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Health Insurance

Difference Between Individual And Family Health Insurance

Difference between individual and family health insurance plans

If you are looking to buy health insurance for your entire family, you should look at investigating family floater health insurance plans. They could reduce your premium costs and increase your coverage.

Let us learn about the difference between individual health insurance and family health insurance (Floater health insurance) and their advantages over individual health insurance plans.

What is a family floater health insurance plan?

A family floater health insurance plan is a single health insurance policy that provides coverage to your entire family. You do not need to buy different health insurance policies for different members of your family. A single policy will provide protection to your entire family. Let us understand the concept of a floater policy with the help of an example.

Example

Mr. Srinath has a family of 4. himself, his wife, and his 2 sons. He wants to buy a health plan that covers his entire family. He buys a floater health insurance policy from Reliance General Insurance with a coverage of Rs 30 Lakhs.

If any of his family members get hospitalized, they can get coverage under this one single policy. The premium costs of this policy will also be much lower compared to an individual policy of similar value.

Difference between individual and family health insurance plans

 

Individual Health Insurance

Floater Health Insurance

Does it provide coverage to the entire family?

No. It only provides coverage to a single policyholder

Yes. A floater policy will provide coverage to the entire family.

Does this plan cover parents?

No

Yes. A floater policy can provide coverage to aging parents and even in laws.

What is cheaper?

Since this is an exclusive policy, the per person premium cost will be higher.

Since this is a non-exclusive policy, the per person premium cost will be lower compared to an individual policy.

Is it widely available?

Yes. This is the most widely available health insurance policy.

Yes. A floater health plan is also very widely available. Most health insurance companies have this type of plan.

Is it suitable for a large family?

No. Only suitable for one person

This plan could be suitable for a large family but you should ensure that the coverage amount is adequate to cover all members of the family.

How is the premium amount decided?

Based on the policyholder

Based on the most senior member of the family.

Can the policy be ported?

Yes. An individual health insurance policy can easily be ported to another insurance company if the policyholder chooses to do so.

Yes. There are no restrictions in porting a floater health insurance policy to another insurance provider.

We hope this article has given you a brief understanding of individual and floater health insurance companies and the difference between the two. We hope you will use this information to make a smart health care decision for yourself and your family.

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Health Insurance

Advantages Of Acquiring Insurance At An Early Age

Advantages of acquiring insurance at an early age

With the current pandemic situation and lifestyle choices of individuals, buying health insurance has never been more important. It is absolutely critical for a person to buy health insurance for himself and his family.

However, insurance premiums can be a slight hiccup when a person is looking to buy insurance. How can a person buy insurance and not pay a high premium at the same time? Can it be done? Absolutely!

Let us have a look at some of the advantages of buying insurance at an early age.

Advantages of buying insurance at an early age

The earlier you buy, the cheaper the premium

If you’re looking to get insured for a relatively low premium, then buying insurance early is the way to go. Insurance company premium slabs vary as the policyholder’s age increases. Let us understand this with an example.

Example

Mr. Jayesh (25 years old) wants to buy a health insurance policy with a coverage of Rs 10 Lakhs from Manipal Cigna Health Insurance. The company quotes him a premium of Rs. 10 thousand a year for the coverage.

Mr. Mukesh (55 years old) wants to buy the same health insurance policy with the same coverage. The company will now quote him a price of Rs 25 thousand per year for the coverage.

As you can see, buying insurance early can massively reduce the premium costs.

No health check-up for young buyers

Insurance companies generally do not insist on a health check-up from younger customers. This can make buying health insurance really simple for younger people. As the customer’s age goes up, the insurance company can insist on a comprehensive health check-up of the customer. If you want to avoid this, buy a policy early on in your life.

Higher coverage

Insurance companies are generally hesitant to provide high coverage to older customers. If the age of the customer is relatively young, he/she can get the benefit of higher coverage for a lower premium. The coverage amount is usually lower for customers buying policies after 60 years of age.

Avail tax benefit for longer duration

If you buy insurance at an early age, you can avail of tax benefits under Section 80D of the I.T Act for a longer duration. This will reduce your overall tax liability greatly over the coming years.

Pre-existing conditions

There is a chance that your insurance company will exclude coverage of any pre-existing conditions if you are at an advanced age. To avoid this issue, a customer should ideally buy a health plan early on in their life. Doing so will ensure that the insurance company will provide coverage to any pre-existing condition that the customer may be suffering from.

Companies will generally accept your application easily if you are young

Companies generally accept your insurance application very easily without any scrutiny if the customer is young. If you want to avoid company scrutiny buy insurance early.

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Insurance

What is surrender value in insurance? (Types, Benefits & Examples)

What is surrender value in insurance? (Types, Benefits & Examples)

Have you ever wondered about the concept of surrender value while purchasing an insurance policy? You are not alone, policyholders often want to understand the concept of surrender value, and we are here to elucidate the same.
This article will talk about the following important aspects about the concept of surrender value in life insurance:

  • What is surrender value?
  • Types of surrender value
  • Benefits of having a policy with a surrender value?
  • Examples of a policy having a surrender value

What is surrender value?

