Team JGJ

Sep 07, 2024 Flooding continues to wreak havoc across Andhra Pradesh and Telangana. Gujarat saw similar devastation due to heavy rains between August 20 and 29. Every year, states like Assam, Odisha, Uttarakhand, and Himachal Pradesh are hit by floods, leading to immense property damage. The financial burden of such destruction can sometimes push individuals and businesses towards bankruptcy. How can you protect yourself if flooding is common where you live? The answer is insurance. Are there specific insurance policies for flood damage? There are no exclusive policies that cover only flood-related damage. However, flood protection can be found within broader insurance policies. “Flood insurance is available through Standard Fire & Special Perils Policy and Householders Insurance Policy,” says Sandeep Katiyar, co-founder and CFO at Finhaat. “Fire and Perils insurance covers damage caused by various events like riots, strikes, floods, storms, and cyclones.” Individuals and institutions can opt for these policies. STFI (Storm, Tempest, Flood, and Inundation) is a named peril in standard Irdai products like Bharat Udyam Suraksha Policy, Bharat Sookshma Udyam Suraksha, and Bharat Griha Raksha Policy. Katiyar explains that these products are designed to protect against various natural disasters, including floods. STFI is an add-on that extends your fire insurance policy to cover additional natural calamities such as storms and floods. While the main focus of fire insurance is on fire-related damages, an STFI cover ensures protection against other disasters like storms and floods, which can strike at any time. Protecting commercial property Beyond the coverage offered by the government, protecting commercial properties like shops, offices, or industrial units requires comprehensive insurance. “Many property insurance plans can be enhanced with a flood coverage add-on, providing protection against flood-related damages, waterlogging, and other water-related incidents,” says Sajja Praveen Chowdary, head of PolicyBazaar for Business. Key insurance plans with flood coverage include: * Standard Fire and Special Perils Policy (SFSP): Protects commercial buildings, equipment, and stock from various risks, with the option to add flood coverage. * Shopkeeper’s Insurance Policy: Designed for small shop owners, this policy covers property and stock, with an option for flood insurance. * Office Package Policy: Offers comprehensive coverage for office premises and equipment, with flood protection to maintain business operations. * Industrial All-Risk Policy: Provides broad coverage for industries, including flood-related damages. What about home insurance? Homeowners have access to the Bharat Griha Raksha policy, a standard home insurance policy launched under the direction of Irdai. “This policy offers coverage for up to 10 years and includes automatic protection for both the building and its contents, up to 20% of the building’s insured value.,” says Suryanarayanan V, Managing Director at Chola MS General Insurance. “For example, under the Centre’s affordable housing scheme, houses valued between Rs 15 lakh to Rs 25 lakh are automatically covered for general contents like appliances,” he explains. These home insurance policies cover a wide range of risks, including damage from floods, storms, and cyclones. They not only protect against structural damage but also cover additional expenses like repainting due to watermarks from heavy rains. Premiums vary based on factors like location, property type, building age, and construction material. However, in some cases, assessing damage after a flood can be challenging, making claim settlements difficult. “For such situations, an alternative product, parametric flood insurance, has emerged. “Parametric insurance operates on predefined parameters, and when those are met, payouts are triggered immediately,” explains Katiyar. Unlike traditional insurance, which requires assessing the damage after an event, parametric insurance is based on measurable metrics like rainfall levels or wind speed. When these predetermined thresholds are exceeded, the policyholder receives compensation without needing to assess individual losses. “Parametric insurance fills the gap between increasing flood risks and the limits of conventional insurance. Instead of indemnifying the actual loss incurred, parametric products offer payouts when predefined thresholds, such as rainfall or heat index, are exceeded. This makes the claims process faster and more transparent,” says Katiyar. How does parametric insurance work? Parametric insurance operates by using predetermined metrics, like cumulative rainfall or wind speed, to trigger payouts. This method bypasses the need for individual loss assessments, allowing funds to be disbursed quickly. For example, a parametric policy for floods caused by heavy rainfall might be structured around cumulative rainfall data. If the rainfall in a region exceeds a set threshold within a certain timeframe, the insured parties receive compensation. The payout increases with the level of rainfall up to a predefined limit, providing timely financial support without needing to assess physical damage. Relatively new, parametric is available in India. “We have offered our clients the product for excess rainfall. This product was designed to protect against risks of low warehouse occupancy arising out of possible excess or deficient rainfall, impacting agri – output. This initiative covered warehouses spread across 17 states,” Katiyar explains. The growing importance of flood insurance “With climate change accelerating, the frequency and severity of floods have increased worldwide. Cities have expanded into high-hazard flood zones by 184% since 1985, according to the World Bank, exposing more people to flood risks. In India, floods have caused an average of $18 billion in economic losses annually over the past five years,” notes Chowdary. He also points out that businesses need to rethink their risk management strategies. “Property insurance covering flood risks and other disasters is a critical component of comprehensive coverage, helping businesses mitigate financial losses from increasingly unpredictable weather patterns.” Recently, India’s ministry of finance instructed public sector insurance companies to ensure swift claim settlements for those affected by the floods in Andhra Pradesh and Telangana. “The insurance companies have been instructed to ensure swift claim settlements by organising special camps and easing claim processes to provide relief to those affected,” the ministry said in a post on X. In addition, insurance companies have been asked to widely advertise the contact details of nodal officers, making it easier for policyholders to get assistance during this difficult time. Source: Business Standard

