‘Men are from Mars, Women are from Venus’, a best-selling book by John Gray, an American psychologist, talked about the psychological differences between men and women. The title of the book, however, has become a catchphrase to highlight the differences between men and women as a whole.
Women are definitely different from men, both in terms of their psychological needs as well as physiological ones. Then why is it believed that a basic health plan would be suitable for women too?
Women’s anatomy is different from men. They are prone to specific illnesses or ailments which men don’t suffer. For example, women suffer pregnancy related complications, breast cancer, cancer of the reproductive system, degradation of bones resulting in osteoporosis, etc. As such, women need a comprehensive health insurance policy which specifically covers these women-centric illnesses. But is this what women get?
Trends in health insurance for women
When it comes to covering women under a health insurance plan, the answer is most commonly a family floater policy. The policy provides coverage to all family members, including women. Additionally, if women are employed, they might also have a group health scheme sponsored by their employers.
Though women enjoy coverage under group or family floater plans, such coverage might not be comprehensive enough to cover them against illnesses that they specifically suffer. For example, most group health plans do not cover maternity.
Health insurance for women – what women want?
For the woman of today, the following coverage benefits are a must –
- Critical illness
- Other minor illnesses that they suffer
If a health insurance plan offers these coverage benefits, women can avail of quality healthcare facilities without worrying about affording the same.
So, for empowering women through health insurance, here’s what should be done –
- Enhancing the coverage of an existing family floater plan
If there is a family floater policy that covers the women of the family, a review of the coverage is a must. You should check if the coverage is sufficient to provide an all-round coverage to women. The health insurance policy should be rejigged to provide coverage for the following –
- Maternity related expenses and complications suffered during pregnancy if family planning is on the near horizon
- Opting for a critical illness rider at the time of renewals
- Enhancing the sum insured of the policy for optimal coverage
If your existing policy does not provide maternity and/or critical illness coverage, you can always port to another, more comprehensive plan. Ensure the sum insured is at least INR 10 lakhs and above so that the plan covers the medical bills optimally.
- Buying a new comprehensive plan
If you do not have a health insurance plan altogether, buy a comprehensive coverage ASAP. Ensure the coverage has maternity cover, optimal sum insured and the critical illness rider. You can opt for an independent women-centric health plan or a family floater policy for covering the entire family.
- Buying a standalone critical illness policy
If the critical illness rider is not available or if you want to opt for a comprehensive coverage against critical illnesses, a standalone critical illness policy would be better. You can opt for a women-specific critical illness policy that covers women-related illnesses like the different types of cancers, burns, etc. The policy has affordable premium allowing you to opt for an optimal coverage amount.
- Buying a super top-up policy
An optimal sum insured is a must. This fact cannot be stressed enough especially if you look at the rising costs of medical treatments. So, whether you buy a family floater policy or an independent plan, choose a high sum insured. If affording the premium becomes a concern, go for super top-up health insurance plans. Super top-up plans help in increasing the coverage at very affordable premiums. Choose a deduction that matches the sum insured of the base policy. This way, claims up to the deductible would be covered by the base policy while claims exceeding the deductible would be covered by the super top-up plan.
Empowering women through health insurance – the road ahead
The healthcare needs of women require specialized coverage. If your normal health insurance policy is not equipped to provide the coverage that women need, it’s time for a change. Women are caregivers but they need care too. Empower women with a suitable health insurance policy that would take care of their medical needs. If you are a woman yourself, it’s time to take action. Invest in a suitable health insurance policy that provides an all-round coverage for your needs and take the next step towards financial empowerment.
Life insurance plans are a great tax saving tool. Besides providing financial security against the risk of premature death, life insurance plans allow you to save tax on the premium that you pay as well as earn tax-free benefits. Unit linked insurance plans provide investors with a good mix of investment returns, insurance coverage and tax-saving benefits. However, in the latest Union Budget 2021, the Finance Minister, Mrs. Nirmala Sitharaman, made ULIPs taxable in certain cases. Do you know the latest tax implication on ULIPs?
