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PR & News Update

What are the tax benefits of health insurance policies?

Health insurance is a form of insurance that covers medical expenditures incurred by an individual for long-term well-being. Ultimately, health insurance policies allow individuals and families to cover the high expenses of medical treatment. There are tax advantages to purchasing and having health insurance coverage. The premium amount paid for health insurance is tax deductible. Section 80D of the Income Tax Act allows you to claim tax benefits on your health insurance premiums. As a result, based on an interview with various industry experts, here’s how you can get tax breaks on your health insurance premiums.

Dr. Santosh Puri, Senior Vice President – Health Product & Process, Tata AIG General Insurance Co. Ltd.

One of the advantages of having a health insurance policy, apart from financial protection of the family, is also prudent tax planning. Premium paid towards a family’s health insurance policy is eligible for exemptions under Section 80D of Income Tax benefit though there is an upper ceiling to it. The premium for health insurance policy depends upon the sum insured, members, getting covered, and their age.

Typically, family floater policies offer coverage to entire family ~ self, spouse, dependent children, and dependent parents in a single policy. Tata AIG’s MediCare Premier family floater policy offers coverage up to INR 3 Crore sum insured and premium paid qualifies for income tax exemption under applicable provisions. One can avail tax deductions under Section 80D up to ₹1lakh for Self and Family if Eldest is above 60 years + Senior Citizen Parents

Also, customers looking for maximum tax advantage can also opt for a higher tenure policy like 2 years or 3 years, while tax deductions can be claimed for each year up to the defined limit. We are Tata AIG are offering long-term discounts on our various retail health product offerings like Tata AIG Medicare, Tata AIG Medicare Premier, and Tata AIG Medicare Plus”

Amar Ranu, Head – investment products & Advisory, Anand Rathi Shares & Stock Brokers

A health insurance policy is a product that protects you from the financial consequences of a wide range of health-related expenses, from minor illnesses and injuries to critical diseases.

As per Section 80D of the Income Tax Act, the premium paid for a health insurance policy is deductible from the taxable income. The upper limit for the deductible amount is Rs. 25,000 and can be extended to up to Rs. 50,000 for senior citizens (with effect from 1 April, 2018). This implies that the policyholder is now eligible to enjoy a deduction of up to Rs. 75,000 from the taxable income. In rare cases, when the age of both the proposer and his parents is more than 60 years, the deductible amount can extend up to Rs. 1,00,000 (Rs. 50,000+Rs. 50,000).

CA Arpit Jain, Joint MD, Arihant Capital

In many countries, including India, health insurance premiums are tax-deductible, which means that individuals can claim them as a deduction on their income tax returns. This tax benefit can help to reduce the overall cost of health insurance and make it more affordable for individuals and families.

In general, taxpayers must meet certain requirements to claim a tax deduction for health insurance premiums, such as

• The insurance must be purchased for the taxpayer, their spouse, or their dependents.

• The insurance must provide coverage for medical expenses, including doctor visits, hospitalization, and prescription drugs.

The tables below provide an overview of how much insurance premium towards your health policy qualifies for exemption under Section 80D of the Income Tax Act and the total cash benefit for individuals falling in different income brackets.

TABLE A Self, Family, Dependent Children Dependent Parents Total Tax Deduction u/s 80D
Individuals & Parents below age 60yrs 25000 25000 50000
Individuals & Family below age 60; but parents above 60yrs 25000 50000 75000
Individuals, Family & Parents above 60yrs 50000 50000 100000
Members of HUF 25000 25000 25000
TABLE B: Tax Benefit Premium % of Rebate Tax Rebate
Slab Rs. 2.50 Lacs to Rs. 5.00 Lacs 25000 5.20% 1300
Slab Rs. 5.00 Lacs to Rs. 10.00 Lacs 25000 20.80% 5200
Slab above Rs. 10 Lacs 25000 31.20% 7800

For example, if you are only paying for insurance premiums for yourself and your spouse, the total deduction you can claim is ₹25,000. Now if you fall under the income slab of ₹10 lacs and above, you will save a total of ₹7,800 in taxes by claiming this deduction under Section 80D of ITA.

To claim this deduction, you will need to provide your premium payment receipt and your insurance policy copy which shows the name of the family members and their relation and age. It is important to note, to take the benefit of this deduction, the premium should be paid in any mode other than cash. Premium paid in cash will not be considered. However, the payment for Preventive Health check-ups can be done in cash.

Siddharth Singhal, Business Head – Health Insurance, Policybazaar.com

Buying a health insurance policy not just ensures a sound financial safety during medical exigency but also serves as an actual tax-saving tool. The insured person can save tax under Section 80D. Any policyholder is entitled to this tax rebate for health insurance premium paid either for self, partner, dependent children, and even for parents.

For self, partner, dependent children the maximum tax exemption is Rs. 25,000, while for parents (aged less than 60 years), an additional exemption of ₹25,000 is available. However, if the parents are aged 60 years or above, the deduction is ₹50,000 while, if both the taxpayer and parents are above 60 years, the tax exemption amount goes up to Rs.1 lakh.

