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FAQ

CAR INSURANCE FAQs

1. What is Car insurance?

Car insurance is an insurance policy that protects the car owner from financial losses arising out of unfortunate events such as accident, theft or damage of the car. It is mandatory by law in India, and serves as a financial security for the owner and the vehicle.

2. Is it important to have a car insurance?

According to the Motor Vehicle Act, 1988 it is compulsory that every vehicle being driven on the road should be insured with a liability only cover. This will ensure that any damage done by your vehicle to a third party will be covered in a claim.

3. What are the types of car insurance?

Broadly there are two types of insurances policies that offer Car Insurance cover:

  • Liability Only Policy (Statutory requirement)
  • Comprehensive Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover)

If you take a Liability Only Policy, then damage to your vehicle will not be covered. Hence, it is advisable to take a comprehensive Policy which would give a wider cover, including cover for your vehicle. It includes various add on covers, on payment of a minimal extra amount of premium.

4. What kind of damages does a car insurance policy secure your own vehicle against?  

The damages to your vehicle due to the following perils are usually covered under Own Damage section of the Car Insurance policy:

  • Fire, Explosion, Self- Ignition, Lightning
  • Burglary/Housebreaking / Theft
  • Riot & Strike
  • Earthquake
  • Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
  • Accidental external means
  • Malicious Act
  • Terrorism acts
  • While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air

5. Are there any specific exclusions, i.e. damages which are not borne by the policy?

The following contingencies are usually excluded under the Car Insurance Policy:

  • Normal wear and tear
  • Not having a valid driving license during an accident
  • Driving under the influence of intoxicating liquor/ drugs
  • Accident taking place beyond geographical limits
  • If the vehicle is being used for unlawful purposes
  • Electrical/ mechanical Breakdowns
6. How is the premium determined?

The following factors help determine the premium:

  • Make model and year of manufacturing of vehicle
  • Place of registration
  • Cubic capacity of the vehicle
  • Individual ownership/company owned
  • Seating capacity
  • Claim status and No Claim bonus
  • Add on covers

The premium may be lesser of one insurer but may have higher deductibles, lower coverage and lower IDV, which will adversely impact the insured in the event of claim settlement.

7. What is Insured’s Declared Value (IDV)?

It is the maximum amount to be paid by an insurer at the time of claim settlement. It is the sum insured and is fixed at the commencement of each policy period

8. What is Zero depreciation cover?

This offers complete coverage of the vehicle without factoring in depreciation. It means, if your car gets damaged following a collision, you will receive the entire cost from the insurer without deduction of depreciation. It covers all fibre, metal and plastic parts. There are other add on covers which can be clubbed together like engine cover, tyre cover, return to invoice, RSA, personal belongings etc

9. What is No Claim Bonus (NCB)?

It is a discount available in the renewal premium offered by insurance companies if a vehicle owner has not made a claim during the last term of the car insurance policy.

10. What is third party cover?

Covers the owner of vehicle against any legal liability arising out of any property damage or bodily injury to third parties. The limit for third party property damage cover is restricted up to maximum Rs.7.5 lakh, whereas there is no limit restriction on third party bodily injuries.

11. What is compulsory excess/deductibles?

It is the first amount to borne by the insured for each and every claim reported.the insurance company has decided that you will pay at the time of a claim settlement. For sub 1500 cc vehicles it is Rs 1500 and for vehicles above 1500CC it is Rs. 2000.

12. What is engine secure?

It covers engine damage due to water ingression or oil leakage.

13. Is the engine covered due to damage other than accident in zero dep?

No.

14. What is total loss of a vehicle?

Total loss means accidental damage of the vehicle where the insurance company’s share is more than 75% of the IDV.

15. How many times can a claim be made in a year under zero depreciation benefit?

While generally it is three times, it could vary from company to company.

16. What is key loss cover?

This covers the cost of replacement when a key is lost or stolen.

17. What is Daily allowance?

The car owner is paid fixed daily allowance for certain number of days if the car has been taken to workshop.

18. What is ARAI in Car Insurance Policy?

Insurance companies offer a discount on the premium for installing anti-theft devices approved by Automobile Research Institute of India (ARAI). These devices enhance security and reduce the chances of making a claim, hence adding the benefit of discount.

