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HDFC ERGO General Insurance
Invest in Insurance Stocks
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Posted: 14 Oct 2015 04:57 AM PDT

HDFC ERGO General Insurance Co. Ltd

HDFC Car Insurance

HDFC ERGO General Insurance Company Limited is a joint venture between Housing Development Finance Company (HDFC) and ERGO International AG, the primary insurance entity of the Munich Re group, the world's pre-eminent reinsurer. HDFC ERGO General Insurance Company has been rated iAAA by ICRA (an associate of Mood's Investors Service) which is an indication of highest claim paying ability.

HDFC car insurance policy is available online in three quick stages.

The Key features of HDFC car insurance are listed below:

Issuance of Instant Online Policy
Toll-free help line for claims or any queries related to the policy
Provides value added services like ambulance, towing, claim assistance
Fast-track settlement processes
Cashless claim service at authorized dealers within the network
Estimate approval in 24 hours of car reaching in garage
Over 1600 plus network garages PAN India
Availability of Discounts like Discount for Automobile Association Members, No Claim Bonus, Discount based on Profession and Age
No lengthy procedures
Strong support by the dedicated customer support team
Car Towing charges of Rs 1500 onward is reimbursed on actual basis or whichever is lower

POLICY COVERAGE:

The HDFC car Insurance policy would cover Loss or Damage to the vehicle caused by events like Burglary, House Breaking, Theft, Accident, Lightning, Explosion, Self Ignition, Fire, Riots, Malicious Acts, Terrorism, Strikes, Transit by rail, road, air, lift or inland waterways, Landslide, Earthquake, Flood, Storm or Rockslide. The policy also covers Third Party liability arising out of Injury/Death and Property Damage of a third party due to accident which is mandatory in India. A Personal Accident Cover of upto Rs. 2 lacs is provided to owner-driver. It can also be extended to paid drivers and co-passengers on a named as well as unnamed basis.

POLICY EXCLUSIONS:

The major exclusion in HDFC Car Insurance policy are Damage caused by person driving without a valid license, by person driving under the influence of liquor, drugs or intoxicating substances, Failure or breakdown which are mechanical or electrical in nature, general wear, tear and aging of the car, depreciation of the car, loss or damages caused due to war, nuclear risks or mutiny, damage to tyres and tubes unless damaged in accident, damage or loss outside India, liability of the company shall be limited to 50% of the cost of replacement.

NO CLAIM BONUS:

As an incentive to the careful policy holders, HDFC car insurance rewards its policy holders by providing a No Claim bonus of 20% if there are no claims made in the preceding year of the policy and so on. The HDFC Car Insurance also offers additional unique discounts like:

Age Discount: In case the policy holder is aged between 36 to 45 years 5% discount and if aged between 46 to 60 years 10% discount is available on the own damage section of the policy. Policy holder simply needs to provide his/her Pan card copy to avail Age Discount which can be submitted during claim if the policy is purchased online.

Profession Discount: The policy holder can avail 5% discount on the own damage section of the policy, provided he pursues any of the listed occupation like qualified and practicing Chartered Accountant, Serving in defense and paramilitary services, Teachers working in Government recognized Schools, Colleges, and Universities & Educational Institutions, Employees of State and Central Government departments, Medical doctors who are registered with any Government recognized Medical Councils.

To avail this discount insured person belonging to the above profession needs to submit either of the education or employment certificate. It can also be submitted during claim if the policy is purchased online.

HDFC car insurance policy has special Add On Plans which is very beneficial to the policy holder and provides enhanced optimum coverage for his/her car. The Add On Plans are available in three forms:

Silver Plan - Zero Depreciation Claim
Gold Plan - Depreciation Claim. Loss of Use / Down Time Protection
Platinum Plan - Zero Depreciation Claim. Engine & Gear Box. No Claim Bonus Protection
Emergency Assistance Add on

This Add on plans can be availed by paying an additional premium and are indeed very comprehensive and encompass a host of elements, thus making it worth paying an extra premium for these. HDFC Ergo car insurance offers understanding, convenience and professionalism as they are have a focused approach on car insurance policies.

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Invest in Insurance Stocks

Posted: 14 Oct 2015 03:42 AM PDT

With the passing of the Insurance Bill in Parliament in March 2015, the insurance sector has been in the news. Foreigners can now invest up to 49% in an insurance company up from 26% earlier. This is good for insurance companies.

A lot of factors are looking good for insurance companies. With growth around the corner, it may be the right time to invest in insurance-related stocks like HDFC and SBI, according to a report by UBS, a global brokerage. It believes that large private sector insurance companies could grow faster than government-owned peers.

Here are some things to know:

1. Low insurance penetration: The insurance sector in India is very small. This can be seen in the penetration of life insurance in the country. Total premiums of life insurance companies accounts for a mere 3% of the Gross Domestic Product (GDP) – a measure of the economy. This is much lower than other emerging market economies like Taiwan (14.5%) and South Africa (12.7%). Even the per capita life insurance premium – a measure of premiums paid by per person per annum – is $41 in India, drastically lower than the $3204 in Taiwan, the UBS report stated. However, there is scope for a lot of improvement and growth for insurance companies. As profits grow, share prices too could rise.

2. Rise in APE: Annualised premium Equivalents (APE) is a measure of new businesses gained by insurance companies. Private sector companies have been reporting APE declines of 9% per annum over FY12-14. However, this trend is about to change. Growth is expected to recover to 14% in FY16-17, the UBS report said. "We believe favourable cyclical factors are now emerging, as inflation falls and equity markets turn favourable," the brokerage firm said. When inflation falls, people save more through financial instruments like bank deposits and insurances. This is why, people are expected to get insured more. As insurance companies gather new business, profits and share prices too could grow.

3. Bank-led insurance companies: UBS states that insurance companies owned by banks have an advantage. This is because they can access their parent's strong distribution networks. Examples are HDFC Life, ICICI Pru Life, and SBI Life. This helps reduce costs and maximise profits. This is why UBS has a buy call on the parent bodies HDFC and SBI.

4. A longer wait for profit growth: Insurance companies have become profitable in the last 4-5 years. UBS expects accounting growth to remain in single-digits for the next two years. This is despite the high growth in premiums. Profit for an insurance company is determined by the product mix it offers. Products generate a loss in the first year due to high acquisition costs and turn profitable thereafter. Acquisition costs in India are borne upfront and hence even in high growth years companies can report a loss.

5. Key players: ICICI Bank remains the largest private-sector insurer in the individual segment while HDFC Life gained significant market share. A 13-month persistency ratio was highest for ICICI and HDFC at 70% compared with 60-62% for Allianz, Birla Sun Life and reliance Life. This indicates higher customer retention. HDFC Life has the lowest surrender ratio – a measure of how many people terminate policies beforehand, and HDFC Life and Birla Sun Life sell the maximum term policies. HDFC life leads the market share for online sales at 5%, while the others are at 1%.