The complete process of claiming Insurance of your Stolen Car

In the case, your car got stolen from anywhere, and you want to make an insurance claim of it; the first step you have to take is to notify the insurance company as soon as possible. You must also inform the police within 24 hours of the incident happened. The insurance company’s office will help through the entire process. The significant thing to know about is that the vehicle must be covered under the comprehensive policy from the insurer, which includes theft or fire, damage in the natural calamities, accidental damage to the car, and third party cover.


Action needs to be taken to claim your vehicle insurance-

First Information Report (FIR)

The owner of the vehicle has to file a police complaint within 24 hours of a period starting from the incident happened.

Insurance claim form

The car owner must provide the necessary information regarding the vehicle through calling customer care center of the insurance company such as details of the car, insurance policy number and also the description about the time and date of the incident. Customer executive will note those details for filling up of the claim form.

Why do I need a personal accident Insurance Policy?

Important Documents

The insured must submit all the necessary documents to the RTO office like duplicate copies of the RC (registration certificate) of the vehicle, a copy of the driving license, records of the insurance policies, correctly signed insurance claim form, FIR of the incident and a letter revealing the theft of the vehicle.

Claim approved/settled

The owner of the vehicle must transfer the registration of the car in the name of the insurance company and hand-over the keys along with a letter of subrogation to the insurer straight after the police submit its ultimate ‘non-traceable’ report of the vehicle, and the claim is approved/settled by the insurance company.

Repayment from the insurer

The owner of the vehicle must submit the authentic copy of the repair invoice and receipt of the payment to the insurance company. Post that, the settled amount will be compensated between the period of one week.

Why should you get a standalone cancer insurance plan?

Insurance claim refused

There are some chances that your insurance claim will not get accepted by the insurance company like-

  • If the car does not have a valid RC
  • If the car with a private registration certificate (i.e. white number plate) is given on rental purpose or any business purpose.
  • If any type of false representation and misleading facts regarding the theft incident are detected.
  • If one has purchased a used car and the registration of that car has not yet transferred to his name in the copy of the insurance policy, then the policy will be taken as a void and the claims will not get accepted.
  • If the vehicle is stolen by the carelessness of the owner. The claim might get rejected in the case where the owner forgets to lock the doors and close the side windows of the vehicle or leave the keys inside the car without locking the doors.
  • Furthermore, the insurance company will compensate the paid amount to the finance company or bank if the vehicle was purchased on loan.
  • The owner of the vehicle should attain a duplicate copy of the RC of the car from the office of RTO (Road Tax Officer) as soon as possible.

Why should you get a standalone cancer insurance plan?

According to a report by the Indian Council of Medical Research (ICMR) based on its National Cancer Registry Programme, the number of new cancer cases is expected to rise from 13 lakhs in 2015 to 18 lakhs in 2020. Around 60-70 percent cancer cases are in the age group of 35-64 years.

The cost of treating this dreaded disease can range anywhere between Rs 15 lakhs and Rs 25 lakhs, or even more, which makes it imperative to have an insurance cover. Since the amount of coverage provided by a normal health insurance policy is likely to be inadequate, many insurance companies offer stand-alone policies that cover all types of cancers.


Standalone cancer insurance plans are fixed benefit plans that offer lump-sum payouts at different stages. The sum assured for these policy starts from Rs 200,000 and goes up to Rs 50 lakhs. The term of the policy can range from five to 70 years. As these are pure protection plans, they do not offer any benefit in case the policyholder survives the policy term.

Cancer-specific policies cover different stages of diagnosis, be it minor, major or critical. They cover various treatments, including chemotherapy, radiation therapy, hospitalization, and surgery.

What is the treatment cost of Cancer and how to protect it Financially?

The three stages of cancer that are covered include Carcinoma in Situ (CIS) or the making of a tumour, minor stage, and major or critical stage. The pay-out happens depending on the stage the person is diagnosed with. Around 20-25 percent of the sum assured is paid out if the policyholder is diagnosed at an early or minor stage (the exact percentage varies from one insurer to another). If partial payment has been made by the insurer at an early stage, it is then deducted from the payment at the major stage. For instance, if 25 percent payment has been made in the minor stage, then only 75 percent of the sum insured will be paid at the major stage.

Pre-existing cancer is not covered by these policies. Certain cancers such as skin cancer and cancer caused by sexually transmitted diseases are also not covered by these policies. “Exclusions are important and those buying these policies should read the policy wording carefully,”


Critical illness covers too provide lump sum cover for a number of critical illnesses, including cancer. But they don’t cover all the expenses incurred during cancer treatment. They pay only a pre-defined amount upon diagnosis of any critical illnesses listed in the policy document. If you have a mediclaim policy, it will pay for the cost of treatment up to a certain limit. On the other hand, these standalone cancer covers will pay a pre-defined amount on diagnosis of the disease, and at a couple of other stages, which you can use for treatment and meet various other expenses that may arise.

