Insurance companies cover laptops on an ‘all risk’ basis

Published in Mint on 8th July 2014, Written by Abhishek Bondia

I plan to get a compressed natural gas (CNG) kit installed in my car. How can the car be insured?
—Tanmay Bhatt

Motor policies can insure cars fitted with CNG kits. You will be charged an additional premium. Your insurer will provide the exact amount but generally it is about 4% of the kit’s value and Rs.60-100 towards liability. On receipt of additional premium, the insurer will make an endorsement in your existing policy to reflect the CNG fitting.

Can I insure my laptop which I received as a gift?
—Yamini Lal

It is possible to insure a laptop; however, be mindful of two things. First, let the insurance company know that you do not have an invoice in your name. The laptop should be insured on “declared value” basis and the policy copy should state absence of invoice. Second, insurers tend to have a high deductible for laptop insurance. Claims above the deductible amount are paid, so make sure this is reasonable. Typically, a deductible of 5-10% of sum insured subject to minimum of Rs.5,000-10,000 is considered fine. Laptops are generally covered under an “all risk” basis. Big risks such as fire, accidental breakage and theft are covered. Insurers cannot reject a claim unless it is attributed to normal wear and tear, negligence or carelessness.

What are the requirements for an overseas mediclaim policy?
—Lalita Krishnan

Generally, there is no pre-issuance medical check-up until 65 years of age and supporting documents are not required. Only a proposal form with personal details and passport number is needed. It is issued primarily for short-term travel. These policies cover emergency and accidental medical treatment while abroad. A few insurers have started to cover overseas treatments in regular health insurance policies. But this benefit is limited to people with high sum assured (Rs.25 lakh or more) and coverage limited to a few critical illnesses.

Could you tell me what is covered under a professional indemnity (PI) cover?
—Satish Gopala n

PI is a liability policy offered for specific professions such as doctors, lawyers, accountants and so on. PI covers liability arising out of legal suits due to acts of errors and omissions by the insured. For example, a wrong diagnosis by a doctor leading to death of a patient is covered. The policy pays for defence costs, i.e., lawyer fees and compensation awarded by the court. PI policies cover civil liability only; criminal and illegal acts are not covered.
PI can be bought by an individual or group. A hospital can buy a group PI policy to cover all its doctors and nurses, as well as itself. Companies in the business of providing services can also buy cover for professional negligence.

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