Calculating the True Cost of Third-Party Motor Insurance Across Different Vehicle Types in India
In India, the Motor Vehicles Act of 1988 mandates that all vehicle owners purchase third-party motor insurance, which provides coverage for damages or injuries caused to third parties in the event of an accident.
While this type of insurance is compulsory, the premiums paid by vehicle owners vary significantly depending on the type of vehicle, its cubic capacity, and usage. In this article, we will delve into the intricacies of calculating third-party motor insurance premiums in India, with a special focus on unique cases like vintage and hybrid vehicles.
Understanding the Basics of Third-Party Motor Insurance
Third-party motor insurance is a type of liability insurance that protects vehicle owners against financial losses arising from damages or injuries caused to third parties, including pedestrians, other vehicles, or property.
The premium for this type of insurance is calculated based on the vehicle’s Insured Declared Value (IDV), which is the maximum amount that the insurer will pay in the event of a claim.
The IDV is typically calculated as a percentage of the vehicle’s market value, with the percentage varying depending on the vehicle’s age and type.
Factors Affecting Third-Party Motor Insurance Premiums
In India, the following factors affect the calculation of third-party motor insurance premiums:
Vehicle Type: The type of vehicle, such as a car, two-wheeler, or commercial vehicle, plays a significant role in determining the premium. For instance, cars with higher engine capacities tend to attract higher premiums due to their increased potential for damage.
Cubic Capacity: The cubic capacity of a vehicle’s engine is another crucial factor in determining premiums. Vehicles with higher cubic capacities are considered more powerful and, therefore, more likely to cause damage, resulting in higher premiums.
Usage: The usage of the vehicle, whether private or commercial, also affects the premium. Commercial vehicles, which are used for business purposes, tend to attract higher premiums due to their increased exposure to risk.
Age of the Vehicle: The age of the vehicle is also a factor, with newer vehicles attracting higher premiums due to their higher market value.
Location: The location where the vehicle is registered and used also plays a role, with urban areas typically attracting higher premiums due to increased traffic and accident risks.
Unique Cases: Vintage and Hybrid Vehicles
Vintage and hybrid vehicles present unique challenges when it comes to calculating third-party motor insurance premiums. Vintage vehicles, which are typically defined as vehicles older than 25 years, are often considered collector’s items and may require specialized insurance coverage.
Hybrid vehicles, which combine conventional fuel with electric or other alternative fuels, may also require unique insurance coverage due to their complex technology and higher market value. In India, vintage vehicles are typically insured under a separate category, with premiums calculated based on the vehicle’s age, condition, and market value. Hybrid vehicles, on the other hand, are often insured under the same category as conventional vehicles, with premiums calculated based on their cubic capacity and usage.
Calculating Third-Party Motor Insurance Premiums in India
To calculate third-party motor insurance premiums in India, insurers use a combination of the factors mentioned above. The premium is typically calculated as a percentage of the vehicle’s IDV, with the percentage varying depending on the vehicle type and usage. For instance, the premium for a private car with an IDV of ₹5 lakhs and a cubic capacity of 1000cc may be calculated as follows:
Base premium: ₹2,000 (fixed premium for private cars)
Cubic capacity factor: ₹500 (additional premium for 1000cc cubic capacity)
Usage factor: ₹0 (no additional premium for private usage)
Age factor: ₹0 (no additional premium for new vehicles)
Location factor: ₹500 (additional premium for urban locations)
Total premium: ₹3,000
Comparison of Third-Party Motor Insurance Premiums Across Different Vehicle Types
To illustrate the variation in third-party motor insurance premiums across different vehicle types, let’s consider the following examples:
Private car (1000cc): ₹3,000
Commercial car (1000cc): ₹5,000
Two-wheeler (150cc): ₹1,500
Vintage car (25 years old): ₹5,000
Hybrid car (1000cc): ₹3,500
As can be seen, the premiums vary significantly depending on the vehicle type, cubic capacity, and usage. Commercial vehicles and vintage cars tend to attract higher premiums due to their increased exposure to risk, while two-wheelers tend to attract lower premiums due to their lower market value and reduced risk.
Conclusion
Calculating the true cost of third-party motor insurance in India requires a nuanced understanding of the various factors that affect premiums, including vehicle type, cubic capacity, usage, age, and location.
Unique cases like vintage and hybrid vehicles require specialized insurance coverage and premiums calculated based on their specific characteristics. By understanding these factors and calculating premiums accurately, vehicle owners in India can ensure that they are adequately protected against financial losses arising from accidents, while also avoiding unnecessary expenses.
As the Indian insurance market continues to evolve, it is essential for insurers and vehicle owners to stay informed about the latest developments and regulations governing third-party motor insurance premiums.
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.
Simple tests like checking your blood pressure and simple blood tests can go a long way
Why Indians Should Consider Investing in Critical Illness Insurance
In India, where medical costs are skyrocketing and the incidence of critical illnesses is on the rise, having a financial safety net in place is crucial.
