Blogs That Matters

Insurance Mis-selling in India!
  • 08 Mar 2023
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In recent years, the issue of insurance misselling has become a growing concern in India. Insurance misselling is the practice of misleading or misrepresenting insurance products to consumers, leading to the purchase of unsuitable or unnecessary insurance policies. This unethical practice has a detrimental effect on consumers, particularly in terms of their financial well-being.

One of the most prevalent forms of insurance misselling in India is the misrepresentation of policy terms. Insurers often use complex language and jargon in their policies, making it difficult for consumers to understand the terms and conditions. This can lead to confusion and misunderstandings, and in some cases, consumers may end up purchasing policies that do not meet their needs.

Another common form of insurance misselling is the charging of hidden fees. Insurers may include various hidden charges in the policy, such as administrative fees, policy issuance fees, and agent commissions. Consumers may not be aware of these charges when purchasing the policy, which can significantly increase the cost of the policy over time.

Selling policies that are unsuitable for the customer's needs is also a major issue in the insurance industry. Insurers may push policies to consumers that do not align with their financial goals, risk tolerance, or other requirements. This can lead to the purchase of policies that provide little to no benefit, leaving the consumer with unnecessary expenses and frustration.

The impact of insurance misselling on consumers in India can be devastating. Consumers may end up with financial losses or inadequate coverage, and may also lose trust in the insurance industry. Moreover, such practices can discourage people from purchasing insurance, which can have far-reaching implications for society as a whole.

As a society, it is important that we take steps to address the issue of insurance misselling in India. Consumers should educate themselves about the policies they are considering and seek professional advice when needed. Regulators should also take strict action against insurers who engage in unethical practices, and should work to promote transparency and fairness in the insurance industry.

In conclusion, insurance misselling is a serious issue in India that affects consumers' financial well-being and trust in the insurance industry. As responsible citizens, we should be aware of the various forms of insurance misselling and take steps to protect ourselves and others from such practices. With the right measures in place, we can ensure that the insurance industry operates fairly and ethically, and that consumers can make informed decisions about their insurance needs.

Case studies of Insurance Mis-selling
  • 07 Mar 2023
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Insurance misselling occurs when insurance companies use deceptive or unfair practices to sell their policies to customers. In India, there have been several cases of insurance misselling over the years. Here are some recent examples:

ICICI Prudential Life Insurance - In 2020, ICICI Prudential Life Insurance was fined Rs 1 crore by the Insurance Regulatory and Development Authority of India (IRDAI) for misselling policies to customers. The insurer was found to have violated several regulations, including offering free insurance without the customers’ consent and selling policies to people who did not need them.

HDFC Life Insurance - In 2019, HDFC Life Insurance was fined Rs 1.5 crore by the IRDAI for misselling policies to customers. The insurer was found to have used misleading advertisements and unfair business practices to sell policies to people. HDFC Life Insurance was also accused of not disclosing the full details of their policies to customers.

Bharti AXA Life Insurance - In 2018, Bharti AXA Life Insurance was fined Rs 5 lakh by the IRDAI for misselling policies to customers. The insurer was found to have misled customers by offering guaranteed returns on their policies, which was not actually the case. Bharti AXA Life Insurance was also accused of not disclosing the risks associated with their policies to customers.

The tactics used by insurers to mislead customers include:

  • Offering free insurance or other benefits without the customers’ consent.
  • Misleading advertisements that promise unrealistic returns or benefits.
  • Not disclosing the full details of their policies to customers.
  • Using high-pressure sales tactics to force customers into buying policies.

The impact of misselling on policyholders can be significant. They may end up with policies that they do not need or cannot afford. They may also be unaware of the risks associated with their policies, which can lead to financial losses in the future. To address these issues, the IRDAI has introduced several regulations to protect customers from misselling. These include guidelines on advertisements, the disclosure of policy details, and the training of insurance agents. The IRDAI also conducts regular inspections to ensure that insurers comply with these regulations.

In conclusion, insurance misselling is a serious problem in India, and it can have a significant impact on policyholders. It is important for insurers to follow regulations and ethical practices when selling policies to customers. The IRDAI plays a crucial role in monitoring and regulating the insurance industry to ensure that customers are protected from misselling.

The future of insurance fraud prevention in India
  • 06 Mar 2023
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The insurance industry in India has been plagued by fraud for many years, with both traditional and digital scams causing losses to insurers and policyholders alike. However, with the rapid advancement of technology, new opportunities have emerged for insurers to prevent and detect fraud more effectively. In this blog, we will discuss the future of insurance fraud prevention in India, focusing on the emerging technologies and trends that can help prevent insurance cheating and cyber fraud, such as artificial intelligence and blockchain. We will also discuss the challenges and opportunities facing the insurance industry in the fight against fraud.

The Importance of Insurance Fraud Prevention in India:

Insurance fraud is a significant challenge for the insurance industry in India. It has an adverse impact on the financial stability of insurers and the trust of policyholders. The Insurance Act, 1938, and the IRDAI have implemented various rules, regulations, circulars, and guidelines to prevent insurance fraud. However, with the proliferation of digital channels and the increasing sophistication of fraudsters, it has become more challenging to detect and prevent fraud.

Emerging Technologies for Insurance Fraud Prevention:

Artificial Intelligence (AI) and Machine Learning (ML) have become popular tools in the insurance industry for detecting fraud. AI algorithms can analyze vast amounts of data, including policyholder information, claims data, and social media activity, to identify potential fraud patterns. ML models can use historical data to learn patterns of fraudulent behavior and identify new fraud cases automatically. Blockchain technology has also gained attention in the insurance industry for fraud prevention.

Blockchain technology is a distributed ledger that records all transactions in a secure and transparent manner. The decentralized nature of blockchain makes it difficult for fraudsters to manipulate data, providing greater transparency and security for insurers and policyholders.

