Author: Ankita Sejpal

Cargo Insurance guide India

Ankita Sejpal

With globalisation making the world small, businesses have crossed the geographical boundaries. Nowadays, businesses are not localised in nature. Manufacturers are selling their goods in other countries and exploring new markets for their products. That is why the transportation of goods from one place to another has become a common practice for almost all businesses. This is why cargo insurance becomes of utmost importance to most businesses.

Though transportation of goods helps businesses expand their market, the risks associated with such transportation cannot be ignored. If the goods are damaged in transit, the business incurs a heavy loss. To cover such losses suffered by businesses, marine insurance policies are available. These policies cover the damages suffered when goods are transported from one place to another.

Marine insurance is broadly divided into two parts – cargo insurance and hull insurance. While cargo insurance covers the goods being transported, hull insurance covers the transportation vehicle. Cargo insurance is relevant for businesses transporting goods and is, therefore, very popular. Let’s understand what cargo insurance is all about –

What is cargo insurance?

Cargo insurance is a type of marine insurance policy which covers the goods which are transported from one place to another. A cargo insurance policy usually covers the goods from their place of transport to the destination. The policy, thus, safeguards the business from the loss suffered if the goods being transported are damaged before reaching their destination.

Covered transportation under cargo insurance

A cargo insurance policy covers transportation through the following means –

  • Water
  • Air
  • Road
  • Rail
  • Registered postal parcel
  • Courier

You can also buy a policy for covering transport by more than one of the above-listed means.

Who can buy cargo insurance?

Cargo insurance can be bought by the following –

  1. Merchants involved in importing and exporting of goods
  2. Buyers of goods
  3. Sellers of goods
  4. Buying agents
  5. Banks
  6. Contractors, etc.

What is covered under cargo insurance?

Coverage under a cargo insurance policy is determined by the Institute Coverage Clause (ICC) which you buy with the policy. ICC is the standard coverage under cargo insurance which is accepted by all marine insurance companies. There are three types of ICCs which are as follows –

  1. Institute Coverage Clause ‘C’

    This clause gives the basic coverage under a cargo insurance policy. The coverage includes only named perils which are as follows:

    1. Fire and/or explosion
    2. Overturning, collision or derailment of the transportation vehicle
    3. Jettison
    4. Discharge of the cargo at a point of distress
  2. Institute Cargo Clause ‘B’

    This clause is wider than ICC ‘C’ as it covers the damages suffered due to the following perils:

    1. Perils covered under ICC ‘C’
    2. Earthquakes
    3. Lightning
    4. Volcanic eruptions
    5. Water seepage into the transport vessel or storage area
    6. Losses suffered when loading or unloading the goods
  • Institute Cargo Clause ‘A’

    This is also called ‘All Risk Cover’ as it includes all the perils due to which the goods can be damaged. The coverage includes the following perils:

    1. Perils covered under ICC ‘C’ and ICC ‘B’
    2. Loss due to rainwater
    3. Theft, pilferage or any other type of malicious damage
    4. Shortage, breakage or any type of partial loss
    5. Any other losses suffered by the cargo other than the excluded ones

You can choose any type of coverage clause but ICC ‘A’ is better because of the comprehensive scope of coverage that it provides.

Exclusions under cargo insurance

Though cargo insurance policies provide quite a comprehensive scope of coverage, there are some perils and instances of loss which are not covered by the policy. Common exclusions under marine cargo insurance policies include the following –

  1. Damages suffered due to negligence and/or wilful misconduct
  2. The loss suffered due to delay in transportation
  3. Damages which occur when goods are not properly packaged
  4. Perils like war, riots, civil commotion, strike, etc.
  5. Costs incurred in removing the wreckage after a damage
  6. Damages suffered due to biological, nuclear or chemical weapons
  7. Damages due to radioactive contamination
  8. If the charterers, managers, owners or operators of the vessel become financially insolvent and are unable to transport the goods, the consequent losses would not be covered
  9. Inherent vice in the cargo which is certain to cause damage
  10. Normal loss in weight of the cargo and leakage or breakage of goods
  11. If the transportation vehicle is unseaworthy, i.e., not fit to transport the goods, but the vessel is used for transportation, consequent losses would not be covered

Types of marine cargo insurance policies:

Now that you know the coverage and exclusions under cargo insurance plans, you should also know the different types of plans which are available in the market. Since the transportation needs of different businesses might be different, cargo insurance plans come in the following variants –

Type of policyMeaning 
Voyage policyThe policy covers a particular voyage from one place to another
Time policyThe policy covers any number of voyages within a particular tenure. The tenure is, usually, one year
Mixed policyThe policy combines voyage and time policies. It covers unlimited transportation in one route during a particular time period
Valued policyUnder this policy, the value of the cargo is mentioned before taking insurance. Coverage is, therefore, limited up to the specified value of the cargo
Unvalued policyUnder this policy, the cargo is not valued before it is insured. The value is determined after a loss occurs
Floating policyMultiple voyage policies make up a floating policy. The policy has a floating sum insured and multiple voyages are covered up to the sum insured
Block policyThe policy covers the cargo from the time it leaves the seller’s warehouse and up to the time it reaches the buyer’s warehouse

Important terms associated with cargo insurance

Marine cargo insurance policies have some technical terms associated with them which might confuse you. So, here are some common technical jargons simplified –

  1. EXW (Ex-Works)

    The full form of EXW can be Ex-works, ex-warehouse, ex-place, etc. Under EXW cargo insurance plans, the buyer is supposed to collect delivery of the goods from the seller. Any damage to the cargo before the buyer collects it would be the liability of the buyer. As such, the buyer buys a cargo insurance policy on EXW to insure his liability.

  2. FOB (Free on Board)

    FOB means Free on Board. FOB policies make it the seller’s liability for loading the goods on the ship. If the goods are damaged before they are loaded on the vessel, the seller would face a loss. That is why the seller buys a FOB cargo insurance policy for covering his liability. The seller’s liability is over once the goods are loaded. The buyer then needs to buy another policy to cover the risk of damage during transportation and unloading of the goods.

  3. CFR (Cost and Freight)

    The full form ofCFR is Cost and Freight. If the seller pays the freight charge for booking the transportation vehicle, he incurs an additional cost. To cover this cost the seller buys CFR policy which pays the loss of freight in case the goods are damaged.

  4. CIF (Cost, Insurance, Freight)

    CIF means Cost, Insurance Freight. If the buyer asks the seller to buy a marine cargo insurance policy from the seller’s warehouse to his warehouse, the seller can buy a CIF policy. This would be a single policy covering all the risks from the origin to the destination. The policy would belong to the seller until the goods are loaded onto the transportation vehicle. Once loaded, the ownership of the policy would change and the buyer would become the policyholder. Thus, a single policy would cover the risks faced by the buyer as well as the seller.

  5. DDP/DAP (Delivered Duty Paid / Delivered at Place)

    DDP/DAP meansDelivered Duty Paid / Delivered at Place. These contracts are applicable if the buyer has superiority over the terms of transportation. Usually, in such situations, the sellers are required to transport the goods to the buyer’s place. Thus, the seller faces the liability of loss if the goods are damaged until they reach the buyer’s place. To cover this liability the sellers buy a DDP/DAP cargo policy and the buyers are not required to buy any plan since they don’t face any risk of loss in transportation.

    Cargo insurance plans can be a bit complicated if they are not understood properly. So, understand the policy in detail, its coverage clauses, perils covered and the important terms associated with it before you buy so that you know the coverage inside out.

Frequently Asked Questions:

  1. Who is responsible to buy cargo insurance?

    A cargo insurance policy is to be bought by the buyer or seller depending on the liability faced by them.

  2. Is inland transportation covered under cargo insurance?

    Yes, transportation of goods within India is also covered under cargo insurance.

  3. What is the Institute Cargo Clause (Air)?

    This coverage clause is applicable if the goods are being transported by air.

  4. Do cargo insurance policies provide extensions?

    Yes, coverage extensions are available under marine cargo insurance policies. Common extensions include the following –

    1. Costs incurred on loading and unloading of goods
    2. Customs duty
    3. Removal of debris after the loss has incurred, etc.

Dental Insurance

Ankita Sejpal

Today, rising exposure to foods like chocolate, cakes, pastries and shakes, oral healthcare problems have become very common. Be it a root canal, extraction of a wisdom tooth or treating gum disease, dental healthcare treatments are expensive. You may have adequate health insurance policies to protect you financially against all the health contingencies. But, the health insurance plans also come with various exclusions. Dental treatments are the most common exclusions that you can find in any health insurance policy. Without insurance, expensive dental treatments can get unaffordable for many.

