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Mint
10 hours ago
- Politics
- Mint
Is war risk covered by life insurance? It's never too late to check the policy's fine print
As the Iran–Israel war unfolds, it brings with it anxiety, headlines and human loss. For the world, it's a geopolitical crisis. But for thousands of Indian families, it's personal. There are an estimated 18,000 to 20,000 Indian nationals living in Israel, including students, skilled professionals and technical workers. In addition, over 85,000 Jews of Indian origin call Israel home, many of whom still have family in India, making this not just an international crisis but an emotional one for the Indian diaspora. One such tragedy struck recently. A young Indian engineer working in Tel Aviv was preparing to return home to Delhi. He had video-called his daughter and told her to finish her sign that read 'Welcome Home, Papa." The ticket was booked. The sweets were in the fridge. And then a missile struck. His name was among the casualties. Also Read: Healthcare for all: Don't rely on insurance alone The family's grief was instant, but what followed made it worse. When they reached out to the insurer, hoping for some support, they received a cold impersonal message: 'Claim denied under Clause XYZ—death due to war or war-like operations." There was no fraud. No error. Just a clause they had never paid attention to—one line buried in fine print that changed everything. The fine print could write your family's future: In most life insurance policies, death due to war or war-like situations is not covered for civilians. These exclusions are clearly outlined in the policy document, often under 'General Exclusions.' While some insurers offer optional riders or policies that include limited war-related cover, many do not. It is essential to understand what your policy excludes and not just what it promises. Unfortunately, many people skip this. According to the Insurance Regulatory and Development Authority's (IRDAI) 2024-25 annual report, one in four disputed life insurance claims were denied due to lack of awareness. These were not bad claims. They were uninformed ones. Also Read: Heath insurance in India ought to cover preventive care as well Insurance in India is stronger than ever but awareness must catch up: India's insurance ecosystem today is among the fastest evolving in the world thanks to IRDAI's progressive reforms. India reported a 98.6% claim settlement ratio in life insurance last year. It has introduced customer-friendly standard product structures, digitized initiatives like Bima Sugam and made disclosures and exclusions more transparent. The system is getting smarter, faster and more accessible. But one thing remains unchanged: policies only cover what they are broadly understood to cover. As the annual report highlighted, many disputed claims were denied not because of fraud but because families misunderstood what was covered. The rise of AI and disappearance of dialogue: Insurers today use artificial intelligence (AI) to streamline claims. Over 70% of global insurers now rely on algorithms to pre-screen documents and flag inconsistencies. It saves time. It filters fraud. But it also removes context. An outdated address, an undisclosed travel history, a forgotten declaration from years ago: to a person, these are human oversights. To a machine, they are grounds for rejection. And often, families don't get to have a conversation. They get an automated message. Claim readiness is the new insurance: Insurance isn't a file to keep in a drawer. It's the only document your family may reach when they can't reach you. Being claim-ready means reading your policy thoroughly, especially the exclusions section; updating it when your life changes (job moves, international travel, new responsibilities); telling your family what to do and who to call; keeping both digital and physical copies safe and accessible; adding riders for special risks if your lifestyle or profession demands it. It's not paranoia. It's love translated into action. Also Read: Earthquake insurance: India's coverage is woefully inadequate Ask these questions before it's too late: Instead of just 'How much insurance do I need?,' start asking the following. Will this policy protect my family if I die while working abroad? What happens if I'm in a country marked as a conflict zone? Are there riders available for such risks? Is there a manual review if AI rejects a claim? Will my nominee know what steps to take? Sometimes, the difference between a denied claim and a fulfilled promise is just a single question asked in time. Insurance is not about death; it's about continuation: If you're in your thirties or forties with children and/or ageing parents, or are working internationally, insurance isn't optional. It's foundational. But more than having it, you need to understand it. Choose policies that reflect your real life. Review them every year—don't set and forget. Speak to an advisor who listens, not just sells. And always, always read what seems 'small' because fine print often writes the biggest stories. The final gift we leave behind: We cannot control when or how life ends. But we can control what remains. A sense of direction. A helping hand. A system that supports, not surprises. Insurance isn't a backup. It's a goodbye that says: 'I thought of everything—even this.' So take a moment today. Read your policy. Ask uncomfortable questions. Because your family deserves more than a promise. They deserve certainty, not confusion. Compassion, not clauses. And support that doesn't disappear when they need it most. The author is joint chairman and MD, BajajCapital.
