Page 22 - Insurance Times February 2016

Takaful Reinsurers and Conventional Reinsurers i.e. a Mix tion Space Oil and Energy and solutions to inherent

of Takaful Re and Conventional Reinsurers. problems of Large Risks. However, most of other classes

of General Insurance are written by Takaful operators.

Conclusion: N Takaful is more retail oriented and Takaful Bank Assur-

N Many Companies Globally have set up Takaful Compa- ance is seen to be more effective channel of distribution.

nies and Re Takaful Companies in Muslim Majority Mar- The demand for Takaful is growing all over the world with

kets. 15% to 20% growth since 2007-08 to 2014-15.

N Takaful Companies are more insulated as compared to N The Global Takaful group - GTC has a forum for the

Conventional Companies especially in context with the exchange of ideas. The GTC wants to set up a Lloyds

Global Financial Crisis. According to S & P Takaful Com- Takaful Syndicate in London.

panies have shown Residence to Global Market Crises. N Many Western and Asian Insurance and Reinsurance

Again,Capital Adequacy is better with Takaful compa- Companies of Conventional Insurances are set to be

nies and efficient in claims handling. Takaful and Re Takaful Companies to supply and save

N Takaful Insurance and Reinsurance Companies also need the growing demands of Muslim Community World-

advice of Shariah Scholars to write Large Risks of Avia- wide.

Check if you really need high-value Health cover

A health insurance floater policy of Rs.5 lakh was consid- These policies also have a higher co-payment clause for
ered adequate till recently. However, rising healthcare senior citizen at 20%. According to certified financial plan-
costs are pushing individuals to opt for higher covers. Cash- ner Abhinav Gulechha, the year-on-year premium cost
ing in on the trend, some companies are now offering does not justify the coverage provided.
Rs.50 lakh, and even Rs.1 crore covers. Not surprisingly,
the premiums are steep. What are your options?

An Individual health cover of Rs.50 lakh for a 30 year-old Gulechha suggests buying an indemnity plan of up to Rs.5
would cost Rs.20,000 - Rs.60,000 a year. A family floater lakh and increasing it as and when your requirement or
of a similar sum insured would cost Rs.40,000 - Rs.50,000 responsibilities increase by way of a top-up policy.
if the oldest family member is 30-35 years old.
Assuming you may still consider going coverage as for a
How much do you need? specialized treatment, you could buy a fixed benefit policy
like for critical illness, in combination with the regular hos-
Divya Gandhi, principal officer and head of general insur- pitalization cover.
ance, Emkay Insurance Brokers, says an Rs.20- Rs.25 lakh
policy is sufficient even if you plan to get treated in the You could also buy a high-sum insured critical illness plan
best of hospitals in metros. The biggest advantage of high and get the entire sum insured as lump sum. High-value
value covers is that international treatment is compen- covers are beneficial if you are looking to cover your fam-
sated. However, the list of ailments covered is restrictive. ily. (Source: Economic Times)

Call 1033 from anywhere in India for accident assistance

The government recently launched a toll-free number 1033 for road accident management services that can be ac-
cessed from any part of the country. The toll-free service will be a mandatory facility to be provided by all service
providers and will be accessed from anywhere in India, minister of state for road transport and highways Pon
Radhakrishnan said in a written reply to the Rajya Sabha.

Urgent meeting to address 'Duress and Coercion'

The Delhi High Court has directed IRDAI to assemble an urgent meeting of insurance companies in Delhi to address
the problem of 'duress and coercion' after the order was passed in the judgment, Worldfa Exports Ltd vs. United India
Insurance. The term 'Duress and coercion' is used by the insurance companies to force a contracting party to abandon
legitimate rights under law. The conduct of the companies, violating the provision of the Contract Act and consumer
laws, was severely condemned by the court.

22 The Insurance Times, February 2016

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