There are situations where the policyholder may want to terminate their insurance policy before maturity. Upon policy surrender, the insurance company is liable to pay whatever is the current surrender value (minus company charges and penalties) to the policyholder. This is payment is called as the surrender value of a policy. A surrender value is usually available when a policyholder purchases an endowment plan. That being said, a surrender value is also available in certain other types of insurance policies.

Surrender value factor

The surrender value is dependent on your surrender value factor. For instance, if your insurance policy has a has a surrender value of 30%, you will receive only 30% of the total premium paid as a surrender value. Different types of policies have different surrender value factors.

Your surrender value factor will be mentioned on your policy brochure and policy bond.

Types of surrender value

Guaranteed surrender value

A guaranteed surrender value is paid based on the surrender value factor. For instance, if a person has surrendered a policy after 5 years and has a surrender value factor of 30%, he will receive 30% of the total premium paid as a surrender value. Other additional company charges may also apply.

Special surrender value

A special surrender value is an amount that is equal to or higher compared to the guaranteed surrender value. This special surrender value is calculated based on the paid-up policy value and the total accrued bonus (multiplied by the guaranteed surrender value factor).

Benefits of having a policy with a surrender value?

Peace of mind: Having a policy with a surrender value ensures that the policyholder will get a particular lump sum payment even if he decides to terminate the policy before maturity. If you wish to avail of this benefit, ensure that your policy has a surrender value component linked with it.

Flexibility: A policyholder can prematurely terminate his policy knowing he will get a surrender value. This provides flexibility to the policyholder. He can then decide to enroll with another insurance company.

Payment of expenses: The policyholder can use the surrender value to pay for his expenses like living expenses, marriage expenses, medical expenses, educational expenses, etc. Policies should not ideally be surrendered before maturity but in certain rare cases the policyholder may be forced to surrender his policy due to certain unfortunate conditions.

Examples of a policy having a surrender value

Let us understand the concept of surrender value with 2 simple examples.

Example 1

Let us assume that Mr. Rishikesh has bought a ULIP life insurance plan from HDFC Life Insurance, having policy maturity of 20 years. He has paid his premium on time for over 10 years.
The total amount of premium paid by Mr. Rishikesh amounts to Rs 5 Lakhs. The company invested this premium into a mutual fund and the current value of Mr. Rishikesh’s fund is Rs 8 Lakhs.
Upon policy surrender, Mr. Rishikesh will receive Rs 8 Lakhs (minus company charges). This amount can be termed as Mr. Rishikesh’s policy surrender value. Post surrender, the policy will be terminated.

Example 2

Let us assume that Mrs. Shakuntala bought a LIC endowment insurance policy, having maturity of 20 years. Mrs. Shakuntala regularly paid her premium for 5 years and the total premium paid amounted to Rs 2 Lakhs. As her endowment policy has a surrender clause within it, she can surrender her policy and receive the Rs 2 Lakhs as her surrender value. Rest assured, the company will deduct their charges and penalties from this amount and then release the value to her.

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Life Insurance

SBI Life Insurance (Plans, Benefits, Claims & More)

SBI Life Protection Plans

SBI Life Insurance (Plans, Benefits, Claims & More)

SBI Life Insurance is a joint venture between the State Bank of India (SBI), the largest government-owned banking and financial services company in India, and BNP Paribas, a multinational financial services company headquartered in Paris, France.

The company was formed in March 2001, ever since it has had a far-reaching presence across the nation operating through 950+ offices, more than 17,000 employees, 16,000+ associated agents, and more than 28,000 partner branches.

SBI Life is committed to serving millions of families across India with its wide range of insurance products and services. it offers a broad variety of insurance plans catering to all types of customers and insurance buyers. The company provides numerous plans like pension, savings, term, unit-linked plans, etc for individuals, families, and groups at an affordable premium.

In this article, we will discuss the following

  • Company specifications
  • Plans offered by SBI Life Insurance
  • Awards received
  • Why choose SBI Life Insurance?
  • How to buy SBI Life Insurance plans?
  • SBI Life Insurance claim process

