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Top 10 best insurance brokers of India (As of 2022)

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Top 10 best insurance brokers of India (As of 2022)

Have you come across the term insurance brokers while planning to buy an insurance policy? This content-piece will attempt to explain to you what is an insurance broker, its role, and the top 10 insurance brokers in India. All topics covered within are:

  • What is an insurance broker?
  • What is the role of an insurance broker?
  • Top 10 insurance brokers in India

Let us begin!

What is an insurance broker?

An insurance broker is simply an entity, other than an insurance company that sells insurance. The prospective buyer can either buy insurance directly through an insurance company or can buy insurance through an insurance broker. The insurance company remunerates the broker for sales that the broker company generates on behalf of the insurance company.

What is the role of an insurance broker?

An insurance broker fulfils the following important roles:-

Guidance to the customer:  A broker knows the intricate technicalities of the insurance business, the vast array of policies, and the regulations of the insurance industry. The brokers high knowledgeability ensures that the customer gets the perfect insurance policy for himself.

Increasing penetration of insurance: An insurance broker taps into markets where insurance companies cannot directly reach. This leads to more people getting under the umbrella of insurance, making for a safer and more stable population.

Middleman: The broker is a middleman between the customer and the insurance company. In the event the policyholder has any grievances or queries, he/she can have two points of contact rather than one. If the insurance company fails the assist the customer, the customer than attempt to get a resolution through the insurance broker.

Provides variety of insurance policies: An insurance broker generally deals with a plethora of insurance policies and plans across many insurance companies. This variety is ideal for customers looking to comparison shop and find the best and most relevant insurance policy for themselves.

Top 10 insurance brokers in India

Let us now look at the top insurance broking companies in India.

1.) Aditya Birla Insurance Brokers

Aditya Birla Insurance Brokers got their broking license in 2003 and have since been going strong in the insurance broking industry. The company has collected a total of 4.2 thousand crores in insurance premium in FY-20 alone. The company is part of the reputed Mahindra Group of India.

2.) Marsh India Insurance Brokers

Marsh India Insurance Brokers got their broking license in 2002 and have been steadily increasing their presence in the insurance broking industry ever since. The company was awarded the prestigious “Broker of the Year” award at the Asia Insurance Industry Awards in 2018, 2019, and 2020. Marsh India provides a plethora of insurance broking services from healthcare, reinsurance, real estate, cyber, hospitality, and more.

3.) Landmark Insurance Brokers

This Pune based insurance broking company was incorporated in 2020, and has already accumulated over 3.5 Lakh customers Pan-India. Services offered range from motor insurance, travel insurance, cyber insurance, health insurance, and POSP services.

4.) ACME Insurance Brokers

ACME Insurance Brokers provides standard insurance and even reinsurance services across India. The company was incorporated in 2000 and has clients in various industries like manufacturing, FMCG, IT, Clothing, and more.

5.) K.M. Dastur Reinsurance Brokers

K.M Dastur Reinsurance Brokers was incorporated in the year 1973, making it one of the older reinsurance companies in India. Not only is K.M Dastur one of the older reinsurance companies in India, it is also one of the most successful. The company boasts of over 500+ employees that serve the company by brining business through various industries like healthcare, real estate, aviation, energy, motor, and more.

6.) Unicorn Insurance Brokers

Founded in 1964, Unicorn Insurance Brokers provides life, health and general insurance services ever since. The company also provides reinsurance, risk management, group insurance, and life insurance pension schemes to its clientele.

7.) Tata Motors Insurance Broking

Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL) is a closely held insurance broking company under the prestigious Tata Group of India (founded in 1868). TMIBASL provides retail insurance, corporate insurance, and reinsurance services.

8.) Maruti Suzuki Insurance Broking

Incorporated in the year 2002, Maruti Suzuki Insurance Broking boasts of massive 4 Cr+ customer base throughout the company’s history. The company is part of the well-known Maruti Suzuki Group, famous for their motor vehicles throughout Asia.

9.) First Policy Insurance Brokers

First Policy Insurance Brokers are one of the first insurance brokers to get an IRDA broking license. This Pune based broker specializes in marine insurance, property insurance, construction insurance, among others.