Moreover, policyholders are entitled for claim deduction of Rs. 5,000 against preventative medical check-ups under Section 80D of the IT Act. This exemption is within the standard limit under Section 80D (Rs. 25,000 for self, partner and children, and ₹50,000 for senior citizen parents). Whether an individual is paying health premium for critical illness insurance or indemnity based insurance i.e. family floater plan or a senior citizen health plan or individual mediclaim policy, they are eligible to get tax rebate through Section 80D.

Sujit Bangar, Founder, Taxbuddy.com

We all are aware about health insurance benefit for tax deductions. Where we get confused are two things.

Firstly , deduction for health insurance is different from deduction under 80C bracket. This health insurance deduction is over and above 150k limit of 80C.

Secondly, we all do regular health check up. Especially, everybody amongst us has done RTPCR test once or twice. This expenditure can be claimed as deduction u/s 80 D upto ₹5,000/- . We should not mis out on this.

Pankaj Vashishtha, CEO & Co-Fouder, Policy Ensure

Health insurance policies in India offer individuals several tax benefits under Section 80D of the Income Tax Act. Taxpayers can claim a deduction on the premiums paid towards their health insurance policies for themselves, spouse, dependent children, and parents. The deduction amount varies based on the age of the insured and the type of policy. Individuals can claim a deduction of up to Rs. 25,000 for the premium paid for themselves, their spouse, and dependent children, and an additional deduction of up to Rs. 25,000 for the premium paid for their parents who are below 60 years of age. For individuals above the age of 60, the deduction limit is increased to Rs. 50,000.

Moreover, individuals can claim a deduction of up to Rs. 5,000 for preventive health check-ups for themselves, their spouse, and dependent children. In case of any claim made under the health insurance policy, the amount received by the insured or his/her nominee is tax-free. However, the total deduction under Section 80D cannot exceed Rs. 1,00,000 for individuals and Rs. 1,50,000 for senior citizens. To claim these deductions, individuals need to pay the premium through a mode other than cash. Barring the tax benefits of Health Insurance the primary need for Health insurance is for the purpose of security and safety of the individual’s family and his loved ones.

Shilpa Arora, Co-Founder and COO, Insurance Samadhan

Health is wealth, and so is a well-planned tax strategy. By investing in a health insurance policy, not only do you secure your future health but also enjoy significant tax benefits. Under Section 80D of the Income Tax Act, 1961, you can claim tax deductions for the premium paid towards your health insurance policy. For individuals below 60 years of age, the deduction limit is up to Rs. 25,000, while for senior citizens, it goes up to Rs. 50,000.

Additionally, if you purchase health insurance for your parents who are senior citizens, you can claim an additional deduction of Rs. 50,000. That’s not all, if you or your parents are super senior citizens (above 80 years), the deduction limit goes up to Rs. 1 lakh. So, investing in a health insurance policy not only offers financial protection during medical emergencies but also helps you save taxes. It’s a win-win situation for you and your loved ones.

Babita Rani, Tax consultant

Health insurance can prove to be a practical and profitable investment choice when you begin to plan your investments for the upcoming fiscal year and hunt for tax savings in the process. It is a win-win situation since it not only offers you financial security in the event of a medical emergency but also offers tax advantages.

Benefits of using a health insurance coverage to save on taxes

1. Maintain financial security and safeguard your money amid medical crises.

2. Because the amount you pay for premiums is taken from your taxable income, you should reduce your tax deductions from your wage.

Plans for health insurance offer two benefits for the price of one. They give you the much-needed financial security you require through a variety of coverage benefits as well as income tax advantages on the premiums you pay in accordance with the 1961 Income Tax Act (Section 80D). If you purchase the coverage for yourself, your parents, your dependent children, and your spouse, you are eligible for these tax benefits. Please read on to find out more about it in depth and detail. the 1961 Income Tax Act’s income tax exemption (Section 80D)

According to the 1961 Income Tax Act, the premium for a medical insurance coverage is subtracted from taxable income (Section 80D). The maximum deductible is ₹25,000, however for seniors it can be increased to ₹50,000. (from 1 April 2018).

Ajay Shah, Director & Head – Retail, Care Health Insurance.

A Comprehensive Health Insurance plan secures an individual’s health by giving access to quality healthcare. It also safeguards their wealth, by helping them save tax on premium paid of upto ₹75,000. As per Section 80D of the Income Tax Act, policyholders can claim a tax deduction on the premium paid towards health insurance policies for themselves, spouse, dependent children, and parents.

The maximum limit on premium for individuals below the age of 60 years is up to Rs. 25,000 per financial year, while if senior citizens purchase the Health Insurance, premium amount on which tax can be saved can go upto Rs. 50,000.

This benefit can also be claimed by an individual who buys a health insurance policy for his or her senior citizen parents. Besides, it is also important to note that the tax benefits are applicable only if the premium is paid through a non-cash mode and the policy is in name of the person claiming the deduction.