What is dental insurance?

Dental insurance is a type of health insurance plan that is specially designed to provide coverage against certain costs associated with oral healthcare.

In India, insurance coverage for dental healthcare can be availed in two ways –

  • Stand Alone dental insurance
  • Dental health cover included in your health insurance policy

In India, hard thing is that there are not many options available when it comes to stand-alone dental insurance. However, many health insurance products include coverage for dental healthcare.

How dental insurance works?

Dental insurance coverage can include preventive treatments, basic or major oral care treatments. Depending on the type of coverage compensation will be paid under insurance policies with dental coverage.

Types of general insurance plans that may cover dental healthcare

Following are the general insurance plans that may cover your oral health:

    1. Individual health insurance policies: Individual health insurance policies may cover certain dental procedures. Most of the policies cover dental treatment costs arising out of accidental injuries. However, the cover may vary from policy to policy
    2. Family floater health insurance policies: Family floater health insurance plans covering many members of the family for medical contingencies sometimes include few dental care treatments under the coverage
    3. Travel medical insurance policies: Most of the travel insurance plans cover emergency dental care needed and dental treatments needed due to accidental injury. However, the policies may place limits on compensation to be paid under dental coverage
    4. Critical illness policies: Critical illness policy is a standalone plan that covers only specific illness and pays compensation in one go. Some of the critical illness policies may cover dental surgeries as a part of their plan
    5. Personal accident policy: Most of the personal accident policies include dental treatment expenses arising out of accidental injuries
    6. Preventive healthcare policies: Preventive healthcare policies that usually pay for regular health check-ups and doctor consultation may sometimes cover oral health check-ups and consultation

List of dental insurance plans (as a part of general insurance plan) offered in India

Plan NameDental Coverage
Apollo Munich Maxima HealthIt is a comprehensive health insurance plan that offers various unique benefits on individual and family floater basis. The policy provides coverage for outpatient dental treatments excluding the treatment types that comprise cosmetic treatment. However, the policy offers only limited coverage up to a certain amount specified in the policy document.
Bajaj Allianz Health Guard PolicyBajaj Allianz health guard policy is an all-rounder health insurance plan that addresses the extensive healthcare needs of people. The policy offers coverage for dental procedures and treatments that requires hospitalisation. However, the oral treatments that do not require hospitalisation are excluded from the policy.
New India Mediclaim Insurance PolicyThe policy provides a comprehensive healthcare solution with dental coverage for oral treatments that requires hospitalisation and are needed due to an accident. However, dental treatments that do not require hospitalisation are excluded from the policy.
Birla Sun Life Saral Health PlanIt is a unit-linked health plan that helps you build contingency fund for healthcare needs. Health reimbursement benefit offered by the policy can be used for dental care expenses.
ICICI Prudential Health SaverIt is a unit-linked health plan that helps you build contingency fund for healthcare needs along with an option of investment. Health savings benefit offered by the policy can be used for dental care expenses.
Chola MS Travel InsuranceChola MS travel insurance protects you against medical emergencies during your trip. Dental care treatments are also included in the coverage.

Inclusions and exclusions under dental coverage plans in India:

Though you may not get an exclusive dental insurance plan in India, some of the health insurance, travel insurance and personal accident policies cover various dental care expenses. Following are some of the dental care expenses covered under the policies:

  • Routine oral health check-ups and preventive treatments
  • Tooth extraction
  • Dental x-rays
  • Tooth filling
  • Oral cyst and infections
  • Tongue-tie for infants and kids
  • Dental injury due to an accident
  • Root canal procedures
  • Dental implants
  • Dental surgeries
  • Clearance exam before chemotherapy
  • Treatment for gum diseases
  • Follow-up care and treatment

However, most of the plans exclude dental care treatment expenses comprising of cosmetic treatments, dentures, jaw alignment and dental implants etc.

What are the criteria to choose these companies as they do no offer stand-alone dental insurance?

Following are the key points to keep in mind while choosing the insurer for dental coverage:

  1. Know what the policy covers and limitations on the benefits offered
  2. Check on the list of dentists in the network hospitals of the insurance company
  3. Look for the insurer who cover major dental procedures in a health policy
  4. Compare cost and benefits and choose wisely

How to apply for dental insurance?

Dental coverage in India can be availed as a part of many health insurance policies. Health insurance policies with dental care included can be purchased online after comparing various plans. You can buy dental insurance plans (health insurance plans including dental cover) through Turtlemint by following below steps:

  1. Go to Turtlemint and choose the category of insurance as ‘health’
  2. Click on ‘buy new policy’ and proceed
  3. Fill in your profile details such as gender, members to be insured, age, health history and contact details etc.
  4. Compare the various health plans with dental insurance coverage available and select the best suitable plan as per your need and affordability
  5. Provide necessary coverage details
  6. Make the payment online. That completes your insurance buying process!

Documents required for dental insurance

Following are the documents required for buying dental insurance plans:

  • Age proof – Birth certificate/Passport/SSLC mark sheet/Voter ID etc.
  • Identity proof – PAN card / passport/aadhaar card/ driving license/voter’s ID, etc
  • Proof of address – Driving license/passport/latest electricity bill/ telephone bill etc.
  • Photographs

Claim procedure in dental insurance

Claim procedure in availing dental insurance coverage plan under the health insurance plan is quite easy which is same as that of availing other hospitalisation benefits under the policy. In case of dental care that requires hospitalisation or something that is caused due to an accident, the following is the claim procedure to follow for availing cashless claim:

  • If you are availing treatment in-network hospital, intimate the insurance company and seek approval for cashless facility
  • You need to produce health card and necessary documents to hospital authorities and third-party administrators (TPA) for initiating the cashless claim.
  • Once the hospital receives the approval, your treatment papers and other relevant documents are sent to the insurance company
  • Amount of dental care bills as per the terms and conditions of the policy are settled directly to the hospital by the insurance company.

In case, you have availed out-patient dental care treatment or preventive care treatments, you can pay the expenses out of your pocket and then place a reimbursement claim request depending on the terms and conditions of the policy.

Frequently Asked Questions (FAQs)

  1. How to choose a dental insurance plan?
    Dental insurance coverage provided by the policies in India is limited. Hence, read through the fine print carefully, understand the exclusions and inclusions in the policy carefully before you choose dental coverage.
  2. Does dental coverage include tooth extraction?
    Almost every health insurance, travel insurance and personal accident policies cover dental treatments necessitated due to an accident. Some policies may cover wisdom tooth extraction, but it totally depends on the terms and conditions of the policy.
  3. Is root canal procedure covered in dental healthcare coverage under health insurance?
    Dental surgeries and treatments necessitated by an accident is covered by almost all policies. However, some policies that cover out-patient dental care may cover root canal procedures.

Personal Accident Insurance Policy : Features, Benefits & More!

Ankita Sejpal

Accidents have become quite common in today’s age. Whether it is a simple fracture or a major burn or a road accident, you might face severe physical disabilities. When accidents occur, they result in a substantial cost in treatment and recovery. Moreover, in the case of permanent disabilities or death, you lose your ability to work and incur a loss of income. While health insurance policies cover the medical costs associated with accidents, accidental deaths and disablements are not covered. Here is where a personal accident insurance policy comes into the picture. Here is a complete lowdown on accident insurance and why you need it.

What is personal accident insurance?

A personal accident insurance policy is a plan of insurance which covers accident-related contingency. If you suffer from any of the covered contingency, the plan pays a lump sum benefit which helps you in dealing with the financial loss suffered due to the contingency.

Types of personal accident insurance plans

Personal accident insurance plans can be of two types which are as follows –

  1. Individual personal accident plan
    Under this plan, one individual is covered under the policy.
  2. Group personal accident plan
    Under this plan, a group of individuals are covered under the policy. Group insurance plans are bought by registered groups to get coverage for their members. These groups can be employer-employee groups, banks and their account holders, clubs and their members, etc. A single policy is issued and the policy covers all the named members of the group.

Features of accident insurance plans:

Accident insurance plans have the following salient features:

These fixed benefit plans which pay a lump sum benefit in case of covered contingencies

  1. The premiums are very low. Moreover, the premiums paid are allowed as a deduction from your taxable income under Section 80D. You can claim a deduction of up to INR 25,000 if you are below 60 years and up to 50,000 if you are 60 years and above
  2. No medical check-ups are required to buy the policy
  3. The sum insured under the plan depends on your income
  4. Coverage is available only on individual sum insured basis. You cannot avail coverage on a family floater basis

Determination of the sum insured under accident insurance

As mentioned earlier, the sum insured under accident insurance policies depends on your annual income. The coverage is expressed as a multiple of your annual income and the multiple depends on the insurance company. If you want to cover your dependent spouse and children, you would have to buy individual policies for each of their lives. The coverage for a dependent spouse would be restricted to 50% of your coverage amount. Similarly, for dependent child coverage would be restricted to 25% of your sum insured.

