Need of Insurance for Pharmaceutical Industry

One of the imperative industries which face the complex range of risk is the Pharmaceutical Industry. Nowadays, the huge risk and major challenges faced by the Pharmaceutical Industries include counterfeiting and intellectual properties, and product recalls owing to the increase in the outsourcing and enhanced efficiency involved to save cost and maintain quality. Product safety is one of the important and top priorities of these pharmaceutical companies. Faulty drugs not only lead to reputation damage but may also cost the life of the people. Other issues include System Crisis in Healthcare, Strict Legal Environment, Sophisticated Supply Chain, Increase in the Distribution Cost, Growing Regulation and Intense Competition in the market.

Therefore, there is a need for a professional, sophisticated risk management program and tailored insurance cover for this industry. It is a must for the pharmaceutical industry to opt for an insurance company that not only has the knowledge and expertise to support them but also have the financial strength to provide major capacity and worldwide resource to provide immediate help in case of a claim. The policy offered by this company must be efficient enough to cover the worldwide operations of the clients and particularly expertise in clinical trials liability insurance, and at the same time offer specialist cover around the world ranging from single studies to multi-location research program. Today, there are many insurance companies which are expertise in this specialist industry and are dedicated to offer enhanced service to their customers.

The reason to opt for this pharmaceutical insurance policy is that it provides a tailored solution to the clients (be they pharmaceutical producers, distribution companies or research centres). The policy covers specialist property, liability covers (including the clinical trials liability insurance), supply chain risk management and marine cargo solutions. It also covers property damage which includes physical damage from natural calamities such as windstorms, earthquakes, flooding etc.

The insurance provides pharmacy insurance, professional indemnity, clinical trials, policy wording specifically designed to provide broad cover, drug licences, manufacturing of product, errors and omissions, avoiding malpractice, financial exposures, requirements for licence agreements, contract issues, product and medicine recalls.

Before selecting the insurer, it is also essential to consider that the insurance company you select understands all the legality and potential exposures you face especially when you are in a high-risk pharmaceuticals industry. The company with the backing of a leading team of legal professional’s experience and index specialist knowledge can give you the best possible advice on risk management and the insurance.

It is a wise thing to take the risk, without it there is no room for your business to grow. But it is also important to connect to a broker that helps to empower you to embrace your risk.

Aadhaar linking with insurance policies-several advantages for policyholders?

Even as government has announced the timeline to link Aadhaar details with financial services from 31st December 2017 to 31st March 2018

-policholders needs to mandatory do it before the end of this financial year. Earlier the Insurance Regulatory and Development Authority of India (Irdai) had announced to link Aadhaar with insurance policies. There are several concerns raised by many people on compulsory linkage of Aadhar with financial products. But, advantages outweigh the apprehensions as policyholders might reap the final benefits of this exercise.

Is it only for insurance policies?

No, in the recent past we have seen government making it mandatory for consumers to link many important services with Aadhaar. Customers might be getting frequent reminders to link their banks account, mutual fund and mobile number with Aadhaar. Recently, the Reserve Bank of India also clarified that it is mandatory to link bank accounts with Aadhaar. With this linking of Aadhaar, fake claims arising in insurance sector might come down which could eventually benefit policyholder. Even the government claims to have removed millions of fake beneficiaries for government benefits by Aadhaar linking. As reported in various media, over 22-23 million fake ration cards have been scrapped, potentially saving the government Rs14,000 crore in food subsidy every year. While three states discovered that about 2.7 lakh fake students were availing the mid-day meal (MDM) scheme due to the Aadhaar.

Impact of linking Aadhaar with insurance policies and its advantages

Insurance regulator had stated that linking of Aadhaar number to insurance policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017. As said earlier linking of Aadhaar with insurance policies has numerous benefits like cleaning out duplications and fake policies and provides accurate data. It is very important to note that, insurance frauds have cost industry over Rs 10,000 crore annually, suggest the figures. Linking of Aadhaar with financial services will help eradicate fake accounts and fake insurance policies.

In Indian insurance industry there are many fraudulent activities like accounts opened with fake signatures or duplications in PAN. Due to the surge in such activities there are many areas in state like Gujarat, Karnataka and Haryana where insurance companies take utmost care while giving a policy. With this linking of Aadhaar, such duplicity will reduce, and fake claims might come down for industry which could eventually benefit policyholder. Apart from this issue, many times insurance companies face problems while paying out the claims or when the policy gets matured. Policyholder sometimes forgets to update the change in address or bank accounts which would result is non-payment of claims. This exercise will ensure that, maturity proceeds are directly transferred to the banks account of the policyholder when policy gets matured.

