Doctors Insurance Solution

Transcription

1 Doctors Insurance Solution

2 You have worked hard to achieve Success at work

3 Hence you deserve to create and live the best desired life for yourself

4 As medical professionals you have been helping your patients lead a healthy life

5 Now is the optimum time to achieve Child s education Retirement planning Child s marriage and secure your emotional goals

6 and achieve your professional aspirations Visiting Faculty or Resident Doctor Own Clinic Own Poly Clinic Own Nursing home

7 However every profession is exposed to certain amount of Even medical practitioners carry substantial risk in their professions

8 What is the risk? A doctor may have to pay a huge financial compensation, in case a patient being treated by the doctor dies/suffers loss, the patients family can file a case against the doctor.

9 Medical Negligence Law

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12 LIVE CASES

13 Supreme Court s calculation of compensation It was observed by the supreme court that the future income of the deceased should be considered while calculating the compensation Example: If the annual income of a 40 year old deceased was 10 lakhs, the total compensation would be calculated as 10 lakhs X 20 years* = 2 Crore for 1 mistake * Presuming the deceased would work for the next 20 years, till age of retirement

14 Such compensations may eat away all your savings or assets

15 Professional Indemnity Policy Cover inadequate as maximum basic cover allowed is 6 times of annual income which is substantially low compared the kind of claims that may arise

16 Solution :Married Woman s Property Act 1874 An imperative protection solution

17 What is MWP Act? Section 6 of the Married Women Property Act, 1874 provides that the policy of insurance effected by any married man, on his own life, and expressed on the face of it to be for the benefit of his wife or his wife and children or any of them, shall ensure and deemed to be a trust for the benefit of his wife and children, or any of them according to the interests so expressed and shall not so long as any object of the trust remains, be subject to the control of the husband, or of his children, or form part of his estate.

18 MWP Act: Interpretation Section 6 of the Married Women Property Act, 1874 provides that the policy of insurance (MF, FD, Postal cash, gold or any other financial product not allowed) effected by any married man, on his own life, (self proposed policy and not proposed on life of his wife or child) and expressed on the face of it (has to be a fresh application, existing policies cannot be included post issuance) to be for the benefit of his wife or his wife and children or any of them, shall ensure and deemed to be a trust for the benefit of his wife and children, or any of them according to the interests so expressed and shall not so long as any object of the trust remains, be subject to the control of the husband, or of his children, or form part of his estate.

19 Who can initiate an MWPA? A Married Man ( Married Man would include widowers and divorcees - the last two would apply where the beneficiaries are the children of the man) Who can be the beneficiary? wife; wife and any of his child/children; any of his child/children How does it safeguard the asset? Since a Policy effected by a Married Man under the MWP Act results in a trust, the Life Insured does not have any interest in, nor can he control the Policy The Policy will not be a part of his estate, and cannot be targeted by his creditors The intended beneficiaries therefore may enjoy encumbrance free the proceeds of the liquid asset How do I initiate a MWP for a Policy? A simple addendum has to be filled with the application form It can only be done at the proposal stage of the policy only with a new insurance policy Old or existing policies cannot be covered under the MWP Act

20 It is prudent to ring-fence 10% of your liquid assets Investment by an individual in various liquid instruments Instrument Mutual Funds Stocks Fixed Deposit Our recommendation to ring-fence is by investing 5-10% in a similar kind of instrument Recommended Product undermwpa Elite Wealth II Elite Wealth II Savings Suraksha Cash Gold Guaranteed Wealth Protector Guaranteed Wealth Protector

21 Safety with Returns 8% ICICI Prudential, Elite Wealth II with reducing FMC post 6th year onwards, because of Loyalty Additions & Wealth Boosters Net Fund Value of a Flat FMC instrument / No Sum Assured Policy Year Annualis ed Premium Premium Allocatio n Charge Amount available for Mortality Charge Policy Admin Charge Service Tax Fund before FMC Effectiv e FMC Fund at End Flat 2.25% investment ,02,815 10,53, ,71,224 21,61, ,09,627 33,29, ,21,906 45,59, ,13,400 58,54, ,88,947 Vs. 61,64, ,89,867 64,91, ,18,084 68,35, ,75,749 71,98, ,39,544 75,80, ,86,179 79,82, ,73,104 84,05, ,03,906 88,51, ,03,82,108 93,20, ,12,12,685 98,14,875 Indicative 8 % ROI considering a 40 year old male opting for an equity fund in Elite Wealth II Despite a safer solution, returns not compromised

