What Is Insurance all about?

Insurance is an ancient concept. The first form of insurance emerged to limit the loss of goods during inland transit by the Chinese and Babylonian traders. The concept evolved over time to become the modern business of providing protection against various risks. Now, the insurance industry is well established and still evolving with time and need of the consumers. So, what is the insurance policy? Let’s understand the concept of insurance, basic features and benefits offered by various types of insurance.

Insurance definition/ insurance meaning

Insurance is a legal contract between two parties –individual or entity who receives financial protection (referred to as insured) and the insurance company that promises to compensate the losses (referred to as insurer) in return for the money (premium) paid by the insured. In simple words, insurance provides protection

Basically, the concept of insurance is to spread the risk of an individual or an entity among larger society. Insurance is a risk management mechanism wherein you transfer your risk to the insurance company by paying them the premium.

How does insurance work?

When you buy an insurance policy, you make regular payments to the insurance company for the amount of risk cover that you seek. Insurance companies pool the money paid like this by individuals and entities and then use them to compensate for the losses and damages arising out of insured events. Though it looks simple, insurance is a complex business. To understand about insurance contract, you need to be aware of its components, jargons and terminologies used in the contract.

Let’s take a look at some of the important insurance jargons.

  • Insurer: Insurer is the party in the insurance contract who underwrites an insurance risk or the one who provides you with the financial coverage during an unforeseen event
  • Insured: Insured is the party in the insurance contract whose interests are protected by the policy
  • Insurable interest: Insurable interest is the prerequisite for every insurance policy. A person or entity seeking insurance has an insurable interest in the subject matter when any damage or loss would impact in financial hardship
  • Beneficiary: An individual who is eligible to receive the insurance proceeds if the insured person dies
  • Sum insured: Sum insured is the maximum amount that the insurance company will pay you if the insured event takes place
  • Co-payment: Co-payment of copay is a fixed amount or a percentage of the claim amount that insured needs to pay before the insurer compensates the remaining.
  • Deductible: Deductible is the pre-decided portion of the loss that is paid by the insured.

Types of insurance

There are various insurance products available in the market. List of insurance types is non-exhaustive. However, insurance policies are broadly categorised as follows:

Types of insurance

What is life insurance?

Life insurance is an insurance contract wherein the insurance company promises to pay a designated beneficiary a sum of money (sum assured) in exchange for a premium in the event of insured’s death. The life insurance plan provides coverage for a specific period. Apart from term insurance, which is a pure form of insurance, there are many variants in life insurance that also come with savings element attached to it.

Importance of life insurance

Life insurance is one of the most important financial products in your portfolio. Following are some of the major reasons for which you need life insurance cover.

  • To avail future financial security for your loved ones even when you are not around
  • To secure your children’s future educational and other needs
  • For your family to deal with unpaid debts in your absence
  • To save for your golden years through pension plans
  • To achieve your long-term financial goals by way of disciplined investments into an endowment or unit-linked insurance plans.
  • To avail tax benefits under Section 80C of the Income Tax Act

Advantage of life insurance

Life insurance products come with numerous benefits depending on the policy that you avail. Here are the key benefits offered by life insurance plans or investments:

  • Safety and security: Death is unavoidable. But, unfortunate events like death can have a financially devastating impact on dependants. Life insurance provides the needed protection during the demise of the family of the insured. The lump-sum amount can help the family achieve financial stability. Ultimately, by protecting the loved one’s life insurance gives you peace of mind.
  • Wealth creation: Life insurance plans like money back plans, endowment plans and unit-linked investment plans come with ‘investment’ component attached to it. This helps you in building wealth for you and your family’s future.
  • Tax benefits: Life insurance is one such financial product that gets favourable tax treatment. The premiums you pay towards life insurance policy qualifies for tax deduction under Section 80C of the Income Tax Act, thus help you save tax. Lump-sum proceeds of life insurance are free from income tax under Section 10 (10D) of the Income Tax Act.

