Insurance Plans Reviews and Articles

Jeevan Nischay Policy is to be launched by LIC

Posted in insurance by kishosingh on October 29, 2009

Recently, Life Insurance Corporation announced to launch Jeevan Nischay policy. It will be single premium granted plan of LIC. Jeevan Nischay policy will be very similar to Jeevan Aastha which was launched last year.

Still, the whole information has not taken place among us but LIC will declare more information about the policy soon. According to the insider’s information, an insurer would have to invest of Rs. 1 lakh for 10 years then he will get a maturity about Rs. 1.7 lakh.

Yield and additional loyalty will be declared soon after the launch of the policy. Jeevan Nischay policy will be sold for limited period till March, 2010.

Jeevan Nischay policy introduces maximum features such as single premium plan and the investment will be linked with to the extent of protection the individual already has purchased.

The ET has written, “According to sources, the main objective of the policy is to tap the maturity benefits offered under an older plan – Bima Gold, which sold more than 1 crore policies when it was launched. Jeevan Aashta had mobilised close to Rs 10,000 crore, as it offered a safe haven of guaranteed returns amidst the turmoil in the market.”

Jeevan Nischay policy will cover “the mandatory five times of the premium amount for the first year of insurance. For subsequent years, the sum insured will be equivalent to the premium paid.” The news was also published in Economic Times.

Till now, one time premium policy has proved its essence. Earlier, we have seen many single premium policies by LIC and Reliance that had gotten good popularity. Now, we can assume about Jeevan Nischay policy and about its effect.

Single premium policy gives insurer independency also. Jeevan Nischay policy will be just like an investment for 10 years with insurance cover that will surly attract customers.

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VISSS of IRDA and Subh Nivesh of SBI Life Insurance

Posted in insurance by kishosingh on September 22, 2009

There is the biggest news in insurance department of India related to VISSS and Subh Nivesh. VISSS is Vehicle Insurance Status SMS System and Subh Nivesh is a type of life insurance plan of SBI.

Currently, IRDA is working on VISSS project to create a large database about motor policy information by all insurance companies. This is a type of technology which will enable simple SMS query to ascertain whether a vehicle is insured or not. VISSS would provide an additional facility to police authority to verify insurance status of the vehicle.

So, VISSS will be an SMS technological system of IRDA where all vehicle information will be available from all insurance companies whether a motor insured or not.

There is other the most popular news about SBI Subh Nivesh policy which has been recently introduced. Subh Nivesh of SBI is a traditional life insurance plan. Subh Nivesh plan has been designed to savings, protection and income needs of customers which will cover risk-averse profile.

M N Rao who is the Managing Director and Chief Executive Officer of SBI Life Insurance, said in press release,

“Strengthening our product suite, the introduction of Shubh Nivesh is a step towards presenting customers a range of solutions which enables them to choose one that best suits their risk profile and financial needs. The product is available in two options. In endowment assurance option, the accrued bonus and the sum assured amount is payable during an unfortunate event of death during the endowment term or on survival at the end of term.”

So, the Subh Nivesh policy of SBI is not just very new, it is similar to JEEVAN ANAND policy of LIC. Subh Nivesh policy with endowment option will give a sum assured amount on an unfortunate event of death even after the completion of 100 years of age.

There is some very good attractive option with maturity payment options of Subh Nivesh of SBI life insurance.

TATA to Buy AIG in life insurance JV

Posted in insurance by kishosingh on August 6, 2009

There is the biggest news in insurance sector. TATA is to buy AIG in life insurance JV. Tata has planned to buy out AIG which is US insurer from the life JV, TATA AIG Life insurance. We have already published an analysis of life insurance industry in the comparison of AIG. According to our analysis AIG is facing crisis in the USA. About the loss of AIG we write in our previous post, banking and insurance sector loss,

“AIG’s loss amounts to 92 per cent of the $67.4 billion that Americans spent at world’s largest retailer Wal-Mart Stores Inc. in the fourth quarter, which includes the holiday season. It would take a person spending $1 million per day, everyday, the next 169 years to spend as much money as AIG lost during the fourth quarter, which lasted just 92 days.”

About the deal ET writes,

“Initially, there were indications that AIG would sell its Asian life insurance business. Earlier this year, US’ Metlife, UK’s Prudential and French insurer Axa had shown interest in buying parts of AIG’s life insurance business. But this could have caused regulatory problems in India, as all three multinationals have a presence here through JVs.”

It means not only TATA but also there are many insurance companies who are trying to take a chance to buy some share of AIG.

There is another thing which has made TATA to buy AIG that is global economic slowdown. These days AIG is suffered from huge loss in the USA. You should know that the USA government has bought maximum shares of AIG to get from crisis but still the insurance company facing more problems to survive globally.

Another thing which is also most important, US government has decided to sell shares by its Asian business under AIA. You should know that AIA is an arm of AIG, a public offer.

TATA spokesperson doesn’t want to comment at all on this situation, “We do not wish to comment on such speculation.” It is the truth that AIG was able to infuse money into the Indian life insurance JV despite of, crisis.