22 MWPA wins in all four scenarios Scenario 1 Life without mistake MWPA: Wealth Created approx Crore more than the other instrument offering 98 Lakhs Scenario 2 Life with mistake Result: Assets attached to service/recover loan MWPA: Attachment free wealth Created for family -Approx Crore Scenario 3 Death in 10 th year without mistake MWPA: 1 Cr death benefit paid to beneficiary (SA paid as its higher than Fund Value) Scenario 4 Death in 5 th year with mistake Result: Assets attached to recover loan MWPA: 1 Cr death benefit paid to beneficiary (attachment free)

23 Safety with Returns ICICI Pru Savings Suraksha Assumed investment return of 8% Policy Year Annualised premium Guaranteed Surrender Estimated accumulated reversionary bonus Estimated death benefit Non Guaranteed Surrender Value Benefit summary Guaranteed Maturity Benefit 64,09,430 Guaranteed Additions 16,02,358 Estimated accumulated reversionary bonus 22,16,819 Estimated terminal bonus 24,77,366 Estimated total maturity amount 1,27,05,972

24 Debt 8% compounded interest p.a Investment 1st 2nd 3rd 4th 5th 6th 7th Total maturity After tax maturity ,61,317 24,64,182 22,81,650 21,12,639 19,56,147 18,35,247 17,23,303 1,50,34,486 1,26,24,140 Considering 10 lakhs investment per annum in debt instrument for a tenure calculated basis no. of years left for maturity i.e. 15 years Maturity with tax deduction and reinvestment considered at end of every 10 years Maturity post tax arrived after deducting individual tax 30% on interest earned

25 MWPA wins in all four scenarios Scenario 1 Life without mistake Scenario 2 Life with mistake MWPA: Wealth Created approx Crore more than the other instrument Scenario 3 Death in 10 th year without mistake MWPA: 1.28 Cr death benefit paid to beneficiary Result: Assets attached to service/recover loan MWPA: Attachment free wealth Created for family -Approx Crore Scenario 4 Death in 10 th year with mistake Result: Assets attached to recover loan MWPA: 1.28 Cr death benefit paid to beneficiary (attachment free) The pre-tax maturity amount from the debt instrument would be more than the maturity from Savings Suraksha, even then MWPA wins in 3 scenarios.

26 Safety with Returns Policy Annualised ICICI Prudential Guaranteed Wealth 8% annual returns with loyalty additions getting added from 6th year onwards and wealth booster added in the 10 years Premium Amount Mortality Policy Service Fund Investm Loyalty Wealth FMC Fund at End Flat 2.50% Year Premium Allocation available Charge Admin Tax before ent Addition Booster ,71,918 74,09,451 Despite a safer solution, returns not compromised

27 MWPA wins in all four scenarios Scenario 1 Life without mistake MWPA: Wealth created approx. 75 lacs more than the other financial instruments Scenario 2 Life with mistake Result: Liquid/ personal assets attached to service/ recover loan MWPA: Attachment free wealth Created for family Approx.75 lakhs Scenario 3 Death in 10 th year without mistake MWPA: 1 cr death benefit paid to beneficiary which is more than maturity amount from other financial instruments Scenario 4 Death in 10 th year with mistake Result: Liquid/ personal assets attached to recover loan MWPA: 1 Cr death benefit paid to beneficiary (attachment free)

28 MWPA has withstood the test of time

29 MWPA cases over the last 139 years S.Venkatasubramania Sarma Vs. United Planters' Association Of... on 23 September, 1937 D. Mohanavelu Mudaliar Alias D.... Vs. The Indian Insurance And Banking... on 16 July, 1956 Krishna Lal Sadhu And Anr. Vs. Pramila Bala Dassi on 22 February, 1928 P. Balamba Vs. K. Krishnayya And 3 Ors. on 11 April, 1913 Instances where MWPA has helped in ring fencing personal assets Income-Tax Officer Vs. Damodardas K. Shah on 24 September, 1984 Shri Harshavardhan B. Doshi Vs. Controller Of Estate Duty on 20 March, 1991

30 Fill your Lakhpati tracker for securing emotional goals against professional risks Thank You