What is covered under accident insurance plans?

An accident policy covers the following instances –

  1. Accidental death
  2. Accidental permanent and total disablement
  3. Accidental permanent and partial disablement
  4. Accidental total and temporary disablement

Important terms associated with accident insurance plans

There are some important terms associated with the coverage under personal accident plans. You should understand them to understand the coverage correctly. So, let’s see what these terms are –

  1. What is an Accident? How is it defined?
    An accident is said to be an external, visible, violent and uncertain event which causes loss of life or disablement.
  2. What is Permanent and total disablement in a personal accident plan?
    Permanent and total disablement means a disability which renders the insured unable to work lifelong. These disabilities include loss of both hands, loss of both legs, loss of sight in both eyes, loss of hearing in both ears.
  3. What is Permanent partial disablement in a personal accident plan?
    This means a partial disability which is permanent in nature for instance loss of one hand and one leg, loss of sight in one eye, loss of hearing in one ear, etc.
  4. What is a Temporary total disablement in a personal accident plan?
    This is when you are completely disabled but the disability is temporary in nature for instance when you suffer fractures or are advised complete bed rest after an accident

Benefits payable under accident insurance

The benefits payable under an accident insurance policy depends on the type of contingency that you suffer. The benefits are, usually, the following:

  1. In case of accidental deaths, you get 100% of the sum insured
  2. In case of permanent total disablement, you get 100% of the sum insured
  3. In case of temporary total disablement, you get a portion of the sum insured depending on the type of disability suffered
  4. In case of temporary total disablement, you get a weekly benefit for a specified number of weeks. This benefit is expressed as a percentage of the sum insured

Add-ons under personal accident insurance plans

While the afore-mentioned accidental contingencies are covered under all accident insurance plans, there are additional coverage features too which are provided under many plans. These features can be inbuilt in the policy or you can buy them by paying an additional premium.

Some of the common add-ons include the following –

  1. Children Education Fund 
    This cover pays a lump sum benefit in case of accidental death or permanent total disablement. The benefit is supposed to provide an education fund for your dependent children
  2. Funeral expenses
    This benefit covers the expenses incurred on arranging a funeral for the insured who dies in an accident
  3. Medical expenses 
    Under this cover, hospital expenses incurred due to an accidental injury are covered
  4. Transportation expenses
    This benefit covers the expenses incurred on transporting the mortal remains of the insured from the site of the accident to a hospital or to the residence of the insured
  5. Coverage for fractures and burns
    Under this cover, fractures and burns are covered and their medical expenses are paid under the policy
  6. Ambulance expenses
    This feature covers the cost of the ambulance incurred in taking the injured to the hospital after an accident
  7. Unemployment cover
    If the insured loses his/her job following a permanent disablement, this cover pays a lump sum benefit to compensate for the loss of income suffered
  8. Adventure sports cover
    Accidents suffered when engaging in adventure sports are excluded from the scope of coverage of accident insurance plans. However, you can pay an additional premium and secure coverage for the same.

What is not covered under accident insurance?

Accident insurance plans do not cover the following instances of claims

  1. Suicide or self-attempted injuries
  2. Accidents suffered when engaging in acts of criminal nature
  3. Accidents suffered when engaging in adventure sports
  4. Accidents suffered when under the influence of alcohol, drugs and/or other hallucinogens
  5. Accidents suffered when engaged in defence-related operations
  6. Accidents suffered due to war, rebellion, mutiny or related perils
  7. Expenses incurred on pregnancy, maternity and childbirth
  8. Any type of accidents suffered due to nuclear contamination
  9. HIV/AIDS and other types of venereal diseases
  10. Accidents suffered due to mental disorders
  11. Non-allopathic medical treatments
  12. Any type of pre-existing disability

How are premiums calculated?

Premiums of an accident insurance plan are calculated on the following parameters –

  1. Your age:
    Age is directly proportional to the premium. If you are older, the premiums would be higher and vice-versa
  2. The coverage level that you have selected:
    Higher the coverage level higher would be the premiums
  3. The risk class that you belong to:
    There are three risk categories based on your occupation. Premiums depend on the risk class that you belong to. The risk classes and their respective effect on personal accident premium are as follows:

    Risk classRisk Class IRisk Class IIRisk Class III
    Type of riskLowHighVery high
    ExamplesBankers,

    executives, accountants, managers, etc.

    		Contractors,

    promoters, builders, employees who carry money

    		Mountaineers,

    journalists, miners, individuals who work in explosive industries, etc.

    Effect on premiumPremiums are lowPremiums are

    slightly high

    		Premiums are the

    highest

  4. Term of the policy:
    Usually, accident insurance plans are offered for one year. However, some companies allow multi-year plans. If you choose such plans, the premiums would be higher since you would have to pay the multi-year premium at once.
  5. Discounts available:
    There might be discounts offered by accident insurance plans. If you are eligible for the available discounts, the premiums would reduce.
  6. Coverage features
    The more coverage benefits the plan offers the higher would be the premium charged
  7. Add-ons selected
    If you add optional coverage benefit to your plan, the premiums would increase

Why accident insurance plans are a must?

A personal accident plan is a must in today’s times because of the following reasons-

  1. Accidents have become very common and you need a financial cushion to deal with the financial implications of an accident. An accident insurance plan provides this cushion and helps you face the financial losses in case of any accidental contingency
  2. The premiums are very low compared to the coverage provided under the plan. This makes the plan affordable and accessible for all
  3. You can get a tax benefit on the premiums that you pay for an accident insurance plan. This would help you lower your tax liability while at the same time enjoying the coverage provided
  4. The range of coverage benefits provided under accident insurance plans ensure that every possible financial emergency is covered and you enjoy a comprehensive scope of coverage
  5. You can get compensation for the loss of income in case of disablements
  6. In case of accidental death, your family would be financially secured through the financial assistance provided by an accident insurance plan
  7. Most plans offer you worldwide coverage against accidental contingencies. So, you would be insured wherever you are

These reasons stress the importance of accident insurance plans and make them a must in today’s age when the number of accidents is increasing on a daily basis.

Buying accident insurance – as a rider or standalone policy?

To buy accident insurance, you have two options. You can either buy the coverage as a rider with your life or health insurance plan or you can invest in a standalone personal accident policy. Both these options have their respective benefits and drawbacks. Let’s understand what they are –

  1. Personal accident rider
    Life and health insurance plans offer an additional personal accident cover if you pay an additional premium for the same. Similarly, motor insurance plans allow a compulsory personal accident cover for the owner/driver of the vehicle. So, if you have a motor insurance plan, you already have a personal accident cover under it. Alternatively, you can opt for a personal accident rider with your existing life or health insurance policy by paying a small premium. While this would ensure coverage at a low premium rate, there are specific drawbacks to this cover. In the afore-mentioned covers, you get restricted coverage amount as well as features. Coverage is only available for accidental death and disablement. You don’t get any other optional or value-added covers. Moreover, these covers are relevant only to your policy continues. If the policy terminates, you lose the accident insurance coverage as well.
  2. Standalone accident insurance policy
    A standalone accident insurance policy can be bought as a separate cover. The benefit of having a standalone policy is the wider scope of coverage. You can avail coverage for different types of financial contingencies faced in an accident. Moreover, you can opt for a higher sum insured level to ensure that your family is optimally secured in case of accidental death. The policy can be renewed for as long as you want to ensure that the coverage is not dependent on any other insurance policy that you have. The premiums are slightly higher than accident insurance riders but the coverage benefits offered far outweigh the increased premium.

How to buy accident insurance?

To buy a personal accident insurance policy you have two options which are as follows –

  1. Offline Mode:
    You can buy the policy through an insurance agent or through the insurance company offering the policy. To buy the policy through the insurer, you can visit the company’s branch office and apply for a policy.
  2. Online Mode:
    Online purchases can be done from your home or office without having to visit the insurer’s office physically. The online medium is simple and quick to grant coverage. However, before you buy online, you should compare accident insurance policies of different insurance companies and then zero in on the best cover. Comparing would let you choose a policy which has the coverage features that you need at the lowest premium rates. So, compare online and then buy an accident insurance policy.

