Monday, May 23, 2011

Are the financial results of our General Insurance Companies disappointing?

Yes, it is disappointing to see that large numbers of General Insurance Companies are incurring losses and heavy losses.
Loss figure leaves impression that claims settlement will be a delayed process and may be you will have to settle with figure of 60% or 70%.
Of claim lodged. This is because of the fact that it is important for insurance companies to pay salaries/ bills/travel expenses and then only they can think of funds availability for payment of claims?

We will be happier to see profit making and financially strong insurance companies.

Healthy long life is good- Are you prepared?

We are living longer and in few years the average age of Indian citizens will touch 75 years or may be 80 years. Are we prepared to live longer but in a healthy way? Have we planned for our health care in the coming years? Very few persons have planned for health care, the fact is that for many age related treatments like hernia, cataract, hysterectomy, knee replacement a person may have to be hospitalized.

What I find is that majority of people have left this important aspect of their life to Almightily, God, Goddess or Guruji in whom they have 100% faith.

Someone may need cataract surgery at 60 years and someone may need it at age of 65 years. If you are going to live till the age of 92 years then you will definitely need hospitalization 2 to 5 times.

The solution lies in buying good health insurance and too where you smile will get claim support with a smile. Avoid disfeatured policies with large number of sub limits/exclusion clauses.

Are the financial results disappointing?

It is a disappointing thing when we see that large insurance companies are incoming losses.

Saturday, May 21, 2011

Why you should buy Health Insurance?

1. Good health is most important thing in your life. When you need health care treatment then you must have it, otherwise the whole world seems to be worth nothing to you.

2. Health care costs are increasing due to

• Normal inflation due to increase in petrol costs, electricity costs, taxation, imposition of new levies/taxes.

• Improvement in medical technology results in availability of new equipment, which is better, more accurate in diagnosis. We have moved step by step from x-ray, digital x-ray, CAT scan, MRI, modern models of MRI. More developments will be coming.

• Development of new/better medicines due to application of Biotechnology/ genetics. As high R+D costs are involved and extensive clinical trials cost lot of time/money therefore their price is definitely on the high side in the beginning.

• Highly skilled doctors/nurses/paramedical staff is attracted by developed countries as a result of which health care providers have to increase compensation level to retain the staff.

• Real estate cost is high and is increasing.

All these points indicate/confirm that costs will go up year by year and you have to be prepared for it. We foresee health care costs to go up by 21% in next year.

Many a times I have come across person telling me- I own 3 flats in Gurgaon and if I needed will sell 1 of that to pay for my medical treatment. Reality is that it does not happen. You won’t sell one bathroom of your flat to pay for knee replacement.

You must have a good health insurance policy to take care of your needs.

Some people say that they will go to government or charitable hospital for treatment, when the need arises.

Recently I came across photograph of Safdarjung Hospital, a very famous hospital in New Delhi

The cost of treatment in this hospital may be less but due to excessive pressure to cater to large number of patients you may have to compromise on many things time you should not be surprised if you have to wait for 6 months for MRI test.

Shortage of ventilators has resulted in a stage that attendants or relatives of patients are being asked to pump manual ventilator to revive patients.

You have to make up your mind whether you will like to have good treatment in a good hospital and that too with dignity or you will like to shorten your life. Choice is yours.