Banking and Insurance CIA-3 |1

BANKING & INSURANCE

Project-III

Department of Business and Management

Topic: Insurance Policy Analysis for Mr. Anil Shankar & His
Family

10th April, 2021

BBAH

Guided By: Submitted By:

Dr. Amit Mishra Aanchal Kakani

Ishita Khandelwal

Prerna Raj

Saumya Sarah Shroff

Shraddha Mishra
 CONTENTS

 Details of the Individual.......................................................................................................3

 Life Insurance Plan...............................................................................................................4

 About Life Insurance
 Reasons to Choose a Term Insurance Plan
 Key features of Max Smart Term Life Insurance
 Exclusions

 Business Insurance Plan.......................................................................................................7

 About Business Insurance
 Risk Management
 How to choose a good Business Insurance Plan?
 Coverage under Flexi Fund Insurance

 Health Insurance Plan.........................................................................................................10

 About Health Insurance
 How to choose a good Health Insurance Plan?
 Different Types of Health Insurance in India
 Suitable Health Insurance Plan for Mr Anil Shankar

 Car Insurance Plan.............................................................................................................14

 Homeowners Insurance Policy...........................................................................................15

 References..........................................................................................................................17
 Details of the Individual
Name: Mr. Anil Shankar Gender: Male Age: 42

Dependents: Spouse, 2 sons (18 & 16

Profession: Self-Employed
years)

Home loan: Rs. 2.1crores

Assets:
House
Factory
Annual Incomes: Rs. 15,00,000/-
LIFE INSURANCE
About Life Insurance

Life insurance is one of the most crucial instruments you can invest in among the many long-
term tax-saving investment opportunities available in the stock market. In addition to
providing several benefits to the investor, a life insurance policy also offers many services to
the investor's families and legal heirs. In the given case, we believe Max Life Smart Term
Plan would be the most suitable plan as per his profile.

Reasons to choose a Term Plan

The Dependency of your Family: The family can use the term insurance money to meet your
dependents and family's monthly expenses when you're not around. Moreover, it fulfils vital
life goals such as education and the marriage of your child, etc.

Protection of the assets: A term plan helps you borrow money for items like a car or a home.
Nonetheless, if you pass away, your dependents and relatives will be responsible for loan
repayment. Your family will use the term insurance premium to pay off the unpaid debts in
this situation.

Risks related to lifestyle: Due to present-day lifestyle, problems often lead to various
ailments and diseases. Some term insurance plan does not just safeguard your dependents and
loved ones after the policyholder's demise. They also offer critical illness protection for a
lifetime. This key feature pays for diagnosing some critical illnesses such as heart attack or
cancer.
 Banking and Insurance CIA-3 |5

Key features of Max Smart Term Life Insurance

● Comprehensive death benefit variants: Horizon Life Smart Term Plan helps you
customize the protection required at affordable prices by offering 7 death benefit
variants to choose from at the time of purchase.
● Option to pay your premiums as per your budget – Choose from a range of premium
payment terms – Once, for a limited period or throughout the policy term. Moreover,
you have the option to pay premiums in yearly, half-yearly, quarterly or monthly
mode.
● Longer coverage duration: Choose your own desired policy term with coverage
available up to age 85 years.
● Accelerated pay out in case life insured is diagnosed with any of the 40 specified
critical illnesses by choosing “Accelerated Critical Illness Benefit” by paying
additional premium – increasing option also available which ensures your cover stays
relevant to your age.
● Additional Protection with Additional Liabilities. Enhance your cover at important
mile-stones of your life by choosing
● Life Stage Event Benefit by paying additional premium.
● Comprehensive protection against Death, Disability & Critical Illness by adding Max
Life Waiver of Premium Plus Rider & against accidental death by adding Max Life
Accident Cover option by paying additional premium.
● Get all your money back with the Premium Back option available under the plan by
paying an additional premium.
● Tax benefit: Save tax up to 46,800 every year under Section 80C and get 100% tax
free returns on maturity.

