EMPLOYEES STATE INSURANCE

28 Haziran 2015 Pazar

The Employees� State insurance Act came into a  force in 1948, laying  the foundations  for a nationwide  comprehensive  social insurance program  the first of its kind in South East Asia. The scheme covers an integrated  system of social insurance wherein  the benefits include  cash payments  in the event of sickness, maternity, employments  injury benefits and pension  to the dependants, and medical  benefits  to the workers and their families  . From January 1997, an employees  is required  to contribute 4.75% of the payable and the employee 1.75% of the receivable  as the Employee�s state insurance Scheme  (ESIS)  contributions . Though offering  a comprehensive  social security scheme to all Indian citizens  from Kashmir to Kanyakumari  may be a far-fetchedc one , the  Government  as the first major step, announced  the launch of a comprehensive social security  scheme, under the Rajiv Gandhi Shramik Kalyan Yojana to  employees covered  under the ESIS. This scheme was put  into  operations  on April 1, 2005, . The scheme offers invalidity arising  out of the non-employees as a result of retrenchment  , closure or permanent members   of the workers will be supported by the Employees  state insurance Corporations (ESIC)  without any burden on the employer or employee.  The scheme provides  an unemployment  dole of fifty per cent of the wage of the unemployed  to receive medical care in the dispensaries  and hospitals of the ESIC. To be eligible  and to get benefits under this scheme , the workers should have contributed for a period of five years before the cessation of employments.  

ENGINEERING INSURANCE:  As the indicates these are policies  designed to cover various risks associated with engineering  applications during various   stages of productions  or constructions  as the case may be. These policies are process-specific. There are different types of plans to meet specific  requirements.  The Contractors.� All risks policy is one that safeguard the interest of  contractors  and principals in respect of civil engineering  projects. This is an all-risk cover and cover can also be extended  for third party and other liabilities. The sum insured under the policy is equal to the estimated  final erected value of the contract  on a full cost basis. In the event of underestimation  due to cost escalation, the insurer applies the doctrine of average to the extent of under -insurance. Another variations  is the Erections all Risks Policy that is concerned with the erection  of electrical plants and installations  including machinery,  equipments  and structures with little or negligible  civil works terms and conditions are similar to the Contractors, �All Risk Policy� . Under the contractors� All Risk Policy�  and Erection All Risk Policy, 

The option  is available for additionally insuring the contractor�s plant and machinery. If the sum insured is within the specified  percentage  of the main contract then the additional cover will be conterminous  with the main contract of insurance . Wherever the sum insured exceeds the specified percentage, the  contract   could be an annual contract, for the contractors  could be using the machinery and equipments in connections   with other works too. the additional cover indemnifies the contractors  against unforeseen  and sudden physical loss or damage to the plant and machinery due to any of the specified  causes like burglary theft, riots, malicious acts, terrorism  fire explosions, storms, accidental damages, faulty  handling etc., 

The various locations where the plant and machinery will be stored should be   declared to the insurer.  The insurance are  also allowed to issue  the contingency policy on a �First Loss Basis� where the contractors  find it difficult  to provide  the value of individual Contractors� Plant and Machinery (CPM) particularly in the case of mega projects. The insurers are allowed  to issue such covers under the �File & Use� procedure subject to adequate reinsurance support.  In the case of the collapse of the New Air Terminal built in Paris at a cost of $ 925 million, as nearly 400 firms were involved  in the constructions  of the terminal, it was expected  that the investigations  team headed by prof. Jean Berthier might find it difficult  to pin down the  responsibility  to any one firm. It was opined that in the event of any fault by a company, the claims have to be met by the police unique chantier, an engineering  insurance policy that covers  the liability  of any firm involved in the constructions of the terminal for a period of ten years from the date of completions  . It is reported that the reinsurance is shared by Swiss Re, Munich Re, General Re, and SCOR Group of France. 