Vikas Mahajan, Director & Head-Finance & Compliance, GramCover

In India, health insurance policies offer various tax benefits to the policyholders. Under Section 80D of the Income Tax Act, individuals and Hindu Undivided Family (HUF) can claim a tax deduction for the premium paid towards their health insurance policies for themselves, their spouse, dependent children, and parents or any payment made on account of preventive health check-up of the parent or parents of the individuals.

The maximum tax deduction limit is INR 25,000 for individuals below 60 years of age and INR 50,000 for senior citizens aged 60 years and above. This tax benefit not only helps individuals save money but also encourages them to invest in health insurance, ensuring financial security during medical emergencies.

Kamal Narayan Omer, CEO, IHW Council

Out -of -Pocket-Expenses are a major concern when it comes to accessible and affordable healthcare to a vast majority of population in our country. The government has been doing phenomenal work when it comes to health insurance of the most vulnerable section of the population. Health Insurance can be a major game changer for large part of the population as apart from safeguarding the patient’s pocket from catastrophic medical expenses, it also helps in availing tax benefits on Section 80D of the Income Tax Act.

This makes health insurance policies a win-win situation and a wise investment for the good health and wellbeing of our families. However now that the healthcare discourse is moving from curative to preventive, the gamut of services covered under the insurance schemes should also shift from treatment to diagnosis including important and expensive tests. Also, the whole process needs to become more patient-centric sans the hassles of the paperwork and formalities involved, which are an added stress on the patient’s family.

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Policy Ensure March 27, 2023 0 Comments
Blog

Future of Insurance in India

India’s insurance market has undergone numerous changes and is one of the fastest-growing markets today. The pandemic has sped up the industry’s rapid digitalization, reflected a rise in its demand, necessitated the development of new products, and more. Furthermore, the prospects show there have been disruptions owing to the extraneous factors that have led to the evolution of the industry itself. According to IRDAI, the sector has witnessed growth between 12 and 15 percent over a five- to six-year horizon of Insurance in India. 

Evolution of the insurance industry

The history of insurance in India is deeply rooted, and the journey extends over 200 years. Business-wise, life insurance was introduced in 1818 when the Oriental Life Insurance Company launched in Calcutta. However, during this era, the market was dominated by foreign insurance offices. Then, in 1912, the Indian Life Assurance Companies Act emerged as the first statutory body to regulate life insurance in India. The nationalisation of the insurance sector happened in January 1956 with the emergence of LIC (Life Insurance Corporation), which subsequently absorbed a total of 245 Indian and foreign insurers. Until the 1990s, the LIC had a monopoly in the market until the insurance sector reopened for the private sector and the changes started to show up.

With the recommendations of the Malhotra Committee, IRDA (the Insurance Regulatory and Development Authority) was incorporated in early 2000 as a statutory body to regulate the insurance industry, and it changed the landscape of the industry irrevocably. Over the past two decades, the insurance market in India has experienced impressive growth, thanks to increased private sector involvement, better distribution capabilities, and significant increases in operational efficiency. The insurance sector has never looked back since the sector underwent liberalisation, and it is now one of India’s most competitive and developing industries. Today, there are 34 general insurance companies and 24 life insurance companies, according to IRDAI. Furthermore, the total addressable market (TAM) in FY 22 was $66.5 billion, according to Redseer Consulting, and it is anticipated to reach $222 billion by FY 26. Despite the stunning numbers, India is underinsured as a country.

Three separate milestone events:

  • Nationalisation of General Insurance Companies during 1972, where in 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd 
  • IRDAI opened the market for private insurance companies in the year 2000, that helped boost insurance penetration in the country 
  • Introduction & licensing of standalone health insurance companies by IRDA in the year 2006

 Have resulted in more focus & penetration of insurance in the Country

Challenges and opportunities

The insurance industry in India faces challenges that need to be addressed in order to ensure elevated growth. There is significantly more population living in rural areas than in urban areas. According to the estimates of the World Bank, roughly 65% of the population lives in these areas. The issues arise because there are relatively few buyers as well as sellers of insurance in rural areas. Some of the main reasons for its low penetration in India include inadequate insurance awareness, gaps in product understanding, and the value of the return on investment of the insurance purchased. Another significant challenge is getting insurance distribution to every area within the last mile. However, not everything is doom and gloom.

The Covid dramatically increased public awareness of health insurance, resulting in a surge in policy purchases. The other insurance products, however, still experience slow growth. Insurance penetration in India during 2021–22 was 4.2 percent, which remained the same as in 2020–21, according to the Annual Report of IRDAI. However, in India, a number of regulatory changes are being implemented to boost the penetration of insurance, boost capital inflow, boost valuation, and ease the entry of small, specialised, and niche players. The increase of the FDI, the General Insurance Business Amendment Bill (August 2021), the introduction of the National Health Stack, and disbursing huge amounts of capital for the development of the industry are some of the key examples. As a result, today, with the entry of private players who are targeting the underinsured market and the rising use of the new distribution, the long-term expansion of the industry has been facilitated by the use of new distribution methods and technological advancements.

