The Mumbai Police have arrested a 27-year-old interior designer from Haryana’s Ambala for his alleged involvement in a cyberattack on HDFC Life Insurance. The suspect reportedly collaborated with a mastermind based in Hong Kong to steal sensitive customer data and blackmail the company.
HDFC Life Insurance had reported a cyberattack that compromised confidential customer information. The breach, which occurred between November 19 and November 21, 2024, involved cybercriminals using an email address and a WhatsApp account to access sensitive policyholder data.
The stolen data included policy numbers, names, addresses, mobile numbers, and critical health information related to illnesses. The attackers initially contacted HDFC Life on November 19, threatening to release the data unless their extortion demands were met. They sent a second, escalated threat through WhatsApp shortly thereafter.
HOW BREACH WAS EXECUTED
According to the investigation, the accused entered HDFC Life’s server system under the pretence of purchasing policies. By intercepting OTPs (One-Time Passwords), they gained unauthorised access to the database. This information was shared with the Hong Kong-based hacker, who downloaded the stolen data.
The cybercriminals sent samples of the stolen data to HDFC Life via email as proof of their capabilities, demanding a ransom to prevent its public release.
COMPANY’S RESPONSE TO BREACH
HDFC Life lodged a complaint with the South Region Cyber Police, prompting a case under various sections of the BNS Act and IT Act. The company’s Associate Vice President (Legal) detailed the sequence of events in the complaint.
In a statement to stock exchanges, HDFC Life had acknowledged the breach and assured stakeholders that they had initiated a detailed investigation with cybersecurity experts.
Source: Business Standard
As the NRI homecoming season nears, many non-resident Indians (NRIs) must be revisiting their financial strategies, with life insurance emerging as a key consideration. The appeal of Indian life insurance policies is growing among NRIs, thanks to their competitive premiums, comprehensive coverage, and tax advantages.
How NRIs can buy life insurance in India
The process of purchasing life insurance in India has become more convenient for NRIs, with online platforms and flexible payment options simplifying the process. NRIs can now buy policies remotely, without having to be physically present in India.
Bajaj Allianz Life and Tata AIA Life Insurance have adapted their offerings to meet the needs of overseas customers, enabling online applications and payments via NRE (non-resident external) or NRO (non-resident ordinary) accounts.
Tata AIA Life Insurance, for example, has expanded its reach by launching life insurance products through Gujarat International FinTech (GIFT) City, India’s first international financial services centre (IFSC).
This allows NRIs to access dollar-denominated policies, helping them hedge against currency fluctuations. “NRIs can explore plans, select coverage, and customise policies from anywhere in the world,” the company noted.
Here’s a look at the process
- Policies can be purchased online, through authorised representatives, or via brokers specialising in NRI services.
- Premiums can be paid using non-resident external (NRE) or non-resident ordinary (NRO) accounts, foreign bank accounts, or even international credit cards.
- Most insurers provide digital processes for documentation and verification.
- Life Insurance companies simplify medical pre-requirements for NRIs by partnering with medical centres in over 40 countries.
Advantages of Indian life insurance policies for NRIs
Indian life insurance policies offer several benefits that make them an attractive choice for NRIs. For instance, maturity proceeds and death benefits are often tax-free under Indian tax laws, a feature that might not be available with foreign insurance policies.
Indian insurers also offer flexibility in premium payment options, allowing NRIs to pay premiums in foreign currencies through their NRE or NRO accounts.
“India continues to provide ample opportunities for robust financial planning and capital growth, through various tools including life insurance, for NRIs,” said Rajesh Krishnan, Chief Operations and Customer Experience Officer at Bajaj Allianz Life.
Krishnan added, “India offers attractive premium rates for protection plans compared to what NRIs might pay for similar policies in their country of residence. Moreover, these products — ranging from savings and wealth-building life insurance plans — offer unique features, competitive returns, and convenience.”
A look at features and facilities offered by Indian insurers
Indian life insurers provide a range of features and facilities designed to meet the unique needs of NRIs.
One of their key offerings is the ‘Life Protect Supreme’ plan, which offers comprehensive protection up to the age of 100 years.
