LIFE INSURANCE -PRODUCT MIX (GENERIC)

 As long as the life insurance business in India remained  a mono poly of LIC the product were internally designed  and launched   by LIC. To enable the Corporation to release commission  to the agents according to the provides of the life insurance Corporation  of India agents  Regulations 1972, a formal notifications  was issued  in the Gazette  of the Government  of India.  With the formation of the insurance regulatory  and development authority , all the companies  a re required to file with the authority a proposal containing the product  profile along with  all the  relevant documents  thirty days before  the launch of a products . The product can be launched by the  after the IRDA  clears   it as a  suitable one for the Indian cousumers.   In the consumer market segment  product or goods are divided  into two  major  groups  namely Branded  products and Generic  products . 

Branded  products  carry the brand  name, whereas  the unbranded  versions of common products like unbrand  apparel shoes, , soaps, washing powders, etc.,  Are called the  Generic products.   Until the middle of the 1980’s in India, life insurance  plans did not bear by  any brand name: they were marketed  as generic products as a  whole Life Assurance  or /Endowment Assurance etc.,  Under the respective  table numbers. The concept of products branding  took from  root in LIC during the 1980’s. All life insurance plans that are marketed  under different brand names  are combinations  of generic product like the Term Assurance  , Whole life and Endowment  type of the plans , including  immediate  and Deferred Annuities.  

  Until the advent of the private  sector insurance companies  majority  of the product  on offer in the Indian  market were pure vanillas  providing for risk cover and savings. The private sector players  have Changed market the rules  of the game. Now the insurance  market was a  has a  plethora of hybrid  insurance products judiciously  and dexterously  mixed to the meet the various new and changing needs to the customers. LIC that was a  vendor  of vanilla  insurance products has also changed  its traditional  out look and is launching  many customer centric products.  For example  Jeevan Rekha of LIC is a whole Life plan that combines  the features  of a Money Back Plan, Birla  Sun Life’s Flexi Life Plan is a unit linked  whole life plan offering benefits like investments  options top up options by way of additional  investments  annual guaranteed  additions and further loan and surrender facility, etc.

Maha Life of Tata -AIG  is a whole life plan that provides  for guaranteed  additions and further tops the additions if the Company’s  bottom line becomes  healthier . Similarly the flexi protection  whole life plan Lige Long of AVIVA is a linked whole life plan that offers  an option to increase  the sum assured subject to conditions.  Shubh life endowment plan by the Tata AIG, apart from offering  guaranteed  additions to the plans at certain percentage  also offers  a number  of options  to the policy holder  . Nirbhay of Tata-AIG is a plan that combines  the advantage  of a limited  premium endowment and attractive features  of money back plan. Sudarshan the endowment  plan of SBI Life offers  two options. The  fixed  Sum assured  plan maintains the predetermined  as the cover for the term , whereas under the increasing  sum assured  plan that the life cover increases  every year.

MANAGEMENT OF THE HEALTH RISK

 In some ways the challenges  involved in personal health risk management are the same as those presented  for death and disability. However here there is another aspect to be considered  . The management of health conditions to maintain another aspect to be considered a financially  feasible/ optimum plan, This includes seeking out the optimum approach to funding health care costs, the most suitable  combination of medical aids, health insurance  etc.,   Increasingly this is being  combined with health cost curtailment  programmes such as a managed health care schemes.

  PREVENTIVE CARE:  There is a growing awareness  of the need to focus on the hesitant to offer cover for preventive issues. Indeed, it is only in the past few years that we have been seen some schemes including  repayments for costs associated  with sterilization or other birth control  measures, even though they were happy to meet  the heavier  costs of child birth. Similarly most of us would not expect to be able to claim the costs of a health club subscription from our  medical aids.
THE ROLE OF FUNDING:  Funding  involves three main areas:
 (1) ENSURING SUFFICIENT   FUNDS FOR APPROPRIATE  MEDICAL ATTENTION: Whilst   the simplest  form of this is a specially  ear-market savings account, the  danger in this approach lies in the possibility  that a fairly  large demand could be placed on the funds, early  on, before sufficient cushion  has been built up. Another issue is the fact that it is generally true the that some people are just ., Unhealthy mainly through genetic causes and for them the cost of funding  adequately could be the prohibitive. The normal solution  to these problems has been in the basic  concept of insurance  as applied in medical aid schemes pooling of the risk and cross-subsidisation.

