Month: October 2019

Third Party Car Insurance

Sidharth Hampanavar

Traffic rules and guidelines are determined by the Motor Vehicles Act, 1988. The Act states the rules for all types of vehicles which run in India. One such rule of the Act is that every vehicle should have a third party insurance cover on it. Only if the vehicle has a valid insurance cover can it run on Indian roads? If you have a car you would also need a valid third party insurance cover on it. While many of you understand that the cover is necessary, do you understand the coverage benefits of third party insurance?

If you don’t, here’s a detailed analysis of third party car insurance plans –

What is a third party insurance policy?

A third party insurance policy is a mandatory motor insurance policy which covers any type of third party losses which are caused by the car. The policy covers the losses and pays the financial liability which is suffered by the car’s owner.

How does third party insurance work?

Under a third party insurance policy, three parties are involved which are as follows –

  1. The first party which is the car’s owner who buys the plan
  2. Second-party is the insurance company which covers the risk
  3. Third-party is any other individual other than the first and second parties

The owner buys a third party liability cover from the insurance company. The company promises coverage against third party liabilities. When the owner suffers a third party liability, the insurance company is intimated of the claim. The insurance company then pays the aggrieved third party the loss that he/she suffers.

Types of third party insurance plans

Third-party insurance plans can be of the following types depending on the vehicle that they cover –

  • Third-party car insurance plans cover private cars
  • Third-party two-wheeler insurance plans cover privately-owned two-wheelers
  • Third-party commercial vehicle plans cover vehicles which are used for commercial nature including, but not limited to, taxis, commercial two-wheelers, tempos, trucks, lorries, etc.

Features of third party car insurance plans

Third-party car insurance policies have the following salient features –

  • The policy covers only the damages suffered by third parties. If the car itself suffers any type of damage, the same would not be covered under the plan
  • The premiums for third party plans are determined and fixed by the Insurance Regulatory and Development Authority of India (IRDAI). The premiums are, therefore, fixed across all insurance companies
  • The premiums for third party car insurance plans depend on the engine capacity of the car
  • The premiums are not fixed. They might change any time as per the IRDA’s discretion
  • Third-party plans are the cheapest car insurance plan available in the market
  • Physical injury and death are covered for an unlimited amount. The insurance company would pay the claim as directed by the claims tribunal
  • In case of property damage claims, the liability of the insurance company is limited to INR 7.5 lakhs

What does third party insurance cover?

Coverage under a 3rd party insurance policy includes the following –

  • If the car kills an individual, the vehicle owner faces a financial liability for the loss of life caused due to his car. The third-party insurance policy covers this loss
  • If the car physically injures or hurts any individual, the car’s owner faces a financial liability for the physical injury caused. This liability is covered under 3rd party insurance plans
  • If the car damages any property which belongs to any other individual, the vehicle owner is financially liable to compensate the individual for the loss of property. This financial liability is covered under third party plans

Besides these third party liabilities, the plan also covers the owner/driver of the car against accidental contingencies. There is a mandatory personal accident cover under third party car insurance plans. Under this personal accident cover, accidental death or permanent disablement is covered.

What is not covered under third party insurance?

Third-party car insurance plans do not cover the following –

  • Damages suffered by the car itself
  • Damages caused by the influence of drugs and/or alcohol
  • Deliberate losses caused to third parties
  • Liability suffered when the car is being driven outside India or without a valid driving license
  • Any type of contractual liabilities
  • Damages suffered due to war and nuclear perils
  • Liability suffered when the car’s usage limitations were violated

Premiums of third party car insurance plans

As stated earlier, premiums of third party liability plans are fixed by the IRDAI and reviewed every financial year. The premiums which are applicable currently for the financial year 2019-20 are as follows:

Cubic capacity (cc) of the carPremium rate
Up to 1000 ccINR 1850
More than 1000 cc but below 1500 ccINR 2863
More than 1500 ccINR 7890

Benefits of third party car insurance plans

Though third party car insurance plans are mandatory by law, they have various benefits too. These benefits include the following:

  • The plan helps you avoid legal hassles and penalties which occur when you are caught driving without a valid cover
  • The financial liability which you would face in an unfortunate death of another individual could go up in lakhs. Since the policy covers such liabilities, it gives you financial security
  • The plan has very low premium rates and is, therefore, easily affordable

Difference between private and commercial third party insurance plans

As mentioned earlier, third party insurance plans are available for both private as well as commercial vehicles. However, the plans are different in various respects. The differences are as follows –

Points of differenceThird-party coverage on private vehiclesThird-party coverage on commercial vehicles
Types of vehicles coveredCars and two-wheelers are covered under these plansTrucks, lorries, taxis and other passenger and goods carrying vehicles are covered
Premium amountThe premium amount is lowerPremium rates are higher

How to buy 3rd party car insurance plans

Buying third party insurance plans for a car can be done online through Turtlemint. Turtlemint gives you the facility of comparing different third party plans and then choose the best plan. You can also get guidance on buying the best policy as well as assistance at the time of claims. Turtlemint, therefore, helps you choose the best third party cover for your car. The process is simple and is as follows –

    • Visit Turtlemint’s car insurance page at https://turtlemint-stage.dreamhosters.com/car-insurance
    • Enter in your car’s registration number and click ‘Find Plans’
    • You would also have to enter the details of your car like the make and model, manufacturing year, fuel type, variant, type of policy that you previously owned and your contact details
    • Once all the details are entered you can click ‘Submit’ and the next page shows you the list of available plans
    • Choose ‘TP liability’ to view some of the best third party plans for your car
    • Compare the coverage benefits of the plans and choose the plan which offers the best coverage features
    • Pay the premiums online and your car insurance policy would be issued

Simple, isn’t it?

You can also buy third party car insurance online through the website of the insurance company but then you lose the benefit of comparing. Comparing lets you choose a plan which has the most inclusive coverage features and the insurance company which has the best garage network for cashless claims. So, buying through Turtlemint is a wiser alternative.

Making a claim under third party insurance

Claims under third party insurance plans are handled by the Motor Accidents Claims Tribunal (MACT). The process is as follows –

    • You have to file a police FIR after the claim occurs
    • Also, inform the insurance company immediately of your claim
    • The claim would be taken to MACT where the ruling for the claim amount would be given
    • As per the ruling of MACT, the insurance company would pay the claim directly to the third party. You wouldn’t have to shoulder the financial burden yourself

Various documents are also required for making a third-party claim. These documents include the following –

  • Police FIR
  • RC book of the car
  • Your driver’s license
  • Coroner’s report, post mortem report and punchnama in case of death of a third party
  • Police report in case of accidental injuries or property damage
  • Hospital reports, bills and invoices in case of physical injury suffered by third parties

You can also get a settlement of your third party insurance claims through Turtlemint by calling the company’s helpline number 1800 266 0101 or by sending an email at claims@turtlemint.com . The company’s claim department would then handle your claims and get it settled from the insurance company.

Third-party insurance policy on your car is a must if you want to abide by the traffic rules prevalent in India. The policy also has affordable premiums making it pocket-friendly. So, if you own a car make sure to have third party coverage on it.

Frequently Asked Questions

  1. Do third party premiums remain constant?
    No, third-party premiums are dynamic and reviewed by the IRDAI every year. The IRDAI may increase or decrease the premium as per its discretion.
  1. Can I earn any tax benefits on third party insurance premiums?
    No, you cannot earn any type of tax benefit on third party premiums.
  1. In an accident, I hurt an individual and my car also got damaged. Would I get coverage for both under third party plans?
    No, under third party plans you would get coverage only for the physical injury that your car caused to another individual. The damages suffered by your car would not be covered.
  1. What is the coverage amount for personal accident cover?
    The coverage amount for personal accident cover is INR 15 lakhs and the premiums that you need to pay for the same is INR 750.

 

Endowment Policy – Saving Plans, Features & Benefits (Complete Guide)

Sidharth Hampanavar

Life insurance plans come in many different variants. Broadly, life insurance plans are classified under two heads –

Life insurance plans

Traditional plans are those which promise guaranteed returns whereas under unit linked plans the returns depend on the performance of the market.

Traditional plans can be of different types and one such type is an endowment policy. Do you know endowment policy meaning? If you don’t here’s a complete lowdown on endowment insurance plans.

What is an endowment plan?

An endowment policy is a life insurance policy which helps you in creating guaranteed savings for your financial goals. The plan has a death benefit and also a maturity benefit. In case of death of the insured during the term of the policy, a promised death benefit is paid. Moreover, if the insured survives till the end of the policy tenure, a promised maturity benefit would be paid. Thus, endowment insurance plans cover both death and maturity and help in creating savings.

