Private Insurance And Public Insurance Companies

private vs public insurance company

As we all know that about 70% of India’s total population is below middle-class families and are only able to earn for spending their livelihood. So, not everyone can afford an insurance plan for their financial security. To overcome this problem our government has announced some schemes for the weaker section of the society. Under these schemes, people have to pay a small amount yearly and take advantage of some features provided by the government. 

 Below are some public insurance company schemes and their benefits:

  • Life Insurance Corporation of India

LIC lies among the topmost insurance companies in India incorporated in 1956. It is governed by the insurance act 1938. There are so many offices of LIC located in every state and zone of India and everyone is well aware of this company. This company only deals with life insurance and offers the best financial protection at low annual premiums.

  • General Insurance Corporation of India

GIC was incorporated on 22 November 1972 and owned by the state government. Its headquarters are based in Mumbai (India) and 3 liaison offices are based in Chennai, Delhi, and Kolkata. After its inception, 4 companies became its subsidiaries to control and operate the general insurance in India.

  • The New India Assurance Company

It was founded on 23 July 1919 and its headquarter is based in Mumbai, Maharashtra. It is a well-established insurance company with excellent financial strength and has 2329 branches in India. Its network is also distributed internationally among 28 offices situated abroad. There are a total of 17330 employees working with NIA including all low-grade workers.

  • The Oriental Insurance Company Limited

This company was incorporated in 1947 and its headquarter is based in New Delhi. This company offers more than 170 types of insurance products including all major and minor facilities catering to all segments of general insurance. There are a total of 1800 branches activated across the country and also have some regional branches in foreign countries. There are approximately 15000 employees working with Oriental insurance companies. On 2nd February 2018 the government of India announced the merger of Oriental Insurance with a National Insurance Company and United India Insurance Company.

  • United India Insurance Company Limited

UIIC was incorporated on 18th February 1938 and nationalized in 1972. It is completely owned by the government of India and its headquarter is based in Chennai. After nationalization, 12 Insurance Companies of India, 4 Cooperative Insurance Societies and 5 Foreign Insurers with Indian operations have been merged with UIIC to form a company. It provides general insurance for majorly all segments of the business. UIIC has a total of 2248 offices including all service hubs, regional, branch and divisional offices spread all over India.

  • National Insurance Company Limited

NICL was incorporated in 1906 and nationalized in 1972, since then it has been owned by the state government. There are 11 Indian and 21 foreign companies merged under it after nationalization. Its headquarters is based in Kolkata. NICL provides several public policies like auto insurance, medical insurance, property insurance, and accident insurance. Apart from these, it will also provide insurance for business and agriculture under rural insurance policies. It also provided industrial and commercial insurance to cope with the loss in the construction business, recovering the damage in transportation.

  • Agriculture Insurance Company of India Limited

This insurance company was incorporated on 20 Dec 2002 with an authorized capital of INR 1500 crores to cater to the needs of farmers involved in agricultural activities. It will provide financial support to the families of farmers in case of crop failure due to natural calamities, disease or pests

 They will also help farmers to use modern and progressive techniques to stabilize the income from the farmland particularly in the year of the disaster. It will cover the loss of cyclones, hailstorms, hurricanes, landslides, floods, drought, vermin and other nature dependent calamities. 

Private Insurance Company

Apart from these public sector companies, there are 57 private insurance companies working in India and dealing with the financial loss of their customers. In these 57 companies, 24 are engaged in life insurance and rest 33 are engaged in non-life insurance. These companies are also trustworthy as they are regulated and monitored by IRDA.

Getting a license for an insurance company and establishing it in India is a tough task as it needs initially INR 100 crore for license registration. So, if any company has set its root in the insurance market, then there is no doubt that they are having massive financial strength with them.

If you are thinking that what happens if the company suddenly gets shut down taking all your hard-earned money, then you must know about the merger clause. Under the merger clause, if any insurance company wants to wind up their business then they have to merge their business with another company and the other company will run the business further. So, not an insurance company can suddenly wind up their business and leave their customers in pain.

Further, choosing between a private insurance company and a public insurance company is really a difficult task. As different companies are providing their best for the specific insurance product and have their edge over others.