Challenges and Opportunities in the Fight Against Fraud:

The use of AI and blockchain in fraud prevention comes with both challenges and opportunities. The adoption of new technologies requires significant investment in infrastructure, technology, and training. The complexity of these technologies also requires a skilled workforce capable of implementing and maintaining these systems.

Moreover, while AI and blockchain can help detect and prevent fraud, they cannot replace human judgment entirely. The success of these technologies in fraud prevention will depend on the quality of data input, the accuracy of algorithms, and the ability of insurance personnel to interpret and act on the results.

Despite these challenges, the adoption of new technologies presents a significant opportunity for insurers to improve their fraud prevention capabilities. By investing in advanced technologies and collaborating with regulators and law enforcement agencies, insurers can enhance their ability to detect and prevent fraud, providing greater trust and transparency for policyholders.

Conclusion: Insurance fraud is a significant problem in India, but emerging technologies offer new opportunities for insurers to combat it more effectively. AI and blockchain technologies can provide greater transparency, security, and efficiency in the detection and prevention of insurance fraud. However, the adoption of these technologies requires significant investment and the development of new skill sets. To succeed in the fight against fraud, insurers must be willing to embrace these technologies, collaborate with regulators and law enforcement agencies, and maintain high levels of ethical standards and transparency in their operations.

How insurance companies can protect their customers from Insurance & Cyber fraud
  • 05 Mar 2023
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Insurance companies play a vital role in safeguarding their customers' interests against cyber fraud. With the increasing prevalence of cybercrime, it is imperative that insurance companies take proactive steps to protect their customers from online fraud. In this blog, we will discuss some tips and best practices for insurance companies to protect their customers from cyber fraud.

Educating Customers on How to Identify and Report Fraud: One of the most effective ways insurance companies can protect their customers from cyber fraud is by educating them on how to identify and report fraud. Insurance companies can provide online resources and educational materials that teach customers about the different types of cyber fraud, such as phishing scams, identity theft, and ransomware attacks. These resources should also include information on how customers can report fraudulent activity to their insurance provider and law enforcement agencies.

Implementing Security Measures to Prevent Data Breaches: Another critical step that insurance companies can take to protect their customers from cyber fraud is implementing security measures to prevent data breaches. Insurance companies should ensure that their systems and software are up-to-date and have the latest security patches installed. They should also implement firewalls, intrusion detection systems, and other security measures to protect against cyber attacks.

Additionally, insurance companies should ensure that they have strong password policies in place and that employees are trained on how to create and manage secure passwords. Companies should also consider implementing multi-factor authentication to provide an extra layer of security for customer accounts.

Conducting Regular Audits and Assessments of Systems: To maintain a strong defense against cyber fraud, insurance companies should conduct regular audits and assessments of their systems. This can include penetration testing to identify vulnerabilities in their systems, vulnerability scans to identify weaknesses in their software, and risk assessments to evaluate potential threats.

Insurance companies should also conduct regular audits of their policies and procedures to ensure that they are in compliance with regulatory requirements and industry best practices. Companies should also periodically review their security incident response plans to ensure that they are up-to-date and effective in responding to cyber attacks.

Conclusion: In conclusion, insurance companies have a significant responsibility to protect their customers from cyber fraud. By implementing security measures, educating customers, and conducting regular audits and assessments, companies can reduce the risk of data breaches and other cyber attacks. Insurance companies should also collaborate with regulatory bodies and law enforcement agencies to share information and stay abreast of the latest cyber threats. By taking these proactive steps, insurance companies can enhance their reputation, build trust with their customers, and ensure that their customers are protected from cyber fraud.

Why Term plan is necessary!
  • 05 Mar 2023
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Term plan is a type of life insurance policy that provides coverage for a specific period of time. It is a simple and cost-effective way to ensure financial security for your loved ones in case of any unfortunate event. While many people may think that term plans are not necessary, the truth is that they are a crucial investment for anyone who has dependents.

Here are some reasons why a term plan is required:

Protection for your loved ones: A term plan ensures that your loved ones are financially secure in case of any unfortunate event. It provides a lump sum amount to your family in case of your untimely death. This can help them pay off any outstanding debts, mortgages, or other expenses, and continue to maintain their lifestyle.

Affordable premiums: Term plans are known for their affordable premiums compared to other life insurance policies. This makes it easier for individuals with tight budgets to invest in a policy that can offer adequate coverage.

Tax benefits: Term plans also offer tax benefits under Section 80C of the Income Tax Act, 1961. Premiums paid towards the policy are deductible from taxable income, which can help you save on taxes.

Flexibility: Term plans offer a lot of flexibility in terms of policy duration, coverage amount, and premium payment options. You can choose the duration of the policy based on your needs and the age of your dependents. Additionally, you can also choose the coverage amount that would be sufficient for your family in case of your untimely death.

Peace of mind: Having a term plan in place can give you peace of mind that your loved ones will be taken care of even if you are not around. It can help you live life without the fear of leaving your family in a difficult financial situation.

In conclusion, a term plan is a crucial investment for anyone who has dependents. It provides financial security to your loved ones in case of your untimely death and ensures that they can continue to maintain their lifestyle. With affordable premiums, tax benefits, and flexibility, a term plan is an investment that can give you peace of mind and protect your family's financial future.

Accidental Vehicle Claim
  • 03 Mar 2023
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Accidents involving motor vehicles are common occurrences, and they can cause serious injuries or even death. In the event of such an accident, the victim or the victim's family can file a claim for compensation under the Motor Vehicles Act, 1988. Here is an overview of the process for filing an accidental motor vehicle claim:

Inform the police: The first step is to inform the police immediately after the accident. The police will file an accident report, which is a crucial document for filing the claim. Notify the insurance company: The next step is to inform the insurance company about the accident. The insurance company will send a surveyor to assess the damage and estimate the compensation.

Submit the required documents: The victim or the victim's family will need to submit certain documents to the insurance company, such as the accident report filed by the police, the vehicle registration certificate, the insurance policy, and medical bills. Wait for the claim to be processed: The insurance company will process the claim based on the surveyor's report and the submitted documents. If the claim is approved, the compensation will be paid out to the victim or the victim's family.