Documents needed to buy a Personal Accident Plan:

Whether you buy online or offline, you would have to submit some documents to complete the buying process. These documents include the following-

  1. Your photographs which should be recent and coloured
  2. Your identity proof
  3. Age proof
  4. Residence proof
  5. Employment-related details
  6. PAN Card
  7. Aadhar Card

How to make a claim under accident insurance plans?

In case of any accidental claim which is covered under your accident insurance policy, you should follow the claim process to get easy and quick settlement of your claims. The process is as follows –

  1. Inform the insurance company immediately about the claim
  2. If it is a road accident or any other accident where the police needs to be informed, inform the police and file an FIR
  3. Fill up the claim form stating the details of your accident insurance policy and claim. You should inform the time and date of the accident, policy number, insured’s details, location where the accident happened and how the accident happened in details so that the claim can be assessed
  4. Submit the form and other relevant documents with the insurance company
  5. The company would assess your claim and then pay the promised benefit if the claim is genuine and the documents are in order

Documents required to process a personal accident insurance claim:

The following documents are needed at the time of claim –

  1. Death certificate in case of death claims
  2. Post-mortem report in case of death claims
  3. FIR report
  4. Medical certificate showing disability
  5. Medical bills
  6. Doctor’s report certifying disability
  7. Any other document required by the insurance company

Given the rising incidence of accidents and the financial loss associated with them, personal accident policies become a must. The policy covers you against accidental death, disablements and other contingencies that you face ensuring that an accident wouldn’t disable you financially.

Frequently Asked Questions 

  1. Can I buy more than one accident insurance policy?
    Yes, you can buy any number of personal accident policies that you need.
  2. If I have a health insurance plan do I need an accident insurance plan?
    Yes, you do. A health insurance plan will cover you for the medical expenses that you incur in case you suffer from any accidental injuries. However, in case of accidental death or disability, the plan would not pay any benefits. Accident insurance plans, on the other hand, cover these specific contingencies and compensate you financially.
  3. Up to what age can I buy accident insurance?
    Personal accident policies are available up to 65 to 70 years of age. The actual restricting age depends on the plan that you are buying.
  4. Do I have to nominate someone when buying the policy?
    Yes, appointing a nominee is recommended when buying an accident insurance plan. By doing so you are authorising the person who could collect the policy benefits in case of your death.

Mobile Phone Insurance – Comparison and Detailed Guide

Ankita Sejpal

Mobiles have become the part and parcel of the modern generation. It is no longer just a means to talk with people, mobiles today have become multifaceted which allow you to click pictures, chat through messages and even shop online. In fact, mobiles have become so important that many people have not one but two phones in their possession. Mobiles phones have also evolved with various unique and cutting features which make your user experience more enhanced. However, mobile phones are also prone to lose. Theft or loss of the phone, mishandling, water seepage, screen damage, etc. are some of the common threats which mobile phones face. In fact, mobile phone damage is very common. When the damages occur you face considerable financial loss and repairing the phone is not cheap. Given the high-end models which are available in the market, if the phone is damaged you have to incur substantial costs in getting the phone repaired or replaced. Can you bear these costs easily?

Many might not be able to bear the costs easily, so a mobile insurance policy is made available in the market. The policy covers your mobile against possible damages and compensates you for the repair costs that you incur if the mobile is damaged. Let’s understand the policy in details.

What is mobile insurance?

Mobile insurance is an insurance policy which is taken on a mobile phone. The policy covers the loss of phone or the damages suffered by the phone. You can buy a mobile phone insurance policy on your mobile and get covered for the possible damages of the phone.

Features of mobile insurance policies

Mobile insurance plans have the following salient features –

  1. They cover both new and used mobile phones
  2. Smartphones, as well as basic feature phones, can be covered under the policy
  3. Cashless repairs are allowed under many plans
  4. The sum insured is linked to the cost of the phone
  5. The term of the policy can range from 6 months to 12 months

What is covered under mobile insurance?

Mobile insurance policies cover the following types of damages suffered by your mobile phone –

  1. Loss of the phone due to robbery or theft
  2. Any type of accidental damage to the phone
  3. Damages due to liquid seepage
  4. Technical malfunctions in the phone
  5. Screen related damages
  6. Damage because of fire
  7. Replacement or repair of the phone in case of covered damages

Add-ons under mobile insurance

Mobile insurance policies also offer additional coverage benefits which you can select by paying an additional premium. Some commonly available add-ons are as follows –

  • Transit insurance which covers damage to the phone when it is in transit
  • Worldwide coverage which covers the damages suffered anywhere in the world

What is not covered under mobile insurance?

Though a phone insurance policy covers almost all possible damages to the mobile, the following instances of loss or damages would be excluded from coverage –

  • Any type of mysterious loss of the phone
  • Damage to the phone due to climatic changes
  • Theft of the phone when it was left unattended
  • Damages suffered when anyone except the owner was using the phone
  • Pre-existing defects in the phone
  • If you try to deliberately damage the phone
  • Any type of overloaded mobile or an experimental mobile phone

Importance of mobile insurance

Mobile insurance policy becomes useful because of the coverage benefits it provides. Here are some reasons which make mobile insurance an important cover for your phone –

  1. Ease of replacing a lost phone
    When your mobile is stolen or if you lose your phone, which is quite common, you face a considerable financial loss. If your phone was a premium Smartphone, the costs are unimaginable. The insurance policy covers this loss and compensates you financially. This allows you to buy another phone without worrying about your finances.
  2. Coverage for repair costs
    Repair costs can be quite expensive when you drop your phone and damage it or if liquid enters your phone’s internal parts. The costs can go up to tens of thousands which might prove unaffordable. Since a mobile insurance policy covers the repair costs, you don’t have to worry about the financial pinch in case of damages.
  3. Is more comprehensive than warranty
    Mobile phone companies allow you extended warranty which covers damages to the phone. However, these warranties are not operational if you lose your phone or if the phone is stolen. This is where a mobile insurance policy proves beneficial.

These benefits of mobile insurance make the policy important and quite essential in today’s age when dependency on mobile has increased.

Making a claim under mobile insurance

In case your mobile phone suffers any of the covered damages, you can make a claim under your mobile insurance policy. To make a claim, you should follow the below-mentioned steps-

  1. Inform the insurance company immediately of the loss that you suffer. The loss might be damage to the phone or theft of the phone. To inform the company you can call the claim helpline of the company and register your claim. You would be given a claim reference number which you should preserve for the future claim process
  2. Fill up and submit the claim form entering the details of the claim
  3. If your phone has been stolen or if you have lost the phone, file a police FIR with the local police station. The FIR would be necessary for making a theft claim
  4. You might be required to click images of the damages suffered by the phone and send it to the insurance company
  5. The company would then investigate the damage done and the cause of the damage
  6. Based on the inspection of the damage and the claim form, your claim would be approved
  7. If your phone is being repaired, the insurance company might settle the repair costs directly with the mobile service centre if the centre that you selected is an authorized service centre. If not, you would have to pay for the repair costs and get the costs reimbursed from the insurance company
  8. In case of theft or loss of the phone, the insurance company would pay you the sum insured of the mobile insurance policy as a claim

Documents required for mobile insurance claims

To get your mobile insurance claims successfully settled, you would have to submit the following documents to the insurance company –

  1. Filled and signed claim form
  2. Police FIR copy in case of theft or loss of the phone
  3. Invoice of the phone
  4. Policy bond

Companies which offer mobile insurance in India

Mobile insurance policies are offered by a handful of insurance companies in India. These mobile insurance companies and their respective plans are as follows –

Mobile insurance companyName of the planSalient features 
Go Digit General Insurance CompanyMobile Insurance Plan
  • Only screen related damages are covered under the plan
  • The coverage can be taken for 6 months or 12 months
  • Premiums are low and affordable
OneAssistMobile Protection Plan
  • Original spare parts are used in case of repairs
  • 100% cashless repairs can be availed if you get the phone repaired at an authorized service centre
  • Free pick-up and drop facility for your phone
Bajaj FinservMobile Screen Insurance
  • Coverage is allowed for fire-related damages
  • High sum insured can be opted
Home CreditMobile Protection Plan
  • In case of loss of phone, you get replacement cover wherein you get the same phone
  • Free pick-up and drop facility is allowed under the plan
SyncNScanMobile Protection Plan
  • Recovery of personal data if the mobile is lost or stolen
  • Facilities of cloud backup, virus protection and finding a lost phone
OneSiteGoMobile Insurance Plan
  • If the repairs to a damaged phone are not done in time, the company promises free replacement of your damaged phone
  • Different types of plans are available for different coverage needs
SyskaGadhet Secure
  • Three different plans are offered by the company
  • You get coverage for fire and allied perils

Extended warranty vis-à-vis mobile insurance

Many of you feel why invest in a mobile insurance plan when you can buy an extended warranty for your mobile phones. However, the concept of an extended warranty is different from the concept of mobile insurance. Let’s understand how –

Basis of difference Extended warrantyMobile insurance
Coverage scopeThe extended warranty only covers damages to the phone. Theft and burglary are not coveredTheft and burglary are also covered along with damages to the phone under mobile insurance plans
Coverage for liquid damageAn extended warranty might not cover water spillage or seepageLiquid damages are covered under mobile insurance plans
Who offers coverageThis is provided by the manufacturer of your mobile phoneInsurance policies for phones are offered by insurance companies
Defects in the phoneYou get coverage for manufacturing defects in the phoneCoverage for manufacturing defects or pre-existing defects is not available
Type of phone coveredExtended warranties are available only for new phonesSecond-hand phones can also be covered under mobile insurance plans

How to buy mobile insurance?