We have provided some comparisons to get a rough idea for the benefits provided in health insurance for both public and private insurance companies.

Private Insurance Company vs Public Insurance Company 

  • Public sector insurance companies were established years ago and since then they are performing well whereas private sector companies came into existence in 2000 and are now performing well. 
  • Public insurance companies are regulated by the government of India or state government whereas private insurance is monitored by IRDA.
  • Public insurance companies come under GIPSA Hence able to provide huge discounted rates whereas private insurance companies don’t provide such discounts. 
  • Public health insurance has a cap and comes with an upper limit for expenses whereas private health insurance companies majorly offer complete coverage on all medical expenses.
  • The private sector provides restoration and NCB benefits on health insurance whereas the public sector doesn’t provide such benefits.
  • The private sector provides a high sum insured to cover all diseases and expenses whereas the public sector provides a specific amount of sum insured for all.
  • The private sector provides facilities to increase the sum insured by giving extra amounts whereas the public sector doesn’t provide ants such provision for further addition.
  • With public health insurance, you can negotiate for expensive surgeries whereas private insurance companies will not provide any negotiation with surgery cost.

What Benefits Do Top health insurance companies offer?

health insurance benefits

In today’s fast-paced life, insurance is the most important part thing in everyone’s life and we all must have done our health insurance either it is from personal or from any organization we are working in. Health insurance also protects you from unexpected high medical costs. Our modern lifestyle and untimely eating habit play an important role in making ourselves unhealthy. There are so many diseases that are very common these days such as obesity, High Blood pressure, Diabetes and 80% of the Indians are suffering from these types of diseases. When there is so much competition in everything, health insurance companies are also providing their best to become in the topmost in the list. Some of the renowned and Best health insurance companies are:

1. Star Health & Allied Insurance Company Limited

2. Max Bupa Health Insurance Company

3. Apollo Munich Health Insurance Company

4. Cigna TTK Health Insurance Company

5. Religare Health Insurance Company

6. ICICI Lombard Insurance Company

7. New India Assurance Insurance Company

8. Oriental Insurance Company Limited

9. National Insurance Company

10. Bajaj Allianz General Insurance

Types of Health Insurance Plans:

There are numerous health plans available in the market, but some majorly used Health insurance plans available in the market to ensure you, your family, your employees, and your old aged parents are:

  1. Personal/Individual health insurance plan: In this plan, you can only insure yourself or you can say that only one person can be covered under this insurance plan.
  2. Family floater plans: This plan is best suited to insured a family that includes your parents or spouse and kids. 
  3. Group health cover: This insurance plan is taken by corporate houses and offices for insuring their employees with the same benefits to all. Every organization providing health insurance also deduct the amount for the same from your salary. 
  4. Senior citizen health insurance: Medical treatment for old aged persons are extremely expensive these days. So, the premium is also high in this case as compared to other policies. If someone in your family is having an age of 65 or more then you can take this insurance to cover the medical expenses.
  5. Critical illness health cover: This policy covers the expenses caused in life-threatening diseases like cancer, tumor, paralysis or any type of major surgeries.

As you all must know that medical care is so much expensive these days, so it is compulsory for everyone to take health insurance. By taking any health insurance policy, you can take cashless treatments at the hospitals nearby you at the time of emergency. You can take this insurance plan as per the requirement of you and your family. It will also provide moral support to your family members when suddenly the earning person is suffering from any serious disease. The beat health insurance policy must include all features like transportation charges, cashless treatment, maternity benefits, cover medical check-ups costs, OPD, Pre and post hospitalization charges and multiple network hospitals.

