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Business Standard
17-07-2025
- Business
- Business Standard
Planning to port your health insurance policy? When and how to do it
With a host of health insurance products available in the market, consumers are now spoilt for choice. Awareness too has increased, thanks to several online platforms that dissect every policy and come out with all the pros and cons. And then there is the option of porting which helps you in case you are not satisfied with the current policy. Porting allows you to switch your health insurance provider at renewal without losing accrued benefits like waiting period credits and no-claim bonuses (NCBs). However, experts caution that while portability is a valuable consumer right, it should be exercised with caution. Why policyholders port their health insurance 'Policyholders usually port because of rising premiums, dissatisfaction with claims handling, or to access newer features like OPD cover and wellness-linked rewards,' says Surinder Bhagat, head of employee benefits at Prudent Insurance Brokers. He adds that poor service experiences or delays in claims settlement often act as triggers for people to switch insurers. Changes in life stages also drive this decision. 'Marriage, having children, or even witnessing a family member's medical crisis often prompt people to reassess their coverage,' notes Siddharth Singhal, head of health insurance at Policybazaar. Post-pandemic, medical inflation has made this even more pressing. But porting isn't always the answer. 'It should be done only for compelling reasons and not just because you can. A hasty decision can backfire,' cautions Hari Radhakrishnan of the Insurance Brokers Association of India (IBAI). How to port your health insurance? Porting is permitted only at the time of renewal. 'You need to notify the new insurer at least 45 days before renewal, though starting 60 days in advance is even better for a smooth transition,' advises Akanksha Jain, head – products, Digit Insurance. Here's how to port -Research and shortlist: Compare policies from various insurers for coverage, premiums, and network hospitals. -Submit documents: File a portability request with the new insurer, providing the proposal form, KYC papers and details of your existing policy and claims history. -Underwriting process: The new insurer retrieves your records via the IRDAI portal and may call for medical tests or telephonic verification. -Approval and payment: Once approved, pay the premium. Your continuity benefits, like served waiting periods, are preserved for the existing sum insured. 'For family floater plans, ensure all family members are ported together. If any member has chronic conditions, a medical evaluation is likely,' explains Jain. Key checks before porting 'Don't get lured by the lowest premium. Focus on continuity of benefits, sub-limits, co-payment clauses, and the insurer's claim settlement record,' says Vaibhav Kathju, founder & chief executive officer of Inka Insurance. Anand Prabhudesai, promoter of Turtlemint, clarifies. 'Continuity benefits like NCB and waiting period credits apply only up to the existing sum insured. If you increase the cover, new waiting periods may apply for the additional amount.'
Indian Express
12-07-2025
- Business
- Indian Express
Possibility of pilot error not to impact compensation for Air India Dreamliner crash victims
Compensation for the victims of the Air India 787-8 Dreamliner crash in Ahmedabad a month ago will not be affected by the possibility of pilot error, according to industry experts. Both the airline and the families of those who died in the crash are generally entitled to compensation, even when pilot error is involved. In fact, the compensation amount could potentially increase if negligence by maintenance staff or technicians is established, sources said. The exact compensation and legal proceedings vary depending on the jurisdiction and whether the flight was domestic or international. Airlines typically maintain liability insurance that covers passengers or their families in the event of injury or death, regardless of whether the cause is pilot error, mechanical failure, or other factors like pilot suicide. An insurance official explained that pilot error generally does not influence passenger compensation, which is largely governed by international or national aviation laws and the airline's own policies. Under the Montreal Convention, applicable to most international flights, airlines are strictly liable for damages up to a certain threshold –currently around SDR 128,821 or approximately Rs 1.50 crore per passenger — and can be held liable for higher amounts if negligence, including pilot error, is proven. Even if a crash happens due to suicide by the pilot, compensation won't be impacted. If an insurer can establish gross negligence or deliberate concealment by the airline such as knowingly permitting a mentally unfit pilot to operate a flight, it may challenge or reduce the payout to the airline. However, compensation to passengers or their families is generally safeguarded and not affected in such circumstances. Chetan Kashyap, Head- Aviation and Speciality Lines, Prudent Insurance Brokers, said, 'a Hull 'all-risks' policy is a policy that covers all risks with 'named' exclusions. Pilot error, if any, is not an exclusion to it and hence insurance payout remains unchanged. Even machinery failure or system failure is not excluded under the policy wherein the only difference is right of subrogation which gets passed on to insurers in such case against the OEM (original equipment manufacturer) but overall insurance payout remains unaffected. Also, in this case passengers or third-party claimants can also claim damages from OEM for failure of parts.' According to Hari Radhakrishnan, Expert with the Insurance Brokers Association of India (IBAI), Air India will get compensation for the loss of aircraft and passenger liability even if there was pilot error. 