What is general insurance?

General insurance is an insurance contract that does not come under the scope of life insurance. General insurance gives protection for the things we value such as our health, vehicles, home, business and many other things. There are various types of general insurance products available to provide protection against every possible risk.

Importance of general insurance

General insurance is important to lead a risk-free life. Risk is associated with everything that we own and value such as home, bike, car and business. Also, health is our true wealth. It’s important to protect our health also. Following are the reasons that make general insurance an important need.

  • To avail protection for your valuable assets against man-made and natural calamities
  • Insurance keeps you financially prepared for any kind of mishaps
  • Insurance for your business helps you maximise the profit and continue to grow without hassles
  • It’s important to be insured to deal with emergencies effectively.

Advantage of general insurance

There are a variety of general insurance products available in the market to cover numerous risks and uncertainties. Following are some of the common benefits offered by general insurance plans:

  • Provides financial security for your health and assets during unforeseen events
  • Lowers your tax burden by way of tax benefits and reliefs
  • General insurance provides coverage against a wide array of risks and helps you deal with contingencies effectively and efficiently.

The process to apply for insurance

Insurance plans based on your need can be bought online instantly. It is quite easy and simple to buy insurance through Turtlemint. Following are the simple steps to buy insurance online:

  • Log on to Turtlemint home page
  • Choose the category of insurance
  • Once you click on the category, various types of insurance available are displayed. For example, if you choose ‘life insurance’ category types of life insurance plans available will be displayed
  • Select the type of plan you are looking for
  • 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
  • Once you submit the profile details, a wide range of plans available for the particular type of insurance you have chosen will be displayed
  • You can compare the plans of various insurance companies on the side by side basis and select the right one as per your needs
  • Once you choose the right plan, provide the relevant details and continue to make payment

That’s it! Details needed may differ depending on the insurance type you are buying.

Frequently Asked Questions

  1. What is whole life insurance policy?Whole life insurance policy is a policy that gives you life-long protection along with building cash value. A portion of the premium that you pay is used for building cash value. The policy will remain in force as long as the insured is alive.
  2. What is underwriting in insurance?Underwriting in insurance is the process of assessing the risk based on various factors surrounding the subject matter to be insured. For example, in life insurance policies risk is assessed based on age, health history, medical reports and many more.
  3. What is the free-look period in insurance?Free-look period is the time given by insurance companies to the new policyholders to cancel the policy without any penalties if the policyholder is not satisfied with the terms and conditions. However, the reason needs to be stated for the cancellation of the policy.
  4. What is the period of general insurance policies?Generally, most of the general insurance policies are for one year. And the policies are renewable on an annual basis.
  5. Are natural calamities covered under motor insurance?Yes. Any damage or loss caused to the vehicle due to natural calamities such as flood, earthquake, cyclone, tempest, landslide and rockslide etc. is covered.

Top 15 Life Insurance Companies in India: Updated List (2021)

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 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 recognised 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 a few insurance-related fields and let our system suggest the 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 to avail 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 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 stabilise the finances. With insurance, your family is financially secure even when you are not around.
  2. Insurance safeguards you and your family’s future goals:
    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 the 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 encourage 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 1381 satellite offices. Currently, LIC’s total asset under management is 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 awards. 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 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 are 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 corporate and Mitsui Sumitomo Insurance Company, a Japanese Insurance Company. It is one of the fastest-growing insurance companies in India and Max Life’s asset under management has now touched the mark of INR 50,000 crores. Max Life has a customer base of more than 30 lakhs. With strong online presence, wide portfolio of products, multi-distribution channel and 1090 offices across the country, Max Life Insurance Company provides high-quality customer services. Max Life has been receiving awards and recognitions consistently. With 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, 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 412 branches and additional distribution touchpoints and bancassurance partners. With 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 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 company in India having its presence all over the country today with its strong bancassurance channel and multiple distribution channels. Total assets under management of the company are INR 1,604.10 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 has received ‘Life Insurance Company of the Year’ award at 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 ‘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 asset under management in 2019 is INR 28,430 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.