Critical illness insurance is one such product that can provide a lump sum payment to help individuals and families cope with the financial burden of medical treatment and other related expenses. According to a report by the Indian Council of Medical Research (ICMR), the incidence of cancer in India is expected to increase by 12% by 2025, making it essential for Indians to have a critical illness insurance policy in place.
What is Critical Illness Insurance?
Critical illness insurance is a type of insurance policy that provides a lump sum payment to the policyholder in the event of a serious illness or medical condition, such as cancer, heart attack, stroke, or other life-threatening diseases. This payment can be used to cover medical expenses, lost income, and other related costs, helping individuals and families to maintain their standard of living and avoid financial hardship.
In India, critical illness insurance policies are available from various insurance companies, including public sector companies like LIC and private sector companies like ICICI Lombard and HDFC ERGO.
Why is Critical Illness Insurance Important for Indians?
Critical illness insurance is essential for Indians due to several reasons:
Rising Medical Costs: Medical costs in India are rising rapidly, with the cost of cancer treatment alone expected to increase by 15% annually. Critical illness insurance helps to bridge this financial gap, ensuring that individuals receive the best possible medical treatment without worrying about the cost.
Increasing Incidence of Critical Illnesses: The incidence of critical illnesses, such as cancer and heart disease, is increasing in India due to factors such as lifestyle changes, environmental pollution, and genetic predisposition. According to a report by the World Health Organization (WHO), India accounts for 20% of the world’s cardiovascular disease burden.
Loss of Income: Critical illnesses can result in a significant loss of income, making it challenging for individuals and families to maintain their standard of living. Critical illness insurance provides a lump sum payment that can be used to replace lost income, ensuring that individuals and families can continue to meet their financial obligations.
Emotional and Psychological Stress: Critical illnesses can cause significant emotional and psychological stress, making it challenging for individuals and families to cope with the situation. Critical illness insurance provides a financial safety net, helping individuals and families to focus on recovery and rehabilitation rather than worrying about the financial burden of medical treatment.
Benefits of Critical Illness Insurance
Critical illness insurance offers several benefits, including:
Lump Sum Payment: Critical illness insurance provides a lump sum payment that can be used to cover medical expenses, lost income, and other related costs.
Tax Benefits: Critical illness insurance premiums are eligible for tax benefits under Section 80D of the Income Tax Act, 1961.
Flexibility: Critical illness insurance policies can be customized to meet individual needs and requirements, providing flexibility and choice.
Peace of Mind: Critical illness insurance provides peace of mind, knowing that individuals and families are protected against the financial burden of critical illnesses.
Types of Critical Illness Insurance Policies
There are several types of critical illness insurance policies available in India, including:
Stand-Alone Critical Illness Insurance: This type of policy provides a lump sum payment in the event of a critical illness, without requiring hospitalization.
Rider-Based Critical Illness Insurance: This type of policy is attached to a life insurance policy, providing additional coverage in the event of a critical illness.
Unit-Linked Critical Illness Insurance: This type of policy combines investment and insurance, providing a lump sum payment in the event of a critical illness, as well as a potential return on investment.
How to Choose the Right Critical Illness Insurance Policy
Choosing the right critical illness insurance policy can be challenging, but there are several factors to consider:
Coverage Amount: The coverage amount should be sufficient to cover medical expenses, lost income, and other related costs.
Premium: The premium should be affordable and within budget.
Waiting Period: The waiting period should be reasonable, allowing individuals to receive coverage as soon as possible.
Exclusions: The policy should clearly outline exclusions, ensuring that individuals understand what is covered and what is not.
Claim Settlement Ratio: The claim settlement ratio should be high, ensuring that claims are settled quickly and efficiently.
Conclusion
Critical illness insurance is an essential product for Indians, providing a financial safety net in the event of a serious illness or medical condition. With rising medical costs, increasing incidence of critical illnesses, and loss of income, critical illness insurance helps individuals and families to cope with the financial burden of medical treatment and other related expenses. By understanding the benefits and types of critical illness insurance policies, individuals can make informed decisions and choose the right policy to meet their needs and requirements.
Tips for Buying Critical Illness Insurance
Assess Your Needs: Assess your needs and requirements, considering factors such as medical costs, lost income, and other related expenses.
Choose the Right Policy: Choose the right policy, considering factors such as coverage amount, premium, waiting period, exclusions, and claim settlement ratio.
Read the Policy Document: Read the policy document carefully, ensuring that you understand what is covered and what is not.
Seek Professional Advice: Seek professional advice from a licensed insurance agent or broker, ensuring that you receive personalized guidance and support.
Review and Update: Review and update your policy regularly, ensuring that it continues to meet your needs and requirements.
By following these tips, individuals can ensure that they have adequate critical illness insurance coverage, providing peace of mind and financial protection in the event of a serious illness or medical condition.
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.
A History of Insurance Premiums in India: Trends, Implications, and Future Projections
The Indian insurance industry has undergone significant transformations over the last two decades, with insurance premiums playing a crucial role in shaping the sector’s growth trajectory. In this article, we will delve into the history of insurance premiums in India, examining the trends, implications, and future projections that have defined the industry’s evolution.