Seek legal assistance: If the claim is denied or the compensation offered is insufficient, the victim or the victim's family can seek legal assistance to pursue the claim. It is important to note that the Motor Vehicles Act, 1988 mandates that all motor vehicles be insured against third-party liability. This means that if a motor vehicle is involved in an accident that results in injury or death to a third party, the insurance company is liable to pay compensation to the victim or the victim's family. It is also recommended to opt for a comprehensive insurance policy that covers damages to the vehicle as well as personal injury.

In conclusion, filing an accidental motor vehicle claim can be a complicated process, but with the help of an experienced lawyer and proper documentation, victims or their families can receive the compensation they are entitled to.

How to File FIR in Insurance Cheating Matter
  • 01 Mar 2023
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If you believe that you have been a victim of insurance fraud or cheating, you can file a criminal complaint with the police. Here are the steps to follow:

Gather evidence: Collect all relevant documents such as policy documents, receipts, emails, and any other correspondence related to the insurance policy.

Contact the police: Visit your local police station and explain the situation. Provide all the relevant evidence you have collected.

File a complaint: The police will register a First Information Report (FIR) and investigate the matter. Make sure to get a copy of the FIR.

Cooperate with the police: The police may require further information or evidence during the investigation. Cooperate with them and provide all the necessary support.

Follow-up: Keep in touch with the police and follow-up on the progress of the investigation. If required, provide any additional evidence or information that you may have.

It is important to note that filing a criminal complaint is a serious matter and should not be taken lightly. Make sure you have enough evidence to support your claim and that you are not making false allegations. It is also advisable to seek legal advice before filing a complaint.

Cyber Fraud :- In Insurance sector & Process
  • 28 Feb 2023
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Cyber fraud refers to the use of the internet or technology to commit fraudulent activities. Insurance fraud can also be committed through cyber means, such as fake websites, phishing emails, or fake social media profiles. Cyber fraud in insurance can take many forms, including misrepresenting information on a claim, creating fake insurance policies, or hacking into insurance company systems to steal sensitive information. In India, cyber fraud is a criminal offense under the Information Technology Act, 2000.

The punishment for cyber fraud varies depending on the severity of the offense. It can range from imprisonment for up to three years, to a fine of up to five lakh rupees, or both. If you are a victim of cyber fraud in insurance, the first step is to file a complaint with the police. You can file an FIR (First Information Report) at your nearest police station or through the online portal of the police department. It is essential to provide all the necessary details and evidence, including screenshots of the fake website or emails, bank statements, and any other relevant documents.

After filing the FIR, the police will investigate the matter, and if they find any evidence of cyber fraud, they will arrest the perpetrators and initiate legal proceedings against them. In some cases, the victim may also be required to appear in court and provide testimony.

It is essential to be vigilant while dealing with insurance matters online and to always verify the authenticity of the website or email before providing any personal information. If you suspect that you have been a victim of cyber fraud, it is crucial to report it to the authorities immediately to prevent further damage.

"Your Right to Register an FIR for Crimes Committed Against You"
  • 25 Feb 2023
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In 2018, the Supreme Court of India gave a landmark constitutional judgment in the case of Lalita Kumari v. Government of Uttar Pradesh. The judgment clarified the legal position on the registration of First Information Reports (FIRs) in India. The court held that registration of FIR is mandatory under Section 154 of the Code of Criminal Procedure, 1973 (CrPC) if the information discloses the commission of a cognizable offense. A cognizable offense is an offense where the police can arrest without a warrant, and where the investigation can be initiated without the court's permission.

The court also held that if a police officer refuses to register an FIR, the aggrieved person can approach the Superintendent of Police (SP) concerned. If the SP is satisfied that the information discloses a cognizable offense, he can order the registration of an FIR. Moreover, the judgment stated that in cases where there is delay in reporting, the police officer can conduct a preliminary inquiry to determine the veracity of the complaint. If the complaint is found to be true, then an FIR must be registered, and the investigation should be initiated.

The judgment also emphasized that the registration of FIR is a constitutional right of the citizen and that the police cannot refuse to register an FIR merely on the ground that the crime was not committed in their jurisdiction.

In conclusion, the judgment made it clear that FIR registration is mandatory in India if the information discloses the commission of a cognizable offense, and the police cannot refuse to register an FIR on the pretext of conducting a preliminary inquiry or on the ground that the offense was not committed within their jurisdiction.

IRDAI Grievance Referral Mechanism
  • 22 Feb 2023
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In recent years, there have been several changes and initiatives taken by the Insurance Regulatory and Development Authority of India (IRDAI) to improve the grievance redressal mechanism for insurance policyholders in the country. Some of the notable changes are:

Integrated Grievance Management System (IGMS): IRDAI has launched an online platform called IGMS, which enables policyholders to file complaints and grievances related to their insurance policies. The platform also allows them to track the status of their complaints and receive updates on the progress of their case.

Time-bound resolution of complaints: IRDAI has mandated that insurance companies must resolve customer complaints within a specific timeframe. If they fail to do so, they are required to provide an explanation to the policyholder and the regulator. Increased transparency: Insurance companies are now required to provide more information to policyholders regarding their policies, including the terms and conditions, coverage, and exclusions. This information should be presented in a clear and easy-to-understand manner.

Strengthening the ombudsman system: IRDAI has strengthened the ombudsman system for resolving insurance disputes. The ombudsman has been given more powers to settle disputes, and the number of ombudsmen has been increased.

Insurance Self-Network Platform (ISNP): IRDAI has recently launched the ISNP, a platform that enables policyholders to buy and renew insurance policies directly from the insurer, without the involvement of intermediaries.

These initiatives have helped to improve the grievance redressal mechanism for insurance policyholders in India. However, there is still a long way to go, and further improvements are needed to ensure that policyholders can easily and efficiently resolve their grievances with their insurers..