19. Is an expired policy treated as a fresh case?

Yes, but inspection of the vehicle is required.However, No Claim Bonus (NCB) can be protected till the expiry of 90 days from the date of expiry.

20. What are the documents required to renew a policy?

  • Expiring policy
  • Information on claims if any during last year
  • RC copy

21. Under what circumstances inspection of the vehicle is required?

  • If there is a gap in renewal;
  • Switching from third party cover to a comprehensive cover;
  • There is a requirement to cover additional equipment or accessories fitted in carcar like anti theft device, CNG kit etc. which are not in the expiring policy;
  • Opting for certain specified add on covers

22. What is the owner’s responsibility if someone else is driving the vehicle at the time of accident?

Legally anyone driving a car, must hold a valid driving license. In this scenario, it is the owner's responsibility to ensure that his vehicle is being driven by someone with a valid driving license and that the driver is not under the influence of alcohol or drugs.

23. What is Multi-Year Car Insurance?

According to the Supreme Court order, IRDA has mandated all general insurance companies to offer multi-year third party insurance to all motor vehicles sold after 1st September, 2018. Therefore, instead of single third party liability plans, insurance companies will offer 3 year third party liability plans to carcars and 5 year third party liability plans to two wheelers.

24. What if your Car has an additional CNG/LPG kit?

You will have to inform the insurer about this, as the cost of premium will differ based on the fuel type of your carcar.

TWO WHEELER INSURANCE FAQs

1. What is Two-Wheeler Insurance?

This insurance policy provides cover against damages that may occur to a two-wheeler and/or its riders due to an unforeseen event like an accident, theft or natural disaster. It protects the vehicle owner against:

  • Damages to his/her own vehicle
  • Third Party Liability

Third Party Insurance is a statutory requirement under the Motor Vehicles Act, 1988.

2. What are the types of Two-Wheeler Insurance policies?

Broadly there are two types of insurances policies that offer Two-Wheeler Insurance cover:

  • Liability Only Policy (Statutory requirement)
  • Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover)
  • If you take a Liability Only Policy, then damage to your vehicle will not be covered. Hence, it is advisable t to take a Package Policy which would give a wider cover, including cover for your vehicle.
3. Are there any specific exclusions, i.e. damages which are not borne by the policy?

The following contingencies are usually excluded under the Two-Wheeler Insurance Policy:

  • Normal wear and tear of the vehicle
  • Not having a valid driving license during an accident
  • Driving under the influence of intoxicating liquor/ drugs
  • Accident taking place beyond geographical limits
  • If the vehicle is being used for unlawful purposes
  • Electrical/ mechanical breakdowns
4. What is IDV?

IDV or Insured Declared Value is the market value of the two-wheeler at the time of purchase of the policy, based on which the sum insured is decided against theft or accidental damages. With increasing age of the two-wheeler, IDV decreases due to depreciation, and the resultant premium paid also decreases.

5. What is No Claim Bonus (NCB)?

It is a discount available in the renewal premium offered by insurance companies if the two-wheeler owner has not made a claim during the last term of the insurance policy.

6. Can I transfer the ownership of my policy to someone else? If so, How?

If you are selling off or giving away your bike, it makes sense to transfer the ownership of your Two-Wheeler Insurance policy as well. You simply need to hand over all the related documents to the new owner and inform the Insurance company and RTO about the same. Please note that the NCB accumulated by you during your ownership period will not be transferred to the new owner.

7. What happens if the policy expires?

If your Two-Wheeler Insurance policy expires, it has the following effects:

  • Your NCB gets impacted negatively
  • You get exposed to the risks of third party liability
  • Increased cost of repairs of your two wheeler
8. Can a vehicle be replaced in the existing insurance policy?

Yes, it can be replaced. Get in touch with the insurance company to make the effective changes.

9. What is Multi-Year Two wheeler Insurance?

According to the Supreme Court order, IRDA has mandated all general insurance companies to offer multi-year third party insurance to all motor vehicles sold after 1st September, 2018. Therefore, instead of single third party liability plans, insurance companies will offer 3 year third party liability plans to carcars and 5 year third party liability plans to two wheelers.

10. Can NCB be availed on the expired insurance policy?

Yes, one can still get NCB on the expired insurance policy if it is renewed within 90 days of the policy expiration.