10.) Helios Insurance Brokers

As of 2022, Helios Insurance Brokers boast of over 5000+ customers and 3500+ claims settled. The company specializes in group health insurance, group term insurance, group gratuity insurance, liability insurance, fire insurance, and engineering insurance. A total list of all insurance services provided by the company can be found here.

As of 2022, the IRDA has licensed a total of 573 entities that can act as insurance brokers in India.
A complete list of all insurance brokers in India can be found here.

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Frequently asked questions

  • Is buying through an insurance broker mandatory?

    Absolutely not. You can buy through the insurance company directly if you wish.

  • How many insurance brokers are there in India?

    As per the IRDA, a total of 573 insurance brokers are licensed in India.

  • How do insurance brokers make money?

    Insurance brokers get sales commissions from insurance companies.

  • Are insurance brokers regulated?

    Yes. Registered insurance broking companies are regulated by the IRDA.

  • What are some of the differences between an insurance agent and an insurance broker?

    An insurance agent will generally sell insurance policies from a single company. An insurance broker will generally have ties with various insurance companies, and will have the ability to provide more variety to the customer.

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

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    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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    Frequently asked questions about health insurance premiums

  • Does health insurance premium increase every year?

    No, it increases based on the age slab that the policyholder falls within.

  • Is health insurance premium calculated on a person's age?

    Yes, the primary metric in calculating the premium rate is the age of the person.

  • Can I port my health insurance policy to another insurance company?

    Yes, porting your insurance policy is now possible.

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    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 warehouses and storage units.
    • 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, jewelry, 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 vandalized, 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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    What is mortgage with Insurance?

    What is Mortgage With Insurance? 

    Mortgage insurance has become extremely popular in the Indian insurance market. Getting a mortgage with insurance is something that can help homebuyers to avail a mortgage loan at an affordable interest rate and a lower down payment. Let’s know more about this.

    What is Mortgage Insurance?

    Mortgage insurance is an insurance policy that protects a lender if the borrower defaults on payments or is not able to meet the contractual obligations of the mortgage contract. In simple words, a mortgage with insurance will ensure that the loan is repaid in case the loanee passes away or is unable to pay the debt. Usually, the tenure of mortgage insurance is 12 months and it comes with various payment options like, borrower-paid, lender-paid and split payment.

    The foremost reason for getting mortgage insurance for homebuyers is the safety factor. Mortgage insurance decreases the chances of loss for the lender. This means that having mortgage insurance can help homebuyers get a loan for a higher amount than you would normally qualify for.


    The types of mortgage insurance are:

    1. Private mortgage insurance (PMI)

    This is a mortgage life insurance that protects the borrower from the lender in case of a default. Private mortgage insurance would generally cover a huge portion of the borrowed capital. This type of insurance is offered by private insurance companies. There are various types of Private Mortgage insurance such as:

    1. Borrower-paid private mortgage insurance
    2. Lender-paid private mortgage insurance

    2. Mortgage insurance premium (MIP)

    This is a mortgage life insurance product that is usually provided by the government. A mortgage insurance premium protects the lender in case the borrower is unable to pay the amount because of an unfortunate event. Mortgage insurance premium has premium rates and cancellation policies which are different from PMI.

    What are the Types of Rates Offered in the Indian Mortgage Market?

    In the Indian insurance market, people can choose between the following:

    Flexible Mortgage Rate: This type of mortgage interest rate is called floating or adjusting rates. This is because the fluctuations in the market affect the interest rate.

    Fixed Mortgage Rate: A fixed mortgage rate is when the rate of interest remains fixed throughout the loan term. The conditions of the market will not affect this mortgage rate. Basically, this means that the rate of interest will not change during the process of borrowing funds. This interest rate can be between 12.5% to 25%.

    The value of the borrowed amount determines the premium and the coverage of the mortgage insurance. The insurance policyholder can either pay the amount of the premium annually as a lump sum or split the amount and pay on monthly basis. Policies offering the provisions for lumpsum payment are termed single-premium mortgage insurance. Single-premium mortgage insurance has added benefits. It could help qualify the borrower for a bigger loan amount as he/she won’t have to pay mortgage premiums monthly.

    How is Mortgage Insurance Different from Mortgage Life Insurance?

