Author: Ankita Sejpal

Now you don’t have to pay a huge premium for long term comprehensive motor insurance plans

Ankita Sejpal

Rohan bought a new car last month but he was concerned about the high premium which was being asked for a long term comprehensive car insurance policy. The premium was straining his budget and he did not know what to do. This is when he found that long term comprehensive policies have been discontinued by the IRDAI. He was relieved to find a considerable reduction in his premium. Do you know the changes IRDAI has made in long term comprehensive motor insurance plans?

The insurance segment is dynamic and the Insurance Regulatory and Development Authority of India (IRDAI) periodically makes changes in the structure and benefits of insurance policies. One such change was made in the year 2018 when IRDAI introduced compulsory long term motor insurance policies for cars and bikes. According to the IRDAI mandate, cars and bikes bought on or after 1st September 2018 had to carry a compulsory 3 year and 5-year third party coverage respectively. Own damage cover, however, was allowed to be offered either for 3/5 years with the third party cover or for one year in a bundled policy.

However, recently, IRDAI has withdrawn this mandate of having a long term own damage cover on cars and bikes. As per the latest changes made by IRDAI, third party coverage would be offered for 3 and 5 years for cars and bikes respectively. However, the own damage cover would be available only for one year. Thus, insurance companies would now have to sell the bundled car and bike insurance policies with long term third party cover and annual own damage cover.

Why the need for change?

In its circular where IRDAI withdrew the concept of long term own damage cover, various reasons were cited for the withdrawal. These reasons included the following –

  • The concept of long term comprehensive cover was not very feasible for policyholders who had to shell out considerably large amounts of premium when buying the policy
  • The long term comprehensive plans were not very much in demand as policyholders usually opted for bundled policies to reduce their premium outgo
  • In many cases where policyholders were unaware of the availability of bundled plans, long term comprehensive plans were miss-sold to them by insurance agents and distributors which was unethical
  • In a long term comprehensive plan, policyholders were tied up with one insurance company for the given tenure without having the flexibility of changing insurers
  • The no-claim bonus offered under long term comprehensive plans were not uniform across insurance companies. The bonus was allowed once at the time of renewal after the long term period was over. This resulted in a low bonus for policyholders who can otherwise claim no claim bonus every year on renewals. Since the bonus was low, policyholders lost on the discount available to them making long term plans unfavourably for them

What does the change mean for you?

If you have bought a new car or bike on or after 1st September 2018, you don’t have to buy a long term comprehensive policy on your vehicle. You would have to buy a bundled policy where the own damage cover would be allowed on an annual basis while the third party cover would continue long term. You can benefit from this move in the following ways –

  • Your upfront premium outgo would reduce
  • You can claim a higher no claim bonus as you renew the own damage cover every year
  • You can easily switch insurance companies if you are unsatisfied with your present insurer or if you find lower premium rates with another

So, your vehicle insurance policies would cost less and you would be able to compare and buy a standalone own damage cover for your vehicle from any insurer. This move would help you afford a motor insurance policy easily making the coverage more popular. Rohan knew that he can easily afford a bundled policy and you can too. So, the next time your motor insurance plan is up for renewal, your premium outgo would be much lower thanks to the new IRDAI regulation.

IRDAI asks insurers to Include Telemedicine as Part of Claim Settlement of Policy

Ankita Sejpal

Did you know India is the second largest online market in the world with more than 560 million users?

Internet penetration has increased considerably in the past decade and today individuals living even in the remotest part of the country have access to the internet and/or Smartphones. This has allowed individuals to access online services easily without any hassles. So, if you want to buy that trendy mobile phone or groceries, everything is available online. Even in the case of healthcare, consultations through phones and video calls as well as online consultations are steadily becoming popular. Why visit the doctor when the doctor can come to you through your computer or Smartphone? This type of medical assistance is called telemedicine which eliminates the need to physically visit a doctor for medical check-ups.

Before the Coronavirus pandemic became a cause of concern, telemedicine was in its development stage in India with few people actually making use of it. However, with the Government imposed lockdown and the threat of contagion, telemedicine is becoming popular. Understanding the feasibility and benefits of telemedicine, the Insurance Regulatory and Development Authority of India (IRDAI) has advised health and general insurance companies to allow coverage for telemedicine in their policies. Thus, plans covering medical costs, viz. health insurance plans, would now pay claims for costs incurred on treatments and consultations through telemedicine.

Introduction of the telemedicine guideline

The concept of telemedicine is relatively new and so if you have not heard about it, it’s understandable. On 25th March 2020, the Medical Council of India (MCI) issued Telemedicine Practice Guidelines which allowed registered medical practitioners to offer healthcare services through telemedicine. This was done to prevent spreading of Coronavirus through contact. The council reasoned that as healthcare workers and their patients avoid physical contact through the availability of telemedicine, the spread of the virus would be contained. The Board of Governors appointed by the MCI stated different types of technologies available under telemedicine which would allow patients to get medical attention without physical contact. This can prevent the spread of the virus keeping both doctors and patients safe from the illness.

IRDAI’s regulation on telemedicine

Taking the telemedicine guideline forward, the IRDAI directed health and general insurance companies to cover telemedicine as a part of their claim settlement. Given this pandemic, this is a welcome move by the regulator. 

Here’s what IRDAI guidelines stated –

  • Telemedicine would be a part of the insurance claim in health insurance policies if medical consultations are covered under the plan
  • A separate claim is not required to be filed for claiming the cost of telemedicine
  • Any limits or sub-limits applicable to the coverage benefits would continue to apply without any changes

Impact of the regulation

The inclusion of telemedicine in claim settlement is a beneficial move for policyholders. You can now avail telemedicine facilities for your medical issues and get covered under your health insurance plan for the costs incurred. This would help keep you safe from contracting the virus as you can avoid visiting doctors and medical practitioners for consultations.

The pandemic has brought about many changes in people’s lifestyles and you have to adapt to these changes as the disease would take some time to get under control. This measure by the IRDAI is a relief for policyholders as it gives them the freedom to get medical attention without the risk of contagion.

Top 7 things to know about COVID Health Insurance

Ankita Sejpal

The recent Coronavirus pandemic has gripped the world in its clutches and there seems to be no relief in sight. The infection is spreading across the world and more and more people are getting infected and being hospitalized for treatment. In case of hospitalization, considerable costs are incurred and many of you might find such costs unaffordable. This is where you seek out a health insurance policy to cover the hospitalization costs incurred on COVID. But do you know whether the health insurance policy would cover the relevant expenses incurred on COVID?

Insurance is a technical concept and you need to know the terms and conditions of your policy to know the coverage that you can expect from your policy. In recent times, given the spread of COVID, health insurance companies have launched COVID insurance plans. These plans are disease-specific policies that help in covering the medical costs and other financial obligations suffered due to Coronavirus. Moreover, the Insurance Regulatory and Development Authority of India (IRDAI) has ensured that your regular health insurance policies would also cover the medical costs of the COVID pandemic. So, COVID insurance has become a reality but there are various questions attached to it. Existing policyholders as well as individuals considering investing in a COVID insurance policy have some queries with regards to the Coronavirus insurance coverage that they can expect. So, let’s answer some common questions about COVID health insurance and simplify the coverage for you –

Commonly asked questions about COVID insurance in India

  1. Is the COVID-19 claim payable under my health insurance policy?

    Thanks to the guidelines issued by the IRDAI, all health insurance policies cover hospitalization costs incurred due to Coronavirus. So, if you have an existing health insurance plan and you are hospitalized after being tested positive for the virus, the associated costs of such hospitalization would be covered under your health insurance policy. Moreover, if you are under quarantine and you undergo medical treatments, the costs of such treatments would also be covered under the plan.

  2. What is the waiting period for a COVID-19 insurance claim?

    If you have an existing health insurance policy, there would be no waiting period for COVID-19 claims. However, if you buy a new indemnity health insurance plan or a new COVID insurance policy, there might be an initial waiting period of 30 days to 90 days, depending on the policy’s terms and conditions, during which COVID-19 claims would not be admissible. In some plans, the waiting period can be only for 15 days after which COVID-related claims are fully covered. If you are tested positive for the virus and are hospitalized during this initial waiting period, the claim would not be paid. 

  3. Can the hospital quarantine expenses due to COVID-19 be claimed?

    The guideline for coverage of quarantine expenses was also issued by the IRDAI. According to such guidelines, if you are quarantined for COVID and you undergo medical expenses at a registered medical facility such expenses would be reimbursed by the health insurance policy. The point to note here is that the expenses which would be covered should be medical in nature and should relate to the treatments taken during such quarantine. Any other ancillary expenses which are not related to medical treatments would not be covered.

  4. Can expenses due to quarantine because of COVID – 19 at home be claimed?

    If you are quarantined at your own home for COVID-19, expenses incurred on medical assistance would not be admissible in a normal indemnity-oriented health insurance plan. The health insurance plan covers hospitalization-related expenses and since home quarantine does not involve hospitalization, no coverage is allowed under the policy. However, if you buy a COVID insurance scheme that specifically covers Coronavirus, you get a lump sum benefit if you are tested positive for the virus. This lump sum benefit is payable whether you are hospitalized or you are quarantined at home.

  5. Is cashless treatment possible for COVID-19 in a government hospital?

    Cashless treatments under health insurance plans are allowed if you get treated in a hospital that is tied up with the insurance company. So, if the Government hospital is a networked hospital, you can avail cashless treatments for COVID-19. However, if the hospital is not tied-up with your insurance provider, claims would be settled on a reimbursement basis. You would have to bear your medical costs initially and after discharge from the hospital, the medical bills should be submitted to the health insurance company for reimbursement of the costs incurred.