COMMERCIAL VEHICLE INSURANCE FAQs

1. What are the types of commercial vehicle insurance policies?

There are two types of commercial vehicle insurance policies:

  • Liability Only Policy
  • Comprehensive Policy
2. What risks are covered in a comprehensive commercial auto insurance policy?

Third-Party Liability such as bodily injury, death or damage to property of a third party by the insured vehicle.

Damage or loss to the insured vehicle

3. What kind of businesses need commercial vehicle insurance?

In India, commercial vehicles are used for all kinds of businesses. So whether a company owns a single van or an array of commercial vehicles, a commercial vehicle insurance is a must to secure themselves against unwanted risks and losses.

4. Do sole proprietors need commercial vehicle insurance?

If the vehicle is being used for commercial purposes, then if the insured is even a sole proprietor he will need a commercial auto insurance policy.

5. Are there any specific exclusions, i.e. damages which are not borne by the policy?

  • Normal wear and tear of the vehicle
  • Not having a valid driving license during an accident
  • Driving under the influence of intoxicating liquor/ drugs
  • Accident taking place beyond geographical limits
  • If the vehicle is being used for unlawful purposes
  • Electrical/ mechanical breakdowns

6. What is windshield glass cover?

This add-on cover secures the windshield glass in case of accidental breakage, or when need to be repaired/ replaced without affecting the NCB of the insured.

7. What is No Claim Bonus (NCB)?

It is a discount available in the renewal premium offered by insurance companies if the policyholder has not made a claim during the last term of the minsurance policy.

8. What is IDV?

IDV or Insured Declared Value is the market value of the commercial wheeler at the time of purchase of the policy, based on which the sum insured is decided against theft or accidental damages. With increasing age of the commercial-wheeler, IDV decreases due to depreciation, and the resultant premium paid also decreases.

9. What is Zero depreciation cover?

This offers complete coverage of the vehicle without factoring in depreciation. It means, if the vehicle gets damaged following a collision, the insured will receive the entire cost from the insurer without deduction of depreciation. It covers all fibre, metal and plastic parts.

There are other add on covers which can be clubbed together like engine cover, tyre cover, return to invoice, RSA, personal belongings etc

HEALTH INSURANCE FAQs

1. What is health insurance?

Health Insurance is a kind of insurance that covers your medical expenses such as medical bills, hospitalization expenses etc resulting out of any illness/injury. A Health Insurance policy is a contract between an insurer and an individual /group wherein the insurer agrees to provide specified Health Insurance cover at a given "premium". It also provides tax benefits under section 80D of Income Tax Act, 1961.

2. What are the types of health insurance policies available?

There are two types of health insurance policies:

  • Indemnity Plans: These are traditional health insurance plans that cover your hospitalisation expenses up to the sum insured. These plans include individual Mediclaim Insurance,Family Mediclaim,Family Floater Coverage, Senior Citizen Coverage, Unit Linked Health Plans and top up/super top up plans.
  • Defined Benefit Plan: Under a defined-benefit plan, the insured is compensated as lump sum amount on the detection of illness. These plans include Critical Illness Plan, Personal Accident Plan and Hospitalisation cash benefit plan.

3. What is a family floater plan?

Family Floater is one single policy that takes care of the hospitalization expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured. Quite often Family floater plans are better than buying separate individual policies. Family Floater plans takes care of all the medical expenses during sudden illness, surgeries and accidents.Dependents are normally covered only upto a particular age limit or when unmarried.

4. What are the various riders and benefits available in a health insurance policy?

Riders are additional covers that can be added to your health insurance policy. Some of the common riders are as follows:

  • Critical Illness rider: These cover critical ailments such as cancer, heart attack, paralysis etc. for which medical expenses are otherwise very high to be covered under a regular health policy. Generally a lump-sum is paid to the insured under a critical illness rider.
  • Hospital Cash: Compensatory cash provided by the Insurer on a daily basis in case of loss of income and to meet petty expenses
  • Top Ups: An additional cover over and above the basic cover and will operate once the thresh hold level is achieved which can be selected in accordance with the basic cover.
  • Attendant Allowance: Some insurers are giving attendant allowance on a daily basis to accompany the person who is being hospitalized.
  • Co-Payment: It is a portion of the claim that the policyholder agrees to bear himself in the event of a claim.
  • Deductible: Also termed as excess, it is the portion of the claim that the policyholder has to compulsorily pay first before the insurance company steps in and pays the remaining amount of claim.