Rise of tech-based insurance

India’s insurance industry has embraced technology’s advancement. Today, it uses Blockchain, machine learning (ML) to automate claim management, the Internet of Things (IoT) to personalise insurance pricing, and telematics for auto insurance. According to the India Fintech Report 2022, a number of insurance businesses have emerged that have enhanced their core offerings by implementing various technologies like AI, IoT, ML, and various other software. Additionally, in the years following Covid, the sector has become more digital. Insurance companies have also improved their digital platforms by replacing outdated systems and adding virtual assistants. The customers are also using more portals and apps, per the National Investment Promotion & Facilitation Agency’s data. They are preferring digital insurance options; for GI (General Insurance) and HI (Health Insurance) products, 73% and 62% of customers, respectively, preferred the online mode. As technology becomes more prevalent in the industry, more people will have access to insurance and will connect with the insurance industry. The data clearly points towards a trend that though the consumers are using the online tools to compare and research the various insurance products, they however, prefer offline support to understand the intricacies and ultimately making the final purchase. 

Despite the technological advancements, there is still a requirement for the human touch in the insurance industry. As the products are complex, the customers may not understand the technicalities or the jargon of the industry. Rural residents tend to be less tech-savvy, so there is a clear need for knowledgeable agents who can guide clients through the complexities of their policies and make sure they are adequately covered. Additionally, they can offer advice on the different kinds of policies that are available and assist clients in selecting the one that is most appropriate for their requirements. Therefore, the growth of the industry will be assured with the amalgamation of technology with the human touch. 

Way forward 

The future of the insurance industry in India looks promising owing to several changes in the regulatory framework, technological advancements, government support, and increasing awareness. The insurance industry in India is likely to introduce new trends like product innovation, multi-distribution, better claims management, and regulatory trends in the Indian market as incomes rise and purchasing power and household savings grow exponentially. According to a recent research report by Swiss Re, the Indian insurance industry is poised to become the sixth largest market by 2032. 

The insurance industry plays a vital role in the financial sector. The insurance companies, with their accumulated funds from premiums, invest in ways that contribute to the growth of the economy. The organised insurance system offers numerous direct and indirect advantages to the individual, his family, business, community, and country as a whole, as well as to industry and commerce. As a result, the expansion of the insurance sector in India will contribute significantly to GDP growth. For this to happen, there is a pressing need to penetrate the underinsured markets.

However, it is very evident that Phygital is the way forward as, in spite of technological advancements, the human interface will continue to play a big role in the penetration of insurance in the country. Also, it is poised to be one of the largest employment generators for the educated youth in the country, a sector that brings out the entrepreneurial side of the youth and thereby offering excellent growth opportunities while contributing to the growth of the nation.

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Policy Ensure March 25, 2023 0 Comments
PR & News Update

Maximising Your General Insurance Benefits for Optimal Wellness

General insurance benefits provide a blanket of financial protection from the uncertain risks posed by medical emergencies, diseases, accidents, and more

In times of uncertainty or emergencies, arranging a substantial amount of cash instantly can turn out to be a liability for an individual. General insurance in such cases provides a blanket of financial protection from the uncertain risks posed by medical emergencies, diseases, accidents, and more. With the right insurance at your disposal, you get reimbursed in such situations, which makes it a lot easier to manage the heavy expenses.

However, as understanding insurance policies can be complex, not everyone can procure maximum benefits out of them. But there are certain measures you can take to utilise it in an efficient manner.

Right policy, more benefits

Today, health problems have become way more common in senior citizens and younger people alike. With the increasing costs of treatments, medicines, and diagnoses, it is better to have a general insurance policy at your disposal. However, choosing the right policy can and will help procure the complete benefits. You need to check your requirements first. While someone may have individual requirements, on the other hand, some people may require a family floater plan. Furthermore, a high claim settlement ratio can help increase the chances of getting a claim.

Knowing the coverage

Purchasing general insurance for yourself and your loved ones is an optimal thing to do in order to live a stress-free life. However, before getting a policy, reviewing and knowing the limits and exclusions carefully is also necessary. Insurance coverage can be considered a financial safety net. It is a financial protection that is given to the insured in case of any adversities. The premium you pay sets a limit for your coverage, and you cannot make claims exceeding this particular amount.

Knowing this will not only help you understand the policy in a better manner but will also aid in making informed decisions. The information can be garnered with the help of an insurer or an agent, who can help you understand the necessary details before the purchase.

Going cashless

In this era of digitalisation, we have the provision of going cashless, and general insurance is no exception. Several insurance companies in India are offering cashless facilities. As the name suggests, the insurer does not have to pay a rupee from their pocket while their medical expenses are taken care of.

A cashless claim has its own benefits and convenience when it comes to medical emergencies, which usually take a toll on the patient and their family. With cashless general insurance, the insurance company deals directly with the hospital, as they have their own established networks. Therefore, going cashless is a good option in order to avoid any unnecessary expenses.

Choosing network hospitals

One of the common pain points in general insurance is when a policy does not cover all the expenses and the insurer does not cover 100% of the claim amount. A lot of the time, a patient or their family might not understand the situation, but the bill post-hospitalisation can come as a shock. However, this can be avoided with a planned hospitalisation. The insurance providers give you the option of choosing from a network of hospitals.

