Tag: insurance

Kotak Mahindra Life Insurance declares 20% higher bonus for over 7 lakh policyholders

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra Life Insurance has announced a bonus of ₹1,007 crore for more than 7 lakh eligible policyholders for FY 2023-24. This is the 23rd consecutive year that Kotak Life has declared a bonus on participating products.

The bonus declared is 20% higher than the bonus amount of FY2022-23.

Participating plans provide policyholders with profit-sharing benefits in the form of bonuses.

This announcement follows a recent trend among major life insurance companies in India declaring substantial bonuses.

Just days earlier, on May 15, HDFC Life announced its highest-ever bonus of ₹3,722 crore, benefiting over 22.23 lakh policyholders.

Last month, Bajaj Allianz Life declared its all-time high bonus of ₹1,383 crore for over 11.66 lakh policyholders for FY 2023-24.

Understanding life insurance bonuses

Life insurance bonuses are additional amounts declared by life insurance companies on participating policies.

These bonuses are essentially a share of the profits made by the insurer, distributed among policyholders.

They come in various forms, such as reversionary bonuses, which are added to the policy’s sum assured, and terminal bonuses, which are paid out at the end of the policy term or on the death of the policyholder.

Who benefits?

Policyholders with participating plans benefit from these bonuses.

These plans allow them to share in the company’s profits, thereby enhancing the value of their insurance cover over time.

The declared bonuses increase the policy’s maturity or death benefit.

This profit-sharing aspect makes participating plans a popular choice for those looking for both protection and a steady accumulation of wealth.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Life announces unprecedented ₹3,722 crore bonus: What it means for you

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Life on Wednesday (May 15) announced its highest-ever bonus of ₹3,722 crore on participating plans. This bonus will benefit over 22.23 lakh policyholders.

Participating or par plans are a distinctive type of life insurance policy that provide policyholders with profit-sharing benefits in the form of bonuses.

These plans allow policyholders to share in the company’s profits, reflecting a mutual partnership between the insurer and policyholders.

Out of the total bonus amount, ₹2,798 crore will be disbursed to policies in the current financial year, either as maturity bonuses or cash bonuses.

The remaining bonus will be payable in the future upon policy maturity, death or surrender.

Vibha Padalkar, MD & CEO, HDFC Life said, “Life insurance policies are designed for the long term, and bonuses serve as a reward for the loyalty of policyholders throughout the policy term.”

Understanding life insurance bonus

Some life insurance policies allocate a share of their profits as a bonus and pay to the insured person when they reach certain milestones.

Just like employees receive bonus as extra amount or reward over and above their base salary, a similar concept exists in the realm of life insurance companies.

Firms make bonus payments to their policyholders on a yearly basis beyond the basic sum assured they are entitled to.

The bonus is dependent on several factors such as return on company assets, bonuses declared in the previous year, claims filed, expected interest rates in the future and several other estimates.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This is India’s first insurance portfolio management platform: How to open your digital account using it

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SBI General Insurance has recently collaborated with Bima Central, developed by CAMS Insurance Repository. Bima Central is industry’s first policyholder servicing platform that allows customers to aggregate their insurance portfolio through an electronic Insurance Account (eIA).

This platform serves as a centralised hub where individuals can consolidate their insurance policies and access other services too.

It must be noted that it is mandatory for policyholders to hold new insurance policies in electronic format (e-Policy) in an e-Insurance Account (eIA) since April 2024.

Similar to how investors open demat accounts to manage their shares, policyholders need to establish an e-Insurance Account (eIA) to store and access their insurance policies electronically.

With all insurance policies eligible for electronic storage and accessible through an e-insurance account, managing insurance plans becomes more streamlined and efficient.

How does Bima Central benefit policyholders?

Bima Central offers policyholders a single window, integrated access to their aggregated insurance benefits.

This provides a consolidated view of their protection and investment.

Further, customers can gain direct access to their insurance portfolio through the SBI General Insurance mobile app after the recent collaboration.

The platform allows users to add beneficiaries, nominees, and family members too.

How to use Bima Central?

Existing CAMS Insurance Repository users can directly log in to Bima Central using their registered mobile/email/PAN/eIA to access their eIA account and get all the benefits.

Additionally, new users can sign up for an eIA account on Bima Central free of cost.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

General insurance premium grows 16% in April, ICICI Lombard and Star Health shine

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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General insurance companies displayed strong growth in premium collection for the month of April. The general insurance industry (comprising general insurers and standalone health insurers) saw its premium collection grow by 16%, while standalone health insurers experienced 27% growth.

ICICI Lombard: Strong performance on a high base

In April 2024, ICICI Lombard’s premium collection grew by 23% year-on-year.