Before we jump to the new changes, let’s brush up on the existing tax benefits that ULIPs provided policyholders –
- Tax benefit under Section 80C
Premiums paid towards ULIPs, except pension ULIPs, are allowed as a tax-free deduction under Section 80C of the Income Tax Act, 1961. The maximum deduction available under this Section is INR 1.5 lakhs.
- Tax benefit under Section 80CCC
Premiums paid towards a deferred pension ULIP plan are allowed as a deduction under this Section. The limit is INR 1.5 lakhs that includes the limit under Section 80C as well.
- Tax benefit under Section 10(10A)
On maturity of a deferred pension ULIP plan, you can withdraw up to 60% of the accumulated corpus in lump sum. Technically, this withdrawal is called the commutation of pension. Up to 33% of the withdrawn corpus is allowed as a tax-free benefit under this Section.
- Tax benefit under Section 10(10D)
This section is relevant for maturity proceeds received from the ULIP plan. If the premium that you paid for the policy did not exceed 10% of the sum assured (20% for policies issued on or before 31st March 2012), the maturity proceeds would be tax-free.
Besides these benefits, partial withdrawals, premium redirections and switching are also tax-free under ULIPs.
What has changed?
A new provision has been introduced in the Union Budget 2021 regarding the taxation of ULIPs. As per the new rule, if the aggregate premium exceeds INR 2.5 lakhs, ULIPs would attract long term equity taxation. That means, if the returns earned from ULIPs exceed INR 1 lakh, the excess returns would be taxed @10% under Section 112A of the Income Tax Act, 1961. If the ULIP is held for less than 12 months, the returns earned would be considered a short-term capital gain and would be taxed @15%. That being said, since ULIPs have a lock-in period of five years, short term capital gains would become irrelevant.
Here are some important rules to remember with respect to the latest tax implication on ULIPs –
- The new tax rule would be applicable on new plans that you buy on or after 1st February 2021. For existing unit linked plans, the rule would not be applicable and you can enjoy full tax benefits
- If you invest in multiple unit linked plans, the aggregate premium of all the plans would be considered against the threshold limit of INR 2.5 lakhs
- The death benefit would always be tax-free irrespective of the premium amount
- The new tax rule would be applicable only on the maturity benefit
- The tax benefit on premium would be allowed under Section 80C and 80CCC
So, the next time you are investing in ULIPs and you are paying a high premium, remember the new tax rules to assess your tax liability on maturity. Also, remember that your premiums would still be allowed as a deduction and so, you can invest in ULIPs for saving taxes on the amount you invest. Invest in ULIPs, despite the tax implication, because you can earn investment returns while at the same time enjoying insurance coverage, a benefit that is not available under other investment avenues.
The Insurance Regulatory and Development Authority of India (IRDAI) continuously makes changes in insurance plans to make them relevant to the changing dynamics of the market. Recently, with respect to motor insurance plans, IRDAI appointed a working committee to draft a proposal which would link your driving history to your motor insurance premium. Let’s have a look at what the committee has proposed.
Proposals of the working committee
- A new section called the ‘Traffic Violation Premium’ (TVP) would be inserted into a motor insurance policy’s premium break-up. This section would record additional premium payable depending on your history of traffic violation
- The TVP section would be included in both comprehensive and third party liability plans
- The history of traffic violations over the last two years would be considered
- In case of new vehicles, the TVP would be applicable from renewal
- In case of second-hand vehicles, the TVP would be calculated after the vehicle has been sold to another individual. It would be applicable at the time of renewals
- Even if you give your vehicle to another individual, any offence committed by another driver would reflect on your policy premium
How would be the TVP calculated?
To calculate the Traffic Violation Premium payable by you, a point system would be devised. There would be specific points for a specific violation. For example, according to the draft designed by the committee, 100 points would be allotted for drunk driving while wrong parking attracts only 10 points. The points would keep on accumulating over the policy year for the violations that you make. On renewal, the points would be aggregated. If you have up to 20 points, additional premium would not be charged. However, if your points are 21 or more you would have to pay the additional Traffic Violation Premium.