  6. What is the approximate cost of treatment of COVID-19 infection?

    The cost of treating COVID-19 is not standardized. It depends on the hospital’s pricing policies, age of the patient, co-morbidities, severity of the infection, etc. In the initial stages, if you can get treated in the general ward, the expenses are lower. However, for severe complications, an ICU and a ventilator are a must which adds to the cost. Basically, considering the doctor’s fee, consumables, room rent, cost of medical tests, and treatment costs, the average daily cost of hospitalization in a private hospital can range between INR 20,000 to INR 25,000. If ICU and ventilator are added to this equation, the cost shoots up to INR 50,000 to even a lakh. So, a 10-day stay in the hospital easily amounts to lakhs and you need sufficient health insurance coverage at your disposal to meet such considerable costs. 

  7. Are specialized COVID insurance plans and normal health plans differ from one another?

    Given the rising threat of the Coronavirus pandemic, many health insurance companies have launched COVID-specific health insurance policies to cover the disease. These health insurance plans are different from the normal health insurance plans which are available in the market. Discussed below are the differences between the two –

    COVID insurance policy

    Normal health insurance policy

    This is a fixed benefit health insurance plan which pays a lump sum benefit if you test positive for Coronavirus 

    This is an indemnity oriented health insurance plan which covers the cost of hospitalisation and medical treatments only when you are hospitalised for Coronavirus infection

    The total sum insured is paid in lump sum as claim

    The claim amount depends on the actual medical costs incurred on COVID treatment

    Any financial liability can be met with the benefit received from the COVID insurance scheme

    The claim payable under the policy is only for the medical costs incurred on COVID treatment

    The policy does not cover any other medical contingency which you might suffer

    A normal health insurance policy offers a wide scope of coverage and covers other illnesses and injuries besides COVID which requires hospitalisation

    8. Thus, both COVID insurance plans and normal health insurance plans are different from one another and should not be considered the same.

health insurance

Best health insurance plans for COVID

Given the requirement of insurance coverage for meeting the costs of COVID treatments, health insurance plans with COVID coverage have become essential. Here are some of the best plans which provide Coronavirus insurance coverage under their scope of coverage –

COVID specific health plans

These plans are specially designed to cover Coronavirus and pay a claim if you test positive for the virus and undergo treatments. These plans are fixed benefit plans which pay the sum insured in a lump sum on diagnosis of COVID. Some of the best COVID insurance plans are as follows –

  1. Star Novel Coronavirus Insurance Policy 

    A fixed benefit plan offered by Star Health, the policy has a waiting period of 16 days. No pre-entrance health check-ups are needed to buy the plan and two coverage levels are allowed – INR 21,000 and INR 42,000. You can add family members to the coverage but the sum insured would be allowed on an individual basis only. The lump-sum benefit is paid if you test positive for COVID and are hospitalized for treatments.

  2. Corona Rakshak

    Another fixed benefit policy, is standardized coverage for the COVID pandemic which has been mandated by the IRDAI (Insurance Regulatory and Development Authority of India) to provide policyholders with customized coverage for COVID. The policy pays a lump sum benefit if you are hospitalized for 72 hours or more due to COVID. The sum insured available ranges between INR 50,000 to INR 2.5 lakhs. If you are aged between 18 and 65 years, you can buy the policy. The coverage tenure is 3.5 months, 6.5 months, and 9.5 months.

  3. Corona Kavach 

    Corona Kavach is also a standardized COVID insurance policy that was introduced along with Corona Rakshak as per the mandate issued by the IRDAI. The policy is an indemnity-oriented health insurance plan which covers hospitalizations due to COVID. If you suffer from COVID and are hospitalized for 24 hours or more, the policy would cover the medical costs incurred. Corona Rakshak covers all types of medical costs incurred on hospitalization without any deduction for consumables, deductibles, or co-payment. The sum insured ranges from INR 50,000 to INR 5 lakhs and the coverage tenures available are 3.5 months, 6.5 months, and 9.5 months.

Comprehensive health insurance plans – 

While the above-mentioned plans cover only COVID, the comprehensive health insurance plans are those which cover other medical contingencies too and have a wider scope of coverage. Some of the leading health insurance plans which cover the hospitalization and treatment costs of Coronavirus are as follows –

  1. HDFC ERGO Health Optima Restore

    A comprehensive health insurance policy, Optima Restore allows coverage up to INR 50 lakhs. The policy has restore benefit which restores the full sum insured during the policy year after a claim has been made. This allows you to avail of double coverage under the plan. Moreover, the multiplier benefit increases the coverage by 50% after each claim-free year without any additional premium. You can also get premium discounts if you take a specified number of steps within a policy year and stay healthy.

  2. Religare Care

    A comprehensive health insurance policy offered by Religare, Care allows coverage up to INR 6 crores. The plan has a range of inbuilt coverage benefits and also allows a variety of optional add-ons which can be chosen to enhance your coverage. Free health check-ups are allowed every year and you can also enjoy international coverage under the Care Anywhere benefit available with the plan.

  3. Star Comprehensive Insurance Policy 

    A popular family floater plan, the policy has no limit on the room rent in case of inpatient hospitalization. You can get coverage for air ambulance, domiciliary treatments, and a second medical opinion through the policy. Maternity expenses are also covered and you also get coverage for bariatric surgery which is a unique coverage feature of the plan. The policy has a wellness program too which motivates healthy living and allows premium discounts on maintaining a healthy lifestyle.

  4. Manipal Cigna ProHealth Insurance 

    The ProHealth range of insurance plans offered by Manipal Cigna comes in different variants with staggering sum insured levels. You can, therefore, choose a variant as per your coverage requirement. The policy has the benefits of sum insured restoration, international coverage, maternity coverage, and annual health check-ups. You can opt for high sum insured levels too as the plan allows coverage up to INR 1 crore.

  5. Max Bupa Health Premia:

    Health Premia is a newly launched health insurance plan offered by Max Bupa which boasts of some of the best coverage benefits. You can get coverage up to INR 3 crores under the policy and there are three variants of Silver, Gold, and Platinum. Sum insured restoration, international coverage, travel insurance coverage, health check-ups, etc. are some of the notable coverage benefits of the plan.

    6. Here’s a quick look at these plans –

    Name of the plan

    Sum insured

    Pre-existing waiting period

    Salient features

    HDFC ERGO Health Optima Restore

    INR 3 lakhs – INR 50 lakhs

    36 months

    · Free e-opinion for critical illness

    · 100% restoration of the sum insured

    · Multiplier benefit doubles the sum insured within two claim-free years

    Religare Care

    INR 4 lakhs – INR 6 crores

    48 months

    · Range of add-ons to customize the plan

    · Free annual health check-ups

    · 100% sum insured restoration

    Star Comprehensive Insurance Policy

    INR 5 lakhs – INR 25 lakhs

    48 months

    · Air ambulance cover

    · OPD cover for medical consultations

    · Bariatric surgery is covered

    · Automatic restoration of sum insured

    Manipal Cigna ProHealth Insurance

    INR 2.5 lakhs – INR 1 crore

    24-48 months depending on the plan variant selected

    · Worldwide coverage in case of an emergency

    · OPD coverage through health maintenance benefit

    · Expert opinion in a critical illness

    Max Bupa Health Premia

    INR 5 lakhs to INR 3 crores

    24 months

    · Coverage for advanced new age treatments

    · International coverage available

    · Inbuilt coverage for travel insurance

So, take your pick from the above-mentioned health insurance plans to protect yourself from the financial implication of Coronavirus infection. If you have an existing health insurance policy, your policy would cover your hospitalization and treatment expenses which incur due to Coronavirus. However, you should ensure that the coverage level of your plan is sufficient. COVID-related hospitalization can amount to lakhs and a sufficient sum insured is needed to meet the medical costs sufficiently. If your coverage is low, enhance your coverage through another health plan or through a top-up plan. You can also buy a specific COVID insurance scheme to get a lump sum benefit in case of COVID infection. 

Assess your needs and then make an informed choice. Also know the coverage benefits of your health insurance policy so that you have clarity about raising a claim for Coronavirus.

Information on Arogya Sanjeevani Health Insurance

Ankita Sejpal

A health insurance policy has become a necessary requirement in today’s times when medical costs have become too expensive to afford. The middle-class man finds himself in a financial crisis if a medical emergency strikes himself or his family members. Meeting the expensive medical costs puts a dent in his finances and a health insurance policy is needed to avoid this dent. 

Given the need for health insurance, people are increasingly becoming aware of the importance of having health insurance coverage and are investing in a comprehensive policy to cover their medical emergencies. However, insurance is a technical concept and each health insurance company promises to offer something better in its health insurance plan compared to its competitors. This confuses a layman in choosing a comprehensive yet affordable health insurance plan for himself and his family. Keeping this dilemma in view, the Insurance Regulatory and Development Authority of India (IRDAI) proposed a standard health insurance plan to be offered by all insurance companies. Therefore, in accordance with IRDAI’s proposal, the Arogya Sanjeevani health insurance policy was launched and currently, almost all insurance companies are offering the policy to individuals. Let’s understand what this policy is all about and its features –

What is the Arogya Sanjeevani policy?

The Arogya Sanjeevani health insurance plan is a standardized health insurance plan which offers uniform coverage benefits and has the same features across all insurance companies. The policy is an indemnity oriented health insurance plan which covers the medical costs incurred when you are hospitalised. Though all insurance companies offer the same uniform features and coverage benefits under the Arogya Sanjeevani policy, the premium of the policy is not the same across insurers. The premium is determined by the insurance company according to its pricing policies.

