Farmer insurance: A life saver

Farmer insuranceFarmer Insurance: A policy that was always needed…

A brutal truth:

5600 farmers had suicidal deaths in 2014.

As per the findings of National Crime Record Bureau (NCRB) this is exactly equal to 1 farmer dying in every 100 villages.

This figure was even higher in the year 2012 which was close to 14,000. Though it is significantly lower but is no where under control.

When the Reason was investigated then it was found that they commit suicides under huge and unbearable burden of debt. Continue reading →

Lapsed policy: How to revive it…?

Lapsed policy...How will you revive your lapsed policy…?

Oh, my God…

Did you miss the date…?

I request you not to panic, as it is nothing to worry about. Just simply read ahead.

Whenever you forget to pay premium on time then almost every insurance company provides you with a grace period. The period normally ranges from 15 to 30 days from the due date and totally depends on the company. There is nothing standard about it. You can pay your premium in this grace period.

Anyhow, Continue reading →

Insurance agents: Why don’t you trust them…?

Do you trust insurance agentsDo you believe in insurance agents…?

I think,

I already know the answer.

When it’s about money then we don’t want to trust even our “father” leave alone “insurance agent”.

We Indians actually are highly reserved in spending money as we are not that spendthrift.

But the case with insurance industry is little different. According to one survey done the trust factor with insurance industry is really-really low.

Earnest & young (one of the top 4 auditing firms in India) studied the relationship of 24,000 customers with their insurance agents. They found that almost 29% of the customers buying from agents end up forgiving their plans. And most of the time the product that gets affected are life insurance specific.

Now the question is…

Why don’t they trust…?

Why don't you trust...!

So,

What’s the reason, why there is such a low trust factor…?

The answer is…

1. Higher turnover ratio.

Good bye

The entire finance sector witnesses a very high employee’s turnover ratio. The things are even worse in their sales department. Because of this very problem the customer engagement is very low.

Selling a policy for an agent is more like achieving a target. They don’t feel like carrying along their newly build relation with them when they move. Moreover they don’t maintain a good communication with their clients once they sell.

No after sale service will only bring bad reputation to the company and you won’t be able to sell the next time.

2. Not enough good agents.

Good or bad

Becoming an agent is not difficult at all. If you have your 10+2 clear by any recognized institution then you would just need to pass a simple test that IRDA conducts. Once you clear that exam then you will be recognized as licensed insurance agent.

There is no other qualification required.

It is that simple.

This would mean that anyone with a degree could apply for an agent. Since there is no other control check done thus insurance agents lack professionalism. This unprofessional nature is sometimes not taken well by their clients and this is why they leave them.

3. Scams.

Fraud

In 2012, forbes reported that an insurance agent was charged in $100 million fraud.

Then,

We heard the news where an insurance agent swindled in total of $2.5 million from senior citizens. Then there is $200,000 fraud done again by an agent.

All these events when done by any industry professional then entire industry bear the shock. And this again brings distrust among their clients.

4. Commissions.

Commissions...

Insurance agents are not at all a burden if they are able to guide and save you money. But unfortunately this is not the scenario most of the time.

When they see that they will make more money selling one type of product then they become forceful in selling it. Rather than favoring their clients they favor commissions. This makes them more money minded and less client oriented. If you do the same then you will only loss clients.

5. Lack of knowledge.

Do you know what you are talking about...?

As already said that you need to have your 10+2 clear and you can become a licensed insurance agent in no time. Since this is the only requirement you need to have, thus anybody can be an agent.

Having +2 and passing IRDA exam is no guarantee that an agent will be able to answer all your queries. Thus no or lack of knowledge about the product they are selling only brings bad reputation.

All the above given factors add up to bad user experience and thus rather than believing agents on any fairground clients prefer to run away.

To combat this very issue of distrust the entire insurance industry must take some serious steps. Either there must be some quality check or training should be provided that teaches agents how to professionally deal.

Moreover,

Steps must be taken on the part of agents as well to be more engaging with their clients. They must be more frequent in their conversation with them.

Unless these measures are taken this industry cannot be rescued. Till then hope you always get a good insurance agent that puts you before his own commissions.

E Insurance: TELL ME everything about it…?

E insuranceE insurance: What it is…?

Before answering this question let me ask,

Do you have yourself insured…?

If yes, then,

Pat your back, as you have secured your financial future.

You have not only cared about yourself but have shown a sense of responsibility towards your family.

Now,

If you have yourself insured already then you must be facing one big problem, problem of handling your policy documents.

People always fear of losing their insurance papers.

They are scared of 3 things:

1. Physical damage:

Policy got shredded

You have to carry your insurance policy for life.

Thus,

There is a greater possibility that there can occur a physical damage to your documents.

Insurance is not something that you do and forget. It’s an agreement you need to secure for years.

What if, rodents tamper your policy in these years? If so happens,

Then feel sorry,

As,

You won’t be entertained by your insurer at the time of claim.

2. Documents misplaced:

Did I miss it...!

Oh my God,

This is the worst nightmare…

Your family member is in the middle of emergency and you are hunting for insurance documents but in vain.

Though it’s a horrible mistake but is common too.

You don’t frequently lay your hands on your policy papers, thus misplacing them is easy.

