The term plan Imbroglio

POSTED BY Sachin Kumar Nigam ON April 12, 2012 11:06 pm COMMENTS (6)

@ all LIC fans and agressive campaign by LIc nowadays in newspapaers or the TV….”LIC hai to aur kahin kyun jana”

Think plain vanilla facts

1. LIC is oldest player in insurance segment. Claims ratio is a confusing thing as it also takes into account the endowement claims which iam sure most indians are trapped intoo.!

2. Religare, Aviva, Icici pru, HDFC, Kotak are comparitively new entrants……. So the numbers don favour them…..But jst think any 1 of these is not a small player to put a genuine claim at stake.

3. Pvt players are pitching in now as INDIA is a market where lot of money can be absorbed frm insurance segment…..The market in india is too wide in scope in a long term perspective too let them make genuine deliberate mistakes.

4. IF u r a NON smoker/ Non alcoholic and state ur health in true fashion ……THERE is no way that any of these will deny a genuine claim.

5. LIC is leveraging high premiums as it is the largest player in this segment.

6. Take the chepaest term plan of x amt insured frm any of the above and forget bt the claim ratio its too biased a figure to deliberate upon……

7. 15 years down the lane all insurance providers will be at par…..LIC will be an extinct species then .

THINK …..analyse…..THe medulla we are gifted with naturally due to evolution is generally wasted in the HERD followance…..USE IT and take a conscoius decision…..Numbers are creation of human beings THEY are not ABSOLUTE…….

6 replies on this article “The term plan Imbroglio”

  1. Dear Sachin, please do not write the obituary of LIC yet. Just like CITI & others in USofA, LIC is here in the same shoes – TOO BIG TO FAIL.



    1. Sachin Kumar Nigam says:

      @ ashal

      THe WHITE Elephants of nehruvian era has to fall…….for Rule of the jungle is LION will be the king…..once the pawns of pvt players are sharpened ….. nd there is a level field….. THE MARKET RULES…:))

      Discliamer: iam no financial expert …but a very keen reader of history. i love the subject.

      1. Dear Sachin, instead of seeing LIC to fail, I’m more interested to see that LIC amends it ways & do good work for the policy holder.



        1. Sachin Kumar Nigam says:

          @ ashal

          by fail i intended to mean END of the MONOPOLY……. i mean y jst LIC on base of some cooked up figures which 90% junta dosent understand and comprehend…….

          Do u really think Religare backed by bennet and coleman is a weak player…..or icici pru life is not an good option..this is just to quote a few…!

          isnt this projected poor conviction down the indian massses a reason that insurance players on a spree nowadays to project a lowest premium to try and grab this fulfilling segment?

          Discliamer…..Term plan premiums are on all time low …but at what cost?……TO CREATE A LEVEL PLYING FIELD?

          Correct me if iam wrong?

          1. Sachin Kumar Nigam says:

            i don know if iam poor in grammar…

            an imbroglio means…” An exreemely confused situation”

            pls read the thread in this light.

            Iam not a mussolani here ……iam just putting my thoughts to ponder upon…….

          2. Dear Sachin, certainly LIC is not in a monopolistic situation. Yes it’s the largest. Competition is taking it’s toll on LIC. Yes over the period, It ‘ll be tough for LIC to maintain the same market share, forget to increase it.

            Informed investors are taking these online term plans seriously & that’s why even LIC is also thinking to enter in this space.



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