Author: Sidharth Hampanavar

The what, the why and the how of Term Insurance Plans

Sidharth Hampanavar

Ronit, 35-year-old MNC employee meets with a road accident while returning home from work. He suffered a head injury and died in the ambulance on the way to the hospital. His homemaker wife, son and elderly father were in deep shock. However, they did not have to face the financial challenge after this traumatising incident. Coping up with the eventuality became less of a financial burden with the term insurance plan which was purchased by Ronit at the age of 30 years. If had not made this wise decision years before, his family has to deal with the financial crisis. Having an adequate amount of term insurance is important.

Though death is the last thing one would want to think about, it’s important to secure your family’s financial future against the uncertainties of life. Term insurance plans are particularly meant for that.

What is Term Insurance?

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

Why Term Insurance? Term insurance benefits

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

  1. Simple structure/Easy to understand:

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

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

  1. Protection/death benefit:

    The unfortunate demise of the bread earner of the family can have the worst financial repercussions in many ways. Dependants may have to suffer the loss of regular income/income stream, the burden of unpaid debts and corpus to meet various long-term goals such as children’s education, marriage etc. These things can make the family’s financial position unstable. Term insurance benefits you by paying the sum assured as a death benefit to the family (designated beneficiary) on the unfortunate demise of the policyholder during the policy term. The lump sum paid as death benefit helps to maintain the financial stability of the family.

  1. Higher coverage option:

    Compared to other investment cum insurance products, term life insurance being the pure protection plan offers a higher range of coverage at a relatively lower cost.

  1. Low cost:

    Term insurance premiums are lower in comparison to other life insurance products. As the term insurance plan only provides protection and no savings component involves, premium payable is also lower. Specifically, when you purchase term insurance online, premium will be even lower as online policies will not involve intermediary cost.

  1. Tax benefits:

    Though term insurance plans should be purchased on the basis of just the tax benefits provided by the plan, it’s important to know the tax implications of the plan. Premium paid towards term insurance plan in a year maximum of up to INR 1.5 lakhs qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Death benefits paid in a lump sum by the policy is completely tax-free under the provisions of Section 10(10D) of the Income Tax Act, 1961.

  1. Additional benefits:

    Term insurance benefits are not just limited to death benefits. The plans available today are customisable as many of the plans offer additional optional benefits. There are many riders offered by various term plans which can be availed by paying an additional nominal premium in order to enhance the coverage. Riders available are critical illness rider and accidental death and disability rider etc.

Top 5 term insurance plans in India

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

Plan nameEntry ageAge at maturitySum assuredPolicy termClaim settlement ratio
TATA AIA Life Insurance Sampoorna Raksha Plan18 years to 70 years28 years to 80 yearsINR 50 lakhs to no limit10 years to 40 years98.00%
ICICI Pru iProtect Smart Plan18 years to 60 years23 years to 75 yearsSubjected to the premium amount5 years to whole life97.88%
HDFC Click2protect 3D Plus Plan18 years to 65 years23 years to 75 yearsINR 10 lakhs to no limit5 years to whole life (depending on the plan chosen)97.80%
Max Life Online Term Plan Plus18 years to 60 yearsUp to 85 yearsINR 25 lakhs to INR 100 crores10 years to 50 years98.26%
AEGON Life’s iTerm Insurance Plan18 years to 65 yearsUp to  75 yearsSubjected to the premium amountTill 100 years 95.67%
  1. TATA AIA Life Insurance Sampoorna Raksha Plan

    TATA AIA Life Insurance Company is a joint venture between two leading business groups – TATA sons and AIA group. Being one of the leading insurance companies, it offers a variety of life insurance products. Sampoorna Raksha is one of the popular term insurance products offered by the company which can be purchased online. Following are the features of the plan:

    • The pure protection plan that comes with the flexibility to choose the various death benefit options:
      • ‘’Sum assured on death’’ that pays out a lump sum benefit
      • ‘’Sum assured on death’’ to avail lump sum benefit and monthly income for the next 10 years
      • ‘’Enhanced sum assured on death’’
      • ‘’Enhanced sum assured on death’’ plus monthly income for the next 10 years
    • Premium payment type can be regular or limited pay (5 or 10 years)
    • Flexible premium payment mode – Yearly/half-yearly/quarterly/monthly
    • Enhance the coverage with accidental death and dismemberment rider
    • Offers discounted rates for non-smokers and female lives
    • Large sum assured rebates are offered
  1. ICICI Pru iProtect Smart Plan

    ICICI Prudential Life Insurance Company is one of the leading private insurers that has a countrywide presence. The company offers a wide range of life insurance plans to cater to various protection and investment needs of people. ICICI Pru iProtect Smart is a popular product on the digital platform. Following are the salient features of the plan:

    • Flexibility to choose the protection cover in four options – life, life plus, life and health, all in one
    • The policy provides comprehensive coverage against death, disability and critical illness (depending on the option chosen)
    • Special discounts for female lives along with extensive coverage by covering breast cancer and cervical cancer
    • Sum assured can be increased while achieving major milestones in life
    • Flexible payout options to choose from – Lump sum, monthly income and increasing income
    • Provide an overview of Term insurance
    • Add what are the benefits of term insurance (high life covers at lower premiums, tax benefits, death benefits option, etc.)
    • Flexible premium payment mode – Yearly/half-yearly/monthly
  1. HDFC Click2protect 3D Plus Plan

    HDFC Life Insurance Company is a well-established private insurance player in India that offers various individual and group insurance policies. HDFC Click2Protect 3D Plus Plan is a term plan that provides comprehensive protection. Following are the features of the plan:

    • The plan offers flexible protection options to choose from 9 different plans:
      • Life option
      • 3D life option
      • Extra life option
      • Income option
      • Extra life income option
      • Income replacement option
      • Return of premium option
      • Lifelong protection option
      • 3D Lifelong protection option
    • All the plans come with three in-built features – Death benefit, accidental total permanent total disability and terminal illness
    • Increase in sum assured during major life stage events
    • Premium payment methods – single, limited pay and regular pay
    • Maturity benefit is offered under the return of premium variant
    • The policy offers top-up option to enhance the cover
    • Flexible premium payment mode – Single/yearly/half-yearly/quarterly/monthly
  1. Max Life Online Term Plan Plus

    Max Life Insurance Company is one of the most popular insurance companies in India that offers a wide array of life insurance products with innovative features. Max Life’s online offering, Max life online term plan plus also has various new-age features. Following are the features offered by the plan:

    • Comprehensive term insurance plan that gives protection against death, disability and critical illnesses. There are three variants to choose from – life cover, life cover + monthly income, life cover + increasing monthly income
    • Flexibility to increase the sum assured based on the life stage requirement
    • Plan can be opted with the return of premium to receive the maturity benefits
    • Flexible premium payment mode –yearly/half-yearly/quarterly/monthly
  1. AEGON Life’s iTerm Insurance Plan

    AEGON Life Insurance Company that came into operation in India in the year 2008 offers various individual and group insurance plans. iTerm insurance plans are one of its popular offerings on the online platform. Following are the features of the plan:

    • The policy provides comprehensive protection with in-built terminal illness cover
    • Coverage can be enhanced with various optional riders
      • Aegon Life accidental death rider
      • Aegon Life waiver of premium rider on critical illness
      • Aegon Life critical illness rider
      • Aegon Life women critical illness rider
      • Aegon Life disability rider
    • Premium payment methods – single and regular pay
    • Flexible premium payment mode – Single/yearly/half-yearly/quarterly/monthly

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

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

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

Documents required for buying term insurance plans

Following are the documents required for buying term insurance plans:

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

Frequently Asked Questions (FAQs)

  1. How much term insurance coverage do I need?

    Deciding the coverage depends on various factors. Keep your liabilities, investments, number of dependents, your income and lifestyle in mind while choosing the cover. Coverage requirement may vary from individual to individual.

  1. What is Return of premium term insurance plan?

    Return of premium term insurance plans is designed to provide maturity benefit. In case the policyholder survives the policy term, return of premium policies pays back the premiums paid by the policyholder on maturity. The premium for such plans is relatively higher in comparison to a regular term plan.

  1. What should be the ‘ideal term’ for term insurance plans?

    The policy tenure needs to be chosen depends on each individual’s requirement. It’s important to be covered until your retirement age that is usually 60 years. As, after that, you may not have financial dependants and unpaid debts. Calculate the term of the policy that you need to take based on these factors.

  1. What happens to the policy if I surrender or terminate the policy during the policy term?

    In term insurance plans, the major benefit provided is the life cover. If you surrender in between you would not only lose out on premium but also be deprived of risk cover for the rest of the tenure. There is no surrender value paid in term insurance policies.

  1. What is the claim settlement ratio?

    Claim settlement ratio indicates the company’s claim payment ability. Claim settlement ratio is a ratio of a number of claims settled against the number of claims filed with the company.

Top 15 Life Insurance Companies in India: Updated List

Sidharth Hampanavar

Life is uncertain and unpredictable. One can only have a proactive measure in place to deal with unpleasant situations. Hence, the concept of ‘insurance’ was introduced with a motive to mitigate the risk and to provide protection. Insurance is the primary way of managing life risk. There are various types of insurance policies available today to protect your loved ones and the things you love. In a life insurance policy, Insurance indemnifies to pay the insured person’s family a certain sum of money in the event of the insured’s demise. When it comes to choosing the right insurance plan, you are spoilt with choices as there are various insurance players in the market offering plenty of unique plans.

In India, there are 24 life insurance companies operating which have been approved and recognized by IRDAI (Insurance Regulatory and Development Authority in India), which is a regulatory body for insurance and reinsurance industries.

To shortlist the best term insurance plan as per your requirements, we recommend that you click on the button below, fill in a few insurance-related fields and let our system suggest a suitable insurance policy as per your requirements.

Importance of insurance

Insurance is an essential cost that one needs to make in order to secure the future of his/her family. Even the financial advisers suggest you avail of insurance before you start with your financial planning. Insurance is an important necessity for various reasons. Following are some of the reasons:

  1. Insurance provides you with financial security and a safety net:
    If something unforeseen happens to the bread earner of the family, the financial situation of the family may come to a standstill. Insurance compensation can become a source of income for the family and stabilize the finances. With insurance, your family is financially secure even when you are not around.
  2. Insurance safeguards you and your family’s future goal:
    The sudden demise of a family’s breadwinner can have the worst repercussions on the family’s financial stability. With insurance, your family can achieve financial stability even when you are not around. Also, their future financial goals will stay intact.
  3. Insurance encourages savings:
    There are various products offered by life insurance companies that not only provide life cover but also provide a provision for wealth creation to achieve future goals. The requirement of periodic investment into such products encourages savings. For example, endowment plans, money back plans, unit-linked investment plans etc.
  4. Insurance is an effective risk management tool:
    The insurance covers uncertainties such as the risk of death, risk of getting hit, falling sick and many more. Insurance is all about managing these risks effectively. Every insurance policy provides coverage against insured risk.
  5. Insurance provides peace of mind:
    As insurance manages risk effectively, you can only make regular payments towards insurance and stay tension-free. Peace of mind is what you get by insuring.