'Too early to say this, but even if it was pilot suicide and deliberately crashed, the insurance would pay. Insurers paid claims for Germanwings Flight 9525 crash in 2015 that killed 150 people, where the copilot locked out the captain from the cockpit and flew the plane into a mountain,' Radhakrishnan said. For domestic flights within India, compensation is governed by national regulations such as the Carriage by Air Act and guidelines set by the Directorate General of Civil Aviation (DGCA), which ensure that passengers or their families are compensated regardless of who is at fault. In cases where foreign nationals are among the deceased, families have the option to file claims in jurisdictions such as the country of the carrier, the place where the ticket was purchased, or the home country of the victim. Since nationals from Britain, Canada, and Portugal were among the victims, legal proceedings in international courts are likely. For Air India, both hull and liability insurance are expected to cover the damages. These policies typically include coverage for the loss of the aircraft (hull loss), passenger liability, and third-party liability. Pilot error is also covered under standard aviation insurance policies unless gross negligence or intentional misconduct is proven, which remains rare and difficult to establish. If the pilot is perished in the crash, his/ her family could still receive compensation from the airline's group life insurance and any personal accident insurance policies, unless there was a violation of policy terms such as flying under the influence, said a source. The Tata Group, which owns Air India, has announced an ex gratia compensation of Rs 1 crore to the next of kin of all passengers who died in the crash. Families of people who died on the ground will also be eligible for this Rs 1 crore compensation, and the company has stated it will cover medical expenses for those who were injured. According to insurance industry sources, the crash is expected to result in total claims of around Rs 4,000 crore (approximately $470 million), making it one of the most significant insurance events involving an aircraft accident. The aircraft hull alone is estimated to cost insurers and reinsurers about $80 million, with the engines valued at an additional $45 million. Liability claims related to passenger deaths are expected to reach approximately $350 million, though the final amount may vary depending on the number and nature of claims filed and the jurisdictions involved.
Time of India
23-06-2025
- Business
- Time of India
Risky Strait of Hormuz: Marine insurance costs surge
MUMBAI: Iran's parliamentary move to approve the closure of the Strait of Hormuz, an oil shipping chokepoint, has jolted global insurance markets. Already uneasy over the Red Sea disruptions, marine insurers are now bracing for a spike in war risk premiums and the possible withdrawal of war cover across the Persian Gulf. Tired of too many ads? go ad free now "The ongoing Iran-Israel-US conflict has heightened tensions in the Persian Gulf, a region already classified as a high-risk area in marine insurance," said Gaurav Agarwal, VP at Prudent Insurance Brokers. "Insurers have been charging additional war premiums for many years. With the recent escalation, including the US involvement and Iran's parliamentary approval to block the Strait of Hormuz, insurers are on high alert. We anticipate potential increase in war premiums for cargo shipments in the region. In extreme cases, insurers might withdraw war cover altogether, similar to the Black Sea area due to the Russia-Ukraine conflict. The insurers continue monitoring the situation and adjust our strategies accordingly," he said. Marine underwriters are treating the Persian Gulf with renewed caution. According to a senior official at a state-run insurer, war risk premiums for vessels entering the Gulf have surged to 0.2% of a ship's value per transit - up from 0.125% before the latest strikes, marking a 60% jump. Premiums for Israeli port calls have more than tripled to 0.7% from 0.2%, while rates for Red Sea transits have also edged up to 0.25-0.3%. "The conventional war risk cover was already suspended for cargo travelling through the Red Sea," said Bhavesh Patel, executive director at Edme Insurance Brokers. He added, "The conflict could have implications for insurance covers on airlines that may be called for evacuation." Tired of too many ads? go ad free now Markets are also seeing shorter quote validity windows - from 48 to 24 hours - reflecting heightened volatility. Insurance for a typical 'very large crude carrier' carrying oil from Saudi Arabia to China has reportedly risen from $0.25 to $0.7-0.8 per barrel overnight. Some underwriters in the global markets are rolling out "blocking and trapping" cover, aimed at vessels that could be immobilised in the event of a closure. Others are demanding proof of risk mitigation - requiring ships to avoid conflict zones - as a precondition for coverage. War risk premiums in the Gulf are projected to rise to 0.2-0.4% of insured value, with further hikes expected if tensions persist.