10 Life Insurance Myths That Need to Be Debunked
  • 18 Feb 2023
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Life insurance products are important for individuals to secure their financial future by providing for certainties in life such as children's education or marriage, retirement, and loss of future income due to death, disease, or disablement of the breadwinner. However, due to myths surrounding life insurance, its importance is often misunderstood. This article aims to debunk some of the most common life insurance myths and to provide clear and accurate information to help individuals make sound decisions. Insurance is a sound risk management decision that protects against risks related to mortality, morbidity, longevity, market volatility, and financial indiscipline.

Myth 1: Life Insurance is Only Useful After My Death

Fact: Life insurance is a risk management tool that provides coverage for risks related not only to death but also living too long. Advancements in medicine and science have prolonged life expectancy, making it necessary to consider how to manage expenses in retirement. Insurance can help build a corpus for financial independence during retirement, cover exorbitant medical expenses, or build wealth.

Myth 2: My Company Covers Me, So I Don't Need Another Policy

Fact: Employer-provided insurance only covers individuals while they are employed with the company, and the policy gets terminated once they leave or retire. Employee insurance may be insufficient to cover future needs such as children's education, medical emergencies of aging parents, and rising costs of living. Therefore, it is advisable to supplement employer-provided cover with another insurance policy customized to future needs.

Myth 3: Why Do I Need Insurance If I am Young, Single, and Healthy

Fact: Life insurance should be purchased for the future when it is needed, as it cannot be bought when it is needed. Purchasing life insurance at a young age when premiums are lower can provide high life cover at very low premiums and protect against risks such as student loans or personal loans becoming a burden to parents due to death, disease, or disability. It can also cover health-related and retirement expenses.

Myth 4: Life Insurance is Expensive

Fact: Life insurance premium rates depend on multiple factors and can be adjusted to suit an individual's premium paying capacity. Term insurance provides a large sum assured for a low premium. Individuals can start with a small investment and extend coverage as income and responsibilities grow across different life stages.

Myth 5: Term Insurance is the Only Form of Life Insurance

Fact: Life insurance companies offer multiple products, like traditional savings products, unit-linked, and pension products, to address various risk management needs of varied customer segments.

Myth 6: I am Not Eligible for Insurance Because I am Too Old/I Have a Pre-existing Condition

Fact: Age can mean attractive annuities for certain life insurance products. Pricing of pure risk policies like term insurance is done with average assumptions of health conditions. Higher risks may be priced to accommodate the risk, while certain outliers may not be priceable risks.

Myth 7: I Will Get Better Returns from Investments Other Than Life Insurance

Fact: When making product comparisons, it is essential to consider like-for-like comparisons. Comparing a smartphone by breaking down its components into a phone, camera, hard disk, browser, etc. does not provide a complete picture. Similarly, life insurance products offer multiple features, much like a smartphone, and can be a combination of various features such as mortality risks, morbidity risks, longevity risks, guaranteed returns, market-linked returns, whole life cover, and more. Comparing standalone features may not provide customers with a holistic perspective. However, life insurance policies offer tax-free proceeds, and they typically provide competitive risk-adjusted returns compared to other asset classes in the long run.

Myth 8: ULIP is not a good investment as the costs are high.

Fact: ULIP offers dual benefits of protection and wealth creation in the long run. New-age ULIPs come with considerably low charges, and some even refund mortality/other charges deducted during the policy term on maturity. ULIP offers flexibility and customization, allowing policyholders to switch between debt and equity funds within the same policy as per their evolving needs. This enables investing across different asset classes under a single policy without any tax implications. ULIP also allows tax-free partial cash withdrawal for emergencies after the lock-in period, providing liquidity during the policy term itself. ULIP policies have the unique advantage of being structured as a whole life policy, an accumulation and drawdown product, and fulfilling other customer needs.

Myth 9: The policy can only be in the name of the person who buys it.

Fact: Anyone with a regular source of income and who is not a minor can buy a policy in their name, their spouse's name, or their children's name. Some insurers offer a joint insurance policy to cover both spouses under a single policy. Parents can invest in a child plan to protect their children's future needs, and once the child attains the age of 18 years, the policy vests in their name.

Myth 10: Claim settlement is a hassle, and the insurance company can deny the payout or hold a portion back.

Fact: The primary purpose of an insurance company is to pay claims on policies in existence. However, it is crucial to remember that the insurance policy is a contract of utmost good faith, and the policy is only as valid as the information provided by the customer. Additionally, premiums need to be paid regularly to keep the policy valid. The policy payout includes all types of death, such as illness, accident, old age, war, riots, and natural disasters (like floods, earthquakes), except death by suicide during the first policy year. Insurers are constantly adopting digitization in all their processes, including the claims process, to make it hassle-free. It is advisable to consult an insurance advisor to find a plan that suits your needs, and you can also compare different policies online. Insurance is an essential investment, and the right plan can provide value in the long run. Don't let common myths mislead you.

7 Types of Insurance You Need to Protect Your Business
  • 16 Feb 2023
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From the day an entrepreneur starts a business, they expose themselves to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance in place. One lawsuit or catastrophic event could be enough to wipe out a small business before it even has a chance to get off the ground. Fortunately, businesses have access to a wide range of insurance types to protect them against these dangers. Here are some insurance types that a business must have in place as soon as possible.

1. Professional liability insurance. Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that will be addressed in a customized policy written for a business. Professional indemnity insurance works to protect businesses and individuals who provide consultation and services by compensating them for the full and hefty costs arising from the loss that they have caused to their clients. The coverage provided by the insurance company focuses on the alleged failure of the service delivery by the company, which has led to financial loss due to errors and omissions in the service or consultation. The insurance company handles the confidential data of its clients and their intellectual property to analyze before it provides consultation and required services.

2. Property insurance. Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy. It's very beneficial to disclose every aspect related to your property to the insurer while taking property insurance.