5. 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. 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 has a customer base of more than 10, 50,000. The company offers various plans starting from protection plan 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! 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

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, French multinational bank and financial services company. Currently, SBI Life Insurance has an authorised 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 the work in the field. Following are some of them:

  • SBI Life has won ‘Brand of the Year 2016-17’ award in the insurance category
  • SBI Life has won ‘Private Sector Life Insurance Company of the Year’ award at Fintelekt Insurance Awards
  • SBI Life has won ‘Bancassurance Leader, Life Insurance’ in large companies category.

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 727 branches. Reliance Life has a product for every possible need of the individual. Currently, the company’s assets under management is INR 20,281 Cr. The company has received many awards.

  • Reliance Life has received ‘Innovative Insurance Provider of the Year’ at ET BFSI Excellence Awards 2019
  • Reliance Life has received ‘Best Risk Innovation of the Year’ award
  • Reliance Life has won ‘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 the 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 ‘E-business Leaders Award’ at Indian Insurance Awards
  • AEGON Life has received ‘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 plan to savings and retirement plans. Online products, customer service and many more areas makes 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 coming together of Aditya Birla Group and Sun Life Financial, 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 plan to pension plan, savings plan and many new-age products. Total assets under management of the company is INR 4, 10,110 million. The company has its presence across the country with 425 branches, 9 bancassurance partners, 6 distribution channels and 85,000+ 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 the complete information about plans from Birla Sun Life 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 20 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. The company’s assets under management stands at INR 25,936 crore. 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 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 ‘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 for 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 the 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.

Frequently Asked Question (FAQs):

  1. What is the claim settlement ratio?
    Claim settlement ratio in insurance is a 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.
  1. What is life insurance?
    Life insurance is a legal agreement between two parties insured (policyholder) and the insurer (insurance company), wherein 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.
  1. 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.
  1. 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.

ULIP vs Mutual Funds: Similarities & differences

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

Let’s analyse ULIP vs Mutual Funds:

An overview of ULIPs:

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

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

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

An overview of Mutual Funds:

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

ULIP vs Mutual Funds:

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

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

Which one to choose: ULIP vs mutual fund?

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

ULIP vs Mutual Fund: When to invest in ULIP?

ULIPs would be a good choice in the following instances –

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

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

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

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

Questions to be asked before investing:

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

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

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

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

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

  • Choose ULIPs for your life goals

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

  • Buy term insurance for coverage needs

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

  • Choose mutual funds for investment returns

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

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

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

Third-Party Vs Comprehensive insurance: Which to opt for?

Traffic rules and regulations are laid down in the Motor Vehicles Act, 1988. The Act specifies the rules for driving on Indian roads for all types of vehicles. One such rule specified by the Act is the requirement of a valid insurance policy on the vehicle. The Act states that if a vehicle is to be used on Indian roads, the vehicle should have valid insurance coverage. This coverage would protect the interests of third parties if the vehicle causes them any type of harm.

Based on the directives of the Motor Vehicles Act, 1988, motor insurance policies are offered by general insurance companies. These policies fulfil the legal mandate of the Act and also help the vehicle owner deal with financial losses associated with the vehicle. Motor insurance policies come in two variants – third-party liability and comprehensive. Let’s understand these variants and the coverage that they offer:

Third-party liability insurance

A third-party liability policy covers any third party liability that you face in case of accidents involving your vehicle. These liabilities include the following –

  • If any individual is killed due to your vehicle, you face a financial liability
  • If any individual is physically hurt, injured or wounded due to your vehicle you face a financial liability
  • If you damage anyone’s property with your vehicle, you face a financial liability

    In case of any of these liabilities, the third party insurance policy kicks in. The policy pays the claims which you face freeing you from the financial strain. The Motor Vehicles Act, 1988 mandates every vehicle to have a third party liability insurance policy.