“This plan covers death and critical illness until 100 years of age, and accidental and disability protection up to 85 years,” explained a Tata AIA spokesperson.
The policy also allows for no limits on the sum assured and a minimum sum assured of $50,000. Further, investing in an Indian rupee-denominated policy allows NRIs to shield themselves from foreign currency fluctuations.
Many NRIs prefer Indian policies for estate planning, as they can direct the proceeds to specific beneficiaries, ensuring that their estate is distributed as per their wishes.
“Indian policies provide tax benefits under the Indian Income Tax Act and GST laws, making them financially advantageous for NRIs,” said Nitin Mehta, Chief Distribution Officer and Head of Marketing at Bharti AXA Life Insurance. He further noted, “Indian life insurance policies help ensure the financial security of the policyholder’s family in India, providing peace of mind, especially in case of unexpected life events.”
Mehta added that NRIs can also benefit from flexible premium payment options and comprehensive coverage.
Sourcr: CNBC TV8
People buy general insurance to cover for emergencies so that they do not have to make out-of-pocket hefty payments. They do not just put their money in, but trust while paying premiums. However, not all claims get approved. A recent report reveals that the claim-to-settlement ratio, which shows how many claims were honoured by insurers, in 2022-23 at 86%, which is down from the 87% in FY22.
The detailed report by the Insurance Brokers Association of India (IBAI) from data presented by insurance companies reveals that claims repudiation ratio rose to 6% for general insurance, which includes coverage for motor, health, fire and marine cargo.
This is the claim rejected by an insurance company as a proportion of the total claims made by its policy buyers. Public sector insurer New India Assurance has the lowest claims repudiation ratio of 0.2%. Other big private insurers with lower rates of claims rejection are HDFC Ergo, Future Generali, Aditya Birla Health and Shriram.
Insurance watchdog IRDAI makes it mandatory for insurance companies to put out settlements and rejection data on their websites. The IBAI has collated the data from insurers and put it in a report, which could help people make informed choices about a company’s track record while buying insurance policies. In the Policyholder’s Handbook, the IBAI has classified the general insurers into four categories — Public Sector General Insurers, Large Private Sector General Insurers, Other Private Sector Insurers, and Standalone Health Insurers.
In the health insurance category too, New India Assurance came on top among the public insurers with a claim-settlement ratio of 95%. Aditya Birla Health, with a claim settlement ratio of 95%, was the best among standalone health insurers. Iffco Tokio and Bajaj Allianz were among the top large private sector general insurers with the best claims-to-settlement ratio of 90% or more, according to the IBAI handbook.
What has to be remembered in the case of health insurance is that it is combined data for group (corporate) and individual policies. Claim-rejection rates are historically lower in the case of corporate policies.
“Irdai does not give data for individual and group claims separately. Why not? Who is it protecting,” asked author-influencer Monika Halan. The real picture will emerge when separate claim-settlement data is available for individual health insurance policies. According to experts, incomplete or false disclosure, consciously or unconsciously, at the time of purchase of policies also contribute to rejection of claims.
In settling motor vehicle own-damage claims too, New India Assurance was the best public insurer with a claim-settlement ratio of 92%. Among large private sector insurers when it came to own-damage claim settlement, Royal Sundaram, Go Digit and SBI General came on top. Future Generali was the top among small insurers.
The insurance coverage, be it life or general, is low in India but the tax on insurance premiums, at 18%, is high. In India, insurance penetration is at 30%, and low in comparison to developed countries, like the US, where it is over 90%. Though there is no social security net and government medical infrastructure is rickety, the high 18% GST on insurance premiums defies logic.
Many users settle for a smaller cover due to high premiums, experts have told India Today Digital. Several reform measures are needed for the growth of the insurance industry and relief for people so that they can get better cover for themselves. Not just in terms of reduction of tax, there is a need for segregated data on claim-settlement ratios for individual and group policies for people to make an informed choice.
Source: India Today
Health insurers disallowed claims worth Rs 15,100 crore or 12.9 per cent of the total claims filed during fiscal 2023-24, according to data released by regulator Irdai. Of the total Rs 1.17 lakh crore claims under health insurance of general as well as standalone health insurers, only Rs 83,493.17 crore or 71.29 per cent were paid during the year ending March 2024.
