IRDA Regulations for Standard Proposal form for Life Insurance 2013

The objective of the regulations is to provide a standard proposal form for individual policies in Life Insurance that has an inbuilt flexibility for seeking additional and specialized information that is product specific or specific to a particular risk category, with a view to ensuring that it takes into consideration all relevant questions that are required to understand the need for a particular product and make a recommendation to the prospect bringing in transparency and thereby protecting the prospect’ s interests.

Instructions for Proposer

·         It is necessary for the proposer to fill up this proposal form himself/herself and not allow an intermediary or any third party to do it. However, in case the proposer is not in a position to do so or the details are filled in by the proposer in vernacular, he/she must ensure that the details filled in are read out to him/her and that they are understood by him/her. He/she must make a declaration to this effect as indicated in Section D of this form.

·         Please read all the questions carefully and fill up the details truthfully.

·         Please ensure that you affix your signatures in all the places as required. In certain places more than one signature is required. This is in your own interest.

·         Wherever the intermediary (Agent/Bancassurance/Broker) is required to sign, please ensure that the same has been done by him/her.

·         This form contains 4 sections namely

Ø  Section A:  Contains the Details of Proposer which is mandatory, It contains personal information, identification proof, Family Details, Employment details or self employment details, details of Nominee and Appointee, Existing insurance etc

Ø  Section B: Contains Specialized/Additional Information which may vary based on  the product (physical and medical information)

Ø  Section C: Contains Suitability Analysis which is highly recommended and

Ø  Section D: Product proposed which is mandatory. ( Life Stage, Protection needs etc)

·         For proposer and each life assured, separate forms to be submitted.

·         Signature/ of life assured and/or proposer sought twice in his/her interest.

Instructions to Intermediary (Agent /Broker):

·         It is highly recommended that the proposer is advised by you to give information required for Suitability Analysis as per Section C of the form, in his/her own interest.

·         Please ensure that the product recommended suits the needs o f the proposer.

·         Do not fill up the proposal form or any column of the form on behalf of the proposer even if requested to do so.

·         Please ensure that you affix your signatures wherever required in the form.

·         Please ensure that for proposer and each life assured, separate forms are collected.

Source: IRDA/Reg./10/68/2013

Benefits of Using Insurance Broker

When you plan to buy an insurance policy you have two options either buys through insurance agent who represents a specific company with limited number of offerings or buys through an insurance brokerage who offers you a wide range of offering from the different insurance companies.           

Client generally think, buying insurance direct from insurance companies provide more benefits, which is not true.        

Here are some of the advantages of purchasing insurance plan through an insurance broker:

·         Loyalty: Broker represents you not the company and strictly regulated by IRDA. Brokers are able to sell you a wide range of insurance products from the number of insurance companies. While agent can sell you insurance products from one company. Here you have a choice to compare the different offering as per your need and choose the best available option in the market.

·         Professional:Brokers are organizations with larger wealth, which makes them possible to invest in people, processes and their client much better as compare to insurance companies. Brokers are much aware with the current industry trends in the market, because they have current updates of the carriers they represent. So they are more capable in providing the competent and skilled advice as compared to insurance agents representing the only one insurance company.

·         Trust: Brokers are licensed trough the Insurance Regulatory and Development Authority (IRDA). IRDA works with the mission “To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.” Brokers are required to meet the norms of IRDA.

·         Specialist Provider:  As the word is moving towards the e commerce, many insurance brokerage firms also provide you the online insurance portal to compare and buy insurance policies. Benefits of online insurance portal are -                 

Ø  Compare and Select

Ø  Shop Right

Ø  Take Advantage

·         Disclosure:  Insurance Broker provides you with all the necessary information which you need to make a smart choice when you decide which policy is better for you.

·         Privacy:Brokers are under the regulations of IRDA; they have to follow some code of ethics. They have to keep client information confidential.

Choosing an insurance brokerage means you are holding the hand of a professional which provides you the best policy for yourself and your family.

Bajaj Capital Insurance Broking Ltd is an IRDA licensed composite brokerage which known for the excellent customers services. Bajaj Capital insurance provides online insurance portal which allow client to compare and buy insurance policies that meets their need best.

Things to Consider Before Buying Online Health Insurance Plan

"The only way to keep your health is to eat what you don't want, drink what you don't like, and do what you'd rather not.” ~ Mark Twain.