    Mortgage insurance, also known as mortgage loan insurance, should not be confused with mortgage life insurance. Mortgage insurance usually protects the lender. But mortgage life insurance is made to protect the heir if the borrower dies while still owing mortgage payments. If a borrower is concerned that they will leave a large amount of mortgage to his family after death, he/she can buy mortgage life insurance. The coverage can be paid to the lenders or to the heirs.

    What are the Benefits of Mortgage Insurance?

    The biggest benefit of mortgage insurance is that it provides safety and surety of getting the money back. It protects the lenders and investors from possible losses that could occur when the borrowers are unable to repay the mortgage debts.

    From the borrower’s end, this insurance helps them to protect their most valuable asset i.e. their house in case they are not able to pay back the debt that is taken against it.

    Mortgage insurance has made the goal of owning a home achievable. With mortgage insurance, people can purchase a house with smaller down payments, up to 20% less.

    Before opting for a mortgage with insurance, you should check with your lender to find out what types of mortgage insurance are provided by them. You can then check their terms and policies and pick the one that is affordable and suitable for you.

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    What is Loss Ratio in Insurance?

    What is Loss Ratio in Insurance?

    The loss ratio in insurance indicates how financially stable an insurance company is. The loss ratio represents the ratio of losses to the premium earned. In simple words, it is a comparison of how much a company spent while settling claims and how much it earned from customers. Insurers also use the loss ratio to determine the premiums of future policies.

    In the loss ratio, the losses include paid insurance claims and adjustment expenses. The formula for loss ratio is insurance claims paid plus adjustment expenses divided by the total earned premiums. The three parts of this formula are:

    • Insurance claims paid: This is the amount the insurance company has spent directly on claim settlements. This includes money spent on the repair of damaged goods or property, cash settlements, etc.
    • Adjustment expenses: This is the money that the company has spent on investigating and adjusting claims.
    • Total earned premiums: This is the sum of all the premiums that were paid by the company’s customers.

    Types of Loss Ratios:

    1. Medical Loss Ratio: This is the amount of premium spent by the health insurers towards activities and claims that improve the quality of care.
    2. Commercial Insurance Loss Ratio: In order to avoid increased premium and cancellations, a business with commercial property and liability policies should maintain a proper loss ratio.

    What is the purpose of the loss ratio?

    The loss ratio gives an estimate of how much profit an insurance company has made. An insurance company will be able to make money and stay solvent only when it pays out less than what it collects. This means that the company will make a profit if the claims it pays are less than the premiums it collects.

    If a company is constantly paying out high proportions of premiums in claims, it could get into financial problems. It would make the company lose its capital, in turn making it lose its capacity to pay for future claims.

    A high loss ratio could mean that the company is facing financial problems. For instance, If the insurance company with which you have an insurance policy has a higher loss ratio, it could mean that the insurer might raise the premiums.

    What is a good loss ratio?

    Though it is common for loss ratios to fluctuate every year, it is still advisable for insurance companies to aim for a loss ratio that is in an acceptable range. For instance, generally, an acceptable loss ratio is between 40%-60%.

    As the loss ratio fluctuates from year to year, insurance companies often look at it in 5-year chunks. This allows them to get a wider view of the company’s performance and take measures accordingly.

    Different types of insurance have different loss ratios. Some types of insurance may have a higher loss ratio than others. For example, health insurance will have a higher loss ratio than property and casualty insurance.

    The loss ratio in insurance is important in determining how well an insurance company is doing. It helps insurers to get an insight into their company. But it is often combined with the expense ratio to create the combined ratio. This combined ratio is a measure that depicts the company’s overall profitability.

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    What is Fidelity Insurance?

    What is Fidelity Insurance?

    It takes a lot of effort to make a business succeed and it is no one man’s play. The cooperation, coordination and trust amongst the team members lies at the base of every successful business. But the dishonesty of even one employee might cause a huge loss to the business and may lead to its downfall. Therefore, even after selecting the right team, it is necessary to be prepared for any such instances. Fidelity Insurance is one such precautionary measure against fraudulent employees every business must take.

    What is Fidelity Insurance?

    Fidelity insurance is an insurance policy that offers protection to businesses against business losses caused by employee fraud, theft or dishonesty. It also covers losses caused to customers due to such dishonest employees. The amount of premium for this insurance premium amount is determined by factors like the number of employees, risk exposure and nature of business.