Company specifications

Claim settlement ratio

94.52%

Solvency ratio

234%

Branches

950+

Headquarters

Mumbai

Website

www.sbilife.co.in

Customer care

Toll free number : 1800 267 9090

Email ID

info@sbilife.co.in

Plans offered by SBI Life Insurance

SBI Life Savings Plans

Plan nameAbout the plan
SBI Life Smart Platina Assure PlanThis is an endowment assurance savings plan that offers lumpsum payouts on maturity period and also provides the benefit of a life cover.
SBI Life New Smart Samriddhi PlanThis plan offers a death benefit that provides a lumpsum payout in case of demise of the policyholder or provides a lumpsum payout along with any accrued bonus upon surviving the maturity period.
SBI Life Smart Future Choices PlanThis is a multi-layered plan offering several benefits like cash bonus, survival, or maturity benefit along with a life cover. It is available in two different variants Classic and Flexi Choice.
SBI Life Shubh Nivesh PlanThis non-linked, participating life insurance product offers a life cover, income, and savings components clubbed together in the same plan.
SBI Life Smart Bachat PlanThis endowment plan financially protects you and your family from the uncertainties of life. The plan offers maturity benefits in which the basic sum assured plus accrued bonus if any will be paid upon maturity period or the same shall be paid as a death benefit in case of death of the policyholder. This plan is available in two options A and B plan.
SBI Life Smart Hamsafar PlanThis is a savings cum life insurance plan that covers legally wedded couples. In this plan, a lump sum payout will be paid to the surviving policyholder in case of the death of any insured partner.

SBI Life Protection Plans

Plan nameAbout the plan
SBI Life eShield PlanThis is a term insurance plan that offers life cover to the policyholder. In this plan, the company will offer a sum assured to the nominees of the policy in case of the unfortunate death of the policyholder.
SBI Life Saral Jeevan Bima PolicyThis is an affordable life insurance plan that guarantees a payout of the base sum assured to the beneficiaries of the policy in case of the death of the insured individual.
SBI Life- Poorna Suraksha PlanThis term plan provides coverage against death and critical illnesses. It also waives any future premiums in case the policyholder is diagnosed with any of the listed illnesses defined in the policy.
SBI Life Sampoorn Cancer Suraksha PlanAs the name suggests, this plan by SBI protects against all stages of cancer. In this plan, the policyholder will receive lumpsum payments during minor, major and advanced stages of cancer. This plan is available in three variants: Standard, Classic, and Enhanced Plan.
SBI Life Corona Rakshak PolicyThis is a cash benefit plan that provides a lumpsum payout of 100% sum assured after the first diagnosis of COVID-19.
SBI Smart Swadhan+ PlanThis is a life insurance plan that offers a 100% return on premiums paid upon the maturity period.
SBI Life Grameen Bima PlanThis is a micro-insurance policy for the economically weaker sections of the society, under this plan guaranteed sum assured will be paid to the nominees in case of death of the policyholder.
SBI Life Smart Shield PlanThis is a regular term insurance plan that offers only life cover to the policyholder. There are no maturity benefits available under this plan.
SBI Life Saral Swadhan+ PlanSBI Swadhan + plan offers a death benefit and also returns 100% of premiums paid upon completion of 10 years of the policy period or 115% of the premium paid upon completion of 15 years of the policy period.

SBI Life Retirement Plans

Plan nameAbout the plan
SBI Life Retire Smart PlanThis is a unit-linked plan which provides a life cover and also pays back 100% of your premiums paid upon the maturity period.
SBI Life Annuity Plus PlanThis is an annuity plan that also offers bonus payouts. The premium for this policy has to be paid in a single lumpsum amount and the annuity begins instantly from the next month, six months, or a year as selected by the policyholder.
SBI Life Saral Pension PlanThis traditional pension plan takes care of your financial needs post-retirement. It offers a life cover and bonus payouts during the policy period.

SBI Life Unit- Linked Plans

Plan nameAbout the plan
SBI Life eWealth PlanThis plan is designed to offer dual benefits of a life cover and market-linked returns on investments growing your corpus. It is available in 2 types of variants.
SBI Life Smart InsureWealth PlusThis unit-linked plan offers life insurance cover and also increases higher fund value through market-linked returns. The plan provides 3 types of different investment strategies to invest in accordingly: Smart choice strategy, Auto asset allocation strategy, and Trigger strategy.
SBI Life Saral InsureWealth PlusThis is a unit-linked and non-participating life insurance plan that provides the advantage of life coverage along with monthly payout options
SBI Life Smart Wealth Builder PlanSmart Wealth Builder Plan offers life insurance cover and 11 types of investment funds to invest in to build a solid corpus for the policyholder and their loved ones.
SBI Life Smart Power Insurance PlanThis ULIP plan offers life insurance coverage in which the company will pay the death benefit to the nominee or a lumpsum amount of the fund value will be paid to the policyholder on surviving the policy tenure. The plan provides various fund options – Increasing and Level Cover Options to choose from.
SBI Life Smart Elite PlanLike most Unit-linked plans this plan also offers investment returns and life insurance cover, not only that this plan also offers accidental life coverage providing 360-degree protection.
SBI Life Smart Privelege PlanThis plan offers the policyholder 11 kinds of investment funds to invest in for creating a solid corpus along with the advantage of a life cover.
SBI Life Wealth Assure PlanThis unit-linked product offers a life insurance cover and market-linked returns with a one-time premium payment option.