Salient features of Arogya Sanjeevani

The Arogya Sanjeevani plan is the first-ever standardized health insurance plan which is being offered in the Indian health insurance market. Here are some of the salient features of the policy which you should know about –

  • The Arogya Sanjivani policy is issued for a tenure of one year after which you can renew it for continued coverage 
  • The policy is offered both as an individual plan and a family floater plan
  • There is a no claim bonus offered by the policy if you don’t make a claim in a policy year. The bonus is a 5% increase in the sum insured without any additional premium. This bonus is cumulative in nature and it continues increasing the sum insured for each subsequent claim-free year up to a maximum of 50% of the original sum insured.
  • There is a waiting period of 4 years for pre-existing illnesses, joint replacement surgeries and age-related osteoporosis and osteoarthritis. For other specified illnesses, the waiting period is 2 years.
  • The premium of the policy varies across insurers. It depends on your age, medical history, number of members covered and the sum insured chosen 
  • No pre-entrance health check-ups are needed until 45 years of age

    • Eligibility criteria for Arogya Sanjivani

    To be able to buy an Arogya Sanjeevani policy, the following eligibility criteria should be fulfilled –

    Age criteria 

    Adults aged between 18 and 65 years can buy the plan

    Dependent children aged between 3 months and 25 years can be covered under the family floater variant

    Independent children aged 18 years and above cannot be covered under the family floater plan

    Members covered

    Individual plan – self 

    Family floater plan – self, spouse, dependent children, dependent parents, dependent parents-in-law

    Sum insured 

    INR 1 lakh to INR 5 lakhs

    Renewability 

    Lifelong renewability is allowed 

    Co-payment 

    5% of each and every claim amount

Coverage benefits of Arogya Sanjeevani plan

The Arogya Sanjeevani policy covers basic medical costs and also the costs incurred on new-age treatments in keeping with the development in medical science. The coverage benefits of the policy are as follows –

  1. Pre and post hospitalisation expenses

    Expenses incurred before being hospitalised are called pre-hospitalisation expenses. Such expenses are covered for 30 days before hospitalisation. Similarly, post hospitalisation expenses are those which are incurred on recovery after you are discharged from the hospital. Such expenses are covered for up to 60 days after discharge. 

  2. Inpatient hospitalisation 

    Inpatient hospitalisation expenses are those expenses which are incurred when you are hospitalised for 24 hours or more. These expenses include room rent, nurse’s fee, doctor’s fee, surgeon’s fee, blood, medicine, oxygen, etc. Such expenses are covered up to the sum insured. However, there is a sub-limit on room rent and ICU room rent. The limit on room rent is 2% of the sum insured subject to a maximum of INR 5,000 per day and for ICU room rent it is 5% of the sum insured subject to a maximum of INR 10,000 per day.

  3. Ambulance expenses 

    The charges incurred in hiring an ambulance to take you to the hospital are covered under the policy. The maximum coverage limit is INR 2,000 per instance of hospitalisation.

  4. Daycare treatments

    Treatments which do not require 24-hour hospitalisation due to advanced medical techniques are called daycare treatments. Such treatments are covered under the Arogya Sanjeevani plan for up to 50% of the sum insured.

  5. AYUSH treatments

    Non-allopathic treatments like Ayurveda, Unani, Homeopathy and Siddha are covered under the policy for up to a specified limit of the sum insured.

  6. Dental treatments and plastic surgery

    If due to an illness or injury, you are required to undergo dental treatments or plastic surgery, the cost of such treatments would be covered by the policy. Coverage would be allowed up to the sum insured of the plan.

  7. Cataract treatment

    Treatment for cataract would be covered for up to 25% of the sum insured subject to a maximum of INR 40,000 per eye.

  8. New age treatments

    To make the Arogya Sanjeevani policy suitable for the modern times, coverage for new-age treatments is extended under the scope of the plan. The coverage for such treatments is restricted to 50% of the sum insured. The treatments which fall under the category of new-age treatments and are covered by the plan include the following –

    • Uterine Artery Embolization and High intensity focused ultrasound (HIFU)
    • Balloon Sinuplasty 
    • Deep Brain Stimulation
    • Immunotherapy
    • Oral Chemotherapy
    • Vaporization of The Prostate
    • Intra Operative Neuro Monitoring (IONM)
    • Intravitreal Injections
    • Stem cell therapy 
    • Robotic surgeries
    • Stereotactic Radio Surgeries
    • Bronchial Thermoplasty

Exclusions under Arogya Sanjeevani

Although the scope of coverage of the Arogya Sanjeevani plan is quite extensive, the policy does have exclusions in which case claims are not paid. Common exclusions under the plan are as follows –

  1. Diagnostic costs
  2. Medical costs incurred due to activities which breached common law, participation in hazardous activities and due to substance abuse
  3. Any type of cosmetic surgery or gender change treatments
  4. Weight control treatments
  5. Treatments for vision correction
  6. Infertility treatments
  7. Medical emergencies suffered due to war
  8. Rehabilitation expenses
  9. Maternity expenses
  10. Expenses incurred on dietary supplements
  11. Medical treatments taken outside India and the associated medical expenses

Sample premium rates of Arogya Sanjeevani

Though the premium rates of the Arogya Sanjeevani policy vary across insurers, the rates can be compared. Here are the sample rates of leading insurance companies for individual health insurance coverage taken by a 35-year-old man for a sum insured of INR 5 lakhs.

Arogya Sanjeevani

Name of the company 

Name of the company 

Premium rate 

Star Health Insurance 

INR 4921

Manipal Cigna

INR 7432

SBI General Insurance

INR 4044

New India Assurance

INR 5999

Benefits of Arogya Sanjeevani

Arogya Sanjeevani health insurance policy offers the following benefits to policyholders and is therefore recommended –

  • If you are looking for an affordable yet comprehensive health insurance plan, you can opt for Arogya Sanjeevani and get yourself and your family members covered
  • The plan also covers new age modern treatments which might usually not be covered under other basic health insurance plans
  • Since the coverage features are standard, you can buy the policy online through any insurance company after comparing the premium rates charged
  • The premium paid for the Arogya Sanjeevani policy is eligible for deduction under Section 80D. The maximum deduction which you can claim is INR 25,000 which increases to INR 50,000 if you are a senior citizen.

The Arogya Sanjeevani health insurance plan is a basic and comprehensive health insurance policy which allows you coverage against medical expenses. If you are looking for affordable health insurance coverage which does not compromise on the coverage features, you can choose the policy and get yourself and your family members covered under the plan.

Everything you need to know regarding IRDAI’s extension on life insurance premium payment

Ankita Sejpal

The recent Coronavirus pandemic has brought about unprecedented changes in the economy. With the lockdown extending to prevent the spread of the virus and the emphasis on social distancing, businesses are finding out new ways of operating. Even the Insurance Regulatory and Development Authority of India (IRDAI) has been issuing new guidelines for the insurance segment in the interests of the policyholders. All the guidelines are aimed to provide reliefs to the policyholders in their insurance policies. One such guideline issued by the IRDAI was the extension of grace period allowed in paying life insurance premiums. Let’s understand the concept of grace period and what the guideline means for policyholders and insurance companies – 

What is a grace period?

Grace period is an extension allowed under a life insurance policy to pay the premium beyond the premium payment date. During the grace period the coverage does not stop. If the policyholder pays the premium within the grace period, the policy continues without any lapse. If the premium is not paid even within the grace period the policy would lapse. 

Duration of grace period

In case of policies where premiums are paid annually, quarterly or half-yearly, the insurance company allows a period of 30 or 31 days (one month) as a grace period. For instance, suppose the premium payment date in a life insurance policy is 30th June. If premiums are paid annually, the policyholder would have until 30th July to pay the due premium. The period between 30th June and 30th July would be called a grace period wherein the coverage would continue. However, if premiums are not paid within 30th July, the policy would lapse on 31st July. 

However, in policies where premiums are paid monthly, the grace period allowed is 15 days. So, if in the above example, the premiums were paid monthly, the grace period would be allowed till 15th July. From 16th July, the policy would lapse.

IRDAI’s guideline on extension of grace period

The Coronavirus pandemic resulted in a lockdown imposed by the Government since 25th March 2020. This lockdown restricted free movement and closure of businesses. Thus, policyholders whose life insurance policies were up for renewal in March found it difficult to pay the premiums due to the lockdown. Thus, keeping in mind the interest of the policyholders, IRDAI allowed an extension of the grace period allowed for premium payments. As per IRDAI’s new guideline, policyholders whose premiums were due in March 2020 can pay their life insurance premiums by 31st May 2020 and the policy would not lapse. Thus, the grace period allowed to policyholders has been extended till 31st May 2020.

Reason for extending the grace period

The sole reason behind IRDAI’s guideline to increase the grace period is to allow policyholders to renew their policies with ease. This is aimed to reduce lapsation allowing policyholders to enjoy uninterrupted coverage in their life insurance policies. If the lockdown has caused a financial crunch for individuals, they can plan their finances during the extended grace period and then pay the premium to keep their life insurance policies in force. Moreover, the extension of grace period is also aimed to avoid policyholders visiting the insurance company’s offices to renew their policies during the lockdown. IRDAI has asked insurance companies to offer online modes of premium payments to allow their customers to renew their policies online from the comfort of their own homes.

How does the guideline impact policyholders?

The IRDAI’s guideline is a welcome relief for policyholders who were worried about paying their life insurance premiums during the lockdown. For those of you who forgot the premium payment during April 2020, you can pay the premiums within the extended grace period and continue enjoying the full benefit of your policy. For those of you who had a financial crunch due to the lockdown, you can arrange for sufficient funds during the extended tenure to pay the premium and continue your policy without lapse. Thus, from the policyholders’ point of view, this extension is beneficial as it allows them to avoid lapsations.

How does the guideline impact insurance companies?

Even the insurance companies have welcomes this extension of grace period as it means better persistency for them. Persistency is measured in terms of the policies which are in force at the end of the financial year compared to the total number of policies issued by the company. A higher persistency is favourable as it provides insurance companies with revenues in the form of premiums to meet their expenses and generate a profit. Since customers are allowed a longer grace period, the policies are less likely to lapse ensuring better premium collections for insurance companies. 

The IRDAI’s new guideline on extension of the grace period, therefore, is beneficial for both policyholders and insurance companies. The measure was needed during this uncertain time of nationwide lockdown and it is expected that it would benefit the insurance segment.

