Ushering in Subsidised Health Care in USA

The title itself would have been a contradictory one in the real sense and definition of capitalism. USA now is poised for a change in health care and health insurances. This would bring in an overbearing government control over what is essentially a private enterprise of health care. Nevertheless it has come to stay and would bring succour to millions of Americans. It would in a way, touch each and every American.

Some of the beneficiaries/benefits are:

1. Uninsured persons - who will hereafter benefit from the health care safety net
2. Dependent children upto 18 or 19 are covered under the health care of the parents so far. Now the age limit goes upto 26 years
3. Persons who did not have health insurance benefits for reasons of pre existing diseases condition would become eligible for subsidised coverage through a new high risk insurance program
4. No life time limits under policies for medical coverage for persons
5. No cancellation of policies of people who fall ill.
6. Self employed who hitherto did not have leveraged premiums for health care and paying more for individual insurances would have a more beneficial regime

Another new happening as a consequence would be the insurance exchanges from where one could buy insurance with subsidies. These exchanges would be run by the state.

President Barack Obama is expected to sign this bill on Tuesday next enacting it into Law.

Third Party Insurance Premium of Commercial Vehicles poised to increase

General Insurance Council has reportedly proposed a raise of 80% on the current rates for all commercial vehicle third party insurance premiums. Third Party premium is still a regulated area and approvals from government is required before the increase comes into effect. The premiums and claims are administered by The Indian Motor Third Party Insurance Pool. The need for the increase comes in view of the high claims on this segment. In the year 2008-09 the claims incurred were about Rs.3258 Crores as against a premium collection of only Rs.2822 Crores. The losses of the Third Party Pool are shared by all the general insurance companies in proportion of their overall market share.

Another blog comes up

After blogging for a while now, i have been able to ideate the creation of another blog. This time my colleague in my company has created a training blog for the employees of our company. This blog is designed to give interesting information related to insurance industry in a language easy enough for the first line sales persons and yet not have mundane topics like fire insurance etc. I give below the link to the new blog titled "Gurukul".

I am sure the new blog is going to have topics of great interest.

Finally CAT Bonds in India

The annual Economic Survey has suggested introduction of Catastrophe bonds or simply Cat Bonds.

The survey noted that such bonds are available in western countries and focus is needed for such capital market solutions in the area of catastophe loss management.

The newspapers carried report on the same.