For two-wheelers, the additional Traffic Violation Premium ranges between INR 100 and INR 750 while for four-wheelers, both private and commercial, the premium can range between INR 300 and INR 1500.
How would the system work?
The committee stated that the Insurance Information Bureau (IIB) would co-ordinate with the traffic police of different States as well as the National Informatics Centre. The IIB would collect the data of traffic violation and calculate the violation points of every vehicle. This information would, then, be shared with general insurance companies offering motor insurance policies so that they can charge the Traffic Violation Premium when they issue the policy for the respective vehicle.
Objective behind this move
The main objective behind implementing the concept of Traffic Violation Premium is to make individuals aware about traffic rules. This move is expected to reduce traffic violations and make Indian roads safer. The additional premium would discourage traffic offenders who manage to dodge traffic penalties as their insurance policy would become expensive for their habits.
In many foreign countries, the motor insurance premium is linked to the driver’s driving history and by bringing this system in India, IRDAI is trying to match motor insurance policies with international standards.
What it means for you, the customer?
As a customer, you can benefit from a reduction in premium if you have a clean record. Though the committee has not mentioned it in their proposal, experts believe that insurance companies would give good drivers a discount in their premium while penalizing offenders. So, if you clear your driving history, you can benefit from reduced motor insurance premiums.
Though the proposal is still in the development stages, it is expected to be rolled out, on a pilot basis, in National Capital Territory Delhi. So, let’s see when and how the proposal unfolds but for now, try and avoid traffic violations as much as you can. If the proposal is implemented, your traffic history would increase your premium.
Millennials have become aware about the importance of a health insurance policy. They understand the need of a financial cover if medical emergencies strike and so, they are investing in a health plan for themselves as well as their family. Health insurance, however, is a technical cover and so, here is a simple guide to the policy if you are thinking of investing in it –
- There are different types of plans
Health insurance is not only available for covering your medical bills in case of hospitalisation, there are different plans that you can avail of for comprehensive coverage. Besides the basic plan for covering hospitalisation, you can buy critical illness cover for protecting against major illnesses. Then there are COVID plans if you are worried about being infected. So, expand your coverage. Opt for other plans and build a layered coverage against medical contingencies.
- Check for sub-limits
Some health insurance plans impose room rent sub-limits which restrict your coverage. Check for these sub-limits. Try and avoid plans which have such limits because your claim would be considerably affected if the actual amount exceeds the limit. Moreover, there are coverage limits on various benefits like ambulance costs, maternity expenses, AYUSH coverage, domiciliary treatment, etc. Check the limits when buying and try and opt for a plan which has a higher coverage limit so that your out-of-pocket expenses reduce.
- Riders are beneficial
Health insurance plans allow optional riders that you can choose by paying an additional premium. Riders like critical illness cover, maternity and new born cover (if you are planning a family), personal accident cover, etc. make for good coverage additions as they provide a wider scope of coverage. So, look for the available riders and try and add them for an inclusive coverage in your policy.
- A healthy lifestyle is rewarding
Modern day health insurance plans reward you for living a healthy life. Daily exercising, walking, meditation, Yoga, balanced and nutritious meals, etc. not only keep you fit but also help in reducing your health insurance premium. So, if you are a health conscious millennial, use your healthy lifestyle to get rewarded under your health plan. If not, it’s time you adopt a healthy lifestyle, both for your health and your wallet.
- Insure parents separately
If you are buying a health insurance plan, try not to include your parents under the same cover. There are two reasons for this –
- Since your parents would be the eldest members, the premium would be calculated based on their age. This would drive up your health insurance cost
- If they make frequent claims on the policy, you would not be able to accumulate the no claim bonus
So, opt for a separate health plan for your parents and buy another plan for yourself. Besides ensuring a suitable coverage, you would also be able to avail additional tax benefits on the premium paid.
- Don’t depend on your group health plan only
If you are employed, your employer might provide you with a group health scheme. Though the plan provides the basic coverage, the coverage is limited and not customizable. Moreover, the coverage is available for as long as you are employed. Invest in an independent policy so that you can get optimal coverage that can also be renewed life-long.