Premium Growth Trends: A 20-Year Retrospective
To understand the current state of insurance premiums in India, it is essentiall to examine the historical context. Over the last 20 years, the Indian insurance industry has experienced a mix of growth and stagnation, with premium rates fluctuating in response to various economic and regulatory factors.
In the early 2000s, the Indian insurance industry was characterized by low premium rates, with the sector experiencing moderate growth. However, as the economy expanded and the middle class grew, the demand for insurance products increased, leading to a rise in premium rates. Between 2010 and 2019, the insurance industry experienced a compound annual growth rate (CAGR) of 1.6% in real terms, with premium rates increasing steadily over the period.
Recent Premium Dynamics: A Shift in Growth Trajectory
In recent years, the Indian insurance industry has witnessed a significant shift in its growth trajectory. According to data, real premiums grew by 3.4% in 2020 and 8.5% in 2021, significantly above the 2010-2019 trend.
This surge in premium growth can be attributed to various factors, including increased risk awareness, rising healthcare costs, and the impact of the COVID-19 pandemic on the insurance sector.
Health insurance premiums, in particular, have experienced a remarkable growth, with a 22.5% increase in real terms in 2021. This trend is expected to continue, driven by the growing demand for health insurance products and the increasing cost of healthcare services in India.
Future Projections: A Promising Outlook
Looking ahead, the Indian insurance industry is expected to experience robust growth, driven by increasing risk awareness, digital transformation, and government initiatives to promote insurance penetration.
The Indian government’s efforts to promote insurance penetration, including the introduction of initiatives such as the Ayushman Bharat scheme, are also expected to contribute to the sector’s growth.
Premium Increase Factors: Understanding the Drivers
To understand the factors driving premium increases in India, it is essential to examine the underlying causes. Medical inflation, which has been around 14% in recent years, has been a significant contributor to premium increases. Rising healthcare costs, increased claims during the COVID-19 period, and the impact of the Goods and Services Tax (GST) on premium rates have also played a role in driving premium growth.
The GST, which was introduced in 2017, has had a significant impact on the insurance sector, with a premium tax of 18% applicable to most insurance products. This has resulted in higher premium rates for policyholders, particularly in the health and life insurance segments.
Market Scale: India’s Emerging Insurance Market
The Indian insurance market is expected to become the 6th largest insurance market by 2032, with the sector projected to reach USD 222 billion by 2026. This growth is driven by the increasing demand for insurance products, particularly in the health and life insurance segments, as well as the growing middle class and rising disposable incomes.
Despite this growth, India’s insurance penetration remains low compared to developed countries. According to data, insurance penetration in India stands at around 3.76% of GDP, compared to 8.55% in the USA, 13.35% in the UK, and 11.17% in Japan. This highlights the significant potential for growth in the Indian insurance sector, particularly in terms of increasing insurance penetration and promoting financial inclusion.
Conclusion
In conclusion, the history of insurance premiums in India is a complex and evolving narrative, shaped by various economic, regulatory, and demographic factors. Over the last 20 years, the Indian insurance industry has experienced a mix of growth and stagnation, with premium rates fluctuating in response to changing market conditions.
As the sector looks to the future, it is clear that India’s insurance industry has significant growth potential, driven by increasing risk awareness, digital transformation, and government initiatives to promote insurance penetration. While challenges remain, including low insurance penetration and rising healthcare costs, the Indian insurance sector is poised for robust growth, with premium rates expected to increase in the coming 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.
The Best Health Insurance Companies in India for 2024
Navigating the complex world of health insurance can be daunting, especially when looking for the best provider that aligns with your healthcare needs and financial constraints.
In this comprehensive guide, we delve into the intricacies of selecting the best health insurance company in India for 2024, offering you a detailed analysis to make an informed decision.
From understanding policy offerings to evaluating customer service, we cover all aspects to ensure you choose a provider that stands by you in times of need.
Table of Contents
Introduction to Health Insurance in India
Criteria for Evaluating Health Insurance Companies
Top Health Insurance Companies in India for 2024
Step by Step Guide to Choosing the Right Policy
Introduction to Health Insurance in India
Health insurance in India has evolved significantly, with numerous companies offering a variety of plans to cater to different demographics and medical needs. The right health insurance policy not only provides financial security in times of medical emergencies but also ensures access to quality healthcare services without depleting your savings.
According to the Global Burden of Disease study, India accounted for approximately one-quarter of the world’s total CVD deaths, with nearly 2.8 million people dying from heart conditions in 2016 alone.
Criteria for Evaluating Health Insurance Companies
When evaluating health insurance companies to determine which one best suits your needs, it’s essential to consider a comprehensive set of criteria. These criteria help ensure that you select a provider that offers reliable coverage, excellent customer service, and financial stability, among other factors.
Here’s an in-depth look at the key criteria for evaluating health insurance companies:
Claim Settlement Ratio (CSR)
The Claim Settlement Ratio is a crucial indicator of an insurance company’s reliability and efficiency in handling claims. It represents the percentage of claims the insurer has settled against the total number of claims received during a specific period. A higher CSR suggests that the company is more reliable in settling claims, which can be particularly reassuring in times of medical emergencies.