Benefits of Health Insurance:

  1. Treatment Without Cash: By taking health insurance you can take treatment in the list of collaborated hospitals without cash. 
  2. Include Transportation Charges: Insurance policy must cover the ambulance charges for the transportation of the insured person.
  3. Outpatient Department: Insurance policy covers the cost of OPD is best because not every minor disease we need to get admitted in the hospital bus the medicines and check-ups also cost too high for a middle-class family.
  4. Tax Benefit: Health insurance also provides a tax benefit to some extent for taxpayers.
  5. Pre And Post Hospitalization Charges Include: It must include all the pre and post-hospitalization expenses up to 60 days such as medicines, medical tests and other expenses costs due to hospitalization of the insured person.
  6. Room Charges: It also covers the charges of the room, if you take any private room in the hospital.
  7. Maternity benefit: It includes the expenses of the insured pregnant lady and the newborn baby up to 90 days.
  8. No claim bonus: In case you did not claim anything in a single year you will get a 10% increase in the sum insured for next year. Further, if you do not claim for anything in 2 years then the sum insured will be increased by 20% and so on. A maximum bonus of up to 50% is permissible.

How to choose the right insurance policy:

It is always a difficult task to choose from the best policies available in the market. These are about 900 health insurance companies in the market offering multiple facilities at a different amount which you have to pay annually. 

These are several quotes you can find online to compare some best health insurance policies. You will also find detailed information in comparison of various policies and the cost of premium you have to pay. Online searching is an easy and fast way to compare from Best Mediclaim policy available in the market. Further, you can always ask your friends and family for any suggestions related to health insurance policies. 

Portability in health insurance: 

Portability gives you the freedom to change your insurance company if you have not liked the benefits or services provided by your previous insurance company. You can port your insurance plan to plan other health insurance companies in 30 days grace period. All you need are the following documents to port your insurance policy:

  • CARE proposal form
  • Portability form
  • Copy of expiring health insurance policy
  • Copy of renewal notice

Why is Car Insurance Compulsory? Do you Need Car Insurance?

Car insurance

When you meet with an accident and don’t have a financial source to repair your car or for your medical expenses, then it became mental torture for you and your family to handle the expenses. At that time, having car insurance is the best possible solution all car owners must-have. When you have already insured you and your car against any damage is a complete relief for anyone.

So, whenever you think of taking car insurance, the first question that arises in your mind is “How much car insurance do you need?” whether the amount of insurance taken is sufficient to cover the damage or not. Just make sure to take advice from an expert about the coverage so that you won’t face any problems in the future. Further, you can also refer to some quotes available online for taking car insurance.

Types of Car Insurance Coverage: 

There are various types of car coverage that covers the expenses or damage to different things. Every insurance is different from another, as these are several criteria of the insurance companies to cover or exclude the damage. With some insurers, you have to pay extra charges to cover the optional things, but some insurers by default cover all the damage that costs money. So, don’t forget to ask what they are covering in this before buying any of the insurance.

Here are some common coverages that are usually taken by car owners for their safety:

  • Collision Coverage: When your vehicle has an accident with another vehicle, or basically the damage in the car is due to the mistake of the driver then it comes under collision coverage. Collision insurance covers the repair or replacement expenses of the damaged vehicle. This is considered as important as well as compulsory coverage because it ensures the vehicle from getting damaged.
  • Liability Coverage: It is the most important and mandatory part of the car insurance as it covers the damage of the other’s property as well as of the injured persons. It helps to pay for the bodily damage caused to an individual, their medical expenses and also covers the damage caused to the property of others due to accidents.
  • Medical Payment Coverage: These days medical bills are so high, so it became a risk to your life when you suddenly met with an accident. To lighten us this expense you can take medical payment coverage, that covers your hospital visits, surgeries, various tests, and other medical-related costs.
  • Personal Injury Protection: This coverage is not compulsory in every state, as in some places it is optional but in other states, it’s required. It helps in reimbursing the medical costs, funeral costs, child care costs, loss of income results due to an accident and doesn’t cover the expenses of the damage caused to the vehicle. This coverage is commonly known as no-fault insurance or PIP insurance.
  • Rental Coverage: When you have an accident and your car is completely damaged that it cannot be driven. Then you just have to take a rental car or bus to reach a place in your expenses. This coverage reimburses the taxi charges or the bus fare that you have paid.

As this is an optional coverage, so you just need to have an insurance plan covering the damage of the car. Having an insurance plan will help your insurer to cover the rental charges.

