The story on life insurance (From Savings to Protection, March 2010), claimed that the entry of private players had made the industry more transparent. Could you explain how this has come about because there is no significant difference in the quality of service provided by private and government-owned insurers.
- Vineet Sharma, Faridabad
In order to monitor the insurance industry, the Insurance Regulatory and Development Authority (Irda) introduced several disciplinary measures, such as strict disclosure norms on policy charges, commissions and NAVs. While both public and private players abided by the Irda diktat, the latter went a step further by proactively disseminating information. They not only made disclosures about their products through Websites and brochures, but were actively involved in customer awareness programmes. This led the government body, Life Insurance Corporation of India, to offer the same facilities to its customers, thereby promoting greater transparency in the industry.
I am going to travel abroad for the first time and have arranged for my travel insurance. However, after reading your story on general insurance (Protect your Assets, March 2010), I realised that to ensure a seamless payment of claims, several other things must be kept in mind. Could you explain in detail the procedure for making claims.
- Kanika Shah, Bengaluru
There are different procedures for various claims, such as those involving lost baggage, emergency evacuation, dental claims, etc. In all the cases, you should carry with you the helpline number, copies of the policy and supporting documents. For medical claims, the overseas third party administrator must validate the hospital admission. For baggage loss/delays, airline tickets and certification involved in the delay must be submitted.
The story on gold (Still a Safety Net? March 2010) mentioned that it is a good hedge against inflation. However, with gold prices having come down and inflation still in double digits, is it wise to invest in gold?
- Nandan Maheshwari, Rajkot
Yes, gold is a good hedge against inflation. Besides other factors, the price of the precious metal is influenced by the movement of dollar and global sentiment on commodities. These two were responsible for the recent volatility in gold prices. Experts predict a further correction and suggest Rs 15,500 per 10 gram as a good price to invest in it.
The story on corporate results (Growth is Back, March 2010) stated that some firms may transfer the increase in cost to customers as their margins are being squeezed. Which sectors face this threat the most?
- Ravindra Jain, Nashik
It is yet to be seen how companies protect their margins. Some sectors, such as automobiles, consumer durables and fast moving consumer goods, are likely to incur higher input costs. However, as people are reconciling to the rise in prices, it should be easier for the companies to make the move.
