.7,50,000, other than the property of the insured or held in control of the insured.

Comprehensive motor insurance

The insurance company shall indemnify the policyholder against loss or damage to the insured vehicle, its accessories, personal liabilities, and owner damage. Protection also includes damage caused by fire, burglary, accidental means, riots/strikes, earthquakes, etc.

What is covered?

  • Demise or bodily injury to any person meeting the requirements under the Motor Vehicles Act.
  • Personal accident cover for persons traveling in the car available up to Rs.2,00,000.
  • Covers liabilities towards your driver.

Liability to the third-party covered

  • Covers death or bodily injury of any third-party persons.
  • Covers legal liabilities toward third-party
  • Property damage covered up to a maximum of Rs.7,50,000 other than the property of the insured.
  • Personal accident cover for persons traveling in the car available up to Rs.2,00,000.

Edelweiss General Insurance Company Limited Health Policies

Edelweiss offers the three comprehensive health insurance plans, they come in 3 variants:

Silver Plan– The sum assured for the silver plan is up to Rs.5 Lakhs.

Gold Plan– The sum assured for the Gold plan is up to Rs.20 Lakhs.

Platinum Plan– The sum assured for the Platinum plan is up to Rs.1 Crore.

What is covered?

 

Silver Plan

Gold Plan

Platinum Plan

Day care Treatment(up to sum insured)

Covered

Covered

Covered

Hospitalization charges

Covered

Covered

Covered

Ambulance charges

Covers up to Rs.1500

Covers up to Rs.3000

Covers up to Rs.10,000

Room rent

Rs.3 lakh and above

No capping

No capping

Organ donor cost

Not covered

Up to Rs.1,00,000

Up to Rs.2,00,000

Ayush Treatment

Covered

Covered

Covered

Maternity benefit

N/A

Rs.50,000( 4Yrs waiting period)

Up to Rs.2,00,000(4 years waiting period)

Free health checkup(Every claim free year)

Available

Available

Available

Critical illness cover(Begins from the 1st time you are diagnosed with critical illness)

Not covered

Sum assured amount increases by 50%

Sum assured amount increases by 100%

Plan features

 

Silver Plan

Gold Plan

Platinum Plan

Sum assured

1 lakh-5 lakhs

5 lakhs – 20 lakhs

1 lakh – 1 crore

Minimum Entry

3 months

  

Maximum Entry

65 years

65years

Any age

Policy Renewal

          Life time renewability option available

Premium payment

                  Single

Policy tenure

 1year/2year/ 3year

No claim Bonus

Sum assured increases 10% of every claim free year maximum up to 50%

Sum assured increases 50% every claim free year maximum up to 100%

Sum assured increases 50% every claim free year maximum up to 100%

Edelweiss Home Insurance Plans

Edelweiss General Insurance company provides financial protection to the policyholder in case of any damage caused to the insured property incurred due to:

  • Fire damage
  • Lightening
  • Explosion/implosion
  • Aircraft damage
  • Riots, strike
  • Any kind of visible destruction
  • Overflowing bursting or leakage of water pipes, apparatus
  • Collapsing landslide
  • Cyclone,tempest,storm,hurricane,flood,tornado.
  • Missle testing operations
  • Additional optional covers are also available for loss of rent, earthquake, the expense for debris removal, etc.

Eligibility

This policy can be purchased by homeowners, individuals living in flats, or independent houses
A multi-year policy can be purchased by homeowners only wherein the coverage for the building will be for 3-30 years.

Edelweiss Loan Protection Cover

Edelweiss’s loan care policy offers protection against liabilities /loans in case of any unfortunate or unpreventable event such as an unforeseen medical emergency, sudden death, death due to accident, permanent total or partial disability. This policy will take care of loan repayment for 3 months in case of job loss of the policyholder. This policy also comes with child education benefits, it covers the educational costs of the insured’s children.

Lets us discuss various types of loan protection cover available for specified causes

Personal accident– This cover takes care of the policyholder’s loan in case of accidental death, permanent total/partial disabilities.

Critical illness– There are 5 major variants available that cater to the policyholder’s loan in case he/she is diagnosed with a critical illness.

Standard Plan– Covers 9 critical illnesses
Enhance Plan – Covers 12 critical illnesses
Premium Plan – Covers 15 critical illnesses
Elite Plan– Covers 18 critical illnesses
Ultima Plan– Covers 25 critical illnesses

Job loss Plan

This policy takes care of the policyholder’s loan repayment for 3 months in case of a job loss, resignation, or absence of a job in search of a better one.