Top #15 insurance companies in India:

Following is the list of top insurance companies in India

  1. Life Insurance Corporation of India

    Life Insurance Corporation of India popularly known as LIC is the largest life insurance company in India owned by the Government of India. LIC, one of the top 10 insurance companies in India, came into existence in the year 1956. LIC makes insurance accessible for every person in any corner of the country with 2048 branch offices, 113 divisional offices, 8 zonal offices and 1408 satellite offices. Currently, LIC’s total assets under management are INR 3,111,847 crores (USD 450 billion). LIC being the dominant insurance player has a huge customer base of over 29 crores policyholders. LIC is a trusted insurance brand that offers great convenience to its customers through its excellent customer services on the digital platform and also through branch offices and various other tie-ups. LIC offers numerous life insurance products that can meet the unique needs of a variety of customer segments. For all the milestones it has achieved, LIC has been consistently recognised and awarded. Following are some of the awards received by LIC:

    • LIC has been consistently winning the Reader’s Digest Trusted Brand Award
    • According to the Brand Trust Report, LIC has been consistently voted as ‘India’s Most Trusted Brand’ in the BFSI category
    • LIC has won ‘Best Life Insurance Company of the Year’ and ‘Most Preferred Life Insurance Company of the Year’ award

    In fact, the flexibility offered with the LIC plans is so diverse that choosing a LIC policy itself can be quite a dilemma. To make things easier for you, we have compared the top policies offered by LIC along with their features and benefits in the post linked below.

  2. Max Life Insurance Company

    Max Life Insurance Company founded in the year 2000 is the largest non-bank private sector insurance company in India. Max Life Insurance Company is a joint venture between Indian Max India Ltd, a multi-business Indian corporation and Mitsui Sumitomo Insurance Company, a Japanese Insurance Company. Max life insurance company is one of the fastest-growing insurance companies in India with assets under management of INR 90, 407 crores.The company has a customer base of more than 32 lakhs. With a strong online presence, a wide portfolio of products, multi-distribution channels and offices across the country, Max Life Insurance Company provides high-quality customer services. Max Life has been receiving awards and recognitions consistently. With a high claim settlement ratio, Max Life has been awarded as ‘Claims Service Leader’ and ‘Excellence in Claims Service’ by CMO Asia Awards.

    Max Life Insurance allows you to select from multiple types of products being offered by them in the market. You can read more about Max Life Insurance and check their insurance plans below.

  3. HDFC Life Insurance Company

    HDFC Life Insurance Company, one of the top insurance companies in India is a joint venture between HDFC Ltd, a leading housing finance institution in India and Standard Life Aberdeen, a global investment company. Founded in the year 2000, HDFC Life offers a wide array of insurance and investment solutions to various customer segments. HDFC Life serves its customers across the country through 390 branches and additional distribution touchpoints and bancassurance partners. With a strong digital platform, services are accessible easily to the customers. HDFC Life has received many accolades and awards for its continuous contribution to the Indian Insurance Industry. Following are some of the details:

    • HDFC Life is ranked as ‘Most Valuable Private Life Insurance Indian Brand’
    • HDFC Life has received ‘Creative Excellence Award’ at INDIAA awards 2018
    • HDFC Life has received ‘Best Life Insurance Company’, ‘Best Analytic Initiative of the Year’ and ‘Best Underwriting Initiative of the Year’ at BFSI awards.
    • HDFC Life is recognised as the Best 50 PCI Companies for 2019
    • HDFC Life has received the YUVA Unstoppable Changemaker award in 2021
    • HDFC Life is recognised as Superbrand 2021

    HDFC life insurance offers considerable flexibility with their insurance policies, at 99.07%, their claim settlement ratio is quite impressive as well. Click the link below to know more about the life insurance plans offered by HDFC.

  4. ICICI Prudential Life Insurance

    ICICI Prudential Life Insurance Company is promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited. Founded in the year 2000, ICICI Prudential Life is one of the best insurance companies in India having its presence all over the country today with its strong bancassurance channel and multiple distribution channels. ICICI Prudential Life’s assets under management as of 30th June 2021 is INR 2,231.71 billion. With the customer-centric approach, ICICI Prudential Life offers various long-term protection and savings plans for a diverse customer segment. For its excellence in the field of insurance, ICICI Prudential Life Insurance Company has been receiving many accolades and awards. Let’s take a look at a few of such recognitions.

    • ICICI Prudential Life is ranked as one of the ‘BrandZ Top 75 Most Valuable Indian Brands 2020’ and also awarded as ‘’Best Contact Centre’’ by the Customer Fest Leadership Awards 2021.
    • ICICI Prudential Life has received the ‘Life Insurance Company of the Year’ award at the India Summit and Awards 2019
    • ICICI Prudential Life has received ‘Life Insurance Provider of the Year’ by Outlook Money Awards 2018
    • ICICI Prudential Life has received the ‘Best Term Insurance Provider of the Year’ award by Money Today Financial Awards 2017-18
    • ICICI Prudential Life is awarded as ‘Best Customer Orientation in Life Insurance’ award by Emerging Asia Awards 2018
    • ICICI Prudential Life is awarded as ‘Best Growth in Life Insurance’ category by Emerging Asia Awards 2018
  5. Tata AIA Life Insurance Company

    Tata AIA Life Insurance Company is a joint venture between Tata Sons Private Limited, one of the largest business groups and AIA Group Limited, Asia’s largest insurance group. Tata AIA Life Insurance Company’s assets under management in 2021 is INR 46,281 crores. Being one of the trusted insurance brands in India, Tata AIA Life offers numerous insurance solutions starting from protection to wealth creation. The policies provide simple solutions for unique insurance needs along with excellent customer service.

    Read more about Tata AIA Life Insurance and get information on their insurance plans to secure your future today.

  6. Bharti AXA Life Insurance Company

    Bharti AXA Life Insurance was founded in the year 2006. It is a joint venture between AXA Group and Bharti Enterprises. The strong financial expertise and domestic business excellence of these companies have laid a strong background for the company. Bharti AXA Life has introduced various innovative insurance products to cater to the unique needs of customers. Bharti AXA Life’s distribution network is spread across 123 cities in the country. The company offers various plans starting from protection plans to save, health and group plans and most of them are offered conveniently on an online platform.

    Bharti AXA won the ASSOCHAM Award in March 2019 in recognition of excellence in the field of insurance and also received the award for customer service excellence! To browse through the various plans offered by them, click on the link below.

  7. Bajaj Allianz Life Insurance Company

    Bajaj Allianz Life Insurance Company founded in the year 2001 is a joint venture between Bajaj Finserv Limited of Bajaj Group. Bajaj Allianz Life has 759 branches across the country to offer innovative insurance solutions to various customer segments. Bajaj Allianz Life Insurance is known for its strong innovative products and timely customer service. The company has won various awards and recognition for its contribution to the insurance industry. Following are some of the awards received by Bajaj Allianz Life Insurance:

    • Bajaj Allianz Life has been recognised as the ‘Digital Marketer of the Year 2018’ in the insurance category
    • Bajaj Allianz won the ‘Customer Service Excellence Award’ at the NASSCOM BPM Strategy Summit 2018.
    • Bajaj Allianz Life ranked amongst the Top-75 Most Valuable Indian Brands
    • Bajaj Allianz Life has received Digital Technology Senate Awards 2021.
    • Bajaj Allianz Life has won the Red Hat APAC Innovations Award 2020.

    Ranked amongst the Top 75 Most Valuable Indian Brands 2019, Bajaj Allianz is one of the leading Indian insurance providers. Read about Bajaj Allianz Life insurance plans and check out their policies by clicking below.

  8. SBI Life Insurance Company

    SBI Life Insurance Company is a joint venture between State Bank of India (SBI), India’s largest bank and BNP Paribas Cardif, a French multinational bank and financial services company. Currently, SBI Life Insurance has an authorized capital of INR 20 billion (USD 290 million). SBI Life was first started as a bancassurance business which is now extended to the multi-distribution channel. With customer service excellence and product innovations, the company has been growing year on year. SBI Life has received many awards and accolades for its work in the field. Following are some of them:

    • SBI Life has won the ‘Brand of the Year 2016-17’ award in the insurance category
    • SBI Life has won the ‘Private Sector Life Insurance Company of the Year’ award at the Fintelekt Insurance Awards
    • SBI Life has won ‘Bancassurance Leader, Life Insurance’ in the large companies category.
    • SBI Life has won ‘Insurer of the Year’ in 2020 by FICCI
    • SBI Life has won Best Covid Response-Towards Customers Towards Communities award at ASSOCHAM 13th Global E-Summit 2020.

    SBI Life Insurance is one of the market leaders for life insurance policies in India. It offers different policies with several benefits for the policyholders.

  9. Reliance Nippon Life Insurance Company

    Reliance Nippon Life Insurance Company, founded in the year 2001 is one of the leading insurance companies in India catering to various segments of people. Reliance has more than 10 million policyholders. The company has made insurance accessible for many through its strong distribution network of 713 branches. Reliance Life has a product for every possible need of the individual. The company has received many awards.

    • Reliance Life has received Best Digital Customer Experience Award and TechCircle Business Transformation Awards 2021. 
    • Reliance Life has received ‘Innovative Insurance Provider of the Year’ at ET BFSI Excellence Awards 2019
    • Reliance Life has received the ‘Best Risk Innovation of the Year’ award
    • Reliance Life has won the ‘Best Life Insurance Company (innovative Products)’ title

    Browse different insurance plans by Reliance Nippon by clicking below and get a life insurance cover today.

  10. AEGON Life Insurance Company

    AEGON Life Insurance Company, founded in the year 2008 is one among the best to offer various life insurance solutions to various customer segments. AEGON Life is a new age company with a strong digital presence and a diverse product portfolio. The company has received many awards and recognition

    • AEGON Life has received the ‘’Digital Company of the Year – 2020’’ award and ET BFSI Award in 2019.
    • AEGON Life has received the ‘E-business Leaders Award’ at Indian Insurance Awards
    • AEGON Life has received the ‘Celent Model Insurer Asia Award’
    • AEGON Life has won ‘Most recommended Life Insurance Brand 2013’
  11. Aviva Life Insurance Company

    Aviva Life Insurance Company is a joint venture between Aviva plc, a British Assurance Company and Dabur Group, an Indian conglomerate. With more than 121 branches and 9000+ employees, Aviva Life has been offering a wide array of insurance products starting from protection plans to savings and retirement plans. Online products, customer service and many more areas make the company one of the top insurance companies in India. Aviva Life has been awarded as the ‘Best and Most Trusted Brand, 2019’

    Aviva Life Insurance Company was declared to be the Most Trusted Private Life Insurance Brand for the years 2018 and 2019 by TRA, Brand Trust Report – India Study. You can read more about the company to select a plan from Aviva Life Insurance below.