Network Hospitals
The extent and quality of an insurer’s network of hospitals are vital for availing cashless treatment facilities. A wide network means you’re more likely to find a network hospital close to your location, making it more convenient to receive timely medical care without worrying about upfront payments.
Coverage and Benefits
The scope of coverage and the benefits offered by a health insurance plan are critical in ensuring that your medical needs are adequately met. Look for policies that offer comprehensive coverage, including pre and post-hospitalization expenses, daycare procedures, critical illness cover, and maternity benefits, among others. Additionally, check for any sub-limits, co-payments, or exclusions that might affect your coverage.
Premium vs. Benefits
While evaluating health insurance options, it’s important to balance the cost of the premium with the benefits provided. The cheapest plan is not always the best if it doesn’t cover essential health needs. Conversely, the most expensive plan might offer benefits you don’t necessarily need. Aim for a plan that offers the best value for money, considering your health requirements and financial capability.
Customer Service
The quality of customer service is a significant factor, especially when you need assistance with your policy or need to file a claim. Responsive, knowledgeable, and helpful customer support can make the insurance experience much smoother and less stressful. Trustpilot can be a valuable source of customer reviews.
Policy Terms and Conditions
Understanding the terms and conditions of a health insurance policy is crucial before making a decision. Pay close attention to the waiting periods for certain conditions, coverage limits, policy renewal terms, and any exclusions to ensure there are no surprises when you need to use your insurance.
Additional Benefits and Features
Some health insurance companies offer additional benefits and features such as no-claim bonuses, free health check-ups, wellness programs, and discounts on premiums for maintaining a healthy lifestyle. These extras can add significant value to your policy.
Insurer’s Financial Stability
The financial stability of an insurance company is an important consideration, as it reflects the insurer’s ability to meet its obligations towards its policyholders. You can look into the insurer’s solvency ratio, which indicates whether the company has sufficient assets to cover its liabilities.
Customer Reviews and Ratings
Customer reviews and ratings can provide insights into the experiences of other policyholders with the insurer. They can highlight the company’s strengths and areas for improvement, helping you make a more informed decision. Again, Trustpilot can be very useful to assess the customer service of an insurance company.
Ease of Buying and Renewing Policies
The process of purchasing and renewing policies should be straightforward and convenient. Many insurers now offer online platforms for these processes, making it easier for customers to manage their policies. By carefully considering these criteria, you can evaluate and compare different health insurance companies and their policies to find the one that best meets your specific health care needs and financial situation.
Top Health Insurance Companies in India for 2024
To assist individuals in selecting the most suitable health insurance provider in India for their specific needs, we’ve analyzed various insurers based on their performance metrics and unique offerings.
Here’s a curated list, highlighting the distinct advantages of each company:
With a Claim Settlement Ratio of 73.92% and a Solvency Ratio of 1.72, SBI General Insurance boasts a network of over 6,000 hospitals.
Best Suited For: Those who value the assurance and comprehensive coverage provided by a government-affiliated insurer. SBI General is renowned for its wide-ranging policies that cater to both individuals and families, emphasizing security and trust.
2. Tata AIG General Insurance Co. Ltd.
Tata AIG presents a Claim Settlement Ratio of 78.33% and a Solvency Ratio of 1.97, supported by a network of 10,000+ hospitals.
Best Suited For: Policyholders in search of extensive customization through add-ons. Tata AIG’s offerings include unique options like global coverage and consumables expenses, allowing for a tailored insurance experience.
3. ManipalCigna Health Insurance Co. Ltd.
ManipalCigna features a Claim Settlement Ratio of 93.5% and a Solvency Ratio of 1.57, with 18,000+ network hospitals.
Best Suited For: Working professionals and their families, offering corporate health solutions that encompass a variety of benefits, including OPD and wellness programs, catering specifically to the needs of the employed demographic.
4. Care Health Insurance Ltd. (Previously Religare Health Insurance)
Care Health Insurance stands out with a Claim Settlement Ratio of 95% and a Solvency Ratio of 1.82, alongside an extensive network of 22,900+ hospitals.
Best Suited For: Those requiring broad international coverage, ideal for globe-trotters or individuals seeking medical treatments abroad, offering expansive coverage for overseas medical expenses.
5. Niva Bupa Health Insurance Co. Ltd. (Previously Max Bupa)
Niva Bupa showcases a Claim Settlement Ratio of 91.20% and a Solvency Ratio of 1.79, with a network of 10,000+ hospitals.
Best Suited For: Clients desiring highly customizable health plans, Niva Bupa provides flexibility in coverage, allowing policyholders to adjust their plans based on specific health needs and financial considerations.
6. Star Health and Allied Insurance Co. Ltd.
Star Health records a Claim Settlement Ratio of 85.47% and a Solvency Ratio of 2.03, with 14,000+ network hospitals.
Best Suited For: Elderly individuals and those with existing medical conditions, offering specialized plans that provide thorough coverage without long waiting periods, catering to the senior demographic and those with specific health concerns.
