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The buzzwords in corporate boardrooms, these days, are “big data” and “data analytics.” And the insurance sector is no exception! The way insurance is being underwritten in today’s world is fast changing. And feeding this massive data revolution is your and my digital footprint. Whether it is ordering food online through mobile apps or paying for it through mobile wallets, or even hailing a taxi online, we are leaving behind a valuable trail of information every minute of our lives.

And it is this data that is being mined and analyzed by various organizations and institutions to eliminate risk, improve their efficiency, make their services more cutting-edge, and offer better products to us. While insurance companies once relied on historical data for actuarial calculations and risk management, they now draw upon data sources that are updated by the second. This enables them to be more responsive in an increasingly volatile risk environment. Thus, real-time data has become central to any kind of risk underwriting, and one who has access to this data enjoys plenty of advantages over his peers and is in a better position to underwrite risk.

Today, we have agencies such as CIBIL maintaining our financial scores, which determine our financial track record and our creditworthiness. Banks and financial institutions use the CIBIL score as a reference before sanctioning a loan. Imagine the benefits if a similar score was available to the insurance companies. For example, in the life insurance sector, insurers try to assess the risk factor by looking at a customer’s medical profile, asking the customers about their lifestyle habits, and often through a health check-up.

But what if we can create a “Health Score” on the lines of the CIBIL score? A scorecard that you will maintain throughout your life, and the better the score on your card, the better the rate you get for your insurance policy. The concept can be extended to the corporate sector, where employees of large companies as well as the employers can be encouraged to maintain a better Corporate Health Score. It will enable insurance companies to underwrite better risk and also help them develop a scientific method and a predictive model to forecast trends.

Such a scorecard can be developed for other kinds of insurance as well, such as fire, marine, etc. For example, in the motor insurance sector, if we know that the rate of failure of the various components of an automobile, we would be reasonably competent to predict the chances of failure of the car, and therefore we would be able to predict possible instance of accidents due to the failure of the care. Similarly, for a driver, we can have a rating not only on the number of signals he breaks but also on the number of tickers he gets. The data can be married to the data on his medical fitness.

It is abundantly clear that the use of big data in insurance is already transforming the industry. For example, Ford has partnered with a company to develop a driver score app, which uses privacy-enhanced technology to tell insurance companies how drivers are performing to potentially lower their premiums. In the not-too-distant future, it will be possible to get an insurance policy by just swiping your thumb because your Aadhar account will have all information about you and is also connected with your bank account and it will be linked to your health insurance and life insurance scores. The penetration of Insurance in the Indian Subcontinent is way below that in the other countries, however, we cannot ignore the fact of the sheer size of the market. For example, LIC alone today has more policies than the entire population of Australia, which just goes to show two things the penetration is still low, but in absolute terms, it is more than most countries. So, we have the volumes, we have the technology and we have now the will of the insurance companies to tap this vast potential.
The New Year is the perfect time to create a secure financial plan and make some sensible decisions that will impact one’s long-term physical, emotional and financial well-being. While there have been recent medical advancements towards effective covid 19 vaccines, there is still uncertainty of a successful roll out on a national scale. This requires people to be equally prepared in the unforeseen future. Should you continue with insurance cover against covid19 in the next year? Yes, strongly believe the insurance experts.

Coronavirus cases are still on the rise in India and while the covid vaccines by different companies have shown positive results during their trials, it is still going to be some months before they are distributed to the entire population across the globe and their efficacy verified. In the interim, it is strongly recommended for people to buy or renew their covid plan in the year ahead, as insurance is a protection against any uncertainty and it helps in covering the medical expenses and cost of recovery in case one unfortunately catches coronavirus. Insurance experts believe apart from an adequate health insurance policy, the current pandemic has underlined the need for life insurance more than ever before.

The current times and the gloom around us have indeed re-emphasised the need for life insurance protection cover. One of the key financial needs a term insurance policy addresses is to take the place of lost future income of an individual for their dependents in case of death in the individual’s earning years. Protection plans that cover life, as well as critical illness, would be ideal, he adds. To further enhance protection from the ongoing pandemic, insurance experts ask people to buy critical illness cover as well. A critical illness benefit is important given the prevailing uncertainty due to the pandemic. Besides, incidences of lifestyle-related illnesses too are on the rise.

A rider provides added short-term benefits. By virtue of being the most fundamental and cost effective form of financial protection, a comprehensive term insurance policy is equally essential.

Not only in time of pandemic, life insurance is important in all times. "Life insurance provides protection against such unpleasant surprises which can hit us at any time. As the proverb goes – ‘It is better to be safe than sorry.’ Hence, life insurance is the first financial asset that one must own.

Insurance is the first step to create a sound financial plan

Insurance is important to have a strong foundation for a financial plan. “Whether there is a pandemic or life as usual, life insurance is an important building block for a sound financial plan. Only after you are sufficiently insured, you should move forward to save and invest for return generation.

