Archive for September, 2009

ARE INSURANCE COMPANIES IN INDIA GENDER BIASED?

Tuesday, September 29th, 2009

In India insurance companies trend was to insure only male. The logic given by insurance companies was that because the bread winner or say earning member always supposes to be male, so against the lost of his income the insurance cover is required. However additional to this incentive was that the female lives have some extra risk for their lives during their child birth process. In insurance companies women are broadly divided into 3 categories:
1. Working women.
2. Women with income by way of interest, Rent on any incomes that are taxable.
3. Housewives (those have no income of their own).
While, working women are equally treated like their male part for insurance cover. But house wives are insurability is tied with adequate life insurance cover for her husband. The cover of house wives can not be exceeding to her husband’s cover. Insurance company never considers the contribution of a housewife to her family, society and her contribution in the growth of society. I think this concept should be change. The housewives are equally partner and contributor in day-to-day affair of the family.

INFLATION RATES ARE IRRELIAVENT NO LINK WITH PRICE RISE

Tuesday, September 22nd, 2009

While inflation is going down prices of the commodities are going high and high. It is very difficult for “Aam Admi” (common man)to live a garceful life and it seems there is no control on the rising prices. The Government of the day repeatetly claiming to bring down the inflation rates. But it is wel known fact that the norms to maintain inflation or whole sale price index are out dated and not relavent to todays life. While items notified in the whole sale price index are completely irrelavent which is against the common practice to maintain graceful life for common man. This outdated Mechanism to maintain whole sale price index and inflation rates are immedately required to be changeupto actual whole sale price index to maintain a real life easier for “Aam Admi”(common man). The list of items which part of maintaining whole sale price index should be extended.

IMPORTANT TIPS FOR INSURANCE

Tuesday, September 8th, 2009

Usually insurance companies and their agents aggressively promote their policies. The buyers or say consumers need to be aware of some key elements. Here is some short listed:-
1. Premium allocation charges this could be a main point of differentiator between an expensive and cheap policy, basically the distribution charges which goes to the agents kitty is main root cause why they aggressively, marketing he policy. Charges are always varying to a great extent between the plans. The charges charged in the 1st year, declining in the subsequent years. There is wide range of 0%-100% of yours first year premium with the average being around 25% for the first year.

In my view one should care fully read the document provided by the insurers. While companies allocate 100% of first year premium towards granted maturity addition, which is some time is incorrect. For example if first year premium is 1 lakh for 15 years then first year premium located towards 130% it means that at the end of 15 years back policy holder will get Rs.1,30,000. One should always be careful before filling the proposal form for insurance the following benefits:-
1. Death Benefit.
2. Minimum/Maximum term.
3. Maturity Benefit.
4. Fund Management Charges.