How Insurance Plans changed throughout 2014 | Fusion - WeRIndia

How Insurance Plans changed throughout 2014

Insurance plans

2014 saw new guidelines for traditional insurance plans. Let us take a look at how things changed in the last year. The insurance regulator placed a 15- 35 percent cap on the commissions’ payable in the first year. All traditional policies will have a guaranteed surrender value.

2014 also saw the return of Ulips. Ulips were disliked because they are considered high costs insurance-cum-investment plans. In 2014 they changed into low cost investments. HDFC Life also launched a low cost online Ulip.

Online term plans saw a boost in 2014. When LIC entered this market in May, there was a huge boost in online term plan space. Till May, LIC was hesitant to introduce an online plan because it opposed to an arrangement which bypassed them. The online channel is expected to grow even further.

Many corporates have reduced group health insurance benefits for their employees due to rising claims. This trend continued in 2014. Many companies introduced co-pay sub limits and employee funded parental coverage in 2014.

Third party cover became more expensive. The premium for third party liability went up by 10-20 percent in 2014. This is expected to rise even further in 2015. This makes motor insurance more expensive, however there is no a cap on the liability.

Image by Gerd Altmann from Pixabay (Free for commercial use)

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