A health insurance policy provides cover for hospitalization expenses, but there are always several additional expenses that are not covered. These cancer plans act as a supplementary cover in addition to the basic health insurance plans. “If one is at an average risk of developing cancer depending on one’s family history, one should have a standalone cancer product. But one should remember that a cancer plan cannot be a substitute for a basic health insurance policy,”

On diagnosis of cancer, future premiums are waived off. One can also claim tax benefit under Section 80D on the premium paid. The premium for this cover is calculated based on the sum assured, policyholder’s gender and age, term of the policy, existing health issues, and family history. A person is not covered if he has already got cancer due to the risk of recurrence.


10 things I have learned about investing

Following these simple yet indispensable investment insights can save you a lot of regret and sleepless nights.

You don’t make money by watching TV:

There are many business-news channels now which claim that they help you make money. Ever wondered why they never advertise the track record of the recommendations they make? Or why they only seem to talk about the winning recommendations and not the losing ones? Or why they seem to talk about ‘global cues’ driving the stock market all the time?

Most of the business news TV is best for understanding things in retrospect. In fact, when the business TV wallahs don’t have a reason for what is driving the stock market, they say, ‘global cues’. Also, the short-term orientation of TV channels will essentially make your broker, and not you, rich.

You don’t make money by reading newspapers either:

All the business newspapers these days have a strong personal-finance as well as a stock-market section. But a lot of the analysis on offer is full of hindsight bias, i.e., they come up with nice explanations of things after they have already happened. Further, newspaper reporters can get analysts to say things that fit in with the headline that has already been thought of. Analysts are more than happy saying these things in order to see their name in the newspapers. And it is worth remembering that newspapers have space to fill. So they will write stuff even if the situation doesn’t demand it.

Kirang Gandhi

SIPs work best over the long term:

If you were to ask a typical fund manager about how long one should stay invested in an SIP, the answer usually is three to five years. Honestly, I think that is too low a number. I started my first SIP in December 2005. And more than ten years later, I am actually seeing the benefit of having invested for so long. Also, it is worth remembering that SIPs over the long term are about a regular investing habit which gives reasonable returns than the possibility of fabulous returns that one might earn by choosing the right stock. This is an important distinction that needs to be made.

EMI VS SIP ( Be controlled or take control )

Don’t chase fund managers:

I did this during the 2007-2008 period and lost a lot of money doing it. I think it’s best to stick to investing in good large and mid-cap funds which have had a good track record over a long period of time, instead of chasing the hottest fund managers on the block. The funds with the best returns in the short term (one to three years) keep changing, and there is no way you can predict the next big thing on the block; the point being, investing should be boring. If it is giving you an adrenaline rush, you are not doing the right things.

Endowment policies are not investment policies:

Endowment policies sold by insurance companies are a very popular form of investing as well as saving tax. One reason for this is because they are deemed to be safe. But have you ever asked how much return these policies actually give? If I can be slightly technical here, what is the internal rate of return of an average endowment policy in which an individual invests for a period of 20 years? You will be surprised to know that such data are not available. But from what I understand about these things, endowment policies give a lower rate of return than inflation. So why bother? Endowment policies are essentially a cheap way for the government to raise money, given that most of these policies end up investing the money raised in government bonds. That is all there is to it. If you want to finance the government, please do so, but there are better ways of earning a return on your investment.

LIC Jeevan Labh Plan : Reviews/Features/Return Sheet

What are ULIPs? I am still trying to understand:

ULIPs are unit-linked investment plans, essentially investment plans which come with some insurance. The trouble is if they are investment plans, why are there no past returns of these policies available anywhere? But what are ULIPs? I have put this question to many people, but I am yet to receive an answer. What is the best-performing ULIP over the last five years? No one has been able to give me that answer. This is not surprising, given how complicated the structure of an average ULIP is. Hence, if you want to invest indirectly in equity, it is best to stick to mutual funds.

Sensex/Nifty forecasts are largely bogus:

Towards the end of every year or even around Diwali, all broking houses come up with their Sensex/Nifty forecasts for the next year. Usually, these are positive and expect the index to go up. At the same time, they are largely wrong. You can Google and check. Hence, treat them as entertainment but don’t take them seriously. Stock brokerages bring out such forecasts because it is an easy way to get some presence in the media. Both TV and newspapers, for some reason I don’t understand, are suckers for Sensex as well as Nifty forecasts.

Don’t buy a home unless you want to live in it or have black money:

Much is made about excellent returns from property. The trouble is there are no reliable numbers going around. It’s only people talking from experience. But when people calculate property returns, they do not take a lot of expenses into account. Also, when people talk about property returns they talk about big numbers: ‘I bought this for `20 lakh but sold it for a crore.’ This feels like a huge return, but it doesn’t exactly take into account the time factor as well as loads of expenses and other headaches that come with owning property. Further, these days there are other risks like the builder disappearing or not giving possession for a very long time. This leads to a situation where individuals end up paying both EMI as well as rent. Also, property returns have been negative in many parts of the country over the last few years. And given the current price levels, I don’t think buying a home is the best way to invest currently.