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GIVE LIFE INSURANCE ITS DUE IMPORTANT

22 Haziran 2015 Pazartesi

 For all those who have financial dependents , life insurance is a must. Life  insurance acts as a tool for income  replacement. The idea is to not make the surviving  family members suffer financially  due to the absence of bread earner.  Its do not enough to keep the family maintain their standard  of living life  insurance ensures  much beyond it. There are a financial liabilities  towards, children which one needs to meet., Life  insurance  makes sure such goals are met systematically  and dreams and aspirations of children are not  compromised . In addition if there are housing  and car loans , life  insurance serves  it role in managing  them as well. In simple  terms, life  insurance company, ensures your family  doesn�t  suffer financially and all your  goals  are met for a small price by paying a premium, that your pay to ensure it.   THE PRODUCT  RANGE:  Life  insurance products help in channelizing  your savings  systematically into various assets for generating returns over the  along term. As wealth  gets disciplined  savings are goes a long way in meeting  the long term financial  goals. 

On one  end of the spectrum are the pure the term  insurance plans. They solely  cover the risk of the dying. Nothing is paid  on maturity I.e. on surviving  the policy will replace the income  that will cease  to accrue. Then there are a  traditional  insurance plans including  endowments  and money back plans which are a  ideally suited  for conservative  individuals  looking  to bundle savings with protections . On the far end is

the market linked investments  cum protections plan called until linked  insurance plan ideally suited for a   those looking for a bundling  and exposure  to equities as asset  class for a higher that inflation  kind of returns. Besides protection   insurance, products  with savings elements  helps in meeting one�s  long term goals such as kids  education  marriage  or even retirements . Market linked  insurance products having  equity  exposure  comes handy in this as equities are said to work best over long term as against  other asset classes in delivering  higher than inflation adjusted  returns. Link your savings in these unit linked  insurance plans to long term goals. Be exposed  to equities  till about three years  away from goals  and

then start shifting funds from equity  fund options to less volatile debt funds. This helps in protecting  the gains made. 

LIFE STAGE BUYING: Buying  insurance is not a one time affair.  The  insurance need changes as per life stage and one should provide for each one of them. Reviewing  requirements  at every life stage or after 5 years  helps. For those who are single or have recently  started career, the immediate  need might not be there unless there are a financially dependents  parents or siblings ,. However even for them buying   insurance early in life helps in keeping the premiums  low because of age and medical 9issues  connected  with higher ages. As one move up the life stage., gets married and have children, the  insurance need rises. Keeping and adequate coverage not only helps family maintaining  the same standard of living but also helps in achieving  certain  life goals such as kid�s education or marriage.  Since education is the prime concern for most Indian parents, investing  in a child plan will ensure that the education of your kid goes unhindered  whether or not you are a around. Its is a  very likely  that during this  period, one takes a home loan and adds on the exiting  financial liabilities. Getting  not just the home loan insured  but also any other form of loan such as a car or personal loan is a must.  The value of the human life is unlimited. Still most of us consider  it enough  to keep a life cover of Rs. 2 lakh- Rs. 5 lakhs  or Rs 10 lakh . Will it suffice ? Will such amount be enough to replace one�s  income be enough to replace one�s income  for the next several years? No wonder we at most times are under-insured during  our life time.  GET REAL VALUE OF YOUR LIFE: Human life value (HLV) approach to calculating  the  insurance requirements  takes into a account  four factors annual income, annual expenses  years to retirements and inflation adjusted cost of  expenses. From these  factors a reasonable accurate assessment of the value of your income can be made. First  deduct all your personal expenses  such as a food, clothes, travel, entertainments  from your annual income after deducting personal expenses  is what your family consumes. Second see how many years of earning  are left your retirements  age minus your current age.  Project  family expenses up  to retirements. Add non-recurring expenses , like your children�s  higher  education  or their marriage. The shortfall is  

what you should  insure for. Third calculate  the present value of the shortfall allowing for a reasonable  rate of inflation . You may deduct existing  life coverage and account  for any debt such as a  big ticket  home loan to arrive  at a more reasonable  HLV figure.  CONCLUSION: Link your life  insurance to your goals. Choose between traditional and Ulips based on your requirements and understanding  of the products. Do not invest in any of term unless you have a basic understanding of how these products the  work. Once

 bought  run them will till maturity and refrain  exiting  earlier  as a it would  turn costly  in surrendering

before the term ends.  As a thumb rule, keep life coverage of at least ten times, of your  annual income. Above all, ensure you are a not under insured  as that would be the biggest mistake in your life. ...