Further, insurers repudiated claims amounting to Rs 10,937.18 crore (9.34 per cent) while outstanding claims totalled Rs 7,584.57 crore (6.48 per cent), said the annual report 2023-24 of Insurance Regulatory and Development Authority of India (Irdai).
There were about 3.26 crore health insurance claims during 2023-24 with insurers, of which 2.69 crore (82.46 per cent) claims were settled. Irdai said the average amount paid per claim was Rs 31,086. In terms of number of claims settled, 72 per cent of the claims were settled through TPAs and the balance 28 per cent of the claims were settled through in-house mechanism.
In terms of mode of settlement of claims, 66.16 per cent of total number of claims were settled through cashless mode and another 39 per cent through reimbursement mode. During the year 2023-24, general and health insurance companies collected Rs 1,07,681 crore as health, excluding personal accident and travel, insurance premium registering a growth of about 20.32 per cent over the previous year.
The general and health insurance companies had covered 57 crore lives under 2.68 crore health insurance policies, excluding policies issued under personal accident and travel insurance. At the end of March 2024, there were 25 general insurers and 8 standalone health insurers.
Public sector general insurers — New India, National and Oriental Insurance — are doing health insurance business in foreign countries. During the year 2023-24, they procured gross premium of Rs 154 crore from health, personal accident and travel insurance and covered 10.17 lakh lives.
The insurance industry covered a total of 165.05 crore lives under personal accident insurance during the last fiscal. It includes 90.10 crore lives covered under government flagship schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and IRCTC travel insurance for e-ticket passengers.
Source: The Economic Times
Police arrest man for defrauding insurance firm of Rs 34 lakh
Kochi: A man accused of defrauding Rs 34 lakh from a private insurance company was arrested by the police here on Thursday.
The suspect, identified as Varun Kumar Nair (36), a resident of Ochira in Kollam, was apprehended on charges of cheating Niva Bupa Health Insurance Company Limited, police said.
Varun had taken a personal accident insurance policy worth Rs 25 lakh. He underwent cashless treatment amounting to Rs 3,41,995 at Valiyath Institute of Medical Science Hospital in Kollam and he claimed an additional Rs 70 lakh for pre-and post-hospitalisation expenses. After verification of bills, he was paid Rs 34 lakh by the company, police said. The fraud was orchestrated using fake invoices procured through the PharmEasy online platform, they said.
Varun allegedly placed online orders for medicines using the cash-on-delivery option, cancelled the deliveries, and used the invoices to claim reimbursements from the insurance company, officials said. He then transferred the claim amount to a different bank account, police said.
The scam came to light during an internal investigation conducted by Niva Bupa Health Insurance Manager Abdullah and their partner, Optimus Medical Service, police added.
Varun, who had been absconding after the Kerala High Court rejected his anticipatory bail plea, was tracked down and arrested by the Kochi city police. Following his arrest, he was presented in a local court, which remanded him to judicial custody, police confirmed.
Source : The Print
Canara HSBC Life Insurance has launched a brand campaign featuring actor Varun Sharma, focusing on the importance of financial planning for modern consumers. Reportedly, the campaign includes three main ad films and supporting content, showcasing scenarios where financial solutions like savings, retirement, and term plans address diverse goals.
“At Canara HSBC Life Insurance, we aim to demystify financial planning and make it approachable for everyone. Often seen as complex and overwhelming, financial planning becomes relatable and engaging through this campaign’s light-hearted yet meaningful storytelling. By showcasing real-life scenarios, we not only highlight the importance of insurance but also demonstrate how our tailored solutions empower individuals to achieve their diverse aspirations seamlessly.” Rishi Mathur, chief marketing officer and chief distribution officer- Alternate Channels, Canara HSBC Life Insurance, said.
From what is understood, the films depict relatable situations: a couple exploring savings and retirement plans, two brothers addressing financial goals through term and savings plans, and a father-son conversation on securing future generations using child and retirement plans. The campaign will roll out across digital platforms, television, and social media channels.