Types of endowment policy

Now that you know what is an endowment plan let’s find out the different types of endowment plans available. Endowment plans can be offered in two variants which are as follows –

  • With profits or participating plans

Or

  • Without profits or non-participating plans

With profits plans are those which earn bonus. If the insurance company earns a profit in a financial year, the profit is distributed among the policyholders in the form of bonus. Participating policies are eligible to earn a bonus and if an endowment policy is offered as a participating or with profits policy, it would accrue bonus.

Without profits policy, on the other hand, do not earn bonus. Even though the insurance company declares a bonus, the bonus is not added to non-participating endowment plans.

How does endowment policy work?

Here is a graphical representation of how endowment plans work for a better understanding –

endowment policy

Salient features of endowment policy

Here are some of the salient features which you can find in endowment policy –

  • An endowment plan is offered for longer tenures which can go up to 30 years
  • There are whole life endowment plans too which allow coverage till 99 or 100 years of age
  • An endowment policy does not invest in capital markets. As such, the policy promises guaranteed benefits. Only the bonus, if allowed, is non-guaranteed since it depends on the performance of the company.
  • Bonus is added under participating plans only if you pay the premiums as and when they are due
  • There are optional riders under endowment insurance plans which help in enhancing the coverage
  • Guaranteed additions or loyalty additions are added under many endowment plans
  • There are regular premium, limited premium as well as single premium endowment plans. You can choose any plan as per your premium paying capacity
  • You can avail policy loans under endowment plans. The loan is allowed against the surrender value of the plan

Benefits of endowment policy

Now that you have understood endowment plan meaning, its types and features, let’s see what makes these plans beneficial –

  • The plan benefits are guaranteed protecting your savings from market volatility. An endowment policy is, therefore, suitable for risk-averse individuals who are looking at secured returns
  • You can choose any policy tenure ranging from 10 to 30 years or even lifelong
  • Endowment plans help you to create a guaranteed corpus for your financial goals
  • If you buy participating plans, you can get an increased corpus through bonus additions
  • The premiums that you pay for the endowment policy are allowed as a deduction from your taxable income. You can claim a deduction of up to INR 1.5 lakhs on the premiums that you pay
  • Policy loans available under the plan helps you meet emergency financial needs at lower interest rates
  • Even the plan benefits, maturity or death benefit, are completely tax-free in your hands under Section 10 (10D). Thus, endowment plans helps you to create tax-free savings for future needs

Best endowment plans of 2020

Here are the best endowment plans of 2020 which you can choose from –

HDFC Life Jeevan Sanchay Plus

This is a non-participating endowment plan which promises the following features –

  • There are four benefit payment options under the plan. You can choose to receive the maturity benefit either in lump sum or in instalments under these options
  • Maturity benefit can be chosen to be received as lifelong incomes till you reach 99 years of age
  • Guaranteed additions are added under the policy
  • There are two optional riders which you can choose for a wider scope of coverage

The parameters of the plan are as follows –

Entry age5 to 60 years
Policy term6 to 20 years
Premium payment term5 to 12 years
PremiumMinimum – INR 30,000/annum

Maximum – no limit

Sum assuredDepends on the premium paid, age and the plan option selected

ICICI Pru Cash Advantage

Cash Advantage is a money-back endowment plan wherein the sum assured is paid in instalments over the policy period. Let’s understand the salient features which make it the best endowment plan –

  • Premiums are payable for a limited tenure only
  • 1% of the Guaranteed Maturity Benefit is promised as Guaranteed Cash Benefit throughout the policy term
  • Regular incomes are paid for 10 years after the completion of the premium payment term

The plan parameters are as follows –

Entry age0 to 60 years
Policy term15, 17 or 20 years
Premium payment term5,7 or 10 years
PremiumMinimum – INR 30,000/annum

Maximum – no limit

Sum assured7 or 10 times the annual premium paid depending on age

ICICI Pru Savings Suraksha

This is another endowment plan offered by ICICI Prudential which comes with both regular premium and limited premium payment options. The features of the plan which make it the best endowment plan are as follows –

  • The plan is a participating endowment plan which helps you grow your corpus through reversionary bonuses
  • Guaranteed additions are also added to the plan corpus in the first five years of the policy

Parameters of the plan are as follows –

Entry age0 to 60 years
Policy term10 to 30 years
Premium payment term5 to 30 years
PremiumMinimum – INR 12,000/annum

Maximum – no limit

Sum assured7 or 10 times the annual premium paid depending on age

LIC’s Jeevan Labh

LIC offers some of the best endowment plans and Jeevan Labh is one such plan which allows limited premium payments only. The features of the plan are as follows –

  • Bonuses are declared under the plan which enhance the death or maturity benefit
  • There are two optional rider coverage benefits which can be selected
  • Premium discounts are allowed for choosing sum assured levels of INR 5 lakhs and above

Plan parameters include the following –

Entry age8 to 59 years
Policy term16,21 or 25 years
Premium payment term10,15 or 16 years
PremiumDepends on age, sum assured and policy tenure
Sum assuredMinimum – INR 2 lakhs

Maximum – no limit

LIC’s Jeevan Tarun Plan

LIC’s Jeevan Tarun plan doubles up as a child insurance plan for safeguarding your child’s financial future. The plan, therefore, acts as the best endowment policy for your child. The benefits of the plan are as follows –

  • The child is covered under the plan while the parent is the policyholder
  • There are four coverage options under the plan. Under these options, you can choose to receive the sum assured in money back benefits too
  • If the money back benefit is chosen, a part of the sum assured is paid in the last four policy years
  • Bonuses are added under the plan
  • Premium waiver rider can be selected by paying an additional premium
  • Premium discounts are available if the premiums are paid yearly or half-yearly

Parameters of LIC’s Jeevan Tarun are as follows –

Entry age90 days to 12 years
Policy term25 years – entry age
Premium payment term20 years – entry age
PremiumDepends on age, sum assured and policy tenure
Sum assuredMinimum – INR 75,000

Maximum – no limit

How to buy endowment policy?

To buy an endowment policy of your choice the online medium is the best option. Though you can buy a policy from a life insurance agent or from the insurance company itself, you don’t get a choice. There are various endowment insurance plans available in the market and when you compare you can buy the best endowment policy. Comparing can be done when you buy endowment policy online. The process is easy and quick. Turtlemint is an online platform which allows you to buy the best endowment policy for your needs. Turtlemint is tied-up with the leading names in the life insurance industry and offers you the choice of the best endowment plans. You can compare and buy the most suitable coverage for your needs. Besides offering you the choice of the best endowment plans, Turtlemint also offers personalised assistance for your queries and claim assistance. This makes your buying and claim process easy as a breeze.

To buy an endowment policy through Turtlemint, here are the steps that you should follow –

  • Visit https://turtlemint-stage.dreamhosters.com/life-insurance
  • Choose your financial need for which you are buying endowment plan. There are two needs which you can choose from – ‘Investment and tax planning’ and ‘Savings for Child’
  • Then you would be required to enter your personal details which include the following –
  • Gender
  • Date of birth
  • Annual income (so that the ideal sum assured level can be recommended)
  • Smoking preference
  • Investment horizon (for choosing the right coverage tenure)
  • Investment amount and also the frequency (yearly, half-yearly, quarterly, monthly or one-time)
  • Your contact details – name, mobile number and email ID. This is optional and is required so that Turtlemint’s team can contact you and help you buy the policy
  • In the next page you get a choice between ULIPs and traditional plans
  • Choose traditional plans to see the best endowment plans. You can also check the plan’s benefits and the premiums charged
  • Compare the premiums vis-à-vis the benefit and choose the best endowment policy as per your coverage needs

Thus, when you buy through Turtlemint you can easily compare and buy the best endowment policy.

Documents required for buying endowment policy

You would have to submit some documents to complete the buying process for your endowment policy. These documents include the following –

  • Your photographs
  • Photographs of the life insured if you are buying the policy for someone else
  • Identity proof of the insured
  • Address proof of the insured
  • Age proof of the insured
  • Income related documents if you are opting for a high sum assured level and paying higher premiums
  • Aadhar card and PAN card

Things to remember when buying endowment policy

When you buy an endowment plan, here are some things which you should keep in mind –

  • Ensure that the premium is affordable so that you can pay it over the term of the plan
  • Endowment plans allow single premiums, limited premiums as well as regular premiums. Choose a premium paying term as per your affordability
  • The term of the plan should match your investment horizon. Buy a plan keeping a financial goal in mind. These choose the term so that you get the funds when you need to fulfil the specific goal
  • If you choose a participating plan, remember that bonus would only be paid if you continue paying the premiums. So, don’t let the policy lapse
  • A lapsed policy can be revived within two years. Try and revive the policy for a wider scope of coverage
  • Choose policy riders to increase the coverage of the endowment insurance plan

Endowment plans are low risk savings oriented life insurance plans which let you create a secured corpus over the term of the policy. So, if you want guaranteed returns, buy an endowment policy and create funds for your financial goals.