SBI Child Insurance Plans

Plan nameAbout the plan
SBI Life Smart Champ InsuranceThis child insurance plan is intended to financially provide for the child’s future in the absence of the parents. It offers death and accidental disability coverage along with maturity benefits during the policy period.
SBI Life Smart ScholarThis ULIP plan offers a lump sum payout of the base sum assured or 105% of the total premiums paid, whichever is higher will be paid in case of the death of the insured parent. All future premiums will also be waived off and the accumulated fund value will be paid instantly in the absence of the insured parent.

Awards received

Below given are a few awards and recognitions won by SBI Life Insurance

  • ‘Best Life Insurance Company’ at ICC Emerging Asia Insurance Conclave awards 2019.
  • ‘SMART Award- Life Insurance in Large Category’ at ET Insurance Summit in Mumbai, 2019.
  • CCircle Award for 2020 under the category ‘Financial Services Company of the Year’
  • Winner of the ‘Golden Peacock Award’ for Risk Management in the year 2018.

Why choose SBI Life Insurance

Claim settlement ratio

SBI Life Insurance has a stellar track record when it comes to settling genuine claims of its customers. As per IRDA, the company has an ideal track record of 94.52% for Fy 2019-2020, indicating that the company is reliable and dedicated when it comes to settling claims of its customers and not depriving them of their rights.

Highest solvency ratio

According to IRDA, all life insurance companies must maintain an ideal solvency ratio of 1.5% in India. The solvency ratio is a parameter that estimates the financial reliability and trustworthiness of a company. SBI Life Insurance has the highest solvency ratio among all life insurance companies in India, indicating that the company has strong financial statements and is extremely reliable when it comes to meeting its long-term debts or obligations.

PAN India presence

The insurer operates with 950+ branches and offices all across the country providing access to all kinds of customers and insurance buyers to avail of their services.

Budget-friendly plans

The company offers highly comprehensive plans financially shielding the policyholder and their loved ones from uncertainties of life at an affordable premium.

Wide range of plans and products

The insurer provides a wide range of plans that cater to the needs and requirements of all kinds of customers and insurance buyers.

Trusted name

SBI Life is among the oldest insurance companies in the country and has grown tremendously, that today it contributes significantly towards the insurance industry and is one of the most trusted life insurance companies in India.

How to buy SBI Life Insurance plans?

You can easily buy a health plan with us on InsuranceLiya.com.

Step 1: Simply furnish us with your name, email, and mobile number.

Step 2: We will call you shortly and assist you with a suitable plan for you or your family.

SBI Life Insurance claim process

In case of the unfortunate death of the policyholder, the nominee or the claimant needs to follow these simple steps to claim the policy benefits.

Online process

Step 1– Inform the company about the event by visiting their official website and filling the claim form with the requested details.

You can also inform the insurer by writing to them on the email address i.e claims@sbilife.co.in or you can connect with them on their toll-free number 1800 267 9090.

Step 2– After you have informed the company about the same, you are requested to submit the following supporting documents to initiate the claim further.

Step 3– After you have submitted all the documents to the insurer, the insurer will thoroughly verify the claim along with the policy terms and conditions. After thorough verification, the company will approve the claim accordingly.

Step 4– Once the decision is taken, the claim amount will be released as per the terms and conditions of the policy.

Note: For any further queries regarding the claim you can write to info@sbilife.co.in.

Offline process

Follow these simple steps for the offline claim process with SBI Life Insurance

Step 1– Inform the insurer about the event on their toll-free number i.e 1800 267 9090 or by visiting the nearest SBI Life Insurance office or branch.

Step 2– Submit the following supporting documents to the company.

Step 3– The company will thoroughly verify the claim along with the policy terms and conditions and will approve the claim accordingly.

Documents to be submitted

  • Mandatory documents
  • Claim form
  • discharge/death summary
  • Nominees or claimants ID proof

Additional documents

  • Medical records, admission notes, test reports, etc.
  • Original death certificate
  • Cancelled cheque by the claimant
  • Copy of FIR
  • Tax residency certificate
  • Medical attendant’s certificate
  • Hospital treatment certificate

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Life Insurance Corporation

How to take a loan against your LIC policy (Simple Guide)

How to take a loan against your LIC policy (Simple Guide)

Are you looking to take a loan against your LIC policy? This article will guide you on how you can do that in simple steps. There are a lot of times where you wish you could take a loan against your existing LIC policy, be it to pay for education expenses, unforeseen medical expenses, or anything else.

Some LIC policies offer their policyholders the flexibility to take a loan against their LIC policy, this could be a massive boon during challenging times for policyholders.

Further, it is also important to know if your LIC policy does offer you this benefit, in case the need arises.