7. ICICI Lombard General Insurance Co. Ltd.
ICICI Lombard boasts a Claim Settlement Ratio of 93% and a Solvency Ratio of 2.51, with 7,500+ network hospitals.
Best Suited For: Wellness-focused individuals, offering unique health and wellness programs that encourage and reward a healthy lifestyle, ideal for those prioritizing preventive healthcare.
8. HDFC ERGO General Insurance Co. Ltd.
HDFC ERGO features a Claim Settlement Ratio of 100% and a Solvency Ratio of 1.75, with 12,000+ network hospitals.
Best Suited For: Families in need of broad coverage, including maternity and newborn care. HDFC ERGO’s family plans offer an optimal blend of comprehensive benefits and affordability.
9. Bajaj Allianz General Insurance Co. Ltd.
Bajaj Allianz has a Claim Settlement Ratio of 93% and a Solvency Ratio of 3.91, with 11,000+ network hospitals.
Best Suited For: Individuals looking for a balance of wide-ranging coverage options at reasonable premiums, with plans that cater to various needs, including critical illnesses and care for senior citizens.
10. Acko General Insurance Co. Ltd.
Acko General Insurance is marked by an 83.88% Claim Settlement Ratio and a Solvency Ratio of 4.26, with over 14,300 network hospitals.
Best Suited For: Digitally savvy customers seeking efficient online policy management and claim settlement processes. Acko leverages technology to provide a streamlined and user-friendly insurance experience.
Step by Step Guide to Choosing the Right Policy
Choosing the best health insurance company in requires careful consideration of various factors, including policy coverage, premiums, CSR, customer service, and network hospitals.
By following the step-by-step guide you can make an informed decision that ensures peace of mind and financial security.
Choosing the most relevant health insurance policy for yourself as well as your loved ones is critical. Here are some tips, tricks, and actionable advice to guide you through the comparison process effectively:
Assess Your Health Status: Consider your current health condition, medical history, and any ongoing treatments or medications. This will help you determine the level of coverage you need.
Family Health History: If you’re opting for a family plan, take into account the health needs of all family members who will be covered under the policy.
Comprehensive Coverage: Look for plans that offer extensive coverage, including hospitalization, pre and post-hospitalization expenses, daycare procedures, critical illnesses, and maternity benefits, if applicable.
Exclusions and Limitations: Pay close attention to what is not covered by the policy and any specific limitations or caps on certain types of treatments or benefits.
Cashless Facility: Verify that the network hospitals offer cashless treatment, which can significantly ease the process during medical emergencies.
Insurer’s Reputation: Customer reviews can provide insights into the insurer’s customer service, claim settlement process, and overall satisfaction levels of existing policyholders.
Reliability: A higher CSR indicates that the insurer has a good track record of settling claims, which can be a crucial factor in times of need.
Value-Added Services: Some insurers offer additional benefits such as free health check-ups, wellness programs, discounts for leading a healthy lifestyle, and no-claim bonuses. These can add extra value to your policy.
Consult Experts: If you find the comparison process overwhelming, consider seeking advice from health insurance advisors or financial planners who can provide personalized recommendations based on your specific needs.
Choosing the best health insurance company in India for 2024 requires careful consideration of various factors, including policy coverage, premiums, CSR, customer service, and network hospitals. By following the step-by-step guide you can make an informed decision that ensures peace of mind and financial security.
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.
Credit cards are an important financial instrument that must always be used wisely. Credit cards offer flexibility and convenience. However, careless use can often lead to unnecessary financial liabilities and debt. Hence, in this article, we will guide you on how you can use a credit card responsibly.
10 Helpful Tips on How to Use you Credit Card Responsibly
Know Your Credit Card Terms and Conditions: It is advisable to thoroughly read and understand all the terms and conditions before using your credit card. You must know about the card fees and charges, like the annual fee, joining fee, the interest penalty charges, and so on.
Create a Budget: It is advisable to create a monthly budget that helps you keep track of your income and expenses. Make sure that your credit card usage is in accordance with the budget you have set. You must also avoid unnecessary spending with the card to attract credit debt.
Pay Balance in Full: You must always aim to make the full payment on your credit card rather than making a partial payment. This will help you improve your credit score and also reduce the interest that would be levied otherwise.
Duly Check Credit Card Statement: You must regularly check your monthly credit card statement to rule out any unauthorised or fraudulent transactions. Immediately report these transactions to the bank, if any.
Be Mindful of Credit Usage: It is advisable to keep track of your credit usage so that you don’t overspend against the credit limit. Going over the credit limit will negatively harm your credit (cibil) score if you fail to make the payment on time.
Make Payment Before Due Date: Always make sure to make your credit card payment before the due date, as this will improve your credit score. Late payments will not only attract late penalty fees but also harm your credit score.
Make Payments at Authorized Merchants: Be vigilant about making payments via unauthorised merchants or fraudulent websites to avoid any kind of scam. Making payments through authorised merchants and websites will eliminate the risk of misusing your credit card.
