IRDAI PROPOSES CAP ON COMMISSION PAYABLE TO INSURANCE AGENTS

Insurance Regulatory and Development Authority of India (IRDAI) has proposed to introduce a new policy to regulate the commission payable to the insurance agents. As per the proposal mooted by IRDAI, the new structure seeks to regulate the upper as well as lower limit for commission payable to the agents.
The new proposal seeks to do away with fixed percentage of commission structure and allow the insurers to determine their own commission structure for the agents as prescribed by IRDAI.
As per the existing payment structure, insurance companies pay as much as 30% commission to the agents from first year’ s premium paid by the insured. While the new structure may result in higher premiums for the policy holders, the upside is that it will put an end to the practice of paying huge commissions to the agents, which may ultimately result in higher returns for persons investingin insurance plans.
As per the new policy, IRDAI doesn’ t want the insurance companies to spend than 10% of all first year premiums collectively and 4% of all renewal premiums on policies granting deferred annuities for more than one premium.

FUTURE GENERALI INDIA LIFE INSURANCE LAUNCHES ‘JAN SURAKSHA’ PLAN

Future Generali India Life Insurance Company Limited (FGILI), a joint venture (JV) between India’ s Future group and Italy-based global insurer –   Generali, launched Jan Suraksh plan, aimed at targeting Indian’ s living in rural areas on Thursday.
The newly launched product is a non-linked, non-participating plan that provides a life cover at an affordable cost through a one-time premium payment.

Munish Sharda, Managing Director & CEO, Future Generali Life Insurance, said, “ The Indian rural market is still under-penetrated in the life insurance segment and there is a lot we can do in that space. It is important to reach out and provide protection to the most vulnerable.”

” Through our new product Future Generali Jana Suraksha, we aim to help households weather the impact that a death of a breadwinner can have on a family. This is a simple product, which offers the essential security of life insurance,” Sharda added further.

Generali group is among the top global insurers and earned more than US$74 million in 2014 and has presence across West European, Central Eastern Europe and Asia.

Plan at a glance:  

Minimum         Maximum
Entry Age (In Years)     18                  50
Premium payable (In Rs.)  500          750
Policy Term (In Years)      8
Premium Payment Term: Single Term
Tax Benefits                         Yes

Govt Staff and Tax Payers are not eligible for Insurance cover in Jan Dhan Yojna.

If you are a serving or retired Government employee you and your family will not be eligible for life insurance cover under the Pradhan Mantri Jan DhanYojana (PMJDY), a scheme for financial inclusion.

The Financial Services Department of the Finance Ministry has prepared detailed guidelines for the scheme launched by the Prime Minister on August 28. The scheme intends to provide life insurance cover of ₹30,000 for accounts opened under the scheme till 26 January, 2015. The LIC will provide cover.

“The aim is to reach the needy only, not everyone,” a senior Finance Ministry official said.

The list of ineligible categories for insurance cover includes serving and retired employees and families of the Central/ State Governments, public sector undertakings, public sector banks and Central/ State Government-owned entities; persons filing income tax returns or TDS; and those covered under the Aam Aadmi Bima Yojana.

It has also been decided that the head or earning member of a family, aged between 18 to 59 years, will be covered. However, the benefit will be only for one person and can be availed of with the in-force RuPay card. Life cover will initially be up to March 31, 2020.

An in-force card can also be swiped to find out the balance within a certain period from the date of opening of account. Though the specific period is yet to be announced, a public sector bank head said some claim settlement applications had already been filed.

Claim settlement

The guidelines also outline the process for claim settlement of accident insurance cover. This cover of ₹1 lakh will be available on RuPay card and will be provided by HDFC Ergo. One would need to swipe the card at least once within 45 days of opening the account. If the card-holder meets with an accident, the bank should be informed and documents submitted within 30 days of incident.

The bank will then intimate HDFC Ergo within 30 days and submit the documents within 60 days of the loss. In turn, the insurance company will register and forward the claim number to the bank concerned. Finally, the company will settle the claim within 10 days of receipt of documents. The National Payments Corporation of India will be the co-ordinating agency. Forms will be available at bank branches and on the website of the respective banks.

As on November 18, 7.64 crore bank accounts had been opened under PMJDY. Of this, RuPay cards have been issued to 4.5 crore account-holders, that is, around 59 per cent of the total accounts. The official said efforts are on to provide cards to each account-holder at the earliest so that the benefit of insurance cover can be provided.

LIC Jeevan Shagun Plan Calculation.

BENEFITS:

1.Death Benefit:

On death during first five policy years:

Basic Sum assured i.e. 10 times the tabular single premium shall be payable.

On death after completion of five policy years:

Basic Sum assured i.e. 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.

2.Survival Benefit:

On Life Assured surviving to the end of the specified durations, the following Survival benefit shall be payable.

At the end of 10th policy year: 15% of the Maturity Sum Assured.

At the end of 11th policy year: 20% of the Maturity Sum Assured.

3.Maturity Benefit:

On maturity,  65% of the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.