Comprehensive insurance

A comprehensive motor insurance policy is called a package policy because it has a wide scope of coverage. The policy covers the mandatory third-party liability which you face if any third party is harmed due to your vehicle. Moreover, the policy also covers damages suffered by your vehicle itself due to the following causes –

  • Man-made causes like fire, malicious acts, riots, etc.
  • Natural causes like earthquakes, lightning, floods, landslides, etc.
  • Theft of the vehicle
  • Damages suffered when the vehicle is being transported, etc.

    The policy, therefore, covers the mandatory third-party liability and also the damages suffered by the vehicle. It pays for the repair costs incurred when the vehicle is damaged and undergoes repairs. In case of theft also the policy pays a lump sum value and compensates the loss.

Difference between comprehensive and third party insurance

Here are the main differences between comprehensive and third party insurance plans –

Basis of difference Third-party insurance Comprehensive insurance
Coverage The policy covers only third party liability The policy covers both third-party liabilities as well as damages suffered by the vehicle itself
Determination of premium The premiums of third party plans are fixed by the Insurance Regulatory and Development Authority of India (IRDAI). The premiums are, therefore, fixed across all vehicle insurance plans across different companies. The premiums are determined by the insurance company itself. The premiums, therefore, vary across different insurance companies.
Rate of premium The premium is low and affordable Premiums of comprehensive insurance plans are higher than third party liability plans. This is because comprehensive plans have a wider scope of coverage than third party liability plans.
Claim payable In the case of third party liability claims, the claims depend on the rulings of motor accidents tribunal. In case of death, there is an unlimited liability. The insurance company pays the amount decided by the tribunal. In case of property damage claims, though, there is a coverage limit. The claims under comprehensive insurance policies depend on the type of claim. Third-party claims are paid according to the ruling of the tribunal. In case of damages suffered by the vehicle, the actual repair costs are paid. The maximum claim liability taken by the insurance company depends on the Insured Declared Value of the vehicle which is also the value of the insurance policy. In case of theft, the Insured Declared Value is paid.
Add-ons Third-party policies offer only the basic coverage against third-party liability. No add-ons are available under the plan. You can buy additional coverage options called add-ons under a comprehensive policy by paying an additional premium
No claim bonus If no claim is made in any policy year, the policy does not pay any benefit If no claim is made in a policy year you earn a no claim bonus. This bonus is awarded as a discount in the renewal premium. Moreover, the no claim bonus also increases after each successive claim-free year.

Which policy to buy- third party or comprehensive?

Third-party policies have lower premiums and they also fulfil the legal requirement of a valid insurance cover. That is why many vehicle owners prefer a third party policy. However, the policy does not cover the damages suffered by the vehicle itself or the theft of the vehicle. In case your vehicle is damaged you would face very high costs of repairs. These costs might take a toll on your finances and so having a comprehensive policy is better. Moreover, in case of theft of the vehicle, you would incur a substantial financial loss. A comprehensive policy covers this loss and gives you financial assistance in such situations. While it is true that the premiums for comprehensive plans are higher, the coverage benefits far outweigh the premium cost.

A third party policy might prove suitable if your vehicle is very old or if you don’t use it very frequently. Otherwise, a comprehensive policy is recommended to cover all the possible instances of financial loss suffered due to your vehicle. So, understand the difference between comprehensive and third party insurance policies to know the coverage that you can get under different types of motor insurance plans. Also, consider the advantages of having a comprehensive motor insurance cover and choose it over third party insurance plans for financial security.