Frequently Asked Questions

  1. Does the extension of grace period is applicable for health insurance policies as well?

    No, this particular guideline is applicable only for life insurance policies. For health insurance policies, if the premium payment date fell between 25th March 2020 and 3rd May 2020, the grace period allowed is up to 15th May 2020. (Source: Economic times) 

  2. What would happen if the insured dies during this extended grace period without paying the due premium?

    During the grace period, the coverage remains intact in a life insurance plan. Thus, if the insured dies during the extended grace period, the insurance company would pay the death benefit after deducting the premium amount which is due.

  3. If I pay the premium within the extended grace period, would I be charged an additional interest?

    No, payment of premium within the extended due date would not incur any additional interest payment. You would just have to pay the premium amount.

  4. What would happen if the policy matures during the extended grace period and the premium is unpaid?

    In case of maturity of the policy, the maturity benefit would be paid by the insurance company after deducting the premium which is due.

ULIP vs. Mutual Funds – Where Should You Invest (Comparison)

Ankita Sejpal

When it comes to diversified market-linked investment avenues which promise attractive returns while at the same time diversifying risks, ULIPs and mutual funds are spoken in the same breath. Both these investment avenues invest your money in market-linked funds helping you to earn market-linked returns. But then the important question arises – which one is better?

Let’s analyse ULIP vs Mutual Funds:

An overview of ULIPs:

ULIPs stands for Unit Linked Insurance Plans. These plans offer you investment options as well as insurance cover. You can choose the amount of premium that you want to pay, premium paying tenure as well as the policy tenure. Based on these parameters, your sum assured would be calculated. The premiums that you pay would be invested in a fund available under the plan. You have control over the choice of fund you want to invest your premium.

You have the option to choose one or multiple funds from the ones available. Thereafter, the premiums are directed to the selected fund(s) as per your choice. The investment grows as per the performance of the portfolio of the selected fund.

In case of death of the life insured during the term of the plan, either the higher of the promised sum assured or the fund value or both are paid. If the plan matures, the fund value is paid to the policyholder and the policy terminates. There are other options and variants of ULIPs available as well.

An overview of Mutual Funds:

Mutual funds are market-linked investment tools which collect investments from multiple investors and create a corpus. This corpus is then invested in different stocks and securities as per the objective of the fund. For instance, debt mutual funds invest 65% or more of their corpus in debt related instruments while in equity funds equity is the primary investment. Thereafter, the value of the portfolio of the scheme grows as per the performance of the stocks into which the scheme invested. You can redeem your investments anytime except in case of ELSS (Equity Linked Savings Scheme) where the lock-in period is 3 years.

ULIP vs Mutual Funds:

Here is a comparative analysis: ULIP vs Mutual Fund investments –

Differences ULIPsMutual Funds
Benefits offeredULIPs offer both investment and insuranceMutual Funds offer only investment
Risk CoverULIPs have a risk cover for the investment amountMutual Funds do not have any insurance for the same
Mode of investmentIn ULIPs, Premiums can be paid throughout the term of the plan, for a limited duration or at onceMutual Fund Investments can be done in one lump sum or in monthly instalments through SIP (Systematic Investment Plan)
Liquidity / Lock-inIn ULIPs, Once the policy is bought there is a lock-in period of 5 years. The policy cannot be surrendered during this lock-in period. Partial withdrawals are also not allowed during this periodIn Mutual Fund investment, it is completely liquid. You can withdraw partially or fully any time that you want. Only under ELSS schemes, there is a lock-in period of 3 years during which there can be no withdrawals or redemption
TransparencyULIPs have a complex structure and hence the structure is not completely transparent. They have a less transparent structure of the entire asset allocation and the stock holding of the fundMutual Funds have a transparent structure of the expenses and the holding structure
Tax AdvantageOn investment- In ULIPs, the premiums paid are allowed as a deduction up to INR 1.5 lakhs under section 80C.
Maturity- The maturity or death benefit received, partial withdrawals and surrender benefits are all tax-free in your hands under section 10(10)D.		On investment- In Mutual Fund Investments only ELSS schemes qualify for deduction under Section 80C up to INR 1.5 lakhs. Other Mutual Funds have no tax deduction on investment.
Returns- Returns earned are taxable in most instances depending on the type of investment you have done.
TypesULIPs can be offered as children plans, pension plans or pure investment plansMutual funds come under different types like equity funds, debt funds, balanced funds, liquid funds, etc.
Investment OptionsULIPs have equity, debt, liquid as well as balanced fund options to choose fromEach Mutual Fund has a specific investment objective and the investment ranges from liquid to debt to balanced to equity options. An investor needs to choose the scheme based on his risk appetite
Risk profileULIPs have a range of fund options under them from equity to debt. You can invest in a mix of funds as per your risk profile. You can invest in both debt and equity funds under the same plan as per your risk appetite. ULIPs, therefore, have lower investment risksIn Mutual Fund Investments, the risk profile of a mutual fund scheme depends on the type of fund you choose. Equity funds have very high risks while debt funds have very low risks. Balanced funds have moderate risks. You would have to choose different mutual fund schemes to invest as per your varying risk profile.
ReturnsIn ULIPs, the returns depend on the performance of the fund into which you have invested. Fund performance, in turn, depends on the performance of the capital market. Nowadays, in many ULIPs, loyalty additions, wealth boosters, etc. are added besides market-linked returns. This ensures higher returns on your investmentsMutual fund returns also depend on the performance of the capital market. However, there are no wealth boosters or loyalty additions added to the fund value like in case of ULIPs.
Charges involvedInvestments in ULIPs are subject to a range of charges like allocation fee, administration fee, fund management charge, mortality charge, etc. These charges increase the total charge deducted from the fund valueIn Mutual Funds, the charges are lower than ULIPs. They are capped at a specified level by the capital market regulator SEBI
The facility of additional coverage benefitsULIPs allow you to enhance your coverage benefit through ridersIn Mutual Fund Investments, there are no riders available
Switching and its tax implicationIn a ULIP, you can switch between the available fund options as and when you want. This switching is free of cost up to a specified level.
Moreover, when you switch, there is no tax implication on the amount switched as you do not withdraw from your investments. There is no long term or short term capital gain taxation on switching		In Mutual Fund Investments, if you want to switch, you would have to withdraw from your chosen mutual fund scheme and then invest in another. Withdrawal from the scheme would be considered as redemption and it would attract capital gains tax
Thus, to switch between mutual fund schemes, you need to consider taxation as well as exit loads before executing

Which one to choose: ULIP vs mutual fund?

Both ULIPs and mutual funds have their respective pros and cons. The ideal choice would, therefore, depend on your requirements.

ULIP vs Mutual Fund: When to invest in ULIP?

ULIPs would be a good choice in the following instances –

  • If you want to create a good corpus over a long term period
  • If you have a dynamic risk appetite and would want to actively manage your investments through switching as per your changing risk profile
  • If you need insurance cover for creating financial security for your family
  • If you want to save taxes on your investments as well as the benefits received

ULIP vs Mutual Fund: When to invest in Mutual Fund?

On the other hand, mutual funds would be a better bet in the following cases –

  • If you need easy liquidity from your investments
  • If you have a high-risk appetite and don’t mind staying invested in volatile market conditions
  • If you have a term insurance plan for your insurance needs and you want to maximise your wealth through investments
  • If you want to get lower charges on your investments
  • If you don’t mind paying capital gains tax on the returns earned from your mutual fund investments

Questions to be asked before investing:

The above-mentioned circumstances tell you when to invest in ULIPs and when to invest in mutual funds. Whichever you choose, there are a few questions which you should ask before you invest. Investing in either ULIPs or mutual funds should be done only when you get sufficient answers for the following questions –

  1. What is the amount of investment required?
  2. For how long would you be able to invest?
  3. What is your risk profile?
  4. What are the historical returns yielded by the ULIPs or mutual fund schemes?
  5. What are the charges which would be deducted from your investments?
  6. Would the investment, ULIPs or mutual funds, create the financial corpus required for your financial goal?
  7. What would be the tax implications of investment done and returns earned from the schemes?
  8. How can you manage your investments when the capital market becomes volatile?
  9. What are the arrangements for premature closure of the scheme?

Assess ULIPs vs mutual funds based on these questions and then invest in either or both of the schemes as per your suitability.

A systematic way to invest in both: ULIPs vs mutual funds

While both ULIPs and mutual funds have their respective pros and cons, they prove to be good investment avenues. You can, in fact, balance the benefits of both these investment options and include them in your financial portfolio. So, to enjoy the benefits of both ULIPs and mutual funds here’s what you can do –

  • Choose ULIPs for your life goals

    Specific life goals like child planning and retirement planning can be planned through ULIPs. You can invest in a child ULIP plan or a pension ULIP plan for these goals. A child ULIP plan would ensure a financial corpus even in case of your premature death and would, therefore, create funds for your child’s future. A pension ULIP, on the other hand, would create an inflation-adjusted corpus which would pay your lifelong income after you retire. So, take care of these financial goals with ULIPs and also enjoy tax benefits on your investments and returns.

  • Buy term insurance for coverage needs

    Though ULIPs provide life insurance coverage, the coverage might not prove sufficient given the rising trend of inflation. So, invest in a term insurance plan with a high sum assured at lower premiums. The plan would fulfil your insurance protection needs and create a financial corpus for your family in your absence.

  • Choose mutual funds for investment returns

    Once your financial goals and protection needs are taken care of, you can choose mutual fund schemes for wealth maximization. Choose a scheme based on your risk appetite. Invest in ELSS schemes to get tax benefits on your investments. Choose SIPs for regular investments in a disciplined manner. If you invest in mutual funds over a long term horizon, you would get attractive returns.

    ULIPs and mutual funds can, therefore, be used together to create a diversified and tax-efficient financial portfolio which also yields good returns.

    So, when choosing the preferred investment avenue, understand the differences between ULIP vs mutual funds. Then, based on your suitability, choose the most relevant investment avenue for your investment needs and build up a good corpus. You can see the entire range of ULIPs on https://turtlemint-stage.dreamhosters.com/life-insurance and then choose the one which best suits your needs.