  • Gap Insurance: This is an optional coverage option that you can take when you have purchased your vehicle on loan. It will help you to pay your car loan, in case your car is stolen or totaled. It is only applicable in case of damage when the total repair cost is higher than the actual value of the vehicle.
  • Towing and labor coverage: This coverage included the charges for towing your car when it stuck off in the middle of the road. It also covers the labor charges to repair your vehicle including oil delivery, tire change, and jump-starts.
  • Comprehensive coverage: This coverage provides the surety that if your vehicle is stolen, damage done by animals, any falling object, damage due to riot or got damaged due to any natural disaster like hail or storm, then you will get the replacement of the vehicle.

Why you need car insurance:

  • It is legal in all countries to have car insurance. If you don’t have insurance then you must get punished if caught by any legal authority.
  • It will help you to protect from penalties in road accidents. There are different penalties and fines of different states which you have to pay.
  • It helps you to reimburse the financial loss and pay the cost of your vehicle repair.
  • It also helps you to pay off the medical bills of the passengers.
  • Not only when it is your mistake in an accident. It also pays your medical bills when the mistake is of another driver.

Top considerations while buying travel insurance

travel insurance123 1

Whenever you are traveling domestically or internationally, you need to get travel insurance. But, some people still don’t think of purchasing travel insurance. They think it an unwanted expense. With travel insurance, you can protect yourself from a financial catastrophe in different countries during any sort of urgency.  Hospital cash allowance, overseas medical emergency, companion’s travel cover, and accommodation expenses are some of the benefits of travel insurance. Though it depends on the type of insurance you are choosing, you will still get a long list of advantages. 

After comprehending the requirements of this insurance, people usually go for buying it. For the policyholder, it is important to analyze all the plans and needs before buying it. In the market, there is the availability of multiple plans for travel insurance. You cannot just buy a random plan by just looking at your friends or colleagues. Your requirements for insurance might be different from them. Therefore, to find the best travel insurance, make sure to follow all these critical considerations one by one:

Focus on the risk factor

While traveling, you can encounter many types of risks. These include luggage damaged or lost, medical emergency, and many more. Every travel has its own sets of risks that can happen to anyone anytime. So, you need to analyze the nature of travel and risk associated with it so that you can get the best travel insurance. Travel insurance can provide you higher cover to financially secure in such unexpected situations. 

Identification of your requirements

As discussed above, everyone has different requirements and expectations from travel insurance. The best part is that you won’t have to pay for a plan that you don’t want.  Right from coverage to risks and premiums or nature of the destination, all these need to be considered carefully while buying travel insurance. 

Policy duration

Another important consideration is to be focused on the policy duration. Generally, the policyholder can choose for a single or multi-trip option as per their travel need. This is depended on the travel plans of the person. If a person is making frequent trips in a year then he/she should for multi-trip policy. For the yearly vacation of the trip, a single trip policy would be just fine. In comparison with a single trip, the multi-trip policy is highly beneficial as it helps in saving you from the hassles of buying the individual policies for the trips. 

Another fact that cannot be denied is that unexpected travels. In such a situation, you will have to extend your trip. So, while choosing a travel plan, ask for the chances of extending your trip. Considering all that, you need to review the duration of the policy cover. 

Knowing the Claims Settlement process 

Reviewing the claim settlement of the policy is as important as coverage and policy duration. So, you cannot forget this factor when looking for the best travel insurance. The claim settlement ratio is mainly the number of insurance claims that have been approved against the claims made. If there is a poor claim settlement ratio then you should avoid getting from the insurer. 

Destination cover of the policy

This might appear obvious to us but sometimes people just buy the travel insurance in so hurry that they don’t even look at the coverage. But, you always need to have a look at this find out whether they provide cover to your selected destination or not. One fact that cannot be ignored is that every policy has different cover and terms. In such a situation, you must choose a policy that ensures good geographical coverage. There are options for global policies but make sure to read their clauses and terms carefully. 

Premiums of the plan

The premium of insurance depends on the destination. In some countries, medical costs are high. So for these countries, premiums are also a bit high. The policyholder is needed to compare this feature of premium with some policies to shortlist the names of the policies. 