This article will be touching base on the following important topics:

  • LIC policies that offer loans
  • The process to apply for a loan against LIC policy
  • Required documents
  • Eligibility for availing of a loan
  • Benefits of availing a loan against your LIC policy

LIC policies that offer loans against a policy

LIC offers quite a few policies that provide a loan facility. If you have one of the below-mentioned policies, you can avail for a loan by keeping your policy value as collateral. Let us find out which policies are eligible for this benefit:

Policy namePolicy type
LIC Jeevan UmangWhole life
LIC Jeevan PragatiEndowment
LIC Jeevan LabhEndowment
LIC New Endowment PlanEndowment
LIC Jeevan RakshakEndowment
LIC Jeevan LakshyaEndowment
LIC Aadhar StambhEndowment
LIC Single Premium Endowment PlanEndowment
LIC New Jeevan AnandEndowment
LIC Aadhar ShilaEndowment
LIC New Money Back Plan (20 years & 25 years)Money back
LIC New Bima BachatMoney back
LIC Bima ShreeMoney back
LIC Jeevan ShiromaniMoney back
LIC New Children’s Money Back PlanMoney back
LIC Jeevan TarunMoney back

You can avail of a loan against your policy if you have any of the above policies. That being said, loans are available after the policyholder has completed 1-3 premium paying years.

The process to apply for a loan against LIC policy

You can apply for a loan in 2 ways, offline and online. Let us lay down both loan application processes for you.

Online loan application

Step 1: Register or log in through LIC e-services portal

LIC account login
LIC e-services account

If you have not registered on LIC e-services, you can view our LIC registration and LIC login guide. They will show you how you can easily register and log in to your LIC e-services account.

Step 2: Check if your policy is eligible to receive a loan

Step 3: Check the interest rate of the loan

Step 4: Check the available loan amount

Step 5: Apply for the loan

Offline loan application

You can also visit your nearest LIC branch and apply for a loan. Upon visiting, you can request the office to hand over a loan application form. Kindly fill in the form and attach your KYC details. Once done, hand over the form to the officer. He will get back to you at your registered phone number.

Required documents

The following documents are required on your part if you wish to apply for a loan:

  • Original policy bond
  • Aadhar card
  • PAN card
  • Voters ID
  • Bank account statement
  • Driver’s license
  • Duly filled loan application form

Eligibility for availing of a loan

The following are the eligibility criteria for availing of a loan with LIC

  • The policyholder must be an Indian.
  • The policyholder must be over 18 years of age.
  • The policyholder must have a running LIC policy.
  • The policyholder must have paid policy premium for 1-3 years (certain policies provide a loan if the policyholder has paid the first year’s premium, certain policies require that the policyholder has paid at least 3 years premium)

Benefits of availing a loan against your LIC policy

No credit score: You will not require a credit score to avail a LIC loan. The loan value will simply depend on your policy surrender value. The higher the surrender value, the higher the loan you can avail of.

Comparatively low-interest rates: As LIC is a government organization and majorly exists for the welfare of Indians, the interest rates charged by LIC are comparatively lower compared to private and public sector banks. LIC usually charges a 9%-11% interest rate on their loans.

Fast and easy processing: The loan processing is generally done very quickly as LIC already has all the details that they need with them. Online and offline loan processing will be done swiftly.

Flexible loan repayment: You can repay your loans via flexible bite-sized EMIs.

Loan on 90% of surrender value: You can apply for a loan up to 90% of your policy’s surrender value.

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Insurance

What is Transit insurance? (Meaning, Types & Benefits)

What is Transit insurance?


The development of the transportation sector has eased and increased the movement of goods from one place to another. Although the increase in transportation activities has helped various businesses to flourish and grow, the goods are subjected to various risks while in transit.

Transit insurance is one of the most important precautionary measures that helps in eliminating these risks. Let’s understand transit insurance in a depth.

What is transit insurance?

Transit insurance provides security to the goods while they are on transit from one place to another. It insures the policyholder against the damages or losses that might be caused to the goods when they are being carried by a private vehicle driven by the owner himself, his employ or any third-party carriers.

The premium for the insurance is decided based on the goods being transported and the risks involved in transporting the goods.

Types of Transit Insurance

Here are a few types of transit insurance policies.

1. Single Transit Insurance

The insurance is provided for a single transit only i.e. the coverage will end as the goods reach the destination. This policy is best suited for business owners who send out shipments occasionally.

2. Open Transit Insurance

As opposed to single transit insurance, this policy provides coverage for multiple transits. Any number of transits made by the business owners in the policy period will be covered by insurance. This is a very beneficial policy for business owners that frequently export, import items as they don’t have to purchase different insurance for each trip.

3. Third-Party Carrier Cover

This type of transit insurance provides coverage against damage and loss of goods when they are being transferred on third-party vessels or carriers.

4. Multiple Vehicle Cover

This type of policy covers any kind of risks to the goods when it is being transferred through multiple vehicles to the destination.

Benefits of Availing Transit Insurance

Here are a few benefits of transit insurance:

  • Transit Insurance provides financial support to businesses in case of loss or damage to their goods. It helps the businesses recover from the loss and restart again.
  • The coverage provided under transit insurance meets global standards and is beneficial for the export of goods. The insurance helps transport the goods internationally without worrying about the coverage requirements of the destination country.
  • The transit insurance policy can be customized to suit any business type.
  • The policy is easy to avail online and requires minimum documentation.
  • The policy along with goods also provides cover for damage or loss of livestock in transit.