Real estate rental yield is below one percent

Gurus are good fun:

In my earlier avatar as a journalist, one widely followed stock-market guru told a closed gathering of investors that Sensex would touch 50,000 level in six to seven years. He said it very confidently. Confident stock-market gurus make for good newspaper copy. I wrote about it and the story was splashed on the front page of the newspaper I worked for. It was October 2007. Nearly nine years later, the Sensex is at half of the predicted level. The point is that gurus might be good. They might have the ability to predict things in advance. But then, why would they give their insight to the media, and in the process, you, dear reader, for free? Remember this, next time you see a guru making a prediction.

Low interest rates on loans also mean low interest rates on your fixed deposits:

This is something that many people don’t seem to understand. People want low interest rates on their loans, but they are not happy with low-interest rates on their deposits. Banks fund loans by raising fixed deposits. They can’t cut interest rates on their loans unless they cut interest rates on their deposits. It’s as simple as that. Nevertheless, I wonder why people can’t seem to understand this basic point.


By Vivek Kaul

What is the treatment cost of Cancer and how to protect it Financially?

In 2015, about 90 million people had Cancer and 8.80 million deaths occurred due to this dreaded disease which is also the second leading cause of death globally. According to World Health Organization (WHO) nearly 10 Lakh new cases are reported every year in India. Unfortunately, nearly 5 Lakh people annually die in India due to cancer and this number will go up and projected to raise five folds by 2025, according to WHO.

During 2016, estimated 1.5 lakh new breast cancer cases have been registered (over 10 per cent of all cancers) in India. Breast Cancer is the number one Cancer followed by lungCancer with estimated 1.14 lakhs cases, according to a premier medical research organisation in India.Cervix is the third most common cancer in India with estimated 1 lakh new cases reported in 2016 according to The Indian Council of Medical Research (ICMR).

The alarming statistics above can make any one depressed and anxious but the fact is that Cancer is now a common disease globally and different types of cancer are being diagnosed every day.


What is the treatment cost of Cancer?

The treatment of Cancer is spiralling with discovery of new drugs and technology. As you may know, in India, the cost is so high that it may wipe out the entire savings of the family and thus ruin the financial future of the family.

In a Cancer treatment, it is next to impossible to put up a cost rate because every cancer case is different.

Difference arise from the organ affected  ( Primary organ and secondary organs that cancer has metastated to ) Further, the mode of treatment and drugs usage changes as per stage of cancer. Hence, the closed estimate of treatment can be provided only after evaluation of your medical reports like CT scan,USG,Biopsy reports etc..

However, there is a way by which you can protect this – the answer is Cancer Protection Plan offered by life insurance companies. But before we discuss that, let us see some example of the tentative costs involved (it may vary from one institute to the other) in treatment of Cancer.

The cost of treating cancer may range from Rs 5 lakh to Rs 25 lakh approximately in six months’ time frame depending upon the stage of diagnosis. Also, people diagnosed with cancer may not be able to continue with their routine income-earning job which may result in loss of regular income.

  • Breast cancer surgery can cost Rs 3,00,000 to Rs. 5,00,000
  • Chemotherapy – The cost depends on the drug applied and the number of sessions. Approximate cost can vary between 50,000 – 100,000 for each session
  • Radiation – This therapy can cost Rs 150,000 – 250,000 per cycle
  • A PET-CT Scan can alone cost Rs 25,000 – 40,000

Source: For costing

Cost of Cancer Treatment in India for all major cancers

How to protect oneself from Cancer

If you have a regular health insurance plan or mediclaim insurance, it pays for the hospitalization cost upto the extent of the sum assured taken. Also, if you have taken a critical illness rider, the life insurance company pays the rider amount immediately on diagnosis of the disease without submission of any bill.

However, as you have seen, the cost of Cancer treatment is so high that, a regular health plan may not be enough to recover the entire treatment cost. Likewise, the coverage in a critical illness rider policy is limited and if you add that too, still it may not be sufficient to recover the entire treatment cost involved for the prolonged period.

The Best Health Insurance Plan for the Diabetic Patients

The answer lies in taking a cover exclusive to Cancer – The Cancer Protection Plan.

How the cancer Protection Plan works

Cancer Protection Plan is normally offered between age 18 to 65 years and it can be taken for 10, 15 or 20 years or 80 year minus age at entry. Sum assured taken can be from 10 Lakhs to maximum 40 Lakhs.

Cancer Protection Plan may come in many variant. For example – Lump sum cover and Lump sum cover with income benefit. In ‘Lump Sum Cover’ the fixed payout is made on diagnosis of cancer and in ‘Lump Sum Cover with Income Benefit’, one can receive a fixed percentage of the Cancer cover amount monthly for few years,over and above getting the lump sum amount on diagnosis of Cancer.

The other benefits of Cancer Protection Plan are that premium for these plans are generally low and in most cases medical examination is not required.

Our country continues to be one of the most under-penetrated in the world, as far as taking health protection plans are concerned. Not even 1% of the total population is insured for health coverage even though there has been a growing awareness of health insurance products. Since Cancer treatment is long-term in nature, it also translates into a recurring expenditure and loss of pay due to a prolong absence from work. This is the reason why one must have a Cancer Protection Plan exclusively over and above the regular health plan.

