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Indian Insurance Industry has become more competitive in the recent years particularly after 1990s. Most of the largest financial corporations over the world have entered with their insurance products to India's Insurance Market. Various insurance schemes are easily available in the Indian Insurance Industry these days.
Universal Health Insurance Scheme
The Universal Health Insurance policy is available to groups of 100 or more families. The policy provides for reimbursement of medical expenses upto Rs.30000/- towards hospitalisation floated amongst the members of the family, death cover due to an accident for Rs.25000 to the earning head of the family and compensation due to loss of earning head of the family @ Rs.50/- per day upto a maximum of 15 days, after a waiting period of three days, when the earning head of the family is hospitalised. The premium under the policy is Rs.1/- per day (i.e. Rs.365/- per annum) for an individual, Rs.1.50 per day for a family of five limited to spouse and children (i.e. Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for covering dependent parents within the overall family size of seven. A subsidy of Rs. 100 per year towards annual premium for "Below Poverty Life" families is also provided under the Scheme.
For purpose of this policy HOSPITAL means:
- Any Hospital/Nursing home registered with the local authorities and under the supervision of a registered and qualified Medical practitioner.
- Hospital/ Nursing Home run by Government.
- Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed schedule of charges.
- Hospitalisation should be for a minimum period of 24 hours. However, this time limit is not applied to some specific treatments and also where due to technological advancement hospitalisation for 24 hours may not be required.
Main Exclusions:
- All pre-existing diseases.
- Corrective, cosmetic or aesthetic dental surgery or treatment.
- Cost of spectacles, contact lens and hearing aid.
- Primarily diagnostic expenses not related to sickness/injury.
- Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.
Age Limitations:
This policy covers people between the age of 3 months to 65 years.
Floater Basis:
The benefit of family will operate on floater basis i.e. the total reimbursement of Rs. 30,000/- can be avalied of individually or collectively by members of the family.
For further details please refer the Prospectus or the Policy Document issued by the Insurance Company.
Varishtha Pension Bima Yojana
Scheme
- Indian citizens aged 55 years (last birthday) and above are eligible (no upper age ceiling).
- Pension will be paid during the lifetime of the pensioner.
- In the event of unfortunate death of the pensioner, purchase price will be paid to the nominee/ legal heir of the pensioner.
- Mode of payment of pension : Monthly, Quarterly, Half Yearly or Yearly.
- Minimum pension is Rs. 250/- per month
- Maximum pension is Rs. 2000/- per month.
- Only one person from a family can apply. The family for this purpose shall comprise of the pensioner, his/ her spouse and dependants.
- Age proof will be required. Where age is to be admitted on declaration basis, declaration on a stamp paper, signed in front of a notary shall be required.
Premium
Only single premium (purchase price) is payable i.e. premium is to be paid in one lump sum. Further, premium shall be accepted by cheques/ drafts payable on the Branch of the bank which is the member of the local clearing house.
Exit Option
Exit option to be provided after 15 years.
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Availability of Loan
Availability of loan to the extent of 75% of Purchase Price after 3 years. Interest rate on loan to be decided by LIC from time to time. At present, the rate of interest would be 10.5%.
For details and application forms log on to www.licindia.com
MAJOR POLICY CHANGES
Reforms In Insurance Sector
Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:
- Company is formed and registered under the Companies Act, 1956;
- The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;
- The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.
- The minimum paid up equity capital for life or general insurance business is Rs.100 crores.
- The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.
The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad. Detailed information on IRDA is available at their web-site www.irdaindia.org
Protection of the interest of policy holders:
IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:
- IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim.
- The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims.
- It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.
- All insurers are required to set up proper grievance redress machinery in their head office and at their other offices.
- The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.
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