These network hospitals are verified, they provide quality treatment, and they ensure that the policyholder gets a discounted rate as they have agreements with insurance companies. Knowing this can save a lot of expenses, however, you must also check out the breakup costs in order to know which hospital suits you best. This information might not be readily available, so you need to approach your insurer or an agent to learn more.

Taking the provision of preventive services

There is no doubt you can plan for an emergency; however, you can be strategic about the timing of your planned check-ups and screenings. Preventive care or routine care helps a person detect a disease or any medical problem that can become daunting for them later in their lives.

Several general insurance benefits providers include coverage of preventive care in their policies. Therefore, before purchasing the insurance, you must get this benefot included so that you can save on any sudden out-of-pocket costs. This can include any annual check-ups, screening for conditions, immunisations, or more. Utilising this benefit can not only help you live a healthy life but also avoid any costly medical bills.

Learning to claim promptly

In some cases, policyholders are reluctant to report an insurance claim, but that can lead to heavy costs in the end. If you fail to report a claim properly, it can be a violation of the policy and might result in the claim being rejected by the insurer. Promptly claiming in such a case allows insurers to act quickly and minimise the losses as much as they can. The sooner the claim is managed, the better, as it will cost less. If you want your insurance policy to work for you at the right time, prompt reporting of claims gives you this benefit. For this, it is necessary to make sure that you provide all the necessary documentation to avoid any delays or denial of benefits.

Using telemedicine services

Telemedicine is a convenient and affordable way to receive diagnoses, consultations, and treatment. Owing to its impeccable results in pandemics, telemedicine’s popularity has gained traction. Whereas regular consultations with a medical professional are permitted under the terms and conditions of the policy contract, the Insurance Regulatory and Development Authority of India (IRDAI) has requested that the insurer permit claim settlement for telemedicine consultations. Hence, you can select the policy that provides coverage for telemedicine to avail the benefits.

All things considered

By taking care of yourself and adhering to best healthcare practices, you may be able to reduce your chances of becoming ill and developing chronic diseases. It is captivating that insurance companies might also give such policyholders discounts on premiums or other rewards for following a healthy lifestyle. As a result, it may be lucrative for you in every sense. However, as an alternative, General Insurance Benefits are a tool that can help you maximise your wellness. Furthermore, this is only possible if you take full advantage of its benefits. To do so, you must be aware of your policy, use cashless facilities, use preventive services, select network hospitals, and submit claims on time.

Furthermore, before purchasing any policy, you must take some time to filter it and have a clear understanding of which plan will suit your needs the best. When in doubt, it is always better to get an expert opinion, as it can not only save you time but also ensure that your insurance needs are fulfilled in a hassle-free manner.

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Policy Ensure March 24, 2023 0 Comments
Car Auto Motor Insurance Reimbursement Vehicle Concept
BlogVehicle Insurance

How To Check Whether Your Car Insurance Policy is Genuine?

Car Insurance is mandatory according to the law, also, to secure your travel of any kind. It helps us to raise claims during accidents or any harm which may happen to the vehicle while its utilization. We all want the best deal for our Car Insurance Policy, but that should not let us forget to check the genuineness of the insurance and its provider. You might fall prey to fraudsters if you are not doing your due diligence while purchasing the policy.

Becoming a victim of fake insurance policy can create problems while claiming the policy.

However, there are some methods through which you can check the authenticity of the policies –

Easy Ways to Check Whether your Car Insurance Policy is Genuine:

 

Speak With Your Insurance Company:

One of the easiest ways to validate the authenticity of your insurance policy. You can contact them through their toll-free number or by sending an email to the customer service team, which can be found on their website or mentioned in the policy document.

In case you are not satisfied with these ways, you can visit the nearest branch office of the insurance company and get your answers. You may also reach out to them through their social media handles such as Twitter or Facebook account.

If you have purchased your car insurance policy long back and not sure if it’s genuine, call the insurer’s customer care and verify the current status of your policy. This way you can eliminate surprises when you raise or register a claim.

Pay by Cheque/Credit Card/Online:

Never pay by cash. Some of the most accountable modes of payments are through cheque/credit card/online (net banking), which are the recorded verified transactions. Also, new-age payments transactions such as digital payments are secure and fast compared to conventional methods of payment. One great pro of such payments is that you can know the beneficiary account details for future.

 

Collect Your Receipts of the Premium:

Ensure you take a receipt for the premium paid and save them as these serve as a proof of payment. With new-age digital transactions, you’ll receive a soft copy of the receipt by email, which is the policy document, or you could simply log in to your account and view or download the receipt of payment.

Check Policy Verification Links:

Many insurance companies have a policy verification link to check if your insurance policy is fake or genuine. You’ll find ‘Online Policy Verification’ option on the insurance company’s website. Enter the policy number to check if your insurance policy is genuine. If you find out that the policy number is invalid, call the insurance company’s customer care or write an email to check the authenticity of the policy.

