1. Essentials of Insurance Buying

In this episode

• What general insurance is, and the three players: insured, insurer, intermediary
• The 6 principles: utmost good faith, insurable interest, indemnity, contribution, subrogation, proximate cause
• 5 terms that decide every claim: sum insured, under-insurance (average clause), deductible, exclusions, warranties
• Buying a policy in 5 steps: KYC (mandatory since 1 January 2023), Section 64VB (no premium, no cover), GST, reading the policy
• Claims under the IRDAI 2024 master circular: surveyor in 24 hours, report in 15 days, decision in 7 days
• Grievances: insurer, Bima Bharosa, Insurance Ombudsman
• POSP corner: 7 checks before you sell

Chapters

1. 0:00Rakesh's fire: ₹10 lakh lost, ₹5 lakh paid
2. 0:46What general insurance is
3. 1:36The 6 principles of insurance
4. 3:29Recall: name all six
5. 3:405 terms that decide every claim
6. 5:11Buying a policy: 5 steps
7. 6:15When a claim happens
8. 6:56Grievances: insurer, Bima Bharosa, Ombudsman
9. 7:10POSP corner: 7 checks before you sell
10. 7:43Recap and quiz

Quick quiz

Think of your answer first, then open it.

1. 1. Stock worth ₹20 lakh is insured for ₹10 lakh. A fire causes a ₹10 lakh loss. Under the average clause, how much is paid?

   Show answer

   ₹5 lakh

2. 2. Which principle lets the insurer recover the claim amount from the person who caused the loss?

   Show answer

   Subrogation

3. 3. Under Section 64VB of the Insurance Act, when does cover begin?

   Show answer

   Only after the premium is received by the insurer

4. 4. Since when is KYC mandatory for all insurance policies in India?

   Show answer

   1 January 2023

5. 5. Under the IRDAI 2024 master circular, within how many days of the survey report should a general insurer decide a claim?

   Show answer

   7 days