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    • Premium collection for Life Insurance dips due to COVID-19

      As COVID-19 has been spreading to a great extent in the country, the collection of premiums on life insurance has taken a huge hit. With insurers being reluctant to take higher risks as death due to COVID-19 is covered under life insurance policies despite the status of it being a pandemic.

      The longer gestation period of COVID-19 makes it a deadly disease as even healthy applicants of insurance policies have a high risk of getting infected after they have been issued a new policy. Issuing new life insurance policies would be of higher risk for insurers due to COVID-19.

      The individual weighted received premium (WRP) of the Life Insurance Industry has reported a dip of 19.8% YoY in May 2020. Compared to April 2020, the decline of 43.7% was recorded due to COVID-19 which continued to hamper the business.

      Life Insurance Corporation reported a lower decline YoY of 3.1% in individual WRP whereas HDFC Life had reported a YoY decline of 33%, and SBI Life reported a dip of 46%.

      8 July 2020

    • Covid-19 coverage provided by term life insurance plans

      Certain term life insurance plans are providing coverage for Covid-19, such as Edelweiss Tokio Life-Zindagi Plus. This is a term plan that provides death cover due to the coronavirus. The force majeure clause is not applicable for this term plan. The policy holder’s spouse can also be covered under the same plan with only a marginal increase in the premium amount. This is called the Better Half Benefit. There is also the Top Up Benefit and the Life Stage Benefit. The Better Half Benefit provides the nominee with a death benefit in the event of the policy holder’s death. Apart from this, all future premiums will be waived off and life cover, for the duration of the remaining policy, will be provided to the spouse. The Top Up benefit allows the life cover to be increased as per the changing requirements. The Life Stage Benefit also offers the option of increasing the benefits with the changing requirements of different stages of life.

      1 July 2020

    • Sukanya Samridhhi Yojana, PPF, RD payments -no penalties

      If you have not deposited the due amounts in your respective accounts for FY 2019-20 and April 2020, then you can do this by 30 June. There will now be no penalty whatsoever for missing payment.

      The Ministry of Finance had gone on to approve the exemption of the revival fee and penalty for PPF, RD, and SSA accounts after having realised the difficulties that people had been facing because of the lockdown. The Department of Post had begun getting representations from different quarters asking for exemptions on the penalty and revival fee due to failure of depositing the amounts.

      The notification had said that the subscribers of RD/PPF/SSA accounts can deposit their amounts for F.Y. (2019-20) and April 2020 by 30 June 2020 and there will be no revival fee or penalty charged.

      8 June 2020

    • Life plus hospitalisation insurance cover launched by Aegon Insurance and Flipkart

      Aegon Life Insurance and Flipkart have launched the first ‘Life Insurance with COVID-19 Cover’ for various hospitalisation expenses of up Rs.1,00,000. This new insurance plan will provide customers of Flipkart a comprehensive insurance cover against COVID-19 and the plan can be availed on the Flipkart app along with the base life insurance plan.

      The ‘Life Insurance with COVID-19 Cover’ will be supporting the holder of the policy and cover hospitalisation costs of up to Rs.1 lakh for a minimum of 24 hours of hospitalisation on the first-ever diagnosis of COVID-19 along with death benefit from the life insurance.

      According to CFO and Principal Officer of Aegon Life, Satishwar Balakrishnan, the government has taken steps to fight COVID-19, however, there is a shortage of life insurance and health insurance covers. Through this insurance cover, the aim and goal of Aegon Life of providing financial health and life benefits are carried out at an affordable premium every year.

      Ranjith Boyanapalli, Head of Fintech and Payments group, mentioned that Flipkart caters to 200 million customers in the country and a full-coverage product such as the Life Insurance with COVID-19 Cover will provide the people of the country a much-needed product which has life and hospitalisation benefits combined in one.

      3 June 2020

    • 1,000 branches of various life insurance companies could be shut due to COVID-19 crisis

      Due to the economy struggling against COVID-19, there have been many companies who have been adversely affected in terms of revenue and operations. With the novel pandemic affecting lives every day, there have been many companies who are struggling to stay afloat, including various life insurance companies. Life insurance companies have been trying to save by reducing the number of branches they have.

      According to various sources, by the financial year 2022, around 6-8% of the total number of branches could be shut down in order to save money which would be around 11,600 branches across the country. The branches which are nearer to large cities with internet connectivity will be the first ones to be shut down.