You can buy mobile insurance online through the website of insurance companies. The process is simple and quick. You just have to choose the insurer, fill up an online application form and pay the premiums online and the insurance policy would be issued. Alternatively, you can also visit the branch of a mobile insurance company and apply for the policy.

To buy a mobile insurance plan, you would have to submit the following documents –

  1. An application form seeking insurance cover
  2. Invoice of the phone
  3. IMEI number of the phone
  4. Your identity proof

So, secure your mobile phone under a mobile insurance plan and cover yourself against the financial losses suffered when the phone is damaged, lost or stolen. The premiums are very low and you can buy insurance easily without any hassles.

Frequently Asked Questions

  1. I bought the phone from another country. Can I buy mobile insurance in India?
    Yes, you can buy a mobile insurance plan from a company in India even for a phone which was bought in another country. You just need the ownership documents of the phone to buy the policy.
  2. If the mobile phone is completely damaged, would I get covered for the repair costs?
    In case of complete damage of the phone, the insurance company might offer you a replacement phone rather than covering the repair costs.
  3. Can I recover data if my phone is lost?
    Under some insurance policies, there are features of data retrieval from a lost or stolen phone. If you buy such a policy you can recover data from a lost or damaged phone.
  4. Do all companies offer mobile theft insurance?
    No, not all companies offer coverage for theft of the phone. Under some plans, coverage is restricted to screen damages only. You should, therefore, read the coverage details of the policy before buying it.

Insurance claims Process

Ankita Sejpal

Insurance policies promise compensation for the financial loss that you suffer in case of emergencies which are covered under the policy. You buy an insurance policy for this promise and so when the covered contingency occurs, you expect the insurer to fulfil its promise and settle your claims.

What is an insurance claim?

Claim in an insurance policy is when you make a demand on the insurance company for payment of the policy benefits. A claim occurs when the event, which the policy covers, happens and such happening causes a financial loss. If the claim is covered under the insurance policy, the insurer pays the benefits promised under the plan and covers your financial loss.

When it comes to insurance claims, you are supposed to follow a specific process to get your claim settled. This insurance claim process is different for different types of insurance policies. So, let’s understand the insurance claim process for some of the most popular types of insurance plans –

Insurance claims under motor insurance policies –

Motor insurance policies can be car insurance plans or bike insurance plans. The insurance claim process for both car insurance and bike insurance is the same. Let’s understand what the process is –

Under motor insurance policies, there are two types of claims – third party liability claims or own damage claims. The insurance claim process for both these instances is different. Here’s what is the process under each instance involves –

  1. Third party claims:Third party liability claims occur when any other individual is hurt or killed by your vehicle or if any third party property is damaged. The insurance claim process for third party claims is as follows –
    • You should inform the insurance company immediately of the claim
    • File an FIR with the local police authority
    • The claim would be taken to the motor accidents tribunal which would pass a ruling on the financial liability that you face
    • Depending on the ruling of the tribunal, the insurance company would settle the claim
  2. Own damage claimsOwn damage insurance claim means when your car or bike itself suffers damage. Own damage claims can, further, be subdivided into two types – damages suffered by the vehicle or theft of the vehicle. Here’s the insurance claim process for each –
    • Damages suffered by the car or bike:
      1. Inform the insurance company immediately of the damage
      2. The company would then provide you the details of the nearest preferred garage where you can take your vehicle
      3. Once your vehicle is in the garage, the company’s surveyor would visit and assess the damages. After assessing the damages the claim report would be prepared
      4. Depending on the claim report submitted by the surveyor, the insurance company approves the repairs
      5. Once the repairs are approved, the vehicle is repaired. The company pays the repair costs directly to the garage and the claim is settled on a cashless basis
      6. If, however, you get your car repaired at a non-networked garage, you would have to bear the repair costs and the insurance company would then reimburse the costs to you when you submit all the bills
    • Theft of the car or bike:
      1. If your vehicle is stolen, you should immediately inform the insurance company of the theft
      2. A police FIR is also mandatory
      3. Once the FIR is filed, the police try and locate your vehicle. If they fail, they would issue a non-traceable report to you
      4. You would have to submit this report to the insurance company along with the claim form
      5. The insurance company would then pay you the Insured Declared Value (IDV) of your insurance policy and the claim would be settled

Documents required for vehicle insurance claims

In case of vehicle insurance claims, the following documents would have to be submitted –

  1. The RC book of the vehicle
  2. Driving license
  3. PUC certificate
  4. Claim form which should be duly filled and signed
  5. Police FIR, wherever necessary
  6. Identity proof of the policyholder
  7. Any other documents as required by the insurance company

Insurance claims under health insurance policies

The insurance claim process under health insurance policies is as follows –

  1. To avail a cashless claim you should seek treatment at a hospital which is tied-up with the insurance company. In a cashless claim, the insurer settles your hospital bills directly with the hospital and you don’t have to shoulder the financial burden
  2. You have to get the pre-authorization form, fill it and submit it to get cashless claim settlements. The form is available at the hospital. You should submit the form within 24 hours of emergency hospitalisation and 3-4 days before planned hospitalisation.
  3. The insurance company assesses the pre-authorization claim form and approves cashless claims
  4. The hospital bills are, then, paid by the insurance company directly
  5. After you are discharged, you should fill up a claim form and submit it with the discharge summary and all the medical documents
  6. If you take treatments at a non-networked hospital, you have to bear the medical expenses yourself. You can then submit the claim form and all the medical bills and reports and the insurance company would reimburse you for the expenses incurred

Documents required for health insurance claims

For getting a settlement of your health insurance claim, the following documents would be required:

  1. Claim form which should be completely filled and submitted
  2. Discharge summary from the hospital
  3. Police FIR (in case of accidental claims)
  4. All medical bills and receipts
  5. All medical documents and investigative reports
  6. Identity proof of the insured

How are health insurance claims handled?

Health insurance claims can be handled by either TPAs or the insurance company’s in-house claim settlement team. Let’s understand the difference –

  1. TPAsTPAs mean Third Party Administrators. TPAs are specific companies which help facilitate a health insurance claim between you and the company. You make a claim to the TPA which would assess your claim and then forward it to the insurance company. The insurance company would then reject or settle your insurance claim. TPAs are, therefore, middlemen in the insurance claim process.
  2. In-house claim departmentIn case of in-house claim department, the insurance company does not engage the services of a TPA. Instead, the company creates a dedicated claim handling department itself. You can, therefore, directly report your insurance claim to the insurance company through its in-house claim settlement department. The department would then assess your claim and make a decision on it.
  3. Which is better: TPA or in-house Health Insurance Claim?In-house claim settlement departments are better as your claims get settled within a shorter period of time compared to TPAs. The company might also offer you value-added benefits for your claims through its claim settlement department. In case of TPAs, they are tasked only to act as middlemen. They cannot accept or reject your claim. So, if a large number of claims get piled with TPAs, your insurance claim process would become too long and time-consuming. That is why try and buy a health insurance policy from a company which has an in-house claim settlement department.