Frequently Asked Questions

  • What would happen if I stop paying premiums under an endowment plan?

If you stop paying premiums, the policy would lapse. If you have paid the specified minimum number of premiums, the coverage under the policy would continue on a reduced sum assured. This reduced sum assured is called paid-up value and the policy is called a paid-up policy. No future bonuses would be added to participating plans which are in a paid-up state. However, the accrued bonuses would be added to the paid-up value. In case of death or maturity, the paid-up value would be paid.

  1. Can I surrender an endowment policy?Yes, you can surrender an endowment policy if the policy has acquired a paid-up value. On surrender, you receive a surrender value which is calculated as the paid-up value multiplied by a surrender value factor. The factor is determined by the insurance company.
  2. How much loan is available under an endowment insurance plan?You can avail up to 90% of the surrender value as loan under endowment plans. However, the exact limit of loan varies across plans.
  3. Are bonuses taxable?No, the bonus that you earn from participating endowment policies is not taxable.

Download LIC Premium Payment Receipt

Rupanjali Mitra Basu

Life Insurance Corporation of India is one of the most trusted insurance company in India. LIC is not only popular for its wide presence and numerous variety of life insurance products, but it is also known for high-quality customer services it provides. Right from purchasing the LIC policy to claiming the benefits, LIC offers ease and convenience to its customers for every service. LIC’s e-services make it easy for the customer to pay the premiums online without any hassles and access LIC online payment receipt anytime. Visiting the branch to obtain the LIC premium paid certificate is no longer needed.

LIC premium paid statement is usually required by policyholders to submit it as proof of investment for income tax declaration purposes. LIC online payment receipt and consolidated premium paid statement can be downloaded from the LIC website easily with few clicks.

Steps to download LIC premium payment receipt

User ID and password for the LIC customer login portal is all that you need to download the LIC premium payment receipt instantly in no time. That means you need to be registered for the LIC e-services to download the LIC premium paid certificate. If you are a registered user, following are the simple steps to follow to download the premium certificate:

  • Log on to LIC website
  • Click on ‘customer portal’ tab under ‘online services. You will be redirected to LIC online services portal
  • Click on ‘Registered User ‘tab under ‘LIC’s e-Services’
  •  Login with your user ID, password and date of birth
  • On the welcome screen, there will be two choices given to download premium paid statement – ‘Individual Policy Paid Statement’ and ‘Consolidated Premium Paid Statement’. If you would like to download LIC premium paid certificate for each policy that you hold, click on ‘Individual Policy Paid Statement’ or if you would like to avail statement for each and every LIC policy that you hold, then click on ‘Consolidated Premium Paid Statement’
  • Select the policy number and choose the fiscal year
  • Click on download premium paid receipt. That simple it is to download LIC premium payment receipt for registered users
  • You can save the downloaded statement or you can take a hard copy printed out depending on your requirement

In case, you are not registered for LIC’s e-services, you can register yourself with a few simple steps.

Steps to register yourself on LIC’s online services portal

  • Log on to LIC website
  • Click on ‘customer portal’ tab under ‘online services. You will be redirected to LIC online services portal
  • Click on the ‘New User‘ tab under ‘LIC’s e-Services’
  • Create your LIC account by giving inputs related to any one of your LIC policy
  • Policy number, premium instalment, date of birth, mobile number, email ID, passport number and PAN number are the important details to be entered on the page
  • Once the relevant details are entered, confirm and proceed to create the account
  • Choose the password of your preference and complete registration process
  • Further, you can add all your LIC policies in the same account
  • Fill up the request form for availing all e-services under the same login
  • Once the LIC sends confirmation, you can start accessing all the premier e-services too.

Frequently Asked Questions (FAQs)

  1. What would you do if you lost or have not received LIC premium paid receipt?If you have lost your LIC premium payment receipt or if you have not received the hard copy, you can log on to LIC online customer portal with your user credentials and download the same by choosing the policy number under ‘LIC premium paid certificate’ service facility offered on the portal.
  2. How to check your LIC policy schedule?LIC online services portal offers plenty of services. Policy schedule can also be downloaded from your LIC’s account online. You need to log in to LIC’s e-services portal with your user credentials. Then, click on ‘Policy Schedule’ option and download it for the specific policy type.
  3. Does ‘LIC premium paid certificate’ come in PDF?Yes, when you download premium payment receipt, the certificate is generated in PDF format.

Insurance ombudsman India

Ankita Sejpal

Every complaint highlights a problem. Addressing the complaint gives a room for improvement in any business. But, it’s important to know how grievance redressal works. When it comes to insurance, the Insurance Regulatory and Development Authority (IRDAI) has set in a procedure for insurance companies to handle customer grievances.

If you are life insurance or general insurance policyholder, the insurance company should be your first point of contact for any complaints. In case, you are not satisfied with the insurance company’s response to your complaint, after 30 days of your complaint you can approach the insurance ombudsman.

Who is an insurance ombudsman?

The Government of India has created the Insurance Ombudsman scheme to help insurance policyholders to get their complaints resolved off the court in an efficient, effective and unbiased way. Currently, there are 17 Insurance Ombudsman Centres in India – Mumbai, Pune, Delhi, Bangalore, Ahmedabad, Bhopal, Chandigarh, Bhubaneswar, Chennai, Guwahati, Jaipur, Hyderabad, Kolkata, Kochi, Lucknow, Noida and Patna. The contact details of each Insurance Ombudsman centre is available on IRDAI website. Depending on the Insurance Ombudsman under whose jurisdiction the insurance company’s branch or office is located or where the place of residence of the complainant is located, the complaint can be filed there.

Who can approach Insurance Ombudsman?

Any individual policyholder (of both life insurance and general insurance) can approach Insurance Ombudsman for grievance redressal.

Types of complaint accepted by the Insurance Ombudsman

Following are the types of complaints for which policyholder can approach the Insurance Ombudsman

  • Delay in claim settlement, beyond the time limit, stated as per the regulations under IRDAI Act, 1999
  • Disputes relating to premiums payable or paid for life or general insurance policies
  • Any partial or total rejection of claims by a life insurer or general insurer
  • Complaints relating to the services of policy by the insurance company, an agent or by an intermediary
  • Non-issuance of insurance policy after receipt of premium by the insurance company. This can be related to life insurance, health insurance or any general insurance products
  • Issuance of an insurance policy which is not in compliance with the proposal form submitted. This can be related to life insurance, health insurance or any general insurance products
  • Any disputes relating to the legal construction of insurance policies in so far as such dispute relates to claim
  • Any complaints relating to a violation of provisions of the Insurance Act, 1938 or the guidelines, regulations and circulars issued by the regulatory body IRDAI

Procedure for filing complaint with Insurance Ombudsman

Filing complaint with Insurance Ombudsman is extremely easy and simple. Following are the simple steps to follow:

  1. If you have not received a satisfactory response from your insurance company on your grievances or you have not received a response on time, which is within a month from your complaint, proceed to file a complaint with the Insurance Ombudsman.
  2. Contact the Insurance Ombudsman office in your jurisdiction. For example, you are staying in Bangalore and your insurance company’s office is in Mumbai, you can approach the Insurance Ombudsman Bangalore centre for filing the complaint
  3. A complaint can be filed by sending a letter (hard copy) to the Insurance Ombudsman or by fax or email. However, if you email your complaints, you are also required to send the hard copy letter later.
  4. Your letter must include all the necessary details such as policy number and complaint details. Enclose relevant documents as required by the Insurance Ombudsman and post it to the centre. The requirement of documents may vary depending on the nature or type of complaint
  5. In case you visit the Ombudsman centre, you can fill in Form P-II and P-III. In case you have sent your documents by post, Insurance Ombudsman will revert to you asking to fill these forms.
  6. After submission of complaint and documents relating to it, a date will be fixed by Insurance Ombudsman for hearing.

While filing a complaint with the Insurance Ombudsman, you must keep in mind below points:

  • Complaint needs to be filed within a year from the final communication received from an insurance company with regards to your grievance.
  • The same complaint should not be pending before the court or consumer forum, as consumer court or forum is the last resort for any grievances.

How does Insurance Ombudsman work? What is the settlement process?