If you health is not good, you are not being able to enjoy your wealth.  From financial point of view being unhealthy will slowly cut down your wealth in terms of paying medical expenses and treatment bills.
Use Health Insurance as a financial tool to overcome the extreme cost of Medical Treatment. 
No one likes to think about getting sick. Precaution is always better than Cure. For being financially stable in medical emergency, buy Health Insurance Policy for yourself and your family. 
In market there are number of health insurance plans available with different offerings like Individual health insurance plan, family floater health insurance, critical illness health insurance, health insurance plans for senior citizen and many more.
But before buying any health insurance policy understand your need and choose the best available option in the market. If you think to compare health insurance plans so must aware about the following aspects

•        Compare the Premium ~ Compare the premium of different plans as per the company offerings for choosing the best health insurance plan. And also walk through maximum number of plans.
•        What Coverage amount I need ~ Higher Coverage amount may also raise the insurance premium, if you are not able to afford higher premium health insurance, you have options that may provide you low cost health insurance.
•        Coverage for Preventive Care ~ also looks for preventive care which can help you avoid illness and improve your health without additional cost. Preventive care services are the smart way to keep you and your family healthy.
•        Cashless benefits ~ Looks for the network hospital list for your treatment in which insurer pays directly.
•        Pre-Existing Disease Cover ~ must be aware about the ailments that are not covered under health insurance. Review the clauses for pre-existing diseases; some plans may not cover the pre existing diseases like diabetes etc.

Bajaj Capital insurance provides their valuable clients a free online insurance portal to compare and buy best health insurance policies. We associated with number of leading health insurance companies in India to provide you the right information to compare different offering. We aim to facilitate our clients with the best services in the market with claim assistance services. For any query regarding the insurance feel free to call on 1860-266-1226 or write a email at info@bajajcapitalinsurance.com.

RBI’s Guidelines on Investment in Insurance for Core Investment Companies

Any CIC registered with reserve Bank of India which satisfies the eligibility criteria will be permitted to set up a joint venture company for undertaking insurance business. The maximum equity contribution such a CIC can hold in the joint venture company will be as per IRDA approval.
Eligibility criteria for joint venture participant.

• The owned funds of the CIC shall not be less than Rs. 500 crore;
• The level of net non-performing assets shall be not more than 1% of the total advances;
• The CIC should have registered net profit continuously for three consecutive years;
• The track record of the performance of the subsidiaries, if any, of the concerned CIC should be satisfactory;
• The CIC shall comply with all applicable regulations including CIC Directions, 2011. Thus CICs-ND-SI are required to maintain adjusted net worth which shall be not less than 30% of aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items.

Holding of equity by a promoter CIC in an insurance company or investment in insurance business will be subject to compliance with any rules and regulations laid down by the IRDA/Central Government. This will include compliance with Section 6AA of the Insurance Act as amended by the IRDA Act, 1999, for divestment of equity in excess of 26 per cent of the paid up capital within a prescribed period of time.

CICs exempted from registration with RBI in terms of the Core Investment Companies (Reserve Bank) Directions, 2011 do not require prior approval provided they fulfill all the necessary conditions of exemption.

Source- http://www.rbi.org.in/scripts/BS_NBFCNotificationView.aspx?Id=7918

Insurance with a Difference - Pay motor insurance based on distance traveled

Vehicle owners may soon have an option to buy insurance cover in proportion to distance traveled. Insurance Companies are testing this model and hopefully it will be available soon.
This new way of paying insurance is known as 'PAY AS YOU GO'.

Pay as you go refers to buying a car insurance policy as and when you need it. If you vehicle stands in the garage for too many days or your usages of driving is low, you don’t have to think about the cost of insurance that may be going wasted. The basic idea is to charge INR 1000 which can cover 30 days of driving. Instead of paying the entire year's premium in advance, the policyholder can pay according to his usage. If the usage is less, the remaining amount can be refunded.

Future Generali Group in partnership with Logica, a UK-based IT company, The group also collecting & analyzing data to come up with a pricing model for ‘Pay as you go’ insurance, after that they plan to approach IRDA.
Bharti AXA General Insurance is testing the concept by installing GPS devices in the cars of 150 of its employees.
The GPS device gathers data based on the mileage and the roads on which the vehicle has run. The GPS device uses satellite technology to track your miles, with motorists able to monitor your driving behavior online.

 Hence, Insurance Company may price the cover based on each of these parameters. Currently, motor insurance premium in India is calculated based on age and value of the vehicle after detecting the depreciation cost. With ‘pay as you go’ vehicle insurance, owners who drive more and have rough driving habits will be charged higher premium.


Source :- http://www.thehindubusinessline.com Dated : April 02 2013

'Any One Illness' with reference to health insurance policies

'Any one illness' would mean the continuous period of illness, including relapse within a certain number of days as specified in the policy. Usually this is 45 days.

A medical crisis can quickly cut deep into your savings.

Can you afford a major illness? A Critical Illness insurance policy pays cash for any qualifying serious illness.

Critical Illness policy with a health insurance plan can help you feel more financially comfortable with your insurance choices.

For any assistance you can call us on 1860-266-1226 or email your query at info@bajajcapitalinsurance.com. 

BajajCapital Insurance feels happy to assist you.