Few obstacles in the process

On the flip side, there are many arguments that, linking of such services will lead to having all information on an individual at a single place, which could make surveillance easier and increase the risks if this information is hacked. However, with direction from the regulator, policyholders needs to complete the procedure in time as insurance companies will require Aadhaar linkage, during renewals or during claims registrations.  The insurer can also keep in waiting the claim payments until the linkage and authentication has been completed. So, it is advised for policyholders to complete the process at the earliest to avoid any future difficulties while getting the maturity proceeds.

The Aadhaar linking is applicable for all the life as well as non-life insurance companies. This move will create a combined platform for all the financial services and also strengthen government’s digitization initiative. Though, the procedure may be tiring initially, but in the long run will provide unprecedented benefits by preventing fraudulent acts and streamlining all the KYC process.

Process to link Aadhaar with your insurance policies

As discussed above in the article, linking insurance policy with the 12-digit unique identification number is compulsory now. The insurance regulator has made Aadhaar and PAN/Form 60 linking mandatory for availing any financial service. Irdai has directed all the insurance companies to link the new and existing insurance policies to the Aadhar number, without any delay. Failing to complete the procedure may propel insures to hold the claim until the linking is complete. However still there is no clarity on this issue. There are three ways to link Aadhar with an insurance including online, offline and text messaging.

Linking through online mode

This is most convenient and easy way to link your insurance policy with Aadhaar.

Step 1: For registered users (who are paying premiums online) they should visit the insurance company’s portal.

Step 2: Give the exact Aadhaar details as mentioned by the insurance companies, re-check the number and submit

Step 3: One time password will be generated on the Aadhar registered mobile number, put the password and Aadhar will be linked with the policy

However for policyholders who are not registered, they just need to give extra details like PAN, date of birth, e-mail id, policy number and Aadhaar number in the Step 2. All the other steps remains same.

Linking through offline mode  

For any reason if you can do online linking, here how you can link your policies offline. One needs to have, Aadhaar or PAN mandate form, self-attested copy of Aadhaar card and PAN Card or Form 60and policy number. To get the form you can get in touch with our representative at Probus or can download from the website of insurance companies. After filling the form, you can submit this Aadhaar / PAN Mandate Form along with a self-attested copy of Aadhaar card and PAN Card / Form 60 at the nearest Branch or at Probus office for linking your policies. A self attested copy of Aadhaar needs to be furnished to complete the process.

A Tale of ‘No Home Insurance’

KKM Mahesh is a retired government officer, currently residing with his children in Bangalore. He has a beautiful house in Chennai, built over a period of time by the couple, with their life long savings.

Mahesh didn’t want to leave the house lying vacant so has let out half of it as a means to cover up those recurring house expenses.

In fact, the floods which swept Chennai last year did not really affect his house and he was grateful for that. He believes he took a very prudent decision buying his retirement ‘Dream House near the sea and away from the busy central areas of Chennai.

His friend Guruprasad who owns a similar house close by had recently purchased a home owners packaged policy for Rs.1cr. He explained to Mahesh the benefits of the policy, which were as below –

Package policy – Home Insurance

Structure including contents

Sum assured – Rs. 1,00,00,000
Premium/year – Rs. 25,000

This included furniture, electrical items like fridge, television and other gadgets, jewellery, kitchen appliances, other general items and even boundary walls and fences. The policy allowed the contents to be covered for 5 years and structure for 10 years at a stretch.

Guruprasad suggested Mahesh should buy a similar cover for his house. But being a person who thought twice before spending every rupee, Mahesh felt those few thousands were just waste of money. Guess, he was a bit too off mark.

It was during Cyclone Vardah that the need for Home Insurance cover dawned on him.

With the cyclone landing in Chennai, in a matter of few days, the surroundings of his house turned from the beautiful flora to mud and debris. The trees came crashing into the house and all his prized possessions lost their worth. Life came to a standstill!

Gosh! How could he be so myopic in his outlook towards the greater benefits of a Home Owners Packaged Insurance? Under present circumstances, the insurance company paid out sum assured upto the damages incurred (Rs.50Lacs) to his friend Gururprasad while Mahesh had to search for ways to finance the restoration of his house and its contents.

He wondered, only if he had taken the home insurance policy, he would have been at peace of mind today.