Children’s education

In this policy, the insurance company will be liable to pay for the education expenses of the insured’s children in case of accidental death of the insured parent. The insurer will have to pay educational fees to the institute or the sum assured whichever is less. It also includes child education benefits for two children up to Rs.2.5 Lakhs per child.

Contact information

  • Official website– www.edelweissinsurance.com
  • Email ID -support@edelweissinsurance.com
  • Contact No – Toll-free 1800 12000
  • Paid landline- 02242312000
  • Social media– facebook.com/EdelweissGeneralInsurance, twitter.com/EdelweissGI
  • Registered address– 5th Floor Tower 3 Wing B Kohinoor City Mall Kohinoor City, Kirol Rd, Premier Residencies, Kurla, Mumbai, Maharashtra 400070.

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What is a cover note in insurance?

What is a cover note in insurance (With simple examples)

In certain rare situations, getting delivery of your policy documents may take some time, but that does not mean your coverage has not started. What can you do if you haven’t received your policy document in time? This is where a cover note comes into play.

let us find out what is a cover note in insurance.

What is a cover note?

A cover note is a document that is provided by the insurance company to the policyholder as proof that the insured has bought the specified policy from them. It acts as evidence of the insurance until the final policy document is made and sent to the policyholder.

In today’s day and age where insurance policies are generated online instantly, The concept of a cover note may be redundant. However, if you choose to buy a policy offline and you feel that the delivery of the policy document may be delayed, you may always request your insurance company to provide you with a cover note.

Example

Mr. Roy has bought an offline health insurance policy from HDFC ERGO. It may take some time for the insurance company to produce his final policy documents, so the company provides a cover note to Mr. Roy. In case a claim is made, Mr. Roy can use the cover note as proof to avail his coverage.

Example of a cover note in insurance
Example of a cover note in insurance

Cover note in motor insurance

There are many instances that a person has bought motor insurance and has not received the final policy copy on time. During this situation, the policyholder may be stopped by a traffic police officer and be demanded to hand over his insurance policy, as the policyholder does not have the final copy, he may choose to hand over the cover note thereby saving him any trouble.

Details mentioned in a cover note

  • Details such as the full name and address of the policyholder
  • Sum insured and premium amount
  • Coverage period
  • The risks covered in the policy
  • Stamp and signature of the insurance company

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Motor Insurance

Comprehensive insurance vs third party insurance

Comprehensive Insurance vs Third Party Insurance

Understand the difference between comprehensive insurance and third-party motor insurance in a nutshell. The difference can be distinguished by the coverage provided.

The prime difference is that third-party vehicle insurance provides you financial coverage against any damage or loss caused to a third-party. whereas, comprehensive insurance not only covers third-party liabilities but also offers coverage for the owner’s loss or damages.

Let us understand both policy types in detail to give you a better understanding

What is a Comprehensive Motor Insurance policy?

A comprehensive motor insurance policy provides complete coverage of the owner, his vehicle, and even the third-party involved.

Benefits of a Comprehensive Motor Insurance Policy

1.) Protects your vehicle: It protects against damages caused to your vehicle due to:

  • Accident
  • Fire
  • Earthquake
  • Floods
  • Theft/burglary
  • Windshield wreckage
  • Damage caused by an animal
  • Damage caused by fallen objects
  • Damage against storms, cyclones or , windstorm

2.) Covers Third-Party Vehicles: This policy also covers third-party liabilities. Bodily harm or injuries caused to the third party are covered.

 

3.) Value for Money: It is a value for money policy for its extensive coverage.

 

4.) Customization: in a comprehensive policy you can customize your car insurance policy according to your needs and requirements by opting for various add-on covers.

 

5.) Personal Accident Cover: It comes with an inbuilt personal accident cover.

 

Exclusions

Here are few points that are excluded in a comprehensive car insurance policy

 

1.) Driving without a license: The policyholder will get their claim rejected if they were driving without a license during the event of a mishap.

 

2.) Drink and Drive: Any loss or damages claimed by the policyholder under the influence of alcohol or intoxicants will be dismissed.

 

3.) Deliberate Negligence: Any claims found to be made by deliberately damaging the car will be rejected.

 

4.) Valid License: Any claims made while carrying a learner’s license will not be accepted.

 

5.) Nuclear War: Any damages or loss caused due to a nuclear warhead or mutiny will not be covered.

 

6.) Mechanical & Electrical Damage: Any damage to the mechanical and electrical system of the vehicle will not be covered.

 

Third-Party Car Insurance Policy

What is Third-party Liability Vehicle Insurance?