Time of India
a day ago
- Time of India
Retired man loses 2.4cr to insurance cyber scam
Mumbai: A 65-year-old retired man from Shivaji Park was cheated online by fraudsters impersonating as officials of Insurance Regulatory and Development Authority (IRDA), NSDL, NPCI, and leading banks. Under the pretext of helping him recover his lapsed insurance policy, they duped him of Rs 2.36 crore. According to the police, a retired professional's ordeal began on Nov 5, 2024, when the man received a WhatsApp voice call from a man identifying himself as Dinesh Chaturvedi, an employee of IRDA. The caller claimed he could help recover premium amounts from seven of the victim's lapsed insurance policies. The caller also produced a company ID card which was fake. The complainant was then instructed to share his policy details via email after which he was told to pay Rs 49,606 as processing fee. Convinced that he would receive Rs 24.8 lakh refund, he transferred the money to a bank account shared by the scammers. Soon after, he was told to pay tax of Rs 6 lakh initially—which he paid. Over a period of time, he transferred Rs 2.36 crore to multiple bank accounts provided by the fraudsters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dermatologist: Just Add 1 Drop Of This Household Item To Any Dark Spot And Wait 3 Minutes Undo On May 19, 2025, after repeated follow-ups yielded no result and no refund was received, the complainant realised he had been duped. He contacted the national cyber crime helpline (1930) and filed multiple complaints to Central Cyber Cell police station. A formal complaint has been lodged against people involved in the cyber scam.
Mint
10-06-2025
- Automotive
- Mint
Behind ICICI Lombard's recent surge: What the headlines won't tell you
General insurance has caught investors' attention over the last few days. Reports indicate that the ministry of road transport and highways is considering an 18-25% hike in third-party motor insurance premiums. On cue, ICICI Lombard General Insurance, which claims 10.8% share of India's motor insurance market, surged 7% in a single day on Friday. Investor enthusiasm around the stock is not new. The stock has been outperforming over the last three years. While disappointing Q4 earnings had dampened sentiment in recent months, the latest development has breathed fresh life into the counter. Can this take the stock to new heights? Motor insurance is the mainstay For general insurers, automotive insurance constitutes a major chunk, around 30% of the business. About 60% of that is for insuring damages to third parties. Third-party insurance is compulsory according to the Motor Vehicles Act. The regulator has held premiums steady in the segment for the last four years. But with more vehicles on the road, claims and loss ratios have been on the rise. In the first half of FY25, the loss ratio for motor insurance stood at 124.8%, while that for the broader general insurance sector was much lower, at 113.2%. So, higher premiums promise to bring some much-needed relief to insurers. ICICI Lombard is a well-diversified multi-line insurer. But motor insurance constitutes 40% of its business, which is split equally between own damage and third-party damage. Health, travel, and personal accident insurance comprise the next largest segment at 29%, picking up pace over the last few years. Industry slowdown weighed on business The company has seen a robust 13.1% CAGR growth in its GDPI (gross direct premium income) over the last 17 years. In fact, FY23 and FY24 reported even faster expansion at 17-18%. But growth slowed down sharply to 8.3% in FY25. Q4 numbers were even worse, with weak investment income contributing to a 1.9% year-on-year decline in profit for the quarter. It is important to note, however, that this was an industry-wide phenomenon driven primarily by a slowdown in the sales of new vehicles during the year. With a muted 8% growth in the mainstay segment of motor insurance, the non-life insurance sector reported just 6.2% growth during the year. The new rules by the Insurance Regulatory and Development Authority (Irdai) mandating deferred accounting of long-term policies instead of billing them upfront also played a role. Adjusted for the new accounting norms, the industry reported 8.6% growth. Even as competition weighed on ICICI Lombard's group health insurance segment, it surpassed industry growth in other segments. The company's focused efforts on older vehicles and commercial vehicles, as well as its improved portfolio segmentation, have worked in its favour. Removing the impact of the new accounting norms, the company's GDPI outpaced the industry with 11% year-on-year growth. The lower loss ratio in motor insurance negated the rising losses in health and crop insurance. Overall loss ratio remained largely stable at 70.6% in FY25 versus 70.8% in FY24. Lower expense ratio continued the business' moderation in combined ratio (loss ratio + expense ratio) to 102.8%. Excluding the impact of catastrophic (CAT) losses, the ratio stood even lower at 102.4%. Its bottom line expanded by 30.7% to ₹2,508 crore during the year. Still, bogged down by the topline slowdown and brokerage downgrades, the counter corrected by as much as 4% following the earnings announcement. Also Read: United Spirits is on a high after RCB's IPL win, JP Morgan upgrade and UK FTA. Can it keep buzzing? Long-term industry prospects remain promising India is the fourth-largest non-life insurance market in