Shares of insurance companies took a hit on Monday, declining by as much as 6% in intra-day trading on the BSE. The downturn followed the Goods and Services Tax (GST) Council’s decision to defer discussions on reducing GST rates for life and health insurance premiums. Consequently, the existing GST rates on insurance remain unchanged.
The Council, which also postponed a decision on rationalizing taxes for 148 other items, cited the need for more time to finalize its reports. Union Finance Minister Nirmala Sitharaman, during a post-meeting briefing, explained that the Group of Ministers (GoM) is awaiting crucial inputs from the Insurance Regulatory and Development Authority of India (IRDAI) regarding insurance premium rates. Once these inputs are reviewed, the finalized reports will be submitted to the Council for further deliberation.
As a result, key insurance stocks experienced significant declines. Shares of New India Assurance Company dropped 6% to ₹200.80, while General Insurance Corporation of India slipped 3% to ₹485.55. These declines reversed some of the gains from last Friday when General Insurance Corporation surged 14% and New India Assurance rose 4% despite a sluggish market.
Other major players like ICICI Prudential Life Insurance, ICICI Lombard General Insurance, SBI Life Insurance, HDFC Life Insurance, Star Health, LIC, and Niva Bupa Health Insurance saw stock prices dip between 1% and 2%. Over the past month, life insurers such as ICICI Prudential, HDFC Life, and SBI Life have reported declines of 6% to 10%, compared to a 2% dip in the broader market index.
ICICI Securities noted that the delay in the GST Council’s decision and the lack of a clear timeline for implementation have created uncertainty, keeping insurance stocks under pressure in the short term.
Despite these immediate challenges, analysts remain optimistic about the sector’s long-term growth potential. India’s insurance penetration remains below global averages, but factors such as a significant protection gap and rising per capita income are expected to drive future growth. Additionally, the demand for credit protection products is in its early stages and is poised for expansion as retail loan penetration increases.
Experts believe that companies with a strong product mix, robust services, and extensive distribution networks will emerge as key beneficiaries in the sector. However, they caution that regulatory changes and intensified competition may pose risks to profitability in the long run.
Net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52 per cent during 2023-24 as against 82.95 per cent in the preceding fiscal year, as per the Irdai’s annual report.
According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (Irdai), during 2023-24, the non-life insurance industry underwrote a total direct premium of ₹2.90 lakh crore in India registering a growth of 12.76 per cent from previous year.
The contribution of public sector general insurers increased 8.88 per cent from ₹82,891 crore in 2022-23 to ₹90,252 crore in 2023-24. Private sector insurers, including standalone health insurers, have underwritten ₹1.88 lakh crore as against ₹1.58 lakh crore in 2022-23.
The aggregate profit of the non-life insurance sector was ₹10,119 crore as against a net loss of ₹2,566 crore in 2022-23. During 2023-24, the aggregate net incurred claims saw a 15.39 per cent increase to ₹1.72 lakh crore from ₹1.49 lakh crore.
“The incurred claims ratio (net incurred claims to net earned premium) of the non-life insurance industry was 82.52 per cent during 2023-24 as against 82.95 per cent of the previous year,” the report said. The incurred claims ratio for public sector insurers was 97.23 per cent for 2023-24 as against the previous year’s incurred claims ratio of 99.02 per cent.
The incurred claims ratio for private sector general insurers, standalone health insurers and specialised insurers were at 76.49 per cent, 63.63 per cent, and 66.58 per cent, respectively, for 2023-24 as compared to the previous year’s ratio of 75.13 per cent, 61.44 per cent and 73.71 per cent, respectively. The report also said that the life insurance industry paid total benefits of ₹5.77 lakh crore in 2023-24, constituting 70.22 per cent of the net premium.
The benefits paid on account of surrenders/withdrawals increased 15.29 per cent to ₹2.29 lakh crore in 2023-24 of which public sector life insurer accounted for 58.36 per cent. During 2023-24, a total of 18 life insurance companies reported profits. Profits of the life insurance industry grew 10.79 per cent in 2023-24 with profit after tax (PAT) of ₹47,407 crore as against ₹42,788 crore in 2022-23.
