While many of us know about Insurance, the startling fact is that India’s insurance penetration at just 3.76% of the GDP is “extremely low” against comparable Asian countries such as China, Malaysia and Thailand as well as the global average, according to the central government’s Economic Survey of 2020-21.

India’s insurance penetration grew from 2.71% in 2001 to 3.76% in 2019 which is much lower than other global economies. India’s life and non-life insurance penetrations in 2019, at 2.82% and 0.94% respectively, are also significantly lower than the global average of 3.35% and 3.88%, respectively.

Insurance protection is all about staying protected for the unknown future. Your family’s protection starts with your awareness about the existence of risk and the nuances of Insurance. Here is a list of terms and things to know for choosing the right Life Insurance cover and for ensuring smooth claim settlement.

1) 100 percent disclosures in proposal, like Smoking, drinking, medical history, Income, family medical history, Covid History etc.

2) Fill and read the proposal form personally to ensure accurate data.

3) Ensure All premium payments on time.

‘Premium’ is the amount to be paid to the Insurance company to keep your policy active.

4) Update Nominee Name and address, especially if Nominee passes away.

5) In case of death, file a claim immediately without any delay.

6) Do medical check-up at the time of buying a new policy.

7) Understand Policy Clauses and Exclusions.

8) Inform your family members about your policy.

9) Keep the Policy Bond/Document safely and accessible to the family.

10) Understand, Claim settlement ratio by policies, while comparing Insurers.

11) Understand Amount settlement ratio: It is important to consider amount settlement ratio in addition to claim settlement ratio by policies, else insurers will clear low value policies and reject high value policies, and this could be misleading.

12) Claim rejection ratio:
The claim rejection ratio or claim repudiation ratio is important as the claim settlement ratio may be misleading when there are high volumes of claims under process and not rejected at the time of such calculation for a particular period.

13) Assets under management: With a larger AUM the company can invest and get better returns. A larger customer base also helps manage risks more accurately. The capacity to settle claims on time also increases.

14) Solvency ratio:
The solvency ratio is a measurement of a company's cash flow and its liabilities. In simple words, it helps you know whether or not the company has adequate funds to manage its short-term and long-term liabilities.

15) Have a Will mentioning the nominee as the beneficiary of your Insurance, especially if he is not an immediate blood relative like father, son or spouse.

16) Go with MWP option wherever appropriate.
Section 6 of the Married Women's Property Act (MWPA), 1874, provides that a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife.

MWP protects and ensures that the woman gets all the maturity proceeds independent of the financial liabilities of the Proposer.

17) Define an Insurance objective before choosing an Insurance product, like Income replacement, covering dependant family members, Insuring a family Life goal, Housing Loan liability Protection, retirement planning, corpus/pension creation, tax benefit, Interest protection, leaving behind a legacy, Pure Term/whole life/saving, etc. This helps you choose the product wisely and Insure adequately. A professional Insurance Advisor plays a key role in helping you articulate your objectives and recommending the right product as per the need analysis.

Remember that inadequate Insurance is as good as No Insurance, So Insure with a clear Objective, and not just for having some name sake Insurance.

‘Sum Assured’ is the amount to be paid by the Insurance company to the Nominee

‘Maturity Benefit’ is the amount to be paid to the insured for surviving the policy term.

‘Policy Term’ is the period for which the policy provides life coverage.

‘Premium Paying Term’ is the period for which premium has to be paid to the insurance company.

Your clear Insurance objective helps defining the Sum Insured, Policy Term and Premium Paying Term, and Maturity Benefit.

18) The earlier you buy an Insurance policy, the cheaper it will be. Younger people get Insurance cover at a very low premium and does not feel the pinch of the premium amount.

19) Probability of getting an Insurance cover: Get Insured whenever you are healthy and eligible. The chances of getting the Insurance is higher, if one does it before age related, infection, weight related, Critical Illnesses, or lifestyle diseases come up. There are many people who are unable to Insure themselves due to various health and weight related reasons.

Save your Medical Records: Discharge Certificate in case of Hospitalisation, X-rays/Scanning Reports, Histopathology Report, Vaccination Certificates Etc. You may need them for the purpose of Insurance.

20) Choose a professional Insurance Advisor, like you choose a doctor for your family. Your Advisor helps you articulate your needs accurately and choose the best suitable product. Finally it is the Advisor who stands by your family, while you are not there, to fulfil the promise of the policy.

Review of your Insurance Portfolio atleast once in a year. Apart from the annual review consult your advisor whenever there is a major life change or significant change in circumstances.

Not Investing sufficiently is a small crime, dying without adequate Insurance cover is unpardonable and a Big lifelong punishment to the family. Insure and Be Secure.

Dr. Ashok Chandran is a full time IRDA Registered Insurance Advisor and can be reached, for Consultations and Insurance Portfolio Review, on Mobile: 9821157708 or E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

We are on a Mission to Transform a Million Lives by 2030

Is your family really Covered with a sufficient Health and Life Insurance?

While we all are getting vaccinated on priority, many of us are still at high risk without getting the two most important Financial vaccinations ie: Life Insurance and Health Insurance.