3. Workers' compensation insurance. Employers are legally obligated to take reasonable care to assure that their workplaces are safe. Nevertheless, accidents happen. When they do, workers' compensation insurance provides coverage. Workers' compensation insurance serves two purposes: It assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work, and it usually protects employers from lawsuits by workers injured while working. Workers receive benefits regardless of who was at fault in the accident. If a worker is killed while working, workers' comp (as it is often abbreviated) provides death benefits for the worker’s dependents.

4. Home-based businesses. Many professionals begin their small businesses in their own homes. Unfortunately, homeowners' policies don't cover home-based businesses in the way commercial property insurance does. If you're operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem.

5. Product liability insurance. If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance works to protect a business in such a case, with coverage available to be tailored specifically to a specific type of product.

6. Vehicle insurance. Vehicle insurance, also known as car insurance, motor insurance, or auto insurance, provides financial protection against physical damage or bodily injury resulting from traffic collisions, as well as liability that could arise from incidents involving a vehicle. In addition to covering collisions, vehicle insurance may offer financial protection against theft, damage from weather or natural disasters, and damage sustained from colliding with stationary objects. The specific terms of vehicle insurance policies vary depending on the legal regulations in each region.

7. Business Interruption Insurance: In the event of a disaster or catastrophic event, a business's operations are likely to be interrupted, leading to lost income due to staff's inability to work in the office, manufacture products, or make sales calls. Business interruption insurance is especially important for companies that require a physical location to conduct business, such as retail stores. This type of insurance compensates a business for its lost income during such events. Since the COVID-19 pandemic, business owners have become more aware of the importance of securing their businesses from epidemic-like situations.

Benefits & Features of Personal Accident Insurance
  • 25 Jan 2023
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An accident can occur at any time without any warning, and sometimes it can cause serious harm. Any such untoward incident can have a significant impact on your finances; not only can the treatment be expensive, but if you suffer from any form of disability, it can affect your earning potential. To protect yourself and your family from such a situation, it is paramount that you purchase a personal accident insurance policy.

Personal accident insurance is useful to get financial assistance to you and your family in the event of an accident that leads to death, bodily injuries, temporary total disability, permanent total disability, and permanent partial disability. In the event of death, the insurance company will pay 100% compensation (equal to the sum assured) to the appointed nominee. Also, the insurance companies offer compensation for an accident disability such as loss of speech, limbs, and eyes.

Before, we look at the different aspects of accident insurance; let us look at some alarming statistics related to it.

  • In India, reports suggest that more than 1200 accidents occur every day.
  • As per the Ministry of Road Transport and Highways, in 2017 alone, more than 4.64 lakh accidents were reported and nearly 1.47 lakh people died due to road accidents.
  • In 2018, as per the reports, there was a rise of 1.68% in the number of accidents reported.

Types of Personal Accident Insurance
Personal accident insurance can be broadly classified into two categories – Group Accident Insurance and Individual Accident Insurance.

Group Personal Accident Insurance Typically, business owners and employers buy group personal accident insurance to cover their employees. Depending on the size of the organization, and the number of employees, the insurance companies offer a discount on the premium. A group personal accident policy is an excellent incentive for the employees as it assures them financial safety in the event of any mishap at the workplace.

Individual Personal Accident Insurance As the name suggests, it is taken by an individual and it guards the policyholders against accidental damages. It usually covers accidental death, loss of body parts, and other disabilities resulting from an accident.

Importance of Personal Accident Insurance A lot of people ignore buying accident insurance, mainly because they don’t understand the importance of coverage. But you must think about the safety and security of your family and how can they sustain themselves financially if something untoward happens to you. If you get involved in an accident that leads to death or disability, it will have an impact on your income. If you have any liability like a home loan, it would be difficult for the family members to meet the expenses. Besides, you must also take care of the treatment cost. To avoid putting your family in such a financially distressed situation, you must invest in the best accident insurance.

Personal Accident insurance has many benefits, which are:

Peace of mind and family security In the event of an accident that causes death or renders you disabled; it would have a significant impact on your earning potential. An accident cover will give your family financial protection in the form of accidental compensation and ensure their financial security. The insurance companies pay 100% compensation in the event of death. The family members can use the amount to pay off the liabilities (if any) and maintain the usual lifestyle. Also, it gives you peace of mind knowing that your family will be financially secure even in your absence.

Minimal documentation One of the significant reasons why a lot of people avoid buying insurance is that they believe the process is complicated, and it involves a lot of paper works. However, the truth is that when you purchase a personal accident insurance policy, you need not stress about the documentation. You must provide basic details in the application form, and the insurance company will issue the policy.

No medical tests required This is another significant benefit of an accident insurance policy. Unlike the health insurance policy, where the insurance company requires you to undergo medical tests before issuing the policy, you need not take any tests.

Worldwide coverage Most types of insurance covers have a geographical limitation, which means they do not offer compensation for any casualty that occurs outside India. But, with a personal accident policy, there is no such limitation. You can be assured of getting the benefit irrespective of the location of the accident; you get worldwide coverage.

Easy Claim Process One of the critical things that most insurance buyers look for while buying personal accident insurance is an easy claim process. No matter what type of policy you choose, the claim process is easy. You must submit an application to the insurance company (you can do this either online or offline) and once the insurance company verifies the claim, the claim amount is paid-out.

Ambulance Expenses Most insurance companies cover the ambulance expenses to carry the injured to the hospital from the accident spot. Just as it is essential to give your family financial protection in the event of your demise, you must also think about how they would manage in case of an accident that may lead to disability. You must be prepared for such unexpected situations with accident insurance.

Understanding Claim Denial and Claim Rejection – They are Not the Same!
  • 03 Jan 2023
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At first glance, both claim denial and claim rejection can seem the same exact thing. Many practitioners use the term interchangeably. We are here to tell you how grave a mistake that can be. This ostensibly simple misunderstanding can be detrimental to your practice and push your revenue cycle into disarray. It is extremely imperative to understand the differences between these two terms if you are to stabilize your practices’ cash flows.