Even though Cancer is dreaded and the treatment can be prolonged, a Cancer Protection Plan can help not only fight with Cancer but also helps to protect your life’s savings.




(Insurance is the subject matter of the solicitation. For more details on the risk factors, term and conditions please read sales brochure of the respective companies carefully)


Source : Priyanka Chakrabarty


Why do I need a personal accident Insurance Policy?

These days due to increasing number of vehicles in the country, the number of accidents are happening. Life is capricious or uncertain. Anything can happen to anyone at any point in time. People purchase insurance to protect themselves financially against such unfortunate events. A good insurance portfolio ensures that all eventualities cover you or your finances. Life insurance proceeds will ensure that your family achieves the financial goals in your absence. A health insurance plan will provide quality health care for you and your family. Many people of us are inclined to feel that if we have adequate life, health or critical insurance, your finances are protected.

What about an accident or an illness that causes total or partial disability, which in turn compromises your ability to earn income at the level before the accident. Life insurance will typically not cover such a scenario. Health insurance covers only hospitalization expenses. You can see there is a gap, which is not covered. It is in such cases that a Personal Accident Cover can come in handy. Personal Accident Insurance plans offer limited coverage but are still better than nothing.Under your term cover, you might get the accident benefit rider on extra payment but it will mostly pay off in the cases of permanent total disability, thereby leaving all other temporary and partial disabilities. 

accidentAccidents are categorized as one of fatal health hazards worldwide. When this health hazard is put into the frame of a country where one person dies by accident every four-minute, it does require our attention. According to World Health Organization (WHO) report, about 12.5 crore people die every year due to accidents and between 200-500 crore sustain injuries.

A personal accident policy covers death, permanent total disability, permanent partial disability and total temporary disability due to an accident. First of all, these events have to happen in an accident. If the insured person dies or gets totally or partially disabled through a natural illness, such disability (or death) will not be covered under a personal accident policy.

If one day on your way back home you meet with an accident which may leave you paralyzed for life? It is scary. But, this can happen and might leave a long-lasting impact on your life. With lives lost daily and injuries rising rapidly due to accidents, we come across many cases of permanent total or permanent partial disability. A personal accident cover helps in such a scenario by providing coverage for disability, which is not typically covered under either life or health insurance.

personalWhat if you fall victim to temporary total disablement, how would you meet the income/Job loss caused by it. In such a case, your personal accident cover comes handy with income coverage part. This means, if for some time you are completely bedridden due to injury, you will be paid a certain percentage of your sum assured weekly to compensate the income/Job loss scenario.

When you are young, your chances of meeting with an accident are higher. According to WHO report, people aged between 15 and 44 years account for 48% of global road-traffic deaths; If this is just the data for deaths, imagine the rate of disability prone youth. Hence, it is always advisable to opt for a personal accident cover when you first start earning. The plan provides a considerable protection for a very low premium. While you get 100% payout in case of permanent total disability, in partial disability you get paid depending on the extent of the loss. For example; for the loss of an eye, the policy will pay 50% of the total coverage, for the loss of a leg it will typically pay 50-70% of the total coverage.

Say a strict no to Guaranteed Life Insurance Plans

Regardless of the fact whether you got hit by a two-wheeler or a four-wheeler, your personal accident insurance will cover even minor things like falling off a bike, among others. Not only this, even small injuries like broken bones, fractures, cuts, burns, etc. which do not require hospitalization, get covered under a personal accident cover.

The rule of thumb says you should go for a cover that is eight to ten times your annual income. The personal, emotional or mental trauma triggered by accident often leaves a permanent scar on life. Therefore, having a personal accident insurance can decrease that stress and can make your life a little less stressful. It can brace you from the financial hardships.


The premiums for an accident cover are abysmally low. For a sum assured of Rs 5 lakh, your premiums can be as small as Rs. 600/- p.a. for death, total and partial disability coverage. This is probably equivalent to what you may pay for a meal for two when buying a food delivery app. However, we suggest that you should always buy a cover, which is at least ten times your annual salary. This is because your accident cover acts as your income in the event of death or disability. The product currently is an evolving one, and most insurers provide a protection of up to Rs 30 lakh online. The higher sum assured can be brought offline only.


Personal accident cover is required only to take care of permanent disability (total or partial). Your life insurance, health insurance, and emergency corpus should take care of accidental death, accident-related hospitalization and temporary loss of income.

Permanent disability, total or partial, can compromise your earning ability. In fact, it can even add to your expenses. You may require domiciliary treatment (treatment at home), physiotherapy sessions or nurse support. No health insurance coverage will cover such costs beyond a point.


LIC had launched its second health insurance related plan which is named as LIC Cancer Cover (Plan-905) on 14th November 2017. LIC’s Cancer Cover is a regular premium payment health insurance plan which provides financial protection in case the Life Assured is diagnosed with any of the stages of Cancer during the policy term. This plan covers both the early stage cancer and significant stage cancer.

It is an online health insurance plan which has low premiums, and it comes with some benefits and add-on features.