14 Tips for Safe Driving In Winter

In India, fog is known to be the most difficult weather condition to drive in. Visibility is down to a few metres in the peak months of December January and mid February.

Moreover, taking side turn is the trickiest aspect of driving, making it practically a blind spot. The whole of North India faces poor visibility due to fog during mornings and evenings, in an already short day.

Few practical aspects you must keep in mind while driving in winter, especially foggy conditions-

1. Drive with fog lamps and low beam headlights – Before driving, ensure that you have proper working fog lamps. The best part about fog lamps is that the light is thrown straight on the road due to the low position of the lamps, reducing the chances of reflection. Further, always use low beam headlights as high beams will reflect back on you.

2. Cars with Reflective tapes and torch lights – Reflective tapes are stuck on the front and back of the car and are visible from atleast 50 metres even in dense fog. This helps vehicles apply brakes on time, whether they are coming from rear or front. Keeping a long beam torch or multipurpose torch in the car can help in managing emergency situations.

3. Clear your windshield and windows of existing fog – Ensure that you clean them of all the fog before starting your drive as foggy windshield is very risky to drive with.

4. Check the weather reports – Check for the weather predictions, in case you are planning to drive long distance. Also inform a friend or relative about the direction you are heading. Further, always be cautious on bridges and overpasses as they are commonly the first areas to become icy.

5. Never change lane – Foggy weather conditions are like playing blind. You never know what will happen in the next second. Hence never ever change lanes while driving, unless necessary and blow horns repeatedly while doing so.

6. Keep safe distance from the front car – Maintain good distance from the car driving ahead of your car. In case you have to take a turn, do keep indicator lights on, as this can be life saving for you as well.

7. Do not stop car mid way while driving – Fog enveloped road is not a good place to stop your car mid way. This can lead to chain reaction of accidents involving the rear cars. In case you have lost way, find a suitable point where you can park your car aside with parking lights on.

8. Maintaining speed and using cruise control – Speed limits of normal weather don’t apply in winter, especially in fog filled weather. Over speeding or jumping red lights is also not a prudent decision. And in case you are driving on icy roads, never move your car to cruise control as you would want a better control on the car.

9. Snow blocking the exhaust pipe – There is a danger of carbon monoxide poisoning if snow blocks the exhaust pipe and can lead to deadly gas build up in your car. Open your window slightly to help prevent the build-up.

10. Applying brakes on slippery surfaces – Know how to apply brake on slippery surfaces. Vehicles with anti-lock brakes operate much differently from those that do not have anti-lock brakes.

11. Avoiding mobiles while driving – Many drivers have the habit of checking mobiles on a slow moving traffic. Avoid the temptation to check your mobile as all your attention should be on arriving safely.

12. Drunk driving – There is a tendency to drink and drive during winter which can increases the chances of a fatal accident, especially on fog filled days.

13. Carry Sufficient fuel – Maintain enough fuel in the tank to keep the car cabin warm, in case you are stuck outside in the cold weather.

14. Highway and expressway driving – Keep all your vehicle indicators on while driving on the highways and express lanes.

Do remember – We might take optimum precaution while driving but in the eventuality of a fatal accident, car insurance won’t be a sufficient cover for your health and life.

Ensure that you have a good personal accident and health cover in place to take care of your medical needs. Also have an adequate life cover in place which can financially support your loved ones, when you are no more.


4G ULIPs are here! How to invest to Best Plans – Here’s all you need to know

According to a latest UN report, India has the world’s largest youth population despite having the smaller population than China. India is also termed as “Young Country”, while half of the population is under 25 and two-thirds are under the age of 35 years. It is also projected that this population would probably reach to comprise almost 2/3rd of our total population by 2021. Also, India is likely to have the world’s largest workplace by 2027 with a billion of people between the age group of 15 to 64 years. Additionally, it is expected that by 2020, the average age in India will be 29 and it is set to become the world’s youngest country with 64% of its population in the working age group.

These are the troops of people who believe living their lives by their own set of rules and highly passionate towards following their dreams. Therefore, when it comes to investment options for this young section of people, the insurance industry needs to roll up their sleeves and come with better options that can attract this millennial crowd.

New Age ULIPs or Enter NULIP’s are also termed as 4G ULIPs. This ULIPs offer more flexibility than the traditional ULIPs and come at a comparatively lower cost. The premium allocation charges are least and the fund management goes from 1.35% for pure equity funds to 0.95% for debt funds. The other additional features include zero premium allocation and zero policy admin charge and the mortality cost of the life cover also gets covered on maturity.

