Insurance Brokers

The Insurance Industry in India has turned much more customer friendly with the regulator IRDA bringing in new norms which favor customers.After turning the screws on ULIPs which were heavily favoring the insurance companies,the regulator has also started controlling the training of agents and accreditatoin of insurance agents.Note recently IRDA has also started allowing health insurance companies to port health insurance policies which allows customers to easily switch health insurers without losing the benefit of no claim years. The regulator has also made it harder for fly by night operators to enter the insurance business as it will cancel the licenses of insurance agents whose persistence ratio is less than 50% . This implies that if  the policies sold by an  insurance agent is not renewed by at least 50% of the customers,then the licence of the agent will be cancelled.THis will allow only serious players to stay in the insurance business.Also by bringing some standards to the agent training business,it will stop the mushrooming of ad-hoc insurance institutes in the coutnry who impart shoddy education. Selling it right To ensure that only serious professional players come into the insurance business, the regulator has mandated that only entities registered as…

Read More...

 The insurance premium of vehicles to be insured is based mainly on the following factors 1)    Insured Declared Value ( IDV) of the vehicle 2)    Cubic Capacity 3)    Geographical zones 4)    Age of the vehicle How Insured Declared Value( IDV) is affected by the Age of the Vehicle IDV is the ” Sum Insured” which is fixed at the commencement of the policy and is fixed based on the basis of a)    Manufacturer’s listed Selling Price of the Vehicle b)    Model of the vehicle insured at the commencement of insurance or renewal. This is adjusted for depreciation which depends on the age of the vehicle The percentage of depreciation is 5% to 50% (5% if it is not exceeding 6 months and 50% if it is exceeding 4 years but not exceeding 5 years) IDV of the vehicles beyond 5 years of age and of the obsolete models (the models which the manufacturer has discontinued to manufacture) is determined on the basis of an understanding between the insurer and the insured.  Age of the vehicle Age of the vehicle also plays an important part in determining the premium and is divided in three segments. 1)    Not exceeding 5 years 2)   …

Read More...