Understand the basics of health insurance and invest in a suitable policy. You might be a modern age individual in the prime of your health but, remember, contingencies come unannounced. Prepare yourself against medical contingencies by investing in health insurance plans. Believe me, you would be thankful that you did!
Buying a health insurance policy is important to face the rising medical costs. Thankfully, this awareness is slowly spreading across the Indian population and people are investing in health insurance plans for financial protection. However, when it comes to buying health insurance, buying the right policy is important so that the policy delivers on your expectations. Your health insurance purchase decision should, therefore, be backed by careful consideration and research.
For simplifying the health insurance purchase process, here is a complete checklist which can guide you to buy the right plan –
- Choosing the right type of policy
Health insurance plans come in different variants. As such, the first step is to pick the right type of plan. Here are some tips to do so –
- If you don’t have health insurance coverage at all, buy a family floater health insurance plan.
- If you have a health plan but the coverage is low, you can opt for super top-up health insurance plans. These plans would help in increasing your coverage at affordable premiums
- Critical illness health insurance plans are also essential as they pay a lump sum benefit in a critical illness. Add these plans to your portfolio for added protection
After deciding on the type of policy, the next step is to choose an optimal sum insured. Remember that the health plan would cover you only up to the chosen sum insured. Given the high medical expenses, a high sum insured is essential. If the high premiums make a high sum insured difficult to avail of, go for super top-up plans and supplement your coverage. Whatever you do, ensure that your coverage is sufficient to cover the expensive medical treatments.
The next step is to ensure that all family members are being covered under the health insurance policy. Don’t leave any member out. For parents, opt for a separate senior citizen policy. Do not include them in your family floater policy as it would drive up the premium and eat into the no claim bonus. Moreover, a separate plan would also give you additional tax benefits. So, buy a floater plan covering yourself, spouse and dependent children and another plan for your parents.
You should ensure that the health insurance plan has all the necessary coverage features that you and your family needs. If, for instance, you would are planning to have a child in the near future, ensure that the plan allows maternity coverage. Similarly, if there are frequent consultations and outpatient treatments, check for OPD coverage. The plan’s coverage benefits should suit your coverage requirements so that all possible medical costs get covered.
Also, health plans allow optional coverage benefits too called riders or add-ons. Check the riders available in the plan. If the riders are suitable to your needs, add them to your basic plan for an enhanced coverage. For example, if you want coverage against critical illnesses and the plan offers the critical illness rider, choose the rider and get covered against critical illnesses. Similarly, the maternity cover can also be offered as a rider which you can choose if you would be planning a family in future.
Many health plans impose a sub-limit or restriction on their coverage benefits. The most common example is the room rent sub-limit. These sub-limits restrict the scope of coverage and incur out-of-pocket expenses. So, check the sub-limits applicable under the plan. Try and avoid plans with sub-limits, especially in case of room rent. Except room rent sub-limit, if there are other limits in the plan, like limit on ambulance cost, domiciliary treatments, AYUSH coverage, etc., check the extent of such limits. The higher the limit, the wider would be the scope of coverage.
Health plans allow no claim bonus if no claim is made in a policy year. This bonus can either be an increase in the sum insured or a reduction in the renewal premium. Check the bonus allowed. Try and opt for cumulative bonus which increases the sum insured free of cost.
Moreover, free health check-ups are also allowed either annually or after 2-4 continuous years. Look for the limits of such check-ups and their frequency.
For cashless claims you need to take treatments in a networked hospital. So, when buying health insurance, consider the hospital network list. Ensure that the hospitals in your city and locality are featured on the list so that you can avail easy cashless settlements in emergencies.
Knowing what is covered under the plan is not enough. You need to know what is not covered as well. Check the exclusion list of the policy to find out what the policy won’t cover. Check the pre-existing waiting period, especially if you or any family member suffers from a pre-existing condition, to know when such conditions would be covered by the plan.
Lastly, compare the premium charged by different health insurance plans when buying. Compare the premiums vis-à-vis the coverage benefits to ensure that you don’t miss out on the coverage while seeking out the lowest premium. Choose a plan which offers the widest scope of coverage at the lowest premium rate.