Public sector life insurers reported an 11.75 per cent increase in profits while private sector life insurers reported a rise of 5.32 per cent in profit in 2023-24. Irdai said in 2023-24, the country’s insurance penetration was at 3.7 per cent as compared to 4 per cent in 2022-23.
The insurance penetration for life insurance industry marginally declined from 3 per cent in the previous year to 2.8 per cent during 2023-24. The penetration with respect to non-life insurance industry remained the same at 1 per cent during 2023-24 as in 2022-23. There were 26 life insurers, 25 general insurers, eight standalone health insurers, 12 reinsurers and foreign reinsurance branches, and two specialised insurers, registered as on March 31, 2024.
Source : Live Mint
The Super Star Health Insurance Plan is a well-rounded, adaptable health insurance policy designed to meet the evolving needs of individuals and families. Star Health and Allied Insurance Co. Ltd., India’s pioneering standalone health insurer, offers this plan with a range of features and add-ons, ensuring comprehensive protection for all stages of life. Here’s a breakdown of the plan’s key offerings and why it could be the ideal choice for those seeking robust health coverage.
Key Features of the Super Star Plan
- Automatic Restoration of Sum Insured
- This feature ensures that the sum insured is automatically reinstated up to 100% after it is used, with no limit on the number of restorations. This makes the plan especially valuable for families or individuals with multiple claims in a policy year.
- Age Freeze Benefit
- With the “Freeze Your Age” feature, policyholders lock in their age at the time of purchasing the policy. This age-based premium remains constant until a claim is made, enabling long-term savings on premiums as the insured ages.
- Room Flexibility and Extensive Hospital Network
- The plan offers unrestricted access to any room type in network hospitals across India, allowing policyholders to choose a room that best suits their needs without incurring additional costs.
In-Built Benefits
- Cumulative Bonus: For each claim-free year, the plan provides a cumulative bonus amounting to 50% of the sum insured, up to a maximum of 100%.
- Home Care and Domiciliary Hospitalization: Provides coverage for home-based treatment for specific conditions when hospital care is not possible, a helpful benefit for patients with limited mobility or in remote areas.
- Dental Coverage: Dental consultations, X-rays, and cleanings are covered from the second policy year onward, adding extra value for families.
Comprehensive Hospitalization Coverage
The Super Star plan covers a wide array of hospitalization-related expenses, including:
- In-Patient Treatments: Coverage includes all hospital-related expenses like room rent, ICU charges, doctor’s fees, surgical appliances, and advanced medical treatments.
- Day Care Procedures: All day care procedures that do not require overnight hospitalization are covered, providing added flexibility for minor but necessary treatments.
- Organ Donor Expenses: Costs related to organ donation, including complications post-donation, are covered under this plan.
- Modern Treatments: Advanced medical treatments such as oral chemotherapy, robotic surgeries, and stem cell therapy for bone marrow transplants are also included, demonstrating the plan’s alignment with modern healthcare needs.
Additional Benefits
- Tele-Consultations and AI-Driven Health Monitoring: Policyholders can access unlimited tele-consultations through the Star Health app. The plan also offers an AI-driven face scan to monitor vital parameters like heart rate and oxygen saturation twice a month.
- Air and Road Ambulance Coverage: For emergencies, air ambulance reimbursement up to ₹5,00,000 per year and road ambulance expenses are covered, ensuring prompt transportation in critical situations.
Wellness and Rewards Program
The STAR Wellness Program allows policyholders to earn wellness points through various health and wellness activities via the Star Health app. These points can be redeemed for up to a 20% discount on renewal premiums, promoting a proactive approach to health.
Optional Add-Ons
The Super Star plan offers numerous add-ons to customize coverage based on specific needs, including:
- Newborn and Delivery Cover: Covers delivery expenses and newborn medical needs from day one, with options to enhance limits.
- Accidental Death and Disability Coverage: Options for accidental death and disability benefits with worldwide geographical scope.
- Reduced Waiting Period for Pre-Existing Diseases (PED): This optional cover reduces the PED waiting period to as low as 12 months for conditions like diabetes and hypertension.
- Daily Cash Benefit: Offers a daily hospital cash benefit of ₹1,000 to ₹5,000, with options for up to 180 days of hospitalization.
