Insurance News

Now, 110 insurance products covering mental illness in India: FM Nirmala Sitharaman informs Lok Sabha

Now, 110 insurance products covering mental illness in India: FM Nirmala Sitharaman informs Lok Sabha Indians now have 110 insurance products to choose for their mental health ailments. Responding to a query in the Lok Sabha, Finance Minister Nirmala Sitharaman said that the insurance regulator has approved 110 such products since August 16, 2018. The Mental Healthcare Act 2017 came into force from May 29, 2018. This Act mandates every insurer to ensure medical insurance for mental health ailments. Law had said that this would be similar to the regular health insurance available for physical illnesses. The public sector general insurance companies have informed that approximately 1,00,000 persons across the country have been covered since 2018 under various products which include mental illness. Insurance Regulatory and Development Authority of India (IRDAI) had issued a circular in August 2018 asking insurers to comply with the said provisions of the Mental Healthcare Act 2017. IRDAI had also advised insurers to ensure that the persons affected with mental illness are given similar treatment as persons affected with physical illness. They were also asked to disseminate the underwriting policy put in place in this regard and communicate the same to their officials across all their offices and to sales persons working in the field. Mental health coverage means that insurance will provided for cases of clinical depression which is one of the common ailments. This includes therapy with a professional psychologist/psychiatrist for mental health issues as well as medications and hospitalisation will be covered by health insurance. Therapy, one of the common treatments for mental illnesses costs about Rs 1,500-2,000 per session and is excluded from medical insurance policies. The Mental Healthcare Act 2017 looks at providing mental healthcare and services for persons with mental illness. All related services like hospitalisation and treatment are covered under the Act, which also prohibits discrimination against people with mental health issues. Read More ...

Money Control | 27 Jul 2019 12:39 PM
IRDAI asks insurers to pay up in suicide cases within 12 months

IRDAI asks insurers to pay up in suicide cases within 12 months Insurance regulator IRDAI has relaxed the repayment conditions in the case of death due to suicide. The regulator has asked the domestic life insurers to refund the premium to a policy holder or pay the surrender value of his/ her policies available in the case of his/ her death due to suicide within 12 months from date of commencement of the life insurance policy or from the date of revival of the policy, as applicable. The new regulations will come into effect from Monday. Earlier, there were no regulatory provisions for any refund to a policy holder, during the first year of policy issuance, in case a person commits suicide and life insurers can legitimately deny any payment of claims to the beneficiaries of such a life insurance policyholder during this period. Any death claims linked to suicide were allowed only after 12 months of the policy issuance. In its revamped life insurance regulations, the Insurance Regulatory and Development Authority of India has said that in the case of non-linked policy, the nominee or beneficiary of the policyholder will be entitled to at least 80 per cent of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force. In the case of an unit linked policy, the nominee or the beneficiary of the policyholder will be entitled to the fund value, as available on the date of intimation of death following the death of the policy holder due to suicide within 12 months from the date of commencement of the policy or from the date of revival of the policy, as applicable. Further any charges other than Fund Management Charges (FMC) and guarantee charges recovered subsequent to the date of death will be added back to the fund value as available on the date of intimation of death, IRDAI said. “If a person commits suicide, the family is in distress. They may be hoping to get some money from insurance. It is compassionate payment and not contractual payment of claim,’’ said Nilesh Sathe, former member, Life, IRDAI. Aalok Bhan, director & chief marketing officer, Max Life Insurance, said in the case of a suicide by a policyholder of an unit-linked policies, the NAV on intimation of death will be paid, along with charges deducted between the date of death and date of intimation of death. According to Bhan, the new IRDAI norm have enhanced surrender value for non-linked products and increased revival period (from 2 years to 3 years and 5 years for linked and non-linked business respectively). Further, for the linked business, policies will be treated as paid up in case of nonpayment of premium post the expiry of lock in period, up to the revival period, he said. On the enhanced flexibility to customers in the new regulation, Bhan said it will reduce the premium up to 50 per cent after 5 years, allow partial withdrawals for linked pension products and increase in commutation amount of matured pension amount (increased from 33 per cent to 60 per cent). The purpose of the revised norms is to ensure insurers follow prudent practices in designing and pricing of life insurance products. Read More ...

The Indian Express | 27 Jul 2019 12:38 PM
Third-party insurance premium for cars, two-wheelers and transport vehicles may go up with the regulator Irdai proposing substantial increase in premium rates for the current financial year.

The Insurance Regulatory and Development Authority of India (Irdai) has proposed to increase the motor third party (TP) premium rates for cars below 1000 cc to Rs 2,120 from the existing Rs 1,850 for the fiscal 2019-20. Similarly, for cars falling between 1,000 cc and 1,500 cc also, premium is being proposed to be increased to Rs 3,300 from the existing Rs 2,863. However, for luxury cars (with engine capacity of over 1,500 cc) no change in TP premium has been proposed from the existing Rs 7,890. Normally, the TP rates are revised from April 1. However, this time, the Irdai had decided to continue with the old rates until further order. Now, the regulator has come out with a draft of new rates for TP premium for the current financial year. It has sought comments from stakeholders on the proposed rates till May 29. According to the draft, TP for two-wheelers below 75 cc is proposed at Rs 482, up from Rs 427. Hike has also been proposed for those between 75 cc and 350 cc. However, no rate hike has been proposed for superbikes (exceeding 350 cc). Also, no change has been proposed in the single premium rate -- 3-year for new cars and 5-year for new two wheelers. The Irdai has also proposed a discount of 15 per cent, on motor TP premium rates for electric private cars and electric two wheelers. It also does not propose to raise TP premium rates for e-rickshaw. However, the rate could go up in case of school buses. Rate increase has also been proposed for taxis, buses and trucks. The premium on tractors may also go up. Irdai said the data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the Motor TP premium rates and the claims paid data in respect of each of the accident years starting from the year 2011-12 up to 2017-18 has been considered. Also, gross written premiums for the 2011-12 to 2017-18 have been considered, it added. Read More ...

Instabima Insurance Web Aggregator Private Limited | 21 May 2019 18:57 PM
HDFC Ergo rolls out virtual claim process for Car Insurance Claims

HDFC Ergo General Insurance Company has introduced a new claim process that enables customers to file their claims virtually. Part of the company’s ‘Jaldi Claim’ services, the new claim services is suitable for filing claims for minor damages of their cars/two-wheelers. To file the claim, the users need to take the image of their damaged vehicle. Share them using the insurer’s Insurance Portfolio Organizer (IPO) mobile app. Then they have to select the self-survey option on HDFC ERGO’s IPO app on their mobile phone or through the HDFC Ergo website. After that, the user will have to upload the images of the damages to the vehicle along with necessary documents. The documents will be reviewed and sent for approval to the insurance company’s central team. Once approved the claimant will be given the option to choose for instant cash. If they choose to go with instant cash, the approved amount will be credited immediately to the customer’s bank account. Those who do not want instant cash, the claim amount will be provided on the basis of the pre-approved assessment to the assigned workshop. The newly launched service can be used to submit claims for only up to INR20,000. It also abolishes physical surveyor’s inspection and reduces the time required for the approval of the claim. Read More ...

Instabima Insurance Web Aggregator Private Limited | 18 May 2019 12:14 PM
India: Regulator aims to ease the KYC process for insurers

The insurance regulator plans to urge the government to allow the use of Aadhaar, a 12-digit identification number issued to each resident of India, to make the online know-your-customer (KYC) process simple and quick for insurers and policyholders. Read More ...

Asia Insurance Review | 17 May 2019 19:09 PM