Insurance claims under life insurance policies

Under life insurance plans, insurance claims are categorised under the following two heads –

  1. Maturity claimsThis is when the term of the plan comes to an end and you are alive to collect the plan benefits.
    • Insurance claims process for maturity claims:
      1. Maturity claims are initiated by the insurance company itself as the policy approached maturity
      2. You have to submit a maturity discharge form and the policy bond to receive the claim
      3. Once the documents are submitted, the claim would be credited to your bank account
    • Documents required for maturity claims:
      1. Maturity claim form
      2. Policy bond
      3. Your identity proof
      4. Your bank account details for receiving the maturity proceeds
  • Death claimsIn case of death during the policy tenure, death claims occur. Death claims are collected by the nominee whom you appoint in your insurance policy.
    • Insurance claim process for death claims:
      1. The nominee has to inform the insurance company about the death of the insured
      2. A claim form should be filled and submitted and you would also have to submit various relevant documents
      3. The company would verify the claim and the documents submitted
      4. Once verified, the company would pay the claim directly to the nominee’s bank account
    • Documents required for death claims:
      1. Claim form, filled and signed by the nominee
      2. Identity proof of the nominee
      3. Original Policy bond
      4. Death certificate
      5. Police FIR (in case of accidental death)
      6. Medical reports (if available)
      7. Coroner’s report, punchnama, post mortem report, etc. (in case of accidental deaths)

So, these are the insurance claim processes of some of the most popular insurance plans. understand the claim process so that if you face an insurance claim you would know exactly how to get your claims settled and the documents required for the same. Alternatively, you can also contact Turtlemint’s team for your insurance claim settlements. Turtlemint has a dedicated claims handling department which gets your claims settled for you. Turtlemint’s claim department handles the insurance claim process making it convenient for you. Just intimate the claim by calling Turtlemint’s helpline at 1800 266 0101 or by sending an email to claims@turtlemint.com . Then you can relax and Turtlemint would ensure that your claims are settled at the earliest.

Title insurance in india

Ankita Sejpal

Buying your dream home? You may need to consider title insurance for protecting yourself from financial loss that may trigger due to ownership issues. Real estate is one of the fastest-growing sectors in India. The RERA (Real Estate Regulation and Development Act), 2016 makes it mandatory for every developer to have title insurance for all the projects in order to protect the property buyers. In this article, let’s learn about title insurance and its importance.

What is title insurance?

Title insurance is indemnity insurance that protects the holder of the title from financial downfall sustained from the defective title of the land or property. Basically, the title insurance policy provides protection to mortgage lenders and property buyers. During the sale transaction, if the title disputes arise, the title insurance company will be responsible for financial losses and legal damages caused. 

How do title insurance works?

‘Title’ in real estate refers to legal ownership to the property. All titles are not ‘clean’. When you apply for title insurance as a seller or as a lender, the title insurance company first verifies whether the title is clean or not. The title insurance company ensures there are no undisclosed heirs to the property or land, no pending legal actions, no unpaid taxes and no fraud related to the title of the property. After verification, title insurance company contracts with an underwriting firm to issue a title insurance policy that will pay for your financial losses in case anyone challenges your title and the policy compensates you for your equity if you lose.

Coverage offered under a title insurance

For a one-time premium, the title insurance policy provides coverage for the following:

  • Title defects that prevent one from having ‘clean’ ownership of the property
  • Existing lawsuits or liens on the property’s title
  • Forgery of documents and fraud related to the title
  • Errors in public records and surveys
  • Encroachment issues

Types of title insurance

Title insurance can be purchased for both commercial and residential property. Basically, there are two types of title insurance policies:

  • Lender’s title insurance: Lender’s title insurance is purchased by the lender (such as banks and financial institution) to avail financial protection against any losses that may arise due to the property’s title related issue
  • Owner’s title insurance: Owner’s title insurance is bought by the owner of the property to have protection against financial losses that may arise due to invalid property mortgage

Cost of title insurance

Cost or premium for title insurance may vary depending on the insurance company chosen by you and on the basis of your property valuation. 

Importance of title insurance

Every time a property is sold, there is a change in the title also. During this process of transmission, issues related to the title may arise at any point. Defective titles can give rise to financial downfalls for parties involved. This is where title insurance policy’s role comes into play. Title insurance is necessary for the following reasons:

  • Title insurance protects the investment in the real estate market and provides financial protection against losses arising out of the defective title.
  • Title insurance reduces the risk involved in real estate transactions
  • Real estate investment will be accelerated with clear process and protection offered by the title insurance
  • Legal damages and costs are covered by title insurance

How to purchase title insurance?

An escrow company or a closing agent initiates the process of title insurance on completion of the property purchase agreement. In India, there are only a few companies offering title insurance as it’s a one of its kind product in the insurance market.

Frequently Asked Questions (FAQs)

  1. How much title insurance coverage do I need?Amount of coverage needed under title insurance may depend on property value and the party buying the cover. In case of owner’s title insurance, coverage is provided against frauds, undisclosed heirs, forgery and errors. In case of lender’s title insurance, coverage is taken on the property or mortgage.
  2. What is Escrow?Escrow Company is a neutral third party that takes all the securities measures in a real estate transaction and ensures the transaction take place smoothly. Basically, it protects seller, buyer and lender involved in real estate transaction.
  3. What is the time period of title insurance?Title insurance coverage lasts as long as the owner or the heir owns the land or until the loan is paid off. 
  4. Is title insurance a renewable policy?You have to make one-time premium payment to avail title insurance cover and there is no renewal for the policy. Only if the additional cover is needed later, the premium needs to be paid.

Rashtriya Swasthya Bima Yojana (RSBY) – Overview

Ankita Sejpal

Government of India has been introducing social security schemes for the well-being of citizens, specifically for the uninsured population of the country. With the medical cost rising, the Government has introduced a scheme to address the lack of healthcare access to the people below poverty line (BPL). In 2008, the Ministry of Labour and Employment came up with a health insurance programme called Rashtriya Swasthya Bima Yojana for the below poverty line population of India. The scheme is extended for the workers in an unorganised sector. In this article, let’s learn about Rashtriya Swasthya Bima Yojana in detail.

The objective of Rashtriya Swasthya Bima Yojana

The primary objective of RSBY scheme (Rashtriya Swasthya Bima Yojana) is to provide financial protection to Indian poor families from healthcare expenses.

Eligibility criteria for Rashtriya Swasthya Bima Yojana

Individuals working in unorganised sector belonging to BPL (below the poverty line) category and their families are eligible for benefits under the RSBY scheme. Five members of the family irrespective of their age are covered.
The eligibility of the workers of the unorganised sector and his family will be verified by the implementing officer. The beneficiaries will be issued a smart card – RSBY card for the purpose of identification.

Features and benefits offered by Rashtriya Swasthya Bima Yojana

Following are the features and benefits offered by the RSBY scheme:

  • Coverage:

    Total cover of INR 30,000 is given for the family on family floater basis for a year. Hospitalisation and in-patient care for most common illnesses are covered. The policy covers transportation charges of up to INR 1,000 for the policy period. INR 100 will be paid as transportation cost for each hospitalisation.

  • Cashless facility:

    Cashless medical treatment facility can be availed at any empanelled hospitals across the nation by using RSBY card (smart card) issued under the RSBY scheme

  • The network of hospitals:

    There are public and private hospitals are empanelled under the RSBY scheme which gives BPL populations to access the healthcare facility through RSBY card (smart card) anywhere in the country

  • Pre-existing illness:

    All pre-existing illnesses are covered

  • Safe and secure:

    As the biometric-based smart card is used for availing the cashless facility, fraud claims are easily avoided. As the benefits reach out to the right hands, the RSBY scheme is safe and secure

  • No paperwork:

    At the time of claim, manual paperwork is not involved. Claim settlements are done electronically

  • Premium/cost:

    The beneficiary is required to pay INR 30 per annum as a registration or renewal fee. Out of estimated annual premium of INR 750, 75% of the premium (maximum of up to INR 565 per family per annum) along with the cost of the smart card is borne by the Central Government. The remaining 25% of the premium + additional premium, if any + administrative charges will be borne by the State Government

How to enrol for Rashtriya Swasthya Bima Yojana

Here is how the enrolment is done into Rashtriya Swasthya Bima Yojana

  • List of BPL households is provided to the insurance provider in an electronic format based on the data from Union Planning Commission
  • The insurance company will then prepare an enrolment schedule for each village with the help of the district level officials
  • The scheduled list will be posted at enrolment station and prominent places of each village. However, date and location for enrolment will be published in advance
  • Mobile enrolment centres will be set up in each village with stations being equipped to collect biometric information and photographs of the members of the eligible families
  • Centres are also equipped with printing machines to print the RSBY cards
  • Government officer called FKO –Field Key Officer needs to be present at the enrolment station for the process of verification of the legitimacy of enrolment. Insurance company representative and smart card agency official also need to be present at the time of enrolment. Data related to enrolled households will be maintained by the state nodal agency and also maintained centrally by the Government
  • A beneficiary can make payment of registration fees INR 30 and avail the card within 10 minutes

List of both public and private hospitals empanelled with insurance provider under the RSBY scheme will be provided at the time of enrolment. Along with this, smart card (RSBY card) will carry details of helpline numbers. Particularly, the state nodal agency plays an important role by monitoring, implementing and supervising of the RSBY scheme (Rashtriya Swasthya Bima Yojana). State nodal agency also coordinates with all the parties involved in the scheme such as district authorities, insurance companies and hospitals etc

Claim settlement process in Rashtriya Swasthya Bima Yojana

Claim settlement process under the RSBY scheme (Rashtriya Swasthya Bima Yojana) is hassle-free and simple. Here is the process to follow:

  • The beneficiary needs to produce RSBY card (smart card) at the network hospital while availing the healthcare services
  • After providing healthcare services, hospitals need to send an electronic report to Third Party Administrator or to the Insurance provider.
  • After verifying the information and records provided by the hospital, Third Party Administrator or the Insurance provider will settle the claims by making direct payment to the hospital within the specified time limit.
  • That’s it! It reduces the burden of out of pocket cost for the BPL population who has availed benefit under the RSBY scheme.