Discounts and Incentives
The Super Star plan offers attractive discounts, including:
- Long-Term Policy Discounts: Discounts on premiums for policy terms of 2 to 5 years, with savings of up to 16%.
- Lifestyle Discounts: Up to 10% off based on lifestyle-related health questionnaires.
- Early Renewal Discounts: Policyholders renewing 30 days before the due date are eligible for early renewal discounts.
Diwali, the festival of lights, is a time of joy, celebration, and new beginnings. It’s time when we clean and decorate our homes, light diyas, share sweets, and celebrate with family and friends. But Diwali also brings additional expenses, from festive shopping to gifting and even home improvements. So, while we celebrate, it’s also wise to take steps to secure our finances and make the most of our money.
Here are the top 5 financial tips to help you enjoy a prosperous and secure Diwali this year!
1. Set a Budget for Festive Spending
Diwali expenses can easily add up – whether it’s buying gifts, new clothes, or decorations. Before you start shopping, take some time to set a budget. Allocate specific amounts for each category like clothes, gifts, sweets, and household items. Setting a budget will help you avoid overspending and make sure you don’t dip into your savings or emergency funds.
Tip: Use digital budgeting apps like Walnut, Money Manager, or Google Sheets to track your spending throughout the festive season. Staying within your budget will help you save more and keep your finances stable.
2. Avoid Unnecessary Debt
Festivals often tempt us into spending more, and some people even consider taking loans or using credit cards for expenses. However, it’s important to remember that debt can lead to financial stress later. If you must use a credit card, be mindful of your expenses and ensure you can pay the balance on time. Avoid making high-interest purchases on credit, like jewelry or luxury items, which may lead to a debt trap if not managed carefully.
Pro Tip: Consider an interest-free EMI option if you need to make big purchases. Many banks and digital payment apps like Paytm, Amazon Pay, and Flipkart offer these schemes during the festive season.
3. Secure Your Health and Home with Insurance
Diwali is a time for celebrations, but accidents and mishaps can happen, especially with fireworks and diyas around. Protect your family and assets by investing in the right insurance policies. A health insurance policy ensures that you have financial support in case of medical emergencies, while home insurance protects your property from fire, theft, and other damages.
With various insurance options available, you can choose plans that suit your needs and give you peace of mind. This Diwali, prioritize your family’s safety and security by investing in insurance.
Quick Suggestion: Look for comprehensive health insurance that covers hospital expenses, and a fire insurance policy to protect your home.
4. Take Advantage of Festive Investment Offers
Many banks and financial institutions offer special investment schemes during Diwali. From fixed deposits with higher interest rates to discounts on mutual funds and other financial products, these offers can be a good way to grow your savings.
If you’re planning long-term investments, consider options like Systematic Investment Plans (SIPs) in mutual funds or Public Provident Fund (PPF) for tax benefits. Investing during Diwali, often considered an auspicious time, can give you a great start towards building wealth for the future.
Pro Tip: Check out short-term investment options like liquid funds if you’re looking for returns with lower risks and easy liquidity.
5. Plan for the Future with Tax-Saving Investments
As the financial year is coming to an end in March, now is a good time to start planning your tax-saving investments. Consider options like ELSS (Equity-Linked Savings Scheme) mutual funds, PPF, or National Pension System (NPS) to reduce your taxable income while securing your financial future.
Tax-saving investments not only help you save on taxes but also grow your wealth over time. Setting up these investments around Diwali gives you a few months to meet your financial goals by the end of the fiscal year.
Quick Suggestion: Start a SIP in an ELSS mutual fund for tax benefits and potential long-term growth. ELSS investments have a three-year lock-in period and can offer better returns compared to other tax-saving options.
Final Thoughts
Diwali is the perfect time to reflect on your financial habits and make a fresh start. These five financial tips – setting a budget, avoiding unnecessary debt, securing your health and home, making smart investments, and planning for tax savings – can help you make the most of your money and ensure financial stability.
By taking small steps today, you can celebrate a worry-free and financially secure Diwali. After all, true prosperity comes not just from spending, but also from saving and investing wisely. Here’s wishing you a Diwali filled with joy, prosperity, and financial security!
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