Published in Mint on 19 January, 2016, Written by Abhishek Bondia
I have a motor insurance policy. If I install a car stereo during the policy period, will that be covered?
—Martin D’mello
Changes during the policy term have to be endorsed in the insurance. For example, if you install a stereo, then you need to inform the insurer who will charge you an additional premium for this. Generally, the cost of insuring a third-party electrical installation is around 4% of the value of the equipment. Without this endorsement, the stereo will not be covered in the insurance.
I am travelling to the US and have purchased overseas travel insurance. Will it cover the costs of blood tests and investigations done overseas?
—Nalini
The cost of pathological tests will be covered if the tests are linked to an emergency hospitalisation or a day-care procedure. Overseas travel insurance is designed to cater to severe and sudden health issues. It discourages claims for routine check-ups, planned treatments and chronic conditions. Routine blood tests and investigations that could have waited for your return to India will not be covered. Also, overseas travel insurance has deductibles, typically about $100. Costs above this amount are reimbursed.
I am a cardiac surgeon looking to buy professional indemnity insurance. Could you tell me a little bit more about it?
—S. Seth
Professional indemnity insurance is meant to cover the legal liability arising out of negligence in professional services to clients. Generally, compensation sought is a multiple of the patient’s annual income.
There are three factors for you to consider. First, buy a high sum assured since surgical specialties have the maximum litigation. In metros, a sum assured of Rs.1-2 crore is required for cardiac surgeons. Second, make sure that you clearly declare your specialty to the insurer and also describe the operation theatre where you normally work and the qualification of your support staff. This ensures that the insurer prices the risk properly and helps ensure a smoother claim experience. Finally, do make sure that there are no sub-limits in the sum assured. In insurance parlance this can be achieved by buying insurance with a 1:1, i.e., any one accident to any one-year ratio.
Is there a health plan that covers nursing assistance at home?
—Sarita
Medical insurance generally does not directly pay for nursing assistance. A provision called domiciliary hospitalisation can cover these costs. However, you can avail this benefit only if there is no nearby hospital and for specific ailments. An alternate way to plan for nursing expenditure is to buy a critical illness plan. In this the complete sum assured is paid on contracting a critical illness. In addition to hospitalisation expenses, the amount received can be used for nursing expenses.
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