  (2)  MAINTAINING  A CONTROL ON COSTS:   The system of health  treatment is such that it is sometimes  difficult to ensure that cost increases are genuine. After all without wishing to be disparaging of the medical profession, we find that there is often pressure  on them to make 100% sure that the treatment is totally  successfully  since patients, would otherwise have cause for complaint. There is a also  the simple financial matter that suggests that a practitioner should  seek to get as much out of the patients as possible, “ With the general lack of medical knowledge on the part of the most parents, over treatment is a define possibility  since that the matter is really out of the patient’s  hands and mostly paid for by the medical aid.  In all of this  there is a  need to the maintain  a balance between the care and the cost. For example surgery may be expensive , but if it cures the condition  swiftly and effectively , it may be ultimately  be a better choice than an alternative  prolonged half measure treatment.  However increasing  a new  perspective is being introduced in the so called new generation  medical schemes, where recognition  is given to the fact that there are some procedures where the patient does have control for example whether  to take a  minor ailments to the  doctor or to only for the chemist and so increasingly  the insurance  cover is being  offered only for the more major condition, where the patient is more relient on  the medical practitioner.

 Managed  health care schemes seek to the solve the problem in one of two ways-either through the introductions   of professional checks  by more than one of the practitioner either after than the  treatments or preferably  before or through arrangements  with specific   practitioners a or a group  of practitioners where a flat fee is a negotiated  for treatments  as a whole thereby  putting a the onus on the practitioner to provide the most cost effective treatment  hopefully without sacrificing quality.  (3)  ENSURING POST-RETIREMENT CARE: Most medical expenses are incurred  in the one’s  later year and there is an increasing  realization of the need  for  funding for this . However such funding has an impact on current expendable income. While pre-funding  through has an impact  savings schemes is one consideration another approach largely  confined  to several more advanced countries overseas, is that of frail care, where the individual contributes to a  fund during his or  her working life and in return is guaranteed suitable post retirement care

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PERSONAL CHOICE: You should  forget that medical attention is essentially  an intensely personal matter. People become  familiar and comfortable with certain practitioners  whilst it is also  fair to say  that we each have a  different value scale  when it comes to medical expenses. For example  one person may be happy to the pay the higher costs associated with a private ward at a private hospital whereas for another the general ward at a  Government facility  serves the purpose adequately. Whilst this  reality makes it important  to ensure sufficient choice, it is also necessary to ensure that certain people do not abuse any scheme unduly at the expense of others.

4 Types Of Insurance Everyone Needs

FISH INSURANCE= This insurance is devised  for fish water fish rearers to cover stock of fry/ fingerings/fish / breeders of breads  like Rohu, Katla, Mrigal, common carp, Silver carp or any other recognized  breeds. SALIENT FEATURES: (a) The  insurance  covers  total loss to the  fish due to accident  or disease during the period  of insurance . The cover  includes loss due  ton pollution  poisoning  malicious act by  third parties  riot and strike. Political loss of any kind   is not covered.  (b) Flood and  allied risks are covered as an extension on payments of extra premium.  ( C )  The insurance  can be  also  be extended to cover the fish rearing pond bunds, sluices   etc., against  fire and natural  calamities on payments  of additional premium. (d) Policy is issued for the rearing period  subjects to a maximum period of 12 months from the date of stocking.