Rashtriya Swasthya Bima Yojana is definitely unique and cost-effective healthcare insurance made available for Indian poor families. 

Frequently Asked Questions (FAQs)

  1. What is referred to as ‘hospitalisation’ in RSBY scheme?

    Hospitalisation refers to seeking healthcare treatment at the hospital by being admitted for more than 24 hours.

  1. What are the exclusions applicable under the RSBY scheme (Rashtriya Swasthya Bima Yojana)?

    RSBY scheme does not the following expenses:

    • OPD (outpatient department) expenses. 
    • Any dental treatment or surgery unless arising out of an injury or disease
    • Congenital external diseases
    • War and nuclear perils
    • Alcohol and drug abuse
    • Fertility related treatment expenses
    • Intentional self-injury and suicide

  1. Does Rashtriya Swasthya Bima Yojana cover maternity benefits?

    Yes. Maternity benefits are covered under the RSBY scheme in case of RSBY cards issued after 1st April 2009.

  1. Does Rashtriya Swasthya Bima Yojana cover new-born member of the family?

    Yes. A newborn baby is automatically covered under Rashtriya Swasthya Bima Yojana since birth for the remaining period of the health insurance policy. To continue the cover, the head of the family can include the baby at the time of renewal.

  1. If the family has only three members, will the coverage amount change?

    No. coverage amount of INR 30,000 will remain the same irrespective of the number of members in the family as the coverage is issued on family floater basis. Family floater refers to a single cover for the entire family. This means coverage amount can be utilised by any member or all members of the family.

  1. What if the head of the family and dependants are staying in two different places for work purposes? Who can keep the RSBY card?

    If the head of the family is travelling to another district for any purpose, the dependent beneficiary can get a split card for using the same scheme at different places. Family can decide the splitting amount for the cards depending on their requirements. However, the beneficiary may have to bear the cost of issuance of the split card.

  1. What if one member of the family dies during the policy period? Can changes be made into the policy?

    If the insured member dies during the policy period, the family can provide details of another member if his/her name is included in the BPL list.

  1. What is the difference between RSBY and Ayushman Bharat?

    RSBY offers coverage up to INR 30,000 while under Ayushman Bharat scheme coverage is offered for up to INR 5 lakhs. Moreover, Ayushman Bharat scheme is supposed to absorb RSBY and offer one insurance cover for the BPL families and workers in the unorganized sector.

  1. Who is eligible for RSBY?

    Anyone in the BPL family is eligible to apply for the RSBY Scheme. If the family is registered by the State Government as a BPL family, he is eligible to apply for RSBY from the enrollment centre wherein the head of the family’s identity would be confirmed.

NPS Account – How to Open NPS Account Online?

Ankita Sejpal

National Pension Scheme is a retirement product introduced by the Government of India. The scheme falls under the jurisdiction of the Pension Fund Regulatory and Development Authority (PFRDA). NPS is a social security scheme made available for all citizens of India. Before we learn about opening the NPS account, let’s take a look at the key features of the plan.

Key features of the National Pension Scheme

  • NPS is a voluntary, defined contribution- based pension product with a two-tier structure for investment.
  • Tier I has a mandatory pension account with tax benefits available. Tier II is a flexible and optional investment account which allows you to park excess funds temporarily
  • NPS account can be opened with a minimum investment of INR 500 at once and INR 1,000 per annum.

Who can open an account in the National Pension Scheme?

All Indian citizens between the age group of 18 years and 60 years can open an NPS account. The account opened can be operated anywhere in India through wide networks of Point of Presence (POPs). There are 54 empanelled POPs, list of which is available on NSDL- eNPS portal. 

How to open an NPS account?

The NPS account can be opened through two modes – online mode and offline mode. Let’s take a look at the step-by-step procedure to open the NPS account in both the modes.

NPS account opening through online mode

All you need to have for subscribing NPS online is email ID, mobile number and an active bank account with net banking facility enabled. You can instantly open your NPS account online through PAN based registration. Your PAN card should be linked to a bank account. Following are the steps to follow for opening NPS online account:

Step 1: Log on to NSDL-eNPS portal and click on ‘National Pension System’ tab

Step 2: Click on ‘Registration’, the new registration page will open

Step 3: Choose appropriate options such as applicant type, applicant status and account type (Tier I only /Tier I&Tier II). Choose to register with Permanent Account Number (PAN), enter the PAN number and select your bank/POP to continue

Step 4: Fill in your personal details, family details and identity details

Step 5: Choose your pension fund manager out of many fund houses available in the list. Your contributions to NPS will be managed by the chosen fund manager

Step 6: Choose your preferred investment mode. There are two types of mode available – 

  • Auto mode – Equity allocation will automatically be rebalanced based your age
  • Active mode – Investment mix is decided by you among different investment fund classes

Step 7: Provide details of nomination to whom the corpus should be paid in case of death

Step 8: Upload the relevant documents such as PAN card, Passport, Photographs and scanned signatures 

Step 9: Make contributions to finish registration. Minimum contribution for Tier I account is INR 500 and Tier II is INR 1,000. Payment can be made through credit card/debit card/net banking. Once your payment is approved, PRAN (Permanent Retirement Account Number) will be allotted to you. Ensure to save the auto-generated filled registration form. 

Step 10: Print the downloaded form, sign it, attach copies of relevant documents and mail it to Central Recordkeeping Agency (CRA) within 90 days to avoid freezing of NPS account

Step 11: PRAN kit including PRAN card and scheme document will be sent to your registered mailing address.

Once your PRAN is generated, you can start making your contribution to NPS online and build your retirement corpus.

NPS account opening through the offline mode:

Following are the steps to follow for opening NPS account through offline mode:

Step 1:
Visit any of the POP (Points of Presence) empanelled with NSDL for National Pension Scheme. You can also choose a bank/financial institution listed as POP where you hold an account or have an existing relationship. POPs provide NPS account opening services through their network branches called POP service providers (POP-SP)

Step 2:
Collect an application form for opening an NPS account. Fill in all the details carefully such as your personal details, nomination details, account type, asset allocation and pension fund manager selection etc

Step 3:
Along with the signed and filled form, submit all the necessary KYC (Know Your Customer) documents.

Step 4:
Once the documents and an application is submitted to POP, you will get a 17-digit receipt number

Step 5:
Account opening may take about 20 days’ time. Once the account is opened, you will receive your Permanent Retirement Account Number (PRAN) kit containing the PRAN card and scheme details. With this, you can start your contributions into NPS account and start building wealth for your retirement future.

Documents required for opening NPS account:

Following are the documents required for opening NPS account:

  • Identity proof – PAN card mandatory
  • Proof of residence – Aadhaar card/Passport/Voter ID/Ration card/Driving licence/Telephone bills
  • Passport size photograph

Frequently Asked Questions (FAQs)

  1. What is Permanent Retirement Account Number (PRAN) in NPS?

    Permanent Retirement Account Number (PRAN) is a unique and portable 12-digit account number provided to each NPS subscriber.

  2. Can I subscribe for more than one NPS account?

    No. Multiple accounts for one individual is not allowed under the National Pension System. With the option of portability, the requirement may not even arise.

  3. Is there any contribution from the government for Individual’s NPS account?

    No. There will not be any contribution from government to NPS account.

  4. Can a change of pension fund manager be done later for NPS online account?

    Once the NPS online account is opened, you can change the pension fund manager anytime. You can even change your scheme preference and an investment option.

  5. What are the tax benefits available under the NPS account?

    Following are the tax benefits in NPS – under Tier I account

    • Employee contribution is eligible for a tax deduction of up to 10% of salary (basic +dearness allowance) within the overall ceiling of INR 1.5 lakhs under Section 80CCE of the Income Tax Act. 
    • The employer contribution is exempted from income tax under Section 80CCD (2) of the Income Tax Act. 
    • NPS offers exclusive tax savings provisions with tax deduction on the contribution of INR 50,000 under section 80CCD (1B) of the Income Tax Act.