You could also log in to your account on the insurer’s website after buying the policy to verify the authenticity.

Check the Existence of the Policy:

If you are approached by an agent or an insurance company that you have probably not heard off, verify the details in the official website of the insurer. If an agent is trying to sell an unknown policy, you can verify the details online and avoid making an unwanted deal with the agent.

Check Essential Details:

Make sure important information is mentioned in the policy document correctly. Details such as No Claim Bonus (NCB), Insured Declared Value (IDV) and the deductibles need to be accurate. One of the easiest ways to identify fraudulent insurance is if the premium offered by the insurer is very low. There’s a possibility that the agent might alter the NCB and IDV to reduce the premium. If you find that the NCB and IDV are not mentioned correctly in the policy document, get it immediately corrected with your insurance company to avoid any unfortunate circumstances in the future.

Sign the Proposal/Cover Note Yourself:

The proposal form has the information about your vehicle insurance and it’s important that you sign it and ensure all details are correct. Online form can also be filled if you have opted for an online insurance. This includes information such as the make and model of your car, engine capacity, whether it runs on diesel or petrol, etc. You can enter all the required details on the form or verify the details entered by the agent or the insurance company before you sign the proposal form to ensure the authenticity of the policy.

Verify Through QR Code:

The Insurance Regulatory and Development Authority (IRDAI), which is the governing body of the insurance industry, has made it mandatory for every insurance policy that’s being sold to have a QR code. This code helps you to check the genuineness of the policy. You can scan the QR code on your smartphone by utilizing a QR scanner app. Upon scanning the code, you’ll be able to view the status and the information related to your insurance policy.

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Policy Ensure August 22, 2022 0 Comments
PR & News Update

“Save Water, Save Life”

A drop of water is worth more than a sack of gold to a thirsty man!
We are so glad that Policy Ensure was a part of ‘Save Water, Save Life’ Marathon Run for a cause at Shri Maheshwari Samaj, Jodhpur!

The event was extremely energized and fun-filled with people full of love & excitement.

We urge you all to save water because water is not infinite and we must do our best to conserve it!

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Policy Ensure June 6, 2022 0 Comments
PR & News Update

India’s 1st and fastest growing PHYGITAL insurance distribution network

Policy Ensure – India’s 1st and fastest growing PHYGITAL insurance distribution network.

Non-metro cities will have more options now with easy access

Indian is an ever ever land when it comes to opportunities, putting innovative practices and even to witness evolving preferences for products and services. Just that India has its own peculiar ways of adopting and accepting new business models and the related PHYGITAL insurance distribution structures.

What works in a developed country may not work in India in the same format.  It surely needs a local tweak with no compromise in quality and credibility of product/service provider.

The insurance business is no exception to the above. It becomes even more significant if the growth plans are really big to penetrate in the hinterlands that are full of business opportunities waiting for someone to crack the code of acceptance!

Times of India in its recent article stated: The unexploited insurance market of rural India, highlighted that at present, life insurance coverage in non metro/rural India is set at a mere 8-10% while less than 20% of the rural population has any form of health insurance. Also, 95% of Indian housing lacks any form of property coverage. India has extensive geographic and economic variations causing the low coverage rates prevail in the country. Additionally, several internal challenges still exist in the country, including distributional challenges like last-mile access, lack of sustainable products, transactional inconvenience, among others.

Policy Ensure, since its inception in 2017, was clear with its strategy to cover the ‘real bharat’ comprising of tier2-3 cities (not rural as of now) when it comes to selling insurance.  “The journey however was arduous while building that network” says Pankaj Vashistha, Co-Founder – Policy Ensure.

While we were clear it has to be made with the mindset of reach2each in terms of individuals and households with the seamless connect surpassing infrastructural constraints without losing on human to human (H2H) touch– adds Pankaj.

That’s where his more than three decades of experience (before setting up Policy Ensure) came handy while understanding and building the insurance distribution networks for Policy Ensure.

“The hybrid/blended approach will ensure reach2each. We added digital to physical insurance distribution network to compliment and cover the gap areas arise due to physical access constraints. And it worked!” – told to us by Rahul Mishra, Co-Founder, Policy Ensure

Rahul also comes with more than three decades of experience in business strategy, network building in insurance sector and few other industries.

“There is still so much to do as the markets are really big. Even 300-400% YoY can be easily achievable” shared Rahul

The PHYGITAL model to build insurance distribution network helped Rahul and Pankaj to crack that ‘code of acceptance’ to the full view business opportunities from tier-2-3 cities.

Customers in these cities not only got the never before access to the different insurance options and portfolios (otherwise restricted to only metros or very few growing cities) but also got the ease of getting them with less documentation hassles or physical presence constraints.

As expected, Policy Ensure set the bench mark with the phenomenal growth in less than 5 years covering 6000+ pincodes, covering in 700+ RTOs PAN India and more than 2 Lakhs happy customers under its belt since inception.