  12. Birla Sun Life Insurance Company

    Aditya Birla Sun Life Insurance Company, founded in the year 2000 is a subsidiary of Aditya Birla Capital Limited. Aditya Birla Sun Life Insurance Company was formed by the coming together of Aditya Birla Group and Sun Life Financial, the leading international financial services organisation in Canada. Birla Sun Life is one of the best insurance companies in India that offers a diverse range of insurance solutions starting from protection plans to pension plans, savings plans and many new-age products. Total assets under management of the company are INR 5,26,151 million as of March 2021. The company has its presence across the country with 386 branches, 7 bancassurance partners, 6 distribution channels and 90,000+ direct selling agents. Birla Sun Life Insurance Company has received many accolades and awards for its continued contribution to the industry.

    Birla Sun Life Insurance Company had received ‘Successful Performance’ for 4 years Award in April 2005 by The Indo-Canadian Business Chamber. You can get complete information about plans from Birla Sun Life on this page.

  13. Kotak Life Insurance Company

    Kotak Life Insurance Company is one of the fastest-growing and top insurance companies in India with a base of 30 million + policyholders. Kotak Mahindra Bank is the parent company for Kotak Life Insurance. Kotak Life Insurance Company offers a diverse range of insurance products to every section of society with unique features. Currently, the company has 32+ products, 18 riders, 10 Unit Linked Investment Plans and 9 group products to offer. Kotak Group has achieved many milestones in the financial services field and has been awarded and recognised consistently for its achievements.

    Kotak Life Insurance offers several benefits such as protection, wealth creation, tax benefits, and more. The company offers several plans such as savings and investment plans, child plans, savings plans, and retirement plans about which you can read below.

  14. PNB MetLife Insurance Company

    PNB MetLife Insurance Company is one of the best insurance companies in India founded in the year 2001. The company serves customers of over 7,000 locations through its multi-distribution channels by offering numerous life insurance and savings products. PNB MetLife has received many awards for its excellence in the field of insurance.

    • PNB MetLife has won an award for ‘Best in Diversity and Inclusion’ by People Matters Awards 2019
    • PNB MetLife has received the ‘Best Product Innovation’ award for Mera Heart and Cancer Care plans at National Awards for Excellence in Insurance
    • PNB MetLife has been awarded as ‘Most Sustainable Company of India’

    PNB MetLife helps its customers to achieve their financial & security goals through its flexible insurance options. It also offers excellent customer support services for a smooth purchase and redressal. Read more about the Life insurance plans offered by the company by clicking below.

  15. Canara HSBC OBC Life Insurance Company

    Canara HSBC OBC Life Insurance Company was founded in the year 2008 is one of the top insurance companies in India. The company came into existence by coming together of the two largest public sector banks in India – Canara Bank and Bank of Commerce along with HSBC Insurance Holdings Limited. Canara HSBC OBC Life has a customer base of around 60 million customers. With the huge network of banks and distribution channels, the company is offering insurance products accessible to everyone across the country.

    Following is the list of best insurance companies in India

    Sl. No.

    Company Name 

    Claim Settlement Ratio (2017-18)

    Claim Settlement Ratio (2018-19)

    Premium (in INR)

    1.

    Life Insurance Corporation of India

    94.45%

    97.79%

    17,228

    2.

    Max Life Insurance Company

    95.26%

    98.74%

    10,148

    3.

    HDFC Life Insurance Company

    88.63%

    99.04%

    12,478

    4.

    ICICI Prudential Life Insurance

    92.03%

    98.58%

    12,502

    5.

    Tata AIA Life Insurance Company

    94.00%

    99.07%

    9,912

    6.

    Bharti AXA Life Insurance Company

    96.29%

    97.28%

    9,440

    7.

    Bajaj Allianz Life Insurance Company

    83.94%

    95.01%

    14,067

    8.

    SBI Life Insurance Company

    92.13%

    95.03%

    15,070

    9.

    Reliance Nippon Life Insurance Company

    86.11%

    97.71%

    11,012

    10.

    AEGON Life Insurance Company

    94.58%

    96.45%

    8,331

    11.

    Aviva Life Insurance Company

    92.25%

    96.06%

    9,007

    12.

    Aditya Birla Sun Life Insurance Company

    90.51%

    97.15%

    10,270

    13. 

    Kotak Life Insurance Company

    88.88%

    97.4%

    9.558

    14.

    PNB MetLife Insurance Company

    82.40%

    96.21%

    10,146

    15.

    Canara HSBC OBC Life Insurance Company

    92.03%

    94.04%

    9,491

    (Please note: Sample premium for the term plans of the insurance company are calculated for INR 1 Cr sum assured taken for 30 years tenure by 30-year-old healthy man)

    The Indian life insurance market offers freedom of choice to the customers and they can select the plans which suit them best. Select a plan from one of the 15 best companies in India today and gift yourself a safe future.

How to Choose the Best Insurance Company?

While choosing a life insurance product, it is quite natural to choose a product based on recommendations by your friends, colleagues, advisor or just based on the price alone. But, choosing the right insurance company is more important, which involves various aspects to consider. You need to consider some of the important aspects while choosing the life insurance company so that you can reap the maximum benefit in times of need. 

Following are the important factors to consider to choose the best insurance company:

  • Financial solidity

    While choosing a life insurance company, it’s important to look at the financial soundness of the company as life insurance is a long-term investment. You need to look at the solvency ratio of the life insurance company. A higher solvency ratio represents a company’s financial solidity to protect itself from the risk of insolvency during difficult times.

  • Service quality

    Customer satisfaction and service quality are the two important aspects to consider while choosing a life insurance company. It is important to go with the insurance company that offers excellent quality customer service along with high-level customer satisfaction. 

  • Claim settlement ratio

    Claim settlement ratio refers to the percentage of insurance claims settled by the life insurance company against the total claims received in the particular year. The industry regulator, IRDAI publishes the claim settlement ratio of each life insurance company in the annual report. It’s always ideal to go with life insurance companies that have a high claim settlement ratio.

  • Premium and cost

    Insurance companies will have to incur various expenses such as the commission for intermediaries, agents, cost of advertising, underwriting, etc. However, these expenses will be taken out of the premium charged. Hence, the higher the expense ratio higher will be the premium. With the online plans, Insurance plans are offered at a reduced cost. The premium for the life insurance plans varies from insurance company to insurance company based on your age, type of the plan, features and the coverage amount you are opting for. Hence, while choosing the life insurance company, it is important to compare the plans offered based on the benefits and cost of the insurance products.

  • Product portfolio

    Most of the life insurance companies in India offer a broad range of products. Every insurance company keeps coming up with innovative insurance products with unique features. While selecting the insurance company, you need to check the type of products it offers and its features that meet your life insurance and investment needs.

Frequently Asked Question (FAQs):

  1. What is the claim settlement ratio?
    The claim settlement ratio in insurance is the total number of death claims approved by an insurance company out of the total number of death claims received by an insurance company for the financial year. The claim settlement ratio denotes the company’s ability to pay or compensate.
  2. What is life insurance?
    Life insurance is a legal agreement between two parties insured (policyholder) and the insurer (insurance company), wherein the insurer indemnifies to pay a certain sum of money to the designated nominee in the event of the demise of the policyholder (insured) in return of premium paid by the insured.
  3. How does life insurance work?
    Life insurance covers the risk of death. In case the policyholder dies during the policy term, compensation, as agreed in the life insurance agreement, will be paid to the designated nominee of the policyholder.
  4. What are the tax benefits offered under life insurance plans?
    Premium paid towards life insurance investment qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. The benefits paid out in a Lump Sum are exempt from income tax under Section 10 (10D) of the Income Tax Act, 1961.

Comparing Government Health Insurance Schemes for Senior Citizens

Sidharth Hampanavar

The rising rate of medical inflation has made it important to have health insurance covers, particularly for elderly parents, an important necessity. With the age of a person, health deteriorates. Hence, senior citizen’s medical bill keeps rising with their age. Considering the high cost, they may have to be more dependent on the family financially. Many salaried people can buy health insurance coverage for their parents through employer-sponsored schemes. However, that’s not sufficient! To have an adequate cover, it’s important to avail a standalone health insurance cover for parents. When it comes to buying health insurance, the market is flooded with a variety of plans for choice. However, health insurance plans for senior citizens are limited and restricted. Health insurance plans offered by the private insurance companies for senior citizens are quite expensive considering the ‘high risk’ with respect to age.

Are you looking for health insurance plans for your elderly parents? Do you want to give them the best health insurance plan to take care of their healthcare needs? Then, it’s important to know that there are several government-sponsored health insurance schemes for senior citizens that are exclusively designed to address the unique healthcare needs of senior citizens in a cost-effective manner. Click here, enter a few details & choose from the most appropriate senior citizen health insurance policy for your parents.

*Conditions Apply

With increased awareness and importance of health insurance among people, the health insurance industry has witnessed major growth in recent years. In order to address the special healthcare needs of senior citizens conveniently without any ambiguity, IRDAI (Insurance Regulatory and Development Authority of India) has laid down many rules and regulations. Before we understand government health insurance for senior citizens, let’s take a look at the rules and regulations laid down by the Insurance Regulator, IRDAI on senior citizen health insurance schemes.

Government Senior Citizen’s Health Insurance Policy – IRDAI Rules and Regulations

Following are the regulatory actions by IRDAI with regards to senior citizen health insurance policies:

  1. IRDAI has constituted a committee on senior citizen health insurance to go into special requirements. Various recommendations from this committee were also implemented.
  2. As per IRDAI, individuals up to the age of 65 years should be allowed to buy health insurance
  3. It’s mandatory for insurance providers to provide the reason for the rejection in writing for any senior citizen health insurance application.
  4. Senior citizen health insurance policyholder should be given an option to change his/her TPA (Third Party Administrator) wherever practicable
  5. If the risk is accepted by the insurance provider, at least 50% of the cost for pre-insurance medical check-ups may be reimbursed in senior citizen health insurance policy.
  6. No insurance provider can refuse to renew a health insurance policy for senior citizens unless it is on the grounds of moral hazard, fraud or misrepresentation.

Importance for Health Insurance for Senior Citizen

There are multiple reasons which make it imperative and necessity to have health insurance for senior citizens in the family. Following are some of the reasons to have health insurance for senior citizens or elderly parents in the family.

  1. Senior citizens are more prone to illnesses:

    Health issues start arising from ageing. With the deterioration in health and age-related illnesses, senior citizens may be required to visit hospitals often. Having a health cover is important to bear the expensive healthcare costs.

  1. Insurance helps you avoid debt crisis:

    As you age, you may get retired from your job and some may even have to depend on children. Hospitalisation costs can be huge. Sometimes you may have to seek money or loan from someone outside. In order to avoid additional debts at an older age, availing health insurance can provide required coverage at a competitive rate.

  1. Financial security gives peace of mind:

    Falling sick or health issues are common with increasing age. Availing health insurance provides a sense of financial security among senior citizens.