      Insurance plans have been sold online through video calls or through various websites since the lockdown was imposed and according to reports, life insurance companies saw an overall year-on-year decline of 32.2% in the new premium collection in March 2020. In April, the first-year premium collection declined yet again by 32.6% to Rs.6,727.74 crore in the month.

      With the lockdown in place, banks and various insurance agents are the two major and largest distribution channels for the insurance companies in the country. Online sales have constituted less than 10% of the total premium collected.

      22 May 2020

    • Rs.148 crore profit for FY20 by IDBI Federal Life Insurance

      On Monday, IDBI Federal Life Insurance had reported a net profit of Rs.148 crore for the FY 2019-20 against its profit of Rs.133 crore in 2018-2019.

      The company's overall premium reduced by 4.65% to Rs.1,843 crore in 2019-20 from Rs.1,933 crore during the FY 2018-19. The CEO Vighnesh Shahane had said that while FY20 was challenging for the company, they have now taken a lot of steps to get back on their feet. They are now focussing on developing the distribution footprint through their proprietary channels. They are going to continue strengthening parameters like costs, persistency, claims, surrenders, solvency margin and PAT.

      The renewal premium had grown by 14% to Rs.1,282 crore as against Rs.1,126 crore in the FY 2018-19. The solvency ratio had been 298% as compared to 334% during the FY 2018-19.

      19 May 2020

    • Grace period for payment of premium on life insurance extended

      On Sunday, the insurance regulatory body, the IRDAI had said it want to extend the grace period for the renewal of life insurance policies which have premium that were due in March till 31 May. This was done amidst the wake of the lockdown in order to combat the coronavirus.

      The IRDAI had said that by reviewing the current situation of this lockdown, they have taken a decision that for all life insurance policies for which the premium was due in March 2020, the grace period will be extended till 31 May 2020.

      14 May 2020

    • Shares of SBI Life and ICICI Prudential Life rise

      Stocks of SBI Life Insurance gained 5% reaching a high of Rs.750 which was a 9% surge on the BSE over the last 2 days. The shares of ICICI Prudential Life Insurance went up to Rs.403, which was a surge of 7.5%. HDFC Life Insurance Company rose by 4% to a price point of Rs.498 on the BSE. The Value of New Business (VNB) for SBI Life Insurance improved to 18.7% (which is +102 bps yoy) with a gradual rise in protection plans. This is likely to improve further, as per analysts, because of the post-Covid situation where there is a rising trend towards protection plans both from the corporate side and the individual angle.

      12 May 2020

    • Journalists in Assam to be given a life insurance cover of Rs.50 lakh 

      The chief minister of Assam, Sarbananda Sonowal had tweeted that the frontline journalists who are covering news stories of COVID-19 and risking their lives by doing so will be given a life insurance cover of Rs.50 lakh by the government.

      Mr Sonowal mentioned that the journalists have been on the frontline, risking their lives to provide adequate coverage of the pandemic in the country and the state. With this, the government had announced the insurance cover to support them and their work.

      On 25 April, there were many journalists in the state of Assam who took the COVID test in the Guwahati Medical College and hospitals. With this announcement, various associations of journalists have welcomed this decision taken by the state government on insurance coverage.

      06 May 2020

    • Various insurers to start offering e-KYC to make the purchase life insurance easier

      People who wish to buy different insurance policies will be able to do so much easier with insurers starting to offer e-KYC option by providing the Aadhaar card number as identity proof. According to the press release by IRDAI, with the e-KYC option in place, customers can purchase insurance policies easily making the KYC process simpler during the lockdown period.

      To enable this, the government has allowed insurers to avail the Aadhaar-based authentication service of the Unique Identification Authority of India (UIDAI) to complete the KYC norms of people who hold policies. In the press release, IRDAI mentioned that to facilitate the public to complete the KYC process, IRDAI has recommended for allowing insurance companies to avail the Aadhaar Authentication Services.

      According to Kayzad Hiramanek, EVP – Customer Service and Operations at Bajaj Allianz Life Insurance, this move by the government will help this industry to restart the process of paperless KYC for their online customers who wish to purchase insurances in this period.

