Dear
Friends,
Our CO
has by its circular dt 27-12-2017, has increased the compulsory sum
insured. The existing compulsory limits of 3 L, 4 L and 6 L are
revised upwards to 5 L, 6 L and 10 L respectively. However, the
upper limit of floater cover including the optional cover remains
unchanged.
The
ratio of premium apportionment for basic cover (only) between
employee/retiree and the corporation remains unchanged at 1:3.
Two
aspects require attention at CO, viz.,
1) in
view of the change in basic limits, the sum of optional cover
is bound to be lower, and consequently there must be downward
revision in premium
2) it is
logical that when limits are reset (revised), it is the rudimentary
practice that option is also given to insured members to exercise the
(increased) cover particularly in view of the possible changes in
premium. In insurance fundamentals, greater is the percentage of
opted members and coverage, lesser is the anti-selection, a feature
that is welcome by the insurer.
We are
taking up the matter with our central office for suitable changes,
requesting them to give one more option for exercising the increased
cover, in view of the possible reduction in premium.
D.KRISHNAN
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