Comparing Government Health Insurance Schemes for Senior Citizens

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 age 60 year to 80 years (policy can be continued up to 90 years if renewed without break)
      Renewability Up to 90 years
      Sum insured INR 1 lakh to INR 1.5 lakhs
      Waiting period for a pre-existing illness 18 months
      Pre-acceptance health check-up Required
      Co-payment No 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 age 60 years and above
      Renewability Life long
      Sum insured INR 1 lakh/2lakhs/3 lakhs/4 lakhs/5 lakhs
      Waiting period for a pre-existing illness 24 months
      Pre-acceptance health check-up Required
      Co-payment 20% 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 age 60 years to 80 years
      Renewability Life long
      Sum insured INR 1 lakh and INR 2 lakhs
      Waiting period for a pre-existing illness 12 months
      Pre-acceptance health check-up Not required if the insured is covered by any
      health insurance plan for the last three years
      Co-payment 10% 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 age 61 years to 80 years
      Renewability Life long
      Sum insured INR 1 lakh and INR 3 lakhs
      Waiting period for a pre-existing illness 48 months
      Pre-acceptance health check-up Required
      Co-payment 20% 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:

    Description The maximum premium for self, spouse and dependent children The maximum premium for parents Total deductions available under Section 80D of the IT Act
    All members of the family < 60 years of age INR 25,000 INR 25,000 INR 50,000
    Self, spouse and children < 60 years age and either of the parents > 60 years age INR 25,000 INR 50,000 INR 75,000
    Self > 60 years age Spouse and children < 60 years of age and both parents > 60 years age INR 50,000 INR 50,000 INR 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 Credit Insurance in India

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

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

What is credit insurance?

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

Types of credit insurance policies

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

  1. Credit life insurance

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

  1. Credit disability insurance

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

  1. Credit involuntary employment insurance

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

  1. Credit property insurance

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

  1. Trade credit insurance

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

Coverage under credit insurance plans

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

  1. Commercial risks

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

  1. Political risks

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

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

What is not covered under credit insurance?

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

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

How does credit insurance work?

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

Making a claim under credit insurance

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

Documents needed for credit insurance claims

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

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

Benefits of buying credit insurance plans

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

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

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

Frequently Asked Questions

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

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

  1. What is the exchange rate fluctuation?

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

Know all about Pradhan Mantri Vaya Vandana Yojana

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 mode Minimum pension Maximum pension
    Monthly INR 1000 INR 10,000
    Quarterly INR 3000 INR 30,000
    Half-yearly INR 6000 INR 60,000
    Annually INR 12,000 INR 120,000
  • The minimum and maximum investment amount depending on the pension payment mode that you select. The amounts are as follows –
  • Pension payment mode Minimum investment required Maximum investment allowed
    Monthly INR 150,000 INR 15,00,000
    Quarterly INR 149,068 INR 14,90,684
    Half-yearly INR 147,601 INR 14,76,014
    Annually INR 144,578 INR 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.

The contributory pension scheme in the National Pension System

Having a source of income post-retirement is necessary so that you can live a financially independent life. That is why many of you invest in retirement oriented funds when you are working so that when you retire you would have created a retirement corpus for yourself. Salaried employees have the benefit of EPF (Employees’ Provident Fund) contributions which help them create a regular corpus. The general public can invest in PPF (Public Provident Fund) and create a retirement fund. Moreover, the Government also introduced the National Pension System which gives you an additional avenue to save for retirement. Here’s how the scheme was introduced –

History of National Pension System

National Pension System was initially launched by the Central Government as a defined contribution oriented pension scheme. The scheme was implemented from 1st January 2004 through a notification titled Ministry of Finance (Department of Economic Affairs) OM Number 5/7/2003 PR dated 22/12/2003. The National Pension System was introduced as a contributory pension scheme. It was applicable to the employees of the Central Government and it allowed them to create a retirement corpus. However, later on in the year 2009, the scheme was opened to the general public as well. Today, even you can invest in the NPS scheme and create a retirement fund for yourself.

The concept of contributory pension scheme

Though the National Pension System is available to all types of investors, for employees of the Central Government the scheme is still a contributory pension scheme. A contributory pension scheme is one wherein the employee has to contribute a fixed part of his salary towards the investment scheme and the employer also contributes an equal amount to build up a corpus. Under the National Pension System, the Government employees who have joined service on or after 1st January 2004 have to mandatorily contribute 10% of their basic pay plus Dearness Allowance towards the National Pension System. The Government also makes an equal contribution to the contributory pension scheme. The contributions of both the employee and the Government, therefore, help in creating a sound retirement corpus.

