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Published in Mint on 5th March, 2018. Written by Abhishek Bondia

I had bought jewellery worth Rs25 lakh from a reputed jeweller about 3 years ago. I want to get this insured. How will this jewellery be valued? Will it be valued on the tag price or will the insurer get them valued? I have heard some unfavourable news about the jeweller from whom I had bought the items.

Rachna Sharma
Typically for jewellery insurance above a sum assured of Rs5 lakh, insurance companies get their own valuation done. They would appoint an independent valuer who physically inspects the jewellery. For smaller amounts, some insurers may accept the list of jewellery maintained by the client. At the time of claim, insurers may ask for original invoices. If there is any doubt about the fair valuation about the jewellery, it is better to get a fresh valuation done. This will help avoid any ambiguity at the time of making a claim. You will also get a clear sense of the value.

I will be travelling to the US and Canada this year during summer. I want to get travel insurance for that trip. Will I have to disclose my itinerary to the insurer? What all information is required by the insurance company to process my insurance and what all will it cover?

Dheeraj Bharadwaj
For the purpose of travel insurance, you need to specify the countries of travel along with dates. To purchase the insurance, insurer would further require your age and prior medical history. In case of higher ages or a pre-existing medical condition, the insurer may ask for a medical check-up before the policy is issued. Coverage varies by the plan that you opt for. Common covers include emergency hospitalization, accidental death and disability, flight delay, loss of baggage, and loss of passport. Claim documentation varies by type of loss. In case of a claim, you should inform the insurer immediately on its helpline or email. Along with a claim acknowledgement number, it would send you the documentation required for the specific claim.

I bought a car for about Rs15 lakh and got a 25% no-claim bonus (NCB) transferred to it from my previous car. If I take only third-party insurance for a few years, can I restart the own-damage cover? Will I still get my NCB when I restart. Also, I drive a motorcycle. Can I transfer its NCB to my car’s insurance?

Nishi Pathak
NCB is applicable only on the own damage (OD) section of motor insurance. It is not applicable on third-party liability insurance. Once NCB is transferred to the new vehicle, you need to continuously renew the policy for the NCB to be valid. If an insurance policy is not renewed within 90 days of expiry, NCB will lapse. If an insured vehicle is sold and not replaced immediately, and the policy is not renewed immediately after expiry, then NCB can be carried forward for 3 years. NCB can be only transferred within the same class of vehicle. Therefore, NCB of a motorcycle cannot be transferred to a motor car.

I am 45 years old and looking to buy a high health insurance cover of around Rs50 lakh. Given that interpretations of medical situations may vary by insurance companies, should I split the sum assured into two? I want to avoid any situation of claim rejection, especially if the amounts are large. Please advise.

Bhushan Tiwari
A big source of disputes in medical insurance claims is around pre-existing diseases and non-disclosure at proposal stage. A sum assured of Rs25 lakh or Rs50 lakh at your age would invite full medical underwriting across insurers. This would involve a medical check-up before the policy is issued. Herein, the scope of ambiguity about prior medical conditions is less. Further, after the initial waiting period for pre-existing diseases is over, the scope for insurer to repudiate a claim is further minimized. Buying two plans would have the following disadvantages. First, it would require you to go through medical underwriting twice. Second, the terms of these plans may vary somewhat. This may require you to optimize claims between two plans. Third, the list of cashless hospitals may vary between two insurers. This may lead to back and forth during claims. Finally, the premium for a single Rs50 lakh plan will be lower than two Rs25 lakh plans. I recommend you go with a single insurer for the full Rs50 lakh sum assured.