It comes with numerable benefits like lump sum benefit, premium waiver benefit, income benefit which would be paid till ten years every month, and many more.

  • This plan has one month grace period.
  • Loan facility is not available in this policy as the policy will not acquire any paid-up value or surrender value.
  • The term period of policy is 10-30 years.
  • Tax rebate available under Income Tax under section 80D for premium amount paid.
  • It comes with two sum assured plans, i.e., Level 1 and Level 2.
  • This policy is non-linked and regular premium paying health insurance plan.
  • Basic sum assured is between Rs 10 Lakhs to Rs 50 Lakhs.
  • Free look period of 15 days if the policyholder is not satisfied with terms and conditions of the policy.
  • The policy will lapse if premium not paid within the grace period, though it can be revived but within two years of first unpaid premium.
  • The policy can be bought through online on LIC website.
  • No third party agencies are involved in this policy.
  • Nominations are available in this plan.
  • Policy can be assigned under as per Sec 38 of Insurance Act 1983.

Say a strict no to Guaranteed Life Insurance Plans

Sum Assured Options-

  • Level Sum Insured

The basic sum insured will remain the same throughout the policy term period.

  • Increasing Sum Insured

The sum insured increases by 10% of basic sum insured each year for first five years starting from the first policy anniversary or until the diagnosis of  first event of cancer, whichever is earlier. On diagnosis of any specified cancer as mentioned above, all the claims will be based on the increased sum insured at the policy anniversary coinciding or prior to the diagnosis of the first claim and further increases to this sum insured will not be applicable.


  • Lump sum Benefit-
  1. Early stage cancer In this stage, the early stage cancer is diagnosed, 25% of sun insured would be paid immediately to be insured.
  2. Major stage cancer in this stage of cancer, 100% sum insured would be paid on being diagnosed.
  • Premium Waiver Benefit-
  1. Early stage cancer In this stage of cancer, first three years premium would be waived and later the premium payment to be continued.
  2. Major stage cancer In this stage, all future premium payments would be waived off.
  • Income Benefit-
  1. Early stage cancer benefit is not available.
  2. Major stage cancer In this stage, 1% of basic sum insured would be paid every policy month for ten years irrespective of the policy term, i.e., even if policy tenure is over, this benefit amount has been paid.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

  • Tax Benefit-

Tax benefits are available under section 80D of medical insurance but not under 80C as this is health insurance plan and not life insurance plan.

  • No Maturity and Death Benefit is available in this plan.

Eligibility Criteria for this plan-

LIC TABLEPremiums Payable under this plan-

For 20 years of term period and sum insured of Rs. 10 lakhs would have premiums accordingly:

  • Male whose age is 30 years For level 1 premium is Rs. 1,404 and for level 2 premiums is Rs. 1,841.
  • Male whose age is 40 years For level 1 premium is Rs. 3,044 and for level 2 premium is Rs. 4,224.
  • Male whose age is 50 years For level 1 premium is Rs. 9,936 and for level 2 premium is Rs. 14,101.
  • Female whose age is 30 years For level 1 premium is Rs. 2,856 and for level 2 premium is 3,953.
  • Female whose age is 40 years For level 1 premium is Rs. 5,546 and for level 2 premium is 7,753.
  • Female whose age is 50 years For level 1 premium is Rs. 9,900 and for level 2 premium is Rs. 13,476.

Waiting periods in this plan-

A waiting period of 6 months will be applied from the date of issuance of policy or date of revival of risk cover whichever is later, to the first diagnosis of any stage of cancer.

What are the Reasons Behind Most Women not Having a Health Insurance Cover?


  • Any Pre-Existing Condition.
  • If the diagnosis of a Cancer was made within 180 days from the Date of issuance of policy or date of revival of risk cover whichever is later.
  • For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS-related complex or infection by Human Immunodeficiency Virus (HIV).
  • For any medical condition or any medical procedure arising from the donation of any of the Life Assured organs.
  • For any medical conditions suffered by the Life Assured or any medical procedure undergone by the Life Assured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug (except under the direction of a registered medical practitioner).
  • For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature.



All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.


Reason behind the rejection of claim

  • Lack of information on the proposal forms

The life insurance customers always make a common mistake that they hire the agents to fill the form on their behalf just because they find the form filling process very time to consume and complicated.

These agents may sometimes fill incorrect or incomplete information which will cause the rejection of your form. So, always fill your form yourself and recheck it after completing.

  • Not revealing (hiding) personal information

The personal information like age, occupation, family history, smoking habits, pre-existing diseases, alcohol consumption, details of other policy you are holding, etc. is vital to fill in the form for the insurance claim, which is used by the insurers to fix the premium. And if there is any mistake or conceal in this information, your form may get rejected.


  • Pre-existing Diseases

If you have any of the pre-existing diseases and you claim for the insurance but do not reveal the fact of your disease in the form. In this case, your claim would get rejected as because it is essential to disclose certain facts in the form.

  • Settle the claims before the policy gets expired

It is essential to pay the premium on time so that your policy would be active. And if you fail to pay the premium, your policy will get expired and your claim would get rejected. So, to avoid the policy lapse, do not miss paying premiums on time.

