Prepaid customers: Telenor launches life insurance scheme to widen user base

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SLAMABAD: 

In a bid to attract low-end mobile service users, Telenor Pakistan launched on Thursday life insurance for its prepaid customers, offering their heirs up to Rs100,000 in case of death amid increasing competition among industry players to expand their customer base.

Telenor, which according to the Pakistan Telecommunication Authority (PTA) is the second largest player after Mobilink, announced the Telenor Talkshawk Mohafiz Zindagi Beema for its prepaid customers consuming a minimum monthly balance of Rs200.

Telenor’s customer base at the end of May stood at 31.7 million, capturing one-fourth of total subscribers, according to the PTA.

The scheme has been launched in collaboration with Jubilee Life Insurance Company and MicroEnsurer Pakistan. It is the first such free life insurance policy launched by a telecom company to lure lower-end prepaid customers.

Prepaid customers can opt for the service without paying any fee and will be entitled to it as long as they are consuming monthly credit of Rs200, said Usman Javaid, Director Marketing of Telenor Pakistan.

In case of death, the policyholder will be entitled to a minimum insurance of Rs20,000 to a maximum of Rs100,000, depending on his monthly mobile usage, he added.

Post-paid customers have been excluded from the scheme, which has been launched with commercial objectives and is not part of Corporate Social Responsibility (CSR) activities.

Telecom companies are struggling to enhance their base, as the industry is reaching the saturation point due to absence of advanced third generation telecom services.

They are also facing the problem of dormant customers. On an average, every telecom customer is spending Rs210 to Rs215 per month on mobile services, which is considered low compared to international standards.

Telenor has linked the insurance facility with consumption of a minimum credit of Rs200 in a month. However, the Competition Commission of Pakistan Act 2010 bars enterprises from bundling their products and services.

Replying to a question, Javaid said Telenor has taken care of legal aspects of the policy and it is legally covered.

He said the service will be free of charge and is distinct from all other life insurance services on three accounts. In addition to having no premium, life insurance is without any exclusion policy and is paper-free.

However, the company has not covered post-paid customers in the insurance scheme.

Javaid said unlike Telenor life insurance, other life insurance facilities are not available in case of death due to bomb blasts or suicide attacks. But terrorists and extremists who die in sabotage activities will not be entitled to the life insurance.

Don’t cheat on your travel medical insurance application

I’ve always thought of November as the bleakest month. The skies are leaden most days, there’s a damp chill in the air, and the trees are stark and bare.

No wonder so many of us start thinking about a winter get-away around this time. Sunshine, crystal water, sandy beaches, pina coladas – what’s not to like?

The cost of medical care if something happens, that’s what.

Every year millions of Canadians head south for some part of the winter. Florida’s official tourism agency reported that a record 3.6 million of us spent time in the Sunshine State in 2012. That’s more than 10 per cent of our entire population!

What’s worrisome is that about one-quarter of Canadians going abroad will have no medical insurance, says Isabelle Forget, Head of Travel Insurance for RBC Insurance.

“If something were to happen, it could cost you $50,000 or $100,000 if you don’t have protection,” she warns. “The cost of U.S. health care is one of the highest in the world.”

I can confirm that. A few years ago, my late wife took ill in Florida and spent several days in hospital. It was a terrific facility, more like a luxury hotel with MRIs and operating theatres, and the staff were friendly, attentive, and highly competent. The bill was consistent with the quality – something in the vicinity of $40,000 when all the costs were added. Fortunately, we had coverage and paid nothing.

So why do people run the risk of financial ruin if something goes wrong? There appear to be two main reasons.

The first is that they think they have coverage through a credit card, workplace benefits plan, or retirement health care program. Ms. Forget’s advice is to check it out.

“Credit card policies may limit the number of coverage days for older people,” she warns.

The same may be true of workplace benefits and retirement programs. She suggests calling the employer’s human resources department or the company that underwrites the policy for clarification.

“The older you are, the more likely it is you’ll need extra protection,” she says.

Related: 10 things to know about travel insurance

While you’re on the phone, ask how the bills will be paid in the event of a medical emergency. The best insurance plans have all costs billed directly to the underwriting company – you pay nothing up-front. But some policies require you to pay the expenses yourself and then submit a claim for reimbursement. That can create a huge financial burden if the cost runs into the tens of thousands of dollars, which it easily can. A U.S.-resident friend told me he recently spent four hours in his local emergency department with heart attack symptoms. Fortunately, it was a false alarm but the tab was $10,000 nonetheless.

The second reason for failing to obtain coverage is cost. Let’s face it, travel medical insurance is expensive and the older you get the more pricey it becomes. There are cut-rate policies out there but be careful. Low-cost providers may limit the amount of coverage and/or take a harder line than usual on prior medical conditions.

Unless you are willing to pay through the nose, most policies specify that no claims will be approved if they relate to a pre-existing condition. This is why it is so important to complete the application form fully and accurately. If a claim is made, the insurer will often go to great lengths to verify all the information on the form. Even if you have made an honest mistake, your claim could end up being denied.

Ms. Forget advises going over the form in detail with your physician or an insurance company adviser. “If the doctor is resistant because of the time involved, be insistent,” she says. “It’s your right.”

Be aware that any changes in your medical condition can also affect coverage. This can include things people might not even think of as a “change”, such as a modification in an existing prescription. Even if the dosage is reduced because your doctor believes the condition is improving, the insurer may require 90 to 180 days of “stability” before approving a policy.

Ms. Forget contends that the denial rate on health insurance claims is “very low” despite some highly publicized cases in recent years and a controversial report on CBC’s Marketplace that zeroed in on the plight of some people who had seen their claims rejected because of technicalities and were struggling with the financial fall-out.

“If you don’t complete the questionnaire properly, yes the claim could be denied,” she agrees.

The bottom line is that if you are going to shell out hundreds or thousands of dollars for travel medical coverage, don’t cheat on the form. It could come back to bite you.

Aviation insurance to emerge as growing segment in General Insurance sector

MUMBAI: Aviation insurance is likely to emerge as a key growth area in the coming years with new airlines starting operations and existing players expanding fleet size, industry officials said. 

Though the current market size of aviation insurance stands at around Rs 500 crore, growth of airlines industry will push the premium growth in the near future, they said. 

"Aviation insurance is an emerging segment in the general insurance industry. We expect much growth coming from addition of new aviation players in the market and expansion of fleet by existing players," Manik Nehra, Senior Manager - Aviation Insurance, Bajaj Allianz General Insurance, told PTI. 

According to the general insurer, domestic aviation industry is growing at an average growth rate of around 15 per cent per annum and is likely to add around 450 aircraft in the next five years. 

Even the number of corporate jets are growing in domestic skies as more and more business houses are acquiring own aircraft for business travel needs, industry experts said. 

"Currently, around 30 jets belonging to various corporates are insured by us. We are also the lead insurer of the recently launched regional carrier Air Costa. We aim to be a significant player in this segment," Nehra said. 

He added the company is working with re-insurers like Allianz, which is one of the leaders in this segment, and GIC Re to provide re-insurance cover to aviation assets as it is a highly reinsurance driven business. 

"Claims are not much from the aviation insurance segment. The portfolio is profitable," a public sector insurer said. 

Country's largest insurer New India Assurance is a major player in this segment. 

Meanwhile, Chief Executive Officer of Reliance General Insurance Rakesh Jain said the aviation insurance is largely reinsurance driven and a niche product. 

"Currently, the segment contributes less than one per cent of the total industry. But, the pie is growing," Jain said. 

Fleet expansion apart, among the new players Tata SIA Airlines is expected to be the first major companies to start operations next year.