Complete Guide on Credit Insurance – Coverage, Claims & Exclusions

Ankita Sejpal

Businesses and companies work on credit. The raw materials that they buy and the finished goods which are sold are sold in large quantities. Buyers seldom pay cash upfront for the goods bought from businesses. They buy the goods on credit and then repay their debt over a specified period. But what would happen if the buyer dies or becomes financially insolvent? Who would pay off the debts owed by the buyer?

In case of death or bankruptcy of buyers, businesses stand to face considerable financial losses as they are unable to generate revenue from their sales. These financial losses can weaken the financial position of the business and that is why credit insurance policies are available in the market. Let’s understand what these policies are and how they benefit businesses –

What is credit insurance?

A credit insurance policy is a policy which covers the credit risk faced by businesses. If businesses have debtors and the debtors are unable to clear their dues due to death, disability or insolvency, the credit insurance policy pays the outstanding dues and helps businesses generate revenue. These policies, therefore, protect businesses from bad debts having an adverse impact on their profitability.

Types of credit insurance policies

Credit insurance policies can be taken by businesses and well as by individuals availing a loan. can be of the following types –

  1. Credit life insurance

    Under this policy, credit risk due to the death of the debtor is covered. If the debtor dies before paying off his debts, the policy would pay the outstanding debt.

  1. Credit disability insurance

    If the debtor becomes disabled due to which repayment of the debts is not possible, the policy would cover the repayment.

  1. Credit involuntary employment insurance

    If the debtor becomes unemployed and loses his source of income he might not be able to repay his liability. The policy would cover such contingencies and pay the debt on the debtor’s behalf.

  1. Credit property insurance

    Under this policy, the property which is mortgaged against the debt is protected from theft, damage or any other type of loss.

  1. Trade credit insurance

    This policy is specifically designed for businesses and protects businesses from bad debts due to non-repayment by debtors

Coverage under credit insurance plans

Credit insurance policies cover two main types of risks which are classified as commercial and political risks. Here’s what these risks include –

  1. Commercial risks

    Commercial risks include insolvency or bankruptcy of the buyer as well as non-payment of dues by the buyer.

  1. Political risks

    Political risks are risks faced due to political circumstances like the following –

    • Cancelling of the import license
    • War, riots, revolution, rebellion, etc.
    • Any Government decision which prevents payment of dues
    • A general moratorium (repayment holiday) granted by the Government of the debtor’s country
    • Any type of political events which do not allow payment of dues
    • Non-payment by the Government who is the buyer
    • Non-payment because of natural calamities in the buyer’s city or country

What is not covered under credit insurance?

Credit insurance policies do not cover repayment defaults due to the following instances –

  1. Trade disputes
  2. Sale to an individual using the goods and services for non-professional work
  3. If payments have been received in advance
  4. Loss because of fluctuations in foreign currency exchange rates
  5. Nuclear perils
  6. Sales done under irrevocable Letter of Credit
  7. When the goods are not accepted by the buyer

How does credit insurance work?

In case of credit insurance, the organisation wanting to avail coverage for its credit risks would have to approach the insurance company for coverage. The company covers a percentage of the exposed risks. This means that the highest outstanding debt which the organisation has from a debtor can be covered up to a specified percentage which is usually 70% or 80%. The premium is then determined and paid by the organisation seeking insurance. Thereafter, in case of any payment default which is covered under the credit insurance policy, the insurance company would settle the bills on behalf of the defaulting buyer.

Making a claim under credit insurance

To make a claim under a credit insurance policy you should inform the insurance company immediately of the repayment default. The claim form would have to be filled providing details of the loss suffered and submitted to the insurance company. A police FIR might also be needed in certain cases. The insurance company would, then, verify the details of the claim form and check the documents. If everything is found in order, the claim would be settled.

Documents needed for credit insurance claims

For making a valid claim in your credit insurance policy the following documents would be required –

  • Claim form
  • Police FIR
  • Books of accounts which show the debtor’s balance
  • Bank account details of the policyholder
  • ID proof
  • Any other document that might be required

Benefits of buying credit insurance plans

Credit insurance policies provide definite benefits to businesses which face credit risks. These benefits include the following –

  1. By paying the dues owed by debtors, the policy ensures that businesses get the payment for the goods that they have sold
  2. Credit insurance policies limit the bad debts of businesses and help in maintaining the profitability
  3. Since businesses don’t suffer from repayment losses, their market value is also maintained
  4. The policy provides financial security to organisations which are in the business of selling goods and services on credit to individuals in India as well as abroad

Since credit insurance is beneficial, you should invest in a good policy for covering the credit risks faced by your business. Non-repayment of dues might cause a serious financial setback for your company and if you are in the initial stages such setbacks can result in a shutdown. A credit insurance policy comes in handy and takes care of repayment related risks thereby indemnifying your business in case of losses.

Frequently Asked Questions

  1. How does a credit insurance policy help in borrowing by businesses?

    Businesses often avail loans based on their trade receivables. When the trade receivables are secured financial institutions can offer loans to businesses on attractive terms.

  1. What is the exchange rate fluctuation?

    The currency rates change frequently and if rates become volatile due to some problems, the business faces risk. This risk is covered under credit insurance plans.

Life Insurance & General Insurance Companies in India

Ankita Sejpal

Insurance sector in India plays a crucial role in the economic growth of the country. The sector is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). The sector has grown majorly over the last few years with a diverse number of advanced products. Indian insurance sector majorly categorised into two types of companies – life insurance companies and non-life (general) insurance companies. Currently, there are 24 life insurance companies and 34 general insurance companies operating in India. As per IBEF (India Brand Equity Foundation) report, the Indian insurance industry is expected to grow to US$ 280 billion by FY 2020, owing to the solid economic growth and higher personal disposable income in the country. Life insurance sector in India is expected to grow by 12%-15% on an annual basis for the next three to five years. With approval from the Government to increase FDI (Foreign Direct Investment) into the Indian insurance sector from 26% to 49% would help in attracting more and more investments into the sector for further growth.

Overall insurance penetration in India in the year 2017 was 3.69% which leaves more opportunity to reach uninsured/underinsured segment. There were 10 merger and acquisition deals in the insurance sector worth US$ 903 million in the year 2017. Enrolments under Pradhan Mantri Suraksha Bima Yojana has reached 130.41 million in FY 2017-18. National Health Protection Scheme, Ayushman Bharat announced in the budget 2018-19 is expected to offer health cover to 11 crore vulnerable families in India which can boost health insurance penetration to over 50% as per the report. In this article, let’s get a brief understanding of life insurance and general insurance companies operating in India.

Life Insurance Companies in India

Below is the list of life insurance companies operating in India currently, which are registered by the Insurance Regulatory and Development Authority of India (IRDAI)

Serial NumberLife Insurance Company NameClaim Settlement Ratio
1Life Insurance Corporation of India98.04%
2HDFC Life Insurance Company Limited97.80%
3Max Life Insurance Company Limited98.26%
4ICICI Prudential Life Insurance Company Limited97.88%
5Kotak Mahindra Life Insurance Company Limited93.72%
6Aditya Birla Sun Life Insurance Company Limited96.38%
7TATA AIA Life Insurance Company Limited98.00%
8SBI Life Insurance Company Limited96.76%
9Exide Life Insurance Company Limited96.81%
10Bajaj Allianz Life Insurance Company Limited92.04%
11PNB MetLife Life Insurance Company Limited91.12%
12Reliance Nippon Life Insurance Company Limited95.17%
13Aviva Life Insurance Company Limited94.45%
14Sahara India Life Insurance Company Limited82.74%
15Shriram Life Insurance Company Limited80.23%
16Bharti AXA Life Insurance Company Limited96.85%
17Future Generali Life Insurance Company Limited93.11%
18IDBI Federal Life Insurance Company Limited91.99%
19Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited95.22%
20Aegon Life Insurance Company Limited95.87%
21DHFL Pramerica Life Insurance Company Limited96.82%
22Star Union Dai-Ichi Life Insurance Company Limited92.28%
23IndiaFirst Life Insurance Company Limited89.83%
24Edelweiss Tokio Life Insurance Company Limited95.24%

Life Insurance Companies in India – An Overview

  1. Life Insurance Corporation of India

    Life Insurance Corporation of India, popularly known as LIC is the only public sector life insurance company operating in the Indian market. It is the largest and the oldest life insurance company in India which was established in the year 1956. LIC being the most trusted life insurance brand serves more than 250 million policyholders across the country. Today, LIC makes insurance accessible for people in every corner of the country with its huge network of 2048 branches, 113 divisional offices, 1381 satellite offices and 8 zonal offices. LIC has crossed several milestones with its diverse product portfolio that includes numerous insurance plans starting from the protection plan, savings plan, a pension plan to unit-linked investment plans and many more.

  1. HDFC Life Insurance Company Limited

    HDFC Life Insurance is one of the leading private insurers in India that was established in the year 2000. The company was formed by coming together of HDFC Ltd, India’s leading housing finance company and Standard Life Aberdeen, a global investment company. The company has its presence all over the country with 412+ branches and 265 bancassurance partners. HDFC Life offers a diverse range of products that currently include 38 individuals, 11 group products along with 8 optional riders to cater to the unique needs of various customer segments. HDFC life has been consistently awarded for its contribution to the insurance sector.

  1. Max Life Insurance Company Limited

    Max Life Insurance Company is one of the leading insurers best known for offering simpler and affordable insurance solutions to various customer segments. Founded in the year 2000, Max Life is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Company. With 239+ branches across the country, multi-distribution channels and strong digital presence, Max Life makes insurance accessible and affordable for every Indian. It offers a wide array of insurance products such as term plans, child plans, savings plans, growth plans, pension plans, group plans and strategic products to cater to various customer segments.

