Published in Mint on 27th May 2014, Written by Kapil Mehta
My mother and father have retired and have no mediclaim. However, my wife and I have added them as dependants in our company health insurance. In my company, they are eligible for Rs.1 lakh as group cover, and in my wife’s, they are eligible for Rs.7 lakh. In case we switch jobs, we will add them as dependants again. I don’t pay any premium but my wife pays Rs.7,000. Do we still require additional insurance protection for them? — Rohan
The group health cover you have for your parents is excellent because the waiting period for pre-existing diseases would have been waived. Keep this cover as long as possible.
Many companies are reducing or withdrawing parental cover because it is expensive and the (often) adverse claims ratio affects their base employee insurance. This is why you need to plan for an eventuality where your firm removes this cover or a new firm you join does not offer parental health insurance. I recommend you buy individual health insurance for them. These plans come with a 2-4 year waiting period for pre-existing diseases. If your parents fall ill during this period, then can utilize your company health insurance. Having your own insurance gives the security that it will ensure your parents always.
I am a doctor and have heard of professional negligence policies. What determines the premium? — Amit Sanyal
Doctors are generally expected to own professional indemnity insurance. This is becoming increasingly important as the number of malpractice suits has increased dramatically.
The premium depends upon various aspects. First is your speciality. Surgeons carry higher risks than others; specialities such as cardiology and neuro-surgery perceive to be riskier; litigation in metros is higher than in smaller towns. Second is the number and skills of support staff. More support staff may mean more risk, particularly if the staff has no license or nurses. Finally, the quality of patient counselling and written disclosures. When you purchase a professional indemnity, make sure that the retroactive date is from when you bought the first indemnity insurance and the any-one-accident to any-one-year ratio is 1:1. This increases the effective level of insurance that you have.
Shouldn’t I purchase health insurance with outpatient department (OPD) benefits? — S. Vasan
Most health insurance plans are focused on hospitalization or daycare procedure costs. A few cover OPD treatment as well. However, I find that plans with OPD cover essentially charge an extra premium that is equivalent to OPD benefits provided. Make your product choice by looking at the core hospitalization benefits.
For more information visit SecureNow or register on SecureNow App