After having addressed the protection requirements individuals must plan for their long-term financial goals such as retirement, children’s higher education, etc

We spend all our time trying to strike a balance between our personal and professional lives. Amidst this race against time, acknowledging several little moments of happiness and joy gives us the strength to beat all odds. We love to cherish and celebrate every possible milestone starting from festivals, birthdays, anniversaries, achievements, etc. to upgrading our lifestyle and pampering our loved ones. While these moments give us immense pleasure, they also highlight the need to have an additional income so that the moments continue forever.

Keeping in mind several unanticipated risks in life, it is vital to be prepared to ensure you can keep celebrating your life’s milestones without interruption. Here are some prudent steps that can ensure that your finances do not come in the way of your celebrations:

Start Planning: It is vital to evaluate your financial condition by creating a comprehensive picture of your current finances, your goals, savings, debts, investments, etc. Once, you have mapped out all your finances, customize your plan according to your requirements at various stages of life. Do identify the various moments you would like to capture always and add them to your financial plan.

Make Savings A Habit: Evaluate your earnings and compare it with your expenses. Curtail the unnecessary spending and save the money to celebrate bigger and more important milestones. Such habits go a long way.

Grow Your Savings in An Assured Manner: It is essential to take prudent investment decisions and allow your savings to grow. You can opt for financial instruments that offer guaranteed returns. This will assure that you have the required sum, the moment you need it.

Can Your Savings Turn into An Additional Income? The requirement of having an additional income combined with financial stability is the need of the hour. Check for financial solutions that can offer you assured recurring income for the long-term. If you invest early, this can also act as an additional source of income.

Manage Risks Well:  Plan in a manner so that nothing can derail your moments of happiness. Understanding the importance of risk- management tools thus becomes necessary.

Did you know that you can ‘insure’ your life’s precious moments? Life insurance plans can cater to these altering demands and protect these beautiful moments forever.

Ensure Happiness with Life Insurance:  Life insurance plans can cater to our long and short-term needs like lifestyle upgrades, pursuing hobbies, pampering our loved ones, and relishing every milestone. These policies are specifically designed in a way to reap long term benefits with short-term investment. These plans offer the additional benefits of protection coupled with financial assistance and safety. To sum it all, planning well and in advance can help you celebrate life’s valuable moments without making any compromises ever. Keeping the unpredictability of life, opting for a life insurance plan that provides a safety net along with an assurance of the well-being of your loved ones, is a wise financial decision. Investing in such ‘life solutions’ is a must for the long run. So, it is vital to plan today, to do more of what you love to do, forever!

India’s COVID-19 count continues to rise with the total number rising above 9 million. The deadly virus has till now claimed over 1.3 lakh lives throughout the country, and the toll rises with each passing day. Considering the ongoing pandemic situation, it is imperative to have a comprehensive health insurance policy that can help you avail the best treatment possible at a hospital of your choice, without burning a hole in your pocket. Your comprehensive health insurance policy will not only provide you adequate coverage against the novel coronavirus (COVID-19), but will also cover you for all other illnesses and ailments such as cancer, stroke and diabetes. With your health insurance policy, you can not only avail quality healthcare, but also have the benefit of availing cashless treatment at your choice of network hospital. What this essentially means for the customer is that during hospitalisation, you can avail cashless treatment – without paying anything to the hospital – at your choice of network hospital.

What is a network hospital?

When you buy a comprehensive health insurance policy from your choice of insurer, you get a list of hospitals under the name of Network Hospitals. Apart from the policy documents, you can find this list on the website of the insurer as well. All hospitals mentioned in this list allow policyholders to avail cashless treatment at their centre. This means, the policyholder does not have to pay anything at the hospital for taking treatment, apart from nominal file charges. The biggest benefit of availing treatment at a network hospital is that the insured does has to run to different places in order to make financial arrangements and all expenses are borne by the insurer. The insurer directly settles the bill with the hospital without you paying any amount, provided the treatment is taken as per the policy terms and conditions.

Making a cashless claim in a network hospital

When you file for a cashless claim at a network hospital, there are usually three major entities involved – the insurance company, the hospital and the insured person. You can file an insurance claim under two categories – Planned Hospitalisation and Unplanned Hospitalisation (Emergency). In a planned hospitalisation, both the insurer and the network hospital are informed about the hospitalisation of the insured beforehand. As a process, before availing the treatment, the insured or the family members need to fill a pre-authorization form to get the person admitted. You can download the pre-authorization form from the insurer’s website; it may even be available at the hospital’s TPA counter. A TPA counter is a dedicated kiosk at the hospital premises where all the insurance-related queries and processes of the insurers are addressed. Once the pre-authorisation form is submitted, the TPA desk will verify the submitted details and will inform your insurer regarding the claim. Once the insurer approves your claim request, an authorization letter is sent by the insurer/TPA to the hospital, stating the amount approved for the treatment. This amount is directly paid to the hospital by the insurance provider. The approximate Turn Around Time (TAT) for pre-authorized claims in the case of network hospitals is approximately 30 minutes to 2 hours. However, one must know that TAT varies from insurer to insurer.
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.