    Every business which has employees that handle money processes is eligible to take up fidelity insurance such as, restaurants, cafes, retail businesses, etc.

    The types of fidelity insurance plans

    The various types of fidelity insurance plans available are:

    1. Individual policy: Under this, the cover is limited to the losses caused due to fraud or dishonesty of an individual employee.

    2. Blanket policy: This policy covers a group of employees without mentioning the name of the guaranteed person.

    3. Collective policy: Under this policy, coverage is provided against the losses caused due to the fraudulent acts of a group of employees. The coverage under a collective fidelity insurance policy is decided based on each employee’s position and responsibility.

    4. Floater policy: One amount of guarantee is given across a group of employees. To avail of this cover, the group should contain at least five employees.

    What are the benefits of Fidelity Insurance?

    The benefits of this policy are as follows:

    • It helps in covering up the losses caused by dishonesty or faulty practices of the employees.
    • It provides coverage for the loss of essential business assets like property, technological tools, important documents such as stock papers, etc.
    • It protects the interests of the customers and provides coverage for the losses faced by them too.It prevents financial crises that might occur in the business resulting from the misconduct of a few dishonest employees.
      It helps in saving the reputation of the business in the market that might otherwise get affected
    • due to the incident.
    • It also ensures transparency and accountability in supervision within the business.

    What is covered by Fidelity Insurance?

    The coverages offered under fidelity insurance are as follows:

    • Theft committed by employees. This includes complaints of stolen valuables made by customers and also stolen assets.
    • Any dishonest act by employees such as embezzlement or misuse of employment capacity for personal gains.
    • Any act of misuse or forgery of the company’s money by employees.

    The coverage that is offered to the insured company is limited to:

    • The total sum that is specified in the policy.
    • The amount of guarantee that is stated against the employee’s name or against the relevant category/group of employees that are mentioned in the policy schedule.


    What is not covered by Fidelity Insurance?

    A fidelity insurance policy does not cover certain situations. Some of these exclusions are:

    • Any loss that happens due to willful acts or negligence by the insured, employee or any person acting on their behalf.
    • Trading losses, damages in the goods and losses which are not caused due to fraud or dishonesty.
    • Losses arising due to relaxation and non-observance of precautions and protocol.
    • More than one claim filed against an employee.
    • Losses occurring anywhere outside the territorial limits that are mentioned in the policy.
    • Losses caused due to hiding facts that affect the risk at the time the policy was implemented.
    • The loss that is detected a year after the employee has terminated his or her service.

    What is the claim process for fidelity insurance?

    Any business wanting to avail of fidelity insurance should have proper records and details. The business should fill in the proposal form and give all the information and additional documents required. For instance, a company seeking fidelity insurance has to provide a detailed list of departments and employees to the insurer. Every important detail should be disclosed to the insurance company.
    The claim process for fidelity insurance is easy. The steps are as follows:

    Step 1: The insured business should immediately intimate the insurer about the claim incident. Based on the situation, the business should also take quick disciplinary action against the employee.

    Step 2: The claim documents must be submitted along with the relevant proofs of the act of infidelity and loss.

    Step 3: The insurer will hold a forensic audit. If the claim is approved, the auditor will verify and approve the claim amount. If it is rejected, the insured company will be informed. The reason for rejection will also be mentioned.

    If the claimant is dissatisfied with the solution provided, they can take the matter to the court of law.

    What are the documents required for a fidelity insurance claim?

    The documents required for fidelity insurance claims are:

    • A duly signed and filled claim form.
    • A xerox of the fidelity insurance policy document.
    • A detailed description of the employee’s duties
    • Private reference of the dishonest/ fraudulent employee.
    • An Internal investigation report
    • A Police FIR regarding the theft or embezzlement.
    • Auditor’s report estimating the loss
    • Details about the date of discovery of the loss.
    • Statements from witnesses.
    • Proof of loss along with evidence of forgery or identity theft.
    • Evidence such as invoices or receipts of stolen property, if any.

    The coverage offered by a fidelity insurance policy can be different for every business. The coverage offered will depend on the requirements of the business.

    The cover can be availed for all employees or even particular departments. There are various types of fidelity insurance policies that are offered by insurance companies today.

    That is why businesses who want to opt for fidelity insurance should conduct proper research, both offline and online before making a decision.

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