Several Founders, Co-Founders, CXO Bankers, CXO Fintech professionals & people who participated in the ePanel discussions:

  • Mr. Thomson Thomas, Former, EVP- Technology (Head Business Systems & Technology), HDFC Life
  • Ms. Metilda Stanley, Sr. Vice President, Operations, HDFC Standard Life Insurance
  • Mr. Anshul Srivastav, CIO & Digital Officer, Union Insurance
  • Mr. Madan Reddy, Vice President, Exide Life Insurance
  • Mr. Suresh Gurumani, MD & CEO, PetroMoney Fintech
  • Mr. Neelkant Rawal, Senior VP, Digital and Innovation, Wells Fargo
  • Mr. C V Ramana Rao, Sr Manager, Punjab National Bank
  • Mr. Abhishek Srivastava, AVP – Startups, HDFC Bank
  • Mr. Satya Vishnubhotla, Former Country Manager, AsiaCollect
  • Mr. P B Prakash, Head-Financial Institutions Group, IndusInd Bank
  • Mr. Dhanender Chandna, Managing Director, Viren Business Solutions Pvt Ltd.
  • Mr. Avro Mukerji, Investment Counselor- NRI Affluent Banking
  • Mr. Rakesh Watal, Head Liability Operations Western Region, HDFC Bank
  • Mr. Yogesh Gupta, Former Head Online Remittances- Money2India International Banking Group, ICICI Bank
  • Mr. Shamil Vazir, Assistant VP- Alternate Channels & Digital Payments, Equitas Small Finance Bank
  • Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
  • Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous

Most of us do have mediclaim insurance that shields us against all health-related expenses. Well, here comes some piece of advice from some personal experiences of a member. Member says, “never invest in Mediclaim Insurance if you can set aside Rs. 5 Lakhs as an emergency fund. Go for mediclaim insurance only if your employer is offering it for free or else stay away. He further adds claim settlement of all these insurance companies is extremely bad.” Here are some statistics shared by him on claims received by his friends recently;

  • Claim amount is Rs 1.9 lakh, Insurer Paid only  Rs 1 lakh (53%)
  • Claim Amount Rs. 9 lakh, Insurer Paid only Rs. 2 lakh (22%)
  • Claim  Amount Rs 4.2 lakh, Insurer Paid only Rs 1.6 lakh (37%)

On the term plan, he says after death who knows whether insurance companies will ever settle the death claim or not. The process of claim settlement is so cumbersome that it’s like university admission in the overseas market. Who has so much time? So don’t waste any monies in insurance if you can set aside 5 to 10 lakhs.

  • Thereon member opines, claim ratio is 95% plus for most good companies so don’t really understand the concern of ‘who knows after death’. The only purpose of term insurance should be risk cover, to provide for your loved ones, completion of all key financial goals, and maintain the same standard of living after you are gone. And of course, IRDA is always there to take care of the fear that companies can take you for a ride.
  • Term assurance is the best and must insurance for anyone. This scaremongering about claim settlement is ridiculous because we have strong regulators and consumer laws/ombudsmen to protect the policyholders. Of course, if you have a heart condition and take insurance without disclosing that and you die of heart disease, the claim will not be settled.  Like all investments ‘read the offer document carefully’ is the key.

A member put forth some views representing those who don’t get FREE insurance from their companies:

  • Firstly insurance companies insure healthy people. Try asking for insurance for your parents in the late ’70s? No one will offer a policy. What uncertainty are you covering? The biggest uncertainty in life is whether insurance companies will settle your claim.
  • Secondly, we took cancer insurance and I realized that many types of cancers commonly found in the country are excluded in the t&c. My doctor friend told me that cancers that are most common in the country are all excluded so if I get cancer then the insurance company will deny my claim. Isn’t this is a big fraud by white-collar executives?
  • Thirdly, check how many times have you fallen sick in the last 10 years? and how much were the medical bills?. And how much was the insurance premium paid? You will find that premium paid is much higher compared to medical bills.
  • Lastly, no one wants to be profitable on insurance. No one wants to be hospitalized. If you can set aside even 2 lakhs you don’t need any insurance cover. Your insurance company will talk about what happens if you get a big illness but no guarantee that insurance companies will even settle 30% of the claimed amount. So why go for insurance?

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