Redeem Cashback/Reward Points: If your credit card offers you cashback rewards or points, make sure to use them wisely. You can redeem these points to avail of discount offers on hotel stays, travel tickets, shopping, and other categories.
Choose Right Credit Card: Make sure to choose a credit card that is in alignment with your needs or preference. For instance, if you are a frequent traveller, it is advisable to opt for a travel credit card so you can maximise travel discounts and other benefits.
Seek Professional Guidance: In case you are struggling with credit card debt, don’t hesitate to seek professional financial advice. Credit counselling services can provide guidance on creating an ideal financial plan for you.
Conclusion
It is advisable to always be vigilant and prompt when it comes to credit card spending and making payments. By following these guidelines, you can maximise the benefits offered by a credit card while also mitigating its potential risks.
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.
In today’s time, the question of whether having health insurance really helps in providing substantial financial help is a matter of significant debate. Well, keeping in mind the rampant cost of living and the even faster moving health care inflation in India, let us tell you how having a health insurance policy can be beneficial.
Safeguarding Against Medical Inflation
Medical inflation in India has been on the rise over the course of years. As per reports, medical inflation in India is at 14% as of 2022, making medical inflation in India the highest among other Asian countries. With the increase in technological advancement and demand for healthcare services, the cost of healthcare treatments will also increase, making it more expensive to avail quality medical treatment.
Medical expenses like doctor’s fees, medicines, diagnostic tests, and so on can financially burden you if you are not prepared. Having a health insurance plan with sufficient coverage can safeguard you financially. Just by paying a health insurance premium every year, you can mitigate these financial risks while also getting the best medical treatment when needed.
Safeguards Your Family
To ensure that you and your family members get the best medical treatment available, it is imperative to have a health policy with sufficient coverage. Major illnesses like cancer and stroke can destabilize your finances. Having health insurance with sufficient coverage can provide the best treatment for you and your family members. Moreover, a high coverage plans also provide with a wider choice of hospitals, healthcare facilities, and so on.
Provides Financial Security
With many health insurance companies now offering cashless facilities that allow you to opt for medical treatments without touching your pocket. A right health policy will financially protect you and your loved ones from medical contingencies. It is advisable to check the benefits, coverage scope, and terms of the policy before purchasing. Make sure the health plan is in alignment with the medical and healthcare requirements of you and your family.
Leads to Peace of Mind
Knowing that you are covered and protected against life’s uncertainties brings a sense of security beyond monetary value. This immensely contributes to the mental, emotional, and physical well-being of you and your dear ones.
Leads to Accessibility of Quality Healthcare
Having health insurance ensures that you and your loved ones can get the required medical treatment without facing any obstacles. It ensures that the insured can avail of timely medical treatment irrespective of their financial situation.
Promotes Healthy Lifestyle
Health insurance helps you stay healthy by covering the costs of regular check-ups, consultations, and vaccinations. This means you can catch potential health issues early and prevent any kind of sickness.
Conclusion
Having health insurance is like a protective shield for your well being. It helps with money when unexpected health issues come up and encourages you to stay healthy. Having health insurance ensures that you and your loved ones can get the right medical care when required.
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.
One of the crucial decisions in life is when should you invest in health insurance? It is important to invest in the right health insurance policy at an early age to make the most of its benefits. For many reasons, it is best to invest in health insurance between the ages of 20 and 30. In this article, let us tell you why it is advisable to take health insurance at a young age.
Reasons to Buy Health Insurance at a Young Age (Before 30 Years)
1.) Affordable Premium
Health insurance premiums are significantly determined by the age of the individual. A person of young age is likely to pay a lower premium as compared to an elderly person. Younger individuals are likely to enjoy better health. Hence, health insurance companies consider them to have lower risks. It is advisable to buy a health policy at a younger age to benefit from these lower premium rates for an extended period, saving you money in the long run.
2.) Better Scope of Coverage
Opting for health insurance at a young age provides you with extensive coverage at an affordable premium. Unforeseen accidents and illnesses can happen at any age. Hence, having health insurance can financially protect you from these unseen events.
3.) Less Waiting Period
Health insurance companies usually have a waiting period of 32–48 months for specific illnesses. Buying a health plan at a younger age helps you surpass these waiting periods timely. This ensures that you have comprehensive coverage for most illnesses when in need.
4.) Continuous Coverage
Buying health insurance at a young age gives you another advantage, which is continuous coverage. Gaps in coverage can result in a limited blanket of coverage or higher premiums. Hence, investing in health insurance at a young age assures you peace of mind and protects your financial future.
5.) Financial Safety
Medical treatments are expensive and financially draining in the event of an unforeseen event like an accident or critical illness. Health insurance acts as a financial blanket that protects you from the high costs of treatments. This allows you to focus on your health and recovery rather than worrying about medical expenses.
6.) No Medical Check-up Before Policy Issuance
Many health insurance companies offer health plans to individuals without the need for a medical examination. As it is less likely to suffer from any disorders or any life-threatening illnesses before turning 30, insurance companies do not ask for a medical examination for young people. However, individuals over 45 years of age may need to undergo medical tests.
