Month: April 2023

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Life Insurance

Artificial intelligence in life insurance (The Road Ahead)

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Artificial Intelligence in Life Insurance (The Road Ahead)

Even though we may or may not ever achieve artificial general intelligence (AGI), it is safe to say that artificial intelligence (AI) technology has been moving forward at a breakneck pace in recent times. You may have heard about Open AI’s ChatGPT and Google’s Bard AI.

These are AI systems designed to drastically increase their users’ productivity and capacity. Will similar AI innovations happen in the insurance sector? The answer is an unequivocal yes. In fact, there is rampant AI implementation in the life insurance sector as we speak. Let us look at some of the most important aspects of AI and its synergy with life insurance below:

 

  • Scope of AI in life insurance
  • Life Insurance Companies Incorporating AI
  • A.I. start-ups synergizing with life insurance

Scope of A.I. in life insurance

A.I. systems have massive potential to disrupt the status quo in the life insurance sector in India and worldwide. In fact, it is estimated that AI implementations could increase productivity and reduce expenses by a whopping 40%. Top CIOs have understood this potential and are willing to increase spending on AI technologies to improve their insurance businesses. In fact, even InsuranceLiya.com has leveraged AI to create a robust AI chatbot that can answer insurance related questions.

According to a survey conducted, over 40% of CIOs are willing to increase their expenses on A.I. and related technologies. These are big numbers, and the shift is imminent. Now, let us understand some of the scope of AI and where it will be used in the sector.

  • Risk Assessment: The fundamental task of an insurance company is to assess risk. An insurance company’s profit or loss depends on the quality of its risk assessment; if the quality is high, then the insurance company will likely be profitable; if it is sub-par, then the company will be in troubled waters. How can AI increase the quality of risk assessment? Well, here’s a real-world example of how insurance companies are currently using A.I. and machine learning to assess risk. An insurance company will leverage AI  and ML algorithms to screen through a variety of data that includes credit score data, social media data, and more. They will use this data to crunch the numbers using AI and ML algorithms and come up with a risk assessment score for the client. This score states the likelihood of a client initiating a claim in the future.
  • Insurance Underwriting: Insurance underwriting is similar to risk assessment. Once the risk is assessed, the insurance company may or may not choose to underwrite the insurance policy. This is a critical decision that needs to be taken. AI and ML assist insurance underwriters in making this decision. Gradient AI is a firm that analyses the risk for insurance companies and advises on the underwriting process.
  • Claims Processing: Imagine processing your insurance claim on your insurance company’s website, and an online AI assistant is beside you throughout the claim submission stage. This AI will answer all your queries and help you in your claim submission journey. Once a claim is submitted, similar AI systems will process and analyze this claim submission and give the claim a genuineness score. If the score is above 70/100, then the claim is passed. If it is under 70, then the claim is sent to a scrutiny department for further scrutiny. This system will fast-track authentic and genuine claims by a great deal, leading to greater customer satisfaction.
  • Human Resources: AI systems can be incorporated into H.R., where employees of insurance companies can directly address common H.R.-related questions to the AI and get a relevant response to the same. This can lead to a lot of cost savings for the company.
  • Customer Support: AI customer support systems are already in place, and it is likely that the quality of these systems will only improve as they become more robust. A policyholder can ask a variety of questions to the AI chatbot, and the chatbot will attempt to provide resolution for the same.
  • Customer on-boarding: We feel that this is another major disruption in the insurance sector. The entire customer on-boarding process can largely be handled online through AI systems, as these systems can be highly customizable and tailored to answer specific questions. The need to have an actual person behind the chat will be limited.

Life Insurance Companies Incorporating AI

AI start-ups synergizing with life insurance

AI start-ups have taken the insurance sector by storm. A plethora of AI start-ups are now leveraging AI to build effective synergies with insurance companies. Many of these A.I. start-ups also integrate A.I. solutions with existing insurance companies for effective API integration. Some notable AI start-ups include:

  • Lemonade
  • Insurify
  • Bold Penguin
  • Riskcovry
  • Arya.ai
  • Haptik A.I
  • Artivatic.ai
  • Toffee Insurance

These companies provide services in the areas of AI customer support, sales, customer on-boarding, marketing, risk analysis, underwriting, and more. Looking at the trend, it is inevitable that there will be large-scale adoption of AI and ML systems in the global insurance sector within the next 10–15 years.

