Insurance companies use the concept of anti-selection to ensure that a group consists of a mix of people so that other group does not end up compensating for one risky group.
In indemnity based insurance plans, an individual can visit their choice of healthcare provider to avail treatment. The insurer pays a fixed sum as a lump sum amount for this, which is also referred to as reimbursement.
Crop insurance contributed the largest to the growth with Agriculture Insurance Company of India showing a 101.3 percent growth.
The insurance industry will now have access to a panel of 13 actuaries who will be assisting them in a range of services. The panel has been put together by IRDAI from a list of candidates who had applied for the post.
Term insurance is all about financial protection – it is a must for every individual with responsibilities towards their loved ones.
The proposed health insurer, Reliance Health Insurance, will be a wholly owned subsidiary of Reliance Capital. Retail health insurance is a profitable segment for the non-life industry.
A basic health insurance plan will reimburse (within your cover limits) all your treatment related expenses if you are hospitalized. However there may be no provision to cover incidental expenses or the loss of income due to your inability to pursue your employment. This is where stand-alone hospital cash policies step in.
According to data on general insurance claims by the Insurance Brokers Association of India (IBAI), only around 3 percent health claims have been pending for more than one year.
Women should take the lead in buying health insurance policies early on in life and can then choose to add their spouse once they get married.
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The panel would be required to give an opinion on products filed by an insurer. Further, the regulator may ask any actuary panel to investigate financial position of any insurer or to give an opinion on valuation.
On an average, premiums could go up by 20 percent. Product prices can only be revised every three years
While many informed individuals go for health insurance, they are exposed to the risks associated with errors while picking the health insurance.
If you invest in a life insurance you can avail of two kinds of tax benefits. One is by way of availing a deduction from your taxable income and the other through gaining exemption from your total income.
Health insurance policies with a cover of Rs 1 crore is becoming the new norm in the industry. With health inflation on the rise and average out-of-pocket medical expenses on the rise, insurers are increasing their cover sizes.
Combi or combination products that have the features of both life and health insurance products are expected to be back into the industry with insurers planning to bring out such products in the next financial year
Section 80D of the Income Tax Act in India allows a taxpayer to claim deductions of up to Rs. 25,000 on payment of medical insurance premium during a financial year. Senior citizens (above the age of 60 years) can claim Rs. 30,000 under this section.
The life insurance penetration is still tumbling in India, which currently is at 2.72% for the year 2015 dipping from 3.4% in the year 2011.
Purchasing health insurance is a must, not just to avail tax benefits but also to ensure that you are taken care of financially when you are not well.
Ensure healthcare security of the nation by incentivizing purchase of health insurance
The number of people who avail some quality cover under personal insurance is very low and revenue collection of government is no way going to get affected materially by extending some tax benefit as non-life penetration still stands at a low of 0.7% of GDP and personal insurance would be hardly measurable.
Health insurance providers feel tax incentives to salaried class on purchase of health insurance should be raised. Also, exemption of service tax on health insurance premiums and preventive health check-ups can prompt more people to buy health cover.
A tax free universal health insurance scheme would encourage all those people who have yet to enter the health insurance market, to consider investing in the scheme to avail of quality healthcare.
The finance minister may announce changes in Atal Pension Yojana (APY) rules, widening the age for subscription to 50 years from 40 years and double the maximum monthly pension to Rs 10,000; a government-funded health insurance scheme for domestic workers, construction and migrant labourers also under consideration
Since, house is one‘s biggest financial asset introducing income tax exemption on premium paid will push more people to opt for home insurance.