5. How much coverage do I need?

This is the sum insured of the policy you take which should be calculated keeping your existing lifestyle, medical history, income, city of residence and age in mind.

6. What are pre-existing diseases?

It is a medical condition/disease that existed before obtaining the Health Insurance policy. Insurance companies usually do not cover such pre-existing conditions, till the first 4 years of continuous insurance cover.

7. What is the minimum and maximum policy durations?

1, 2 or 3 years.Opting for two years or more makes you eligible for discounts.

8. What is a health check facility?

Certain Health Insurance policies pay for specified expenses towards general health check up once in a few years. In most cases this is available once in four years.

9. What does a health insurance policy not cover?

  • Pre-existing diseases (read the policy to understand what a pre-existing disease is defined as) are excluded under a Health Insurance policy.
  • Further, the policy would generally exclude certain diseases from the first year of coverage and also impose a waiting period.
  • There would also be certain standard exclusions such as cost of spectacles, contact lenses and hearing aids not being covered, dental treatment/surgery ( unless requiring hospitalization) not being covered, convalescence, general debility, congenital external defects, venereal disease, and intentional self-injury.
  • Use of intoxicating drugs/alcohol, AIDS, expenses for diagnosis, x-ray or laboratory tests not consistent with the disease requiring hospitalization;
  • Treatment relating to pregnancy or childbirth including cesarean section,and new born child up to 90 days
  • naturopathy treatment.

10. What is a Health (TPA) Card?

It is a Card that comes along with the health insurance policy which allows you to avail cashless hospitalisation normally issued by your Third Party Administrator.

11. Who is a Third Party Administrator?

Third Party Administrators (TPAs) are IRDA licensed entities who serve as intermediaries between the insurer and the insured to ensure smooth settlement of claims. Find the list of TPAs here.

12. What is cashless facility?

Insurance companies through their TPA’s or inhouse arrangements have tie-up with several hospitals all over the country as part of their network. A cashless facility, allows a policyholder to take treatment in any of the network hospitals without having to pay the hospital bills as the payment is made to the hospital directly by the Insurer/TPA, on behalf of the insurance company. However, expenses beyond the limits or sub-limits allowed by the insurance policy or expenses not covered under the policy have to be settled by you directly with the hospital. Cashless facility, however, is not available if you take treatment in a hospital that is not in the network.

13. Can I cancel my health insurance policy? If yes, will I get my premium back?

Yes, you can within the free look period, which is generally 15 days after buying a policy. You will get a refund after deducting the pre-acceptance medical screening and underwriting expenses.

14. What is the maximum number of claims allowed in a year?

Any number of claims is allowed during the policy period unless there is a specific cap prescribed in any policy. However, the sum insured is the maximum limit under the policy.

15. Is there any waiting period for claims under a policy?

Yes. When you get a new policy, generally, there will be a 30 days waiting period starting from the policy inception date, during which period any hospitalization charges will not be payable by the insurance companies. However, this is not applicable to any emergency hospitalization occurring due to an accident. This waiting period will not be applicable for subsequent policies under renewal in continuation.

16. What are the factors that affect the Health Insurance premium?

  • Age is a major factor that determines the premium, the older you are the premium cost will be higher because you are more prone to illnesses.
  • Previous medical history is another major factor that determines the premium. If no prior medical history exists, premium will automatically be lower.
  • Claim free yearscan also be a factor in determining the cost of the premium as it might benefit you with certain percentage of discount. This will automatically help you reduce your premium.
  • Family size in case of floater policies will accordinglyaffect the amount of premium.
  • Sum Insured (individual or floater) is the biggest determinant for deciding the premium.

17. What are the documents required for purchasing a health insurance policy?

The following documents are generally required for purchasing a health insurance policy:

  • A duly filled and signed proposal form with declaration of health wherein the insured may even need to undergo a medical checkup;
  • Legal identity documents;

18. What are the tax benefits  of buying a health insurance?

Health Insurance comes with attractive tax benefits as an added incentive. Section 80D of the Income Tax Act provides tax benefits for Health Insurance. Currently, any person who has purchased Health Insurance policy by any payment mode other than cash can avail of an annual deduction of Rs. 25000 from their taxable income for payment of Health Insurance premium for self, spouse and dependent children.