Government Senior Citizen Health Insurance Scheme

Basically, there are four public sector non-life insurance companies through which health insurance plans are introduced for the well-being of the country. Below are the public sector insurers that offer health insurance plan for senior citizens.

  1. United India Insurance Company
  2. The New India Assurance Company Limited
  3. The Oriental Insurance Company Limited
  4. National Insurance Company Ltd.

Following are the government health insurance for senior citizens offered through these companies.

  1. The New India Assurance’s Senior Citizen Mediclaim Policy

    Senior Citizen Mediclaim Policy offered by The New India Assurance Company Limited is exclusively designed for senior citizens keeping in mind their unique healthcare requirements. Following are the important features of Senior Citizen Mediclaim Policy.

    Features of The New India Assurance’s Senior Citizen Mediclaim Policy

    1. The policy reimburses the cost of health check-up once in a block of four claim free-years
    2. 10% family discount is offered on policy premium in case spouse is also covered
    3. 10% discount is offered on opting for voluntary excess of INR 10,000
    4. Additional 10% premium is charged for renewals at the age of 81 to 85 years
    5. Additional 20% premium is charged for renewals at the age of 86 to 90 years
    6. Additional 10% premium is charged for covering pre-existing illnesses such as diabetes and hypertension from the date of policy inception.
    7. Income Tax Benefits under Section 80D of the Income Tax Act, 1961.

      Eligibility conditions for The New India Assurance’s Senior Citizen Mediclaim Policy

      Entry age60 year to 80 years (policy can be continued up to 90 years if renewed without break)
      RenewabilityUp to 90 years
      Sum insuredINR 1 lakh to INR 1.5 lakhs
      Waiting period for a pre-existing illness18 months
      Pre-acceptance health check-upRequired
      Co-paymentNo co-payment clause applicable

    Scope of Coverage in The New India Assurance’s Senior Citizen Mediclaim Policy

    Following are the major coverages offered under the Senior Citizen Mediclaim Policy:

    1. Inpatient hospitalisation expenses:

      The expenses incurred for hospitalisation of more than 24 hours such as room, boarding expenses, nursing charges, ICU charges, surgeon, anaesthetist, specialist fees, medical practitioner, consultants fee, anaesthesia, oxygen, blood, surgical appliances, drugs, diagnostic materials, chemotherapy and radiotherapy etc.

    1. Pre and post hospitalisation charges:

      Medical expenses incurred for 30 days prior to and post 60 days of hospitalisation are covered. Limits are subjected to policy terms and conditions.

    1. Ambulance charges:

      Expenses incurred for an ambulance is covered up to a maximum of INR 1,000.

    1. Organ donor expenses:

      Hospitalisation expenses incurred on organ donor is covered.

    1. AYUSH Benefits:

      Expenses incurred for Ayurvedic, Homeopathic, Unani and Siddha treatments are covered up to a certain limit based on policy’s terms and conditions.

    Exclusions under The New India Assurance’s Senior Citizen Mediclaim Policy

    Following are the exclusions under the policy:

    • Illnesses or diseases contracted within 30 days of policy commencement
    • Sexually transmitted diseases such as HIV/AIDS
    • Cosmetic treatments
    • Dental treatments unless it is needed due to an accidental injury
    • Debility and general run-down conditions
    • Pregnancy and childbirth
    • Vaccination and inoculation
    • War and nuclear perils
  1. Oriental Insurance’s Health of Privileged Elders (HOPE)

    Oriental Insurance Company’s Health of Privileged Elders (HOPE) is a health insurance plan that is specially crafted for senior citizens that is for people aged 60 years and above. The policy comes with many attractive features.

    Features of Oriental Insurance’s Health of Privileged Elders (HOPE)

    1. The policy is designed to cover specified diseases only
    2. No claim bonus is offered for claim-free years
    3. Discount on the premium is offered for opting for voluntary deduction
    4. The benefit of continuity is offered for existing mediclaim policyholders. New entrants will be charged an extra premium
    5. Cashless facility is available through TPA only and is limited to INR 1 lakh
    6. Free health check-up in a block of every four claim-free years

      Eligibility Criteria for Oriental Insurance’s Health of Privileged Elders (HOPE)

      Entry age60 years and above
      RenewabilityLife long
      Sum insuredINR 1 lakh/2lakhs/3 lakhs/4 lakhs/5 lakhs
      Waiting period for a pre-existing illness24 months
      Pre-acceptance health check-upRequired
      Co-payment20% compulsory co-payment

    Scope of Coverage in Oriental Insurance’s Health of Privileged Elders (HOPE)

    Following are the coverages offered in the policy:

    1. Hospitalisation expenses:

      Hospitalisation for more than 24 hours is covered. Expenses incurred for in-patient care such as room rent, ICU charges, specialist fees, medical practitioner, consultants fee, surgeon, anaesthetist, anaesthesia, oxygen, blood, surgical appliances, drugs, diagnostic materials, chemotherapy and radiotherapy etc are covered.

    1. Domiciliary hospitalisation benefit:

      Expenses incurred for domiciliary hospitalisation for a period exceeding three days for specified disease/illness/injury are covered. However, certain illnesses/procedures are excluded from coverage as per the terms and conditions of the policy.

    1. Pre and post hospitalisation charges:

      Medical expenses incurred for 30 days prior to and post 60 days of hospitalisation are covered. Limits are subjected to policy terms and conditions.

    1. AYUSH Benefits:

      Expenses incurred for Ayurvedic, Homeopathic, Unani and Siddha treatments are covered up to a certain limit based on policy’s terms and conditions.

    2. Exclusions under Oriental Insurance’s Health of Privileged Elders (HOPE)

    Following are the exclusions under the policy:

    • External congenital illnesses/conditions
    • Treatments availed outside India
    • Organ donor expenses
    • Sexually transmitted diseases, HIV/AIDS
    • Self-inflicted injuries
    • Hospital admission for diagnostic purposes
    • Hearing impairment and cosmetic treatment expenses
    • Breach of the law, war and related perils
    • Dental treatment unless initiated by accidents

  1. National Insurance Varistha Mediclaim Policy

    One of the oldest and government-backed insurance companies, National Insurance Company has designed a special health insurance policy for senior citizens called Varistha Mediclaim Policy. The plan aims to safeguard senior citizens financially against any health contingencies. The policy comes loaded with lots of attractive features.

    Features of National Insurance Varistha Mediclaim Policy

    Following are the features of National Insurance Varistha Mediclaim Policy:

    1. The policy rewards you with free health check-ups and cumulative bonus for claim-free years
    2. Both cashless (at network hospital) and reimbursement (at non-network hospitals) facility are offered under the policy
    3. Pre-existing illnesses like hypertension and diabetes are covered from the beginning of the policy.
    4. Coverage can be availed for paralysis and blindness at an additional cost of the premium.
    5. 10% premium discount can be availed by opting for voluntary co-payment.
    6. The policy can be availed online
    7. Coverage can be availed for critical illness also

      Eligibility Criteria for National Insurance Varistha Mediclaim Policy

      Entry age60 years to 80 years
      RenewabilityLife long
      Sum insuredINR 1 lakh and INR 2 lakhs
      Waiting period for a pre-existing illness12 months
      Pre-acceptance health check-upNot required if the insured is covered by any
      health insurance plan for the last three years
      Co-payment10% compulsory co-payment

    Scope of Coverage for National Insurance Varistha Mediclaim Policy

    Following are the coverages offered under National Insurance Varistha Mediclaim Policy:

    1. Hospitalisation benefits:

      Expenses incurred for hospitalisation such as room charges, ICU charges, nursing expenses, blood transfusion charges, surgeon, and medical practitioner, specialist fees, consultants, anaesthesia, oxygen, blood, surgical appliances, OT charges, drugs, medicines, x-ray, chemotherapy, artificial limbs etc are covered. Minimum of 24 hours of hospitalisation is needed.

    1. Pre and post hospitalisation charges:

      Medical expenses incurred for 30 days prior to and post 60 days of hospitalisation are covered. Limits are subjected to policy terms and conditions.

    1. Domiciliary hospitalisation benefit:

      Expenses incurred for domiciliary hospitalisation for a period exceeding three days for specified disease/illness/injury are covered. However, certain illnesses/procedures are excluded from coverage as per the terms and conditions of the policy.

    1. Ambulance charges:

      Expenses incurred for an ambulance is covered up to a maximum of INR 1,000.

    1. Critical illness cover:

      The policy covers critical illnesses like coronary artery surgery, cancer, multiple sclerosis, renal failure, major organ transplants and stroke

    1. Optional cover:

      Coverage for blindness and paralysis can be availed with an extra amount of premium.

    Exclusions under National Insurance Varistha Mediclaim Policy

    Following are the exclusions under the policy:

    • Treatment expenses for any disease/injury/illness during the first 30 days of policy commencement are not covered
    • Specific illnesses like cataract, benign prostatic hypertrophy, hernia, septum and related disorders, congenital internal disease, hysterectomy and piles are not covered during the first year of the policy
    • Vaccination and inoculation
    • Cosmetic surgery and treatment
    • Self-inflicting injuries
    • Pregnancy and childbirth
    • HIV/AIDS
    • Treatments availed outside India
  1. United India Senior Citizens Health Insurance

    United India Senior Citizen Health Insurance is an exclusive insurance product that aims to address the specific healthcare needs of elderly individuals in India. The policy is loaded with many good features.

    Features of United India Senior Citizens Health Insurance

    Following are the features of the policy:

    1. The policy covers major surgeries along with other hospitalisation expenses
    2. Children between 3 months to 18 years may be covered provided either or both parents are covered concurrently.
    3. The policy provides cover for daycare procedures
    4. Cashless facility is provided under the plan which can be accessed in 7000+ network hospitals across India
    5. Family discount of 5% is offered if one or more family members are insured.
    6. Free health check-up once in a block of three claim-free years
    7. Income tax benefit can be availed under Section 80D of the IT Act.

      Eligibility Criteria for United India Senior Citizens Health Insurance

      Entry age61 years to 80 years
      RenewabilityLife long
      Sum insuredINR 1 lakh and INR 3 lakhs
      Waiting period for a pre-existing illness48 months
      Pre-acceptance health check-upRequired
      Co-payment20% co-payment is applicable

    Scope of Coverage in United India Senior Citizens Health Insurance

    Following are the coverages offered in the policy:

    1. Hospitalisation expenses:

      In-patient care expenses that include room rent, nursing expenses, ICU charges, blood transfusion charges, surgeon, and medical practitioner, specialist fees, oxygen, blood, surgical appliances, consultants, anaesthesia, OT charges, drugs, medicines, x-ray, chemotherapy, artificial limbs etc covered under the policy. However, coverage limits are as per the terms and conditions of the policy.

    1. Domiciliary hospitalisation benefit:

      Expenses incurred for domiciliary hospitalisation for a period exceeding three days for specified disease/illness/injury are covered. However, certain illnesses/procedures are excluded from coverage as per the terms and conditions of the policy.

    1. Pre and post hospitalisation charges:

      Medical expenses incurred for 30 days prior to and post 60 days of hospitalisation are covered. Limits are subjected to policy terms and conditions.