Exclusions-

● External Congenital Anomaly which is in the visible and accessible parts of the body.
● The Life assured has delayed medical treatment in order to circumvent the waiting period.
● Intentional self-inflicted injury, attempted suicide, while sane or insane.
● Alcohol or Solvent abuse or taking of drugs, narcotics or psychotropic substances unless
taken in accordance with the lawful directions and prescription of a registered medical
practitioner.
 ● War, invasion, the act of a foreign enemy, hostilities (whether war be declared or not),
armed or unarmed truce, civil war, mutiny, rebellion, revolution, insurrection, military
or usurped power, riot or civil commotion, strikes.
● Taking part in any naval, military or air force operation during peacetime.
● Participation by the insured person in a criminal or unlawful act with criminal intent.
● Engaging in or taking part in professional sport(s) or any hazardous pursuits, including
but not limited to, diving or riding or any kind of race; underwater activities involving
the use of breathing apparatus or not; martial arts; hunting; mountaineering;
parachuting; bungee-jumping.
● Disability due to psychiatric illnesses, post-traumatic stress disorder, chronic fatigue,
chronic pain, and fibromyalgia are excluded
● Nuclear Contamination; the radioactive, explosive or hazardous nature of nuclear fuel
materials or property contaminated by nuclear fuel materials or accidents arising from
such nature.

According to research conducted by our team, we came to the conclusion that Max life
Smart Term Insurance Plan which has a life cover of 1 crore rupees, would be the
most appropriate plan for Mr Anil Shankar. This has a cover up to 65 years, which
implies Mr. Anil Shankar needs to pay the amount by the age of 60 years.

Covers amount- 1 crore in a single instalment.

Base plan Annually- Rs-18,172/-

High Claim Settlement Ratio- This insurance plan comes with a claim settlement ratio of
99.2% With 32 days refund policy and 24-hour claim settlement.

Riders offered with the policy - Accidental Death Benefit -During the policy term, 100% of
the rider sum assured will be paid in case of accidental death of the life insured.

Cover amount- Rs 10 lakh.

Additional premium- Rs 66/-

Policy terms- 21 years.

Premium Amount – Rs 18,238/- annually.

 Banking and Insurance CIA-3 |7

BUSINESS INSURANCE PLAN

About Business Plan

Business insurance is a kind of insurance that helps an enterprise to protect its financial
assets, intellectual property and physical location from an unforeseen incident causing huge
financial losses. It protects a business against any damage and loss arising out of incidents
like natural disasters, loss etc.

Business insurance helps pay to repair or replace property damaged from:

 Fires
 Storms
 Theft
 Other covered events

This inclusion can help pay for harm to your business' actual area, instruments, resources and
records. It can likewise help cover your business' lost pay if it cannot open while fixes are
made.

Know most business property protection arrangements don't secure against flood harm. You'll
need to get a different business flood protection strategy for your business' property to help
cover this sort of guarantee.
Risk Management

Some insurance agencies can assist your private venture with hazard the board. For instance,
our danger designing group has specialized experts who assist organizations with working
and proficiently. They offer types of assistance to help recognize the reasons for mishaps and
different misfortunes at your business.

How to choose a good Business Insurance Plan?

 Make a risk assessment: Consider how accidents, natural disasters, and lawsuits
could affect your company. there are agents that help in assessing the risks and make
sure that every aspect of the business is insured.
 Find a licensed agent with a good reputation : Agents who specialize in commercial
insurance will assist you in finding plans that are tailored to your company's needs.
When they sell plans, they collect commissions from insurance firms, so it's important
to find a licensed agent who is as concerned with your needs as he or she is about his
or her own.
 Take a look around: Prices and incentives will differ dramatically. Insurance quotes
from many different agents can be compared for prices, conditions, and benefits.
 Re-evaluate your situation, every year: Your liabilities will increase as your company
expands. If you've upgraded or replaced appliances or enhanced your operations, you
can talk to your insurance provider about how these improvements would influence
your coverage.