If an Individual purchases Health Insurance for parents, then he can avail annual deduction of Rs. 25000/- from his/her taxable income. Further additional annual deduction of Rs. 5000/- can be availed if the pParents are sSenior cCitizen i.e. Age of Parents is above the age of 60 years at the time of policy the purchase. This is in addition to the exemption toward expenses incurred on preventive health check up.

CRITICAL ILLNESS INSURANCE FAQs

1. What is a Critical Illness Insurance policy?

A Critical Illness Insurance Policy is a health insurance plan that pays the sum insured as lump sum on first diagnosis of any serious ailment listed as a Critical Illness in the policy terms. It is generally required that the policyholder survives a period of 30 days from the date of the first diagnosis.However, there are a few insurance companies which pays the lumpsum compensation even at the time of diagnose of critical illness and no survival period is required.

2. Which illnesses are generally covered in this policy?

The following are normally covered Critical Illnesses with various Insurance Companies.

However same varies from insurer to insurer and more and more insurers are covering more and more illness:

  • Heart Attack (Myocardial Infarction)
  • Coronary Artery Bypass Surgery
  • Stroke
  • Cancer
  • Kidney Failure
  • Major Organ Transplantation
  • Multiple Sclerosis
  • Paralysis

SInce the coverage could differ from policy to policy and hence it is crucial to compare the illnesses covered before buying the policy.

3. What keys factors should be considered before buying Critical Illness Insurance Policy?

  • Number of Diseases Covered- This is an important consideration since different insurers offer different coverage in terms of the number of diseases covered.
  • Pre-existing Disease- While some plans may offer coverage for a pre-existing disease after a waiting period of 4 years (48 Months), some may not cover a pre-existing disease at all.
  • Survival Period-Some insurance policies require the policyholders to survive for a minimum of 30 days from the time of intimation before issuing the claim. In this case, the survival period is 30 days while it can be more than 30 days too (subject to policy terms).There are also a few insurance companies which pay the lumpsum compensation even at the time of diagnosis, wherein no survival period is required.
  • Free-look Period-During this period of the initial 15 days from buying the policy, the policyholder can submit a request to cancel or return the policy and get a refund after deduction of a certain amount (eg. processing fee).
  • Inbuilt Coverage--A critical illness insurance plan aims at providing medical as well as financial protection to a policyholder. Hence, some insurers offer inbuilt coverage for personal accident, health checkup, hospital cash, and child education benefit to  support their family life of the policyholder.

4. What is a pre-existing disease?

Any ailment, injury or related condition(s) for which the insured person had signs or symptoms and/or was diagnosed and/or received medical advice/treatment within 48 months prior to the first policy with the Insurance Company.

5. What is a benefit policy?

Under a benefit policy, the policyholder is paid a lump sum amount if the insured event takes place.

6. Is there any tax benefit under Critical Illness Insurance?

Yes, the policyholder can avail upto Rs.15,000 as tax benefit under ‘Section 80D’. In case of senior citizens, you can avail upto Rs.20,000 as tax benefit under 'Section 80D'.

7. What all documents are required at the time of a Claim?

The Insured shall submit the following documents to process claims within 45 days from the date of intimation:.

  • Duly Completed Claim Form
  • Original Discharge Summary
  • Consultation Note/ Relevant treatment papers.
  • All relevant medical reports along with supporting invoices and doctorsdoctor’s prescription
  • Original and Final hospitalization bills with detailed breakup.
  • Pharmacy Bills along with prescriptions.
  • Any other documents as may be required by the Insurance Company. On receipt of claim documents, the insurance company will process it in accordance with the terms and conditions of the Policy.

PERSONAL ACCIDENT INSURANCE FAQs

1. What is personal accident insurance?

Personal Accident Insurance policy provides complete financial protection to the policyholder against uncertainties resulting from any accident. The coverage includes:

  • Accidental Death
  • Permanent Total disablement (PTD)
  • Permanent Partial Disablement(PPD)
  • Temporary Total Disablement(TTD)

2. Who needs a personal accident policy?

An accident can happen anytime to anyone resulting in injury, partial/permanent disability or even death. While this insurance product is suggested for anyone who travels a lot for life support or financial support, it is no less valuable for homemakers. This policy comes in handy to meet expenses in the case of unpredictable accidental crisis

3. What are the exclusions to this policy?

A personal accident insurance policy does not provide coverage for the following:

  • Any self-harming acts (e. Suicide or purposeful overdose)
  • Accidents resulting from the use of intoxicating substances like alcohol, drugs etc.
  • Injuries/death from illegal activities
  • Injuries/death due to involvement in a war
  • Injuries/death due to mental disorder
  • During pregnancy/childbirth

4. Does this policy cover apply even outside India?

Personal Accident policies offer worldwide coverage. Your claim will be paid even if you meet with an accident overseas.