  1. ICICI Prudential Life Insurance Company Limited

    ICICI Prudential Life Insurance is promoted by one of the leading private banks in India, ICICI Bank Limited and Prudential Corporation Holdings Limited, British Multinational Life Insurance Company. Founded in the year 2001, ICICI Prudential Life has Asset under Management of INR 1,604.10 billion as on 31st March 2019. With a customer-centric approach, digital presence, multi-distribution channels and a wide network of branches, ICICI Prudential Life has been offering a diverse range of insurance solutions to individual and group customer segments. The company has received many awards and accolades for its consistent performance in the field of insurance.

  1. Kotak Mahindra Life Insurance Company Limited

    Kotak Mahindra Life Insurance Company is one of the fastest-growing insurance company that covers around 20 million lives in across India. Kotak Mahindra Bank, one of the leading banks in India is a parent company of Kotak Mahindra Life Insurance Company Limited. The company has 32 products including 10 unit-linked investment plans, 9 group products and 18 rider options. The company’s assets under management are INR 25,936 crore as on 31 March 2019.

  1. Aditya Birla Sun Life Insurance Company Limited

    Aditya Birla Sun Life Insurance Company founded in the year 2000 is a subsidiary of Aditya Birla Capital Limited and a joint venture between the Aditya Birla Group and Sun Life Financial Inc., Canada based international financial services company. The company offers a wide array of insurance solutions such as pure protection plans, wealth and savings plans, children’s future plans, pension plans, health plans and unit-linked insurance plans. With the total of assets under management of INR 4, 10,110 million as on 30th June 2019, ABSLI serves more than 16 lakhs customers. The company has a countrywide presence through 425 branches, strong online presence, 6 distribution channels, 9 bancassurance partners and more than 85,000 direct selling agents and brokers.

  1. TATA AIA Life Insurance Company Limited

    TATA AIA Life Insurance Company is a joint venture between Tata Sons Pvt Ltd, a prominent business group in India and AIA Group, the largest pan-Asian life insurance group in the world. Founded in the year 2001, Tata AIA Life has high standards for services, excellent digital offerings and a huge network of branches and distribution channels. The company offers numerous innovative insurance solutions that include protection plans, wealth plans, child plans, savings plans, retirement plans, health plans, group insurance plans and micro-insurance solutions.

  1. SBI Life Insurance Company Limited

    SBI Life Insurance Company, founded in the year 2001 is a joint venture between State Bank of India, India’s largest state-owned bank and BNP Paribas Cardiff, French multinational bank and financial services company. SBI Life Insurance which was mainly into bancassurance business is expanding its insurance business through multi-distribution channels including digital solutions. The company offers various individual and group life insurance products to cater to the needs of people in the country.

  1. Exide Life Insurance Company Limited

    Exide Life Insurance Company is owned by Exide Industries, India’s largest manufacturer of automotive and lead-acid batteries in India and fourth-largest in the world. With asset under management of INR 11,015 crores and 15 lakhs+ customers, Exide Life Insurance caters to varying insurance needs of people. With a customer-centric approach, Exide Life offers numerous insurance solutions such as protection plans, investment and savings plans, retirement plans and group insurance solutions.

  1. Bajaj Allianz Life Insurance Company Limited

    Bajaj Allianz Life Insurance Company is a joint venture between Bajaj Finserv Limited and Allianz SE, World’s leading Asset Management Company. The company was formed in the year 2001, which has a pan-India presence today with 750+ branches. Bajaj Allianz Life Insurance offers a wide variety of insurance solutions to individual and group segments which includes protection plans, ULIPs, savings plan, pension plan and child plans etc.

  1. PNB MetLife Life Insurance Company Limited

    PNB MetLife Life Insurance is one of the leading private insurers operating in India since 2001. MetLife International Holdings LLC (MIHL), Punjab National Bank Limited (PNB) and Jammu & Kashmir Bank Limited (JKB) are the majority shareholders in the company. Through its strong bank partnership, PNB MetLife has its presence all over the country with access to over 100 million customers. PNB MetLife offers insurance solutions suitable for each phase of human life with its diverse product portfolio of 16 savings product, 13 protection plans, 5 pension plans and 8 other optional riders.

  1. Reliance Nippon Life Insurance Company Limited

    Reliance Nippon Life Insurance Company is a joint venture between Reliance Capital, a leading financial services company in India and Nippon Life, the leading life insurance company in Japan. Brand Equity’s Most Trusted Brands Survey, 2018 has rated Reliance Nippon Life as the 3rd most trusted life insurance brand in India. The company has an extensive network of 727 branches and assets under management worth INR 20,281 Cr. The company offers numerous innovative insurance solutions such as protection, retirement, savings, child and health plans to individual and corporate clients.

  1. Aviva Life Insurance Company Limited

    Aviva Life Insurance is a joint venture between Aviva plc. The UK based Assurance Company and Dabur group of India. Founded in the year 2002, the company has a wide distribution network, 63+ branches, and strong sales force and bancassurance partners. Aviva Life has introduced various innovative life insurance products in the space of unit-linked insurance plans, protection plans and child plans. The company has been awarded many times for its continued contribution to the Indian insurance industry.

  1. Sahara India Life Insurance Company Limited

    Founded in the year 2004, Sahara India Life Insurance is the wholly Indian-owned private life insurance company. The company offers a wide array of insurance products in its portfolio to cater to the insurance needs of individual and group customer segment. Products include endowment plans, protection plans, money back, micro insurance, annuity plans, unit-linked insurance plans and group insurance plans.

  1. Shriram Life Insurance Company Limited

    Shriram Life Insurance Company, founded in the year 2005 is a joint venture between Chennai based Shriram Group and Sanlam, a leading financial services company based in South Africa. The company has more than 528 branches across the country with 75,000 agents working all over India. The company is known to offer cost-effective and tailor-made insurance plans for various customer segments. The products include term plans, life plans, ULIPs, women-specific plans, savings plans, child plans, pension plans, group plans and micro plans.

  1. Bharti AXA Life Insurance Company Limited

    Bharti AXA Life Insurance is a joint venture between Bharti Enterprises, Indian business conglomerate and AXA Group, MNC bank and investment firm based in Paris. The company has over 238 branches across the country with 10.50 lakhs customer base. The company offers 5 protection and health plans, 20 savings plans, 3 investment plans, 8 group plans and 4 optional riders. The product portfolio also includes online offerings of the company.

  1. Future Generali Life Insurance Company Limited

    Future Generali Life Insurance Company is a joint venture between two leading groups: Future Group and Generali Group. The company’s operation is spread across the country with 104 branches covering 117 major cities. The company has a customer base of 13.8 lakhs policyholders. Future Generali Life is known to offer simplified insurance solutions to individuals and corporate customers with its diverse product portfolio.

  1. IDBI Federal Life Insurance Company Limited

    IDBI Federal Life Insurance Company is a joint venture between IDBI Bank, Federal Bank, India’s leading private sector banks and Ageas, a Europe based multinational insurance company. Established in the year 2006, IDBI Federal Life Insurance is built on strong foundations. The company has received many awards and accolades for the excellent services and innovative insurance solutions that it provides. Various product categories include term plans, child plans, savings plans, retirement solutions, ULIPs and group plans.

  1. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

    Founded in the year 2008, Canara HSBC Oriental Bank of Commerce Life Insurance is a joint venture between Canara Bank, Oriental Bank of Commerce, two of the largest public sector banks in India and HSBC Insurance (Asia Pacific) Holdings Limited. With its huge network of 10,000+ bank branches, the company has a customer base of over 115 million. The comprehensive product portfolio of the company caters to the unique and varying needs of people all over the country.

  1. Aegon Life Insurance Company Limited

    Established in the year 2008, Aegon Life Insurance Company is a joint venture between Aegon N.V, Dutch multinational insurance and asset management company and The Times Group, India’s largest media conglomerates. With its strong digital presence, domestic and global market expertise, the company is offering various new-age insurance solutions to the people of India.

  1. DHFL Pramerica Life Insurance Company Limited

    Founded in the year 2013, DPLI is a joint venture between DHFL Investments Limited and Prudential International Insurance Holdings Limited, based in the US. With 19 million customer and 144 branches across the country, the company offers a wide range of insurance solutions to both individual and group customer segment. The asset under management of the company currently stands at INR 4,716.2 Cr.

  1. Star Union Dai-Ichi Life Insurance Company Limited

    SUD Life is a joint venture of Bank of India, Union Bank of India, two leading public sector banks in India and Dai-Ichi-Life, leading life insurer in Japan. With a huge network of 11,000+ bank branches and 64 million customer base, SUD Life is offering various long-term protection and savings plans for the people of India.

  1. IndiaFirst Life Insurance Company Limited

    Founded in the year 2009, IndiaFirst Life Insurance Company is a joint venture between Bank of Baroda, Andhra Bank – two of the public sector banks in India and Legal & General, UK based financial and investment company. The company follows the bancassurance business model as the insurance solutions are offered through a huge network of promoter bank branches. The company offers exclusive insurance and savings products to meet customer’s future financial and life goals.

  1. Edelweiss Tokio Life Insurance Company Limited

    Established in the year 2011, the company is a joint venture between Edelweiss Financial Services Limited, India’s popular financial services company and Tokio Marine Holdings Inc., the oldest and largest insurer in Japan. With a customer-centric approach, the company offers quality insurance solution at cost-effective rates. The company offers a diverse range of products which includes exclusive online plans, term plans, retirement plans, investment plans, child plans, health plans, group and micro plans.