      28 April 2020

    • Pune Municipal Corporation to provide Rs.1 crore life insurance and job to kin of civic staff in case of covid-19 death

      The Pune Municipal Corporation (PMC) will provide Rs.1 crore life insurance cover and a job to one family member in the case of the death of a civic staff due to Covid-19 in the cases of the staff being involved in the containment activities of the coronavirus in the city of Pune. These activities would include conducting surveys to ascertain the spread of the disease, managing those in quarantine wards, and being involved in the treatment of the infected people. The civic staff would include medical staff, non-medical staff, and conservancy staff. They will also be provided with Personal Protective Equipment (PPE). Life insurance cover has also been provided to staff by the Pune police department and the Pune Zila Parishad.

      14 April 2020

    • Covid-19 death claims will not be denied, says Life Insurance Council

      The Life Insurance Council of India announced that none of the life insurers which are its members will deny policyholders a death claim if there is loss of life due to the Covid-19 infection. For death claims related to Covid-19, the general clause called ‘'force majeure’' will not be applicable. This clause usually refers to unforeseeable circumstances that may prevent a contract from being fulfilled. The apex body also stated that all private and public insurers must process death claims related to Covid-19 as expeditiously as possible. This will have to be communicated to customers individually by the insurers. Also, digital support will be provided for quick servicing of policies and for honoring death claims. This is in the context of the lockdown that is currently in place in the country.

      13 April 2020

    • Public Litigation Interest in Delhi High Court seeks life insurance cover for journalists and media personnel

      Public interest litigation was moved in the Delhi High Court on 30 March 2020, in order to seek directions to provide medical and life insurance to reporters, journalists and other media personnel on the ground of at least Rs.50 lakh each. The litigation was moved to the High Court to seek directions from the Central Government about this.

      However, the court mentioned that there is no urgency to this issue and stated that it will later hear the petition once the lockdown was done. The petition was filed by social activist and lawyer, Arpit Bhargava who sought direction for providing security and safety of media personnel on the ground along with providing a life insurance or medical insurance cover who are working on the ground reporting about COVID-19.

      The plea also sought directions to the Central Government and the Press Council of India to ensure the safety of journalists and media personnel to allow them to ‘Work from Home’ and to ensure basic sanitation and other facilities at their workplace along with not cutting salaries during the period of the lockdown is over.

      The plea mentioned that the responsibility falls on the government to provide social security to the people in the media and welfare during the times of emergency must be given.

      3 April 2020

    • State government announces life insurance worth Rs.4 lakh for more than 60,000 employees

      The state government of Dehradun announced on Monday that around 68,457 employees who are directly involved in the fight against COVID-19 will receive an insurance cover of Rs.4 lakh each. The insurance cover will be given to the frontline employees and the period of this insurance will be for a year. The total amount of Rs.17.02 crore will be taken from the CM Relief Fund according to a notice from the Chief Minister’s office.

      Among the 68,457 employees, 22,523 are police personnel, 7,899 are health employees, 15,595 are anganwadi employees, 14,376 are anganwadi assistants, 4,924 are mini-anganwadi assistants, 464 supervisors, 78 child development project officers and 3,000 employees of the Garhwal Mandal Vikas Nigam and Kumaon Mandal Vikas Nigam. Provisions for an insurance cover will also be made for the media persons who are reporting the pandemic from the ground.

      Chief Minister Rawat had held a meeting with the members of the Indian Medical Association where he stressed on the importance of the role of private hospitals handling the current situation. He mentioned that the hospitals keep their OPDs open so that patients who are suffering from other ailments do not face any inconvenience. He also mentioned that the state government will provide the required support to private hospitals.

      1 April 2020

    • IBAI urges for extension of insurance policies after lockdown announcement

      Many companies across India are now facing the risk of having their insurance policies lapse as business across the country are now shutting down after the lockdown imposed by the government. This move was made in order to combat the coronavirus.

      The Insurance Brokers Association of India (IBAI) had spoken to the nation’s insurance regulator and had requested the extension of all existing policies for 60 days. This could be done by paying pro-rated premiums at current rates and terms.

      In this request, the association had also added that the IRDAI temporarily relax a particular rule that states that insurers should receive the premium before they provide the cover. For avoiding the gap in coverage, companies will have to pay premiums right before the existing policy expires.

      A new report has said that a lot of insurance policies provide annual contracts and while they can be purchased at any time during the year, a few businesses buy them when they start the Indian fiscal year -1 April. The IBAI president, Sanjay Kedia had said that a lot of international insurance authorities and markets, (Lloyd’s of London) have taken the step to implement extensions to all policies because of the disruptions caused by the coronavirus.