The Difference

Claim Denial: Claim denial can be defined as claims that were received and processed by the insurance companies, but a negative determination was made. You simply cannot resubmit such claims; they need to be researched to understand why this particular claim was denied and then write an appropriate appeal for its resubmission. If this claim is resubmitted without an appeal, then the chances are that it will be rejected as a duplicate, thus costing you more time and money.

Claim Rejection: Claim rejection is altogether a different concept. These are claims that do not meet specific data requirements or are formatted inappropriately, which ultimately resulted in their rejection. These medical claims cannot be processed as they were never received by the insurance companies and entered into their computer database. This type of claim can be easily resubmitted if the errors are rectified. The errors can be as simple as a missing alphabet in the name or a transposed digit from the patient’s user I.D

The Reason for Denial and Rejection of Claims
There are 5 major reasons for medical claim rejections, and they are as follows:

  • Missing information, e.g., missing address, pin code, or phone number.
  • Duplicate claim for service – claims that were mistakenly submitted more than once
  • Service is already adjudicated
  • Service is not covered by the payer
  • The limit for filing has expired

Improving claim rejection and denial rates

Whether you are someone who has a dedicated in-house staff, or outsourced coding and billing to a third-party service provider, you need to follow some crucial steps to ensure your claims aren’t rejected or denied. Track and analyze patterns in payer denial and rejections. Once you have categorized these denials and rejections, you can devise a strategy to cut their rates.

  • Train your billing staff on how to handle claim denials appropriately.
  • Schedule routine audits to identify problems before claims are sent to the payer.
  • Work with payers to avoid denials by discussing, revising and eliminating contract requirements.
  • Use billing software or hire a vendor to take care of claim denial and rejections efficiently.

Dealing With Delays in Settlement of Insurance Claims
  • 21 Dec 2022
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Delays in the settlement of insurance claims are common in India. Worse, the insured may have to face a lot of hassles and may be made to run from pillar to post by the insurance company to get the claim settled. So, how does one deal with such unnecessary delays, and is there any provision in the law to penalize the insurance company for causing the unnecessary delay?

In the case of life insurance claims, the insurance company has to ask for the requisite documents within 15 days after the claim is submitted. After the submission of all the documents by the insured or the nominee, the insurance company has to take a decision and make the payment within 30 days. However, if the insurance company needs more time to further investigate the claim made by the insured or the nominee, it has to complete the investigation within 90 days.

Now, if the insurance fails to make the payment of the claim within the stipulated time limit, the company will have to pay a penal interest that is 2% more than the bank rate specified by the Reserve Bank of India on April 1 of that financial year. If the claim is ready for payment but if the company delays the payment on the ground of uncertainty of proper identification of the payee, the company will still be liable for a penalty for the period of delay. The period of delay will be calculated from the submission of all the documents for making the claim by the insured.

Thus, the insurer is supposed to settle the claim within receipt of all the documents for making the claim within 30 days, but if the insurer makes the payment on, say, the 31st day, the penalty for the delay would be for 31 days and not just 1 day.

In the case of payment of maturity amount and annuities, the insurance company has to send post-dated cheques or transfer the money into the bank account of the payee on or before the due date. If an insured surrenders the policy or cancels the policy after the free look-in period, the insurance company has to settle the claim within 15 days of receipt of such request. Any delay in payment of the claim will attract a penalty. In the case of settlement of a death claim, the insurance company has to complete the investigation within 90 days of submission of the claim and not 180 days as was mandated previously.

Apart from life insurance policies, the settlement of claims for other non-life insurance and health insurance policies also attracts the same provisions, requiring the insurers to make payment within 30 days of receipt of such claims.

Does not wearing a seat belt affect your insurance?
  • 16 Nov 2022
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Yes, not wearing a seat belt can affect your car insurance in some cases. If you are involved in an accident and were not wearing a seat belt, your insurance company may reduce the amount of compensation paid out to you or deny your claim altogether. This is because not wearing a seat belt is considered a violation of traffic safety laws and is seen as contributing to the severity of the injuries sustained in the accident. Moreover, yes! not wearing a seat belt can affect your insurance in India.

In case of an accident where the driver or any passenger is not wearing a seat belt, the insurance company may refuse to pay the full claim amount or may reduce the claim amount. This is because not wearing a seat belt increases the risk of injuries and fatalities in an accident, and it is considered a violation of traffic safety regulations.

According to the Motor Vehicles Act, of 1988, not wearing a seat belt is an offense, and if caught by the traffic police, the driver and passengers can be fined. If the insurance company finds out that the driver or any passenger was not wearing a seat belt at the time of the accident, they may consider it a violation of the terms and conditions of the insurance policy and may reject the claim or reduce the claim amount. Additionally, some insurance companies may increase your premiums or cancel your policy altogether if you are found to have not been wearing a seat belt at the time of the accident.

This is because the insurance company considers not wearing a seat belt as a high-risk behavior that increases the likelihood of injuries in an accident. It's important to note that insurance policies and regulations vary by country and region, so it's best to check with your insurance provider or local authorities to understand the specific rules and consequences related to not wearing a seat belt. However, wearing a seat belt is always important for your safety, regardless of its effect on insurance. It is important to always wear a seat belt while driving or traveling in a car, not just to avoid any potential impact on insurance but also for the safety of oneself and others.

Beware of Fake Insurance Agents and Fraudulent Policies
  • 17 Sep 2022
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It is important to be aware of fake insurance agents and fraudulent policies to avoid falling prey to scams. Here are some tips to help you identify and avoid such situations:


  • Verify the credentials of the insurance agent: Before purchasing a policy, make sure to check the credentials of the insurance agent. Check whether the agent is authorized by the Insurance Regulatory and Development Authority of India (IRDAI). You can do this by checking the IRDAI website or calling their toll-free number.
  • Check the authenticity of the policy: Make sure to check the authenticity of the policy document before purchasing it. Verify the policy number, the terms and conditions, and the premium amount.
  • Read the fine print: Make sure to read the policy document carefully before signing it. Pay attention to the terms and conditions, exclusions, and deductibles
  • Keep a copy of the policy document: Always keep a copy of the policy document for your reference. This will help you in case of any dispute or claim.