How does the defined contributory pension scheme work?

Under the defined contributory pension scheme, 10% of the basic pay and dearness allowance of Government employees is deducted and credited to the National Pension System. The Government also contributes an equal amount. The contributions are credited to the investment account of the National Pension System (NPS). There are two types of NPS accounts which are as follows –

  1. Tier I Account

    Tier I Account is the mandatory investment account into which Government employees have to contribute. The Government also contributes towards Tier I Account. This account does not allow partial withdrawals except in specified circumstances. The account matures when the employee attains 60 years of age.

  1. Tier II Account

    Investments in Tier-II Account are not mandatory. An employee can invest in Tier-II Account only if he has invested in Tier I Account. The Government does not make any contributions to the Tier II Account. This account allows free withdrawals anytime that you want. You can also redeem the total fund value of this account before reaching 60 years of age.

  2. Who is eligible for contributory pension scheme?

    Employees of the Central Government who have joined employment on or after 1st January 2004 are eligible to join the contributory pension scheme of NPS. Employees in the armed forces, however, are exempted from the rule.

    Management of the contributory pension scheme

    The contributory pension scheme under NPS is managed by various entities which are as follows –

    1. PFRDA

      PFRDA stands for Pension Fund Regulatory and Development Authority. PFRDA is the main entity which governs the working of the NPS scheme.

    1. Central Recordkeeping Agencies (CRAs)

      CRA is the agency which maintains the records of NPS subscribers, administers the scheme and provides customer care services. The National Securities Depository Limited (NSDL) acts as the CRA of NPS scheme.

    1. Pension Fund Managers (PFM)

      PFMs are companies which manage the investment of the pension funds accumulated under the contributory pension scheme. Since NPS is a market-linked investment avenue, PFMs invest the employees’ money in different types of assets which can be fixed-income instruments or equity investments. They give the employees three investment schemes called A, B and C and each scheme has a different asset allocation. The employees can choose their preferred investment scheme depending on their risk profile and the contributed pension is then invested as per the chosen scheme.

    1. Annuity Service Providers (ASPs)

      ASPs are insurance companies from which you can avail annuity payments after the NPS investment matures.

Withdrawal from NPS scheme

  1. On maturity

    Government employees who mandatorily contribute towards the contributory pension scheme of NPS can exit from the scheme after they attain 60 years of age. At that age, the scheme matures. On maturity, 60% of the accumulated corpus can be received in a lump sum. This lump sum amount would be tax-free and you can decide how to use the amount. However, the remaining 40% of the corpus is mandatorily used to receive annuities. You can choose any of the authorised ASPs to receive annuity payments from 40% of the corpus that you get. These annuities would, however, be considered as an income and would be taxed at your income tax slab rates.

  1. Before maturity

    If, on the other hand, a Government employee leaves the scheme before attaining 60 years of age, 80% of the accumulated fund value would be paid in annuities and the remaining 20% can be withdrawn in a lump sum. The lump-sum amount of 20% would be tax-free but the annuities received from 80% of the corpus would be taxed at the applicable income tax rates.

  1. On death or discharge from service

    If the Government employee dies or is discharged from Government service, the NPS fund created through the contributory pension scheme can be used to receive benefits either under the NPS scheme or the pension scheme which existed before NPS.

    Central Government employees are, therefore, mandatorily covered under the NPS scheme. For them, however, the contributory pension scheme is applicable where they and the Government both contribute a specified portion of the salary towards Tier I Account of the NPS scheme. This account, then, creates a retirement corpus and also promises pension payments after the employee retires from Government service.