“For us the insurance is as good as a social security number while living in smaller cities. We feel secured. No government card can give us this kind of a real peace of mind especially in Covid times. Now the problem of limited options is also solved by Policy Ensure. They even completed the entire process digitally that we could never be able to do by our own. Our time got saved, got the right information and didn’t go thru any hassles”- shared by one their happy customers

Policy Ensure is now all set to witness the next level of growth in 2022 that may go with more than 100% rate on performance metrics reaching deeper into Bharat in their endeavor of making Bhavi Bharat with network of karmath micro insurance entrepreneurs across Bharat.

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Policy Ensure May 30, 2022 0 Comments
PR & News Update

No More Mis-Selling of Insurance in non-metro cities.

“It’s not just the insurance you have provided us with. It’s like a social security for us. Better than any government card. Their benefits don’t reach us. And until now it was difficult to trust the insurance companies or their agents for the fake commitments, they have made to us for years- just to sell the policy,” These are the words of one the happy customers of Policy Ensure from a smaller city.

Insurance mis-selling is not something new.  The government regulators like IRDAI are working towards curbing it however are not very successful because of geographical constraints and mis representation of information especially in tier 2-3 cities.

“Over the years, insurance is probably the one financial product that has been mis-sold the most. One reason is lack of involvement of the buyer and the other reason is false explanations by the agent.”—Outlook (January 2022)

Policy Ensure took an exhaustive look into this challenging area of concern for non-metro cities and customers to understand the different forms of mis-selling such as forging benefits, exaggerating benefits, misrepresentation of the policy, miscalculating benefits, bundling insurance policies, or false promises of bonus and additional benefits.

Eventually there is a financial loss as the premium paid gets wasted and the features or benefits are of no use to the customer. Sometimes policy sold is not best suited to their requirements, they stop paying for it and the premium paid in the past gets wasted.

It doesn’t stop here. Even the bigger loss is when the beneficiary in the customer’s family who was supposed to get these benefits or sum assured, is left with no support in the long run.

“Policy Ensure would stand out as first preference of the insurance customers if able to address this bigger issue of mis-selling along with relevant reach to every part of real India i.e Bharat” says Rahul M Mishra, Co-founder, Policy Ensure.

That’s where the blend of digital with physical distribution network was done by using PHYGITAL approach.

“This blend brings in the benefits of Insurance aggregator model with complete information availability about insurance products through digital assets and platforms with no ambiguity or mis-representation. At the same time, it added more value by putting a well-connected physical distribution network in place with technology enablement.  As we worked towards and envisioned for Policy Ensure to bring the necessary credibility to insurance sector” shared Pankaj Vashistha (PV), Co-Founder, Policy Ensure.

The PHYGITAL approach has enhanced the awareness among buyers in a very friendly way. Customers can get involved in the buying process. They can look at the complete information about different plans in a transparent manner as published. Then there is also a local hand holding available of Policy Ensure team so that the buyers can make the right selection by comparing plans, benefits, Advantages, features and quotes given by different insurers.

“In coming days chances are very high that customer will start seeing insurance as ‘insurance only’ rather treating it as some kind of an investment plan or to buy because of freebies upon purchase of insurance policy”- added PV

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Policy Ensure May 30, 2022 0 Comments
PR & News Update

India’s first and fastest growing PHYGITAL insurance distribution network

(Non-metro cities will also be insured now with no misleading information)

Press Release Policy Ensure:

31st March,2022

With the aim of making insurance easier for the non-metro cities, Policy Ensure was started in 2017 by seasoned professionals Rahul M Mishra and Pankaj Vashishtha. The founders bring in more than three decades of individual experience mostly in insurance domain with strong expertise of setting up successful distribution channels while working with big names (prior setting up Policy Ensure) like Reliance General Insurance, IFFCO Tokio and Bajaj Allianz General Insurance.

The idea of Policy Ensure sprang up to address the problem of misleading insurance selling in non-metro cities, due to the lack of awareness of its importance and non-availability of credible infrastructure.  To fuel its futuristic outlook of creating a vigorous and credible insurance environment, Policy Ensure has inaugurated its new office premises at Time Tower Sector 28, Gurugram, Haryana.

Through Policy Ensure, the founders have put forth righteous efforts to bridge the insurance gap by providing accessible infrastructure for non-metro cities via its PHYGITAL model, hereby promoting insurance for all sections of society. PHYGITAL is an interesting combination of physical presence on ground complimented with robust technology platform for convenience, transparency and efficiency.

“Our objective is to increase insurance penetration in the country by making insurance easily accessible to all at grassroot level, giving a much-needed real social security which otherwise is a challenge to get in tier 2-3 cities,” said Pankaj.

While Rahul added during the office launch- “Since its inception in 2017, Policy Ensure has taken insurance business to a very large untapped market beyond big cities with the agenda of scaling it up to the next level”. In his words “that’s the reach Policy Ensure has proudly made from India to Bharat”. Hereby going in lines with New India’s vision and mission for BHAVI BHARAT and enabling it with Digital India.

Treading the road to success with strong guiding principles of TRUST, TRANSPARENCY and EFFICIENCY, Policy Ensure has crossed a new milestone of 1 LAC+ customers in this short span and very soon shall be going for the funding in lines with its plan to scale the operations as the market is very big and even bigger insurance needs to be catered.