A third-party liability vehicle insurance is the most basic and mandatory form of car insurance. It is mandated to have at least a third-party vehicle insurance policy as per the Motor Vehicles Act 1988.
As the name suggests, this policy provides financial coverage against third-party liabilities only.

 

Benefits of a Third-party Liability Vehicle Insurance Policy

1.) Covers third-party liabilities: As mentioned earlier, it protects the interests of the third-party that is involved in the accident. Any court-ordered compensation will be paid to the third-party by the insurance company.

 

2.) Covers death or injury: Provides financial compensation to the third-party in case of death or disability.

 

3.) It is mandatory: As per The Motor Vehicles Act 1988, it is mandatory to have a third liability car insurance policy. It is illegal to drive on Indian roads without it.

 

Exclusions under Third-party Liability Vehicle Motor Insurance

1.) Own damages: Damages caused to your own vehicle will not be covered under third-party motor insurance.

 

2.) Drinking and driving: Any claims made under the influence of alcohol or intoxicants will be rejected

 

3.) Driving without a license: Any claims made while driving without a driving license will not be accepted.

 

Which policy should you opt for?

It is always advisable to opt for a comprehensive motor insurance policy as it provides complete 360- degree protection. Although not necessary, opting for a comprehensive motor insurance can save you a lot of hassle in the future.

Comprehensive Insurance vs Third Party Insurance

 

Comprehensive Insurance

Third -party insurance

About

This policy offers financial coverage in case of any damages or loss caused to the car, owner or the third-party.

Offers financial coverage against any damage caused to third -party only.

What is covered?

Covers accidental damages caused to own vehicle as well as third party vehicle.

Covers damages caused due natural calamities like earthquake, floods, riots, etc.

Covers against man made calamities like fire, strikes, etc.

Covers against accidental damages caused to the third party or their vehicle.

Premium

Premium cost shall depend on various elements such as car make, car type, etc.

Premium cost will be higher compared to a third-party insurance policy.

 Premium cost will be cheaper compared to a third-party insurance policy. This is due to the limited protection that this policy provides.

Optional add on cover

You could opt for various add-on covers/riders based on your needs.

Some notable add-on covers:

Zero depreciation cover

Engine replacement cover

Roadside assistance cover.

Not available

Is it mandatory?

It is upon the discretion of the policyholder’s needs and requirements whether   to go for  a comprehensive insurance policy.

This policy is mandatory under The Motors Vehicles Act, 1988.

AUTHOR BIO

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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Insurance

Claim letter for insurance (With an example)

Claim letter for insurance (With an example)

Life is uncertain and can suddenly hit us with unfortunate surprises. It is always better to plan ahead and consider getting insured. That being said, what happens if you are insured and need to apply for a claim? This article will assist you with exactly that.

Learn how you can make a formal claim letter. we will also provide a sample claim letter for your better understanding.

Insurance companies provide you a claim form to initiate the process. To speed up your claim process, you can also attach a claim letter with the claim form.

First, let us under what a claim letter is

What is a claim letter?

The objective an insurance claim letter is to notify your insurance company about the event, how it happened, and also providing legitimate and accurate details surrounding the event. A claim letter can be sent to the insurance company to request coverage for any insured matter.

What should you include in your claim letter?

The claim letter must include all relevant information that your insurance company will need to initiate your claims such as the name of the policyholder, the details about the incident, the date of the incident, and the nature of your claim.

Now let us look into a sample claim letter in the case of a life insurance policy

Claim letter example

Sita Nath
Alps Apartment
Dadar (W)
Mumbai-400014
12-01-21

Subject: Insurance claim

To,

Max Life Insurance,

Worli, Mumbai-400018

Respected Sir/Madam,

I, Sita Nath, with extreme regret have to inform you of the sad demise of my Husband Mr. Raj Prakash Nath on 11-1-20 due to kidney failure.

My husband had a life insurance policy with your company (Policy Number: xxxxx) in the name of my husband, Mr. Raj Prakash Nath.

I am the beneficiary and nominee of my husband’s life insurance policy. I request you to disburse the claim amount ASAP.

As per my records, the claim amount is Rs.40 lakhs. The detailed policy documents and the death certificate of my husband Mr. Raj Prakash Nath are attached herewith. I request you to release the compensation amount at the earliest. Looking forward to your quick response on the same.

PFA the requisite documents within

  • Duly-filled claim form
  • Policy bond
  • Death certificate
  • Medical certificates
  • Cancelled check
  • Photo ID and address proof

Yours sincerely,

Sita Nath

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