5. Why should I buy Personal Accident Insurance if I already have a Health and Life Insurance policy?

A Life insurance offers death benefit to your nominee in case you pass away. Health insurance provides a compensation towards your hospitalization and other medical expenses. But a Personal Accident Insurance policy, insures you against the financial risk that could arise due to accidental permanent total disability or accidental death of an earning family member. In short, the policy is essential as it strengthens your financial portfolio and secures the future of dependent family members against unforeseen events.

6. Does Personal Accident Insurance cover death?

Yes, it does cover accidental death, in which case the sum insured will be paid to the nominee as mentioned in the policy document.

7. Does a personal accident policy cover hospitalisation expenses?

Yes, an additional cover of accidental hospitalisation will reimburse your hospitalisation and medical expenses resulting out of an accident. A Daily Cash Cover provides a cash allowance for each day of hospitalisation.

8. What documents are needed to make a claim?

The following documents are required in the claim process depending on the severity of the accidental impact:

  • 1.Accidental Death
           a.FIR, post-mortem report
           b.Death certificate
  • 2.Permanent Total Disablement (PTD)
           a.Claim form,
           b.Medical certificate from the doctor
           c.Leave approval from the employer,
           d.Discharge summary
  • 3.Permanent Partial Disablement (PPD)
           a.Claim form,
           b.Medical tests,
           c.Certificate of disability from the doctor,
  • 4.Medical Expenses for Temporary Total Disablement (TTD)
           a.Hospitalization bills
           b.Discharge summary
           c.Medicine prescription

TERM INSURANCE FAQs

1. What is term insurance?

A pure protection life cover, term plans are highly cost effective and simple forms of life insurance. In case of demise of the policyholder, the sum assured is paid to the nominee. However, no benefit is payable in case the insured survives the complete policy term.

2. Why should you buy term insurance?

Terms plans are an indispensable cover for the earning member of the family, to safeguard the dependents against his/her unforeseen death. It serves as financial backup to sustain the family’s lifestyle and to meet any liabilities. It is cost effective and also has tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1956.

3. How much risk cover should I buy?

The good estimate of calculating the insurance amount is 10 to 15 times of one’s annual income. However your advisor may help you in ascertaining it more accurately using a Human Life Value Calculator for insurance purpose. It takes into account your assets, liabilities and income /expenses in absence of insured. An important factor to consider is the age of the insured and the age of respective dependents. If one has smaller children, then the cover would need to be higher to match their needs till they can become independent.

4. What should be the term of my life insurance policy?

It should ideally be the number of years your family will be dependent on you financially.

5. Does the premium amount change during the tenure of the policy?

Once the policy is issued, the premium remains the same throughout the policy tenure. This is subject to service tax regulations as declared by the Government of India.

6. Can the sum assured be altered during the tenure of the policy?

Once the policy has been taken, you cannot modify the sum assured. However, there are certain plans that have a feature of increased income facility, offering the benefit of increased monthly income every. Year.

7. How do health conditions determine premium rates?

The insured’s health condition is directly proportional to the premium paid. Since the chances of a healthy person being hospitalized or falling sick is much lesser, the premiums are automatically lower. Similarly, a younger person is likely to have lesser pre-existing diseases resulting in lower premium rates.

8. How does being a smoker affect your premium?

As per the existing rules and regulations, insurance companies charge higher premiums from smokers and tobacco users as they are more prone to diseases, lung and heart disorders etc. Hence to combat this high risk, insurers charge a comparatively higher premium rate from smokers.

9. Can I shift my term plan from one company to another, if the other has more benefits?

While, term insurance portability is not yet available, one can choose to take an added policy or surrender the old policy and take the new one. However, it is not advisable to surrender a policy because the cost of it is very high considering the premiums you have paid over the years without having availed any benefits. Furthermore, the premium of the new policy will also be high due to your increased age. Therefore, it is better to take an additional policy after declaring your current insurance plans.