Tick off all the above-mentioned points when buying a health insurance policy. The checklist would ensure that you get a right policy which would cover you against medical eventualities. After all, if the plan is right, you get complete financial security, don’t you?
The year 2020 was in the news for the Coronavirus pandemic, an unprecedented event which rocked the whole world. While the world was reeling from lockdowns, infections and deaths, the insurance industry reinvented itself. The pandemic revolutionized both the products and practices of the insurance industry. Whether it was life insurance or health insurance, the industry witnessed standardization in products and digitization of operations. Let’s have a look at how the industry reinvented itself in 2020 –
Health insurance segment
The health insurance segment saw the launch of standardized insurance plans and policy clauses. Here’s a look at the major developments in the health insurance segment –
- The launch of the Arogya Sanjeevani policy
To offer uniform coverage benefits under a single plan, the Insurance Regulatory and Development Authority of India (IRDAI) asked insurers to launch a standard Arogya Sanjeevani policy. The policy allows coverage of up to INR 5 lakhs and has uniform coverage benefits across insurers. Only the premium differs based on the company’s pricing policies. The Arogya Sanjeevani policy, therefore, offers standardized coverage for someone looking for a basic health cover.
- Launch of COVID specific health plans
Understanding the need of coverage against COVID, the IRDAI introduced two standard COVID-oriented plans – Corona Kavach and Corona Rakshak. While the former is an indemnity oriented policy without deductibles or limits, the latter is a fixed benefit plan that pays the sum insured in lump sum in case of hospitalisation for 72 hours or more due to COVID. Both these plans are short-term plans that have standard coverage features. Like Arogya Sanjeevani, the premium for these policies differs across insurers.
- Inclusion of telemedicine
To ease up OPD consultations during the pandemic, IRDAI asked insurers to include coverage for telemedicine if the plan allowed OPD coverage. This made health plans more inclusive in their scope and also allowed policyholders to avail of digitized treatments without the risk of infection.
- Introduction of instalment premiums
To increase health insurance penetration and to make health plans affordable, the concept of instalment premium was launched. Now, policyholders can opt to pay premiums in monthly, quarterly or half-yearly instalments if the annual premium is too heavy on their pockets.
- Standardization of policy clauses
To ensure that policyholders understand the technical nature of their health insurance plans easily, IRDAI standardized various clauses. The concept of pre-existing illnesses, policy exclusions and proportionate deductible in room rent was simplified. An indisputability clause was added which limited the power of insurers to reject claims after 8 years of coverage. Moreover, the health insurance policy was made more comprehensive by the inclusion of mental illnesses and modern treatments under the purview of the plan.
These changes have made health insurance plans more customer-friendly which have also driven up the demand of these plans.
Life insurance segment
In the life insurance segment too, standardization and digitization were observed in insurance policies. The life insurance segment saw two major changes which are as follows –
- Elimination of wet signatures
In the time of social distancing and lockdowns, the need of physical signatures was replaced by digital signatures in proposal forms. Life insurance plans, thus, became digitized allowing customers to buy the policies without having to step out from their homes. Insurance companies resorted to video calls and email verification links to sell insurance policies entirely digitally so that the consumer’s needs could be met remotely.
- Introduction of a standard term plan
Following in the footsteps of the health insurance industry, the IRDAI introduced the concept of a standard term insurance plan called Saral Jeevan Bima. The idea of the plan was launched in 2020 though the plan itself was offered for sale from 1st January 2021. Saral Jeevan Bima, thus, became the first standard term plan, with uniform coverage benefits across insurers.
The year 2020 was, therefore, the year of standardization and digitization in the life and health insurance industry. It has paved the way for a more developed and consumer-friendly market so that insurance penetration in India increases over the coming years.
It is that time of the year again when all eyes are directed at the Union Budget which would be presented on 1st February 2020. As always, before the actual budget is delivered, industry experts make their assumptions on what possible changes are expected. This year is no different. With the last year largely overshadowed by the COVID-19 pandemic, the budget is expected to have considerable health reforms.