Now the important and most common question that lights the mind of these millennial is how to invest in a 4G ULIP. This investment plan is ideal for people in the age group between 25 to 45 years owing to its long-term investment. Adding cherry to the cake, this insurance is readily available online and be bought at just one click.

In addition to this, there are two different ways of investing in a 4G ULIP plan. The first one is annual premiums and the second one is systematic investment plans.

The 4G ULIPs works on the concept of rupee cost averaging which means that the cost at which you purchase the units of a fund are averaged. So in this case, the down the market is, the more units you should buy and if the market is up than the lesser unit one should buy.

Whereas talking about the annual premiums, the only fallback with this premium is that one might not be able to take advantage when the market is low as the payment done would be a lump sum amount.

Also, for the one who cannot invest a lump sum amount, he or she has an option of going with the monthly premium payment mode wherein the market fluctuations would be averaged out.

The 4G ULIPs plans are considered to be one of the optimum investment options in the current market scenarios because ULIPs features options wherein investors can switch between equities and debt irrespective of the SIP or Annual Premium. This shifting can be done even during the first 5 years of compulsory lock-in and you are recommended to utilize these benefits for your advantage by switching funds on the basis of the market status.

Family Health Insurance

Top 7 Benefits of Renewing your Two-Wheeler Insurance on Time

Two-wheelers are one of the majorly used vehicles especially in the metropolitan cities where traffic is a major concern. People use two-wheeler not only for personal use but also for various commercial purposes. Maybe it a weekend travel with buddies or daily commuting to work, two-wheelers are the most preferred options. Two-wheelers are one of the best companions for Indians when it comes to saving time and money. However, people often neglect or forget to renew their two-wheelers against natural or man-made calamities which might end up with lots of unpleasant expenses during any unforeseen mishaps. Renewing your insurance on time is the best way to keep your two-wheeler secured.

As per the Motor Vehicles Act, 1998 it is illegal to ride a two-wheeler without having a valid insurance policy. Out of the total two-wheelers running down the lane of the country only 25% are insured while the other 75% are never renewed which is a matter of major concern. Vehicle owners need to understand the importance of timely renewal of the policy as it not only ensures continuity in cover but also offers you a sense of security.

Below mentioned are Top 7 benefits of renewing your two-wheeler insurance on time:

Security against Natural Perils

Life is unpredictable and you never know what unforeseen situation might come your way. Renewing your two-wheeler insurance on time would aid you in saving your heavy expenses that may incur due to any natural perils. Your two-wheeler insurance policy would bear the huge cost of repairing the damages caused due to natural calamities like Earthquake, Cyclone, landslide, self-ignition, fire etc.

Protection against Man-made Calamities

Renewing your two-wheeler insurance from time-to-time could be a silver lining of economic recovery during any man-made disaster such as strike, war, burglary, theft or any accidents. It covers the replacement charges or service cost whichever is compulsory as per the situation.

Access to various perks

In case if the insured person has not made the claim even once during the policy term, he/she is eligible to avail the benefits of NCB (No Claim Bonus) on the premium amount. One of the major pros of renewing the insurance policy on time is that you can get the perks of NCB and at the same time the policy is renewed at a lower premium. If you fail to renew your policy on time or if there is any kind of break in the policy period than you might be deprived of these perks.

Add-on covers

While renewing your insurance policy you are given a chance to select any desired cover from the various options available which you might have missed adding while purchasing the policy. Some of the add-on covers include zero depreciation cover, personal accident cover for unnamed hirers or pillion riders and covers for loss of accessories.

You can change your policy term

While you are renewing your policy it is possible to change the term of the policy i.e. you can renew the policy for 1, 2 or 3 years as per your requirement. The term of the plan is directly proportional to the discounts or benefits you get i.e. the greater the term of the insurance plan the higher would be the benefits.

Gives you peace of mind

Timely renewal of insurance makes you financial equipped during any mishap which can attain you peace of mind. It assures that you are safe when interrogated by the traffic police and also covers injuries caused during the accident. Moreover, having the Insurance makes you remain on the right side of the law.

Protection of Legal Interest

Renewal of your insurance policy assures that you are covered for any legal proceedings in case your two-wheeler is involved in any road accident causing any damage or injury to a third-party property or person.Renewing your insurance on time ensures that your obligations as an owner of the two-wheeler are fulfilled. In case of unforeseen situations, the cover provides monetary assistance to the insured person.