10. Who is not covered under a life insurance policy?

  • Pregnant Women are not covered of the claim falls in exclusion of the pregnancy clause imposed in the policy terms, of if there is any discrepancy in disclosure of pregnancy while taking the policy.
  • Death by suicide is not covered within the first year of the policy.

11. Can the frequency of payment in my policy be altered?

Yes, the frequency of payments can be altered in the case of policy renewals.

12. What happens in the case of default in paying my premium?

Most insurance companies provide a grace period of 30 days to pay the premium and stop the policy from getting lapsed. The grace period is 15 days in the case of monthly instalment mode. If not paid within the grace period, the policy is considered lapsed.

13. What should I do if my policy has lapsed?

Some of the ways to revive a lapsed policy are as follows:

  • By paying all the arrears along with interest.
  • Certain insurance companies off.er an instalment revival process wherein arrears and interests can be paid in instalment along with the premiums.

14. On what basis does an insurance company ask claimants to submit documents in the event of a claim?

The company checks the sum insured, the circumstances within which the claim is being filed and the duration of the policy, after which it asks the claimant to submit documents. For example, it asks for medical records in the case of illness, or in the case of an accidental death it asks for police report, post mortem port etc.

15. What is the turnaround time that an insurance company takes to settle a claim?

It generally takes 2-3 weeks after all the documents, necessary records, forms have been submitted. In case further verification is needed, the company accordingly informs the claimant.

16. Who receives the claim benefit?

The nominee as last recorded in the policy is entitled to receive the claim benefits, in case of demise of the policy holder.

17. Under what circumstance are claims generally rejected?

Some of the main reasons wherein a claim may be rejected is as follows:

  • If your policy has lapsed
  • If you avoid mandatory medical tests
  • If the policy does not cover the event that led to the death of the insured
  • If you have hid any information from the insurance company such as pre-existing diseases while taking the policy
  • If you have provided any false information

18. How do I surrender my policy?

One can do so by either filling an online/ offline request with the insurance company or by simply discontinuing their renewal payments.

CHILD PLAN INSURANCE FAQs

1.What is a child plan?

A child plan is an insurance cum investment policy that serves the dual purpose of securing the child’s future while also providing the means to finance crucial life stages like higher education, marriage etc

2.Which factors should be considered before buying child plans?

These following factors are crucial in deciding which policy and what coverage amount to be taken for their child:

  • The time period after which the funds will be required (Generally after 18 years of age).
  • What amount would suffice for the child’s education and marriage keeping inflation in mind.
  • If the policy offers premium wavier benefits which entail that on the death of the parent, the insurer waives of future premium payments, and fund the policy till maturity and keeps it intact.

3. What are the features of a child plan?

Some of the important features of a child plan are as follows:

  • Flexibility to choose policy term period ranging 5-25 years.
  • Choosing the sum insured and premium as per your convenience
  • Choose your mode pf premium payment- quarterly, bi-annually and annually
  • Partial withdrawal benefits

4. Who is a beneficiary?

The person or entity entitled to receive the claim amount upon the death of the policyholder. Ensure hassle free and fast claim settlements for your loved ones by filing proper nomination.

5. What is difference in a beneficiary and nominee?

A beneficiary is someone who gets all the benefits of a policy such as bonus, death benefits etc. irrespective of the policyholder being alive or dead. Whereas a nominee will only get death benefits. Hence the child in a child plan is a beneficiary and not a nominee.

6. Does a child plan offer tax benefits?

The premium paid in a child plan can be deducted from taxable income under section 80C of the Income Tax Act. The lump sum amount one receives as survival benefit at maturity period of the policy is tax free as per section 10(10D).

7. Who is eligible to buy a child plan?

Only parents (legal guardians) and grandparent can buy a child plan on behalf of the given child.

GENERIC FAQs

1. What is insurance?

Insurance is a contract, represented by a policy, which financially protects an individual or entity by reimbursing against losses. The reimbursement is done by insurance companies (insurers) that pool clients' risks to make payments more affordable for the insured.

2. What is a risk?

Risk is the uncertainty of an outcome. Higher the chances of an outcome being different from expectations, higher the risk.