When you place a complaint with Insurance Ombudsman as a policyholder, Ombudsman will play the role of mediator between you and the insurance company. Following will be the settlement process

  1. On the basis of facts of a dispute between you and the insurance company, Ombudsman will arrive at the fair recommendations. This must be done within a month of filing a complaint with the Insurance Ombudsman.
  2. In case you agree with the recommendations and accept that as the final settlement, Insurance Ombudsman will inform the insurance company by sending a letter of acceptance, which must comply within 15 days of time.
  3. If you do not accept the settlement, the Insurance Ombudsman will pass an award within three months of receiving the necessary things from you (complainant) and this will be binding on the insurance company
  4. Once the award is passed by the Insurance Ombudsman, the insurance company must comply with it within 30 days from the receipt of the award
  5. Compliance of the award by the insurance company needs to be informed to the Insurance Ombudsman

Frequently Asked Questions (FAQs)

  1. When can you approach Insurance Ombudsman with a complaint?You can approach Insurance Ombudsman in the following cases
    • You have filed a complaint with your insurance company and not received any response for 30 days
    • Your insurance company has addressed your complaint, but you are not satisfied with the response
    • Your insurance company has rejected your complaint
    • Your claim value may be approximately below INR 30 lakhs
    • Your complaint pertains to any insurance on personal lines
  2. What is insurance on personal lines?Insurance on personal lines refers to any insurance policy taken or given in an individual capacity. It can be life insurance, health insurance, personal property insurance or any other general insurance.
  3. Is it required to approach the Insurance Ombudsman through a lawyer?No. you need not approach Insurance Ombudsman through a lawyer. You can file a complaint in an individual capacity. An executive will be appointed from the Ombudsman office to represent the complainant and to help in the process.
  4. Are there any charges for lodging a complaint with the Insurance Ombudsman?No. there are no fees charged for lodging the complaint with Insurance Ombudsman. Even the executive representing the policyholder from Ombudsman office will be appointed for free of cost.
  5. What is the financial jurisdiction of the Insurance Ombudsman?Insurance Ombudsman can award insurance compensation up to the loss suffered by the complainant or up to INR 30 lakhs (inclusive of all expenses)

Term insurance plans India guide

Sidharth Hampanavar

What is Term Insurance?

Term insurance is an insurance contract for a specific term in which an insurance company promises to pay a certain pre-decided sum of money to the designated beneficiary in the event of the death of the policyholder during the term. The coverage is provided in return of premiums paid the policyholder. Basically, the term insurance plan is the pure protection plans that only cover the risk of death without any savings benefit attached to the plan. However, there are plans that have been introduced to pay back the premium at the end of the policy tenure if the policyholder survives. It’s imperative for every bread earner of the family to have adequate protection in order to secure their loved ones from financial trauma that may result from an unforeseen event like death.

Why Term Insurance? Term insurance benefits

Term insurance policies come with various benefits which makes it the must-have before planning one’s personal financial portfolio. Following are the major benefits offered by term insurance:

  1. Simple structure/Easy to understand:Term insurance is simple and easy to understand. It is a policy that provides only life cover. The policyholder needs to pay a fixed premium periodically to avail a certain pre-determined amount of coverage (sum assured). If the policyholder dies during the policy tenure, the beneficiary will be compensated with sum assured as a death benefit. In case the policyholder survives the policy term, no benefits are paid.

    Let’s understand this with an example. Let’s say, Mr. Rahul, 30-year salaried man has purchased INR 50, 00,000 coverage for 25 years term. Let’s say he is paying INR. 12,000 for this coverage yearly which he needs to pay for 25 years. Suppose, Rahul dies at the age of 40 years, his beneficiary (spouse as mentioned in the policy) would be paid INR 50, 00,000 as a death benefit. Once the death benefit is paid, the policy gets terminated. In case, Rahul survives 25 years policy term, he will not be receiving anything in return at the end of the term.

  2. Protection/death benefit:The unfortunate demise of the bread earner of the family can have the worst financial repercussions in many ways. Dependants may have to suffer the loss of regular income/income stream, the burden of unpaid debts and corpus to meet various long-term goals such as children’s education, marriage etc. These things can make the family’s financial position unstable. Term insurance benefits you by paying the sum assured as a death benefit to the family (designated beneficiary) on the unfortunate demise of the policyholder during the policy term. The lump sum paid as death benefit helps to maintain the financial stability of the family.
  3. Higher coverage option:Compared to other investment cum insurance products, term life insurance being the pure protection plan offers a higher range of coverage at a relatively lower cost.
  4. Low cost:Term insurance premiums are lower in comparison to other life insurance products. As the term insurance plan only provides protection and no savings component involves, premium payable is also lower. Specifically, when you purchase term insurance online, premium will be even lower as online policies will not involve intermediary cost.
  5. Tax benefits:Though term insurance plans should be purchased on the basis of just the tax benefits provided by the plan, it’s important to know the tax implications of the plan. Premium paid towards term insurance plan in a year maximum of up to INR 1.5 lakhs qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Death benefits paid in a lump sum by the policy is completely tax-free under the provisions of Section 10(10D) of the Income Tax Act, 1961
  6. Additional benefits:Term insurance benefits are not just limited to death benefits. The plans available today are customisable as many of the plans offer additional optional benefits. There are many riders offered by various term plans which can be availed by paying an additional nominal premium in order to enhance the coverage. Riders available are critical illness rider and accidental death and disability rider etc

Top 5 term insurance plans in India

Now that we know term insurance benefits, the following are some of the best term insurance plans offered by various insurance companies.

Plan nameEntry ageAge at maturitySum assuredPolicy termClaim settlement ratio
TATA AIA Life Insurance Sampoorna Raksha Plan18 years to 70 years28 years to 80 yearsINR 50 lakhs to no limit10 years to 40 years98.00%
ICICI Pru iProtect Smart Plan18 years to 60 years23 years to 75 yearsSubjected to the premium amount5 years to whole life97.88%
HDFC Click2protect 3D Plus Plan18 years to 65 years23 years to 75 yearsINR 10 lakhs to no limit5 years to whole life (depending on the plan chosen)97.80%
Max Life Online Term Plan Plus18 years to 60 yearsUp to 85 yearsINR 25 lakhs to INR 100 crores10 years to 50 years98.26%
AEGON Life’s iTerm Insurance Plan18 years to 65 yearsUp to 75 yearsSubjected to the premium amountTill 100 years95.67%
    1. TATA AIA Life Insurance Sampoorna Raksha PlanTATA AIA Life Insurance Company is a joint venture between two leading business groups – TATA sons and AIA group. Being one of the leading insurance companies, it offers a variety of life insurance products. Sampoorna Raksha is one of the popular term insurance products offered by the company which can be purchased online. Following are the features of the plan:
      • The pure protection plan that comes with the flexibility to choose the various death benefit options:
        • ‘’Sum assured on death’’ that pays out a lump sum benefit
        • ‘’Sum assured on death’’ to avail lump sum benefit and monthly income for the next 10 years
        • ‘’Enhanced sum assured on death’’
        • ‘’Enhanced sum assured on death’’ plus monthly income for the next 10 years
      • Premium payment type can be regular or limited pay (5 or 10 years)
      • Flexible premium payment mode – Yearly/half-yearly/quarterly/monthly
      • Enhance the coverage with accidental death and dismemberment rider
      • Offers discounted rates for non-smokers and female lives
      • Large sum assured rebates are offered
    2. ICICI Pru iProtect Smart PlanICICI Prudential Life Insurance Company is one of the leading private insurers that has a countrywide presence. The company offers a wide range of life insurance plans to cater to various protection and investment needs of people. ICICI Pru iProtect Smart is a popular product on the digital platform. Following are the salient features of the plan:
      • Flexibility to choose the protection cover in four options – life, life plus, life and health, all in one
      • The policy provides comprehensive coverage against death, disability and critical illness (depending on the option chosen)
      • Special discounts for female lives along with extensive coverage by covering breast cancer and cervical cancer
      • Sum assured can be increased while achieving major milestones in life
      • Flexible payout options to choose from – Lump sum, monthly income and increasing income
      • Provide an overview of Term insurance
      • Add what are the benefits of term insurance (high life covers at lower premiums, tax benefits, death benefits option, etc.)
      • Flexible premium payment mode – Yearly/half-yearly/monthly
    3. HDFC Click2protect 3D Plus PlanHDFC Life Insurance Company is a well-established private insurance player in India that offers various individual and group insurance policies. HDFC Click2Protect 3D Plus Plan is a term plan that provides comprehensive protection. Following are the features of the plan:
      • The plan offers flexible protection options to choose from 9 different plans:
        • Life option
        • 3D life option
        • Extra life option
        • Income option
        • Extra life income option
        • Income replacement option
        • Return of premium option
        • Lifelong protection option
        • 3D Lifelong protection option
      • All the plans come with three in-built features – Death benefit, accidental total permanent total disability and terminal illness
      • Increase in sum assured during major life stage events
      • Premium payment methods – single, limited pay and regular pay
      • Maturity benefit is offered under the return of premium variant
      • The policy offers top-up option to enhance the cover
      • Flexible premium payment mode – Single/yearly/half-yearly/quarterly/monthly
    4. Max Life Online Term Plan PlusMax Life Insurance Company is one of the most popular insurance companies in India that offers a wide array of life insurance products with innovative features. Max Life’s online offering, Max life online term plan plus also has various new-age features. Following are the features offered by the plan:
      • Comprehensive term insurance plan that gives protection against death, disability and critical illnesses. There are three variants to choose from – life cover, life cover + monthly income, life cover + increasing monthly income
      • Flexibility to increase the sum assured based on the life stage requirement
      • Plan can be opted with the return of premium to receive the maturity benefits
      • Flexible premium payment mode –yearly/half-yearly/quarterly/monthly
    5. AEGON Life’s iTerm Insurance PlanAEGON Life Insurance Company that came into operation in India in the year 2008 offers various individual and group insurance plans. iTerm insurance plans are one of its popular offerings on the online platform. Following are the features of the plan:
      • The policy provides comprehensive protection with in-built terminal illness cover
      • Coverage can be enhanced with various optional riders
        • Aegon Life accidental death rider
        • Aegon Life waiver of premium rider on critical illness
        • Aegon Life critical illness rider
        • Aegon Life women critical illness rider
        • Aegon Life disability rider
      • Premium payment methods – single and regular pay
      • Flexible premium payment mode – Single/yearly/half-yearly/quarterly/monthly

