Risks Transfer

Helo! I am Philip Eapen. I work with HDFC Ergo General Insurance Company that provides heath, motor, home, building, and other general insurance products. I also work with HDFC Life Insurance company.

Outline

  1. Why Choose HDFC Ergo?
  2. The Best Health Insurance: Optima Secure
  3. The Best Personal Accident Policy: Koti Suraksha
  4. More General Insurance Products
  5. Life Insurance Products
  6. Glossary

Why Choose HDFC Ergo?

More General Insurance Products

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Glossary

Accidental Death
Accidental Death Cover is normally available as a Rider or Inbuilt Option. Accident is a sudden, unforeseen and involuntary event caused by external, visible and violent means. Accidental Death means death by or due to a bodily injury caused by an Accident, independent of all other causes of death. Accidental Death must be caused within 180 days of any bodily injury.
Accidental Disability Rider
An optional but necessary addon. Get additional income benefits over and above your Sum Assured in the event of total permanent disability due to an Accident. In the event of Total Permanent Disability due to accident, you will be paid a regular monthly income equal to 1% of Sum Assured for a fixed period of 10 years.
Disability as a result of injury or accident and is thereby rendered totally incapable of being engaged in any work or any occupation or employment for any compensation, remuneration or profit and he/she is unlikely to ever be able to do so.
Alternatively, the life assured suffers an injury/accident due to which there is total and irrecoverable loss of:
a. The use of two limbs; or
b. The sight of both eyes; or
c. The use of one limb and the sight of one eye; or
d. Loss by severance of two or more limbs at or above wrists or ankles; or
e. The total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above wrist or ankle.
Claim settlement ratio (CSR)
An insurance company’s claim settlement ratio (CSR) refers to the number of claims successfully resolved versus the number of requests received in a given year. For example, if XYZ company receives 100 claim requests in a year and successfully settles 90 of them, its CSR is 90%. CSR acts as an indicator of their credibility.
Critical Illness
A list of illnesses are defined as critical illness. See product brochure online. Signs or Symtoms must have first commenced 90 days following date of an insurance policy.
Critical Illness Riders
HDFC Life Critical Illness Plus Rider provides a lump sum benefit on diagnosis of any one of the listed critical illnesses. The Life and CI Rebalance Option waives all future premiums after the detection of a critical illness.
Exclusions
The insurance contract specifies certain situations in which the insurance company will not honor their promise. For example, suicide is a common exclusion. If the insured person commits suicide, the company will not pay the sum assured or death benefits. Losses due to activities such as automibile racing, diving, underground activities, etc., are also excluded from coverage.
Free Look Period
The free look period is the period given to a policyholder to assess and review the policy document. He/she can terminate the policy during the free look period if they are not satisfied with its inclusion and exclusion terms which were explained at the time of purchase.
Grace Period
If you fail to pay your premium by date, your contract with the insurance company will come to an end. To prevent such a situation, you are given a grace period of 30 days from the due date every year.
Insurance
Insurance is a contract you make with an insurance company. For a certain amount you pay (that is, the premium), the insurance company undertakes to compensate you (the insured) for a loss. Also, see definition of Risk Transfer .
Life Assured
The person whose life is insured.
PPT
Policy Paying Term: The time period for paying annual premiums
PT
Policy Term: The total life of the life insurance contract
Premium
Premium is the cost of insurance. It is the amount you pay the insurance company periodically (annually) to keep yourself insured (and as seed for your investment).
Rider
Life insurance riders are contingent additional benefits over a primary policy, which come into play in case of a specific eventuality. They offer financial cover over and above basic sum assured in a life insurance policy. Even with the occurrence of the event, the life cover remains intact. This means that even if you have drawn on a particular rider, you remain eligible for the death benefit on the life insurance plan.
Risk Transfer
A good way to deal with risk is to transfer our risks to someone who is willing and capable of handling or dealing with them. This process of transferring of risk from one person to another is called insurance . Insurance, therefore, is a risk transfer mechanism.
SA
Basic Sum Assured is the amount of sum assured chosen by the policyholder
Sum Assured on Death
is the absolute amount of benefit which is guaranteed to become payable on death of the life assured in accordance with the terms and conditions of the policy or an absolute amount of benefit which is available to meet the health cover.
Sum Assured on Maturity
is the amount which is guaranteed to become payable on maturity of the policy, in accordance with the terms and conditions of the policy.