However, the Birla Sun Life policy offers the policyholder even more value by giving him options to decide the manner in which a part of the premium paid by him will be invested. Premium is too high for the sum assured. The GIC being a state monopoly till recently, it witnessed idle growth. Claims can take up to months to settle. Rampant corruption in damage assessment.
Premium is kept low.
In a competitive market, new entrants can survive only if they are innovative. The scope of actual insurance is enlarged. In insurance, risks are not uniform. The mortality risk in case of a heavy smoker, for example, is higher than that of a non-smoker. A car with a bad brake is more likely to crash than the one without such a problem.