Individual Insurance

Published in Mint on 10 November, 2015, Written by Abhishek Bondia
Why is travel insurance needed and what all does it cover? What is the minimum period for a trip to be insured?
—Raksha Shourie
A travel insurance provides for temporary coverage for risks when you travel overseas or domestically, including hospitalisation expenses, accidental death and disability, loss to personal property, higher expenditure due to flight delays, and third party liability. The most frequent source of claims is from accidents that take place when you travel or sudden illnesses. Medical treatment due to pre-existing diseases is generally excluded, but some may provide limited cover in an emergency. The insurance can cover even a day trip.
Will my personal accident policy cover me when I am outside the country? If so, how can I make a claim?
—Sahil Manchanda
Yes. A typical personal accident policy provides a 24-hour worldwide coverage. You should check the territory clause in your policy for specific geography covered.
Accident insurance policies are generally reimbursement policies where you have to file a claim after the incident has occurred. In case of accidental disability, you need to submit the disability certificate, claim form and other documents specified by insurer. In case of an accidental death, the nominee can claim the amount on submitting death certificate, a post mortem report, claim form and other documents. The claim needs to be submitted in India and will be settled in rupees.
Will my motor insurance cover a music system installed in my car during the policy term?
—Kathleen Sylva
Motor policy has an option to cover electronic equipment installed for an additional premium. You would need to inform the insurer about the music system and get it under the policy after paying an extra amount.
Can I get no-claim bonus benefit on my company’s car, if it is transferred to me?
—Tejinder Bhatti
Yes. Typically, no-claim bonus is linked to the owner and not the car. However, if a company-owned car is driven by an employee, the no-claim bonus can be transferred from the company to the individual. The company needs to give a declaration on its letter head that the car has been used by the employee.
Should I opt to get myself covered under my company’s group health insurance plan or take my own cover separately?
—Karan Jain
A group insurance plan has several advantages, like pre-existing diseases could be covered from Day 1. Also, it typically waives off disease-wise waiting periods. The settlement process is smoother. But the drawback of this plan is you lose the benefits when you leave the company. Opt for the group insurance plan and also buy a personal health cover. This may cost a little extra but having your own insurance is worth it.