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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Building Insurance (A Simple Guide)

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Building Insurance (A Simple Guide)

Cars, two-wheelers, cycles, and even your neighbor’s puppy can be insured, but did you know that entire buildings can also be insured? Yes, entire buildings irrespective of their size can be extended insurance coverage.

This article will attempt to explain the concept of building insurance, and at the same time highlight some of the most important topics concerning building insurance such as importance of building insurance, types, scope, benefits, and more.

We will extensively talk on the following topics:

 

  • What is building insurance? (Meaning)
  • Importance and Benefits of Building Insurance
  • Inclusions and Exclusions in Building Insurance
  • Potential use cases of Building Insurance
  • Types of Building Insurance
  • How is building insurance premium determined?

What is building insurance? (Meaning)

A building insurance policy is a contract between the owner of the building and the insurance company. This contract is for a specific period of time and a specific amount (Premium). A building insurance policy provides coverage to the policyholder in the event that the insured building is damaged during the contract term.

Importance and Benefits of Building Insurance

A building is an expensive asset and should be insured. Uninsured buildings can be a cause of massive financial pain to the owner of the building. Let us highlight some of the most important benefits of building insurance below:

  • Coverage against losses: This is the fundamental benefit of having your building insured. Damage caused to your building during the policy tenure will be covered by the insurance company. This is however subject to the terms and conditions of the policy bond.
  • Coverage for internal items: It is generally a surprise to policyholders that insurance companies even extend coverage to internal items like electric items and lightnings. Even expensive items like jewelry and artwork is covered if you buy a rider along with your base policy.
  • Peace of mind: Peace of mind is everything, and a building insurance policy will provide a good nights sleep to the policyholder, knowing that he is covered against unforeseen difficulties.
  • Loan: Bank’s will generally ask if a building is insured before collateralizing it.

Inclusions and Exclusions in Building Insurance

Inclusions and exclusions depend of the type of building insurance policy as well as the insurance company issuing the policy. That being said, there are certain inclusions and exclusions that are generally shared across policies and insurance companies, they are:

Inclusions

Exclusions

Fires

Damage caused due to willful negligence

Theft / Burglary

Damage caused intentionally

Natural disasters like floods, earthquakes, cyclones and more

Consequential damages

Manmade disasters like terrorist attacks and riots

General wear and tear of the property

Accidental damage caused to the property

Precious items like gold, jewelry, art, etc that is damaged

Electrical fires and other electrical damage

Damage resulting due to war

Alternative accommodation expenses if necessary

Third party construction loss

Keep in mind that actual inclusions and exclusions will need to verified and checked with the insurance company.

Potential use cases of Building Insurance

Building insurance can be bought by the following parties:

1.) Small and large businesses: Both, small as well as large businesses can leverage building insurance to protect themselves against potential losses. It is considered extremely cognizant to ensure that your building is insured and covered.

Businesses that can be covered under building insurance are:

  • Hospitals and medical centers
  • Retail super stores
  • Small and large malls
  • Residential towers
  • Hotels and restaurants
  • Airports and ports
  • Mansions and bungalows
  • Private buildings

2.) Individual Owners: Not only large and small businesses, even individual owners that own buildings need to strongly consider buying building insurance as the costs of servicing substantial damages to a building could be astronomical.

3.) People who rent: Certain insurance companies even sell building insurance policies to renters that rent out entire buildings.

Types of Building Insurance

Insurance companies will generally offer flexible building insurance plans that cover all bases.

  • Coverage for insides: This type of building insurance policy only provides coverage to the insides of the building. Here, only the contents of the building will be covered.
  • Comprehensive coverage: This type of building insurance policy covers the contents of the building as well as the structure itself. It is a comprehensive policy.
  • Comprehensive coverage with rider: This is where a comprehensive policy is extended even further by buying relevant add-ons or riders. A policyholder can buy a number of riders along with the base policy. The rider increase the coverage of the policyholder. There are a variety of riders available in the market.

How is building insurance premium determined?

The policyholder will need a pay a rate of premium to insure his building, but how is this premium calculated? Let us have a closer look at how an insurance company determines the rate of premium.