Mint
13-06-2025
- Business
- Mint
Air India plane crash: How is aviation insurance payout calculated? Will it be India's costliest? Experts decode
Air India Plane Crash: The Montreal Convention will be governing the insurance payouts to nominees of the passengers who died in the Air India plane crash in Ahmedabad on Thursday, experts have said. While Air India may declare an interim payout, the actual compensation will depend on the coverage purchased by the airline. India is a signatory of the Montreal Convention, applicable provisions of which will be applied while implementing the insurance payouts, they said, according to a report by PTI. According to Prudent Insurance Brokers vice president (aviation & specialty lines) Hitesh Girotra, the minimum liability applicable to the airline operator will be dependent on the nationality of the passengers who lost their lives. While an interim compensation may be announced by the airline, the final insurance payouts for passengers will be determined under the Montreal Convention of 1999, to which India became a signatory in 2009, brokerage firm Howden (India) MD and CEO Amit Agarwal said. "Compensation is calculated using Special Drawing Rights (SDRs), which stood at 128,821 SDRs (approximately $1.33 per SDR) as of October 2024. The actual payout will depend on the coverage purchased by Air India," Agarwal was quoted as saying by PTI. According to Amit Agarwal, the compensation for the Air India aircraft damage will be covered under the aviation hull all-risk section. This includes insurance for the current valuation of the aircraft, including spares and equipment. For a Dreamliner, depending on its configuration, age, and other factors, this value can range between $211 million and $280 million, he said. 'The aircraft involved (VT-ABN) was a 2013 model and, based on available information, was insured for approximately $115 million in 2021. Whether the damage is partial or total, the loss would be covered based on the value declared by the airline,' he said. According to Narendra Bharindwal, president, Insurance Brokers Association of India (IBAI), aviation insurance programmes for major airlines such as Air India are arranged on a fleet basis and reinsured across international markets like London and New York. 'No single insurer bears the entire risk -- coverage is widely distributed among global reinsurers, with shares as small as 1.5 per cent to 2 per cent and a lead reinsurer typically taking 10-15 per cent. The financial impact of such incidents is shared globally across this network,' he said. Currently, Air India and IndiGo are the two Indian airlines operating the Boeing 787 planes. Of the 34 B787s in the Air India fleet, 27 B787-8s are legacy aircraft. The first of the legacy B787-8 is slated to go for retrofit in July. The remaining seven B 787-9 joined the Air India fleet after the merger of Vistara with it last year. Globally, the Ahmedabad crash is the first time that hull loss has happened for a B787 aircraft, according to an official.
Time of India
12-06-2025
- Business
- Time of India
Insurance payout for passengers of Air India's crashed plane to be governed by Montreal Convention: Experts
Insurance payout to dependents of passengers who died in the Air India plane crash at Ahmedabad will be governed by the applicable Montreal Convention of which India is a signatory, said experts. The nationality of the passengers onboard will define the minimum liability applicable to the airline operator as per the Montreal Convention, Prudent Insurance Brokers vice president (aviation & specialty lines) Hitesh Girotra said. While interim compensation may be announced by the airline, final compensation for passengers will be determined under the Montreal Convention of 1999, to which India became a signatory in 2009, brokerage firm Howden (India) MD and CEO Amit Agarwal said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "Compensation is calculated using Special Drawing Rights (SDRs), which stood at 128,821 SDRs (approximately USD 1.33 per SDR) as of October 2024. The actual payout will depend on the coverage purchased by Air India," Agarwal said. Earlier in the day, a London-bound Air India plane carrying 242 passengers and crew crashed moments after taking off from Ahmedabad International Airport. Of these, 169 are Indian nationals, 53 are British nationals, 1 Canadian national and 7 Portuguese nationals. Live Events As far as aircraft damage is concerned, Agarwal said, it would be covered under the aviation hull all-risk section, which insures the current valuation of the aircraft, including spares and equipment. For a Dreamliner, depending on its configuration, age, and other factors, this value can range between USD 211 million and USD 280 million, he said. "The aircraft involved (VT-ABN) was a 2013 model and, based on available information, was insured for approximately USD 115 million in 2021. Whether the damage is partial or total, the loss would be covered based on the value declared by the airline," he said. According to Narendra Bharindwal, president, Insurance Brokers Association of India (IBAI), aviation insurance programmes for major airlines such as Air India are arranged on a fleet basis and reinsured across international markets like London and New York. "No single insurer bears the entire risk -- coverage is widely distributed among global reinsurers, with shares as small as 1.5 per cent to 2 per cent and a lead reinsurer typically taking 10-15 per cent. The financial impact of such incidents is shared globally across this network," Bharindwal said. It is too early to ascertain the overall liability (passengers and third party) on the operator because of this crash.