Coverage under Flexi Fund Insurance

This insurance will give the following benefits to Mr. Anil Shankar, the policy holder:

 Business property protection secures your business' structures and individual property.
This may incorporate furnishings, apparatuses, hardware and stock.
 Business pay protection replaces lost pay on the off chance that you close briefly
because of a covered misfortune like burglary or property harm from a fire. It can
likewise help you keep paying costs while your property is supplanted or fixed.
 Proficient risk protection helps cover costs identified with claims that your business
made mistakes in offering its types of assistance.
 Laborers' remuneration protection helps cover expenses to representatives while they
can't work subsequent to enduring a business-related injury or disease.
 A business auto arrangement shields your business from the expenses of a business-
related car crash. In the event that you or a worker is in a mishap while driving for
business reasons, a business auto can help cover the costs that outcomes from the
mishap.
 Business umbrella protection goes about as a security net that gives extra inclusion
when other obligation arrangements arrive at their cut-off points.
 Business flood protection shields your business from the expenses of covered flood
harm. This incorporates harm to actual area of your business just as its resources.
 Guarantee and devotion bonds – A guarantee bond is an agreement between three
gatherings that guarantees a task gets finished or a responsibility is met and ensures an
instalment on the off chance that they are definitely not.
 Locally situated business protection helps cover the expenses of property and
responsibility dangers to organizations that work out of an entrepreneur's home. In the
event that you keep supplies, hardware or other business property at your home, or
have clients halting by, consider adding this inclusion.

 Covered amount and monthly base plan- the insurance covers an amount of Rs. 5

lakhs/-, giving a base plan of Rs. 10,542/- monthly.

 Premium- The plan holds Premium as: monthly premium - Rs 11063/- monthly.

 Claim Settlement Ratio- The policy provides 99.05% claim settlement ratio/number of

claims settled by the insurance company.

 Policy period- the insurance requires to be renewed yearly.

 Riders offered with the policy- This scheme insures the third party engaged with the

company. This legal liability is usually seen in manufacturing, construction and

warehousing industries. This generally includes accidental deaths, disease or injuries

and property loss or damage.

 Amounted to- RS 521/-

HEALTH INSURANCE

About Health Insurance

Health Insurance, in most simple words, can be understood as an insurance that provides
security to the policy-holder against unseen medical expenses i.e., in situation of a health
emergency. Different expenses covered under a general health insurance plan includes
surgical expenses, day-care expenses, and critical expenses, etc.

A Health Insurance Policy is a contract signed between the insurer and the customer
(policyholder), obliged to which insurance company provides financial security towards
medical expenses which might be insured by the holder in future.

Talking about the importance of health insurance, we all know that medical/health doesn’t
come with a prior notice, especially in such unpredictable times. On the other hand, medical
treatments have become extravagant due urging demand of high-quality healthcare services.
Thus, without insurance, the treatment bills are enough to drain one’s entire savings.

Hence, health insurance plan has become prerequisites in today’s scenarios as they not only
provide financial coverage to the policyholder, but also helps ensure sufficient peace of mind
to the insured.

How to choose a good Health Insurance Plan?

Anyone who has a health insurance strategy will disclose to you that getting one will be one
of the most intelligent monetary choices by any acquiring person. Presently, that you have
chosen
to purchase a health insurance strategy, you need to realize how to choose a decent health
insurance plan that will deal with every one of your necessities. Here is a rundown of
advantages any great health insurance plan should offer you:

 Protection against countless basic sicknesses

 Flexibility to pick your health cover
 No expansion in charges during the approach term regardless of whether your health
condition changes.
 Long strategy term that covers you even in your mature age.
 Large clinic network for simple admittance to clinical treatment.

