Insurance Plans Reviews and Articles

ESIC Medicare Facilities for Unorganised Sector Workers

Posted in health insurance by kishosingh on March 24, 2010

With the recent updates in ESIC policy now, millions of workers in the unorganised sector would be able to take advantage of the ESIC medicare facilities. Recently, government announced to amend the Employees’ State Insurance Act 1948 to significantly enhance the social security coverage.

ESI Corporation sources said to ET, “The facilities of ESIC would now be extended to workers in the unorganised sector under Rashtriya Swasthya Bima Yojana by making optimum use of under-utilised hospitals and dispensaries of ESI Corporation.”

Further sources said, “The ESIC would be empowered to enter into an agreement with any local authority, local body or private body for commissioning or running ESI hospitals through third party participation for providing medical treatment and attendance to insured persons.

The state governments, with the prior approval of the Centre, would be able to set up autonomous organisations on the pattern of ESIC.

A Bill to amend the ESI Act 1948 would be brought before Parliament.”

Now, the act will interact with local authority, local body or private body to empower and providing medical treatment.

About this updates,, a business and finance news portal writes, “A decision to amend the existing Act to ensure effective implementation of the Employees’ State Insurance Scheme was taken at a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh.”

According to the updates, “It would apply to all places where ten or more workers are employed.”

So, it is effective for those workers who work in a team of at least 10 workers. In Delhi, there are many un-organised sectors which have not a team of 10. What about them? Will they still out from the facilities?

Still there is need of lots of improvement in ESI act and policies. It should be easier and more effective from the government sides. It is other good news in insurance field after Wealth Plus Insurance Policy from LIC.

Wealth Plus Insurance Policy from LIC

Posted in life insurance by kishosingh on March 16, 2010

Wealth Plus is a new offering of LIC. It is an 8-year fixed-term product. In this plan, LIC guarantees the highest Net Asset Value (NAV) recorded over the first seven years of the policy.

According to the, an online news portal, “Wealth Plus has two options — a single premium one and another plan where premium is payable for the first three years. The minimum annual premium is Rs 40,000 under the single premium option and Rs 20,000 under the 3-year premium paying term. The sum insured is a modest 1.25X the premium for single premium policies and 5X the annualised premium for policies with a 3-year payment term. The insurance cover continues for two years after the term of the policy.”

About the policy LIC states an example – “a 30-year old who invests a single premium of Rs 40,000 can look forward to getting back Rs 64,679 if the fund value appreciates 10% annually. If the appreciation is 6%, he can expect to get back Rs 47,377 at the end of eight years. On the other hand, if the same investor chooses to invest Rs 20,000 for the first three years, he can look forward to getting Rs 91,445 if the fund appreciates 10% and Rs 70,309 if the appreciation is 6%.”

In an analysis, the news portal writes, “In short, the working behind such products is that the highest NAV is assured by shifting assets to debt as timed by the fund manager. The downside is that the fund managers cannot allow spikes in the scheme’s NAV.”

Wealth Plus is the latest offering of Life Insurance Corporation. However, many other private life insurance companies have already launched the same plan in the insurance market.

Recently, Reliance has also launched highest NAV Guarantee Plan. We already have seen Guarantee Builder of Bharti AXA Life also. In this condition, Wealth Plus of LIC is only an insurance plan not a new plan.