      27 March 2020

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    Customer Reviews

    • LIC Life Insurance
      "Best policy "
      0.5 5.0/5 "Blown Away!"
      LIC has offered a Jeevan Anand policy and i have taken for 5 year before. I am paying premium of Rs. 15,000 on quarterly basis which is sufficient. While getting a policy the agent has given me a clear policy details and their service was good and it has a good policy coverage.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 20, 2020
    • LIC
      LIC Life Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      On one year back, I have taken life insurance from LIC. Since the agent has recommended with all good benefits so I preferred this policy to apply. I have received the hard copy on time. The tenure period of 15 years 2021 getting maturity and i am paying premium on quartely 40,000 which am paying to the agent. It covers up to myself with the sum assured of 7.5L.
      Was this review helpful? 0
      , tirupur
      Reviewed on Mar 20, 2020
    • Max Life Insurance
      "Good insurer"
      0.5 3.0/5 "Satisfactory"
      I taken a life insurance in MAX LIFE on 6 months back. It covers up to myself with tenure period of 35 years. To pay the premium amount there is additional criteria like accidental and for an emergency purpose can do claim at any time, so total amount need to pay of 18K on yearly. They have tied up with many hospitals.
      Was this review helpful? 4
      , bangalore
      Reviewed on Mar 20, 2020
    • LIC Life Insurance
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken life insurance policy of Jeevan Bhima for the tenure of 15 years .The premium is paid through yearly basis and premium is paid by myself through lic office only.This policy is stil active and the policy features and benefits was clealry shared by the agent .
      Was this review helpful? 0
      , indore
      Reviewed on Mar 20, 2020
    • Bharti Axa Life Life Insurance
      "Good service "
      0.5 4.0/5 "Great!"
      On 5 months before taken a life insurance from BHARTI-AXA. The tenure period of 15 years plus 5 years of maturity. My friend has suggested this policy to apply and I received the hard copy on time. The premium amount of 21K need to pay on yearly. The coverage amount of 10L if an emergency or accidental happen other 10Lis applicable. The charge is high when compared to other.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good "
      0.5 4.5/5 "Excellent!"
      I have taken a life insurance in LIC on 6 years before. The policy of tenure period of 20 years. I am paying premium on half yearly package the amount of 8K which is nominal. While getting a policy my agent has given an information about the policy details. It covers up to myself.
      Was this review helpful? 0
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Secured policy"
      0.5 4.5/5 "Excellent!"
      I got Money Back policy from LIC. It was taken on 14 years back. The tenure period of 20 years. The premium amount need to pay on half yearly basis of 2,480 rupees. Evey 5 years I get good returns from their end. So far I have not faced any charge. I use to remainder and update from my agency.
      Was this review helpful? 1
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good"
      0.5 4.5/5 "Excellent!"
      I took a life insurance for myself only from LIC. The policy of Jeevan Mithra which I need to pay of 10K on quarterly basis. I took this policy on 15 years back, when I was a student took this insurance so all the details got from their end on time. Only for investment taken this policy.
      Was this review helpful? 0
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good service"
      0.5 4.5/5 "Excellent!"
      LIC has offered a life insurance for my children. It covers my kids only. It was taken on 2015 which is good policy. The tenure period of 20 years. Agent has given all the details about the policy and also provided hard copy documents on time. The premium amount to pay of around 3K.
      Was this review helpful? 0
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good policy "
      0.5 4.5/5 "Excellent!"
      For my spouse I taken a life insurance policy from LIC on 3 years back. It covers only for her. The tenure period will be 20 years. I use to pay the premium amount of 20K per annum. Since somebody suggested about this policy so I opted for it. The policy is Jeeven Anandh.
      Was this review helpful? 1
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good insurer"
      0.5 4.5/5 "Excellent!"
      I taken a life insurance from LIC on 7-8 years back. They have given the policy of Jeevan Anandh which was covered only for myself. The premium amount which I need to pay of 6K around. The agent has given all the details about this policy. So far I have not faced any charge. To pay the amount I visit branch directly. The tenure period of 20 years.
      Was this review helpful? 1
      , darbhanga
      Reviewed on Mar 19, 2020
    • LIC Life Insurance
      "Good insurer"
      0.5 5.0/5 "Blown Away!"
      I got a money back policy from LIC hence taken on 12 years back. I am paying premium on quarterly package the amount of 6K which is nominal. While getting a policy the agent has given an information about all details and received the hard copy documents on time. It covers up to myself only.
      Was this review helpful? 1
      , rajahmundry
      Reviewed on Mar 18, 2020
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