Coverage Under Transit Insurance

Goods are covered against:

  • Any kind of damage caused by natural and man-made calamities
  • Accidents like collisions, sinking of the vessel, etc.
  • Risks involved in loading-unloading and packing-unpacking of goods.
  • Thefts, malicious and accidental damages.

Who can buy a transit insurance policy?

Transit insurance policies can be taken up by the following:

  1. Importers and Exporters
  2. Manufacturers
  3. Aggregators
  4. Transporters
  5. Custom House Agents
  6. Traders


Many business owners transport their goods within India and globally. With uncertainties involved in transit, it is important to protect these goods from any natural or manmade risks.

A wide variety of insurance companies provide transit insurance with many coverage options and customizations to suit your business.

You must research and carefully choose the best policy for your business.

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Insurance

What is Title Insurance? (Meaning, Benefits & Coverage)

What is Title Insurance?

For many people, having their own house is one of the biggest goals of their lives. The last thing that anybody would want is an unexpected problem regarding the ownership of the house after they’ve completed the purchase. This is where title insurance could help them out.

What is Title Insurance?

Title insurance is an insurance that protects lenders and homebuyers from financial loss that could be caused due to a problem or defect with the title of the property.

If a problem arises with a title when there is a transfer of property ownership, then the title insurance company will be responsible for paying the legal expenses that are mentioned in the policy. Unlike other insurance policies, which protect the insured against future problems, a title insurance policy protects the insured against the claims for past disputes.

A ‘title’ to a home refers to the legal rights that the owner has over the property. A clear title is very important for any real estate transaction. Any buyer who wants to buy a property intends to gain a clear and marketable title to the property and know the restrictions on the property. Sometimes, state laws and local restrictions can also cause problems with ownership.

If a property has any problems with the title, then it is the responsibility of the new owner to resolve these disputes. Some examples of common claims filed against a title are back taxes, easements and conflicting wills.

Title insurance is of two types:

Lender’s Title Insurance

As the name states, the lender’s title insurance protects only the lender from any liability that could arise due to defects in the title.

Owner’s Title Insurance

The owner’s title insurance protects the homebuyer from any financial loss that could be caused due to problems with the title. This insurance is optional. It is often bought by the seller to protect the buyer.

How does title insurance work?

Insurance companies conduct a search on every title to check if there are claims or debts of any kind against them before the tittles are issued. This is called a title search.

A title search is conducted when public records are examined to determine and confirm a property’s legal ownership. In simple words, by confirming that a property has a clear title, the title company is ensuring that the person selling the property is the rightful owner and has the right to sell it.

After the title company has confirmed a clear title or identified issues, it starts the underwriting process. In this, they assess the existing issues and try to find any potential undiscovered ones.

The title company offers a quote for a policy on the basis of those risks.

If a title has too many defects or problems, the title company may not offer a policy quotation. An example of something that can make a title ‘dirty’ or ‘problematic’ is unresolved building code violations.

After the property purchase agreement is completed, a closing agent initiates the insurance process. Usually, a lender’s policy and an owner’s policy are required together to guarantee that everyone is properly protected.

What is Covered by Title Insurance?

A basic title insurance policy will cover the following:

  • Forged or falsified deeds or documents
  • Other fraudulent issues such as incorrect signatures on documents.
  • Outstanding debts, liens and lawsuits
  • Problems and disputes with ownership

What are the benefits of Title Insurance?

Imagine that a homebuyer finds their dream house and after closing the deal finds out that there are unpaid property taxes from the previous owner. If the buyer doesn’t have title insurance, then they will have to bear the financial burden of the claim for back taxes.

They will either have to pay the outstanding property taxes or risk losing the home to the taxing authority. And if in this same scenario, the buyer has title insurance, the coverage will protect the buyer for as long as they own the property.

Title insurance protects the investments made in real estate and provides cover against financial loss arising from title defects. As it safeguards all possible title disputes that could arise, it is highly beneficial to consumers as well as lenders.

Some benefits of title insurance are:

  • The title insurance company will conduct a thorough title search before offering a policy, therefore any frauds or other issues will be detected protecting the buyer from the losses that could have occurred to him.
  • It provides cover against any problems that may be caused due to a defective title document. It also covers litigation costs.
  • It ensures that the person interested in buying a property follows the due diligence process.

As every insurance has its own disclaimers, so does title insurance. It is very important to go through the policy carefully and understand the coverage provided before buying title insurance.

It is also important to understand the process of claiming the policy, renewal of the policy and the types of evidence required to prove the loss.

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What is Insurance Solvency Ratio?

What is Insurance Solvency Ratio?

The insurance solvency ratio is a measure of the company’s financial health. A solvency ratio will indicate if a company’s cash flow is enough to meet its liabilities and complete its financial commitments.