  • Don't fall for the lowest premium: Don't fall for the lowest premium without verifying the authenticity of the policy. Some fake insurance agents lure customers with low premiums and sell fake policies.
  • Don't sign blank documents: Never sign blank documents. Always fill in the details yourself or in the presence of the insurance agent.
  • Don't disclose personal information: Don't disclose your personal information like bank account details, credit card information, etc. to anyone other than authorized representatives of the insurance company.
  • Don't rush into signing the policy: Take your time to review the policy document and clarify any doubts before signing it.

By following these tips, you can safeguard yourself from fake insurance agents and fraudulent policies. Remember, it is always better to be safe than sorry when it comes to purchasing insurance.

Free-look Period in Health Insurance: Benefits & Working
  • 09 Sep 2022
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Sometimes, people may purchase a health insurance plan without adequate research and understanding of what their chosen policy offers. This often translates to buying a plan that may not suit their requirement and lead to unanticipated out-of-pocket expenses during claims.

Free-look period in health insurance refers to the period during which the policyholder can review the terms and conditions of the policy and cancel it if they are not satisfied with the policy. The Insurance Regulatory and Development Authority of India (IRDAI) has mandated a free-look period of 15 days for all health insurance policies in India.

During this period, the policyholder can review the policy documents and return the policy to the insurer if they find any discrepancies or are not satisfied with the policy. The policyholder will receive a refund of the premium paid, minus the expenses incurred by the insurer on medical tests and stamp duty charges. The free-look period is an important feature of health insurance policies as it provides the policyholder with an opportunity to assess the suitability of the policy without any obligation. It is advisable to make use of the free-look period to review the policy document carefully, understand the coverage and exclusions, and ensure that it meets your requirements.

What is the Free Look Period?

The Free Look Period is a time period during which you are free to evaluate the policy purchased from a health insurance company. If you do not like the policy or discover certain clauses that you feel are not appropriate for you, you can cancel the policy. Depending upon their rules and regulations, the insurer may or may not deduct some basic expenses before returning the money you paid as an insurance premium. You must carefully review the inclusions and exclusions mentioned in the policy document to get a basic understanding of the plan. If the policy does not offer the features promised by the insurer during the purchase journey and you want to get a refund, you must notify the insurance company in writing along with the reason for cancellation. Remember that you must cancel the policy during the free look time to receive a full refund. However, it is important to note that the free-look period can be availed only once during the policy term. Additionally, if any claims are made during the free-look period, the policy will not be cancelled, and the policyholder will not be eligible for a refund.

Here's an example of how the Free look Period works.

Mr. A bought the 25L ACKO Platinum Health Insurance Plan online. He was in a hurry, so he could not analyse his requirements and went for the 25-lakh sum insured plan. However, after thinking about his decision on the weekend and discussing it with his family, he realized that the 25-lakh sum insured won’t be enough. Thus, he decided to take advantage of ACKO’s Free Look Period feature, cancelled his 25-lakh policy, and received a refund. And then proceeded to purchase the 50L ACKO Platinum Health Insurance Plan instead.

Key features of the Free Look Period

Following are the features of the Free Look Period.

Sufficient time limit Typically, the time limit for the Free Look Period is 15 days from the policy issuance date. If you don’t like the benefits or the features provided by the policy, you have two weeks to cancel it and get a full refund. You may not have the option to get a full refund after the Free Look Period ends.

Easy cancellation If you are unhappy with the policy and wish to cancel it under the Free Look Period, you must contact the insurance company and submit a cancellation request. This procedure can be done online or offline, depending on the insurer's rules.

Quick submission When submitting a cancellation request, you must provide the following information.

  • Policy starts date
  • The reason(s) for insurance cancellation
  • Bank account information for transferring the refund

Minimal documentation To cancel the policy, you must produce specified original documents or copies of the documents. These documents could include a premium payment receipt, a cancelled cheque, etc. In the absence of the appropriate documentation, the insurer may request that you provide an Indemnity Bond.

Steps to cancel a policy within the Free Look Period Here are the steps highlighting how to cancel your health insurance policy in the Free Look Period.

  • Step 1: Contact ACKO through the customer care number provided in the app.
  • Step 2: State your reason for cancelling the policy and provide the necessary documentation.
  • Step 3: Share your bank account details to receive the full refund.

"How to avoid falling prey to insurance fraud" by Economic Times
  • 20 Aug 2022
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Insurance fraud is a serious issue that affects not only insurance companies but also policyholders who pay higher premiums as a result. Insurance fraud can take many forms, from misrepresenting facts on a policy application to staging an accident to collect insurance money. Here are some tips to help you avoid falling prey to insurance fraud. Be wary of unsolicited offers: Scammers often use phone, email or even social media to offer insurance deals that seem too good to be true.

Always verify the legitimacy of the offer by researching the company or contacting the insurance regulator. Read the fine print: Before signing any insurance contract, read the terms and conditions carefully. Make sure you understand what you're signing up for and ask questions if anything is unclear. Disclose all relevant information: When applying for insurance, it's important to provide accurate information about your health, lifestyle, and driving record. Failing to disclose relevant information could result in your policy being voided.

Don't stage accidents: Staging an accident or filing a false claim is illegal and can result in criminal charges. Even if you're tempted to do so to collect insurance money, it's never worth the risk. Review your policy regularly: It's important to review your insurance policy periodically to ensure that you have adequate coverage and that all the information on the policy is accurate.

Report suspected fraud: If you suspect that you've been the victim of insurance fraud, or if you witness fraud being committed, report it to the appropriate authorities. This can help prevent others from falling prey to the same scam.