How to buy Term Insurance? The process to apply for term insurance

Term Insurance can be bought online without any hassles. It is quite easy and simple to buy term insurance through Turtlemint. Following are the simple steps to follow for purchase online:

      1. Log on to Turtlemint home page
      2. Choose the category as ‘life insurance’
      3. Once you click on the category, various types of insurance available under that category will be displayed.
      4. Click on ‘term life plans’
      5. Provide your profile details such as gender, marital status, date of birth, income details and contact details and more depending on the plan type you have chosen
      6. Once you submit the profile details, a wide range of plans available under term insurance will be displayed
      7. You can compare term insurance plans offered by various life insurance companies on the side by side basis and select the right one as per your needs
      8. After choosing the plan, provide relevant details and continue to make payment

Documents required for buying term insurance plans

Following are the documents required for buying term insurance plans:

      • Identity proof – PAN Card/Passport/Voter’s ID card/Aadhaar card
      • Address proof – Bank statement/Driving license/ Passport/Aadhaar card/Voter’s ID/Ration card/electricity or telephone bill
      • Income proof – Income tax return for last 3 years/salary slips/latest form 16/Bank statement
      • Passport size photographs
      • Medical check-up reports (if required)

Frequently Asked Questions (FAQs)

    1. How much term insurance coverage do I need?Deciding the coverage depends on various factors. Keep your liabilities, investments, number of dependents, your income and lifestyle in mind while choosing the cover. Coverage requirement may vary from individual to individual.
    2. What is Return of premium term insurance plan?Return of premium term insurance plans is designed to provide maturity benefit. In case the policyholder survives the policy term, return of premium policies pays back the premiums paid by the policyholder on maturity. The premium for such plans is relatively higher in comparison to a regular term plan.
    3. What should be the ‘ideal term’ for term insurance plans?The policy tenure needs to be chosen depends on each individual’s requirement. It’s important to be covered until your retirement age that is usually 60 years. As, after that, you may not have financial dependants and unpaid debts. Calculate the term of the policy that you need to take based on these factors.
    4. What happens to the policy if I surrender or terminate the policy during the policy term?In term insurance plans, the major benefit provided is the life cover. If you surrender in between you would not only lose out on premium but also be deprived of risk cover for the rest of the tenure. There is no surrender value paid in term insurance policies.
    5. What is the claim settlement ratio?Claim settlement ratio indicates the company’s claim payment ability. Claim settlement ratio is a ratio of a number of claims settled against the number of claims filed with the company.

Difference between Insurance and Assurance

Ankita Sejpal

Insurance and assurance are the two terms that are widely used in the financial market. People are often confused between these two terms and use them interchangeably as both the terms are associated with financial product that protects their interest. However, there exists a subtle and thin line of difference between insurance and assurance. In this article, let’s learn the key difference between insurance and assurance in order to make an informed purchase.

What is an insurance?

Insurance is a contractual agreement in which the insurance company indemnifies to compensate for the damage caused or losses suffered by the insured due to man-made/natural calamities or any other uncertain event, for consideration (premium). For example, term insurance policy promises to pay a certain sum of money in case the policyholder dies during the specific term (policy period). In case, policyholder survives the policy term, the insurance contract will become void and the insurance company is not obligated to pay any amount to the policyholder. In this, there is uncertainty surrounding the happening of the insured event. All the general insurance plans are insurance policies that provide protection against an anticipated event. For example, health insurance, fire insurance, marine insurance and motor insurance etc

What is the assurance?

Assurance refers to an agreement wherein the insurance company assures to provide remuneration for an event that is certain to happen, such as death. Assurance policy provides persistent coverage till the death of the policyholder. For example, a whole life insurance policy which provides financial coverage as long as the policyholder is alive. In this, the insured event will certainly happen, sooner or later. Except for term insurance, most of the life insurance products that come with investment component are assurance policies.

Key difference between insurance and assurance

Let’s compare both the terms – insurance and assurance on various parameters and understand the difference between insurance and assurance

Basis for comparisonInsuranceAssurance
MeaningInsurance provides protection against uncertain events such as fire, theft, accidents and flood etcAssurance provides financial coverage for events, whose happening is certain such as death
ObjectiveInsurance helps to reinstate the financial position and achieve financial stability during an unforeseen eventAssurance pays out the assured sum when the event takes place
Underlying principleInsurance is based on principle of indemnityAssurance is based on the principle of certainty
TypeGeneral insurance products such as fire insurance, marine insurance, motor insurance, health insurance and liability insurance etcLife insurance (except term insurance) such whole life assurance, annuity plans, endowment plans etc
Claim paymentCompensation or the benefit under the policy is paid only on happening of an uncertain event Compensation or the benefit under the policy is payable on occurrence of an insured event or on maturity of the policy
Contract durationGenerally for general insurance plans are of short duration which can be renewed year after year. Insurance plans with specific time duration such as term insurance which comes with a tenureLong-term contracts runs through the entire life of insured
CoverageCoverage is provided against various risks that may lead to an unforeseen situationCoverage is provided against the definite event
Premium paymentIn insurance, policyholder pays the premium periodically to avail protection against insured riskIn assurance, policyholder pays the premium periodically to receive the benefits on the happening of an event

Insurance vs Assurance

Insurance documents comes with the ‘terms and conditions’ that defines the type of losses or damages covered by the policy along with mentioning the maximum compensation that is payable by the insurance company in an uncertain or unforeseen event. Basically, in insurance contract, insured transfers the risk to the insurance company by paying premium. In return, the insurance company manages the risk by compensating the policyholder or the designated beneficiary on the occurrence of an unforeseen event or for the financial loss caused due to insured risk.

Assurance plans are life insurance plans that come with savings element attached where benefits are certainly paid by the insurance company in return for the premiums paid. Compensation will be either paid on maturity of the policy to the policyholder or on the demise of the policyholder to the beneficiary (family members) as designated by the policyholder. 

To sum up, though insurance and assurance go hand in hand, services offered by each of the product is different. Understanding the simple difference between insurance and assurance will help you better understand every product offered by insurance and financial services industry. Insurance companies offer both insurance and assurance products. You need to buy the right plan keeping in mind your needs and objectives.

Frequently Asked Questions (FAQs)

  1. What do you mean by the term ‘annuity’?An annuity is the regular stream of income paid by the insurance company after a certain period of time for policyholders who have invested in annuity plans. Under an annuity contract, a series of premium payments made by you build a corpus at the end of the policy term. And, that lump sum corpus will be paid out as a steady stream of income during retirement.
  2. Who is the beneficiary?The beneficiary is the person or entity who is eligible to receive the policy proceeds after the death of the policyholder.
  3. What is an endowment policy?An endowment policy is an assurance contract that comes with dual benefit of savings and protection. In case the policyholder dies during the policy term, the death benefit or the sum assured plus the bonus payable if any will be paid to the designated beneficiary. In case the policyholder survives the policy period, survival benefit (for the premium invested) will be paid on maturity.
  4. What are the areas that are not covered under life insurance policies?There are certain things that are generally excluded from life insurance policies. Following are the exclusions:
    • Unlawful activities
    • Self-inflicted injury, suicide or attempt to suicide
    • Sexually transmitted diseases such as HIV/AIDS
    • Alcohol and drug abuse
    • War and nuclear perils
  5. In the case of health insurance policies, what happens to the coverage once the claim is filed?After the payment of a claim, the coverage limit will be reduced to the extent of payment made. For example, let’s say health insurance is purchased for a year with a sum insured of INR 2, 00,000. You can file a claim for INR. 1, 00,000 then the limit will be reduced to INR 1, 00,000 (2, 00,000 – 1, 00,000).

