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Insurance and Investments are subject to Emotional risks.

Rahul and Mehul were good friends. With “good” I mean they resided in the same locality and had played together in childhood. Both in their late 20’s, Rahul owned a firm named KSPL and Mehul worked in an IT company (The Turbulent Industry).

One day Rahul approached Mehul and introduced some LIC (Insurance) plans. Since both knew each other, Mehul was also interested to get insured but mentioned some necessary requirements, considering the voltatile nature of the job sector he was part of. He being in IT industry was aware about the work culture and the employment/job expectancy situations throughout his career, with this added expenditure of the premium he needs to pay. He was of the opinion that insurance plans that would mature around 50-52 years of his age would help him with some monetary benefits at that phase of life along with insurance.
He was quite aware about the difference between Investments and Insurance.

Mehul discussed a lot with Rahul regarding his criterias and Rahul agreed on his terms and both moved ahead. Within a couple of days, Mehul completed the formalities and paid for the first premium with some medical tests that were required.
But, after few weeks, to his surpise when he checked the Policy documents that he received, the policies that he had purchased had around 35-37 years of Premium Paying Term. (Mehul would be in his 70’s on maturity).

Mehul immediately contacted Rahul and straightway went to his office. Mehul also showed him the proposal document that Rahul had sent him before purchasing the policy. It clearly mentioned the premium paying term around 27-28 years.

When asked what could be done further, Rahul rudely replied Mehul that he can stop paying further premiums considering the first premium loss, completely getting off from his responsibilities.

Rahul’s negligence and careless attitude in the field costed Mehul an insurance with Inadequate fulfillment’s for lifetime.

Moral of the story: Insurance and Investments are lifetime responsibility. The Insurance advisors might take advantage of your situations out of negligence or getting some extra commission.
You need to be aware of not getting ruined and carefully understanding the terms and conditions.

posted by Mandar in Insurance,My Town - Nagpur and have No Comments

A Salute to all LICians & Policyholders…!

Performance  of  LIC  for the year 2009-2010.

  • Total Number of Policy Holders:    28 crore
  • Total Market share                           :    73%
  • Profit                                                      :   23,478  crore
  • Dividend to Govt. Of India            :    1029 crore
  • Maturity                                               :    46,921 crore
  • Death                                                     :     7033 crore

Total Income of  LIC is  Rs. 2,98,721 crore; an increase of 49.2% over the previous year. This includes premium income of Rs. 1,85,985  crore which is highest ever.

posted by Mandar in Insurance and have No Comments

Why should the policy holders suffer?

About 18 insurance companies have withdrawn the cashless mediclaim policy facility and stopped direct payment of treatment charges to high-end hospitals from July 1. Had there been a breach of trust between the mediclaim policy holders and the insurers? Mediclaim policy holders who want to avail the facilities at hospitals like Ganga Ram, Max or Medicity, Apollo, Fortis will now have to pay. This is a fight between hospitals and insurance firms and the middle class are at a disadvantage. The health insurance market in India would suffer a lot. But why should the policy holders suffer?

IRDA has decided to examine this issue after discussing with the concerned stakeholders.

posted by Mandar in Insurance,Misc and have No Comments

LIC launched “Jeevan Nischay”.

New plan Jeevan Nishchay launched.

LIC paid Rs.4289.28 crore as death claim benefits against only Rs.155.46 crore paid by all private life insurers.

posted by Mandar in Insurance and have No Comments