Managing Your Health Insurance Premium Costs

wealthymattersA more equitable health insurance market is leading to a heavier burden on younger ,healthier policyholders.Many health insurance policyholders have seen their premiums go up 15-35% in this financial year, as insurance companies, including public sector firms, revise their premium rates.

The new health insurance regulations implemented by the IRDA in October last year,including the abolition of claim-based loading and the introduction of the lifelong renewability clause,are some of the main reasons why premiums have risen sharply.The first refers to the practice of increasing subsequent premiums for those who make claims. The lifelong renewability clause  is to ensure that older people with health issues  continue have access to health insurance.Apart from this, the new health insurance guidelines also allow insurance companies to raise premiums only when a policyholder moves to a new age band. Moving away from claim-based loading and mandating lifelong renewability means that younger people pay more. There is some cross-subsidisation otherwise it becomes impossible for senior citizens to afford health insurance.Most claims come in the age group above 60 years but companies cannot load premium beyond a point for this age group. Read more of this post


List Of Insurance Companies In India

wealthymatters.comToday there are a heck of a lot of Insurance companies in India and every few days some or other new product is launched and withdrawn.

Insurance agents are are paid by the companies they represent and have little motivation to study products from other companies and none to recommend any of them to you.

Theoretically, brokers who are deemed by law to work in the interests of the buyer,are meant to study products from multiple companies and impartially recommend the best for their client. But remember they are compensated by insurance companies on the basis of each product they sell.Additionally the commission is on a percentage basis and calculated on the size of the premium.So brokers too face a conflict of interest and have less incentive to sell cheaper products. Read more of this post

IC-33 Exam of the IRDA

wealthymattersInsurance products as an asset class have always attracted me.This is because I am always on the lookout for investments where the downside risk is nil or minimum and the upside gain is disproportionally higher i.e a sensible asymmetric risk return scenario.I wrote about such investments in this post:Link.

Now insurance products will never give you the returns you can get from businesses, but on the other hand,not all insurance products are such losers as many financial planners,mutual fund agents and stock brokers claim.As far as returns from retail investment products go,returns from good insurance products are at the upper end of the spectrum.

Insurance products have a mixture of financial calculations and legal implications,just like options writing, which makes them interesting.So you can use them creatively to build wealth without unduly increasing risk.And meanwhile you can enjoy free insurance covers.Nothing like free options to make a bargain minded person ecstatic! Read more of this post

Agricultural Insurance Company Of India Limited


Freak weather incidents are becoming increasingly frequent .This makes farming more risky nowadays.Add to that,modern farming is more capital intensive.So it makes sense to protect one’s investment with crop/weather insurance.

IFFCO-Tokio’s weather insurance is better publicized.But there is one other private alternative: ICICI-Lombard’s Weather Insurance.However the lion’s share of the covers are provided by the Agricultural Insurance Company Of India (AIC).

AIC was incorporated on 20 December 2002 with an authorised capital of Rs. 1500 crore. The initial paid-up capital was Rs. 200 crores, which was subscribed by the promoting companies, General Insurance Corporation of India (GIC) (35%), NABARD (30%) and the four public-sector general insurance companies (8.75% each), viz., National Insurance Co. Ltd., Oriental Insurance Co. Ltd., New India Assurance Co. Ltd., and United India Insurance Co. Ltd. AIC is under the administrative control of Ministry of Finance, Government of India, and under the operational supervision of Ministry of Agriculture, Government of India. Read more of this post

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