Cover for valuables

Have you ever lost your luggage at the airport or other important valuable during travel? What will you do in these situations? Though the loss of valuable is uncommon, unexpected emergencies can hit you hard anytime. Well, some policies also entertain this type of claim. So, you must have a look at this consideration when buying the best travel insurance. 

To sum up

As discussed above, you will get to know that travel insurance comes with multiple benefits. Therefore, it’s important to choose it wisely by considering different factors such as cover, type of plan, and destination. One needs to differentiate the available travel insurance policies on different aspects and features in order to find the suitable one based on specific needs.

Know about the requirement of Life Insurance Plans in everyone’s life and its types

1 May 2020 Life insurance

Most of the time, people are seen to buy insurance for a car, a motorbike, or a home. They think that buying vehicle insurance will protect them at the time of accidental cases or third party damage. What about insuring your life? According to surveys, it has been seen that most of the people don’t buy life insurance. But, life insurance is as important as other types of insurance. No one knows what the future holds for all of us. Unexpected emergencies can occur anytime anywhere. Therefore, it is better to be financially protected for the future than asking for monetary help from others. Life insurance plans benefit mostly from the sole earner of the family. 

Let’s gather more information about the importance of buying and types of life insurance in a well-detailed manner:

Importance of Buying Life Insurance Plan

  • Financial assistance even after the insured person is gone: One of the important benefits of having life insurance plan is its financial protection. With this, the family members will not have to depend on others for monetary help. If you are a sole earner of the family then your entire family is dependent on you for children’s fees, household expenses, medical costs, etc. What if you are gone and no one in the family is earning? In such a critical situation, life insurance plan can help the surviving dependents with financial security. 
  • Managing all the debts: There are times when people take some debts because of any emergency. It could be anything like a vehicle loan or any sorts of debts. With such insurance, you don’t have to deal with debts when the sole earner of the family has gone. These financial liabilities will be taken care of by different life insurance plans. 
  • Tax benefits: Another important benefit is that you can save taxes on insurance policies. No matter what type of policy you are buying, you can save your tax.
  • Stress-free and peace of mind: The state of peace can be achieved by the insured person by buying it. Insurance can secure family members financially in bad times. What better you could do for your family and loved ones? Therefore, buying life insurance plan will give you complete peace of mind.

Types of Life Insurance Plans

Whenever you think to buy life insurance plan, you will get to know about its different types. By understanding these types, nature, and coverage, you can easily buy life insurance. Let’s have a look at these types briefly:

1. Term Life Insurance Plan

The most basic type that is commonly purchased by the people is the term insurance. With this type, the insured person will get life cover without any savings. If you are looking for an affordable plan with cheap premiums then you must go with a term insurance plan. In this, a fixed sum of money will be paid to the beneficiaries if the insured person expires during the policy term. There will be no payout if the insured person survives.

2. Endowment plans

Another plan of life insurance is the Endowment plans that are different from the term plans. It is different mainly in the aspect of maturity benefit. In the endowment plans, the payout of the sum assured will be given under both conditions– survival, and death. Because of this reason, the premiums of endowment plans are a bit higher than other life insurance plans.

3. Whole life policy

In the whole life insurance policy, the policyholder will get covered over his life. If we will talk about the main benefit of whole life policy then it is the validity of the policy. The validity of this plan is not defined therefore individual can enjoy this throughout his life. The policy will expire only in case of an eventuality. As long as you are paying the premiums, the beneficiary will get the benefit upon the policy holder’s death.

4. Money back policy

This plan can be considered as a type of endowment plan as it provides periodic payments during the policy term. Also, a portion of the sum assured will be paid out at regular intervals to the beneficiary. In case the policyholder survives during the term, he/she will get the balance sum. After the death of the policyholder over the term, the beneficiary will receive full sum assured.

5. Unit linked insurance plans 

ULIPs pay out the sum assured on death or maturity. This kind of life insurance plan is linked to the markets. The main thing is that people can choose the allocation for investments in debt or stock. In addition to this, it is also a combination of insurance and investment.

Based on the need, premium, and budget, you can choose life insurance plan to keep your family financially protected for the future.