Monday, March 7, 2016

Five myths of Indians about Insurance - which cannot be uprooted

India is known to be a country of umpteen cultures and demographies. Language and cultural diversities naturally should impart a divide among the Indian population and has to be reflected in their views and behaviour.
surprisingly this is not the case when Indian views about Insurance is analysed. They are united to such and extent as if the beliefs are moulded centrally using a single cast.
Let us have a look at these deep rooted beliefs which I dare to call as myths.

1. Me and my family is Risk Proof.

Beliefs and thinking pattern of Indians are by and large inherited from the great Vedic age, which taught us to be optimistic, irrespective of the ups and downs of life. This great thinking which added to the inner strengths of Indians had helped them to reach and succeed in this global world.

This inherited optimism help them to stay reasonable while considering about getting insured against risks and other unfortunate events which may occur in their future life also. It helps them to stay blind to the unfortunate news events flooding around them in media.

Read More: Jeevan Labh - unique features

Saturday, February 20, 2016

All about Income Tax rules applicable for Life Insurance policies.

Income tax rebate is an add-on benefit, which comes as a value addition for your invaluable insurance policies. But income tax rebate is not the only implication of income tax to be taken care of.
Knowing more on how the tax laws become applicable on your insurance policies can, not only give rich payouts and  maximise the returns on your hard earned money but also it can bail you out from difficult situations in the future.
Generally speaking, Income Tax has implications on both the premium you are paying for the policy and the benefits you are receiving from the policy.

Income tax rebates on insurance premium.

Income tax rebate is available for the insurance premium under the section 80 C of income tax act, subject to the following conditions.
(A) Insurance policies taken after 1st April 2003 and on or before  31 st day of March 2012 is eligible for income tax rebate irrespective of the Sum Assured of the policy.
(B) Insurance policies taken after 31st March 2012 is eligible for income tax rebate only to the extend of 20% of actual Sum Assured of the policy.

Wednesday, February 17, 2016

LIC relaxes death claim investigation procedures for early claims

Time and again LIC has seen to be setting industry standards in death claim settlements among insurance companies of India and world as well.

Death claim settlement ratio is one of the greatest strength of LIfe insurance Corporation of India(LIC). LIC has settled 98.19%  of claims in the period 2014- 2015 as per the IRDA report. The claim settlement ratio of private companies stays way back at 89.4% only.

Recently LIC has decided to relax the claim investigation procedure of early claims further, through a new circular dated 30th Nov 2015.

A death claim falls under the category of early claim, if the claim occurs within three years from the date of issuance or revival of the policy.

Customer friendly moves like this from LIC has to be appreciated.

Lets have a look at new relaxations.


  1. Death claim investigation procedure will be waived if the sum Assured is not more than 1 lath , subject to the condition that the policy does not belong to high risk category.
  2. If a policy acquires paid up value after its revival and death claim takes place where in only paid up value is payable due to lapsation, the death claim investigation is waived.
  3. If death occurs due to accident, investigation procedure will be waived if Final police report, Postmortem Report etc, are submitted.
  4. Investigation procedure can be waived if the death occurs due to suicide which is proved by Postmortem report and Police report.

Download full circular on waiver of claim investigation procedure of early claims from here.

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