How to claim insurance incase of problems- Insurance Ombudsman.

1. first approached your insurance company  with the complaint
2. If the insurance company either did not resolve the complaint , or did not resolve it to your satisfaction or did not respond to it at all for 30 days.
3.You can approach the Insurance Ombudsman.

-The Ombudsman can be approached if the value of the claim including expenses claimed is not above Rs 20 lakh. Hence, high value claims cannot be settled by Ombudsman

-Complaints can range from partial or total repudiation of claims by an insurer, any dispute about premium paid or payable, any dispute on the legal construction of the policies as far as it relates to claims or delay in settlement of claims.

-The Ombudsman will act as counsellor and mediator and arrive at a fair recommendation based on the facts of the dispute. If you accept this as a full and final settlement, the Ombudsman will inform the company which should comply with the terms in 15 days.

-Once the Award is passed, you have to accept the award in writing and the insurance company has to be informed of it within 30 days and the Insurance company has to comply with the award in 15 days after that.

http://www.policyholder.gov.in/

http://www.business-standard.com/article/finance/policyholders-throng-insurance-ombudsmen-offices-113112900082_1.html


http://www.irdaindia.org/ombudsmen/ombudsmenlist_new.htm

http://www.gbic.co.in

IRDA - Tol Free Number : 155255

Why Money back policies can be avoided.

http://www.jagoinvestor.com/forum/lic-jeevan-anand-5/7307/


Free Financial Calculators said:




You should not by endowment policy for the following reasons:



1. Th life cover is small. You need at least 15 times your annual salary as insurance cover. If and when you have children you


will need more.



2. The life cover is not free! If the agent said that it is nonsense.



3. The returns you will get will be bet 6-7% (inc. all possible bonuses). for a goal like retirement 33 years away if you are not


invested in about 60-70% equity stocks or MFs you will not have financial independence after retirement



4. No pension plan. No child. The only plan is education plan. Yours that is: Learn and start investing in mutual funds/. For


retirement invest in a combination of PPF, EPF and mutual funds





Ramesh :



The amounts are NOT Guaranteed. And overall the TOTAL IRR is 6-7%. A big 1-2% less than PPF rate.

Just to give you a picture, the Inflation rate is 11-12% in CPI terms. Do not ask about the real inflation rates.



Multiple this by 30 years, and you are losing 4-7% on your investment, if you opt for debt based endowment plans.



Do not buy any plan which is being sold to you! Very simple thing. It is in the interests of the LIC agents and LIC to market themselves as the best, most dependable, etc. But it is not in your own interest to buy any plan from LIC.



Ask this:

1. Where does the LIC invest its money to give you those returns?

2. Ask the agent, what is the commission structure of this plan? He is bound to tell you his first year’s and subsequent percentages. If I recall correctly, it is anywhere between 40-70% of first year premium and 5-8% subsequently. But do not quote this, because I have never bought any such plan and I have never got a proper answer (Will check though, now).

3. If the agent is old enough, ask him the past returns. How much that policy has given in the past? Get a real example and then do the maths yourself.

Mixing insurance with Investment

http://www.bemoneyaware.com/blog/insurance-investment/

http://www.bemoneyaware.com/blog/surrendering-life-insurance-policy/

http://www.jagoinvestor.com/2009/10/what-to-get-rid-of-your-junk-insurance.html

Option 1, Option 2 or Option 3 your Choice

Option 1:


Suppose 30-year old Mr A opts for a policy involving

monthly premium payment : Rs 1000

Number of Years : 20 years.

The total premium paid : Rs 2,40,000 (at the end of the 20th year)

which assures maturity sum of Rs 2,73,500 and loyalty addition at the rate announced for the corresponding year.

(The average rate at which the bonuses were offered for the past five years was around 5-6%).

So if we assume that 6% loyalty will be paid in the 20th year,

the total lump-sum earnings at maturity will be around Rs 3,48,000. (Thus, the net earnings will be around Rs 1,00,000 in 20 years. )

Option 2:

Instead, Mr B opens a recurring deposit with a PSU bank for 20 years.

(The maximum RD period offered is 10 years, but we have assumed RD of 20 years to make it comparable).

The deposit rate offered by most banks for 10 years is 7% per annum compounded quarterly.

So, the amount receivable after 20 years will be around Rs 5,21,000.



Thus, the interest earnings will be Rs 2,81,000, much higher than the guaranteed returns on Jeevan Saral.

But one should not forget that the interest income on RD is taxable.

Assuming Mr B is in the highest income tax bracket, the total tax paid will be Rs 87,000 and the net interest earned after tax adjustment will be Rs 1,94,000, which is still higher than the returns offered by Jeevan Saral.

But not all investors need to pay the highest applicable rate of income tax as RDs don't attract TDS.

Option 3:

Now consider Mr C, who opts

to make monthly investment of Rs 1000 in PPF account for 20 years.

He enjoys tax benefit under sec 80c similar to Mr A.

At the end of 20th year, he receives almost Rs 5,93,000.

Thus, the net earnings for Mr C will be Rs 3,53,000, which will be absolutely tax-free.

Moreover, these assured earnings may be much higher than the receivables of Mr A.

To sum up, if one is looking for a pure long-term investment with periodical payout, traditional fixed investment avenues such as RDs and PPFs score for insurance based investment plans.

As for risk cover, one may go for pure-term policies which have very low premiums.

Option 1 (Rs 1,00,000) or Option 2 (Rs 1,94,000) or Option 3 (Rs 3,53,000,) your choice?



http://articles.economictimes.indiatimes.com/2009-06-08/news/27665755_1_jeevan-saral-premium-policy

Infographics

http://www.tflguide.com/2012/10/terms-commonly-used-in-health-insurance-policy-infographics.html