Check Vehicle Insurance Status Online

Rupanjali Mitra Basu

Vehicle insurance which is also known as motor insurance is insurance for two-wheelers, cars and commercial vehicle. The main objective of these insurance plans is to provide protection against bodily injury and physical damage caused by the vehicle due to accidents and traffic collisions. Liabilities arising from bodily injury and damage caused to the third party is a compulsory coverage needed for every vehicle plying on Indian road as per the Motor Vehicle Act. Motor insurance plans come in comprehensive packages also which gives protection to the owner-driver and to the vehicle against man-made and natural calamities risk.

Furthermore, having a valid third party car & two-wheeler insurance policy is a mandatory legal requirement. These factors make buying insurance a top priority for a vehicle owner.

Check Vehicle Insurance Status Online

At the time of vehicle insurance claims, there might be confusions on how to file a claim. Moreover, you need to know how to check the status of your motor insurance policy as well as the policy of another vehicle if the vehicle is involved in the accident.

This post will share complete information on how to check vehicle insurance status and will also share resources and options that you may want to consider for your vehicle’s insurance.

Instances of claim

What you should do?

When your vehicle is damaged

This would be a own damage claim which you need to raise in your comprehensive motor insurance policy

When you harm another individual and/or third party property

This would be a third party claim. The claim would be handled by the Motor Accidents tribunal and paid by your motor insurance policy

In a hit and run

You would have to make an own damage claim on your comprehensive motor insurance policy since the details of the other vehicle would not be available 

If you suffer an accident due to another vehicle

If you suffer an accident due to another vehicle, you have two options. You can either make a third party claim on the other vehicle’s insurance policy or raise an own damage claim in your comprehensive policy

In the last instance of claim, to make a third party claim on another vehicle’s insurance policy, you need to find out the policy details of the other vehicle. This is where you would need to check the vehicle insurance status of the other vehicle.

How to Check Vehicle Insurance Status Online?

The vehicle insurance status of another vehicle can be checked online or offline. If you are a victim of unfortunate road accidents and you are having no details of vehicle insurance of the vehicle responsible for the accident, you can avail the details from Insurance Information Bureau. Insurance Information Bureau (IIB) will have the vehicle insurance details for all the insured vehicles online since April 01, 2010. However, you need to provide certain basic details. Following are the details that you need to keep ready to check vehicle insurance status online.

  • Name of the vehicle owner
  • Address of the vehicle owner
  • Email ID and mobile number
  • Vehicle registration number
  • Date of accident
  • Place of accident

Steps to check car insurance status

If a car was involved in the accident, here are the steps which you can take to check the status of car insurance through the online and offline methods – 

  • Online method

    • Log on to the website of Insurance Information Bureau
    • Click on V-Seva tab, you will be taken to a new page – Accident Vehicle Information Retrieval System
    • Fill in all the relevant details of the car responsible for the accident – name, email id, mobile number, address, registration number, and accident date and accident place. 
    • Submit the information
    • If the car details are available on IIB’s database, you will get the information on car insurance status.

  • Offline method

    You can visit the Regional Transport Authority of your area and find out the car insurance status of the vehicle which was involved in the accident. You would, however, have to provide the details of the other vehicle to check the status. 

Steps to check bike insurance status 

If a bike was involved in the accident and you want to raise a claim on another bike insurance policy, here is how you can check the policy status –

  • Online method

    • Visit the website of the Insurance Information Bureau and click the V-Seva tab
    • A new page would open which is titled Accident Vehicle Information Retrieval System
    • In this page you should provide the details of the bike which was responsible for the accident
    • Click on ‘Submit’ to submit the form after which you would be shown the insurance details of the concerned bike if it is available on the database of Insurance Information Bureau

  • Offline method

    For finding the bike insurance status offline, you would have to visit the Regional Transport Authority of your city. There you would have to provide the details of the bike which was involved in the accident and the insurance details of the bike would be shared with you.

The motor insurance industry in India

Currently, the Indian general insurance industry is growing rapidly. There are 33 general insurance companies operating in India. Motor insurance business contributes to a major percentage of over 50% to the growth of the general insurance industry. As insurance providers are coming up with customisable and personalised motor insurance plans and offering online car insurance calculators in India, the industry is growing rapidly. As per the recent findings, the total gross premium of the motor insurance industry is expected to cross 17 billion $ mark by the end of 2025. 

The motor insurance industry in India has evolved over the years. There were times when people had to wait for a few days to get the motor insurance policy to get the existing policy renewed. Now, with the digitalisation, a new motor insurance policy can be availed online within few clicks. You can find your motor insurance premiums through car insurance calculators in India which are online premium calculation tools. Renewing, filing the claims and placing the enquiry and every process related to motor insurance has become effortlessly easy. Hassle-free claim processes and efficient ways of handling claims are making it all the more simple for customers. Popular insurance companies and insurance technology firms have started mobile self-inspection service which is resulting in smooth business. Moreover, the insurance regulatory body, IRDAI (Insurance Regulatory and Development Authority of India) has come up with various regulatory changes that help in boosting the growth of motor insurance industry. IRDAI takes the data from the Insurance Information Bureau of India to determine third party motor insurance premiums. 

Renewing your vehicle insurance before the expiry date is a good idea. Apart from saving on higher premiums that would be applicable on your vehicle due to expiry you enjoy a number of other benefits too. You can use car insurance calculators in India and find your renewal premium easily. You can read more on the advantages here.

However, the hassle associated with the process is why many policyholders are not able to renew their policies on time, we at Turtlemint have made this process hassle free. Simply click on the link below and select renewal of insurance plan, enter a few details as per your requirement and browse through the most suitable plans! Our calculators are one of the best car insurance calculators in India which would also help you assess the premium before renewing the policy.

Renew Car Insurance Plans!

Motor insurance is mandatory in India for every vehicle. To track the motor insurance policies, government’s Insurance Information Bureau of India (IIB) has taken various initiatives. Let’s take a look at the details of these initiatives by the government.

Government initiatives to track motor insurance policies

Government has taken following initiative to track and check vehicle insurance policies

  • Automated daily data exchange with NIC (National Informatics India) for identification of uninsured vehicles
  • Automated daily data sharing with various state enforcement agencies
  • V seva services are available on website and mobile application for enforcement agencies, insurance companies and general public
  • Automated daily motor insurance policy
  • Stolen but subsequently insured vehicles reports for FY 2014-15, 015-16 and 2016-17
  • Canned reports for insurance companies on various dimensions

What is the Insurance Information Bureau of India (IIB)?

Insurance Information Bureau of India (IIB) was promoted by IRDAI (Insurance Regulatory and Development Authority of India) in the year 2009. Insurance Information Bureau is a data repository and analytics bureau that collects reliable, accurate and timely data for the Indian insurance sector. The main objective of setting up of Insurance Information Bureau was for data collection that can help the insurance industry to function effectively and efficiently. This was the step taken by the IRDAI, insurance regulator to protect the interest of policyholders. IIB offers its service package called V Seva that includes various services such as SMS, website and call-centre based which provides information such as accident records and how to check vehicle insurance status etc.

To sum up, retrieving vehicle insurance details online is no longer a complicated task. In case of an unfortunate accident and you have no details regarding the insurance of the concerned vehicle involved in an accident, IIB portal helps you retrieve information instantly with few basic details. Having the insurance details of the vehicle helps you place the claim with the insurance company at the earliest and receive your compensation.

If your insurance policy has expired and you’re looking to renew it or if you are buying a new one, we recommend visiting the resources linked below to understand the best solution based on your requirement and also for a hassle free purchase/renewal process at the most competitive prices.

  • Third-Party insurance
  • Zero depreciation insurance
  • Comprehensive insurance

Frequently Asked Questions (FAQs)

  1. What is the vehicle registration number?

    The registration number is a legal and unique identification number of any authorised vehicle plying on road. The registration number is issued to every new vehicle by district-level Regional Transport Authority (RTA).

  2. What does third party liability vehicle insurance cover?

    Third-party vehicle insurance provides coverage against the liabilities that may arise in an accident due to:

    • Death or bodily injury caused to third-party
    • Property damage caused to third-party
    • Accidental death caused to third-party
  3. What is the period of third-party vehicle insurance policy?