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LIFE INSURANCE TERM AND CONDITIONS

4 Haziran 2015 Perşembe

Life insurance in its  nascent  is known term insurance . The every very name implies  that the coverage is for a  limited  and specific  time. A term insurance  contract could be structured  for any period. Generally from the point  of view of underwriting  , the term  varies  from five years  to twenty  years. However Assured Life Time, a  term insurance product of TATA -AIG is a  available  fro a term of one year and has certain attractive  options like conversations  of the plan to a savings plan and renewal  of one and five year plans without  any medical test etc., Under a term insurance  contract, the sum assured  becomes  payable only if death occurs  during the selected  term, and nothing  becomes  payable once the term expires. Wherever  the contract  envisages a  renewal of the contractor  for a stipulated  period after the expiry  of the original contract  such a policy is called Renewable  Term insurance policy. 

Some term insurance  contractors  offer a  conversion  clause by which the assured  can experience  an option of the to convert the term into a  permanent  assurance plan without plan any further medical  examinations  . LIC, Max New York Life Tata AIG are a few examples,.  Until  recently term insurance contractors  were not  popular in India.  The first branded  term insurance plan Bima sandesh with return of premium  provision  had a  slow death for want to of proper positioning , . With the opening up of the industry, the concept of the term assurance plans received a shot in the term arm and many companies  like ICICI prudential  Life, Birla Sun Life, and LIC market such term assurance  plans as a assurances  with Return of premium (ROP).  With the opening  up to the industry to private players, the concept of the �Term� is getting promoted . Now private companies  alongside, LIC, market such plans , and the  price war is hotting up in this product class. For the first time among private insurers in the Indian market , Max NEW YORK LIFE came out the with a  LEVEL  Term Plan with  yearly  and other mode options  with the term extending  to 20 year and 25 years. This was  positioned as an attractive  low-cost plan.  Another innovative term insurance plan was a the KOTAK Preferred  Term PLAN (KPTP), introduced  by Kotak mahindra  Old Mutual Life insurance company. His term assurance with a  minimum sum assured  of  Rs. 10 lakhs is available for men  in the group  of 18-60  years , provided  they do not  tobacco in any form. If some  one  takes  to smoking  the after the conclusion  of the contract  the company may view  it as a violation  of the terms of contract  and decide  to decline the death  claim, it if is  established  that the death has resulted as result of the policy holder taken to the tobacco smoking. 

  Bajaj Allianz  Term Care offers  life insurance  cover at a low cost and provides  for returns  of premiums on maturity. The premium   returned  at a maturity amount the to the sum assured  of the premium paid until  maturity sans the extras, if any . In the event of the death of the assured, the sum promised  is paid to the nominee of the legal heir. The plan has built  in Accidental  death Benefits  and Accidental  permanent Total/ Partial Disability  Benefits subject to conditions . 

This plan is marketed  under economy, protect health the and total compacts  with graded benefits. ING Vysya markets  a term insurance plan with a critical  illness rider and HDFC standard  Life markets a loan protections  cover. Life shield  a term  insurance plan  offered by Aviva  life insurance , LIC�s  Jeevan Anmol, Shield, the term insurance plan  of SBI Life Tata -AIG�s  Life Plus, ICICI Pru�s  Life Guard  are some of the well known term insurance brands. A number of the variations  are offered  under these plans.  Though  a term insurance  plan provides very high protections at a minimum cost, it should be noted that it is only temporary protection  and cannot  offer the type of the security  that a  permanent  insurance cover can. It should  also be noted  that if they  a person aged 30 , considered  the cost advantage  and takes only a term Assurance for a  period  of 30 years and if he/she survives the term on reaching  the elderly  age of 60, he/she is left  high  and dry without any insurance proceeds  to fall back on. Even  in the US, where the dictum buy term and invest the rest was once popular , public outlook is changing in preference to comprehensive plans.

