Friday, August 01 2025
Source/Contribution by : NJ Publications

In the past few weeks, India has witnessed a spate of accidents that have shocked the nation. From the tragic Ahmedabad plane crash landing incident that injured multiple passengers, to the unfortunate stampede during Royal Challengers Bengaluru's IPL victory celebrations, Mumbai local train and multiple reports of vehicles plunging into gorges in hilly states-these incidents are grim reminders of how unpredictability surrounds our daily lives.

While we often insure our lives, cars and health, Personal Accident Insurance still remains underutilized and poorly understood. Yet, it's one of the few covers that directly supports individuals and families when sudden mishaps derail everyday life. This article breaks down how a personal accident policy can be a financial lifesaver, especially in light of recent real-life tragedies.

A Personal Accident (PA) Insurance policy provides financial compensation in case of injuries, disabilities, or death due to accidents. Unlike a health policy that pays for hospitalization or a life policy that pays only on death, PA insurance covers a wider spectrum-death, permanent disability, temporary disability, fractures, burns, and loss of income due to injury.

Such a policy ensures that an accident doesn't result in both physical and financial disability.

• Financial Security for Your Family: In the unfortunate event of your accidental demise, the policy provides a (100% sum assured) lump sum to the family, helping them manage immediate expenses, clear debts, and maintain their lifestyle. This is particularly vital if you are the primary or sole earning member.

• Income Replacement during Disability: Accidents can lead to disabilities that prevent you from working, either temporarily or permanently.This is where the Loss of Income (Temporary Total Disablement - TTD) cover becomes paramount. If an accident renders you temporarily unable to work (e.g., a broken leg requiring months of recovery), this cover provides a regular income for a specified period, ensuring your household expenses are met even when your regular salary stops.

• Protection against Permanent Disabilities: If an accident leads to a permanent partial or total disability (e.g., loss of a limb or eyesight), the policy pays out a percentage (upto 50% - 100%)or the full sum assured, respectively.This compensation can be crucial for adapting to new circumstances, making necessary home modifications, or even pursuing new livelihood options.

• Worldwide Coverage: Many personal accident policies offer worldwide coverage, meaning you're protected whether the accident occurs in India or during international travel.This is especially relevant in a world where travel is increasingly common.

• Affordability: Compared to other insurance products, personal accident policies are generally quite affordable, offering substantial coverage at a relatively low premium. Sample Premium - Approx. Rs 21,000/- for 50 Lacs comprehensive PA policy for Self, Spouse and 2 kids.

Key Add-Ons You Should Not Ignore

1. Loss of Income / Temporary Total Disability (TTD) Cover

This add-on pays a weekly benefit (usually ₹25,000 to ₹50,000/week) if the policyholder is temporarily unable to work due to an accident. For salaried individuals, freelancers, or shop owners, this protects livelihood during recovery. It can be availed for up to 100 weeks, depending on the severity.

Example: A small business owner fractured his hip in a minor car accident. Though not hospitalized, he couldn't walk or operate his shop for 2 months. With a TTD add-on, he received ₹50,000 per week, totaling ₹400,000-critical to keep his business afloat and pay EMIs.

2. Fracture and Bone Injury Cover - A Must for Children & Elderly

Children and the elderly are especially prone to falls, injuries. As individuals age, their bones become more brittle, making them more susceptible to fractures from even minor falls. Yet, their injuries may not lead to hospitalization, meaning health insurance may not come into picture.

A dedicated fracture cover within a personal accident policy specifically provides a lump sum payout upon diagnosis of a covered fracture, regardless of whether it leads to a permanent disability.

• A 7-year-old injures her forearm while playing cricket.

• A 70-year-old grandmother fractures her ankle slipping in the bathroom.

In both cases, the insurer pays a predefined amount (e.g., ₹15,000 to ₹50,000), regardless of actual expenses. This helps cover diagnostic tests, consultations, splints, or physiotherapy.

Who Needs Personal Accident Insurance?

Everyone. But it's especially important for: Salaried, Self-employed, Housewife, Elderly, Children, Frequent travellers, etc.

Key Benefits to Look For

When choosing a PA policy, prioritize:

• Accidental death cover (₹50 - 100 lakhs or more)

• Permanent disability benefit

• Temporary disability (TTD) income support

• Fracture benefit

• Burns and disfigurement compensation

• Child education benefit (on policyholder's accidental death)

• No hospitalisation requirement for minor claims

Prevention is Good, But Protection is Better

We can't prevent every accident. But we can prepare for the aftermath. Whether it's a stampede, a holiday mishap, or a freak accident at home-Personal Accident Insurance offers the critical financial shield your health or life policy may miss.

In India's rapidly urbanizing and mobile society, where public events, travel, and daily commuting bring new risks, a personal accident plan is no longer a luxury. It's a necessity.

Talk to your Insurance Sales Person today to review your accident coverage-especially if you have elderly parents, school-going kids, or are self-employed. It's an investment in your safety and security that truly pays off when you need it most.

Friday, June 27 2025
Source/Contribution by : NJ Publications

When it comes to health, we all want the best care for ourselves and our family. Medical expenses are rising quickly and unexpectedly, having a good health insurance policy is no longer a luxury-it's a necessity.

Insurance policy is an agreement(contract) between the insurer (insurance company) and the insured (policyholder). It is based on the information the insured provides in the proposal form, making it the most important part of the entire contract (agreement). An insurance company offers a policy on the basis of a proposal form and other information related to the insured. It seeks all the relevant information from the policyholder in order to underwrite the risk.

The proposal form includes

• The insured's basic information such as address, age, name, education, income, etc;

• Occupation, medical history, lifestyle habits like smoking / drinking, etc;

Still, many people make mistakes when buying health insurance. These mistakes can lead to policy/claim rejections, inadequate coverage, or even policy cancellation. This article will help you understand how to avoid some common mistakes. Whether you're buying health insurance for the first time or reviewing your current plan, these tips will come in handy.

In-appropriate practices

Some of the most important points while filling proposal form.

1. Consult an Insurance Expert

With so many policies in the market, it's easy to get confused. Many people buy policies just because a relative or bank executive recommended it-not because it fits their needs.

Take the help of a qualified insurance advisor. An insurance expert will:

• Understand your health needs, age, and family size

• Recommend plans with suitable cover, benefits, and premium

• Explain terms & conditions in detail

• Help you compare plans from different companies

This small step can prevent a big mistake.

2. Disclosure of Medical Condition, Lifestyle habits honestly

When filling out the application, be completely honest about your health history. Disclose any past or current illnesses, surgeries, injuries, or regular medication. Insurance companies measure you based on your current and past health information provided in the proposal form.

Insured members must inform about his/her lifestyle habits like the consumption of alcohol, tobacco and other drugs. Addictive/intoxicating substances such as tobacco & alcohol have a negative impact on health.

Insurers also check for inconsistencies in the proposal, telecalling along with medical reports. They (Insurers) also verify the proposal form details with diagnostic reports or insured's remarks on the phone call.

Many times, people do not disclose their current health condition, recent medical diagnosis or ongoing investigations in the proposal form so as to obtain better coverage for lower premium or to avoid the waiting period or rejection.

If they(insurance company) find out you've hidden anything important, they have the right to reject your claim-even if the illness is unrelated to what you've hidden. Hiding any important information may result in your policy being cancelled as well.

For example, Mr. Raj was hospitalised for treatment of a heart ailment, the insurance company from the hospital sources came to know that he had diabetes before taking insurance policy and as a result the claim got rejected. This is because he did not mention diabetes in the proposal form while buying the policy. Therefore, complete medical history must be given in the medical questionnaire asked in the form.

3. Understand the Moratorium Period

The moratorium period means after continuous completion of 5 years from inception of your first health insurance policy, the insurer cannot question the validity of your policy based on non-fraudulent errors or non-disclosure.

It's different from the waiting period (when some diseases aren't covered), but it's equally important. Once this period is over, your claims are far less likely to be rejected due to errors made while buying the policy.

So, buy your policy early and continue it without breaks. That way, you complete the moratorium period sooner and enjoy stronger comprehensive protection.

4. Don't Ignore the Fine Print - Verify the Policy Document

Once your policy is issued, verify the details in your policy document thoroughly. This includes:

• Name, age, and details of all insured members

• Health declarations made during the application

• Policy start and end date

• Sum insured (risk cover amount)

• Waiting periods, exclusions, sub-limits

If there are any mistakes or missing details, get them corrected immediately. Don’t wait or delay till you need to make a claim.

Final Thoughts: Secure Your Health, Secure Your Future

Health insurance is not just a formality-it's a financial safety net. Buying the right policy means you don't have to worry about hospital bills during a crisis. It means your savings remain safe, your family stays protected, and you can focus on recovery, not expenses.

Health is uncertain, but your financial preparedness doesn't have to be. Act early, choose wisely, and avoid the mistakes that many regret later.

Friday, June 6 2025
Source/Contribution by : NJ Publications

Medical treatments are becoming more expensive and sophisticated, meaning the cost of hospitalization, diagnostics and daycare procedures are creeping upward. It would be more logical if your coverage could also increase alongside these rising costs, without you having to shell out huge premiums?

No Claim Bonus (NCB) and Guaranteed Cumulative Bonus (GCB) are two powerful, yet often overlooked features of a health insurance policy. Both reward you for staying healthy-either by not making claims or simply by renewing your plan-allowing your sum insured to grow beyond its original risk cover amount (base sum insured). Over time, these bonuses can double, triple, five/ten fold your protection, offering a growing financial safety net just when you need it most.

In this article, we'll explore:

1. Exactly what NCB and GCB are

2. How they work, with real-life examples

3. Why this is important

4. Tips to maximize your bonus-driven cover growth

1. What Are NCB and GCB?

No Claim Bonus (NCB) - NCB is essentially a "reward for not taking claims" If you complete a full policy year without filing any claims, your insurer acknowledges your low-risk profile by either:

• Discounting your renewal premium, or

• Adding a percentage of the base sum insured to your coverage-at no extra cost.

Early versions of NCB focused on premium rebates (typically 5-10% per claim-free year). Today, most plans use NCB to increase your actual protection. For instance, a 50% NCB on a ₹5 lakh policy adds ₹250,000 to your sum insured upon renewal-turning it into a ₹7.5 lakh policy for the same premium you already pay. If you go claim-free again next year, you earn another 50% on ₹7.5 lakhs, taking you to ₹10 lakhs in coverage.

Guaranteed Cumulative Bonus (GCB) - GCB takes the "claim-free" requirement off the table. Whether or not you lodge any claims, every renewal brings a fixed percentage increase (often 10-20%) to your sum insured-again, without extra premium. This guarantees a steadily rising coverage floor, which is especially useful if you anticipate needing treatment but still want the comfort of growing protection.

2. How They Work-Real-Life Scenarios

Example where policy provides NCB: The Sharma family bought their health insurance policy with a ₹5 lakh sum insured capped at 200% of the base sum insured.

Year 1 (No Claims)

• Base cover: ₹5 lakhs

• NCB earned: 50% → +₹250,000

• Renewed cover: ₹7.5 lakhs

Year 2 (Claim)

• They filed a ₹120,000 claim for a surgery.

• Due to this claim, their accumulated NCB wasn’t lost-just reduced by 50%.

• Renewed cover: ₹5 lakhs

Year 3 (No Claims)

• NCB earned: 50% → +₹250,000

• Renewed cover: ₹7.5 lakhs

Thanks to the NCB, the health insurance policy of Sharma's simply kept growing their cover after managed claims.

Example where policy provides NCB: Mr. Patel, a 50-year-old, wants his coverage to expand over time irrespective of him taking claims. He bought a plan with a guaranteed 25% GCB, capped at 500% of the base sum insured.

Policy Timeline

• Year 1 renewed: ₹5 lakhs → +25% = ₹6.25 lakhs

• Year 2 renewed: ₹6.25 lakhs → +25% = ₹7.5 lakhs

• Year 3 (Hospitalisation claimed): Despite a ₹2 lakhs claim, GCB still kicks in → ₹7.5 lakhs → +25% = ₹8.75 lakhs

By Year 5, Mr. Patel's coverage doubles to ₹10 Lacs and by year 10, coverage becomes 4 times - meaning his ₹5 lakh plan now offers ₹20 lakhs of protection, regardless of claims taken.

Why This is Important

• Free Coverage Increases - Every percentage point of NCB or GCB translates into more protection at zero extra premium. Over a 5-year span, you could add ₹10 lakhs or more to a ₹50 lakh policy, effectively increasing your safety net without amplifying your premiums.

• Rising Medical Costs - Medical inflation in India is approx 12 - 14% annually-much higher than general inflation. Bonus-driven increases help your coverage keep pace, ensuring you aren't left underinsured when treatment costs surge.

• Cushion Against Big Bills - Whether it's a complex cardiac procedure or extended ICU stay, having a larger sum insured can be the difference between manageable out of pocket expenses and a huge debt.

• Encouragement for Healthy Living - Knowing that claim-free years translate directly into higher cover provides a powerful incentive for preventive care: regular check-ups, healthier diets, and early intervention. In other words, bonus schemes not only protect your wallet but also reinforce better health habits.

Things to Watch Out For

• Maximum Limits - Most NCB schemes cap at 100% - 200% of your base sum insured; beyond that, no further bonus accrues. Ensure you know your plan's maximum cover limit.

• Claim-Impact on NCB - If you anticipate needing occasional claims, consider plans that preserve some or all of your bonus.

• Premium Revisions - Although NCB/GCB adds free cover, due to factors like age, region and medical inflation - insurers may still revise base premiums after approval from the regulator IRDAI. 

• Consult an insurance expert: A consultation with a qualified insurance professional can help you understand the nuances of the bonus features, identify additional add-ons/riders, and customize a plan that aligns perfectly with your medical requirements and financial goals.

Conclusion

No Claim Bonus(NCB) and Guaranteed Cumulative Bonus(GCB) are more than just policy features. They're strategic levers that let you build progressively stronger health protection, without proportionally higher premiums. By understanding how these features work-and picking plans with generous bonus rates and sensible sum insured bonus limits-you can turn disciplined health management into real financial security.

Harness the power of NCB and GCB to let your coverage grow alongside you-so that, when life's medical challenges arise, you'll be armed with far more than just hope: you'll have a steadily expanding safety net.

Empower your health journey today-because a proactive approach to insurance can pay dividends in both peace of mind and financial security.