    Third-party vehicle insurance was earlier issued for one year tenure. However, post enforcements from the honourable Supreme Court, all the new vehicles now (from September 2018) are required to avail long-term third-party vehicle insurance coverage. For new cars, the coverage needs to be availed for three years and for two-wheelers the coverage has to be for five years.

  4. What is the Certificate of Insurance in vehicle insurance?

    As per Rule 141 of the Central Motor Vehicle Rules 1989, every insurance company is compulsorily required to issue a certificate of insurance in addition to your policy document at the time of purchasing and renewing the vehicle insurance policy. The certificate of insurance carrying the details of insurance policy is issued in the format laid down in Form 51 prescribed under the Central Motor Vehicle Rules, 1989.

  5. What is the process of a claim under third-party vehicle insurance?

    If you are the unfortunate victim of a road accident, you can check the vehicle insurance status of the vehicle responsible for the accident and retrieve the data from the Insurance Information Bureau website. Following is the process of claim to follow after receiving the data:

    • File a complaint with the nearest police station (this can be done before retrieving the insurance details)
    • Approach motor claims lawyer for filing the claim in a special court, the Motor Accidents Claims Tribunal. The claim can be placed in the tribunal nearest to the place of accident or nearest to the place where the victim lives
    • The court will hear both the parties involved in the accident
    • The court will examine the evidence and then decides the liability. Based on this you will receive your compensation for the loss.

What do you need to know about LIC NAV?

Ankita Sejpal

LIC is the oldest and the first life insurance company in India which was the only life insurer till the year 2000. Even after private players were allowed to enter the life insurance market, LIC remained the undefeated company in terms of customer base and market capitalisation. Even today LIC enjoys immense trust among its customers and is a leading life insurance company in the market.

LIC offers a range of life insurance plans and Unit Linked Insurance Plans (ULIPs) are one type of insurance that the company offers. ULIPs are life insurance plans which invest the premium in the capital market. The investments are, then, allowed to grow and you can earn market-linked returns. Given the potential of attractive returns and the flexibility that ULIPs allow, they are quite popular among individuals.

LIC’s New Endowment Plus is the unit-linked plan offered by LIC. The plan allows you the choice of four investment funds which are as follows –

  • Bond Fund
  • Secured Fund
  • Balanced Fund
  • Growth Fund
    You can choose any of these funds for investment as per your risk profile. While Growth Fund is an equity-oriented fund which is risky, Bond and Secured Funds are debt funds which give stable returns. Balanced Fund combines equity and debt investment to give you stability along with higher returns.
    The premiums that you pay for LIC’s New Endowment Plus plan would be invested in any of the selected funds based on the fund’s Net Asset Value (NAV). Do you know what NAV is all about?

What is LIC NAV?

LIC NAV is the value of one unit of the fund that you choose. To understand NAV further let’s understand how the fund works. The premiums which are collected from policyholders are pooled in one corpus. Thereafter, the corpus is invested in stocks and securities of different companies. Against each investment, a certain number of stock or share can be bought. When the total corpus is invested you get the total number of shares and stocks bought and that allows you to calculate the NAV. The formula for NAV calculation is as follows –

NAV = (market value of the portfolio of the fund / total number of securities bought)

Let’s understand with an example –

Suppose 100 investors contribute INR 10,000 each building a corpus of INR 10 lakhs. Now, this corpus is invested as per the following details – 

  • 10,000 shares of M/S ABC are bought @INR 20 each equalling INR 2 lakhs
  • 5000 shares of M/S XYZ are bought @ INR 40 each equalling INR 2 lakhs
  • 20,000 shares of M/S DEF are bought @ INR 30 each equalling INR 6 lakhs

Total shares bought = 35,000 

NAV = 1000000 / 35000 = INR 28.57

Features of LIC NAV:

  1. NAV represents the per-unit price of the fund
  2. When you invest a lump sum amount in the fund, the units that you can buy would depend on the fund’s NAV. The number of units would be calculated as the amount of allocated premium divided by the NAV. So, if, in the above example, you invest INR 12,000 at the NAV of INR 28.57, you would get about 420 units
  3. The value of NAV is expressed correctly to four decimal points
  4. The NAV changes every day as the value of the company’s stocks into which the portfolio has been invested change every day
  5. NAV can increase or decrease any time
  6. If the NAV increases, you get a profit when you sell. In case of a decrease, you suffer a loss
  7. There is a repurchase value and sale value associated with LIC NAV. Repurchase value is the value at which you can purchase the units of the fund. The sale value is the value at which you can sell units of the fund if you want to withdraw money from your policy

LIC NAV for the day:

Currently, LIC offers only one unit linked plan which is called LIC’s New Endowment Plus Plan. The plan was launched on 19th August 2015. The LIC NAV of the four funds of the plan as on 3rd October 2019 are as follows:

Name of the fundLIC NAV on the date of launchCurrent LIC NAV% change Repurchase ValueSale Value
Bond Fund (ULIF001201114LICNED + BND512)10.0014.337643.376%14.337614.3376
Secured Fund (ULIF002201114LICNED + SEC512)10.0013.722137.221%13.722113.7221
Balanced Fund (ULIF003201114LICNED + BAL512)10.0013.589035.89%13.589013.5890
Growth Fund (ULIF004201114LICNED + GRW512)10.0013.681036.81%13.681013.6810

 

So, understand LIC NAV before you invest in LIC’s unit-linked insurance plan. When you know the NAV you can check the units which would be allotted to you and the performance of the fund ever since its inception. The current LIC NAV shows the overall performance of the fund and should be checked before investment.

Frequently Asked Questions

  1. Do unit-linked plans guarantee returns?No, the returns under unit-linked insurance plans are not guaranteed. They depend on the NAV movement which, in turn, depends on the performance of the capital market.
  1. What are debt funds?Debt funds are those which invest in different types of fixed-income instruments. Since the portfolio consists largely of securities promising fixed returns, risks under debt funds are very low.
  1. Can I change funds if I want?Yes, ULIPs allow switching between funds wherein you can shift your investments partially or fully from one fund to another. When you switch, the LIC NAV on that day would be applicable in redeeming the units to be switched.
  1. Can I terminate the policy if the LIC NAV is reducing consistently?Termination of the policy before the stipulated tenure is called surrender. Surrender in ULIPs is allowed only after the completion of five policy years. If five years have elapsed since you bought the policy you can surrender the policy and terminate the cover. Upon termination, the units would be redeemed as per the prevalent LIC NAV on the date of surrender.
  1. Are returns from ULIPs taxable?No, the returns that you earn from ULIPs are not taxable. Neither the maturity benefit nor the death benefit is taxable in your hands under Section 10 (10D) of the Income Tax Act.

What are the various types of Health Insurance Plans in India?

Sidharth Hampanavar

Health is wealth. It’s important to secure your health even before you start planning for your life goals. When you are young, you are fit and healthy. But, health calamities can strike anytime. At any age, you need to be prepared to combat health conditions and emergencies. Considering today’s rising rate of medical inflation, getting treatment for minor illnesses can also cost huge money. Medical emergencies can make one bankrupt by depleting all the savings. Hence, health insurance is the need of the hour. 

The moment you realise the importance of health insurance, you must purchase it without any delay. When it comes to buying a health insurance policy, you are spoilt with choices available in the market. Knowing the types of health insurance plans can help you choose the right fit for you.

There are various types of health insurance plans available in India which caters to varying healthcare needs of individual and group. Let’s learn the major types of health insurance plans available in India for individuals.

  1. Mediclaim policy

    Mediclaim policy is a type of health insurance plan that is designed to cover you and your family’s hospitalisation expenses (up to the coverage availed) in the event of any medical emergencies arising out of an accident or any specific illness. Mediclaim policies do not provide comprehensive coverage as the coverage includes majorly hospitalisation expenses only. 

  2. Individual health insurance

    Individual health insurance plans provide protection to an individual against various health contingencies. Individual health insurance plans come with a cluster of facilities to provide comprehensive coverage to the policyholder. Main features of these policies include in-patient care expenses, pre and post hospitalisation expenses, domiciliary hospitalisation expenses, daycare procedures and organ donor expenses etc. Pre-existing illnesses and certain specific illnesses/treatments are covered after the completion of the waiting period. Most of the individual health plans are yearly renewable plans where you can claim up to the sum insured for the insured events during the policy period. 

    For example, let’s say you have an individual health insurance policy with INR 5 lakhs coverage. In case, you utilise INR 1 lakh for hospitalisation, the remaining INR 4 lakhs can be claimed for any such medical emergencies till the end of the policy period.