3. Theft:

Steal

We are living in a country where theft, cases of crime and violence are very common.

Though, law and order is there to keep a constant check on such activities. But still very often we witness such cases. Thus, considering anything safe in such an environment would be like “not facing the reality”.

Seeing this very problem, E-Insurance was introduced.

Thus,

Let’s check out what it is…? So,

What is E Insurance…?

Secure your data

Here “E” stands for electronic and thus is Insurance in an Electronic format. Under E-insurance your documents are digitalized and thus become accessible with a click of a button.

This means that,

You deal with less paper work and there remains no fear of your documents being stolen or damaged at all. Whatever you want would be just a search away, just open your laptop and there you have it.

Now how simple is that…!

So,

How it really works…?

Working

It’s very simple,

You open your E-insurance account like you open up your Demat account for share trading. And you have all your Insurance documents stored digitally.

Holding too many policies from different insurers…?

No worries,

You can have all of them digitalized under one account. This relieves you from buying and managing different E-insurance account.

Who will open my E-insurance account…?

Who will do it for me...?

To keep things simple, easy and accessible to everyone, the insurance regulator IRDA has authorized 5 major players the right to open “E insurance” accounts.

You can choose any of them, on the basis your accessibility. The companies you can make your choice from are:

  1. National Securities Depository Limited (NSDL): It basically deals with National Stock Exchange and is meant to hold securities digitally. Their database management unit is now authorized to hold insurance policies electronically.
  2. Central Insurance Repository Limited (CIRL): They are registered under companies act 1956. They are also certified from IRDA and are fully authorized to continue as Insurance Repository. Thus, you can have e-insurance account with them under full faith.
  3. CAMS Repository Services Limited (CAMSRep): It is one of the major providers of Insurance Repositories that is licensed by IRDA. They are different than their competitors in a way that:
    1. They are neutral entity thus confidentiality is guaranteed, and
    2. They have a presence in over 265 locations in India, which is larger than any entity.
  4. Karvy: They are among the top 5 financial servicing firms that services around 70 million investors. Services they offer:
    1. Distribution of financial products,
    2. Commodities broking,
    3. Personal advisory services,
    4. Merchant banking,
    5. Wealth management and
    6. Data management services.
  5. Stock holding corporations of India Limited (SHCIL): The company was incorporated in 2006 and now has over 250 branches within India. Their primary job is to digitalize document and maintain records. Since digitalizing securities is their only focus, thus this keeps them highly result oriented.

How you can get your account activated…?

Open your account by stepping up

The procedure is very much similar to how you open your Demat account.

Just,

Follow these simple steps and you will have your account up and running in no time.

  • First, head on to your chosen insurance repository from where you want your policy digitalized.
  • Fill out the application form with them.
  • Submit all your necessary documents like: your address proof, ID proof, cancelled cheque etc.
  • You will have your account opened and activated within 7 working days.
  • On activation you will receive your welcome kit with a pin. Sometimes a pin will be sent separately. Use your

Upon activation of your account you would be ready to electronically secure your insurance policy.

What you would need to pay…?

How much you will charge...?

Absolutely nothing…

What…!

Yes,

You would need to pay nothing. Insurance repositories are paid by the insurance companies themselves whose documents are being digitalized.

Thus,

You as a customer would be benefited for all the right reasons.

Is there a way to buy new insurance policy thorough your Repository…?

Yes, there is a way

Yes,

At the time of purchasing a new insurance policy, simply provide them with your E-insurance account number. And your policy will be reflected digitally within no time.

E insurance has all the good things to do to you. Thus, wait no more and get your account activated now.

Insurance Agent: Is he necessary…?

Insurance agentWith everything available online, what do you think…!

Is it necessary to have Insurance Agent…?

Today,

You can have everything related to insurance available on the internet. With every insurance company coming online, you can have your every query solved on the net.

If Insurance consultants are already there to help 24/7 and quotes being readily available,

Do you really feel the need to have an Insurance agent…?

Continue reading →

Best family floater health insurance plans in India

Best family floater health insurance plan in IndiaBefore we find the best family floater health insurance it totally makes sense to understand what it is…?

Family floater health insurance

It’s just like individual health insurance plan but with a difference.

Family floater health insurance is meant to float over your family with a single sum assured.

Thus, no matter who falls ill, the expenses will be paid by your insurer if their health is insured under family floater.

There are 2 main benefits of such insurance policy which includes: Continue reading →

Different company’s different insurance premiums…! WHY…?

Insurance premiumsWhy there is difference in Insurance premiums…?

Have you ever wondered…

Why there remains such a difference between companies offering same product with same tenure but with different insurance premiums…?

WHY…? WHY…? WHY…?

The answer is simple…

There is no one authority deciding premium for the insurance industry. It is decided by the companies themselves. Continue reading →

How to use insurance policy…? 7 important pointers

How to use insurance policy...?Not assisted properly…

You may end up getting more confused than actually buying insurance itself.

Why so…?

Because, you may not know:

  • How to use Insurance policy for your benefit…?
  • When the premium will be due…?
  • What is the grace period in-case you miss your due date…? And so on and so forth…

You may face many questions which you would want to seek answers…

But Thanks, that you are reading this post. Continue reading →