    1. AYUSH treatments:

      Treatment expenses for Ayurveda/Yoga/Unani/Siddha/ Homeopathy availed in recognised Institutes by Government are covered.

    1. Daycare procedures:

      Certain specified day care procedures that require less than 24 hours of hospitalisation are covered.

    Exclusions under United India Senior Citizens Health Insurance

    Following are the exclusions under the policy:

    • Diseases/illness/injuries diagnosed in first 30 days of policy commencement
    • HIV/AIDS
    • Self-inflicted injuries, alcohol and drug abuse
    • Vaccination and inoculation
    • Pregnancy and childbirth
    • Psychiatric and psychosomatic disorders
    • General debility and run-down conditions
    • Naturopathy
    • Unproven experimental treatments
    • Hospital admission for diagnostic purposes
    • Cosmetic treatment expenses
    • Breach of the law, war and related perils
    • Nuclear perils
    • Dental treatment unless initiated by accidents
  1. National Health Protection Scheme – Ayushman Bharat

    Honourable Prime Minister Narendra Modi has announced the world’s largest government-funded healthcare plan for Indian citizens. The scheme Ayushman Bharat or National Health Protection Scheme was launched in the year 2018 aiming to cover both preventive and promotive healthcare needs in primary, secondary and tertiary care systems. 26 states and union territories have accepted the scheme and lakhs of people have already taken benefit under the scheme. Based on the deprivation charts under the SECC (Socio-Economic Caste Census) statistics, the scheme is set to target both urban and rural poor. Rural poor are selected based on the standard of life data, urban poor is selected based on occupational categories. Following are the highlights of the scheme:

    1. Ayushman Bharat Yojana is set to provide yearly coverage of up to INR 5 lakhs to over 10 crore poor and vulnerable families. Ayushman Bharat plan also covers senior citizens. It is one among government health insurance for senior citizens covering the healthcare needs of all age groups.
    2. Scheme benefits are portable across the country with the cashless facility available from any government and private hospitals across the country.
    3. INR 1,200 crores are allocated for 1, 50,000 health and wellness centres to provide comprehensive health care services which include pregnancy care and maternal health services, child health, infant health services, dental care, non-communicable diseases, mental illness management, chronic communicable diseases and geriatric care emergency medicine.

*Conditions Apply

#7 Key Points to Remember while Buying the Health Schemes for Senior Citizens

Following are the important factors to be considered and points to remember while comparing and choosing health insurance plans for senior citizens:

  1. Age

    Entry age and maximum age for renewability is an important consideration. Go for plans with lifelong renewability.

  1. Hospital network:

    To reap the maximum benefits out of your insurance policy, it’s important to make use of the features at the right time. To avail cashless benefits anytime during the policy period, it’s important to choose the plan with wider hospital networks.

  1. Sum insured:

    Having adequate coverage is all the more important when you are buying health insurance. Hence, consider buying plans that can offer you the required amount of coverage.

  1. Waiting period:

    Specifically for senior citizens, lesser the waiting period better is the policy as they are prone to age-related illness.

  1. Fine print:

    It’s important to read through the fine prints, understand the scope of coverage and exclusions under the policy clearly to avoid ambiguity later.

  1. Specific illness cover:

    Depending on the individual requirement policies can be compared on the basis of specific illnesses covered.

  1. Cost:

    Usually, senior citizen plans can get expensive if you are seeking comprehensive coverage. Hence, always compare plans on a cost-benefit basis and make a need-based choice!

Documents required to buy Senior Citizen Health Insurance Plan

Following are the documents required for buying senior citizen health insurance plan:

  1. Age proof – Birth certificate/Passport/SSLC mark sheet/Voter ID etc.
  2. Identity proof –Aadhaar card/ driving license/voter’s ID/ PAN card / passport, etc
  3. Proof of address – Driving license /latest electricity bill/passport / telephone bill etc.
  4. Photographs
  5. Pre-acceptance medical report

Frequently Asked Questions (FAQs)

  1. What does domiciliary hospitalisation mean? What are the exclusions applicable under this coverage?

    Domiciliary hospitalisation treatment refers to treatment taken at home which would otherwise require hospitalisation. The reason for such arrangements could be the patient’s condition which makes him unable to move to a hospital or due to unavailability of beds in hospitals.

    Following are the treatments/illnesses that are excluded under domiciliary hospitalisation cover –

    • Asthma
    • Bronchitis
    • Pyrexia of unknown origin for less than 10 days
    • Diarrhoea and all types of dysenteries including gastroenteritis
    • Chronic Nephritis and Chronic Nephritic syndrome
    • Diabetes mellitus and Insipidus
    • Influenza, cough and cold
    • Epilepsy
    • Hypertension
    • Arthritis, Gout and Rheumatism
    • All psychiatric and psychosomatic disorders
    • Tonsillitis, Upper respiratory tract infection including laryngitis and Pharyngitis
  1. What are the tax benefits offered by senior citizen health insurance plans?

    The senior citizen’s health plan also allows you to cover family. Premiums paid for self, spouse, children and elderly parents can be availed tax deduction under Section 80D of the IT act. Here are the details:

    DescriptionThe maximum premium for self, spouse and dependent childrenThe maximum premium for parentsTotal deductions available under Section 80D of the IT Act
    All members of the family < 60 years of ageINR 25,000INR 25,000INR 50,000
    Self, spouse and children < 60 years age and either of the parents > 60 years ageINR 25,000INR 50,000INR 75,000
    Self > 60 years age Spouse and children < 60 years of age and both parents > 60 years ageINR 50,000INR 50,000INR 1,00,000
    1. What is a ‘free-look period’?

      Free-look period is the initial period (usually 10 to 30 days) that allows the policyholder to go through the policy terms and conditions again and decide whether to continue with the policy or not. If an insured is not satisfied with the terms and conditions of the policy, then the policy can be cancelled within the free look period by stating the reason for cancellation.

    1. What is co-payment?

      Co-payment is a clause included in health insurance plans that state about cost-sharing between the insurer and insured. It is generally expressed in percentage terms. In health insurance policies, a co-payment clause can be applied based on age or treatment or on certain illnesses. The percentage of the admissible claim as stated in the policy needs to be paid by the insured out of his pocket before the insurer pays his part.

Know all about Pradhan Mantri Vaya Vandana Yojana

Sidharth Hampanavar

There are different types of specialised investment avenues designed for senior citizens. These avenues provide better returns and also give tax benefits to senior citizens. One such senior citizen investment scheme is the Pradhan Mantri Vaya Vandana Yojana which has been launched by the Indian Government. Let’s understand what the scheme is all about and what it offers –

What is Pradhan Mantri Vaya Vandana Yojana?

Pradhan Mantri Vaya Vandana Yojana, also called PMVVY in short, is a senior citizen pension scheme. The scheme was launched in the year 2014 and it is a pilot scheme which is available for a limited time. Interested individuals aged 60 years and above can invest in Pradhan Mantri Vaya Vandana Yojana from 4th May 2017 to 31st March 2020.

Under the scheme, senior citizens can make a lump sum investment and then receive pension income. Pension is paid for ten years which is also the term of the plan.

Features of Pradhan Mantri Vaya Vandana Yojana

The senior citizen pension scheme called PMVVY has the following salient features –

  • The scheme is sold only by the Life Insurance Corporation of India (LIC)
  • If you are aged 60 years and above you can buy the scheme
  • You have to pay a lump sum amount to buy scheme. This amount is called the purchase price
  • The duration of the scheme is 10 years and you get pensions during these 10 years
  • Pensions can be received annually, half-yearly, quarterly or monthly as per your choice
  • The return under the scheme is guaranteed and it is 8% per annum payable monthly. This equals an effective interest rate of 8.30% annually
  • Pension is paid by direct transfer to your bank account through NEFT or through Aadhar Card linked payment system called AEPS
  • No GST is applicable to the investments did into the senior citizen pension scheme

Eligibility criteria for PMVVY

The following eligibility criteria would have to be fulfilled for investing in this senior citizen pension scheme –

  • You should be aged 60 years and above. However, there is no maximum age limit. You can invest at any age provided you are a senior citizen
  • The amount of pension is guaranteed and the minimum and maximum limit depends on the pension payment mode. They are as follows –
    • Pension payment modeMinimum pensionMaximum pension
    MonthlyINR 1000INR 10,000
    QuarterlyINR 3000INR 30,000
    Half-yearlyINR 6000INR 60,000
    AnnuallyINR 12,000INR 120,000
  • The minimum and maximum investment amount depending on the pension payment mode that you select. The amounts are as follows –
    • Pension payment modeMinimum investment requiredMaximum investment allowed
    MonthlyINR 150,000INR 15,00,000
    QuarterlyINR 149,068INR 14,90,684
    Half-yearlyINR 147,601INR 14,76,014
    AnnuallyINR 144,578INR 14,45,784
  • The maximum investment amount per family is limited to INR 15 lakhs
  • The maximum monthly pension receivable would be applicable for the family as a whole consisting of self, spouse and dependents. This means that if multiple family members have invested in the Pradhan Mantri Vaya Vandana Yojana, the aggregate pensions received by all should not exceed the maximum pension amount specified above

Important aspects of Pradhan Mantri Vaya Vandana Yojana

The senior citizen pension scheme of PMVVY has the following aspects which you should keep in mind –

  1. Loans

    You can avail a loan under the senior citizen pension scheme. The loan is available after the completion of three policy years and the amount of loan would be limited to up to 75% of the purchase price that you paid to invest in the scheme. If you avail a loan, an interest would also be payable for the same. This interest would be deducted from the pension amount payable to you. Moreover, if you do not repay the loan, the outstanding balance of the loan would be deducted from the death or maturity benefit.

  1. Maturity Benefit

    Pension payments are paid for ten full years and when the plan matures the last instalment of pension is paid along with the purchase price on maturity.

  1. Death Benefit

    In case of death of the pensioner, the purchase price would be refunded back to the nominee irrespective of the pension payments done under the senior citizen pension scheme.

  1. Maturity Benefit

    You can surrender the investment before the completion of 10 years. This surrender is allowed only if you or your spouse faces a critical or terminal illness. On surrendering you would get 98% of the purchase price refunded.

  1. Free-look cancellation

    If, after investment into the Pradhan Mantri Vaya Vandana Yojana, you are not satisfied, you can return the policy and claim a refund of your investment. LIC allows you a free-look period of 15 days which increases to 30 days if you have bought the policy online. During this free look period, you can cancel your investment and get a refund of the purchase price paid. If the policy is cancelled, the purchase price is refunded after deducting the stamp duty paid by the company on issuing the policy and any pension instalment that you might have received before cancellation.