Ways to settle your claim

 Go to the insurance company to resolve the claim

You can go and meet the Grievance Redressal Officer (GRO) of the insurance company and give him/her the complaint in written along with the required documents. And do not forget to take a written acceptance of the complaint with the date. Your complaint should get settled by the insurance company within 15 days from the filing of the complaint. And if the insurance company or the insurer fails to settle the issue within the mentioned time, you can approach the IRDA (Insurance Regulatory & Development Authority of India) Within the period of 1 year from the complaint filing date.

  • Register your complaint to IRDA

You can register your complaint via email to the IRDA ([email protected]) or you can mail or post your complaints to IRDA head office in Hyderabad. To register the complaint to IRDA, you should clearly specify the insurance holder’s name and address along with the name of the branch or office of the insurer against whom you have to file the complaint. And you have to state all the facts which give rise to register you a complaint. Also, required documents must be attached to the complaint. The nature and extent of the loss caused to the complainant and the relief requested from the Insurance Ombudsman (an official appointed to investigate individuals).

Say a strict no to Guaranteed Life Insurance Plans

The Ombudsman gives his advice or suggestion within one month if parties agree to conciliation; otherwise, an award is passed within three months from the date of receipt of all requirements from a complainant. Then the insurance company has only 30 days to observe the suggestions given by the Ombudsman. And if the complainant is not satisfied with the results, then he/she can go to the consumer forum.

  • IGMS (Integrated Grievance Management System)

Besides all the above solutions, the IRDA has a new system to resolve the issues of the policyholders and stated it as IGMS. The system can be used by the policyholders to register and track their complaint with both the insurer and the IRDA. You just have to follow these simple steps:

  • Go to the IGMS website ( and create a profile on the name of the policyholder for further registration of complaint.
  • Fill up the asked details about your issue with the insurer.

Then you will receive an email along with IRDA token number which will be used by the IRDA and the Insurance Company to track the complaint. After the confirmation of the process from you, the complaint would go to the insurer’s system as well as the IRDA repository.

After the insurer makes the resolution, if you are not satisfied with that, then your complaint would be sent to the IRDA for a review for a potential violation of Regulations through IGMS.

After this act, there may be a surety for the complete satisfaction from your side and may be all your grievances would get solved.

Why you should say a big NO to LIC’s new Plans

In 2016, the biggest Insurance Company of India, LIC came up with 4 new schemes for the public. From January to December 2016, the company launched three Endowment plans and one Money-back plan. Out of the three endowment plans, one is a Limited Premium Payment Endowment scheme. The 4 plans are namely; LIC Bima Diamond Plan, LIC Jeevan Pragati, LIC Jeevan Shikhar & LIC Jeevan Labh.

Before discussing more on these plans, let us understand what Endowment & Money-back plans are.

  • An Endowment Plan is a combination of insurance and investment. The insured will get a lump sum along with bonuses on policy maturity or in a case of death.
  • A money back plan provides life coverage during the term of the policy and the maturity benefits are paid in installments by way of Survival Benefits (money-back payments).


LIC’s Bima Diamond Plan

Launched in September 2016 LICs BIMA Diamond plan is a non-linked, traditional Money Back policy. The plan is open up to 31st August 2017. It is a Limited Premium Payment Plan with survival benefit payable at the end of every 4th year.

Survival Benefit: At the end of each of the specified durations during the policy term, provided all due premiums have been paid, a fixed percentage of Basic Sum Assured shall be payable which is as below:

For policy term of 16 & 20 years: 15% of Basic Sum Assured is payable at the end of every 4th policy year.

For policy term of 24 years: 12% of the Basic Sum Assured is payable at the end of every 4th policy year.

Sum Assured on Maturity: For a policy term of 16 years 55% of the Basic Sum Assured and for policy terms of 20 & 24 years 40% of Basic Sum Assured is payable.

However, Maximum Basic Sum Assured that is offered under this policy is Rs 5 Lakh only, which is not enough if you are looking for a high insurance cover.

There are no simple and annual bonuses under Bima Diamond Plan. The Loyalty Addition, if any, shall be payable, on death after completion of 5th policy year but within the policy term or on maturity, at such rate and on such terms as may be declared by the Corporation.

Returns of around 4% to 5% can be obtained from this scheme.

Avoid buying this plan as it neither offers you better returns or a high life cover. However, If you have already bought it, you may let it lapse.


LIC’s Jeevan Pragati

Available for purchase from February 2016, LIC’s Jeevan Pragati Plan is a non-linked, with – profits plan which offers a combination of protection and savings.

This plan provides for the automatic increase in risk cover after every five years during the term of the policy. In addition, this plan also takes care of liquidity needs through loan facility.

Death Benefit:  In the event of death during the policy term, if all due premiums have been paid, Death benefit, is defined as the sum of Sum Assured on Death, vested Simple Reversionary Bonuses, and Final Additional bonus, if any, shall be payable.

Maturity Benefit: Sum Assured on Maturity + Simple Reversionary Bonuses + Final Additional bonus if any, shall be payable at the end of the maturity period.