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RURAL LIFE INSURANCE AND PRIVATE SECTOR INITIATIVES

Among  the private sector  insurers, who started  their activities during  2000-2001, aviva life insurance  . Co had launched  an exclusive  plan for  rural  areas called Gram Suraksha. The test marketing  results of the Plan in Andhra  Pradesh  were reportedly encouraging  and the company  hopes to market the plan through institutions. The law priced policy offers life cover and money back benefits . For broad basing  its rural portfolio , Aviva life  had opened  offices  at Faridkot, Nagpur, Nashik and Udaipur, in September 2003, Aviva had also launched  customized  products  called  Amar Suraksha  and Jana Suraksha . 

The term former  is a  term insurance cover the with return of the premium provision  on  survival  of the selected  term., The latter is a  fixed term policy available  for terms  of five years  and ten years  respectively  for the sums assured of Rs. 25,000 or Rs. 50,000  as the case may be. Aviva is confident  of utilized  the extensive rural network of its Indian partner , Dabur.  This was  followed by the launch of the Sankat  harn Policy by IFFCO-tokio , General insurance  Company  for farmers, Gramin Bima Yojana, a plan of Kotak mahindra  Old Mutual insurance co.  Is a plan designed to suit  the needs  of the rural populace. This single  premium endowment  plan provides  for payments  on death or maturity whichever  is earlier  . The plan  has a fixed term of 15 years . 

The policy can be surrendered by at any times  and the surrender at any the time and the surrender value  varies  from 90% tp 230% upon the period by for which  the policy has remained  in the books of the insurer. ICICI Prudential  had also launched  different  types of the  policies like ICICI  Pru Mitra an endowment  type of the plan and ICICI plus Pru Suraksha  a regular premium plan to meet the varying  needs of the rural populace. HDFC Standard  Life markets  certain  specialized life insurance products for the rural market. Development  insurance plan., A group insurance product is being  offered by the HDFC Standard life to the rural markets  through NGO;s  and  Bima Bachat Yojana, is another  product meany by the  rural consumption .

 The Birla  Sun Life , Bimla Kavach Yojana is a single premium insurance policy specially designed  for the rural under privileged. The private insurance companies until the end of the fiscal 2002-2003 could not be make by any perceptible penetration  into the rural areas and as the end of the fiscal  200-03, the combined  rural life insurance coverage  by LIC  and private  players was around 27% leaving   behind a substantial  populations  to be covered.  Both for the public sector and  the private insurance companies, distributing products   in rural areas poses certain problems  . As a  agricultural  income is presently  tax-free in India, in the rural areas tax sops  offer no  attractions  and , as a  such the marketing  is more   individual need -based. Many of the agents for advisors, do not find it profitable  to visit the rural areas or  distributing  limited  products, .

 To overcome this situations, companies  are adopting  new strategies, . Some  companies resort to mass compaigns  by addressing the villagers  with the help of the local village head or the Sarpanch  . Alternatively, some of the companies  tie up  with banks  having  wide  rural networks for distributing  insurance products, through  the Bancassurance  route. Some companies  enter into tie-up with NGO�s and social organizations  facilities. Agencies  to offer product  in the rural  areas. Some of the companies are also drawing are also drawing  on the concept of  Rural Career Agents or Advisors, which has been pioneered by LIC, in spite of difficulties, unlike in the past fiscals,  at the end of the financial  year 2003-04, all life insurers  had completed  their rural and social sector obligations, In the connection  a suggestions,  of Apparao  Machiraju  merits  examinations.....

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