7.) Peace of Mind
Knowing that you have health insurance coverage provides you with peace of mind. It alleviates the stress and anxiety associated with the financial burden of medical contingencies. Young individuals can focus on their education and careers rather than having to worry about the risks in hindsight.
8.) Flexibility in Choosing Health Plans
Young people have more options when selecting health insurance plans that offer extensive coverage. This allows customisation for healthcare needs, premium affordability, and so on.
9.) Lesser Waiting period for Maternity
Many insurance policies cover maternity expenses after two years. Hence, purchasing medical insurance at a young age helps overcome this waiting period easily. Investing in health insurance sooner is also a smart decision for young couples.
Conclusion
Buying health insurance at a young age offers a multitude of benefits that extend beyond financial protection. Affordable premiums, coverage for unexpected events, and peace of mind are compelling reasons to consider investing in one early.
Investing in health insurance at a young age (between 20 and 30 years old) is not just a wise financial decision but a strategic investment in one’s long-term health.
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.
What are the Benefits of Bajaj Allianz Health Insurance?
Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, a European-based finance organisation. Bajaj Allianz offers multiple health plans for senior citizens, individuals, family plans, etc. From offering comprehensive coverage to 100% sum restoration, the benefits offered by the plans are many.
In this article, we will explain to you all the benefits offered by Bajaj Allianz Health Insurance.
Benefits of Bajaj Allianz Health Insurance
Following are the benefits of the health plans offered by the company:
Comprehensive Coverage: Health insurance plans by Bajaj Allianz offer extensive coverage that offers a broad spectrum of protection. Their health plans cover hospitalisation, domiciliary expenses, multiple daycare treatments, ambulance charges, and so on.
Cumulative Bonus: Bajaj Allianz health plans provide the benefit of a cumulative bonus that increases your sum insured as a reward for claim-free years. The cumulative bonus offered in the health plans ranges anywhere from 10% to 100% of the sum insured.
Ayush Coverage: Health plans offer coverage for AYUSH treatments that include Ayurveda, Unnani, Siddha, homoeopathy, and so on. Ayush coverage is provided to offer an extra cushion of safety to the policyholder in case of medical contingencies.
Cashless Treatment: Bajaj Allianz offers cashless facilities to its policyholders at their network hospitals across India. In a cashless facility, the insurer will directly settle the medical bills with the hospital without pinching a hole in the policyholder’s pocket.
Daily Cash Allowance: This feature offers a daily cash allowance to the policyholder for a certain period of time. The insurance company provides a specified amount for every day of hospitalisation, compensating for the loss of income.
Sum Restoration Benefit: Health plans offered by the company come with restoration benefits. This automatically replenishes your coverage up to the 100% sum insured once exhausted.
Maternity Coverage: Multiple health plans also offer maternity coverage that covers delivery expenses, c-sections, newborn baby expenses, vaccinations, and much more.
Tax Benefit: You can claim a tax deduction on premiums paid under Section 80D of the Income Tax Act.
Critical Illness Treatment: Health plans by Bajaj Allianz offer critical illness coverage that is prolonged and fatal in nature. Life threatening illnesses like heart ailments, liver failure, cancers of varying intensity, and more will be covered. The company will offer a lump-sum payout as a form of compensation for treatments as well as other costs of medical support.
Lifelong Renewability: This feature offers lifetime renewability, which allows the policyholder to renew their health insurance plan without any restriction on age. With this lifetime renewability feature, you can enjoy continued renewal for your entire life. Also, for senior citizens, this feature reduces any financial pressure in case of a medical emergency with a continued renewal of their health plan.
Wellness Benefits: Wellness benefits like a concession in renewal fee, vouchers for supplements, boosters, free health checkup, and so is added as bonus in plan coverage. These wellness benefit offers the extra financial support to the insured and its family members.
Why choose Bajaj Allianz?
Claim Settlement Ratio: The company has a robust claim settlement ratio of 96.59%, which indicates the company is dedicated to settling genuine claims in trying times.
Network Hospitals: Bajaj Allianz Health Insurance has more than 8000+ network hospitals, which gives you a vast range of hospitals to choose from. You can avail of cashless treatment in these hospitals without worrying about paying the hospital bill from your pocket.
Dedicated Customer Support: Bajaj Allianz provides 24/7 dedicated customer support to its policyholders at all times. The company also strives to settle claims within 15 working days from the date of registering the claim.
Pre-Medical Test Not Needed: Most health policies offered by the company do not require individuals to undergo medical examinations before purchasing the policy.
Health Plans offered by Bajaj Allianz
Sr No
Plan Name
Plan Type
1
Bajaj Allianz Health Guard Plan
Individual/Family Floater Plan
2
Bajaj Allianz Health Infinity Plan
Individual Plan
3
Bajaj Allianz Critical Illness Plan
Individual Plan
4
Bajaj Allianz Criti Care Plan
Individual Plan
5
Bajaj Allianz Global Personal Guard Plan
Individual Plan
6
Bajaj Allianz Extra Care Plus
Top Up/Family Floater Plan
7
Bajaj Allianz M Care Plan
Individual/Family Floater Plan
How long does it take for claim settlement with Bajaj Allianz?