Frequently Asked Questions

  1. I am not a Government servant. Would I have to open an NPS account?

    No, NPS investment is not mandatory for employees who do not work in the Central Government. So, you don’t have to open an NPS account. However, you can choose to do so if you want to create a retirement corpus for yourself.

  1. Is the Tier II contribution defined?

    No, defined contribution is only applicable for Tier I. Government employees can invest in Tier-II Account as per their discretion. Such investments are neither mandatory nor defined.

  1. What are the instances wherein withdrawals from Tier I Account are permitted?

    Withdrawals from Tier I Account are permitted only for meeting specific costs like marriage related costs, education costs, buying a house, medical costs, unemployment, etc.

  1. Will the Government contribute to the NPS scheme if I am not a Government employee?

    No, the Government’s defined contribution is available only for the employees of the Government. If you are not an employee, the Government would not contribute towards your NPS account.

A complete list of Insurance Companies in India

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

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

Life Insurance Companies in India

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

Serial Number Life Insurance Company Name Claim Settlement Ratio
1 Life Insurance Corporation of India 98.04%
2 HDFC Life Insurance Company Limited 97.80%
3 Max Life Insurance Company Limited 98.26%
4 ICICI Prudential Life Insurance Company Limited 97.88%
5 Kotak Mahindra Life Insurance Company Limited 93.72%
6 Aditya Birla Sun Life Insurance Company Limited 96.38%
7 TATA AIA Life Insurance Company Limited 98.00%
8 SBI Life Insurance Company Limited 96.76%
9 Exide Life Insurance Company Limited 96.81%
10 Bajaj Allianz Life Insurance Company Limited 92.04%
11 PNB MetLife Life Insurance Company Limited 91.12%
12 Reliance Nippon Life Insurance Company Limited 95.17%
13 Aviva Life Insurance Company Limited 94.45%
14 Sahara India Life Insurance Company Limited 82.74%
15 Shriram Life Insurance Company Limited 80.23%
16 Bharti AXA Life Insurance Company Limited 96.85%
17 Future Generali Life Insurance Company Limited 93.11%
18 IDBI Federal Life Insurance Company Limited 91.99%
19 Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited 95.22%
20 Aegon Life Insurance Company Limited 95.87%
21 DHFL Pramerica Life Insurance Company Limited 96.82%
22 Star Union Dai-Ichi Life Insurance Company Limited 92.28%
23 IndiaFirst Life Insurance Company Limited 89.83%
24 Edelweiss Tokio Life Insurance Company Limited 95.24%

