Prajna Capital - An Investment Guide

Most general insurance products in the market today have sufficient cover for all kinds of perils that arise out of force majeure and natural calamities. CYCLONE Nargis. Hurricane Mitch. The Asian tsunami. Gujarat and Pakistan earthquakes. The Mumbai deluge. And now the Bihar floods. True, despite mankind’s best efforts to make the world a better place to live in, there’s little escape from nature’s fury which sometimes not only leaves thousands dead but renders millions homeless as well. Worse, natural catastrophes are striking with greater frequency today than at any time in recent memory. For instance, in the past decade alone, the direct losses from natural disasters are said to have reached a $1 trillion, 20 times higher than five decades earlier. And by one World Bank estimate, one third of India’s 603 districts are today hazard prone, placing about half the country’s economy potentially at risk. However, more than economy, it’s the lives and properties of millions and mill...

Motor insurance is not just a legal requirement. Read the fine print before signing on the dotted lines to save money AT A TIME when motown customers are facing heat over high fuel prices and soaring interest rates, shouldn’t they strive to extract every penny they spend on their automobile purchase? Valid question, you may say, but most customers choose to ignore an important component while purchasing a vehicle — motor insurance. They just consider it a legal requirement without which they can’t bring their new vehicle on road. Indeed, motor insurance is a necessity which covers you against damage to your own vehicle and damage to the third party. Broadly, there are two types of auto insurance — 1) Comprehensive policy and 2) Third party insurance . 1) Comprehensive policy In comprehensive insurance, you get full cover for every possible damage, including dents, technical problems, repair, accidents and even for car theft. To make sure that an individual gets the best deal w...

A fire insurance guards against the unforeseen. But don’t ignore the finer points in the policy DOUBT and uncertainty are an integral part of life. Ask Delhi-based businessman. After a lot of planning and research, the 27-year-old’s dream project, a high-end apparel showroom, catering to HNIs , was supposed to be launched soon. His planning was comprehensive and execution almost complete. Till that day, he had not taken a step wrong. Well, almost. On the night before his launch, a short circuit gutted his showroom. His whole world came crashing down and the loss was irreparable. But if he had taken an adequate fire cover, the loss could have been easily avoided. In fact, people hardly realize the importance of a policy till a casualty nails them down. Here’s an insight into why you should buy a fire insurance policy, and how to easily navigate through a claim process. THE FINEPRINT According to insurance brokers, you should always opt for a reinstatement clause while buying a fire insu...

This article is on the basic difference between mediclaim and health cover MAX New York life recently launched ‘lifeline series’ — health cover plans for individuals. While typically it is the general insurance companies, which have been active in the mediclaim space, thanks to IRDA , now there are alternatives from life insurers such as ICICI Prulife and Bajaj Allianz. Protection and savings Mediclaim is usually a cashless policy, in which you can undergo treatment at any of the hospitals listed with the insurer without paying cash at the time of treatment. On submitting hospital bills, the designated third party administrators ( TPAs ) pay off the dues directly to the hospital. Newly-launched health products of life insurers extend the same cashless facility. But the structuring is different. The latter, for instance, have a health cover along with the savings option. In other words, the premium you pay for health cover also has an investment element to it. The idea is to meet the ...