The expected returns on this plan can be around 6%. However, these returns are highly dependent on the bonus rates that LIC declares every year.

If you are planning to buy this plan, you may ignore it.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

LIC’s Jeevan Shikhar Plan

LIC’s Jeevan Shikhar is an endowment plan. It is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium.

This plan is no longer available as the availability period ended on 31st march, 2016.

The proposer can choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured.

Maturity Benefit: On policy maturity, the Maturity Sum Assured along with Loyalty Addition (if any) shall be payable.

The expected returns from this plan are around 6%.

For those who have already subscribed to this policy, it is advisable to surrender it. The policy can be surrendered at any time during the policy year.  The Guaranteed Surrender Value allowable shall be as under:

In First year (after 3 months): 70% of the Single premium paid, thereafter, 90% of the Single premium paid.

LIC’s Jeevan Labh Plan

LIC’s Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings.

Death Benefit:  The death benefit under this plan is:

Sum Assured + Bonus + Final Additional Bonus (if any)

Maturity Benefit: The maturity benefit under this plan is:

Sum Assured + Bonus + Final Additional Bonus (if any).

The expected returns can be in the range of 5 to 7% depending on the premium payment term.

This plan is an endowment plan with more limitations. A mix of insurance and investment, this plan neither gives you good returns nor adequate insurance. So, you should avoid buying it. However, If you have already invested in this plan, you may let it lapse.

LIC Jeevan Labh Plan : Reviews/Features/Return Sheet

Must read for prospective policyholders:

These plans are very expensive when it comes to assuring high sums. So if your aim is to get adequate life cover, availing these policies will not help.

The traditional Life Insurance plans can offer returns in the range of 4 to 7% which is a lower Return on Investment considering the large investment period of more than 10 years. Therefore these kinds of plan may not suit you unless you are satisfied with such low returns.

In case you wish to avail tax saving benefit under Section 80C, go for a long term Small Savings Scheme like PPF (Public Provident Fund) rather than choosing a traditional Life Insurance Policy.

Life Insurance companies offer many plans with specific benefits which may not be suitable for everyone. Therefore be aware of all the features of any financial product that you are about to buy.

Say a strict no to Guaranteed Life Insurance Plans

Say a strict no to Guaranteed Life Insurance Plans

Guaranteed Life insurance plans are the basic product offered by almost all insurance companies. These plans attract a wide customer base especially during the last few months of the tax saving season. Also, in a state of falling interest rates, such guarantees attract those individuals who want life insurance for availing tax benefits.

In these plans, Insurers declare a ‘guaranteed addition’ (GA) or ‘guaranteed return’ instead of bonus which varies depending upon the profits made by the insurer. Apparently, such plans appear attractive with lots of guarantees thrown in at different stages of the policy. All in all, the maturity amount is guaranteed and so are the monthly payouts.

Such plans may come up with the offers of guaranteed addition of 7-9 per cent of premium per annum or guaranteed payouts of 126-138 percent of the annual premium each year.


The gap between guaranteed and actual returns

The guaranteed addition is not equivalent to the actual annualized returns. These guaranteed benefits accrue only on maturity and hence the actual return will vary from the one which is guaranteed to the customer. Guarantee always comes at a cost, therefore, the returns, after adjusting for the costs because of the guarantee, are low in such plans.

Although actual returns would depend on one’s age, term and premium amount, the average IRR (internal rate of return) in most traditional plans, including money-back, endowments, lie between 2 to 6 per cent per annum. The plans with guarantees would carry even lower returns.


An illustration

Let’s assume that there’s a guaranteed plan for a 10-year term, but with a premium paying eight-year term. The plan offers guaranteed payout of 150 percent of premium every year after maturity of 8 years.

It means that the premium is to be paid for 8 years, but life cover will run for 10 years. After maturity, payouts will happen for the next 8 years. Illustratively, if the premium is Rs 20,000, it has to be paid for the initial 8 years. Thereafter, from 10th till the 17th year, there will be an annual payout of Rs 30,000. The IRR in the above plan comes to 2.9 per cent per annum!

Types of guarantees

The structure of the guaranteed plans is not the same across insurers.

  • Insurers may offer a guaranteed return based either on the premium or on the sum assured.
  • The guarantee may also differ based on the term of the policy or even the premium paying term.
  • In some plans, the guaranteed returns get added to the policy from the second year onwards, while in some, it may start at a later date.
  • Some of these plans are similar to money-back plans wherein there is a regular flow of income at regular intervals, while in some, there could be a lump sum payment on maturity.
  • Further, in a few of them, payouts happen after maturity for a certain number of years.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

Guaranteed traditional plans gets complex

The offering could be anything, but hidden beneath the complex workings of insurance plans is the payout structure. There has been a vast change in the traditional life insurance which earlier represented the endowment and money back kind of policies. The terms and conditions of the payout are so complicated that understanding it may not be an easy task for many.

The premium, for a specific age and sum assured (SA), is paid for a limited period (say, 5 years) while the term of the plan is 15 years. Based on these parameters, the insurer will calculate a guaranteed maturity value and depending on that, will start paying a certain percentage of it as guaranteed cash amount starting the non-premium payment period (from the 6th year) till the end of the term.