Sep 06, 2024 India, with its large and dynamic youth population, faces significant challenges related to fatigue and exhaustion. The survey highlights the urgent need to address factors contributing to this issue and to implement supportive measures to enhance energy and well-being. Conducted by Hansa Research Group, across 10 cities and involving men and women aged 25-45 from NCCS A and B categories, the study represents a population of 20 million. Mumbai: Supradyn, multivitamin brand from Bayer’s Consumer Health division, commissioned the Supradyn Fatigue Survey, a study conducted across 10 cities, revealing that 85 per cent of young Indians wake up tired among other astounding findings. Released in conjunction with National Nutrition Week, the survey aims at raising awareness of the growing nutrition gap and promoting self- care. The findings shed light on the alarming rise in fatigue among India’s working population, with significant regional and demographic variations. India, with its large and dynamic youth population, faces significant challenges related to fatigue and exhaustion. The smvey highlights the urgent need to address factors contributing to this issue and to implement supportive measures to enhance energy and well-being. Conducted by Hansa Research Group, across 10 cities and involving men and women aged 25-45 from NCCS A and B categories, the study represents a population of 20 million. The survey states that 96 per cent of Indians feel they lack essential micronutrients and multivitamins, leading to low energy levels. The survey on fatigue among young urban India in the 25-45 year age group reveals that 83 per cent frequently need breaks due to tiredness, while 74 per cent snuggle with daytime sleepiness or staying alert hampering their productivity. Furthermore, 69 per cent find it difficult to start or complete tasks, and 66 per cent are unable to finish daily activities due to fatigue implying extremely low energy among our working population. Geographically as well, metros like, Pune (57 percent) and Bengaluru (59 per cent) have the highest propoltion of people who feel their diet lacks sufficient micronutrients. Moreover, 78 per cent of those aged 25-35 experience daytime drowsiness, compared to 72 per cent of the 36-45 age group. These findings highlight the significant impact of fatigue on daily life. Sandeep Verma, CountlY Head for India, Bangladesh, Sri Lanka, Bayer Consumer Health Division, commented, “Our Supradyn Fatigue survey reveals significant fatigue among the workforce, which directly impacts their productivity. These findings underscore the urgent need to address the nutritional gaps in our country.” Prof Dr Ketan K Mehta, Sr Consultant Physician, CardioPulmonologist & Diabetologist, Mumbai commented, “Increased tiredness among youth is a growing concern across the country, as noted by many healthcare professionals. It’s crucial for healthcare providers to address this holistically by promoting not just a balanced diet but also the use of multivitamins to bridge nutritional gaps. Food alone can provide up to 70per cent of essential micronutrients, leaving a significant gap. As ahealthcare practitioner, I recommend a healthy diet combined with daily supplements to ensure up to 100 per cent nutrient intake.” Source: Economic Times

Sep 05, 2024 The Ernakulam District Consumer Disputes Redressal Commission has cancelled a decision of the Kerala Water Authority (KWA) to disconnect drinking water supply connection to a family, that includes a pregnant woman, in Thripunithura. The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a petition filed by Murali K. Menon, a resident near Siva Temple in Kumbalam, against KWA Thripunithura sub division represented by its Assistant Executive Engineer. The complainant moved the petition on Wednesday and the Commission straightaway passed the verdict. The Ernakulam District Consumer Disputes Redressal Commission has cancelled a decision of the Kerala Water Authority (KWA) to disconnect drinking water supply connection to a family, that includes a pregnant woman, in Thripunithura. The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a petition filed by Murali K. Menon, a resident near Siva Temple in Kumbalam, against KWA Thripunithura sub division represented by its Assistant Executive Engineer. The complainant moved the petition on Wednesday and the Commission straightaway passed the verdict. “The opposite party shall reconnect the water connection of the complainant soon on receipt of a copy of this order without fail,” said the Commission in its verdict. The complainant had time till September 12 to clear outstanding dues of ₹22,242. However, the connection was disconnected a week prior to it without considering the deadline. The right to drinking water is a fundamental right and its unfair denial is unacceptable, the Commission observed while passing the verdict. Considering the emergency nature of the petition, the Commission passed the verdict without hearing the Kerala Water Authority’s counter arguments. The case will be taken up again on September 12 when the opposite party will have to explain its action. Source: The Hindu

