India Development Debate: Covid and Health Insurance. ET Now

With health insurance becoming more important than ever amidst the harsh second wave of covid-19, data from states across the country suggests that only 51% of the covid-19 claims received from the beginning of the pandemic have been settled. Tamanna Inamdar breaks down how to make your health insurance policy work for you on the India Development Debate tonight with Monika Halan, Author, Let’s Talk Money, Tarun Mathur, Co-Founder, and Naval Goel, CEO & Founder,

See the show here.

Read the story here.

On the India Development Debate, I spoke about the fact that insurance firms are not paying covid claims in full. The problem is only half with insurance contracts and firms. The other half has to do with hospitals padding costs. @TamannaInamdar@ETNOWlive

The problem with the insurance contracts are that they are mostly one-sided with the individual having very little bargaining power. Companies can refuse to pay or deduct the payout by interpreting the policy provisions in their own way. This is market failure. When there is market failure government needs to intervene to put down road rules. Insurance regulator needs an upgrade – that’s an easier part. India needs a regulator for hospitals urgently.

See the show here: India Development Debate

COVID-19 insurance complexity: Good time for regulator to set things right, says Monika Halan. CNBC

Insurance companies are in focus as the Insurance Regulatory and Development Authority of India (IRDAI) has received complaints about COVID policies not being offered and renewed. Atul Sahai, CMD of the New India Assurance Company and Monika Halan, Author of Let’s Talk Money shared their views.

“As far as New India Assurance is concerned, I don’t see this happening. This could be the approach adopted by some of the companies but in the wake of COVID, no new guidelines have been issued as far as we are concerned,” said Sahai.

“The need for health insurance has suddenly increased for most people. The new insurance buyer has got afraid that something may happen and is now running to buy insurance. Globally, insurance companies are struggling to understand this risk and to price this into premiums. So, different companies approach the cooling-off period differently. COVID-19 pandemic is a new event and everyone is struggling to find their balance with it and people seeking health insurance cover for the first time post COVID are in for a little bit of a rough ride unfortunately,” Halan added.

“This is a great time for the government and the regulator to set things right in terms of insurance,” Halan mentioned.

According to Halan, higher loading is expected for the new policy entrants.

“The companies will have to probably increase the premium for the entire age bucket. The price rise will be across the board and not specific to a person,” she mentioned.

Incurred Claim Ratio (ICR) is used to gauge whether this market is fair or not. The number is obtained by total claims paid divided by the total premium.

While explaining the current market condition, Halan shared, “If the net number is at 100 percent, then we are seeing a fair marketplace where after profit and cost, insurance companies are neutral.”

“According to data, the private insurance companies’ ICR is 53 percent, the standalone insurance companies’ number is 56 percent, and the PSUs are 92 percent, which means they are doing well. I think it is a complete regulatory failure because you are not being able to ensure that there is no gouging of the customer,” she further mentioned.

“We are not going to increase the premium till we tide over this crisis,” Sahai shared.


Money with Monika S4 E19. Sebi settles the doctor or chemist issue. Other regulators needs to do the same

The Securities and Exchange Board of India has become the first financial regulator to settle the debate regarding the classification of advisors and agents when it comes to financial instruments. Personal finance expert Monika Halan explains Sebi’s solution, comparing advisors to doctors, and agents to chemists. Agents are only supposed to sell products which customers seek, while advisors will make recommendations after assessing various factors related to the buyer. Meanwhile, other regulators like the Insurance Regulatory and Development Authority, and the Reserve Bank of India are still lagging behind. Is it time for the government to intervene? Monika Halan is consulting editor, Mint, and author of the book ‘Let’s Talk Money’.

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Opinion | Real estate will cost up to 50% less, minus bribes

As you pass through a beautiful museum at an airport on the way to your flight, you would stop to admire the sculptures, the paintings, the wall art and murals that make for such compelling beauty and atmosphere. But a former Airports Authority head once stopped me midway in my appreciation of this wonder to burst the beauty bubble. When project costs are mapped closely, art is a great way to inflate costs. Who knows how to value art, he said succinctly. Then it is a matter of connecting dots to figure out what he really said. The cost of expensive infrastructure is paid by the users finally in different ways. One way is the “user development” fees, which ranges from a few hundred to a few thousand over the past years. The latest rates are here.

We know intuitively that we pay for corruption in many ways, but the cost of graft in anything linked to real estate has the potential to cost not just a few hundred rupees to those who have the capacity to afford a flight, but far more. The worst hit is the roof-over-the-head-seeking homeowner who gets priced out of the market or thrown to distant suburbs with poor amenities. The story of residential real estate can be summed up in three words: stuffed or starving. In the premium segment, there is an oversupply, and in the affordable housing segment, there is a demand overhang estimated to be about 10 million units in 2019 and a supply overhang of about 13 million units in the premium and luxury market. What people want they don’t build. What they build, people don’t want. The key to the story is the price.

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