Benefits of Pradhan Mantri Vaya Vandana Yojana

By investing in the senior citizen pension scheme called PMVVY, you get the following benefits –

  1. Regular pension incomes are promised for 10 years. Therefore, give you a source of income
  2. Since pension amount is guaranteed, you know beforehand the benefit that you would get from the senior citizen pension scheme
  3. Assured refund of your purchase price both in case of death and maturity
  4. A good rate of return which is 8.30% annually and which is higher than the returns promised by fixed deposits and other fixed-income instruments
  5. Loans allow your funds to meet emergency financial expenses that might arise at any time
  6. The rate of return is guaranteed under the scheme. If the scheme earns a lower return than promised, the shortfall is borne by the Central Government and so you are ensured of a return of 8% payable monthly
  7. Even in the case of suicides, the full purchase price is refunded. There is no exclusion for suicides

How to invest in Pradhan Mantri Vaya Vandana Yojana?

If you want to invest in the senior citizen pension scheme of PMVVY, you can do so through LIC. LIC offers you the option of buying Pradhan Mantri Vaya Vandana Yojana online as well as offline. Here are both the processes through which you can apply –

Offline process of buying PMVVY:

To buy the PMVVY policy offline, here are the steps which you need to take –

  1. Visit the nearest branch of LIC or meet with a LIC agent to get the application form
  2. Fill up the application form completely
  3. Attach the relevant documents with the form
  4. Submit the form and the documents at the LIC branch or to the LIC agent who would, in turn, deposit your application at the LIC branch
  5. LIC would, then, check the form and the documents submitted, verify your details and the policy would be issued

Online process of buying PMVVY:

To buy the senior citizen pension scheme online, the steps are as follows –

  1. Visit LIC’s official website which is https://www.licindia.in/
  2. On the home page, you can see an option to buy online policies. Choose ‘Click Here to Buy’
  3. You would be taken to a new page wherein you should choose ‘Pradhan Mantri Vaya Vandana Yojana’
  4. On the next page, the details of the plan would be shown. Click ‘Buy Online’
  5. An online application form would open. Fill up the form stating the required details
  6. You would also have to attach your documents and submit the form
  7. Once the form is submitted, it would be verified by LIC and if found satisfactory, the policy would be issued

Documents required for buying PMVVY:

To buy PMVVY, the following documents would have to be submitted –

  1. Your Aadhar Card
  2. Age proof
  3. Passport size photographs
  4. Address proof
  5. Documents which show that you are retired

So, if you are a retired senior citizen and are looking for a senior citizen pension scheme which gives you guaranteed returns you can opt for Pradhan Mantri Vaya Vandana Yojana and get assured pensions for ten years. The scheme also promises a lump sum benefit on death or maturity allowing you to create a legacy with your retirement funds. So, invest in PMVVY and create a source of guaranteed income even after retirement.

Frequently Asked Questions:

  1. What are the tax implications of investing in PMVVY?

    The investment that you do in the Pradhan Mantri Vaya Vandana Yojana is taxable in your hands. Moreover, the pension that you receive is also considered an income and are taxed in your hands at your income tax slab rates.

  1. I have invested INR 10 lakhs in the PMVVY scheme. Now my wife is also looking to invest. What is the maximum amount that she can invest?

    Since the maximum investment in PMVVY is INR 15 lakhs in aggregate for a family, your wife can invest a maximum of INR 5 lakhs.

  1. What is the interest rate on policy loan availed under Pradhan Mantri Vaya Vandana Yojana?

    The rate of interest depends on LIC and is not fixed. However, the current rate of interest on loans which have been sanctioned till 30th April 2018 is 10% per annum.

  1. Does any other insurance company offer PMVVY?

    No, only LIC is authorised to sell PMVVY scheme.

Does your Health Insurance in India cover Coronavirus?

Sidharth Hampanavar

The world is reeling under the widespread incidence of Coronavirus which, though has its origin in China, has spread world over. The disease is on the brink of being labelled as a pandemic as it has spread to many countries across the globe. What is causing panic among individuals is the fatal nature of the virus. More than 96,000 cases of Coronavirus have been reported as of 5th March 2020 and the recorded number of deaths so far has been more than 3300 (Source: Worldometers.info).

What is coronavirus?

Coronavirus is a type of virus which causes flu like illness in humans. It is named as such because of its shape which is round with crown-like protrusions around the circle. The symptoms range from cough, cold, fever and other symptoms which are like flu and so, diagnosis becomes a challenge.

What started out as a viral infection in China has now spread to Europe, Middle-East Asia, South America and even India. Though the cases in India are low, given the contagious nature of the virus, the spread can be quick and the numbers might increase manifold. You should, therefore, take extreme precautionary measures to ensure that you and your family members are not exposed to the virus. Here are a few do’s and don’ts to keep in mind –

Do’s 

  • Invest in masks and wear them at all places, even at your own home. Masks are the first step to take so that the virus does not enter in your blood stream through breathing
  • Wash your hands multiple times using soap or a hand wash. Washing would ensure that any germs sticking to your hand would be washed off.
  • Use an alcohol-based hand sanitizer every time you eat or drink. The sanitizer would kill the virus if it is present on your hands and keep you safe.
  • Maintain a distance of at least three feet with a person who is sneezing or who is suffering from flu-like symptoms
  • If you have cough or cold, always keep a paper tissue handy. Sneeze or cough by placing the tissue on your mouth and then dispose-off the tissue immediately
  •  If you have any type of flu-like symptoms like fever, cold, cough, etc., immediately get checked. You might or might not test positive for coronavirus but early detection helps in preventing the spread of the disease among others.

Don’ts

  • Do not eat outside food especially in places where proper hygiene is not maintained.
  • Do not attend large social gatherings as infected individuals present at such gatherings pose a threat to infect others
  • Do not touch your eyes, nose or mouth frequently. Even when you touch, wash your hands thoroughly with soap and then do so
  • Do not spit in public places
  • Do not make travel plans as many countries have been infected with the virus.

How health insurance can help?

Suspected coronavirus cases are quarantined for 12-14 days to incubate the virus. After incubation it can be found whether individuals have the virus or not. If an individual test positive it usually results in hospitalisation wherein the individual is kept isolated and then treated. This hospitalisation can be of a considerable period and incurs substantial expenses.

A regular health insurance plan can come to your rescue in such cases. In case you are hospitalized for Coronavirus, your regular Health Insurance Plan would pay for the expenses and the treatment for the same. The plan would pay for the inpatient hospitalisation costs incurred when you test positive and are hospitalised for care and treatment. It would pay for the following costs which are incurred on an inpatient basis –

  • Doctor’s Consultation fees
  • Room rent
  • ICU room rent if you are admitted to the ICU
  • Daily cash allowance
  • Pre-Hospitalization and Post-Hospitalization benefits

However, recently Coronavirus has been declared a pandemic by the World Health Organisation (WHO). Given the current status of the illness, coverage allowed by health insurance plans has come under a shadow. Some health insurance policies are offering coverage for the above-mentioned medical costs given that the incidence rate of the illness in India is low. However, other health insurance companies are exercising caution. Given the pandemic nature of the disease, coverage is being restricted. So, you should find out from your health insurance company whether or not your plan would cover Coronavirus claims or not.

A specialized health plan for Coronavirus

Though regular health insurance plans take care of the inpatient costs, Go Digit General Insurance Company has launched a specialized health insurance plan for fighting the financial implication of coronavirus. The plan is a fixed benefit health insurance plan which pays the full sum insured in lump sum if you are diagnosed positive for coronavirus. Moreover, even if you are quarantined before testing for the virus, 50% of the sum insured is paid in lump sum to help you meet the associated financial costs of such quarantine even if you are later tested negative. The sum insured ranges from INR 25,000 to INR 2 lakhs and the premium per person is very low at INR 299. The plan, therefore, helps you battle the financial crisis suffered in case of a coronavirus attack. You can check the details of the plan from the Turtlemint website.

Coronavirus is spreading havoc worldwide and necessitating the need to take preventive measures to stay protected. While you can practice proper hygiene and care to avoid contracting the virus, having a health insurance plan for contingencies is also a wise choice. So, invest in a health plan for emergencies and stay protected.

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

Sidharth Hampanavar

The crime rate is increasing and getting your house or your office burgled leads to enormous loss. After the money that you spend in acquiring the assets for your home or your business, if the assets are stolen, you face a considerable financial loss. In fact, after a burglary, you might find it difficult to replace the items that you lost to theft. To cover the financial loss suffered due to burglary and theft, burglary insurance policies are available in the market. Let’s explore what a burglary insurance policy entails –

What is burglary insurance?

Burglary insurance is an insurance policy which covers the financial loss that you suffer in case of a burglary or attempted burglary into your home or business premises. Burglary is defined as an act of forceful entry into the house or business premises with an illegal intention of theft.

Features of burglary insurance

Burglary insurance policies have the following salient features –

  • They can be bought by homeowners, tenants as well as business organisations to cover the financial loss suffered due to burglary
  • A burglary insurance policy can also cover theft and robbery. That is why the plans are also called burglary and theft insurance plans
  • There are different types of burglary insurance plans available in the market
  • You can avail different types of burglary insurance policies for covering different types of assets which are exposed to the risk of theft
  • A standard burglary insurance policy can be extended to cover losses suffered due to burglaries committed during riots, strikes, fire, etc.

What is covered under burglary insurance?

Burglary insurance covers the following losses which you might face in case of a burglary or attempted burglary –

  • Damage to the home or business premises due to forceful and unlawful entry
  • Loss of assets or property due to theft and burglary

Coverage under burglary insurance policies can be taken for the following types of assets –

  • Cash and valuables
  • Home appliances
  • Electronic gadgets
  • Money in transit
  • Cash stored in safe
  • Stock in trade
  • Business assets
  • Plants and equipment used in the factory or business premises
  • Jewellery, etc.

What is not covered under burglary insurance?

Burglary insurance policies have the below-mentioned exclusions in which case the claims are not paid –

  • Loss or damage which occurs due to war, strikes, riots, etc. unless otherwise specified
  • Losses due to natural calamities
  • Losses suffered when the property is under renovation
  • Losses due to nuclear threats or contamination
  • Loss of property because it was confiscated by the Government
  • Consequential losses
  • If the family members are involved in the burglary, claims would not be covered
  • Precious metals and cash might be excluded unless specifically covered under the plan
  • Theft or burglary of share certificates, promissory bonds, treasury bills, etc. are not covered
  • Theft by employees or housemaids are not covered
  • Burglary or theft when the premises were left unattended or when the premise was not completely locked
  • Fraudulent claims are not covered
  • Theft using a duplicate key is not covered unless the key was acquired forcefully
  • Burglary, when proper security was not maintained, would not be covered

Types of burglary insurance policies

Burglary insurance policies can be of different types based on the type of coverage as well as the assets that they cover. Here are some of the commonly found burglary insurance policies in India –

  1. Stock Declaration Policy

    This policy is for businesses which cannot estimate the exact value of their stock in trade. In such cases, the highest possible value of the stock is taken to be the sum insured so that the losses can be sufficiently covered.

  1. First Loss Policy

    Under this policy, a portion of the stock is insured which is likely to be burgled. This type of policy is relevant when the total loss cannot be plausibly estimated.

  1. Full Value Policy

    This policy covers the asset for its full value so that in case of loss the full value can be claimed.