Asia. But the premiums constitute only 1% of GDP, against a global average of 4%. Even compared to emerging economies, India's general insurance is underpenetrated. The total addressable market stands at $36 billion, and it has ample room for growth. Premiumization in automobiles and increasing EV adoption should support growth in motor insurance. Meanwhile, improving penetration in health, property and casualty insurance is expected to drive growth in these segments. Increasing penetration of digital insurance is also expected to push growth. Over the last three years, online motor insurance has seen much faster adoption in lower-tier cities. Against a 35% growth in online motor insurance in tier-1 cities, tier-2 and tier-3 cities have seen significantly higher growths at 70% and 110%, respectively. Also Read: These three large-cap stocks are trouncing the Sensex in 2025—so far Robust fundamentals ICICI Lombard is one of India's leading non-life insurers with 8.7% share of industry GDPI. While it commands barely 3% share of the health insurance segment, its expansive distribution through its promoter bank, 1.4 lakh individual agents and almost 1,000 virtual offices have helped it outpace the industry in other segments. It leads the property and casualty insurance segment with 13% share in fire insurance and 20% in marine insurance. It also has high double-digit shares of India's engineering and liability insurance segments. Since FY23, ICICI Lombard has outrun the industry with consistently superior fundamentals. The stock's outperformance over the last 3 years reflects this optimism. With a data analytics-driven approach, the company has been able to balance growth and risk management. Its focus on profitable growth through conservative underwriting has been bearing fruit. The combined ratio has improved over the years and is significantly ahead of the competition. Its reserves are also robust. Incurred but not reported (IBNR) utilization continued to improve during the year, indicating the robustness of reserves. The solvency ratio of 2.69x is comfortably ahead of the regulatory minimum of 1.5x and its peers. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? Strong outlook despite risks Anticipating a sustained slowdown in auto sales, the non-life insurance industry is likely to continue in the slow lane over the next couple of years. ICICI Lombard faces an additional risk from its health insurance segment, which has lagged the industry amid intense competition. Any further pickup in competition, spike in claims, or drop in investment income can weigh on the business. But the stiff pricing competition faced lately from public insurers in retail-focused segments should abate over the next few years, as players gradually conform to the regulatory cap of 30% on expenses of management (EOM), including commissions and promotional expenses. The company also stands to benefit from investments made in recent years towards the expansion of products and distribution in its health insurance segment. Any relief on GST in health insurance can also benefit the company. It is targeting a double-digit growth in the segment. Over the longer term, industry tailwinds should help support growth, while increasing digital penetration can improve profitability. ICICI Lombard's focus on enhancing penetration in tier-3 and tier-4 cities can be expected to drive growth for the company. Meanwhile, its conservative underwriting should support margins. Management has guided for its combined ratio to continue down the glide path to around 101.5% by FY27. Its target price has been pegged at ₹2,200 apiece, valuing the business at 32 times its FY27 earnings. This reflects an upside of 8% over current levels. For more such analysis, read Profit Pulse. Ananya Roy is the founder ofCredibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
Time of India
05-06-2025
- Time of India
Woman held for duping Salt Lake sr citizen of 32.3L
1 2 3 Kolkata: Police probing a cyber fraud case where a 72-year-old Salt Lake resident lost Rs 32.3 lakh after being duped by a woman claiming to be from the Insurance Regulatory and Development Authority (IRDA) arrested the accused on Wednesday. Accused Ananya Sarkar, who met the elderly woman under the fake identity of Sreeja Roy, convinced her to take a loan against her FD and pay her the amount while promising to settle an old and disputed insurance policy the 72-year-old had. The arrest followed a complaint lodged by the victim's son, who works abroad, exposing a month-long con targeting the elderly widow over a bogus insurance recovery scheme. According to the complaint, Sarkar, a resident of Agarpara, lured the CL Block resident by claiming she could recover up to Rs 50 lakh from a lapsed insurance policy. Police said the fraud began in Nov 2024 when Sarkar contacted her and gained her trust by calling her to a swanky office in New Town and even introducing her to a "superior officer" while feigning empathy and promising significant returns. According to the FIR at Bidhannagar East PS, she asked the woman to initially pay a processing fee of Rs 80,000. When the woman said she didn't have cash, Sarkar allegedly convinced her to take loans against fixed deposits, citing processing fees and other fictitious charges. Over two and a half months — from Nov 19, 2024, to Jan 31, 2025 — Rs 32.3 lakh were withdrawn in 10 separate transactions as the woman handed the cash over to Sarkar, meeting her at different places ranging