3. What is a peril?

An event or incident that may cause a loss. For eg. earthquake, fire, accident, theft etc.

4. What is sum insured?

The maximum compensation that will be paid by the insurance company in the event of a claim is known as sum insured.

5. Who is IRDA?

Insurance Regulatory Development Authority is an autonomous statutory body that regulates and promotes that insurance and reinsurance sector in India.

6. What are the types of insurance?

There are two types of insurance:

  • Life Insurance
  • General Insurance which includes Marine, Fire and miscellaneous categories such as Motor, Travel, Health, Home, etc.

7. Who is a surveyor?

An independent entity that carries out claim surveys and estimates the quantum of loss.

8. Who is a broker?

An independent entity that carries out claim surveys and estimates the quantum of loss.

8. Who is a broker?

A broker is an IRDA regulated entity that provides expert advice on the insurance policies suitable to the buyer and is paid a brokerage by the company whose policy the buyer finally choose.

9. Why should you buy insurance online?

A quick and hassle-free way of financially securing yourself and your loved ones against risks.

TRAVEL INSURANCES FAQs

1. What are the benefits of a travel insurance policy?

The following covers are generally provided under Travel Insurance:

  • Medical Expenses with or without cashless facility (most Travel Insurance products offer cashless facility)
  • Personal Accident
  • Third party liability
  • Loss of Baggage
  • Delay in Baggage Arrival
  • Loss of Passport
  • Tripavel Delay
  • Trip cancellation
  • Repatriation
  • Transportation of dead body etc.

2. What factors determine the premium of a travel insurance policy?

The Sum Insured offered may vary and so would the premium rates, depending upon the country in question, apart from other factors such as Age, Period of Travel etc.

3. What are the exclusions to a travel insurance policy?

A travel insurance policy does not provide coverage for the following:

  • Pre-existing diseases
  • War Risks
  • Suicide and Insanity
  • Hazardous Sports
  • There could be some exclusions relating to personal effects.

4. What is the duration of my insurance cover?

The duration of your cover depends on whether you have taken a single trip insurance or a multi trip insurance.

  • Single Trip Insurance: This is valid for a single trip and only a predefined number of days. The cover starts the moment you board the flight, bus or train.
  • Multi Trip Insurance: This is designed for frequent travelers. It offers coverage for multiple trips taken in the period of a year and doesn’t require the insured to inform the insurance company every time he/she takes a trip. Coverage per trip can be 30 or 60 days.

5. What if I forget to carry carry details of my travel insurance?

It is strongly recommended that you carry your travel insurance policy during your trip. However, if you have forgotten it, then you should have important details of your policy such as policy number, customer ID etc to avail its benefits.

6. If my trip gets cancelled, will I get a refund on my travel policy?

Yes, you can cancel your policy in such a situation. You may have to submit a copy of your passport as proof that the journey was not undertaken. The premium is generally refunded after making certain deductions such as administrative costs.

7. What should I do if a claim situation arises?

This a crucial aspect to know beforehand. Most insurers provide hotline numbers where intimation of claim/s should be given. You must also notify the concerned authorities involved such as local police, embassy, transportation company etc, as applicable. The insurer must also be notified. Normally, every Travel Insurance policy docket will also contain a claim form as you will be away in a distant place and where you cannot obtain a claim form immediately.

8. Does travel insurance cover the loss of credit/ debit card or cash?

Travel insurance doesn’t cover loss of debit/credit card, cash, cheques and bank notes

9. How can I avail cashless facility for hospitalisation?

On buying a policy, you get an E card by the Insurance Company. One should register themselves on the number mentioned on the E  Card to avail cashless facility benefits for treatment. Every insurance company has an authorized agency working abroad that settles all overseas claims. Usually, cashless benefits are available only for in-patient treatment and not for outpatient treatment.

10. Do I need prior approval of the insurance company before proceeding with the medical treatment if the emergency arises?

Please read the policy terms thoroughly and understand whether there are such requirements. Prior approval would be required in most cases though there could be exceptions depending on the emergency involved. You should get this aspect clarified at the time of purchasing the policy.

11. When will the claims be settled?

Except in the case of hospitalisations, all claims will be settled post the insured’s return to India.

12. Is my visa status sufficient to get overseas travel insurance?

In most cases, your visa status or copy of passport and travel tickets would be sufficient to get overseas travel insurance.