  1. Money in Transit Insurance

    This policy covers the risk of theft or burglary on an amount of money which is in transit. The policy is relevant for businesses where the movement of physical cash is involved.

  1. Business Premises Insurance

    This policy covers the risk of burglary and theft in the place of business.

  1. Dwelling Insurance

    Under this policy, your residential house is covered against burglary and theft.

  1. Jewellery and Valuable Policy

    This policy specifically covers precious jewellery, valuable, works of art and other valuables against burglary.

  1. Cash in Safe Policy

    This burglary insurance policy covers the risk of theft of the cash which is kept in a safe at the house or at the business premises.

Burglary v/s robbery v/s theft

While the terms ‘burglary’, ‘robbery’ and ‘theft’ are used interchangeably, their meanings are quite different from one another. Here’s how –

  1. Burglary is when there is an unlawful and forceful entry into your premises. You might or might not be present on the premises when the burglary occurs
  1. Robbery is an unlawful and forceful entry into your premises when you are present on the premises. Your presence is important for the act to be considered a robbery in the eyes of the law
  1. Theft involves non-violent and forceful entry into the premises

Some insurance policies can cover the only burglary while others can also cover theft and/or robbery. So, you should know how these terms differ from one another and check whether the policy allows coverage for all three terms or for some of them.

Premiums of burglary insurance policies

The premiums of burglary insurance plans depend on the asset covered, its value and the expected risks. You can, however, reduce the premiums through the following ways –

  • By installing safety devices in your house or business premises which would alert you to any unlawful activity
  • By installing CCTV cameras which would help in preventing or lowering the risk of burglary
  • By fencing the premises which are being insured
  • By installing security alarms which would lower the extent of loss, etc.

Things to remember when buying burglary insurance

You can buy a burglary insurance policy online by making an online application to the insurance company which is offering the cover. Before buying the policy, however, the following should be kept in mind –

  1. Ensure that all possible assets which face a risk of theft are covered under the burglary insurance policy
  1. Compare the available policies before buying
  1. Check whether the policy covers only burglary, theft or both
  1. The sum insured should be sufficient enough to cover the loss that you suffer. If the sum insured is inadequate, the claim would be settled on a proportionate basis even if the loss is covered under the sum insured. For instance, if the value of an asset is INR 1 lakh but you insure it for INR 80,000, if there is a loss of INR 50,000, the claim would be paid for INR 40,000
  1. The premium of burglary insurance policy can be reduced. Use the available ways to reduce the premium so that the policy becomes affordable

Making a claim under burglary insurance

If a burglary happens and you face a claim, here are the steps which you should take to raise the claim and get it settled –

  1. Inform the insurance company immediately of the burglary
  1. Take pictures of the loss which you have suffered. These pictures would serve as proof to help the insurance company estimate the extent of loss
  1. Record all the losses which you have suffered so that they can be mentioned on the claim form
  1. The receipts of repairs and replacement of the burgled items should be kept securely
  1. Record everything that happens after the burglary has occurred so that you give documentary evidence to the insurance company if required

A burglary insurance policy proves to be a valuable addition to your insurance portfolio as the policy compensates you for the financial loss that you suffer in case of burglaries. So, insure your home or your office under a burglary insurance policy and be financially secured against unlawful activities.

Frequently Asked Questions

  1. What is the meaning of policy extensions?

    Policy extensions are additional coverage options which you can choose by paying an additional premium. These extensions increase the scope of coverage of the policy.

  1. Does burglary insurance offer any policy extensions?

    Yes, burglary insurance plans offer policy extensions which allow you coverage against losses that you face due to riots, strikes, rebellion, etc.

  1. I was on holiday for 10 days and my house was burgled. Would the burglary insurance policy cover this loss?

    No, burglaries occurring when the house is left unattended for more than 7 days are not covered.

All you need to know about motor insurance premium calculator

Sidharth Hampanavar

Motor insurance policies are mandatory in India. If you own a car or a bike, you have to buy a valid motor insurance cover on the vehicle so that you can drive your car or bike without facing legal consequences. Since the policy is mandatory, you have to invest in a motor insurance plan for your vehicle. 

There are two types of policies for your vehicle. One is the third party liability which covers any liability that you face if your vehicle damages third party property or harms someone physically. The other is the comprehensive package policy which covers both third party legal liability as well as the damages suffered by your vehicle itself. You can buy any suitable policy as per your coverage requirements but do you know the premiums are calculated?

Factors affecting motor insurance premiums

Premiums for a motor insurance policy depends on a lot of factors. These factors are mentioned below:

  • Type of policy that you buy

    The premiums for motor insurance policies depend on the type of policy that you choose. Third-party plans have lower premiums which depend on the cubic capacity of your vehicle’s engine. Comprehensive plans, on the other hand, have higher premiums because the scope of their coverage is wider.

  • Age of the vehicle 

    The premium for newer vehicles is higher compared to older vehicles. This is because as the vehicle ages, its value decreases. Since the value is reduced, the premiums are low.

  • Registration location 

    The place where your vehicle is registered also has a direct bearing on the motor insurance premium. In metropolitan cities, the probability of accidents is higher and so premiums in such places are higher.

  • Make, model and variant (MMV)

    The make, model and variant of the vehicle directly affect its premium. It is because the MMV determines the value of the vehicle. If the vehicle has a higher value the premiums would be higher and vice-versa.

  • Term selected

    Nowadays, vehicle insurance policies are also available for longer tenures which provide coverage for up to 5 years. If you choose a long term plan, you would have to pay the aggregate premium upfront. So, long term plans prove costlier than annual ones.

  • Add-ons 

    Comprehensive vehicle insurance plans allow optional coverage benefits called add-ons. You can choose any add-on that you want to increase the scope of your motor insurance cover. However, each add-on has an additional premium attached to it. So, if you choose add-ons, the premiums would increase.

  • Fuel variant

    Petrol vehicles are cheaper than diesel ones. That is why premiums for petrol vehicles are lower than those for diesel vehicles.

  • Modifications

    If you do modifications on your vehicle such that the value of the vehicle increases, such modifications impact the premium rate. Since the value has increased, the premiums are also increased. However, if you modify your vehicle to suit the usage of a disabled rider, you would be allowed a premium discount and your premiums would reduce.

  • Premium discounts

    Motor insurance policies have a range of premium discounts which help in lowering your premiums. If you can claim the available discounts, your premiums would reduce. Commonly available discounts in motor insurance plans are as follows –

    • Discount for installing safety gadgets in the vehicle 
    • Discount for having the membership of a recognized automobile association 
    • Discount if you have not made a claim in the last policy years (called no claim bonus discount)
    • Discount if you choose a voluntary deductible and opt to pay a part of the claim yourself
    • Discount for buying long term policies, etc.
  • Status of an existing policy

    If you are renewing an existing motor insurance plan, its status would affect the renewal premium. If the existing policy has lapsed, the renewal premiums would be high. If, however, your existing policy is still in force, the renewal premium would not be increased.

Now you know the factors which determine the premium that you would be charged for your motor insurance policy. How about calculating the premium before buying or renewing the policy?

Motor insurance calculator

There are online motor insurance calculators which help you calculate the exact premium of your policy. These motor premium calculators calculate the premium based on the vehicle details that you enter. Using these calculators you can get an idea of the premium that you would have to pay for your motor insurance policy.

Where to find motor insurance premium calculator?

Motor insurance calculators are online tools and they are found on the website of the insurance company. Moreover, you can also visit the websites of online insurance brokers, like Turtlemint, which allow you to calculate the premiums of multiple motor insurance policies at once. By using Turtlemint’s motor insurance calculator you can calculate and also compare the motor insurance premium of leading companies. You can then choose a company which offers the best coverage benefits at the lowest premium rates and buy or renew your motor insurance plan.

How do motor insurance calculators work?

Motor insurance calculators work on the details that you enter into the calculator. You would have to provide the details of your vehicle based on which the premiums would be calculated. These details include the following:

  1. Registration number of the vehicle
  2. Make, model and variant
  3. Registration year
  4. Manufacturing year
  5. Place of registration
  6. Fuel type
  7. History of claims in an existing policy so that the no claim bonus can be determined
  8. Whether the existing policy has lapsed or not
  9. Type of policy that you want
  10. Add-ons selected if any

Once all the details are entered, the premium would be calculated and displayed. 

How to use Turtlemint’s motor insurance calculator?

As mentioned earlier, Turtlemint’s motor insurance calculator helps you compare different motor insurance policies before buying. This allows you to choose the best plan at the lowest premium rates. To use Turtlemint’s motor insurance calculator, here are the steps –

  1. Visit the homepage of Turtlemint at www.turtlemint.com and choose your vehicle – Car or bike
  2. Enter the registration number of the vehicle and proceed
  3. Provide your vehicle’s make, model and variant
  4. Manufacturing year and fuel type would also be required
  5. Next, you should enter the details of your previous policy and state whether the policy is in force or has expired
  6. The type of the previous policy and the claim history is also to be recorded. If no claims have been made, choose the applicable no claim bonus. Also, state the previous insurer
  7. In the next step, you are asked to provide your contact information so that Turtlemint’s executive can call you and help you with buying the policy
  8. You would then be able to check and compare the available policies and choose the one which is best for your coverage needs

Top #4 Benefits of motor insurance calculator

A motor insurance premium calculator offers great help in calculating your motor insurance premiums even before you buy the policy. It provides the following benefits –

  1. You can estimate the premium outgo beforehand and assess the affordability of your motor insurance policy
  2. You can make a provision in your annual budget when you know exactly the premium that you would have to pay for buying or renewing motor insurance plans
  3. If you use the motor insurance calculator of online websites like Turtlemint, you would be able to compare the premium rates of different insurers and get the best deal
  4. If the calculated premium is high you can make changes in the policy and arrive at the most affordable rate

So, if you have to buy a new motor insurance policy or if your existing policy is up for renewal, use the motor insurance calculator to determine the premium, compare the available plans on their coverage benefits vis-à-vis premium rates and then buy or renew the plan.

Frequently Asked Questions:

  1. What is the cost of using motor insurance calculator?

    There is absolutely no charge involved in using motor insurance calculators. You can use the calculator and calculate your premiums anytime without paying anything.

  2. Can I reduce my motor insurance premiums?

    Yes, your motor insurance premiums can be reduced through the following ways –

    • By using premium discounts wherever applicable
    • By choosing only the required add-ons
    • By renewing the policy on time
    • By not making small claims and preserving the no claim bonus
    • By comparing 
  3. Does the premium remain the same every year under motor insurance plans?

    No, the premium differs every year because the value of the vehicle decreases as it ages. Moreover, if there have been claims, the premiums would not be discounted. If you choose additional add-ons on renewing the policy, then also your premiums would increase. Thus, the premium is dynamic and changes every year.