Despite achieving a 17% growth in premium collection in April 2023, ICICI Lombard managed to sustain its growth momentum, indicating a healthy pace of growth despite having a strong base.

Additionally, ICICI Lombard’s market share increased by 63 basis points in April 2024 compared to the previous year.

New India Assurance: Premium growth lags despite a favourable base

New India Assurance recorded a 10% growth in premium collection for April 2024.

Despite a favorable base, the company only managed to achieve a 4% growth in premium for April 2024.

The larger disappointment for New India Assurance was on the market share front, as the company lost market share by 200 basis points or 2% in April 2024 compared to the previous year.

Go Digit General Insurance

Ahead of its public issue launch, Go Digit General Insurance experienced an 8% growth in premium collection for April 2024, a decline from the 40% growth seen in April 2023.

Additionally, the company’s market share dipped by 22 basis points in April 2024 compared to April 2023.

Star Health Insurance: Focus resumes on premium growth

Despite a strong base of 25% growth in premium for April 2023, Star Health managed to grow its premium by 23% in April 2024.

In recent months, the gap between the growth in premium for the Standalone Health Insurance Industry’s average premium growth and Star Health has been around 8-10%, which narrowed to 4% in April.

Unlisted large players also demonstrated notable growth:

• Bajaj Allianz General Insurance recorded a 45% increase in premium collection.
• HDFC Ergo witnessed a 20% growth in premium.
• SBI General Insurance experienced a growth of 45% in premium for April 2024.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Life insurance April premiums look better than what they are. Here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Life insurance industry posted a robust business performance in April. The total premium collection for the life insurance industry (private + LIC) surged by 61% compared to the same month last year.

This strong growth was primarily driven by a 113% increase in premium collection by the Life Insurance Corporation of India (LIC) in April 2024.

Private players also saw growth, with their premium collection rising by 17% in April 2024.

While the business performance appears strong when viewed in isolation for April, considering the favorable base effect from April 2023 alters the narrative for many life insurance companies, revealing weaker aspects.

For HDFC Life Insurance, premium collection grew by only 4% in April 2024, which is notably weak.

Furthermore, when contextualised with the base effect, the weakness becomes more pronounced.

HDFC Life’s premium collection in April 2024 increased by 4% against a favorable base of just 0.5% growth in April 2023, resulting in a net premium collection growth in the low single digits.

Annualised Premium Equivalent (APE) for HDFC Life grew by 21%, with a base growth of 5%.

Additionally, on the Retail APE side, HDFC Life recorded a 30% premium increase in April 2024 with a base growth of 7%. While HDFC Life experienced weak premium collection growth, it showed strong APE and Retail APE growth.

Similarly, for ICICI Prudential Life Insurance, total premium collection in April 2024 grew by 28%, but April 2023 saw a 17% contraction in premium collection. Factoring in the base effect, the net premium collection growth for ICICI Prudential Life was only in the mid-single digits.

Total APE growth for ICICI Prudential Life in April 2024 stood at 36%, with a favorable base of negative 22%. Retail APE growth for the company was a robust 72% in April 2024 over a contraction of 31% in April 2023.

Despite the favorable base in Retail APE, April 2024 still saw strong growth. For ICICI Prudential Life, April exhibited weak premium and APE growth but strong Retail APE growth.

For Max Life Insurance, total premium collection in April 2024 grew by 41% on a flat base, indicating a net premium collection increase of over 20%.

Total APE and Retail APE grew at 35% and 32%, respectively, against a base contraction of negative 1% and negative 4%. April proved to be an all-round positive month for Max Life Insurance, with strong premium and APE growth along with solid Retail APE growth.

SBI Life Insurance saw premium collection grow by 26% in April 2024 compared to 8% growth in April 2023, resulting in an average net premium growth of 17%.

Total and Retail APE premium collections for SBI Life were at 21% and 20%, respectively, against a base of negative 7% and negative 5%. April 2024 represented a strong month for premium growth for SBI Life, with weak growth seen in Total and Retail APE.

Finally, LIC exhibited a premium collection growth of 113% in April 2024. Despite facing an extremely supportive base of negative 51% in April 2023, the net premium growth for LIC exceeded 30%.

LIC’s Total APE in April 2024 grew by 31%, albeit on a weak base of negative 21%, while its Retail APE increased by 18% in April 2024 against a base that contracted by 5%. April 2024 was characterised by very strong premium growth for LIC, with weak total and retail APE growth.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC ERGO withdraws three variants of this health insurance policy — what happens to existing users

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC ERGO General Insurance on Wednesday (May 8) announced the withdrawal of three variants of its health insurance product, my:health Suraksha. Effective immediately, customers will no longer be able to purchase or renew the my:health Suraksha Gold, my:health Suraksha Platinum, and my:health Suraksha Silver plans.