General Insurance Companies in India

Here is a list of Incurred Claim Ratio of General Insurance Companies of India for 2017-18, as per the IRDA Annual Report 2017-18:

Serial NumberGeneral Insurance Company NameClaim Settlement Ratio
1Acko General Insurance Company Limited-28.69%
2Aditya Birla Health Insurance Company Limited89.05%
3Agriculture Insurance Company of India Limited102.23%
4Apollo Munich Health Insurance Company Limited62.47%
5Bajaj Allianz General Insurance Company Limited66.72%
6Bharti AXA General Insurance Company Limited82.97%
7Cholamandalam MS General Insurance Company Limited72.54%
8Manipal Cigna Health Insurance Company Limited46.29%
9DHFL General Insurance Limited4.09%
10Edelweiss General Insurance Company Limited70.09%
11ECGC Limited135.67%
12Future Generali India Insurance Company Limited75.72%
13Go Digit General Insurance Limited93.95%
14HDFC ERGO General Insurance Company Limited74.36%
15ICICI Lombard General Insurance Company Limited76.89%
16IFFCO TOKIO General Insurance Company Limited82.89%
17Kotak Mahindra General Insurance Company Limited71.66%
18Liberty General Insurance Limited69.60%
19Magma HDI General Insurance Company Limited82.92%
20Max Bupa Health Insurance Company Limited50.19%
21National Insurance Company Limited114.24%
22Raheja QBE General Insurance Company Limited76.46%
23Reliance General Insurance Company Limited84.71%
24Reliance Health Insurance Limited106.54%
25Religare Health Insurance Company Limited51.97%
26Royal Sundaram General Insurance Company Limited80.41%
27SBI General Insurance Company Limited71.47%
28Shriram General Insurance Company Limited93.75%
29Star Health & Allied Insurance Company Limited81.78%
30Tata AIG General Insurance Company Limited71.12%
31The New India Assurance Company Limited85.66%
32The Oriental Insurance Company Limited85.39%
33United India Insurance Company Limited94.38%
34Universal Sompo General Insurance Company Limited56.30%

Source: IRDAI Annual Report

General Insurance Companies in India – an Overview

  1. Acko General Insurance Company Limited

    Founded in the year 2016, Acko General Insurance Company is an online-led general insurance company. The digital offerings of the company include motor insurance, mobile insurance and in-trip domestic insurance. Acko is partnered with Ola cabs and Amazon for in-trip domestic insurance and mobile insurance respectively.

  1. Aditya Birla Health Insurance Company Limited

    Aditya Birla Health Insurance is a popular health insurance company that has a presence in 650+ cities in India. With a robust background of Aditya Birla group, 5700+ network hospitals and various other unique features and benefits, the company offers diverse health insurance plans to cater to unique requirements of people.

  1. Agriculture Insurance Company of India Limited

    AIC is a public sector insurance company that was founded in 2002 to primarily offer crop insurance. It is the biggest crop insurance company in the world that covers around 20 million farmers. The primary focus of the company is to provide financial support to the farmers when there is a loss due to natural calamities and various other risks.

  1. Apollo Munich Health Insurance Company Limited

    Apollo Munich Health Insurance is a joint venture between Apollo Hospitals Group, a pioneer in private healthcare in India and Munich Re, a Germany based leading reinsurance company. Founded in the year 2007, the company primarily focuses on health insurance offerings. With 5000+ network hospitals, super-efficient claim processes and extensive benefits and features, Apollo Munich offers a wide array of health insurance plans for individuals and families. The company also offers various types of travel insurance and personal accident plans.

  1. Bajaj Allianz General Insurance Company Limited

    Bajaj Allianz General Insurance Company is a joint venture of Bajaj Finserv Limited and Allianz SE. The company was founded in the year 2001. The company has received various awards and recognition for its contribution to the insurance sector. With iAAA rating by ICRA, the company is considered to be the most financially robust insurer in India. With cashless facility, innovative product offerings and strong online presence, the company has made insurance convenient for people. The product offered by the company includes motor, health, travel, home and various commercial insurance products.

  1. Bharti AXA General Insurance Company Limited

    Bharti AXA General Insurance Company is a joint venture between Bharti Enterprises and AXA Group. The company offers various non-life insurance solutions such as motor, health, home, travel and more. The company has a pan India presence through 101 branches across the country with 4500+ garages and a wider network of hospitals. The company offers customisable insurance solution along with the option to enhance the coverage with riders.

  1. Cholamandalam MS General Insurance Company Limited

    Cholamandalam MS General Insurance Company is a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group based in Japan. The company has 63+ branches with 6,000+ agents across the country. The company has received awards and recognition for innovation and insurance services. The products offered are the motor, health, personal accident, travel, home, corporate and rural insurance plans.

  1. Manipal Cigna Health Insurance Company Limited

    Manipal Cigna Health Insurance Company which was formerly known as Cigna TTK Health Insurance Company is a joint venture between Manipal Group, a healthcare leader and Cigna Corporation, a global health services company. With the major focus on health and wellness, the company offers various comprehensive health insurance plans including critical care and accident care plans.

  1. DHFL General Insurance Limited

    DHFL General Insurance Limited is backed by India’s leading financial services group, Wadhwan Global Capital. The company offers simple, customisable and convenient insurance solution to people. The main product offerings include health, motor, travel and home insurance plans. The company is known for seamless claim processes.

  1. Edelweiss General Insurance Company Limited

    Founded in the year 2016, Edelweiss General Insurance Company offers diverse insurance solutions such as motor, health, home, travel and loan protection segments. The company is a non-life insurance wing of Edelweiss Financial Services. The products of the company are also conveniently offered on a digital platform.

  1. ECGC Limited

    ECGC Limited is a wholly Government-owned company that was formerly known as Export Credit Guarantee Corporation of India Ltd. being controlled by the Ministry of Finance, the company provides export credit insurance solution to Indian exporters. The company was founded in the year 1957 to provide cost-effective insurance support to Indian Export Industry.

  1. Future Generali India Insurance Company Limited

    Future Generali India Insurance Company is a joint venture between the Future Group and Assicurazioni Generali. The company was founded in the year 2007 which has a presence in 117 major cities with more than 104 branches across India. The company offers a wide array of non-life insurance products with unique benefits and features to cater to specific needs of individual, family and corporate investors. The product category comprises of health, specific healthcare and critical illness plans along with many rural and commercial insurance plans.

  1. Go Digit General Insurance Limited

    Go Digit General Insurance Limited is one of the top Indian start-ups which mainly focuses on simplicity in providing insurance solutions. The company offers various insurance solutions like car, bike, health, travel and mobile insurance plans on its digital platform with unique features. The company is known for killer prices and super-fast claim processes.

  1. HDFC ERGO General Insurance Company Limited

    HDFC ERGO General Insurance Company, founded in the year 2002 is a joint venture between HDFC Ltd and ERGO International AG, German-based company. The company is one of the leading general insurance companies in India with its presence all over the country through 122 branches and strong digital presence. The company offers a comprehensive range of non-life insurance solution that includes motor, health, travel, home and personal accident plans in the individual customer segment. The company offers customised insurance solutions for corporates which includes marine insurance, liability insurance and property insurance etc.

  1. ICICI Lombard General Insurance Company Limited

    Founded in the year 2001, ICICI Lombard General Insurance Company is a leading general insurer in India. The company is a joint venture between ICICI Bank and Fairfax Financial Holdings Ltd, Toronto based financial services company. The company provides general insurance solutions to individuals, corporates and rural customer segments. Diverse products of the company include motor, travel, home, and health, rural and commercial insurance. The company has achieved various milestones and received accolades and awards for its consistent contribution to the insurance sector.

  1. IFFCO TOKIO General Insurance Company Limited

    IFFCO TOKIO General Insurance Company, established in the year 2000, is a joint venture between Indian Farmers Fertilizer Co-operative (IFFCO) and Tokio Marine Group, the largest listed company in Japan. The company takes the credit of underwriting mega policies for fertilizer and an automobile company. The products offered by the company includes car, two-wheeler, health, travel and home insurance for individuals. Corporate policies include liability insurance, property insurance and trade insurance etc. Apart from the conventional product offerings, the company also offers some specialised and niche products such as cyber insurance, fine arts insurance and credit insurance etc.

  1. Kotak Mahindra General Insurance Company Limited

    Kotak Mahindra General Insurance Company is a 100% subsidiary of India’s fastest-growing private sector bank, Kotak Mahindra Bank. With excellent customer service and quality product offerings, the company has made its presence all over the country. The products are offered through 1,300+ bank branches. Since its incorporation from 2015, the company has been offering various general insurance solutions such as health, motor, group and liability insurance plans.

  1. Liberty General Insurance Limited

    Liberty General Insurance, founded in the year 2013 is a joint venture between Liberty Mutual and Videocon Group. The company has been offering the cashless facility to individual customers through 5000+ network hospitals and 4300+ network garages. The company has received many awards and recognitions for its product innovation and excellent services. Exclusive products offered by the company includes motor and health insurance for individuals, various commercial insurance and group insurance products.

  1. Magma HDI General Insurance Company Limited

    Magma HDI General Insurance Company is a joint venture between Magma Fincorp Ltd., India’s premier NBFC (Non-Banking Financial Company) and HDI Global SE, Germany. The company offers a wide array of non-life insurance products for individuals, groups and corporate customer segment. The products include health insurance, motor insurance, fire insurance, liability insurance, marine insurance, engineering insurance and many more.

  1. Max Bupa Health Insurance Company Limited

    Max Bupa Health Insurance Company is a joint venture between Max India Limited and Bupa, UK based healthcare expert. With global expertise in the healthcare field and domestic market values, Max Bupa Health Insurance provides specialised products to cater to the needs of people in the country. There are exclusive plans such as comprehensive health plans for individual and family, critical illness insurance and personal accident insurance plans are offered by the company.

  1. National Insurance Company Limited.

    Established in the year 1906, National Insurance Company is the oldest general insurance company in India. It is the second-largest Indian general insurance company with 1998 offices across the country. It is the first company to introduce product customisation for the corporate and rural segment. It is also the first to enter into strategic alliances with the country’s largest automobile manufacturer M/s Maruti and Two-wheeler major M/s. Hero Moto Corp. The company offers numerous products in its product categories of health insurance, motor insurance, personal insurance, rural insurance, commercial insurance and industrial risk insurance.

