Life insurance

Why to have a Life Insurance?

  • Protection
  • Liquidity
  • Tax Relief
  • Money when you need it

History of Life Insurance

  • Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda.
  • Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870.
  • Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s.

Policy Claim

Life insurance claim can arise either

  • In case of Endowment type of Policies, amount is payable at the end of the policy period.
  • Discharge Form & Policy Document
  • On receipt of these two documents post dated cheque is sent by post so as to reach the policyholder before the due date
  • The gross amount consists of Basic sum assured and bonus if any.

2 Types

  • Premature death claim – within 3 years
  • Other claim – after 3 years

Intimation of death is to be given by a proper person in writing.

  • Original Policy Bond
  • Death Certificate
  • Proof of relationship with the deceased person

In case of Accidental Death

  • Postmortern Report
  • FIR Copy
  • Final Police Report is also required
  • Same as maturity claims, sum assured becomes payable on expiry of full term but on survival of the insured.
  • In policies like, money back plan for 15 years term, 1/4th of the sum assured becomes payable on the life assured on surviving 5 year, further 1/4th becomes payable after additional 5 years and rest balance at the end of 15 years.

Exclusions in Accident Benefits

  • Suicide or attempted suicide or intentional self-inflicted injury
  • Under influence of drugs or alcohol, narcotics or psychotropic substance not prescribed by a Medical Professional.
  • War, Invasion, Civil War, Riots, Revolution or any war like operation.
  • Criminal or unlawful act
  • Service in the military or police
  • Flying activity other than as a paying passenger.
  • Racing vehicle.

Ratings Of Insurance Companies In India - Top 5

Companies Market Share (2009) Market Share (2008)
LIC 64% 74%
ICICI Prudential Life Insurance Co Ltd 64% 74%
SBI Life Insurance Co Ltd 64% 74%
Bajaj Allianz Life Insurance Co Ltd 64% 74%
Reliance Life Insurance Co Ltd 64% 74%