  • Geographic location: This is one of the most important factors that determine the premium rate. If the building is in an affluent location, the cost of premium will generally be higher compared to buildings situated in less affluent areas.
  • Value of the building: The insurance company will do a valuation check of the building and quote a rate of premium that works for them. The building owner can provide the insurance company with a recent valuation as well.
  • Value of the insides of the building: The value of the insides of a building vary, this ensures that the premium rate also varies. A building may have expensive lighting, electronics, safety system, etc installed within the building premises. An insurance company will take the costs of covering these expensive items and thereby increase the premium.
  • Type of safety systems in place: If a building has adequate safety systems in place like 24×7 security, CCTV cameras, fire safety systems etc installed, then it will have a favorable impact on the premium rate, it will bring the premium down.
  • Age of the structure: This is another very important factor that an insurance company considers. Generally, the older the building the more it costs to insure the structure as the chances of damage increase

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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HDFC ERGO Travel Insurance (A Simple Guide)

HDFC ERGO Travel Insurance (A Simple Guide)

Are you planning to take a trip abroad for work or pleasure? Getting a travel insurance policy is imperative. Certain countries even mandate their visitors travel insurance policies. Want to know about HDFC ERGO travel insurance? Well, you have come to the right place. In this article, we will talk in detail about HDFC ERGO travel insurance, its features, plan benefits, types of travel insurance plans, and much more.

  • What is Travel Insurance?
  • Travel Insurance in India.
  • HDFC ERGO Travel insurance.
  • Features of HDFC ERGO Travel Insurance plans.
  • HDFC ERGO Travel Insurance Plan benefits.
  • Travel Insurance Plans by HDFC ERGO.
  • How to purchase HDFC ERGO Travel Insurance Plans?
  • How to renew HDFC ERGO Travel Insurance Plans?
  • How to file a claim with HDFC ERGO Travel Insurance Plans?
  • Exclusions under HDFC ERGO Travel Insurance Plans.
  • How to file a claim with HDFC ERGO Travel Insurance Plans?

What is Travel Insurance?

Travel insurance is an insurance product that financially compensates the policyholder against various risks while traveling abroad or in the country. In simple terms, the insurance company will indemnify the policyholder in case of any unforeseen events like any medical emergency, loss or theft of baggage, flight cancellations, etc, depending on the terms of the policy.

Travel insurance in India

According to a survey conducted by a leading insurance company travel insurance in the country has skyrocketed post-COVID-19.
As per the survey reports only 50% of international travellers bought a travel insurance policy. Post the COVID-19 outbreak this number has drastically increased to 76%.
Another finding from the survey suggests that awareness of purchasing travel insurance plans has increased up to 90% from 76% post-pandemic.

HDFC Ergo Travel Insurance

HDFC ERGO offers a plethora of travel insurance plans that provide comprehensive coverage to both domestic and international travelers. The company offers a vast range of travel plans for families, individuals, students, and people who frequently travel due to work.

HDFC ERGO travel plans offers cashless facility in over 1 Lakh hospitals worldwide. Plans offered by the company provide coverage in more than 20 Schengen countries and 18 other countries.

Features of HDFC ERGO Travel Insurance plans

  • Cashless Hospitalization: HDFC ERGO has more than 1 Lakh network hospitals all around the world which will provide cashless facilities to the policyholder in case of any emergency hospitalization while traveling.
  • Countries Covered: Plans offered by the company provide coverage in 25 Schengen countries and various other countries.
  • COVID-19 Coverage: Travel plans by HDFC ERGO provide coverage against COVID-19. In case the policyholder contracts COVID-19 while traveling abroad the hospitalization expenses for the same will be taken care of by the company.
  • Customizable Plans: HDFC ERGO plans are customizable according to the preference and needs of the individual. The policyholder can choose from a range of cover options such as flight cancellations, lost luggage, medical expenses, etc while traveling. Certain policies also allow you to select the sum insured or the coverage limit needed for the trip.
  • 24/7 Customer Support: HDFC ERGO provides 24-hour customer support for quick assistance to its customers in case of any emergency like theft, loss of baggage, etc in all covered countries.
  • In-house Claim Settlement: The company provides in-house claim settlement for its customers which means there’s no involvement of any third-party administrator (TPA). HDFC Ergo has a dedicated team of experts who looks after the claim settlement process providing a smooth experience for its customers.


HDFC ERGO Travel Insurance Plan benefits

Below provided are some general plan benefits of HDFC Ergo travel insurance plans. These benefits may vary from policy to policy.