Life Insurance Companies in India – An Overview

  1. Life Insurance Corporation of India

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

  1. HDFC Life Insurance Company Limited

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

  1. Max Life Insurance Company Limited

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

  1. ICICI Prudential Life Insurance Company Limited

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

  1. Kotak Mahindra Life Insurance Company Limited

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

  1. Aditya Birla Sun Life Insurance Company Limited

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

  1. TATA AIA Life Insurance Company Limited

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

  1. SBI Life Insurance Company Limited

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

  1. Exide Life Insurance Company Limited

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

  1. Bajaj Allianz Life Insurance Company Limited

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

  1. PNB MetLife Life Insurance Company Limited

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

  1. Reliance Nippon Life Insurance Company Limited

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

  1. Aviva Life Insurance Company Limited

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

  1. Sahara India Life Insurance Company Limited

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

  1. Shriram Life Insurance Company Limited

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

  1. Bharti AXA Life Insurance Company Limited

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

  1. Future Generali Life Insurance Company Limited

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

  1. IDBI Federal Life Insurance Company Limited

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

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

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

  1. Aegon Life Insurance Company Limited

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

  1. DHFL Pramerica Life Insurance Company Limited

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

  1. Star Union Dai-Ichi Life Insurance Company Limited

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

  1. IndiaFirst Life Insurance Company Limited

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

  1. Edelweiss Tokio Life Insurance Company Limited

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

General Insurance Companies in India

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

Serial Number General Insurance Company Name Claim Settlement Ratio
1 Acko General Insurance Company Limited -28.69%
2 Aditya Birla Health Insurance Company Limited 89.05%
3 Agriculture Insurance Company of India Limited 102.23%
4 Apollo Munich Health Insurance Company Limited 62.47%
5 Bajaj Allianz General Insurance Company Limited 66.72%
6 Bharti AXA General Insurance Company Limited 82.97%
7 Cholamandalam MS General Insurance Company Limited 72.54%
8 Manipal Cigna Health Insurance Company Limited 46.29%
9 DHFL General Insurance Limited 4.09%
10 Edelweiss General Insurance Company Limited 70.09%
11 ECGC Limited 135.67%
12 Future Generali India Insurance Company Limited 75.72%
13 Go Digit General Insurance Limited 93.95%
14 HDFC ERGO General Insurance Company Limited 74.36%
15 ICICI Lombard General Insurance Company Limited 76.89%
16 IFFCO TOKIO General Insurance Company Limited 82.89%
17 Kotak Mahindra General Insurance Company Limited 71.66%
18 Liberty General Insurance Limited 69.60%
19 Magma HDI General Insurance Company Limited 82.92%
20 Max Bupa Health Insurance Company Limited 50.19%
21 National Insurance Company Limited 114.24%
22 Raheja QBE General Insurance Company Limited 76.46%
23 Reliance General Insurance Company Limited 84.71%
24 Reliance Health Insurance Limited 106.54%
25 Religare Health Insurance Company Limited 51.97%
26 Royal Sundaram General Insurance Company Limited 80.41%
27 SBI General Insurance Company Limited 71.47%
28 Shriram General Insurance Company Limited 93.75%
29 Star Health & Allied Insurance Company Limited 81.78%
30 Tata AIG General Insurance Company Limited 71.12%
31 The New India Assurance Company Limited 85.66%
32 The Oriental Insurance Company Limited 85.39%
33 United India Insurance Company Limited 94.38%
34 Universal Sompo General Insurance Company Limited 56.30%

Source: IRDAI Annual Report

General Insurance Companies in India – an Overview

  1. Acko General Insurance Company Limited

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

  1. Aditya Birla Health Insurance Company Limited

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

  1. Agriculture Insurance Company of India Limited

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

  1. Apollo Munich Health Insurance Company Limited

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

  1. Bajaj Allianz General Insurance Company Limited

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

  1. Bharti AXA General Insurance Company Limited

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

  1. Cholamandalam MS General Insurance Company Limited

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

  1. Manipal Cigna Health Insurance Company Limited

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

  1. DHFL General Insurance Limited

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

  1. Edelweiss General Insurance Company Limited

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

  1. ECGC Limited

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

  1. Future Generali India Insurance Company Limited

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

  1. Go Digit General Insurance Limited

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

  1. HDFC ERGO General Insurance Company Limited

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

  1. ICICI Lombard General Insurance Company Limited

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

  1. IFFCO TOKIO General Insurance Company Limited

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

  1. Kotak Mahindra General Insurance Company Limited

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

  1. Liberty General Insurance Limited

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

  1. Magma HDI General Insurance Company Limited

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

  1. Max Bupa Health Insurance Company Limited

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

  1. National Insurance Company Limited.

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

  1. Raheja QBE General Insurance Company Limited

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

  1. Reliance General Insurance Company Limited

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

  1. Reliance Health Insurance Limited

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

  1. Religare Health Insurance Company Limited

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

  1. Royal Sundaram General Insurance Company Limited

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

  1. SBI General Insurance Company Limited

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

  1. Shriram General Insurance Company Limited

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

  1. Star Health & Allied Insurance Company Limited

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

  1. Tata AIG General Insurance Company Limited

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

  1. The New India Assurance Company Limited

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

  1. The Oriental Insurance Company Limited

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

  1. United India Insurance Company Limited

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

  1. Universal Sompo General Insurance Company Limited

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