  3. Family floater health insurance

    Family floater health insurance policy is an umbrella policy that covers the entire family under a single policy. All family members can be covered under the single sum insured (which can be utilised by any insured member) for various health contingencies such as in-patient hospitalisation, day-care procedures, domiciliary hospitalisation, organ donor expenses, pre and post hospitalisation etc. Pre-existing illnesses are covered after a specific waiting period. Family floater health insurance provides comprehensive coverage to the family at a relatively cost-effective rate. Generally, you can include yourself, spouse, dependent children and dependent parents under the plan. Some policies extend the coverage for siblings and parents-in-law also.

  4. Senior citizen health insurance

    Senior citizen health insurance policy is a type of health insurance plan that is specially crafted for meeting the healthcare needs of senior citizens. Most of these plans come with an entry age of 60 years and above. The facilities offered by these plans include in-patient hospitalisation, pre and post hospitalisation, various daycare procedures and many more. Pre-existing illnesses are covered once the waiting period is over. Most of these policies come with a co-payment clause.

  5. Unit linked health plan

    Unit linked health plan is a type of health insurance plan that comes with dual benefit of health insurance and investment. These plans help build a corpus that can be used for meeting future expenses that are not covered by health insurance policies. 

  6. Group mediclaim plan

    Group mediclaim policies offer health insurance coverage to a group of people such as employees of an organisation and members of society etc. These policies not only provide tax benefits to the employer but also ensures the smooth running of the business with employee protection in the form of health insurance coverage.

  7. Critical illness plan

    Critical illness plan is a type of health insurance plan that provides definite benefit. In these plans, the policy provides lump-sum benefits to the policyholder on the diagnosis of listed critical illnesses. A number of illnesses covered may vary from policy to policy. Following are some of the major illnesses covered by most of the plans:

    • Stroke
    • Cancer
    • Major organ transplant
    • Kidney failure
    • First heart attack
    • Paralysis
    • Pulmonary arterial hypertension
    • Multiple sclerosis
    • Coronary artery bypass surgery
  8. Personal accident plan

    Personal accident plan provides a Lump Sum benefit to the owner-driver in case of accidental injury or death. Lump-sum benefit paid can be useful in meeting the income loss. Some of the health plans offer this as an additional optional rider also

  9. Hospitalisation cash benefit plan

    Hospitalisation cash benefit plan provides lump-sum benefits in case of hospitalisation for day-to-day expenses incurred relating to that. This benefit is apart from what is paid by the basic health insurance plan. Most of the health insurance plans offer hospitalisation cash benefit as an additional feature.

#6 Popular terms used in health insurance plans in India

Following are some of the popular terms used in health insurance plans in India

  1. Sum insured: It is the coverage amount or the maximum amount that the insurance company is liable to pay in case of any health eventualities during the policy period.
  2. Waiting period: Waiting period is defined period of time during which claims cannot be made for specific illnesses/treatments/ pre-existing medical conditions
  3. Sub-limits: Sub-limits are the upper limits placed by the health insurance policies on certain treatment procedures/ specific diseases.
  4. Deductible: Deductible is a fixed amount of admissible claim amount that needs to be paid by the policyholder before the insurer pays the claim amount.
  5. Free-look period: Free-look period is a time period given by the insurance company to cancel the health insurance policy without any penalty. Usually, 15 to 30 days period is given as a free look period. In case, you are not satisfied with the terms and conditions of the policy, you can cancel your policy within this timeframe by stating a valid reason for termination.
  6. Premium: Premium is the consideration that you pay to the insurance company at the time of purchase for the health insurance coverage that you are availing. 

Benefits of availing health insurance plans

Health insurance is an important necessity for today’s world. There are a host of benefits offered by the health insurance plans. Following are some of the benefits:

  1. Cost-effective investments: With minor or major health issues, obtaining health insurance coverage is difficult. If you purchase health insurance plans when you are fit, young and healthy, you can get comprehensive coverage at a lower rate of premium. Treating any medical conditions/illnesses can burn a hole in your pocket. Having health insurance works like wonder as you can avail cashless treatment at an affordable amount of premium that you pay. Hence, health insurance is an essential cost.
  2. Makes quality treatment affordable: As most of the health insurance providers are tied up with best-in-quality hospitals across the nation, having health insurance plan helps you avail timely and quality treatment without having to incur the out-of-pocket cost.
  3. Coverage for pre-existing illnesses: Almost every health insurance policy provides coverage pre-existing health conditions or issues, but with a waiting period that varies from insurer to insurer.
  4. Peace of mind: As you can secure yourself and your family from any health contingencies through health insurance, having coverage gives you peace of mind. The insurance company provides the financial backup to the extent of your sum insured when you face health emergencies.
  5. Customisation: There is an exhaustive list of health insurance plans available in the market with numerous features. There are many plans that come with additional features and benefits which allows you to customise the plan based on your individual healthcare needs.
  6. Free-bees and extra benefits: There are many free-bees offered by health insurance plans such as complementary health check-up, option to avail second e-opinion of a medical condition and many more. There are also various additional optional riders offered by the health insurance plans such daily cash allowance and critical illness cover which helps you avail enhanced benefits.
  7. Savings benefit: Health insurance plans like unit-linked health plans offer savings benefit which helps you build the corpus for future health expenses.
  8. Saves tax: Investments made by you in health insurance plans saves tax in the following ways.

    Description

    The maximum premium for self, spouse and dependent children

    Maximum premium for parents (dependent/non-dependent)

    Total deductions available under Section 80D of the IT Act

    All members of the family < 60 years of age

    INR. 25,000

    INR. 25,000

    INR. 50,000

    Self, spouse and children < 60 years age

    Either of the parents > 60 years age 

    INR. 25,000

    INR. 50,000

    INR. 75,000

    Self > 60 years age

    Spouse and children < 60 years of age

    Parents > 60 years age

    INR. 50,000

    INR. 50,000

    INR. 1,00,000

The process to apply for health insurance plans in India

You will be spoilt with choices when it comes to health insurance in India. Buying the health insurance plans online is the easiest thing which can be done within a few clicks of your computer mouse. Turtlemint offers various health insurance plans on the digital platform. Following are the simple steps to buy online on Turtlemint:

  1. Log on to Turtlemint home page
  2. Click on ‘health’ under the category of insurance
  3. Under the ‘health insurance’ category click on ‘buy new policy’
  4. Complete profile details such as gender, marital status, date of birth, income details and contact details
  5. Once you are done with creating your profile on Turtlemint page, all types of health insurance plans available will be displayed
  6. You can compare the health insurance plans offered by various insurance companies based on their features and cost.
  7. Once you zero down on the right plan, fill in the application with relevant details and proceed to make payment. It is that simple!

Documents required for buying health insurance plans

Following are the documents required to be submitted with the filled application:

  • Proof of identity – PAN Card/Voter’s ID card/ Passport/Driving license 
  • Proof of address – Aadhaar card/Voter’s ID card/ latest telephone or electricity bills/Passport/Driving license
  • Proof of age – Birth certificate/Passport/SSLC marks card
  • Passport size photographs
  • Pre-medical check-up report (if required)

Knowing the types of health insurance plans available, features offered by each plan helps in understanding your requirement better. With the complete understanding of the product, you can make a rational purchase decision to safeguard your well-being.

Frequently Asked Questions (FAQs)

  1. What is a pre-existing illness?

    Pre-existing illnesses are medical conditions that one has been suffering from/symptoms are diagnosed/ receiving medical treatment at the time of taking the health insurance policy. Today most of the health insurance policies provide coverage for pre-existing illnesses after the completion of certain waiting period which may vary from 12 months to 48 months.

  2. What is co-payment?

    Co-payment is a cost-sharing method in the health insurance policy in which the policyholder has to bear a certain specified percentage of claim amount/ fixed amount on particular illness or treatment before the insurance company pays for the claim. For example, the policy has 20% co-payment clause on any hospitalisation, then if the admissible claim amount is INR 1 lakh, the policyholder needs to pay INR 20,000 and the remaining INR 80,000 will be paid by the insurance company.

  3. What is health insurance portability?

    Health insurance portability is an ability to transfer the gained/accumulated benefits such as no claim bonus, waiting period served etc from an existing health insurer to another health insurer while switching. The reason for switching could be service concerns or cost or anything.

  4. What is the cumulative bonus in health insurance?

    Cumulative bonus is similar to that of the no claim bonus, but in cumulative bonus, the insurance company will progressively increase a certain percentage of the sum insured on every claim-free year. 

  5. What is ‘cashless facility’ in health insurance?

    A cashless facility is a form of benefit payment system wherein the insurance company compensates the healthcare treatment expenses by making a direct settlement to a network hospital where the treatment is availed.

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