4.Loyalty Addition:

Depending upon the Corporation’s experience, a policy shall participate in the profits in the form of Loyalty Addition. The Loyalty Addition, if any, shall be  payable on death or surrender, provided the policy has run for at least  five policy years, or on policyholdersurviving to the maturity, at such rate and on such terms as may be declared by the Corporation.

5.ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

Minimum Entry Age                                         : 8 years (completed)

Maximum Entry Age                                         : 45 years (nearest birthday)

Minimum/Maximum Basic Sum Assured        : 10 times of tabular single premium paid

 Minimum Maturity Sum Assured                      : Rs. 60,000/-

Maximum Maturity Sum Assured                      : No Limit

Maturity Sum Assured shall be available in multiples of Rs. 5,000/-.

Policy Term                                                        : 12 years

Premium payment mode                                   : Single premium only

Claim Process In Insurance Company.

TheInsurance Regulatory and Development Authority (IRDA) has asked insurers to expedite the claim settlement process for the victims of floods in Jammu &Kashmir.
They have responded by announcing advance payment, lesser documentation, assigning dedicated personnel to handle claims and so on to help the victims. Under ordinary situations, however, things could be very different. Policyholders must take some steps to ensure a smooth claim settlement process — while buying the policy and at claim intimation stage. They also should be aware of their rights to ensure that they get their due.

Life Insurance

Don’t leave it to the agent to fill up the details in your proposal form while buying thepolicy . Incorrect disclosures, particularly information related to medical status, often lead to claim repudiation, say insurers. “The foundation for a hassle-free claim experience is laid not at the time of claim, but at the time of policy purchase itself. You should fill up the life insurance policy form yourself and not depend upon an agent or service advisor to to do so. Non-disclosures, partial disclosures and in correct disclosures of significant and material facts are the major reason for rejection of claims.

At the time of filing the claim, the first point you (the nominee in case of a death claim) must remember is not to pay any charges to officials to secure your claim. Do not let them bully you into paying fees for processing or approving the claim. This apart, ensure that you intimate (either physically or through call centres and emails) the firm as soon as possible.
Next step is to get all the required documents in order. “Claim documents should be submitted in an orderly and timely manner. The documentation list required for claim processing is available on the website of all companies. Hence, it is advisable that a claim be intimated with all the required documents, as this would facilitate speedier processing of claim
Visit your insurer’s website to ascertain the documents required and procure the same before filing the claim. physically or through call centres and emails) the firm as soon as possible.

Next step is to get all the required documents in order. “Claim documents should be submitted in an orderly and timely manner. The documentation list required for claim processing is available on the website of all companies. Hence, it is advisable that a claim be visable that a claim be intimated with all the required documents, as this would facilitate speedier processing of claim.

The Complete Pension Plan Guide.

Fewer and fewer people today are covered by the government sponsored pension schemes – most salaried people have a basic Provident Fund but are otherwise left to fend for their own. Self-employed professionals and businessmen often do not even have this. On the other hand, life expectancy has significantly – most would want to plan for retired life atleast till the age of 85, if not more. Assuming a retirement age of 60 or 65, this is a good 20-25 years of life that has to be planned for.
Cultural factors too have contributed to the importance of retirement planning. Families have got nuclear – it has become more common for children to travel elsewhere in lookout for good career opportunities. Even if children stay committed to supporting their elderly parents, the latter increasingly want to avoid over-relying on this support. The mindset has changed to plan to be self-reliant, and take the support (financial or otherwise) offered by children as a welcome bonus.
There are various dimensions of a retirement plan, in terms of how they are useful and what factors should one go about looking for in each of them.

Pension arrangements have a number of advantages:
when people come to retire they will experience a reduction in income - a pension makes up for some of this loss of income in retirement;

pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member's death;

in order to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments.
For Purchasing a Pension plan or any help visit here : http://www.thepolicykart.com/calculator.php?id=Pension%20Plan

What You should Know About Your Retirement Plan.

Fewer and fewer people today are covered by the government sponsored pension schemes – most salaried people have a basic Provident Fund but are otherwise left to fend for their own. Self-employed professionals and businessmen often do not even have this. On the other hand, life expectancy has significantly – most would want to plan for retired life atleast till the age of 85, if not more. Assuming a retirement age of 60 or 65, this is a good 20-25 years of life that has to be planned for.
Cultural factors too have contributed to the importance of retirement planning. Families have got nuclear – it has become more common for children to travel elsewhere in lookout for good career opportunities. Even if children stay committed to supporting their elderly parents, the latter increasingly want to avoid over-relying on this support. The mindset has changed to plan to be self-reliant, and take the support (financial or otherwise) offered by children as a welcome bonus.
There are various dimensions of a retirement plan, in terms of how they are useful and what factors should one go about looking for in each of them.

Pension arrangements have a number of advantages:
when people come to retire they will experience a reduction in income - a pension makes up for some of this loss of income in retirement;

pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member's death;

in order to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments.
For Purchasing a Pension plan or any help visit here : http://www.thepolicykart.com/calculator.php?id=Pension%20Plan