  • Medical Expenses: HDFC ERGO’s travel plan cover medical expenses like inpatient, and outpatient care, therapies, diagnostic tests, and so on due to any illness or injury suffered while traveling.
  • Accidental Death Cover: Travel plans by HDFC ERGO also provide accidental death coverage in which the company provides financial compensation to the nominee of the policy in case of accidental death of the policyholder.
  • Accidental Disability Cover: The company also provides accidental disability coverage which provides compensation in case of total permanent disablement suffered by the policyholder due to an accident.
  • Emergency Medical Evacuation: HDFC ERGO travel plans offer a unique benefit that provides coverage for an emergency medical crisis such as medical evacuation by air or road to the nearest hospital for treatments.
  • Coverage for Loss of Passport: The plans also offer to cover the cost of a passport and other crucial documents in case of loss or theft.
  • Coverage for Flight Delay: Plans by HDFC ERGO travel insurance also offer reimbursement in case the policyholder’s flight is delayed for more than 12 hours from the scheduled departure time.
  • Worldwide Coverage: Travel plans offered by the company provide comprehensive worldwide coverage that protects you and your loved ones while traveling on vacation or for any work-related purposes.

Travel Insurance Plans by HDFC ERGO

Below provided are the notable plans offered by the company:

1.) Student Travel Insurance Plan

The student travel policy is designed for students who are planning to travel abroad for higher education. This plan will secure a prolonged stay abroad so that the student can solely concentrate on their studies without worrying about the losses caused due to any unforeseen incidents. Any Indian student already residing overseas can also purchase this plan. This plan offers sum insured options starting from $100000 up to $250000.
This plan is available in five variants: Platinum, Gold, Silver, Bronze, and Standard.

Plan Benefits

  1. This plan covers all medical, evacuation, and repatriation expenses of the insured student studying abroad.
  2. Worldwide coverage is provided to the insured student starting from one month up to 2 years.
  3. This plan also covers the risk of theft or loss of a passport.
  4. This plan also provides financial compensation in case of study interruption due to personal reasons such as the death of a family member.
  5. This policy also indemnifies the payment of the bail amount of the student in case of incarceration of the student for any offense.
  6. Medical tests are not mandatory to purchase this policy.

Plan Eligibility

  • Age: From 16 years up-to 35 years.
  • All Indian students studying abroad are eligible to purchase this plan.

2.) HDFC ERGO Family Travel Insurance Plan

This type of travel plan is ideal if you are planning a vacation with your family members. It is an affordable option allowing you to insure all your family members under a single travel policy at an affordable premium. This plan offers a wide range of sum insured options starting from $ 50,000 up to $ 500,000. This policy is available in five variants: Platinum, Gold, Silver, Bronze, and Standard.

Plan Benefits

  1. This plan offers cashless treatment in more than 1 lakh hospitals all around the world in case of a medical emergency.
  2. The policy provides financial compensation in case of any total permanent disability suffered while traveling.
  3. This plan also covers the cost of any accidental dental injury suffered while traveling.
  4. The plan covers the cost of baggage or personal documents lost or stolen up to the sum insured.
  5. The company will provide financial compensation to the nominee of the policy in case of the accidental death of the policyholder.
  6. The plan will also financially compensate in case of hijack of the airplane or train in which the insured has travelled.

Plan Eligibility

  • Single trips: 6 months to 70 years.
  • Multi trips: 18 years up to 70 years.

3.) HDFC ERGO Multi-trip Travel Plan

This plan is ideal for individuals who have to travel frequently due to work or any other purpose. In this plan, the policyholder can avail of coverage for multiple trips under the same cover. HDFC ERGO‘s Multi-trip plan is available in four variants; Platinum, Gold, Silver, and Asian Region. The plan offers a wide range of coverage options from USD 5,00,000 to USD 25,000.

4.) HDFC ERGO Individual Travel Insurance Plan

This plan is designed for individuals who travel solo offering a wide range of benefits at an affordable premium. HDFC ERGO’s travel plan is available in five variants; Platinum, Gold, Silver, Bronze, and Asian region. The sum insured ranges from USD 5,00,000 to USD 25,000.

Plan Benefits

  1. The policy covers cashless hospitalization in network hospitals worldwide.
  2. This plan provides financial compensation in case of loss or theft of baggage.
  3. This plan covers accidental death while traveling.
  4. Any accidental disability while traveling will be compensated.