A low solvency ratio means that a company is more likely to default on its financial obligations.

On the other hand, a high solvency ratio means that a company is capable of meeting its debt and other financial obligations.

Instead of measuring the net income of the company, a solvency ratio measures a firm’s actual cash flow. It adds back depreciation and other non-cash expenses in order to assess a company’s capacity to stay solvent.

The table given below shows the insurance solvency ratio of life insurers in 2018-2019:

Company31.03.201931.12.201830.09.201830.06.2018
Bajaj Allianz Life8.047.497.497.74
Sahara Life8.449.429.429.24
Pramerica Life4.64.914.915.33
Canara HSBC OBC Life3.933.723.723.7
IDBI Federal Life3.343.823.822.83
Aviva Life2.992.952.892.92
Kotak Mahindra Life3.023.13.13.11
Reliance Nippon Life2.62.812.812.67
Aegon Life2.62.682.682.91
Star Union Dai-ichi Life2.532.742.742.78
Max Life2.422.612.612.62
Edelweiss Tokio Life2.292.452.452.22
ICICI Prudential Life2.152.342.342.35
SBI Life2.132.212.212.14
Exide Life2.081.81.81.93
Birla Sunlife1.982.042.042.12
PNB Met Life1.972.012.012.02
HDFC Life1.881.931.931.97
Shriram Life1.822.052.052.01
India First Life1.741.731.731.97
Bharti AXA Life1.711.621.621.62
Future Generali Life1.621.641.641.94
LIC1.61.511.511.52

The Insurance Regulatory and Development Authority of India (IRDAI) makes sure that every insurance company maintains a mandated solvency ratio of 1.5 (or a solvency margin of 150%). Different insurers might have different rankings, this is because of the various factors that might influence a company’s financial health.

To measure the true financial health of a company, you will have to compare its solvency ratio with its competitors. This will help you to get a better idea about the factors that have created the difference and why.

The insurance solvency ratio is a type of financial ratio that is usually used by potential lenders and bond investors to evaluate a company’s creditworthiness.

If you are looking to buy life insurance, you have to make sure that you purchase it from a reliable insurer. You can look at the insurer’s solvency ratio to see if it is financially stable and if it is capable of paying off its claims.

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What is Public Liabilities Insurance? (Meaning, Coverage & Examples)

What is Public Liabilities Insurance? (Meaning, Coverage & Examples)

Businesses succeed with the combined support and effort of people such as employees, clients and customers. But a lot of times, these clients and customers could face accidents that take place in a business premise. Hence, it is considered an important policy for businesses to purchase Public Liability Insurance.

What is Public Liabilities Insurance?

Public liabilities insurance offers protection to the business in case any third-party liability arises out of injury or property damage. These third parties could be customers, clients or members of the public. As public liability insurance policies help reduce the financial burden that may pop up because of third-party liabilities, it can also be called third-party liability insurance.

If public liability insurance works in combination with product liability insurance, it is also known as Commercial General Liability Insurance.

Public liability insurance is very important for businesses owners, restaurants, hospitals and even doctors. It is usually acquired by enterprises, and even individuals who could possibly be held accountable for legal or financial liabilities. For instance, if someone is visiting your office and they slip and sustain an injury (like a sprain or a broken ankle) which will lead to hospitalization, this insurance could help you pay off the hospital bills and deal with the legal liabilities.

Examples of Public Liability insurance are:

  • Public Liability for non-manufacturing units such as IT firms, restaurants, schools, clubs, BPOs among others.
  • Public Liability for manufacturing units such as godowns and warehouses.
  • Public Liability for business units that deal with hazardous substances

What is Covered Under Public Liability Insurance?

Many public liabilities insurance policies provide extended coverage for industrial risks, non-industrial risks, all business units dealing with hazardous substances, etc. They also provide more comprehensive protection by covering the legal expenses that could arise out of:

  • Sudden and accidental pollution
  • Transportation
  • Carriage of treated effluents
  • Natural calamities

Given below is a list of things covered by a public liability insurance:

  1. Lawsuits and Settlements: If your business gets sued for damage or loss caused to a third party, the insurer will cover the cost of hiring a lawyer or investigating officer.
  2. Damage to Property: This policy will cover damage or injury caused to a third party by an accident in your office premises. Damage caused due to your products, operations or promotional advertisements will be covered by public liability insurance. It will also cover the liability arising due to damage caused to a third party’s property while visiting your office.
  3. Medical Expenses: In case a third-party gets injured in your office or business premises, the medical expenses will be covered under the public liability insurance.
  4. Tenant’s Liability: If you have a rented business space, and any liability arises, then the expenses will be covered under the public liability insurance policy.
  5. Copyright Liability: If your marketing division violates the copyright policies, the liability will be covered.

What is Not Covered Under Public Liability Insurance?