AIG plans to invest in non-life business also that could be strong position for that company. TATA is still in confusion to choose it’s a reliable partner.

Guarantee Builder Launched by Bharti AXA Life

Posted in life insurance by kishosingh on June 9, 2009

Private life insurance joint venture between Bharti Enterprises and AXA, Bharti AXA Life Insurance, launched an innovative premium guarantee product – Guarantee Builder.

Nitin Chopra who is the CEO of Bharti AXA Life said,

“This premium guarantee product addresses the needs of those traditional and new investors who are wary of market volatility – as is the case currently – but would still like to participate in the Indian growth story.”

Guarantee Builder would be a package for long-term customer to get benefit, as per the Chopra statement. Guarantee Builder will provide customers the benefit of increasing GMV (guaranteed maturity value). It is a first-of-its-kind benefit product to Indian customers.

Economic Times online news paper writes about the premium,

“GMV is the sum of the investment premiums payable over the term of the policy. Guarantee Builder provides customers the comfort of the GMV increasing by 1% each year till it reaches 115% of GMV at maturity.”

Guarantee Builder would be the new guarantee fund to Build & Protect. It will provide customers the option for the long-term to remain invested in equity up to 40%. It gives the flexible option to move out of the guarantee to switch out of Build & Protect Fund.

At the end of the 10th and 15th year a special addition of 2.5% of average policy fund value will be provided customers the benefit of wealth creation over the long-term. Guarantee Builder will provide death benefit of sum assured plus fund value. It would be with sum assured for ten times on the annual investment premium.

Latest news shows that Bharti AXA Life has also plan to invest Rs 100 crore into the life company in the July-September quarter.

Bharti AXA Life has many plan and investment option nearly to the new customers. The company is trying to invest almost all growing industries.

Life Insurance Industry Falling in Competition of General Insurance

Posted in life insurance by kishosingh on May 2, 2009

According to the recent news, life insurance premium collection has fallen about 11.6% in the fourth quarter. In the financial year 2009 (April – March) has brought down about 6% according to the Insurance Regulatory and Development Authority (IRDA).

North-zonal Manager, Sanjay Kumar Jha from Bajaj Allianz said to the Economic Times, “The stock market crash in the previous fiscal led to a drop in the demand for unit-linked insurance plans, pulling down sale of new policies.” About the new premium collection ET says, “New premium collection clocked Rs 34,814.55 crore in Q4 against Rs 39,413.16 crore in the corresponding period of the previous fiscal. For the full fiscal, it stood at Rs 87,107.62 crore compared to Rs 92,988.71 crore in the previous fiscal.”

About the down it is said that the market leader LIC (Life Insurance Corporation) has gone more down about 10% whose market share was 60% to 63%. The collection has declined during the year which had been sold this year.

It is being said that LIC’s policy Jeevan Aastha premium collection would have been worse also.

Another news according to IRDA data shows that general insurance sector is in growth from 9% to 12.6%. Among the 16th non-life insurance companies only Reliance has posted negative growth in the sector.

In the other hand Birla Sun Life Insurance Rs 10,000 crore marks in Assets under Management (AUM). According to the Vikram Kotak who is the Chief Investment Officer said to the ET, “it gives us great pleasure to cross the landmark of Rs 10,000 crore of AUM and in the process registering a strong growth of 41 per cent year-on-year.”

On the analysis of Insurance sector we can say that the sector differ company to company not from policy to policy because in the one hand LIC is going down in life insurance where on the other hand BSLI is going up. Like it, in the general insurance policy all the insurance companies going up where Reliance is going down.

Jivan Anand Life Insurance Policy from LIC and My Experience

Posted in life insurance by kishosingh on February 11, 2009

I have already told you in my previous post about my experience with corporate health insurance. Now, I want to share my own life insurance experience to you. I am 24 years old still I was not insured. Once day, I met with my teacher friend. We were talking with some different topic. Suddenly, we come to the insurance topic. He asked me about my life insurance. I told him that I don’t think about insurance and have not thought over the insurance policy.

Now, he was serious. He begins arguments with me about insurance. He gives one suitable argument that no car and motor bike run on road without insurance then you do you not think about your life insurance? “We also run on road every day then why should we don’t feel about our life insurance?”

After that logic I had no space for arguments. That time I decided to be an insured person. He was an insurance agent actually. That is why he wanted to make me insure. In spite of some reality was there. I asked him to tell me about best policy. He was my friend so he suggested for Jivan Anand Life Insurance of LIC.

He told me that JEEVAN ANAND is unique combination of ’’Whole Life’’ and ’’Endowment’’ policy. By this policy I was able to get an insurance of whole life without paying policy amount.

He told me that if you get a policy of Rs. 1 lakh then you have to pay only premium of Rs. one lakh. After that you will get endowment at the end of the selected term or on end of your life.

He told me about premium also that you are able to pay in term of yearly, half-yearly, quarterly or monthly. I saw an advertisement also nearly about Jivan Anand policy that if you take the policy then your life will be “ANAND HI ANAND”.

Now, I want to ask that let me know Jivan Anand is right for me or is there any other policy which is better for me?