Ask the Readers: Evaluating Life Insurance Providers

by Vinaya HS on September 13, 2010

in Finance

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{ 5 comments… read them below or add one }

Ashutosh September 13, 2010 at 5:08 PM

I would choose LIC specifically if I want an “off-line” term insurance product. Else the recently launched online term plan by ICICI seems pretty good.

Jagbir September 13, 2010 at 10:30 PM

I’ve Term insurance split in two policies, one from LIC and other one from ICICI (iProtect). This is just a matter of preference otherwise I dont give more weightage to LIC over established private players.

- Jagbir

Vinaya HS September 16, 2010 at 11:32 AM

As of writing this analysis, the votes are overwhelmingly in favor of LIC.

But personally, I am undecided — I’ve had bad experiences with LIC (chiefly on account of agents/direct marketers and clueless diagnostics outlets). I’m not too keen on the private players too since I’ve read that their claims rejection ratio is disproportionately high. Quite a dilemma.

Sandriano September 28, 2010 at 11:50 PM

Hi Vinaya,

The 3 important factors which influenced my decision in favour of LIC are

1. In case of the insurance company going bust, the Govt of India is the guarantor for the entire insurance sum on behalf of LIC whereas for others it is only upto to max. of 1 Lakh.

2. The private insurance providers play havoc with the insurance money. They literally play with your money and make a mockery of IRDA guidelines. ICICI Bank is a prime example. Just can’t bet on private players for my insurance. In comparison, I have seen LIC taking a conservative bet by investing the money in blue chip companies and that too during the down turn.

3. As mentioned by you, Claims Rejection Ratio is the lowest for LIC.

Regards,
Sandriano

Vinaya H S September 29, 2010 at 10:54 AM

@Sandriano:

Could you point me to the information source for #1? I didn’t know this fact. Thanks for sharing.

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