Different Types of Health Insurance in India

1. Individual insurance plans: This is the most widely recognized kind of health insurance
plan in India. Such an arrangement just covers a person. It covers your medical bills in the
event that you are admitted to a facility.
2. Family floater insurance plans: As the name recommends, this sort of health insurance
plan covers the whole family. It is like an individual approach with the exception of that
the aggregate guaranteed for this situation is normally higher and is divided among the
relatives.
3. Senior citizen insurance plans: These health insurance plans are mostly designed for
senior citizens over the age of 60. Since elderly people are more likely to file a claim, the
fee to be charged is higher. Additionally, numerous safety net providers don't weight on a
pre-clinical screening or bar previous illnesses prior to conceding senior resident
insurance since mature age frequently accompanies health issues.
4. Critical illness insurance plans: A basic ailment insurance plan guarantees you for
deadly infections like kidney afflictions, cardiovascular failures, disease, loss of motion,
and so on Such an arrangement is prudent for the individuals who have a background
marked by such diseases in their family.
5. Personal accident insurance plans: Accidents are normal and the costs they bring along
can deplete every one of your investment funds. An individual mishap insurance takes
care of the expense of clinical treatment required after an accident. Usually, such a policy
offers benefits against 3 events – partial disability, total disability, and death due to
accident.
6. Maternity insurance plans: These are ladies explicit health insurance plans. Such plans
give inclusion to pre-natal and post-natal costs alongside the conveyance and emergency
vehicle cost. An infant cover is likewise given wherein the costs identified with the new-
conceived infant are concealed to a specific term.
7. Unit Linked Insurance plans: Unit Linked Insurance Plans or ULIPs are insurance
designs that bend over as ventures. At the point when you pay the top notch, a piece of it
is used for giving cover to you, of course. The leftover measure of the premium is put
resources into a blend of value and obligation. With ULIPs, you secure your health as
well as construct abundance for the future with the profits.

Suitable Health Insurance Plan for Mr Anil Shankar

In this case, we are providing health insurance for Mr Anil Shankar, his wife and his two
children, Ravi, age 18 and Varun, age 15. In accordance with the profile of Mr Anil Shankar,
firstly, we suggest that opting for a family floater plan, as it will help him support his
dependents as well. According to research conducted and data collected by our team, the
MAX Bupa Health ReAssure Plan will serve as the most suitable plan for Mr Anil
Shankar. The scheme provides coverage for up to Rs 5,00,000 (Rupees Five Lakh), with a
policy period ranging from one year to three years.

 Premium- The plan holds Premium as: monthly premium - Rs 1,775/- or yearly
premium - Rs 21,297. This also implies that the policyholder (Mr Anil) would have
both options, i.e., either to pay monthly or annually.
 Claim Settlement Ratio- The policy provides 96% (Ninety-Six Per cent) claim
settlement ratio/number of claims settled by the insurance company.
 Bonus on No Claim- Under this plan, the health cover of the insured increases by
50% (Fifty per cent) for every claim free year. This implies that the sum insured by
Mr Anil will double in just 2 years (if no claims made).
 Pre and Post Hospitalization Expenses- Medical expense that are incurred 60 days
before and 180 days post hospitalisation are covered as per this policy.
 Reinstatement benefit- Max Bupa Health “ReAssure” policy provides unlimited
restoration of the sum insured, for related and non-related illness, incase the original
sum insured is exhausted once in a policy year. For instance, if Mr Anil suffers from
the same illness (ex: jaundice or typhoid) twice in a year, he will be able to claim the
 sum both the times separately for both times. This feature is usually not provided by
other health insurance policies.
 Another important benefit Mr Anil Shankar would be able to avail from this policy is
that, it counts individual hospitalization cost for each family member. For instance,
if the entire family gets COVID-19 and is hospitalized, they would be able to claim
the sum (Rs 5L) separately for each of the four members (which makes it Rs 20L).
This benefit is not provided under plans.
 COVID Coverage- This particular policy would also provide with coverage for
Covid- 19, such as hospitalization, consumables (like PPE Kit up to defined limit),
hospitalization from home, etc.
In Conclusion, illness can strike whenever and the expense of therapies, drugs and other
clinical costs can run into lakhs. Hence, purchasing health insurance ought to be one of the
initial steps of a person's monetary arranging venture.
CAR INSURANCE PLAN

Mr. Anil Shankar owns a TATA Harrier XE (1956 cc), diesel operated car which he bought
for himself somewhere back in 2019 which cost her somewhat around 14 lakhs. The car is a
private car which he uses on a daily basis for travelling as well as for running errands.