from shopping malls to bank branches. The fraud came to light in Feb 2025 when the woman's son returned to Salt Lake, overheard a suspicious phone conversation at home, and intervened. Realising his mother was deceived, he recorded video evidence and lodged a complaint on Feb 10. Following probe, police tracked the accused's real identity and arrested Sarkar from her residence in Agarpara. She was produced before a local court, which granted police four days' custody for further interrogation. "We are interrogating her to find the rest of the gang members. We are also trying to trace the money trail and will try our best to ensure the woman gets her money back," said a senior officer of Bidhannagar City Police. GFX 72-yr-old Salt Lake woman duped of Rs 32.3 lakh Accused posed as IRDA representative Convinced victim to take loan against FD, promised to settle an insurance policy dispute Money withdrawn in 10 transactions between last Nov and this Jan and handed over to accused Fraud came to light in Feb 2025 after the senior citizen's son returned to Salt Lake from abroad Accused held on Wednesday
Time of India
04-06-2025
- Business
- Time of India
Startups leverage distribution chops to gain ground in general insurance
Live Events As insurance penetration in India remains a challenge, more startups are looking to leverage their distribution capabilities to grab a chunk of the general insurance startups including bike-taxi platform Rapido, wealth-tech firm IndMoney and vehicle services firm Park+ have already secured or are in the process of applying for a corporate agency licence , which allows companies to tie up with 27 insurance companies across life, general and health to distribute their is currently seeking an approval from the Insurance Regulatory and Development Authority (IRDAI) for a composite corporate agent licence, aiming to offer insurance products to both drivers and customers, according to two people in the know.'Rapido is planning to take a corporate agency registration from IRDAI (Insurance Regulatory and Development Authority) to be able to distribute insurance products to its drivers…it has already set up a new subsidiary for this purpose,' one of the people cited above Bengaluru-based company incorporated a new subsidiary last month and approved a resolution to undertake 'the insurance business as a corporate agent (composite) in respect of all classes of insurance, including motor insurance, general insurance, health insurance and life insurance,' according to a filing made with the Registrar of Companies (RoC). ET reported on March 12 that Rapido is expected to launch its food delivery service to compete with Zomato and Swiggy. Presently, the mobility firm fulfills almost 3-3.5 million ride hailing trips and parcel deliveries per plans in insurance reflect a similar strategy that was adopted by ride-hailing major Ola , a few years ago. The Bengaluru-based company had launched a full-stack insurance offering for its driver partners and its customers. Ola was also selling trip insurance to customers taking rides on its a similar move, vehicle-management platform Park+ is vying for a full-stack insurance distribution business. The company got the corporate agency licence in March and is looking to complete its integrations with around three to four insurance companies.'For us insurance is an ancillary business opportunity, something that is important for our customers. We are starting with vehicle insurance and the plan is to build an end-to-end process for our customers on the app from buying to service and claims support,' said Amit Lakhotia, founder, Park+.A senior industry insider told ET that for startups operating in the vehicle management or ride hailing space, car insurance is a big opportunity given the government mandate in this sector. However, he added, that buyers in this sector are extremely cost conscious which makes the viability of the business a challenge.'Since car insurance is a mandatory product many vehicle owner buys the cheapest product available, which means that innovating on new products becomes a challenge for tech startups,' he added. Industry estimates suggest more than 90% of the vehicle insurance business is still driven by offline agents and car sellers, that is the market these players intend to target. ET reported in November last year that fintech major Cred, which also has a corporate agent licence, is looking to monetise its vehicle management platform Cred Garage through insurance distribution. Cred Garage allows its users to manage their vehicles from tracking challans to getting services to renewal of which wants to get the entire country insured by 2047, is open to getting startups to distribute more of the insurance products so the market companies have also opened up for more such tech partnerships given these platforms have captive customers who can be acquired relatively mid-sized fintechs are lapping up this opportunity to turn into insurance distributors. While the likes of PhonePe, Amazon Pay and Paytm are large distributors already, players like credit distribution startup Freo and wealth management platform IndMoney have also gotten into this space. IndMoney has already partnered with 13 insurance companies to distribute all forms of insurance products to their to a detailed query by ET, Rapido said, "We would like to clarify that our current strategic focus remains on our core operations, and we have no plans to enter the insurance business.'
