Published in Mint on March 26 2017, Written by Abhishek Bondia
We have a vintage car in the family which is in the name of my grandfather. He is 78 years old and we will not allow him to renew his licence to drive a car. We cannot sell the car and don’t want to transfer the car in anyone else’s name. Is it possible that the car can be insured in one person’s name while its owner (the person in whose name it is registered) is someone else? Please explain how this can be done, if it can be done.
A motor insurance policy can only be issued in the owner’s name. An owner has an insurable interest in the car. However, the owner need not have a valid driving license or be the sole driver of the car. It is okay for the car to be always driven by a paid driver. So, your grandfather can continue to own the car and get an insurance policy issued under his name. He need not renew his driving license to buy the car insurance policy.
I am 38 years old. I and some friends of mine are planning a rafting-cum-trekking vacation. Can you suggest a good insurance cover? I have a term life insurance plan that I bought 9 years ago, and a mediclaim cover that is adequate for my usual needs. If there is an accident during the trip, would these insurances suffice or should I buy myself additional cover?
The risk that is not covered under your term and health insurance policies is that of disability. You should get a personal accident policy. In case you are permanently disabled, for example, due to complete loss of eyesight or loss of both limbs, the insurance company will pay the sum assured. In cases of permanent or partial disability, the amount paid is linked to the extent of disability. While buying a plan, ask for coverage of adventure sports as well.
This year, two of my cousins (aged 25 and 29) came to visit me to surprise me on my 30th birthday. Both of them are US citizens. They will now be staying here for 2 more months. As they came without travel insurance, I want to buy the required insurances for them. Can you please tell me how to go about buying insurance for them? What would be some of the necessary insurances for them, considering that they will be travelling extensively in India by road? They will be here for 2 months and I want to buy health and life insurance for them during the trip. Can you please tell me what are my options?
You should consider a domestic travel insurance policy. This will cover accidental death or accidental hospitalization expenses. These also cover the cost of lost tickets, documents or baggage. Do declare your cousin’s citizenship in the proposal form.
Should I consider buying a stand-alone critical illness plan, when I already have a Rs20 lakh sum insured in my family health insurance?
Coverage for critical illness and family’s health insurance are distinct. Standard family health plans pay out-of-pocket expenses for hospitalization. But several expenses are not covered, including non-medical expenses, loss of income due to inability to attend work, outpatient treatment and diagnostic expenses, and increased living expenses due to the illness. These can be substantial, particularly for critical illness. The critical illness plan covers such expenses. It pays the sum assured as a one-time payment, as soon as the specified illness is diagnosed. This policy works in parallel with the family health insurance plan. You can continue to claim your hospitalization expenses from the mediclaim plan even if your critical illness plan is triggered.