Monday, August 12, 2013

PSU Insurance Premium will always be lower – is it a Myth

Let us look at the following table:

Yes – most of us assume or believe that PSU Insurance Premium will always be lower – is it a truth or is it a myth? With entry of many insurance companies in last 12 years we find that this assumption is not valid.

Family Floater Mediclaim Policy (2+1 Adults)

Insurance Company
Apollo Munich
Religare
Oriental
Product Name
Optima
Care
Gold
Sum Insured (Rs.)
10 Lakhs
10 Lakhs
10 Lakhs
Age



41


14150
37


2830
8


2130




Net Premium
14258
15192
19110
Service Tax 12.36%
1762
1878
2362
Total Premium
16020
17070
21472
 
You will notice that for a family of 41, 37, & 8 with sum assured (family floater) of Rs.10 lakhs the premium is:

Company
Premium Amount (Rs.)
Higher than Apollo Munich by %
Apollo Munich
16020
-- --
Religare
17070
6.55%
Oriental
21472
34.03%

Therefore we come to the conclusion that one should consider various options before going in for selection of any insurance policy.

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