How to purchase HDFC ERGO Travel Insurance Plans?

Follow these simple steps laid down by us to purchase a travel insurance policy with HDFC ERGO.

  • Step 1: Visit the official website of the company i.e https://www.hdfcergo.com/
  • Step 2: Click on the “BUY” option at the header of the page and select travel insurance.
  • Step 3: Select the type of travel insurance plan you wish to purchase.
  • Step 4: Fill in all the required details like destination, number of passengers, and so on.
  • Step 5: You will be redirected to the quotes page where you will be offered the right plan for your requirements.
  • Step 6: You can make the payment directly via a debit or credit card. Your policy will be instantly generated or you can also purchase an HDFC Ergo travel plan by visiting the nearest official branch of the company.

How to renew HDFC ERGO Travel Insurance Plans?

Follow these simple steps to renew your travel insurance plan with HDFC ERGO:

  • Step 1: Visit the official website of the insurer and click on the “Renew” option.
  • Step 2: Fill in the requested details like policy number or registered mobile number to log in.
  • Step 3: Verify all the policy details and make the premium online.
  • Step 4: Your policy will be instantly renewed and you will receive a confirmatory email on your registered email address, or you can also renew your travel insurance policy by visiting the nearest branch of HDFC ERGO.

How to file a claim with HDFC ERGO?

As mentioned earlier, HDFC ERGO has a dedicated in-house claim settlement team that looks after providing an efficient claim settlement experience for its policyholders.

Note:

  • You must immediately inform the insurer in case of an emergency on its claim intimation number i.e +91 22 6234 6234/+91 120 6234 6234.
  • You can also contact the insurer on its claim’s intimation India landline number +91-120-4507250.
  • You can also intimate the insurer on an official email address i.e travelclaims@hdfcergo.com.

Follow these simple steps to facilitate a claim with HDFC ERGO Travel Insurance:

  • Step 1: You must immediately inform the insurance company in case of any emergency.
  • Step 2: Please visit travelclaims@hdfcergo.com and get a list of network hospitals to avail treatment.
  • Step 3: The claims team will share the required documents for a cashless claim.
  • Step 4: You can also download the digital claim form available on the official website of the company.
  • Step 5: Send the dully filled digital claim form with all the necessary documents to the company.
  • Step 6: After verification by the company the claim will be approved.

Exclusions under HDFC ERGO Travel Insurance Plans

Following are some general exclusions under HDFC Ergo travel plans. These exclusions may vary from policy to policy.

  • Pre-existing Conditions: Travel plans by HDFC ERGO will not cover any pre-existing conditions suffered by the policyholder before traveling.
  • Self-inflicted Injury: Any self-inflicted harm or injury caused to the policyholder like suicide, etc will not be covered under the policy.
  • Injury due to Adventure Sports: Any injury suffered due to participation in any kind of adventurous sport like rock climbing, scuba diving, paragliding, bungee jumping, etc is not covered under the plan.
  • Cosmetic Procedures: Any cosmetic treatments like botox, lip augmentation, etc will not be covered the plans.
  • Obesity Treatment: Any cost of treatments arising due to an obesity procedure or surgery will not be covered under the plan.
  • Health hazard due to breach of law: Any coverage for health problems that insured individual may experience due to illegal activities on their part like smoking illegal substances or drug abuse will not be covered by the insurer.

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Frequently asked questions about HDFC ERGO Travel Insurance

  • How to decide the best plan for my travel?

    This truly depends on the requirements, preferences, and budget of the individual. For example, If you are traveling with your family, it’s best to choose a family floater plan that covers your entire family in a single policy. Also, you can avoid the irritant of buying travel insurance for every trip by opting for a Multi-trip plan if you are a frequent traveller. If you are traveling abroad for higher studies, then a student plan is the best option for you.

  • What is not covered in travel insurance policies?

    Travel insurance plans generally do not cover any pre-existing conditions, mental illnesses, cosmetic procedures, and so on.

  • What is the maximum age to enter HDFC ERGO’s Travel Insurance plans?

    70 years is the maximum age to buy a travel insurance plan with the company.

  • Can I change the travel dates in my HDFC ERGO travel plan?

    Yes, you can alter the travel dates in your policy before the policy commencement date to a later date.