He got his car insured by digit insurance. The insurance claims to cover any damages caused
to the car up to the period of 1 year. This includes damages caused by natural calamities,
theft, accidents, man-made hazards, fire, explosions or damage during transit etc. The claims
coverage also includes repairs anywhere across India. The Insurer also offers cashless claims
or reimbursement within 24 hours (in case of non-cashless) at any garage across the country.
They also provide free pick-up & drop service at the time of claim for repair at insurer-
approved workshops. The person also gets a 6-months warranty on repairs made at insurer-
approved workshops.

The insurance doesn’t cover damages caused to a third party as such. Mechanical failure, tyre
& tube damage and general wear and tear damages aren’t covered by the insurance provider.

Insured Declared Value (IDV) = ₹7,10,640

Base Cover
• Basic Own Damage Premium - ₹8,671

Discounts
• No-Claim Bonus – (₹2,168)

Premium Details
• Package Premium - ₹6,503

GST@18% - ₹1,171
• Final Premium (inc. GST) - ₹7,674
HOMEOWNERS INSURANCE POLICY

A home insurance policy covers the construction and contents of the home in the
event of physical destruction or damage caused by unforeseen perils. Home insurance
protects a home and its contents from loss or harm caused by human-made events (theft,
strike, riot, terrorism, etc.) as well as natural disasters. Your home insurance will protect you
from 'Acts of God.' In an otherwise unpredictable world, having home insurance provides you
with coverage and certainty. If something terrible happens to your house, home-owners
insurance covers you financially. It even pays for your personal possessions, hotel stays if
your house is too destroyed to live in, and legal fees if you're sued as a result of an accident.
We've broken down the scope of what home insurance is and why you should have it in the
above explanation. Mr. Anil Shankar will benefit from purchasing home insurance because
she will receive adequate coverage for her home's contents and structure. By choosing the
correct property insurance package, she would be able to protect all of her assets from any
mishaps. Mr. Anil Shankar would have an advantage if she signed up at the right time. House
insurance payouts arrive on time, allowing families to get back to their normal lives as soon
as possible. House insurance claim settlement process is hassle-free and quick in many cases.

An ideal Home Insurance policy plan that Mr. Anil Shankar should sign up for should
be the Bajaj Allianz Insurance (My Home Diamond Plan).

This plan is ideal for her as the structure of her house is worth 2 crores and the content
property i.e., T.V, refrigerator, other electronic appliances, valuables are worth 10 lakhs. The
property being fairly new and less than 5 years old makes this plan even more desirable. The
sum insured is 2.1 crores and the policy term is 5 years. (being able to cover all his
expenses)
Mr. Anil Shankar along with her income will be able to pay for the insurance and meet the
deadlines when required as her lifestyle fits in the bracket of her being an ideal house owner,
and we understand that from the description given above. Things that this home insurance
policy will cover and its features are as follows:
 Coverage for your home against robbery with the intent to steal
 The value of your non-portable household objects, such as furniture, televisions, air
conditioners, and electrical appliances, except portable items such as phones, computers,
jewellery, and cash.
 There was an earthquake, Coverage is given in the event of property damage caused by an
earthquake or a fire.
 Coverage for fire damage to your home and personal belongings.
 Terrorism, Acts of violence are included under the provisions of the Illegal Activities
(Prevention) Reform Act of 2008.
 Malicious Damage Loss, degradation, or noticeable physical damage to home contents,
equipment, and valuables caused by external violent means.
Lastly, in an otherwise unpredictable world, getting property insurance practically ensures
you with stability and certainty. You will cover your home from threats by investing in a
decent home insurance policy and it is the Bajaj Allianz homeowner’s plan from all of the
options available in the market that best suits Mr. Anil Shankar.

…
REFERENCES

 Compare and buy insurance online. (n.d.). Retrieved April 08, 2021, from

https://www.policygenius.com/

 Insurance - compare & buy insurance Plans – Health, Term, Life, car. (n.d.).

Retrieved April 08, 2021, from https://www.policybazaar.com/?

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