It takes anywhere between 7-15 working days to settle claims.
How to buy Bajaj Allianz Health Plans?
You can visit the official website of Bajaj Allianz to buy the plans.
What are wellness additions in Bajaj Allianz Health Plans?
Wellness additions like concession in the renewal fee, vouchers for supplements, boosters, free health checkup, etc. are added as bonuses to the plan.
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.
What is covered under Aditya Birla Health Insurance?
Are you wondering what are the inclusions and exclusions with Aditya Birla Health Insurance? Let’s check out some of the most important inclusions and exclusions with Aditya Birla Health Insurance. The following are some of the most noteworthy inclusions and exclusions with Aditya Birla Health:
What is Covered with Aditya Birla Health (Inclusions)
What is Not Covered with Aditya Birla Health (Exclusions)
What is Covered under Aditya Birla Health (Inclusions)
Firstly, what is covered under Aditya Birla Health Insurance is dependent on the kind of health insurance policy a policyholder opts for. Different health insurance policies will have different inclusions. That being said, mentioned within are some of the general inclusions that are covered under Aditya Birla Health:
Maternity Expenses
In patient hospitalization expense
Daily cash expense
Day care treatment expenses
Pre and post hospitalization expenses
Home treatment expenses
Ayush / Alternative treatment expenses
Free health check up
Organ donor expenses
Ambulance expenses
What is Not Covered with Aditya Birla Health (Exclusions)
Again, let us now talk about some of the exclusions of Aditya Birla Health. Mentioned within are some of the general exclusions and they can differ from policy to policy:
Cosmetic treatments
Abortion related expenses
Suicide and suicide attempts
Illness during waiting period
Mental illness
Expense arising out of war or warlike conditions
Sexually transmitted diseases
Congenital Anomaly
Event arising resulting from the insured person committing any breach of law
It is extremely important that you consult the prospective insurance company before buying a health plan. Ensuring that you are well aware of the inclusions as well as exclusions of a health plan prior to making a purchase will ensure that you end up with a perfect health insurance policy for yourself and your family.
You can also reach out to a health insurance agent and ask him out the up to date inclusions and exclusions of Aditya Birla Health.
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.
Is ₹2 lakh health insurance enough in today’s day and age? Well, keeping in mind the rampant cost of living and the even faster moving health care inflation, ₹2 lakh insurance cover would most likely not cover the complete cost of emergency treatment for policyholders.
Let us further break down the rationale why ₹2 lakh health insurance coverage is no longer sustainable in 2023.
Rampant Medical Inflation
Medical inflation in India has been rampant over the course of the last few years. In fact, medical inflation is highest in India compared to all Asian nations. The medical inflation in India is at 14% as of 2022. This essentially means that the cost of medical treatments is increasing at 14%
This is much higher than the general inflation rate of 5.72%. This is one of the most important reasons for increasing your health insurance coverage.
Expensive Treatment for Critical Illnesses
The cost of critical illness treatments has continuously been increasing over the years and this is expected to continue. Critical illnesses include neurological, cardio-issues, cancer, and more. These issues have the potential to drain a person’s finances over the course of many months and even years.
It is absolutely imperative that a person has safeguards in place against the costs emanating from treating critical illnesses.
General Inflation is also increasing
The general inflation in India has been increasing from 3.3% in 2017 to 5.7% in 2022. It is now projected to go over 6%. As the general inflation in India increases, so does the cost of all goods and services, making everything more expensive, thereby decreasing the efficiency of health coverage.
Floater Plans should have higher coverage
A floater health insurance policy is a policy that covers all members of a family, thereby increasing the number of people covered under a single health insurance policy. A lot of people today are opting for a floater health insurance policy and it is gaining in popularity.
A person needs to be cognizant of the fact that he needs a sufficient coverage if he aims to adequately protect all his family members.
Outpatient Expenses
Outpatient expenses need to be factored in while buying an insurance policy. A health insurance policy with low coverage usually excludes outpatient expenses therefore it could be a prudent choice to ensure that you buy a health policy with outpatient coverage. Different costs in different Geographical locations
It is possible that the policyholder may travel across the country. If he or she does so, it is extremely important for them to realize that different parts of India have different medical expenses. A village or a town will have lower medical expenses compared to tier 1 and tier 2 cities. Keep this in mind.
Pre and Post Hospitalization Expenses
People usually do not factor in the costs associated with pre and post hospitalization before selecting the coverage of their health plan. A policy buyer needs to ensure that his plan offers adequate pre and post hospitalization coverage.
These are some of the most important reasons why a policy buyer needs to ensure that his health insurance policy has sufficient coverage. A ₹2 Lakh coverage may be enough for certain small treatments like hernia treatment, cataract treatment, small planned treatments but it is more than likely that a ₹2 Lakh health cover will not be sufficient for emergency hospitalizations and critical treatments.
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.