Currently, HDFC ERGO offers four variants of the my:health Suraksha health insurance policy, with Koti Suraksha remaining unaffected by the recent decision.

Customers holding the discontinued health insurance plans will be migrated to alternative policies offered by the insurer.

A spokesperson from HDFC ERGO said, “At HDFC ERGO, we have multiple products to meet the different needs of the customers.”

Aligned with regulatory guidelines set forth by the Insurance Regulatory and Development Authority of India (IRDAI), HDFC ERGO said it will provide alternative options like Optima Secure and Arogya Sanjeevani to all existing policyholders, including senior citizens, in accordance with its underwriting guidelines.

Further, the spokesperson outlined the features of Optima Restore, the policy that will be offered to existing my:health Suraksha policyholders on withdrawal of the current plan.

Optima Restore offers benefits including no sub-limit on room rent, a restore benefit that adds 100% of the basic sum insured upon complete or partial utilisation, a 2x multiplier benefit that doubles coverage after two claim-free years, and a protector rider add-on that indemnifies non-payable expenses up to the sum insured at an additional premium.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Must-have health insurance policy types for people in their twenties and thirties

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Health insurance is an essential component of financial planning, especially for those in their twenties and thirties. Recognising the significance of adequate health coverage during these pivotal life stages, experts emphasise the importance of understanding and investing in various insurance policies tailored to address evolving healthcare needs.

Here are some of the must-have health insurance policies for individuals in their twenties and thirties (Compiled by of Kalpesh Chavan, Senior Vice President & Product Head of Elephant.in):

Basic health insurance

Considered a fundamental component of any health insurance portfolio, basic health insurance policies offer coverage for hospitalisation expenses, surgical procedures, medical tests, and routine doctor consultations.

Acting as a safety net, these policies provide financial protection against unforeseen accidents or illnesses.

Critical illness insurance

As individuals transition into their thirties, the risk of developing severe health conditions escalates.

This specialised policy disburses a lump-sum payment upon the diagnosis of critical illnesses such as cancer, heart attacks, strokes, or organ failure.

It serves to complement basic health insurance by covering expenses such as rehabilitation, specialised treatments, or adjustments necessitated by the illness.

Disability insurance

Despite its often overlooked status, disability insurance emerges as a crucial safeguard for individuals reliant on their incomes to sustain themselves and their families.

In the event of a disabling injury or illness that impedes one’s ability to work and earn, this policy provides financial protection by replacing a portion of lost income.

It covers living expenses, medical bills, and rehabilitation costs.

Dental and vision coverage

While basic health insurance typically provides limited coverage for dental and vision care, standalone dental and vision insurance policies cater specifically to these essential aspects of well-being.

Dental coverage offsets the costs of routine check-ups, cleanings, and treatments like fillings or root canals, while vision coverage covers expenses related to eye exams, prescription glasses, contact lenses, and corrective surgeries.

Long-term care insurance

While often associated with later stages of life, long-term care insurance warrants consideration even in one’s twenties and thirties.

This policy extends coverage for long-term care services necessitated by chronic illnesses, disabilities, or cognitive impairments.

It encompasses expenses related to nursing homes, assisted living facilities, in-home care, and other services not covered by basic health insurance or Medicare.

Maternity coverage

For individuals contemplating starting a family during their twenties and thirties, maternity coverage emerges as a critical component of health insurance planning.

This coverage encompasses prenatal care, childbirth, and postnatal care expenses.

Additional benefits may include newborn care, vaccinations, and lactation support.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

1 in 2 users opt for ‘pay as you drive’ insurance option in FY24: How this feature works

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There has been a shift in the preferences of customers purchasing car or motor insurance in the 2023-24 fiscal, according to recent data analysis by Policybazaar, an online insurance marketplace.

Approximately 30%-50% of total customers have opted for pay-as-you-drive (PAYD) plans in FY24, the report said.

Notably, three out of four customers have shown a preference for renewing their PAYD policies. This trend aligns with 45% growth in PAYD bookings when comparing the current quarter to the previous one, Policybazaar said.

Additionally, 10-15% of policyholders have chosen to enhance their PAYD plans by opting for top-up services, allowing them to extend their distance slab limits.

The top make-models contributing to 65% of PAYD bookings include popular vehicles such as Maruti Baleno, Swift, and Hyundai i20.

Policyholders cite several reasons for choosing PAYD plans, including limited usage for short-distance travels (60-70%), ownership of multiple cars (15-25%), and remote work arrangements (10-15%), Policybazaar said.

Interestingly, the share of PAYD in comprehensive bookings remains consistent at 34-35% across Tier-1, Tier-2, and Tier-3 cities.