Aam Aadmi Bima Yojna

Ankita Sejpal

What is Aam Aadmi Bima Yojna ?

The Government of India has introduced the Aam Aadmi Bima Yojna which is a social security scheme focusing on the people living in rural areas of India. The Aam Aadmi Bima Yojna is a group insurance scheme which was introduced on 2nd October 2007. Further, the scheme started operating successfully in 2013. The operational activities related to the scheme are carried out by the Ministry of Finance of India under the supervision of the Government of India.

The Ministry of Finance of India had proposed for the merging of two social security schemes i.e. ‘Aam Aadmi Bima Yojna’ and the ‘Janashree Bima Yojna’. After the merging, this scheme is known as the ‘Aam Aadmi Bima Yojna’ which offers insurance coverage to the family head of a rural family or an earning member in the family. By this scheme, the beneficiaries of the scheme qualify to apply for this scheme without having to pay any money for this. The premium for this insurance scheme is Rs. 200 and this amount is shared between the State Government and the Central Government.

The major objectives of the Aam Aadmi Bima Yojna (AABY) are:

  1. To help the rural and landless people by providing them with social security and financial aid
  2. To help in providing social security to those people who are below the poverty line.

Features of the Aam Aadmi Bima Yojna (AABY)

Let us list down some of the salient features of the Aam Aadmi Bima Yojna (AABY)

  • The major purpose of the Aam Aadmi Bima Yojna (AABY) is to make provisions for providing financial aid to the poor and rural people of the country
  • The scheme helps in providing social security not only to those people who are below the poverty line but also to those people who do not have access to modern health facilities
  • The Aam Aadmi Bima Yojna (AABY) also extends its scope to those middle-class people in the country who are not able to access improvised and good quality facilities related to health and medicines
  • The applicants while signing up for the scheme must provide the necessary documents and choose a nominee as well

Coverage Amount, Sum assured and premium rates of the Aam Aadmi Bima Yojna

  1. The sum assured in case of the Aam Aadmi Bima Yojna is Rs. 30,000. This amount is received by the insured person at the time of maturity.  In case of unfortunate death of the insured person when the Aam Aadmi Bima Yojna (AABY) is active, the sum assured is obtained by the nominee of the insured person
  2. The premium in the case of the Aam Aadmi Bima Yojna (AABY) is Rs. 200 for each member. Half of the premium amount is paid by the Social Security Fund whereas the remaining half is paid by the State Government in case of rural households. If the insured person is not from a rural household, the remaining half of the premium is paid by the Nodal Agency or State Government or by the Union Territory
  3. The Aam Aadmi Bima Yojna (AABY) provides coverage in the form of Death Benefit, Disability benefit or Accidental death benefit
    1. Death Benefit is payable in case of unfortunate death of the life insured. The death benefit payable is the sum assured amount i.e. Rs. 30,000
    2. In case of death of the life insured due to an accident, Rs. 75,000 is payable to the nominee of the life insured
    3. In case of permanent disability of the life insured due to an accident, Rs. 75,000 is payable to the life insured
    4. If the life insured has lost an eye or a limb in an accident, then he will receive Rs. 37,500 under the Aam Aadmi Bima Yojna (AABY)

Benefits provided by the Aam Aadmi Bima Yojna 

  1. Maturity Benefit
    This can also be referred to as the sum assured amount obtained on the maturity of the scheme. An amount of Rs. 30,000 can be obtained by the life insured on the maturity of the Aam Aadmi Bima Yojna. In case of unfortunate death of the life insured, the nominee of the life insured will receive the maturity benefit if and only if the policy is kept active even after the death of the life insured
  2. Scholarship Benefit
    Scholarship benefit is an add-on included in the Aam Aadmi Bima Yojna (AABY). According to the provisions of the scheme, a maximum of two children of the insured person will be provided with a scholarship of Rs. 100 for each child in a month which will be payable on a half-yearly basis. The children must be studying between Standard 9th to Standard 12th to be eligible to avail this benefit.
  3. Tax Benefit
    By being a member of the Aam Aadmi Bima Yojna (AABY), an insured person can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Eligibility criteria for participating in the Aam Aadmi Bima Yojna (AABY)

  1. The minimum age to become a member of the Aam Aadmi Bima Yojna scheme is 18 years and the maximum age is 59 years
  2. The Aam Aadmi Bima Yojna (AABY) is available only to the head of a family or to the earning member of a family that lies below the poverty line
  3. Necessary documents must be submitted for becoming a member of the Aam Aadmi Bima Yojna (AABY)

How the scheme helps Government efforts towards life insurance penetration?

The people of India belonging to the rural household and living in remote locations usually have to undergo several hardships including lack of good medical amenities and other basic facilities. The main objective of the Aam Aadmi Bima Yojna is to bring an improvement in the lives of these people. The scheme has provisions by which rural people can avail the benefits of insurance coverage in case of unfortunate incidents like death accidents, permanent disabilities, etc. This scheme has been able to make rural India understand the importance of life insurance up to a large extent.

Claim procedure of the Aam Aadmi Bima Yojna (AABY)

Let us check out the details related to the Claim procedure of the Aam Aadmi Bima Yojna (AABY)

  1. Claim procedure in case of death of an insured person
    The nominee of the life insured must apply in case of the death of the insured person. The nominee will also have to submit a death certificate of the insured person. The Nodal Agency will appoint an officer who will be in charge of the verification of the claim made. Another document which is a certificate to confirm that the head of the family belongs to below the poverty line also needs to be submitted. After the verification of all the documents, the claim would be processed.
  2. Claim procedure in case of Accidental death of the insured person
    If the life insured meets with an accident, then a death certificate and the below-mentioned documents should also be submitted for claim settlement

      1. Post mortem Report
      2. A copy of FIR
      3. Police Enquiry Report
      4. Final Report of Police
  3. Claim procedure for scholarship
    For availing the benefits of the Scholarship Benefit, the child of the insured person should fill up an application form in every 6 months. This application form has to be submitted to the Nodal Agency for verification.  Furthermore, the identification and verification of the child applying for the scholarship will be verified by the Nodal Agency.
    After the verification procedure, the details of children qualified for scholarships such as name, school’s name, class, etc. would be declared by the Nodal Agency. After a tenure of every six months, the scholarship fee is credited into the bank account of the insured person for the child.

How to apply for the Aam Aadmi Bima Yojna ?

To apply for the Aam Aadmi Bima Yojna, the below-mentioned steps need to be followed.

  1. The applicant should visit the Nodal Agency to apply for the Aam Aadmi Bima Yojna
  2. The Nodal Agency might be an institution or an NGO which would have been appointed for carrying out the operations of the Aam Aadmi Bima Yojna (AABY)
  3. The supervision might be under the central Government of India or the Union Territory of India
  4. Suppose the applicant belongs to a Rural Household, he will have to connect with the appointed State Government or the Union Territory

There is a list of documents that need to be submitted for becoming a member of the Aam Aadmi Bima Yojna.

  1. The Name of the applicant should be present in the Voters list
  2. Aadhar Card
  3. Ration Card
  4. Extract of the applicant from the birth certificate and school certificate
  5. An identity card that has been issued by the Government of India or issued by a well-known employer

Frequently Asked Questions

  1. Which occupations and vocations are covered under the Aam Aadmi Bima Yojna (AABY) ?Some of the occupations covered under the Aam Aadmi Bima Yojna (AABY) are mentioned below:
    1. Carpenters
    2. Cobblers
    3. Handloom Weavers
    4. Forest Workers
    5. Hilly Area Women
    6. Agriculturists
    7. Plantation workers
    8. Rural landless households
  2. Who is eligible to avail the scholarship benefits?
    Every insured person is eligible for availing the scholarship benefits. The child of the insured person must be studying in between Class 9th to Class 12th to be eligible to avail the scholarship benefits.
  3. What is the eligible age bracket for getting included in the Aam Aadmi Bima Yojna ?
    The eligible age bracket for getting included in the Aam Aadmi Bima Yojna is 18 years to 59 years.
  4. What are the nodal agencies associated with the operations of Aam Aadmi Bima Yojna ?
    Nodal Agencies are offices which are concerned with the resolution of operational issues associated with the projects or schemes initiated by the Government. Nodal Agencies can include NGOs, Panchayats or any Self Help Groups.
  5. When was the Aam Aadmi Bima Yojna started?
    The Aam Aadmi Bima Yojna (AABY) was started on 1st January 2013.
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