  1. Raheja QBE General Insurance Company Limited

    Raheja QBE General Insurance Company is a joint venture between Rajan Raheja Group and QBE Holdings Pvt Ltd, Australian insurer. With the domestic experience and global expertise, the company offers various innovative and customisable non-life insurance products in the space of health insurance, property insurance, personal accident insurance and commercial insurance.

  1. Reliance General Insurance Company Limited

    Founded in the year 2000, Reliance General Insurance Company is solely promoted by Reliance Capital. The company is offering non-life insurance solution all over the country with 139 branch offices and more than 28,900 intermediaries. The company offers insurance solutions with respect to motor, home, health, and travel, marine and other commercial insurance space.

  1. Reliance Health Insurance Limited

    Reliance Health insurance Limited is a subsidiary company of Reliance Capital. The company offers flexible, customisable and affordable health insurance solutions online to individual and family.

  1. Religare Health Insurance Company Limited

    Religare Health Insurance Company, established in the year 2015 is a health insurance arm of Religare Enterprises Limited. The company is a specialised health insurance provider that has a customer-centric approach. There are diverse product types offered by the company which includes comprehensive health insurance plans, critical illness, personal accident, top-up coverage and international travel insurance along with group health insurance plans.

  1. Royal Sundaram General Insurance Company Limited

    Royal Sundaram General Insurance Company founded in 2000, is a subsidiary of Sundaram Finance Group. The company has been providing innovative general insurance solution to individuals, families, groups and corporates. With 143 branches and more than 2,000 employees, the company is providing quality non-life insurance products in the category of the motor, health, personal accident, home, travel and corporate insurance.

  1. SBI General Insurance Company Limited

    Established in the year 2010, SBI General Insurance Company is a joint venture between the State Bank of India and Insurance Australia Group (IAG). The company offers a wide range of non-life insurance plans at affordable rates in retail and commercial space. The products include motor, health, personal accident, travel, home, aviation, marine, fire, construction and engineering and liability insurance plans. With a robust multi-distribution channel, a huge network of bank branches of SBI, the company has made insurance accessible for every corner of the country.

  1. Shriram General Insurance Company Limited

    Founded in the year 2012, Shriram General Insurance Company Limited is a joint venture between Shriram Capital Ltd. and Sanlam Limited, South Africa based financial services company. With the main focus on providing insurance to the common man of the country, the company offers various excellent non-life insurance solutions in motor, home, travel and commercial insurance space.

  1. Star Health & Allied Insurance Company Limited

    Star Health & Allied Insurance Company is the first standalone health insurance company that started its operation in the year 2006. The company is best known for innovative and excellent product offerings along with delivering great services to customers. The company offers tailor-made insurance products to individuals, families and corporates through its multi-distribution channels, online platform, and 460+ branch offices all over the country.

  1. Tata AIG General Insurance Company Limited

    Tata AIG General Insurance Company is a joint venture between Tata Group and American International Group (AIG). With innovative risk solutions and strong distribution platform and 200+ branch offices, the company offers an extensive range of non-life insurance solutions to retail, corporate and group customer segments. The company offers a variety of plans with unique and customisable features in the category of motor, health, travel, home, and accident, rural and commercial insurance plans.

  1. The New India Assurance Company Limited

    Incorporated in the year 1919, The New India Assurance Company was founded by Sir Doarb Tata. The company has a countrywide presence and international presence through its branch offices in various other countries. The company has many firsts to its credit. It is the first company to set up an Aviation Insurance Department in 1946, first to handle hull insurance requirements and also pioneer in satellite insurance. Today the company is catering to every unique general insurance needs of people with its extensive product portfolio.

  1. The Oriental Insurance Company Limited

    The Oriental Insurance Company is a public sector general insurance company incorporated in the year 1947. The company is a pioneer in laying down systems for the smooth and orderly conduct of business. With the huge network of 1800+ operating offices, 31 regional offices and overseas presence in countries like Dubai, Kuwait and Nepal, the company has been introducing innovative products in the space of general insurance. The company is also known to provide various rural insurance products.

  1. United India Insurance Company Limited

    Founded in the year 1938, United India Insurance Company is a leading general insurance company owned by the Government of India. With more than 2200 branches and various distribution channels, the company is making insurance accessible and affordable for retails, rural and corporate customers. The product offerings include motor, health, travel, personal accident, home, marine, and fire, liability, credit and micro-insurance plans.

  1. Universal Sompo General Insurance Company Limited

    Founded in the year 2007, Universal Sompo General Insurance Company is a public-private joint venture wherein two public sector banks – Allahabad Bank and Indian Overseas Bank and Private Sector Bank, Karnataka Bank together with Dabur Investment Corp and Sompo Japan Nipponkoa Insurance Inc have formed the company. With a wide network of branches and 135+ approved non-life insurance products, the company is addressing the general insurance needs of retail, corporate and rural customer segments in the country.

Transit Insurance: Everything You Need to Know (Detailed Guide)

Ankita Sejpal

Businesses are going global and their goods are being sold in international markets too. This globalisation has not only increased the potential of business profits, but it has also led to better marketing opportunities and competitive products. While globalisation is driving business expansion, the risks associated with the transportation of goods cannot be ignored. When the goods are being transported through land, air or water, they face the threat of damages due to unforeseen contingencies. In case of any damage, businesses stand to lose a great deal of money. That is why, to protect the financial risks faced by goods being transported, a transit insurance policy is available. Let’s understand what this policy is all about –

What is transit insurance?

Transit insurance is an insurance plan which covers the risks faced by goods when they are being transported from one place to another. The policy covers being transported by air, water, road or rail.

What is covered under transit insurance?

Transit insurance coverage includes common perils which might cause damage to the goods which are being transported. These perils against which transit insurance protects the goods are as follows:

  • Earthquakes
  • Explosion 
  • Fire 
  • Lightning 
  • Any type of natural or man-made calamity
  • Overturning of the transport vessel
  • The collision of the vessel which damages the goods contained therein
  • The derailment of the vessel
  • The sinking of the vessel
  • Risks faced while loading and unloading the goods
  • Risks faced in packing and unpacking of goods
  • Accidental damages
  • Malicious damages
  • Impact damage
  • Theft, etc.

Who should invest in a transit insurance policy?

A transit insurance policy is suitable for businesses and individuals who are involved in regular transportation of goods. The policy can be bought by the following types of parties –

  • Manufacturers of goods
  • Importers and exporters of goods
  • Custom house agents
  • Traders
  • Transporters or aggregators

Types of transit insurance for goods

Transit insurance policies can be offered in multiple variants. These variants are as follows –

  1. Single transit policy

    This policy covers one particular journey and is suitable for businesses that do not transport their goods frequently. The policy would cover the goods which are being transported on a particular journey only.

  2. Customised policy

    This policy is a flexible transit insurance policy which can be customised for businesses to suit their coverage requirements.

  3. Open policy

    This policy covers multiple transits occurring within a given period of time which is, usually, one year. So, if businesses transport their goods frequently, they can buy this policy and ensure coverage for multiple trips without buying a different policy for each one.

  4. Overnight vehicles’ insurance policy

    If the goods are to be stored overnight in a vehicle, this policy is suitable as it covers the goods in such cases.

  5. Goods in transit (carrier’s) cover

    If your goods are transported using the transport vessel of a third party carrier, the carrier might not undertake the risks of damage to your goods. You can, therefore, buy this policy to cover the damages when the goods are being transported using another carrier service.

  6. Goods in transit (own vehicle) cover

    If your own vehicle is being used for transporting the goods, this cover would insure the goods against possible damages.

  7. Multiple vehicles cover

    If multiple vessels are used in the transportation of goods, this policy can be taken to cover the goods being transported through different vehicles. The policy would cover multiple vehicles under a single plan.

Why transit insurance is required?

A transit insurance policy proves to be a boon for businesses because of the various benefits it provides. Here are some of the benefits of transit insurance policies which make them a must-buy –

  1. Coverage under transit insurance plans is provided on globally standard terms. Thus, even when you are transporting your goods internationally, you can meet the coverage requirements of the country to which the goods are headed
  2. Transit insurance coverage provides financial support to businesses which might face considerable losses if their goods are damaged during transit. The policy, therefore, helps keep the business finances stable even after a loss
  3. Since any possible loss is covered under the transit insurance policy, businesses can also maintain their profitability even when any contingency damages their goods. This profitability also helps businesses maintain their solvency and their market value
  4. The policy can be customised as per the requirements of the business and is, therefore, suitable for all types of businesses

So, if your business is engaged in the movement of goods, which it surely would be, buy a transit insurance plan and secure the losses which you might face if your goods don’t make it to their destination. The policy is easy to buy and comes at low premium rates making it a simple and necessary addition to the transit of your goods.

Frequently Asked Questions

  1. In case of a claim, what documents would be required?

    If you face a claim in your transit insurance policy, you would have to submit the following documents for claim processing –

    • Invoice of the goods in original
    • Survey report
    • Bill of Lading
    • The claim form, filled and signed
    • Shipping details
    • Correspondence is done with carriers and its copies
    • Any other documents as required by the insurance company
  1. What is the meaning of deductible under transit insurance?

    A deductible is the level of claim which the insurance company does not pay. Only when the claim exceeds the deductible limit it is paid and even then the deductible limit is paid by you and the insurance company pays the rest.

  1. Are partial losses covered?

    Yes, even if the goods are partially damaged, the insurance company would cover the financial loss that you have suffered.

Get Insured
Quick Links
Contact
  • Turtlemint Insurance Broking Services Pvt Ltd (f/k Invictus Insurance Broking Services Pvt Ltd)
  • IRDAI License No. 487,
    Composite Broker,
    Valid upto : 02/04/2026 (Renewable)
  • Principal Officer: Vilas Gandre,
    1800-266-0101
    +91-9833248023
Secured by:
SSL
  • Insurance is the subject matter of the solicitation. For more details on policy terms, conditions, exclusions, limitations, please refer/read policy brochure carefully before concluding sale.
  • © 2020 Turtlemint. All Rights Reserved. Privacy Policy  and Terms