Sep 09, 2024 While the Karnataka Electricity Regulatory Commission (KERC) framed the necessary guidelines and rules, it was the responsibility of the electricity supply companies to create awareness among people. “We held public consultations and laid out clearly the standards of performance to be followed by Escoms. There are many conditions laid out and the compensation that can be claimed has also been fixed under close to 17 categories,” a senior KERC official explained.  The rules allow consumers to claim compensation for violating standards of performance under many categories like number of interruptions in supply beyond set limit; time taken for connection, disconnection, reconnection, shifting; time taken for change in consumer category, load; time taken to resolve billing issues, and time taken to resolve voltage related issues. Consumer rights activists say except for newspaper notifications, Bescom has taken hardly any measure to spread the word. “We conducted a survey of nearly 3,000 people in the state and it was clear that nearly 90% of themhad no awareness about this. Escoms had to conduct awareness campaigns and release a booklet with detailed procedure to apply for compensation and the grounds on which it can be applied. However, no such effort has been made,” said Muralidharan Y G, consumer activist working in the area of electricity governance. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processed with the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processedwith the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. While awareness among people is low, many Bescom officials themselves were clueless about these rules. “It is a specific guideline and only departments handling it may know,” one them said. Source: Deccan Herald

Sep 06, 2024 MUMBAI: Insurance Regulator and Development Authority of India (Irdai) has tightened timelines for various services undertaken by insurance companies, aiming to enhance accountability and customer service. In life insurance, death claims that do not require investigation must be settled within 15 days, down from 30 days earlier. For early death claims that require a probe, the resolution period is now 45 days while earlier it was “not later than 90 days”. Maturity claims, survival benefits, and annuity payments should be settled on their due dates, and policy surrenders or partial withdrawals must be processed within seven days, Irdai said in its master circular on protection of policyholders’ interests. ‘Insurers must allow 30-day free-look for life, health plans’ Insurance companies are also expected to send premium due intimations and information regarding policy payments, such as maturity or survival benefits, at least one month before the due date. The regulator has said that if the companies fail to meet the timelines, customers can approach the ombudsman who has the power to direct insurance companies. For new business proposals, insurance companies are required to process them and request any additional information within seven days. A copy of the policy, along with the proposal form, must be provided to the policyholder within 15 days. In case of health insurance, the regulator has reiterated that cashless claims must be settled within three hours and non-cashless claims within 15 days. New business proposals should be processed within seven days and policy documents issued in a fortnight. For customers exercising their right to free-look cancellation, insurance companies are required to process the refundwithin seven days of receiving the request. Services related to policy loans and alterations in original policy conditions are also bound by a seven-day timeline. In unit-linked insurance policies (ULIPs), services such as switch and top-up requests must be fulfilled within seven days, In cases of customer complaints, the insurer must acknowledge the complaint immediately and initiate action within 14 days. If the issue is not resolved within this period, the insurer must inform the complainant within 14 days of the original complaint date. Key features of the master circular include providing essential information at various stages of the insurance contract and mandating Customer Information Sheets (CIS) with policy details. Additionally, insurers must offer proposal forms and CIS in regional languages and allow a 30-day free-look period for life and health insurance policies. Source: Times of India

Sep 05,2024 Hyderabad: In the wake of the devastation unleashed by the recent floods in Telangana and Andhra Pradesh, insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) has issued detailed instructions to all insurance companies to ensure that claims arising out of the loss of life, property, businesses, and infrastructure are settled speedily. In a circular issued on Wednesday, IRDAI has directed all insurers to mobilise all their resources, including outsourced functions such as surveyors, loss adjustors, and investigators, to ensure immediate service response so that all the claims are surveyed immediately and payments are disbursed at the earliest. It also said that in cases of claims involving loss of life, where the flood-affected are facing difficulties in getting death certificates due to the inability to recover the dead body, it has instructed insurers to consider claims without insisting on a death certificate if the details of the insured match with the details of the deceased published by the appropriate govt authorities. As part of efforts to expedite claims settlements, all insurance companies have been instructed to nominate a senior executive to act as a nodal claims officer to oversee the claims response. Companies have also been instructed to inform the chief secretaries of the respective states about their appointment. However, districts reporting a large number of claims can be overseen by a designated district claims service head, the insurance watchdog said. “Special claims desks at the district level with adequate delegated claims settlement authorities are recommended to be set up for affected areas to facilitate speedy processing of claims and settlements, including the release of on-account interim payments to assist early reinstatement Of property and businesses,” the IRDAI circular said. IRDAI has directed insurers to immediately engage an adequate number of surveyors and loss adjustors and, if need be, also deploy such resources from neighbouring states. To ensure the final settlement process is expedited, IRDAI has directed insurers to review and streamline claims processing by ensuring they ask only for documentation that is necessary to substantiate the claim quantum. Source: Times of India