A public liability insurance does not provide cover for certain situations. They are as follows:

  1. Any damage to your business property is not covered under public liability insurance.
  2. Any damage or injury caused to workers is not covered. For such situations, businesses should have Employers’ Liability Insurance.
  3. The insurer only covers liabilities that arise out of third-party property damage, injury, disability etc. To cover professional errors, the business should buy professional liability insurance.
  4. Any deliberate or intentional damage is not covered.
  5. Damages that arise out of penalties, fines or exemplary damages are not recompensed.
  6. Damages arising out of situations like war are also not covered.

Why is Public Liability Insurance needed?

Having public liability insurance is not a statutory legal requirement. But it is necessary to buy it in order to protect the business from financial problems. In India, public liability insurance is made in such a way that it caters specially to individuals or businesses who could be held legally responsible to pay for damages and injuries caused to a third party. For example, if your product causes damage to someone else, then your company could be sued for the loss.

If your business engages in any of the following, then you should consider buying a public liability insurance:

  • If you interact with clients frequently or regularly
  • If you represent your client’s business
  • If you are using a third-party site for your business operations
  • If you have access to any or all of your client’s assets

How to Claim Public Liability Insurance?

After buying a public liability insurance policy, it is also important to understand the claim process for it. To file for a claim, you can follow the steps given below:

Step 1: Properly analyse and evaluate the damage and loss that has happened.
Step 2: As soon as possible, inform the insurance company in writing.
Step 3: Collect the proof and evidence.
Step 4: Provide the needed medical certificates in case of injury or death.
Step 5: Submit the duly filled claim form and the required documents.
Step 6: a professional will evaluate the file and decide whether to accept or reject the claim.
Step 7: If you are not satisfied with the decision of the insurer, then you can approach the court.

The documents required for the claim process are:

  • Duly filled claim form
  • The required documents to support the case
  • Copied of proof and evidence
  • In case of injury or death, medical certificates

What are the Situations Where You Can’t Claim Public Liability Insurance?

Though public liability covers many situations, there are certain cases which are not covered under it. These are also known as exclusions. Some of these are:

  • Intentionally not complying to safety or legal provisions.
  • Errors while performing and dealing with legal or contractual liability.
  • Cases like false arrest, defamation, libel, slander, loss of goodwill, mental loss or damage.


This insurance ensures that businesses succeed without facing any unexpected financial losses. There are also alternatives for public liabilities insurance such as general liability insurance. Before buying any public liability insurance, it is important to know about all the aspects related to it. This will help you make the decision that will be best for your business.

 

 

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What is Property and Casualty Insurance?

What is Property and Casualty Insurance?

Insurance has grown in importance as a way of protecting our assets and fulfilling our needs. Today there is insurance available to cater to a majority of your needs. From cars to houses and more, there is insurance for everyone and everything. One such insurance that has been reducing the financial burden and turning dreams into reality is property and casualty insurance.

What is Property and Casualty Insurance?

Property and Casualty insurance, also known as P&C insurance, is an umbrella insurance policy that covers various things under a single plan. P&C insurance can be taken up to get coverage for protection against things like machinery breakdown, fire, earthquake, office damage, etc. For all business owners, getting P&C insurance can prove to be very helpful, as it would cover the different risks and liabilities that arise while running a business.

1. Property Insurance

Property insurance includes various types of insurance plans, that are designed to protect the policyholder from a financial loss in case the property gets damaged. The items that are generally included under this type of policy are house, furniture, jewellery, automobile, business property or any other physical property. The type of coverage will depend on the type of policy that is purchased. For an instance, if your property gets damaged or vandalised, and if you have a property insurance policy, you can get compensated for your loss.

An example of Property insurance is Burglary Insurance. This insurance can be purchased for a business or a house. Burglary insurance will cover losses or damages to the property and the goods that are in the property premises. You can get coverage for the damage caused to the insured house or business in case of theft, and that coverage can be extended to include malicious damage, riots, etc.

Other types of property insurances are Package or umbrella insurance, Fire policy insurance, All risks insurance policy, Marine Cargo Insurance Policy.

2. Casualty Insurance

Casualty insurance is also known as liability insurance. This insurance mainly protects the policyholder against legal liability for bodily injury and/or property damage that might be caused by him to the others. For example, if someone gets hurt due to an accident in your house or office, and you are held liable for it, then the casualty insurance policy will cover the cost and pay for the loss caused to the injured person.


An example of casualty insurance is Public Liability Insurance (Industrial and Non-Industrial). It covers the legal costs for bodily harm and property damage caused inside the insured premises. It covers a variety of industrial risks and non-industrial risks for businesses such as manufacturing units, BPOs, Hotels, Clubs, Restaurants, IT Companies and Schools.

Other types of property insurance are Commercial General Liability, Workmen’s compensation insurance, Pollution legal liability and Contaminated Product insurance.

Now that you know what is property and casualty insurance, you can understand how important it is. If you are an entrepreneur or a small business owner or someone who has assets, then it is necessary for you to get an insurance policy that will protect you, your home or your business from future losses caused due to unfortunate events.

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