Health insurance has always been an important cover against the financial implications of a medical crisis. Many individuals have opted for the cover to protect their savings against expensive medical treatments. Moreover, over the last year, the pandemic highlighted the importance of having health insurance plans. With hospital bills amounting to lakhs in case of severe COVID cases, people woke up to the importance of a health insurance policy. Even the Insurance Regulatory and Development Authority of India (IRDAI) directed the launch of COVID specific health plans – Corona Kavach and Corona Rakshak – which found many takers.
From the tax angle, health insurance plans allow deduction on the premiums paid under Section 80D. The deduction limit is INR 25, 000 on a policy covering self, spouse and dependent children. Senior citizens, aged 60 years and above, can enjoy a deduction limit of INR 50, 000. Moreover, for buying a policy for parents, you can claim an additional deduction of up to INR 50, 000.
Earlier, the additional deduction for parents was INR 25, 000 but in an earlier budget, the limit was increased to INR 50, 000. Experts believe that this year, as the importance of health insurance has increased, the Finance Minister can come out with enhanced deduction limits. It is expected that the limit of deduction for individuals below 60 years of age would also be enhanced to INR 50, 000 from the current limit of INR 25, 000.
This limit enhancement would have two benefits –
- It would motivate buyers to opt for high coverage levels and opt for a comprehensive coverage
- It would drive the penetration of health insurance policies
Health insurance penetration in India is steadily increasing since 2015. From a 22% penetration in 2015, the number increased to 35.6% in 2018. (Source: Statista). However, the numbers are still not very impressive. For the penetration to cross the 50%-mark, aggressive reforms are needed, both by the health insurance segment as well as by the Government. While the health insurance segment is constantly reinventing itself, with better reforms in the 2020 budget, it is expected that the Government would also do its part.
What reforms would be proposed by the Government would be disclosed on 1st February 2020. Meanwhile, the outlook is positive about strong health reforms for the next financial year.
After almost a year of battling with the Coronavirus pandemic the vaccine for the illness has become a reality. Although the vaccine rollout program is still in its nascent stages, the road ahead is positive. Institutes and companies like Bharat Biotech, Pfizer and Serum Institute of India have already applied for the authorization to sell their vaccines in the market while the vaccine being developed by Zydus would be available by the end of the year 2021. Frontline warriors have already begun getting the vaccine shot and senior citizens have been registered for the same. What about the cost of such vaccination? Would it be covered under your health insurance policy?
If you are looking for a generic answer, the answer is ‘No’. The cost of vaccination forms a part of OPD expenses which are not covered by most health insurance policies, even COVID-specific health insurance plans. However, this is not the universal answer. In some cases the cost of the vaccination can be covered under the health insurance policy. Let’s find out how –
Case 1 – If vaccination is a part of inpatient hospitalization
If you are hospitalized for COVID and you get the vaccination shot as a part of treatment of the illness, the vaccination would be considered to be a part of your inpatient hospitalization treatment. In such cases, all health insurance plans would cover the cost of the vaccine.
Case 2 – If your policy has an OPD cover or you opted for one
Another situation in which the cost of the vaccine would be covered under your health insurance policy would be if you have OPD coverage in your health insurance plan. Though most health insurance plans do not allow coverage for OPD expenses, many policies have an inbuilt OPD coverage benefit. Moreover, many plans offer OPD coverage as an optional additional benefit. So, if your plan has OPD coverage as an inbuilt benefit or you have paid an additional premium to avail OPD coverage under the plan, the cost of vaccination would be covered.
However, under OPD coverage, here are a few points that you should remember –
- Plans with inbuilt OPD coverage might have higher premiums
- If you opt for OPD cover as an add-on, the premium would be increased
- OPD coverage is allowed up to a certain limit. If the cost of the vaccine is higher than the allowed coverage limit, you would incur out-of-pocket expenses
What should you do?
Check the coverage of your health insurance plan. If you are opting for elective vaccination and your plan does not have OPD coverage, you would have to bear the cost of the vaccine. Even if the plan has OPD coverage, check the coverage limit as you might incur additional costs on the vaccine. If, on the other hand, you are hospitalized for COVID and you get vaccinated, your health insurance plan would cover the cost of the vaccine.