Its high time to take cognisance of the fact that everything has changed, and we need to act as per the changing scenario.

Adequate Insurance cover is as important to all of us, as a PPE Kit is to a Doctor during these times.

All the traditional safety nets have been torn apart by the pandemic, be it your Financial Plans, Insurance cover or the Health Care Infrastructure.

Over 60 % population has no Insurance in India. Only a fraction of population has adequate Insurance.

Family and friends used to help in emergencies, but now many have been infected or have needy people in their families. Many people have lost their Jobs or Income too, and everyone is trying to help themselves and survive.

The costs are so high that You now have no option, but to be independent with adequate Insurance.

Life, Health and Personal Finances are no more as certain as it used to be and managing risk and financial planning requires help of professional Advisors. Health Insurance is no more just a financial cover but a life-saving tool to get the best possible treatment.

A person with lower sum assured chooses small nursing homes for treatment and then moves to better hospital and facilities only if his treatment demands the same. Thus in many cases precious time is wasted and life is endangered.

Higher Sum Insured includes all features and benefits of the policy. One should take the highest possible Health cover for all his family members.

We normally plan to leave our wealth for our family, with financial planning, however during Covid many people are leaving the families with multi-generational debts to repay. Insufficient Mediclaim can dig a unthinkably huge hole in your finances.

Insufficient Insurance is as good as No Insurance. Health care Inflation is more than double the normal inflation rate. You can expect Healthcare costs to double in 5 to 6 years; and it will continue going north as medical technologies, treatments and facilities are improving every day.

Thus a once good Traditional health cover of 5 to 10 Lac is insufficient and meaningless in today’s context. A day in a good multi-speciality hospital may cost you upward of 1 Lac a day for isolated ICU and doctor consultation.

Apart from the general increase in costs today and the expected inflation in the coming years, the following are some visible trends during the pandemic:

Entire Families are getting infected, unlike the normal times when treatments are generally required only for one person in the family at a time.

There are No Choice of hospitals; Getting a Hospital and the basic life-saving treatments itself is a big achievement. Earlier one can choose a less expensive hospital or make choices as per need.

Unlike the first wave of Corona people stay longer in Hospitals for 30 to 60 days of treatment, this increases the costs significantly for stay and treatment.

ICU/Ventilator and advanced treatments are common and may be needed for anyone anytime without notice.

Post Covid complications are uncertain and unknown; The side effects of vaccinations and Treatments over a period of time is unknown.

The new strands of Covid is not in anybody’s control.

The future impact of infections on co-morbid patients remains to be seen.

Post infection new Insurance policy/Higher Sum Insured comes under 3-4 year PED (Pre Existing Disease Exclusion) for Covid and related diseases. Insurance may also get declined depending on other health conditions. Thus it is imperative that you have a good cover while you are healthy.

The Grim reality is that a majority of the population in India is not only insufficiently covered but have no Insurance at all. We fail to prioritise the need to adequately Insure ourselves, and by the time disaster strikes it is too late.

Stay Safe, Stay Protected, Use Masks, Maintain Social Distancing, Wash Hands, Improve your Immunity with Exercise and Nutrition, Write your Will, Take adequate Health and Life Insurance. Have a review of your Insurance Portfolio done with your Financial Advisor today and do the best you can for yourself and your family. Share with your loved ones, ensure all families are Financially Vaccinated with a good Life and Health Insurance.

- Dr. Ashok Chandran
The Author is a Health Insurance Specialist and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or 9821157708.

As awareness dawns on the masses, the profession of Insurance has started getting the respect it deserves. Be it Life or Health or Property, wherever there is risk, one has to cover and protect themselves. Only a negligible small fraction of the Indian population is Insured adequately. It is our collective responsibility to bridge this Insurance gap.

Insurance is a must for all, its just that some people realise it too late. Some people avoid an insurance advisor and a conversation about the reality about death and health emergency. They end up penny wise and pound foolish and very often it is their families who suffer for a lifetime, for not heeding to the advice of the Insurance advisor.

Insurance is a noble profession, a life of protecting people against risks, A life of safeguarding the future of families. It is difficult to talk about death or health emergencies, but the Insurance Advisor does his best to show the reality to people day in and day out. People often are unable to accept the scary reality, and often look at Advisors as agents for commission; but the greatest happiness for a true advisor is when he is able to financially support you in a crisis through an Insurance claim. Helping a family to stand on its feet financially when the bread earner is gone or when their financial resources are drained due to illness or accidents is the job of an Insurance Advisor. Everyone needs an Insurance Advisor to keep him adequately protected, just like children need parents to guide and protect them in life.

It is your duty to protect your family’s financial goals against all risks, and your Insurance Advisor is your partner for protection. Have a conversation with your Insurance Advisor, check how exposed you are to risks. Protect all that is of Value to you adequately, TODAY.

The whole world gives you advice, but the pandemic has made everyone realise that your trusted Insurance advisor is the one standing beside you and your family and protecting you; The Insurance advisor is the real Advisor of the year.

Dr. Ashok Chandran
IRDA Certified Life & General Insurance Specialist
www.ac.co.in

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