In conclusion, insurance fraud is a serious problem that can affect anyone. By being vigilant and following these tips, you can protect yourself from falling prey to insurance fraud and ensure that you get the coverage you need at a fair price.

"Insurance fraud in India: A growing menace"
  • 01 July 2022
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Insurance fraud is a significant issue in India, with fraudulent claims costing the industry millions of rupees every year. Insurance fraud can take many forms, from falsifying documents to staging accidents, and it is a growing menace that affects not only insurance companies but also policyholders. One of the main reasons behind the growth of insurance fraud in India is the lack of awareness among policyholders. Many people are not aware of the different types of insurance fraud or how to spot them.

This lack of awareness makes it easier for fraudsters to exploit policyholders and insurance companies. One common type of insurance fraud in India is motor insurance fraud. This occurs when policyholders file false claims for accidents that did not occur or for damages that were pre-existing. Fraudsters also stage accidents to make false claims or inflate the value of legitimate claims. This type of fraud not only affects insurance companies but also leads to higher premiums for honest policyholders. Health insurance fraud is another significant problem in India.

Fraudsters may submit false medical bills or inflate the value of legitimate bills. They may also falsify medical records to support fraudulent claims. In some cases, fraudsters may even sell fake health insurance policies to unsuspecting customers. To combat insurance fraud in India, insurance companies are taking steps to raise awareness among policyholders.

They are also using technology to detect fraudulent claims and collaborating with law enforcement agencies to prosecute fraudsters. Policyholders can also play a role in preventing insurance fraud by being vigilant and reporting any suspicious activity to their insurance company. In conclusion, insurance fraud is a growing menace in India that affects both insurance companies and policyholders. By raising awareness, using technology, and working together, we can combat this problem and protect the integrity of the insurance industry.

DO’s & Don’ts While Filling your Motor Insurance Claims
  • 29 June 2022
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When it comes to filing a motor insurance claim, it is important to know the do's and don'ts to avoid any potential pitfalls. Here are some tips to keep in mind:


  • Inform your insurance company about the accident as soon as possible. Delay in reporting the claim may lead to rejection of the claim.
  • Take photographs of the damaged vehicle and the accident spot as evidence.
  • Get the police report or FIR (First Information Report) filed at the accident spot.
  • Obtain an estimate for the repair work from an authorized garage.
  • Keep all the necessary documents ready such as driving license, vehicle registration, insurance policy, and ID proof.
  • Be honest while describing the accident and the damages incurred.
  • Check the insurance policy to know the coverage and exclusions in detail.


  • Don't admit fault for the accident. Let the police and the insurance company investigate and determine who is at fault.
  • Don't try to inflate the damages or claim for pre-existing damages.
  • Don't get the repairs done before the surveyor inspects the vehicle. This may lead to the rejection of the claim.
  • Don't delay submitting the necessary documents to the insurance company.
  • Don't forget to collect a receipt for any payments made towards the claim settlement.
  • Following these do's and don'ts will help you file a successful motor insurance claim and avoid any unnecessary complications.

Assignment Vs Nomination in Life Insurance
  • 27 June 2022
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Before purchasing a life insurance policy, one must know what nomination and assignment is so that he/she can make an informed decision. Nomination and Assignment are two major terms used in the life insurance sector. Nomination and Assignment are used for different purposes under a life insurance policy.

What is Nomination?

Nomination is the right of decision, made by the policyholder, to nominate a person, the policyholder is given the authority to appoint a person who will receive the benefits in case of an unforeseen demise of the life assured during the policy term. The person who will receive the benefit is known as a Nominee. Nomination is permitted under Section 39 of the Insurance Act.

What is Assignment? The assignment is known as the transfer of policy rights and ownership from the policyholder to the person chosen for the Assignment. The person who is chosen for Assignment Is known as Assignee. An assignment is also permitted under Section 38 of the Insurance Act.

Assignment Vs Nomination in Life Insurance

Following is the difference between Assignment and Nomination under life insurance policy:

Parameter Assignment Nomination
Ownership Assignment is transferring of rights or policy ownership from the policyholder to the assignee. It can be made by an endorsement on the life insurance policy. Under nomination a person is nominated by the policyholder, who will receive the benefits in case of an unforeseen demise of the life assured during the policy term. Nomination is made by mentioning the nominees in the policy documents.
Witness Assignment requires witnesses, without witness the assignment shall be considered invalid No witness is required for nomination.
Purpose The policy ownership or rights are transferred from the policyholder to the assignee. Nominees will only receive the benefits in case the life assured passes away during the policy term.
Authority Assignee can sue the Assignor. Nominees cannot sue the policyholder.
Benefits Assignee shall receive the policy money. Nominees shall be paid death benefit in case the life assured passes away.

Types of Nominees

Following are the different types of nominees:

  • Beneficial Nominee: If the policyholder nominates an immediate family member of his family, the nominated person shall be termed the beneficial nominee. If a policyholder opts for a family member such as a spouse, parent, or child as the nominee, the nominated person will be a beneficial nominee.
  • Minor Nominee: A nominated person who is below 18 years of age is known as a minor nominee. If the policyholder chooses to nominate his/her child under life insurance, the nominated person shall be termed as the minor nominee.
  • Non-Family Nominee: If the policyholder nominates distant relatives and friends, the nominated person shall be termed as a non-family nominee.

Types of Assignees

The following are the different types of assignees:

  • Absolute Assignment: Absolute assignment is when the policyholder transfers the policy right/ownership to the assignee without any terms and conditions.
  • Conditional Assignment: Conditional assignment is when the policyholder decides to transfer the policy right/ownership to the assignee under certain conditions, if the terms and conditions are fulfilled then only the assignee will receive the policy rights/ownership.

Conclusion Assignment and Nomination are two different terms that are repetitive and both of them have different purposes under the life insurance policy. Before making a decision, the above-mentioned details and aspects may help you to come to a point where you consider either of them under your life insurance policy.

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