So, the coverage for the cost of the vaccine depends on your health insurance plan and when is the vaccine administered. Even if the cost is not covered in your health insurance policy, it would not be too considerable to be affordable. Getting vaccinated against the pandemic is important, even if you have to pay from your pockets, isn’t it?
The digital age is moving at a tremendous speed and almost everything is now available online. When it comes to your important documents too, there is an online locker, called Digi Locker, wherein you can store all your important documents. Even for your insurance policies, the Insurance Regulatory and Development Authority of India (IRDAI) introduced the e-Insurance Account, called eIA in short some years back. However, the concept of the e-Insurance policy has not become so popular as there is a lack of awareness. So, let’s understand what e-Insurance is all about and how it can benefit you –
What is e-Insurance?
The concept of e-Insurance means storing your insurance policies in a digital format. Your insurance policies are stored in an account called the e-Insurance Account (eIA) in soft copies. The account is accessible through a user ID and password and these login credentials are issued to you once you open the account.
Opening of an e-Insurance Account
Four insurance repositories have been given the authority to open eIA for interested policyholders. These repositories are as follows –
- CAMS Repository Services Limited
- Central Insurance Repository Limited
- NSDL Database Management Limited
- Karvy Insurance Repository Limited
You can pick any one repository and open your e-Insurance Account online through its website. Alternatively, when buying the insurance policy, you can fill up the eIA account opening form and submit it with your documents to the insurance company. The company would, then, forward your documents to the insurance repository and your account would be opened. The documents needed to open an e-Insurance Account include the following –
- Address proof
- PAN card
- Date of birth proof
- Identity proof
- Aadhaar card
Opening of the eIA is completely free of cost and voluntary. Once you open an account, all your insurance policies would be stored in the account. Moreover, when you buy a new policy, you can simply provide the number of your e-Insurance Account and the digital copy of the policy would be stored automatically in your account after the policy is issued.
Benefits of an e-Insurance Account
There are many benefits of opening and operating an e-Insurance Account. These benefits include the following –
- Centralized database
The best part of having an e-Insurance Account is that all your insurance policies are stored at one place. Whether it is life insurance or general insurance, all the policies that you have bought in the past and would buy in the future would be stored in a centralized account. You would be able to access all the policies conveniently, whenever you want. Moreover, you would also be able to check the details of your policies, coverage start and end date, premium amount, renewal date, etc., through the e-Insurance Account.
Since your insurance policies are in a digitized format, there would be no scope of damage, misplacement or theft. Your policies would be stored safely for years and you can find them whenever you want. Moreover, the e-Insurance Account is accessible through a unique user ID and password that you hold with you. This makes it impossible for others to access your account and misuse your insurance details.
- Ease of servicing
If you want to make changes to your existing insurance policies, you can do so at once using the e-Insurance Account. You just have to change the details on the account and the details in all the policies would be changed automatically. For instance, say you want to change your contact number on your policies. Instead of changing the number individually in all plans, you can simply make the change on your eIA and the contact number would be updated in all your policies automatically.
- No need of KYC for new purchases
When you buy a new insurance policy, you don’t have to submit your KYC details again. You can just mention your eIA number and the KYC formalities would be done. Since your eIA is KYC verified, the insurance company would retrieve your KYC details from your account and use it to fulfil the KYC norms of the new policy.
- Tracking your plans
With a single e-Insurance Account you can track, monitor and review all your insurance policies easily. This also helps you assess your existing coverage and make changes in your policies if you want.
Moreover, since your insurance policies are stored digitally, it eliminates the need of physical copies and proves to be eco-friendly too.
So, understand what the e-Insurance Account is all about and open an account for storing your insurance policies. Convert your existing insurance plans to digital plans, free of cost, and store them in the e-Insurance Account. When you buy new plans, provide your eIA number and get the plans directly stored in your online account. Use the account for keeping a track of your insurance portfolio and manage your policies with ease and simplicity.