 LIFE IRRIGATION/ SPRINKLER INSURANCE:  This insurance  is suitable for the agriculturist  using the lift irrigation or sprinkler  installation for cultivation.   SALIENT FEATURES: (a) This insurance  covers  loss or damage to intake well, delivery  chambers, jack well, pump house, water storage  tank, pipelines, cables , starters and motors of the lift irrigation  systems or sprinkler installations  arising  out of fire, flood, earthquake, landslide , bursting  of pipeline and theft.   PLANTATION / HORTICULTURE INSURANCE:  This insurance  is suitable for individual farmer owner or tenant engaged in cultivation of horticultural  trees or plantations  or an associations organizations  and registered  body of farmers engaged in cultivation of specified crops. Also bodies registered  inputs procuring inputs, processing/ marketing of the produce can take this policy. SPECIAL  FEATURES: (a) Horticultural  trees/ orchards such as a citrus fruits (orange, lime, sweet lime), grapes, chikoo, pomegranate  banana and  plantations  such as a rubber, eucalyptus, poplar, sugarcane, betelvine , cardomon, sweet chilli, oil palm, teakwood, strawberry, tea , apple and coconut can be covered by this policy.  (b) The policy covers  loss or damage  due to fire, lightning  storm and other natural calamities  acts of terrorist  to fruits in respect of horticultural crops  and tree in case of  plantations.

  POULTRY INSURANCE: This insurance  is suitable for the poultry  farmers, the beneficiaries  of scheme sponsored  by the DRDA, DPAP, IRDP and financial institutions  providing assistance  to poultry units.  SALIENT FEATURES: (a) This comprehensive policy is issued to cover poultry consisting  of Broiler chicks/ layer chickens/ cooks and hens in the poultry farms. A minimum number of 100 broilers/ 500 layers  or 200 birds per batch  in the hatchery can be covered under the policy.  (b) The policy  provides  compensations  for loss to birds due to accident including  fire, lighting  flood, earthquake etc., diseases  contracted  or occuring during the period of insurance .  HONEY BE INSURANCE:  This insurance  covers loss or damage to Hive and Bee colony. Theft risk in covered  only on payment of additional premium. Sum  insured is based  on the cost of Hive and Bee  colony as given by State of Central Khadi and Village  Industries Board/ Commission. The rate or premium is 4% for loss or damage  to Hive/ Bee colony and 6% if theft extension is opted.   DOG INSURANCE:  This insurance  is applicable for indigenous  cross  bred or exotic dogs, watch dogs, which sheep dogs and   hunting dogs within the age limit of 8 weeks to 8 years . It covers death due to accident and diseases  contracted  during the period of insurance . The diseases  such as a rabies, canine, distemper, canine virus etc.,  is covered only if the necessary  vaccination certificate is submitted  . The maximum value of any breed should be not be less than Rs. 200 and maximum value of any dog should net exceed Rs. 2, 000 each dog.

 ANIMAL DRIVEN CART INSURANCE: This is a comprehensive  policy covering  the cart, the animal the cart driver  and third party  liability  (both TPPI and TPPD). The premium is 1.40% of sum insured per annum. The sum insured should include value of the  cart and animal. The animal however is covered against  accidental death  only. If death due to diseases  is to be a covered  a separate  livestock policy is to be taken.   HUT INSURANCE: This insurance  applies only to those huts used for dwellings and constructed in rural areas with financial  assistance from banking/ co-operative/ government institutions. It can  also apply to a selected area or cluster of huts for which proposal be referred to head office. It covers  loss or damaged due to fire, explosion of boiler  or gas used for the domestic  purpose only, earthquake flood etc.,

 GOBAR GAS INSURANCE (INSURANCE OF BIO-GAS PLANT) This insurance  is applicable  for khadi and village industries  workers artisans IRDP beneficiaries  and Scs and Sts and such other identifiable groups.. It covers loss or damage due to fire , lighting  riot, strike, flood, earthquake, subsidence, landslide (including  rockslide)  . The sum insured is the value of the plant (digester + gas holder+ constructions cost) depending  on type and cubic  capacity.