Business Insurance: Buy & Compare Best Business Insurance Plans

Sidharth Hampanavar

Buying a home is a big affair since you invest a lot of money in buying it. Moreover, additional amounts are spent on decorating, furnishing and buying appliances. As such, in case any damages occur you stand to lose huge amounts of money. If your house is damaged due to a flood or earthquake you would incur substantial financial losses which might prove unaffordable. That is why you need a home insurance policy. Do you know what the policy is all about?

What is home insurance?

A home insurance policy, also called property insurance, is a policy which covers the damages suffered by your home, its contents or both. If there is any damage which is natural or man-made in nature, the policy would pay you for the loss that you incur.

  1. Features of a home insurance policy

    A home insurance plan has the following features –

    • It comes in different variants to suit the different coverage requirements of homeowners
    • The premiums are very low and affordable
    • The policy is usually issued for one year after which you can renew the plan
    • Coverage amount depends on the asset insured and its value
  2. Types of home insurance plans

    Home insurance in India comes in the following variants –

    • Structure insurance

      This policy covers the structure of your house, i.e. the roofs, walls and floors against damages suffered due to natural or man-made calamities. The policy can also be called a Standard Fire and Special Perils policy as it covers the structure against fire and other natural or man-made calamities.

    • Contents insurance

      This policy covers only the contents of the house against damages of loss. Contents of the home include home appliances, jewellery, furniture and fixtures and other contents of the house. This policy is suitable for tenants who face a threat of damage to their belongings if the house is damaged.

    • Comprehensive insurance

      This policy covers both structure and contents insurance. It covers the structure of the house as well as its contents against damages or loss due to natural or man-made conditions.

    • Public liability insurance

      This policy covers any type of injury suffered by individuals when they are on your property or if your property causes damage to another individual’s property. In such cases, the aggrieved third party might raise a financial liability on you. This liability is covered under the policy.

    • Tenant’s insurance

      This insurance policy is designed for tenants who are living in rented houses. The policy is like a contents insurance which covers the belongings of the tenants in the rented house.

  3. What is covered under home insurance ?

    A home insurance policy covers the damages suffered due to the following instances –

    • Fire 
    • Riots, strikes or any other malicious acts
    • Earthquakes, lightning, floods, cyclones, storms, etc.
    • Aircraft damage
    • Missile testing operations
    • Terrorist acts
    • Burglary and theft of the contents of the home
    • Explosion or implosion
    • Landslides, road slides or subsidence
    • Bursting of water tanks or overflowing of pipes
    • Leaking from automatic sprinkler systems
    • Bush fire
  4. Additional coverage benefits under home insurance

    Besides the above-mentioned coverage benefits, add-ons are also available under property insurance plans. These add-ons increase the scope of coverage of the policy and are available at an additional premium. The most popular add-ons available with most home insurance plans include the following:

    • Loss of rent

      If, after damage, the house property is unoccupied, the landlord faces the loss of rent for the period the home is under repairs. This add-on covers the loss of rent.

    • Rent for an alternate accommodation

      Under this add-on the rent paid for alternate accommodation is covered when your home is damaged and you live elsewhere

    • Replacement of lock and key

      The add-on covers the cost of replacing the lock and key of your home.

    • Escalation cover

      Under this add-on, the increase in the value of the home due to inflation is covered.

    • Terrorism cover

      If the plan does not cover terrorism-related damages you can choose this add-on to include such damages.

  5. What is not covered under home insurance?

    Home insurance plans do not cover the following types of damages or losses – 

    • Non-disclosure of important information in the proposal form
    • Pre-existing defects or damages
    • Damages due to war, nuclear contamination, mutiny, etc.
    • Losses due to pollution and contamination
    • Loss of jewellery, cash, precious stones, etc. unless the same is specifically covered under the plan
    • Deliberate damage to the property or contents
    • Consequential losses
    • Misconduct and wilful negligence 
    • Cost of land
    • Depreciation and normal wear and tear
    • Losses suffered when the property is not occupied for more than a specified period
    • Properties under construction are not covered under home insurance plans
  6. Benefits of home insurance

    Home insurance proves very beneficial due to the following reasons –

    • The policy gives you financial security if your house and/or its contents are damaged
    • The compensation paid by the home insurance policy allows you to rebuild your damaged home or replace the lost contents without feeling a pocket pinch
    • Since the premiums are low, you can insure your house under an optimal home insurance policy without worrying about the financial outgo

How to determine the sum insured for home insurance plans

The sum insured of a home insurance policy is calculated on different bases. These bases are as follows:

  1. Agreed Value Basis

    This basis is used to calculate the sum insured of a flat or an apartment. The sum insured is calculated by multiplying the total area of the property (in square feet) with the value per square feet. The area of the property would be the area as mentioned in the Registered Sale Deed Agreement. The value per square feet would be the value which is mentioned in the Ready Reckoner for Property Tax and Stamp Duty and which is issued by the Revenue Department of the State Government. The value would be taken for the date on which the proposal for insurance is made. Moreover, if the value is mentioned in the valuation report of a Government Approved Valuer, the same could be considered in the calculation of the sum insured if the insurance company agrees.

  2. Reinstatement Value Basis

    Reinstatement Value Basis is used in the calculation of sum insured for insuring a building. The value is considered to be the cost of reconstructing the building to the original state in case of damage. The cost of land would be excluded in the calculation. The cost of reconstruction would be calculated by multiplying the area of the building in square feet with the current cost of construction in the locality where the building is situated.

  3. Indemnity Value Basis

    This basis can also be used to determine the sum insured for insuring a building. The calculation is the same as in the reinstatement value basis. However, depreciation of the building, based on its age, would be deducted from the sum insured when it is calculated.

  4. New for Old Basis

    This basis is used of insuring contents of the home and to determine their sum insured. Under this basis, the sum insured would be the cost of replacing the damaged contents of the home with new contents of the same value.

  5. Indemnity Basis for contents

    Under this basis, the replacement cost of contents is adjusted by the depreciation of the contents due to their age. So, the replacement cost of the damaged contents would be reduced to factor in depreciation.

Popular home insurance plans available in India

Here are some insurance companies in India which offer home insurance coverage –

Name of the company

Types of plans offered 

Salient features 

Bajaj Allianz Home Insurance Plan

  • My Home Insurance Policy 
  • Householders Insurance Policy 
  • Easy Householders Insurance Policy 
  • You can choose continuous coverage for up to 5 years
  • Range of add-on covers are available for making the coverage comprehensive 

ICICI Prudential Home Insurance Plan

  • Home Insurance
  • Up to 50% premium discounts for buying a comprehensive policy for 5 years
  • Water seepage related damages are covered

HDFC Ergo Home Insurance Plan

  • Home insurance for tenants
  • Home insurance for owners
  • Housing Society Insurance
  • Different types of premium discounts are available under the plan
  • The company provides 24*7 support in case of claims

Reliance General Home Insurance Plan

  • Home insurance – Structure Protection
  • Home Insurance – Contents Protection
  • Householders Package Policy 
  • Multiple types of policies are available
  • Coverage for jewellery and precious items against theft
  • Chain snatching is also covered

Oriental Insurance Home Insurance Plan

  • Householder Insurance Policy
  • You can buy different policies for the building and contents
  • The premiums are very low and affordable 

Royal Sundaram Home Insurance Plan

  • Home Building Insurance
  • Household Articles Insurance
  • Home Building and Household Articles Insurance
  • Up to 50% premium discount is allowed for a comprehensive policy
  • Mobile and jewellery can also be covered

IFFCO Tokio Home Insurance Plan

  • All in One Home Protector Policy 
  • Home Suvidha Policy
  • Home Family protector Policy 
  • A comprehensive scope of coverage is offered
  • Range of add-ons are available under the plan

Tips to choose the best home insurance policy

If you want the best home insurance policy for your home, here are some tips to follow – 

  1. Choose the type of policy that you need

    There are different types of home insurance plans and buy the best policy you should first know what type of coverage you would need. If you own your home, a comprehensive policy is the best but if you are a tenant, opt for contents insurance

  2. Compare before buying

    As you can see, a lot of general insurance companies offer home insurance plans. So, before buying, compare. Compare the available plans on their coverage features and premium rates and then choose the best policy

  3. Opt for required add-ons

    Though home insurance plans provide a comprehensive scope of coverage, the coverage can be enhanced with the help of add-ons. The add-ons have been stated earlier and you should find out the add-ons offered by different companies. Once you know the available add-ons, choose the required ones to make your plan all inclusive. For instance, you can opt for loss of rent add-on if you are a landlord and you would lose rent in case of damage to the house. Alternatively, if you are insuring your own home, you can choose the add-on which covers rent for alternate accommodation. So, assess your requirements and choose add-ons for a wider coverage.

  4. Compare the claim settlement ratio of the company

    Though there are different insurers, you should compare the companies on their claim settlement ratios too. The ratio helps you determine the probability of claim settlements. The higher the ratio the higher would be the chances that your claims would be settled. So, choose a company which has a high claim settlement ratio

  5. Look for premium discounts

    Insurers also offer premium discounts which help in bringing down your home insurance premiums. Look for the policy which offers the maximum discounts so that you can lower your premiums as much as possible.

How to make a claim under home insurance?

To make a claim under your home insurance policy, you should take the following steps –

  1. Inform the insurance company immediately after the claim occurs. You should inform the company within 7-15 days of the loss to get the claim registered
  2. A police FIR might be required in some cases. So, file an FIR and keep it handy
  3. The insurance company would arrange for a survey of the loss
  4. Once the survey is done, the claim amount would be estimated
  5. You should, then, submit your documents to the insurance company
  6. The company would verify your documents and settle your home insurance claims

Documents required for a claim

The following documents would be required to make a successful home insurance claim –

  1. Claim form which should be filled in and signed
  2. Copy of the police FIR
  3. Investigation report issued by the police after they have investigated the damage
  4. Fire brigade’s report in case of fire-related claims
  5. Original invoice of contents for replacement
  6. Court summons
  7. Estimates of repair costs
  8. Any other document as requested by the insurance company 

Whether you own a house or you live as a tenant, a home insurance policy can provide you with financial security against losses that you suffer. Having a home insurance plan ensures that you don’t suffer a financial loss if any uncertain event damages your home and/or its contents. It, therefore, saves you lakhs of rupees at very low premiums. So, having a home insurance policy is recommended for your financial protection.

Frequently Asked Questions:

  1. Do home insurance plans pay the full amount of claim?

    No, there is a deductible under most home insurance plans. The policies, therefore, pay claims which exceed the deductible limit. The amount of the deductible is to be borne by you.

  2. What is the coverage duration of home insurance plans?

    Usually, home insurance plans are offered for a period of one year. However, insurance companies now offer coverage tenures ranging from 1 day to up to 5 years.

  3. What types of premium discounts are available under the plan?

    Home insurance plans usually allow premium discounts for buying a comprehensive policy and for opting for long term coverage duration.

  4. What is underinsurance?

    If you cover your home and/or its contents for a value which is lower than their actual value, it is called underinsurance. In the case of underinsurance, claims would be settled on the average clause basis. 

  5. Can any rented property be insured?

    Yes, you can insure a residential property which you have let out for residential purposes.

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