Moreover, a significant portion (65%) of PAYD bookings in Tier 2 and Tier 3 cities originate from states such as Uttar Pradesh, Jharkhand, and Telangana.

Among different slabs in PAYD plans, the 5,000-6,000 km option emerges as the most popular, chosen by 45% of policyholders, followed by 2,000-4,000 km (20%), 8,000-10,000 km (20%), and 6,000-8,000 KM (15%).

So, what exactly is ‘pay-as-you-drive’ insurance option?

PAYD, or ‘pay-as-you-drive’ insurance, allows customers to pay premiums based on the kilometres driven by the insured vehicle rather than a fixed yearly rate.

Under this scheme, customers pre-declare their vehicle usage for one year.

How does PAYD insurance work?

Customers declare the number of kilometres the insured car will cover in the policy period, with premiums depending on the declared distance.

Before policy expiry, customers must provide the odometer reading.

Based on the distance driven, they receive the policy benefits.

If a claim is raised, the vehicle should be within the declared distance. If so, claims are settled similarly to traditional insurance policies.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Allianz Life Insurance declares all-time high bonus of ₹1,383 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private life insurer Bajaj Allianz Life has announced its all-time high bonus of ₹1,383 crore for the financial year 2023-2024 (FY24) for over 11.66 lakh policyholders.

Policyholders with traditional participating (with-profit) policies are eligible to receive this bonus, which is declared from the surplus generated under the participating (with-profits) funds, the insurer said.

All participating policies in force as on March 31, 2024, are eligible to receive this bonus.

Policyholders of participating products like Bajaj Allianz Life Flexi Income Goal, Bajaj Allianz Elite Assure, Bajaj Allianz Life Ace, among others, stand to benefit from the bonus declared.

The FY24 bonus marks a 15% increase over FY23 bonus, which stood at ₹1,201 crore, the insurer said.

Decoding bonus in insurance

Some life insurance policies allocate a share of their profits as a bonus and pay to the insured person when they reach certain milestones.

Put simply, just like employees receive bonus as extra amount or reward over and above their base salary, a similar concept exists in the realm of life insurance companies.

Firms make bonus payments to their policyholders on a yearly basis beyond the basic sum assured they are entitled to.

How is it determined?

The bonus is dependent on several factors such as return on company assets, bonuses declared in the previous year, claims filed, expected interest rates in the future and several other estimates.

How is life insurance bonus calculated?

Bonus is either computed as a percentage of sum assured or as a certain amount per ₹1,000 of sum assured.

For example, if the bonus is ₹50 per ₹1,000 for a policy with a sum assured of ₹1 lakh, the annual bonus will be ₹5,000.

Are all policies eligible for bonuses?

Not all life insurance policies are entitled to receive the bonus amount.

Only participating (with-profit) policies qualify for the bonus and the policyholders who hold a participating life insurance policy will qualify for the bonus payout.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bima Vistaar likely to offer annual premium of ₹1,500 per policy — what more is on offer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Insurance Regulatory and Development Authority of India (IRDAI) has proposed the pricing structure for Bima Vistaar, an innovative composite insurance product tailored for rural India.

According to industry officials who attended Bima Manthan, an event organised by the regulator on April 25 and 26, individuals will be able to secure coverage under Bima Vistaar for an annual premium of ₹1,500 per policy.

Alternatively, families may opt for a family floater policy priced at ₹2,420.

However, the insurance regulator is yet to issue any official circular on this.

As of now, the proposal outlines an all-in-one insurance solution aimed at providing a basic social safety net cover.

This initiative will offer a combination of insurance categories including life cover (₹820), health cover (₹500), personal accident cover (₹100), and property cover (₹80).

The sum assured for life, personal accident, and property covers will be fixed at ₹2 lakh each.

Additionally, the health cover, known as ‘hospi cash,’ will offer a sum assured of ₹500 for 10 days, with a maximum amount of ₹5,000 available without producing bills or documents.

Families will be able opt for a comprehensive coverage plan by choosing the family floater option, which will extend coverage to additional family members for an extra premium.

Claims under the property cover will be settled on a parametric basis, ensuring timely payouts based on the magnitude of the event.

Agents selling Bima Vistaar policies will receive a commission of 10%.

Sharad Mathur, Managing Director & Chief Executive Officer of Universal Sompo General Insurance, expressed optimism regarding Bima Vistaar’s potential to revolutionise insurance accessibility in India.

He emphasised the product’s affordability and comprehensive coverage, particularly targeting rural masses.

Mathur highlighted the integration of advanced technologies like artificial intelligence (AI) and the Bima Sugam digital portal, which is expected to streamline claims processing and enhance customer experience.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow