Aic Of India Health Insurance Company
Agriculture Insurance Company of India Limited (AIC) offers yield-based and weather-based crop insurance programs in almost 500 districts of India. It covers almost 20 million farmers, making it the biggest crop insurer in the world in number of farmers served. Agriculture Insurance Company of India Limited is a limited company headquartered out of New Delhi, India AIC aims to provide insurance coverage and financial support to the farmers in the failure of any of the notified crop as a result of natural calamities, pests and diseases to restore their creditworthiness for the ensuing season; to encourage the fanners to adopt progressive farming practices, high value in-puts and higher technology; to help stabilize farm incomes, particularly in disaster years. The plan provides comprehensive risk insurance for yield losses due to natural fire and lightning, storms, hailstorms, cyclone, typhoon, tempest, hurricane, tornado flood, inundation, landslide, drought, dry spells, pests/diseases, etc.
Aic Of India Health Insurance News
On Wednesday, 8th Nov 2017, the Insurance Regulatory And Development Authority Of India (IRDA) said that the linking of Aadhar number with insurance plans is compulsory and asked insurance companies to implement the statutory norms.
“The Authority clarifies that, linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017,” the IRDA said.
In the last June, the government of India had informed about the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017, making Aaadhar and PAN/Form 60 compulsory for getting financial services that include insurance also and asked policyholders and companies for linking the existing policies with the same.
In a discussion with all life and general insurance companies, IRDA said the rules have “statutory force” and they have to implement the rule without waiting for the further instructions.
Right now, there are 24 life insurers and 33 general insurance companies operating in the country.
Although, there are no deadlines that have been given by IRDA for the completion of the process, as per the circular, it has to be done as soon as possible. Some insurance companies also said that this can also result in the delay of payout in a few cases. Aadhaar is now also compulsory for financial transactions of Rs 50,000 and above. Likewise, one has to link one’s Aadhaar number with the mobile number latest by February 6, 2018.
Monday November 13, 2017
As per the latest statistics by IRDA, almost 25% of people don’t care to renew their policies every year. This is more common with the insurance products that are of a low premium amount. Insurance giant LIC has earned 5,000 crores because of lapse of premium in the fiscal year (FY) of 2016-17. The same year it sold policies worth Rs. 22,178 crores, which is almost 44% of the market share. In the FY of 2017, out of 1.8 crore policies it sold, one third are expected to expire before the end of 2018.
Attribute to this loss goes to the agents who often sell insurance just to meet their targets. In some other policies, there are greater chances of misspelling as well. Agents intent to promote such products to increase their numbers and commission. In the west, such actions by the insurance advisers are managed by the clause of clawback. In countries like India, Insurance Industry is still at a nascent stage.
Policy lapse majorly contributes to increasing the ratio of AUM in the Industry. It’s even faster than the increase in the AUM in mutual fund Industry. Within a span of a decade, the mutual fund has grown ten times. In the case of the insurance sector, the ratio of increase is even higher. It has been growing at a pace of 11-14% every year. Life industries have witnessed exponential growth from Rs. 5.41 lakhs to Rs. 30 lakhs from 2008 to 2018. Reson for such a huge growth is the asset under management. Prime reason for the growth of AUM in insurance niche is the cessation in the policy.
These lapsed policies are a complete loss to the policyholders. If they don’t care to renew the policy within the year of purchase than they bear lose of the entire premium amount. The average rate of renewal every year is approximately 75-76%. All the lapsed policies contributes in increasing the AUM of the Insurance Industries.
Friday September 07, 2018
The insurance industry has always been considered an underdog for decades. Many people are not even aware of the benefits of some basic policies. Until 2001 only 2.71% of the market was captured by the Insurance sector. Within a span of sixteen years, it has penetrated to 3.7% in 2017. During the period of six years i.e. 2011 to 2017, there’s a 56% increase in this Industry.
In the Financial Year (FY) of 2017-2018, it has recorded the Gross premium of 72 billion USD.
The launch of revolutionary schemes like Ayushman Bharat has further accelerated this sector.
Pioneer float of such plans commits to cover Rs. 5 lakhs for about 10 crore poor families. This move will also generate lots of jobs for different skills that will improvise the economy and the employment rates.
There has always been needed for different Insurance coverage. Life and health are the most important things in a person’s life that need protection. Many people didn’t even know the wellbeing they can get by investing in the Insurance. By buying good insurance plan at a very low price, many families are already cherishing. This has also resulted in making Insurance more popular. Often neglected people are the poor segment of the society. Because of no coverage in Insurance their condition further deteriorates. However this new Insurance plan, Ayushman Baharat is designed to cover these strata of society.
Growing awareness among people has also contributed to the growth of the Insurance Industry. Other factors like increasing salaries, generation X and the changing ecosystem of self-care has further bestowed Insurance penetration. Ayushman Bharat, a flagship program by the government is the key benefactor for the Insurance sector. With the advent of such plans, Insurance Industry is expected to reach 280 Billion USD in the FY of 2019-2020.
Monday September 10, 2018