Some of the insurance partners of Policy Ensure are, HDFC ERGO,  TATA AIG, Go Digit, and many more. The insurance provided currently is motor insurance, health Insurance, accidental Insurance, home insurance, Covid-19 insurance and cattle insurance. Policy Ensure is licensed as Hudson Insurance Brokers Pvt Ltd by IRDAI.

For further queries contact:

Policy Ensure,

Hudson Insurance Brokers Pvt Ltd

207, 2nd Floor, Time Tower, Sector 28, Gurugram, Haryana – 122001

Mobile: +916283062011

Email: helpdeskpos@hudsonbroker.in

Follow- Facebook, Instagram, Twitter,  LinkedIn

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Policy Ensure May 30, 2022 0 Comments
PR & News Update

Fintech, Edtech etc are cluttered or done, investors are now looking at InsurTech as redefined by companies like Policy Ensure

Fintech, Edtech etc are cluttered or done, investors are now looking at InsurTech as redefined by companies like Policy Ensure

As per google search- Insurtech refers to technological innovations that are created and implemented to improve the efficiency of the insurance industry. Insurtech powers the creation, distribution, and administration of the insurance business.

An Insurtech ecosystem is made up of an integrated and well-orchestrated set of services and technologies to provide consumers with prevention, assistance and emergency services, remedy and monitoring and insurance.

“The global insurtech market size is expected to reach USD 152.43 billion by 2030, registering a CAGR of 51.7% from 2022 to 2030. Shift towards cloud computing.”—Globe Newswire, March, 2022

Covid Times have given a significant attention and importance to tech enabled insurance services. The sector has grown in a big way just like healthcare, digital and essentials goods.

Investment interest in insurtech comes from the venture capital sector, hedge funds and private equity capital, as well as established property/casualty insurers, or “incumbents.”—businessinsurance.com

As an investment portfolio, the sector is still very lucrative if scanned with investor’s eyes.

  • The entry is available to only sincere players with commitments to government regulators.
  • The ones who understand this sector exhaustively with governance structure of core insurance.
  • It is not cluttered with too many players or driven by offers or infusing loads of funds only.

“For Policy Ensure, we started in 2017 with only seed fund of just a million dollar, today we have a reach at more than 6000 pin codes and a revenue –valuation of 100X. Still there is so much to grow. The market is big and sincere players are very less.  We shall be now going for formal phase of funding to fuel in the rapid growth” says Rahul M Mishra, Co-Founder, Policy Ensure.

“We’ve been predicting the pace of investment would continue due to the opportunities to transform the industry. The disruptive technologies in the industry continue to attract interest from investors,” said David Hoffman, Westfield, VP and Research director at Forrester Research Inc.

The investments in Tech firms and startups are preferred by investors these days. However, investors are also critical on the RoI that they eventually get from the time they invest and when they want to make exit.

“That’s where the InsurTech is a righteous option for them. If driven by seasoned industry professionals and not with a typical startup mindset of pumping in money and shall see later the outcomes.  The credibility matters a lot in this sector as well as the physical distribution network. The RoI is massive and the numbers are real” as detailed by Pankaj Vashistha, Co-Founder, Policy Ensure. 

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Policy Ensure May 26, 2022 0 Comments
Blog

Insurance myths to be busted right now!

Black swan events like COVID 19 have taught us the importance of having an insurance cover, however still, insurance is still plagued with several Insurance myths around.

The idea here is to make you aware of the realities and to bust the myths.

Myth #1

Insurance is only for “Tax savings”

Tax deduction under Section 80C is not the only advantage of insurance. For eg, in your absence, the payout from your life insurance will also cover the monetary needs of those who are dependent on you. The maturity benefits from your insurance product can act as a corpus for many future financial goals.

Myth #2

Insurance companies don’t pay a genuine claim

Everyone has trust issues, and this is a very common misconception that despite paying premiums, insurance companies reject the claims files by the policyholder. It could happen because the companies are fraud, or don’t want to settle claims. However, this is not true. Insurance companies can not reject your claims if the paperwork at the beginning has been done precisely and the signed and authentic documents are with you during the claim.

Myth #3

Young and healthy people do not need health insurance

Are you kidding? Didn’t you know that prevention is better than cure? Also, the ideal time to buy health insurance is when you are young and healthy. The policy purchased early and renewed regularly leads to better claims if and when required.

Certain maladies remain undiscovered until symptoms become evident. As per health insurance regulations, these pre-existing diseases are covered only after a person holds a health insurance policy for at least 48 months.

 

Myth #4

Buying insurance online is not safe

BIGGEST INSURANCE MYTHS EVER!

We buy medicines, clothes, food online. We are taking education online, medical advices online, then why not insurance? Online insurance processes are safe, and they give you more and more options to choose from. You can compare policies and purchase them according to your best interests.

The payment methods are also secured and transparent with options like – Net banking, Debit/Credit card, UPIs etc.

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Policy Ensure May 24, 2022 0 Comments