health insurance and property insurance

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Insurance By: Abhishek Singh Alok Kumar singh Chandni Sharma Deepjyoti

Author: yash-gupta

Post on 22-Jun-2015



Economy & Finance

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  • 1. InsuranceBy:Abhishek SinghAlok Kumar singhChandni SharmaDeepjyoti MandalYash Gupta

2. Defining Insurance Insurance in broad terms may be described as a methodof sharing financial losses of few from a common fundwho are equally exposed to the same loss. Insurance is defined as the equitable transfer of the riskof a loss, from one entity to another, in exchange for apremium, and can be thought of a guaranteed small lossto prevent a large, possibly devastating loss. An insurer is a company selling the insurance. Theinsurance rate is a factor used to determine the amount,called the premium, to be charged for a certain amountof insurance coverage. 3. Insurance ClassificationInsuranceLife Insurance General InsuranceFire Marine Health Auto 4. Defining General Insurance General insurance or non-life insurance policies, includingautomobile and homeowners policies, provide paymentsdepending on the loss from a particular financial event. General insurance typically comprises any insurance that isnot determined to be life insurance. It is called property and casualty insurance in the U.S. andNon-Life Insurance in Continental Europe. 5. Health Insurance 6. What is Health Insurance?The term Health Insurance relates to a type ofinsurance that essentially covers your medicalexpenses. A health insurance policy like other policies isa contract between an insurer and an individual / groupin which the insurer agrees to provide specified healthinsurance cover at a particular premium subject toterms and conditions specified in the policy. 7. Health Insurance in India Health insurance is very well established in many countries. But in India it isa new concept except for the organized sector employees. In India only about 2 % of total health expenditure is funded bypublic/social health insurance while 18 % is funded by government budget. India faces a growing need to fix its basic health concerns in the areas ofHIV, malaria, tuberculosis, and diarrhoea. India can solve this issue by standardising diagnostic procedures, buildingrural clinics, and developing streamlined health IT systems, and improvingefficiency According to World Health Organizations 2000 World Health Reportranking Indias healthcare system at 112 out of 190 countries . 8. What a Health Insurance policy wouldnormally cover?A Health Insurance Policy would normally cover expenses reasonably andnecessarily incurred under the following heads in respect of each insuredperson subject to overall ceiling of sum insured (for all claims during onepolicy period).a) Room, Boarding expensesb) Nursing expensesc) Fees of surgeon, anaesthetist , physician, consultants, specialists.d) Anesthesia, blood, oxygen, operation theatre charges, surgical appliances,medicines, drugs, diagnostic materials, X-ray, Dialysis, chemotherapy, Radiotherapy, cost of pace maker, Artificial limbs, cost or organs and similarexpenses. 9. What does a Health Insurance policy notcover?Generally pre- existing diseases ( which mentioned under the policy ) are excludedunder Health Insurance Policy . There would be certain standard exclusions such as-1. cost of spectacles2. Contact lenses and Hearing Aids3. General Debility4. Intentional self-injury.5. AIDS6. Use of intoxicating Drugs /Alcohol.7. Expenses for Diagnosis8. Treatment relating to pregnancy or child birth including caesarean section.9. Naturopathy treatment . 10. What are the tax benefits in HealthInsurance?Health insurance comes with attractive tax benefits as an added incentive.There is an exclusive section of the Income Tax Act which provides taxbenefits for health insurance, which is Section 80D. This deduction is over and above the one available under Section 80C,which is for a limit of up to Rs 1,50,000. For individuals who are less than 65 years of age, the amount of deductionavailable is up to Rs 15,000 on mediclaim policy for self, spouse anddependent children. A further deduction of Rs 15,000 can be claimed for paying the premium forone's parents. The limit goes up to Rs 20,000 if either parent is a seniorcitizen, irrespective of his/her dependency status. In order to claim tax deduction, the premium payment has to be done eitherthrough a cheque or credit card. Cash payment does not qualify fordeduction. 11. How many Health Insurance companiesare there in India currently? According to IRDA report 2012-2013, there are 17 Private Insurance companieswho do business in General Health Insurance along with Health Insurance, 4Public Sector biggies and 4 standalone insurance companies whos core businessin only Health Insurance. 12. Initiatives of IRDA Committee to formulate regulations Pure health insurance products Allowing the formation of an stand alone health insurancecompany Standalone health insurance companies Renewability Senior citizens 13. Types of Health Insurance Plans 14. Private Health insurance Plan It is risk rated and offered by commercial based organization. A voluntary health insurance where in people can enrol andpurchase the insurance product of their liking, paying a riskrated premium. In this both public and private insurance companies marketthere is a variety of health insurance products. 