Similarly, there could be a guaranteed plan in which every 5th year, 125 per cent of the premium is paid out, while the GA is added to policy each year, to be had on maturity along with SA (less amount paid every fifth year). In few other guarantee plans, the payout could be entirely on maturity, including GA and SA.

Contrary to the past when these policies were simple and straightforward, the newer versions are very complicated to understand. With guarantees thrown in, such plans may appear attractive, but the actual return in them is around 4 per cent per annum, or even lower.

Tip for insurance buyers:

One must not buy a life insurance for the purpose of saving tax. Traditional plans are inflexible and lock in funds for 15-30 years with a return of 2 to 5 per cent. so people must avoid buying traditional insurance plans, with or without inbuilt guarantees. Rather they should get a pure term insurance plan and park their savings in Public Provident Fund (PPF) or Equity Linked Savings Scheme (ELSS) for meeting long-term goals, while keeping the tax the tax liability at bay.

The Best Health Insurance Plan for the Diabetic Patients

In India, diabetes is one of the major health issues. Every 1 person out of 5 is suffering from diabetes. And this number is increasing day-by-day. The number of diabetic patients in year 1980 was 108 million and this number goes up to 422 million in the year 2014. It is being predicted that diabetes will become the 7th leading cause of death on a global level till the year 2030.

So, in the case of any emergency related to diabetes, health insurance will take care of you and your family after you. There are various health insurance plans for diabetic patients, so you need to select best out of it.

Unknown facts about Diabetes in India

  • There were approx 69.1 million cases of diabetes in India in the year 2015.
  • It has been predicted that, every 5th diabetic patient in the world will be an Indian by year 2025.
  • Our India is popular as the diabetic capital of the world having a 2nd position in the number of diabetic patients worldwide.
  • The number of death from diabetes in the year 2012 was 1 million.
  • In India, 87 million cases of diabetes by the year 2030 are being predicted by World Health Organization.
  • According to research, 1 out of 5 corporate workers suffers from diabetes or hypertension.
  • In India, a number of male diabetic patients is 13% higher that of the female.
  • The risk of contracting diabetes is 50% more for the people between ages of 60-70 years.

Age-wise Claim for DiabetesAge wiseState-wise Claim for DiabetesState wiseAfter a look at all these charts, you can see how this issue of diabetes is capturing the whole India. Now, it becomes must buy a health insurance plan for diabetic patients.

There are many companies in India which cover diabetes as a pre-existing disease in their health insurance policy which also includes specific health issues arising due to diabetes. But, maximum people are not aware of these policies.

Critical Illness treatments now in Installment/EMI form will be a mode of relief

Types of Diabetes and their policies

 1st Type– It is the type of diabetes in which the body stops producing insulin, which is very much needed to convert glucose into energy, and is known as insulin-dependent diabetes. In this type, the patient needs regular shots of insulin.

There is no policy which covers this type of diabetes.

  • 2nd Type In this type of diabetes the level of sugar (glucose) in the body goes higher than the normal and the cells of our body becomes insulin resistance and the amount of insulin produced is not sufficient.

Policies covering this type– Star Health Diabetes Safe, National Insurance Varishta Mediclaim, Energy Plan by Apollo Munich Health Insurance Plan.

  • 3rd Type– it is the type of diabetes in which opposition of insulin occurs in the brain and it is the type of Alzheimer disease.

Gestational diabetes

This occurs in a female at the time of pregnancy and if not cured, it gets converted to the type 2 diabetes.

Policies covering this type– Maternity benefit of health insurance policy cover this type of diabetes.

Premium amount for Diabetes health insurance plans

The premium amount for a diabetic patient is mostly higher than the normal premium amount because the risk is also high. The diabetic patient gets a higher chance of claim due to the frequent medical attention. So, always go for that policy which gives you maximum benefit at minimum cost.

Minimum premium amount of different policies (A person of 45 years of age and cover of 3 lakhs)Name of the policy newWaiting Period of the Plans

Each and every health insurance policy has its waiting period for which you can claim for your pre-existing disease. Waiting period varies from company to company, but mostly it is of 4 years. You should go for the policy with a minimum waiting period.

Protect a Lady by Gifting Health protection

Sum assured

Your conclusion to the sum assured should be based on your diabetes condition age, city, hospitalization requirement and the inflation rate of health care. Choose the best which offers you a wide range of sum assured.

Age & Cover for the disease arising due to Diabetes

Always inspect before your buy. Check the age limit of your health insurance policy. It should be flexible because flexibility in the age limit will allow you to get insured at advanced age also. It will also cover problems arising in other body parts due to diabetes.

Points to be remembered

Always try to buy health insurance as early as possible, especially when you have the medical history of diabetes.

  • Always get a specialized and specific plan which covers you from the inception of the policy.
  • Terms and conditions related to the policy are very important to understand.
  • In India, the number of insurance companies covering diabetes is very less but there are sufficient plans to choose the best one. Think, understand, insure, and then buy.