15. Social Health Insurance Plan It is initiated by government. There are two mandatory and contributory health insuranceschemes in India.1. CENTRAL GOVERNMENT HEALTH SCHEME (CGHS). For the government of India's civil servants.2. EMPLOYEES STATE INSURANCE SCHEMES (ESIS). For the low paid industrial workers. In this only the eligible persons contribute through a payroll taxtowards a specific health fund. Eligible persons- above the age of 65 and the persons who havebeen diagnosed with specific diseases and those who have longterm disabilities will get this Medicare . 16. Community Based/ Micro InsurancePlans Any not-for profit insurance scheme aimed primary at theinformal sector and formed on the basis of a collective poolingof health risks and in which members participate in itsmanagement. It is community rated and normally managed by community/groups. It is initiated by NGOs/ CBOs. It is mainly to improve access to health care. 17. Health Insurance compulsory whiletravelling abroad: Let us take an example of student going abroad: Health insurance is compulsory in most universities andcolleges abroad including popular destinations like Australia,US, Canada, New Zealand, etc. However, UK, China, and Southeast Asian countries likeSingapore and Malaysia is optional . Most of the foreign universities allow waiver from on-campushealth insurance with comparable domestic insurance policies. Some times, students going overseas to study are not aware ofthe mandatory insurance policy criteria and are forced to buyan insurance policy from the university. Therefore students have to dutifully check the requirements ofthe university beforehand to have a compliant insurance policycover. 18. SchemesHDFC ERGOs HealthSuraksha PlanBharti AXA Smart HealthInsurance Policy No Medical Check-up upto 45 years No sub-limits on any disease, room rent,hospital charges and doctor feesCashlessTreatment at Network Hospital. 5% bonus on Sum Insured for everyclaim-free year. No limit for age at entry Offers One year or two years policy coverageperiod Option to cover on individual suminsured basis and on family floater basis. Avail a family discount of 10%, if 2 ormore members of a family are coveredunder the same policy on Individual suminsured basis. Life Long Renewability You get a 5% discount on therenewal premium for every claim-freeyear up to a maximum of 25%on progressive scale. After every block of four claim-freeyears of your policy with us, 1% ofthe sum insured will be providedtowards the cost of the health check-up. Single policy for the entire family(Insured, spouse and two children) In-built critical illness cover No medical check-ups required up to55 years (on select plans) Life long renewal 19. PROPERTY INSURANCE A policy that provides financial reimbursement to the owner or renterof a structure and its contents, in the event of damage or theft. Property insurance can include homeowners insurance, rentersinsurance, flood insurance and earthquake insurance. 20. PROPERTY INSURANCE POLICIES When considering the purchase of property insurance, youneed to decide what should be insured as well as against whatperils it should be insured. Perils - are the caused of loss, such as fire, wind, or theft. Real Property - property permanently attached to land, suchas a house or garage. Personal Property - property not attached to land, such asfurniture or clothing. 21. IMPORTANCE OF PROPERTYINSURANCE Monetary value is one of these benefits that a property insurancepolicy can offer. The property insurance company will pay for damages or losses youencounter in such cases as fire or theft. There are 3 types of property insurance they are : Individual Policies Homeowners Policy Renters Policy 22. Individual Policies Policies to cover against specific perils Standard Fire Policy - insures against losses caused by fire orlightning. Extended Coverage - broadens the coverage to include damagecaused by perils such as wind, hail, smoke, and falling aircraft. Additional coverage can be purchased to cover other perils aswell. To protect against floods in a flood-prone area, or To protect against financial loss caused by an earthquake 23. Renters Policies This is a policy created for the renters of apartments, condominiums,and or rented homes. This policy covers household goods and personal belongings andprovides protection against the same kinds of perils covered byhomeowners policies. This policy might include personal liability coverage. However, this does not actually protect the dwelling itself. 24. Homeowners Policies Homeowner Policy is a very convenient package-typeinsurance policy designed to fit the needs of mosthomeowners wishing to insure their homes andproperty. 25. Conclusion The Insurance sector always plays and important role in any economytherefore even government has always provided its hands to improve thissector in many ways for welfare and standard of living of people. GOVERNMENT INITIATIVES.The Union Budget 201 4-15 increased the FDI limit in insurance to 49 per cent. Theincrease in the FDI limit could help the insurance industry in two ways.1. This could help companies access capital more easily .2. It could act as a trigger for listing of insurance players, which will offer abetter benchmark to value these companies. 26. Road Ahead The future of India's insurance sector looks good, driven by thecountry's favorable demographic, greater awareness, supportivegovernment which enacts policies that improve business, customer-centricproducts, and practices that give businesses the bestenvironment to grow. India's insurable population is anticipated to touch 75 crore in 2020,with life expectancy reaching 74 years. 27. References Health Insurance by IRDA Health Insurance in India Opportunities, Challengesand Concerns by IIM A