General Insurance

1. What is the period of General Insurance?

Typically, General Insurance contracts are for a one year period only.

2. How much should one insure for?

A policy should normally cover the value of the asset. The amount you insure is called sum assured. Policy premium depends on the sum assured.

Motor Insurance

1. Is motor insurance mandatory?

Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988 and needs to be renewed every year.

2. What does a comprehensive motor insurance cover?

A comprehensive motor insurance policy would include personal accident and liability only policy (third party insurance) in addition to own damage cover (damage to owner’s vehicle) in one policy.

3. How can one check if the insurance policy bought is from an authorised agent?

The Insurance Regulatory and Development Authority Of India (IRDAI) issues licenses to insurance agents who are authorised to sell insurance. You can ask the agent for his license to check if they are an authorised agent. Also check the list of terminated and suspended agents that all insurance companies have on their website. The insurance policy itself should also have the contact details of your agent.

4. I received compensation and interest from Motor Accidents Claim Tribunal. Is the interest received taxable?

Interest on compensation is a part of compensation itself and hence must not be taxable. Various High Court judgements support this stand, holding that compensation as well as interest awarded are not in the nature of income and should thus not be charged to tax.

5. My motor policy expired a month back. I had not made any claims in the previous year. Will I lose my NCB if I renew the policy now?

No, you will not lose your NCB as it is valid up to 90 days from the expiry of the previous policy.

6. I have NCB on my old car’s motor insurance policy. I purchased a new car. Can I transfer the policy to my new car without losing the NCB?

Yes, you can transfer your NCB to the new car. But you need to sell the old car and reserve the NCB from your previous insurer (by obtaining an NCB reserving letter from it).

7. I checked just now and found my car insurance policy has lapsed a month back. Can I renew it now?

Yes, you can renew your policy. If you renew your policy within 90 days of expiry, your previous No Claim Bonus (NCB) will be carried forward. If you delay and go beyond 90 days, that will not only result in the loss of NCB but could also be asked to pay higher premiums.

8. How can I renew my lapsed motor insurance policy?

For renewing your policy online within 90 days from expiry of old policy, keep the required documents ready, and log on to the insurer website, then enter your plan details and make the payment. For doing it offline, carry your policy documents to the insurer’s branch, to renew it.

9. Can I revive my lapsed car insurance after 90 days of expiry of car insurance policy?

Most insurers insist on a physical inspection of vehicle if you are renewing it after 90 days from expiry of previous policy. Some insurers also have the option of a digital self-inspection system for physical verification.

Also, in case of a vehicle with more than four minor dents or a crack in the windshield, the insurer might reject your proposal for insurance. 

10. What are the Common exclusions in Car Insurance policies?

– If any damage happens during the policy expired period. Insurance cannot be claimed.
– If driven under the alcohol or drugs or any other intoxicating substances.
– If driven without valid license.
– Damaged due to terror attacks, invasion etc is not cover under standard motor policy.
– Engine damage due to oil leakage.
– If car is used for commercial purpose.
– Wear and tear of the car.
– In case of theft of the car, insured needs to immediately file police complaint.

11. What is No Claim bonus (NCB)?

– NCB is a discount on future premium given by the insurer, towards the end of the renewal if the year has been claim free.
– NCB starts at 20% the first year and can go upto 50% after few years.

12. If I make claim, will my car insurance premium go up?

– Once you make an Insurance claim, you will lose the benefit of no-claim bonus (NCB) accrued on the motor cover. This will result in future premiums going high.

13. What costs do I have to bear during a motor insurance claim?

– One should keep in mind the NCB (No Claim bonus) will become zero.
– Deductibles.
– Depreciation.

14. How to add hypothecation to vehicle insurance?

If the vehicle is purchased on loan, hypothecation is a must.
To add hypothecation, letter from bank and endorsed RC copy needs to be submitted to the insurance company.

15. How to remove hypothecation from vehicle insurance?

• For deletion of hypothecation, NOC/ Endorsed RC copy needs to be submitted to the insurance company.

16. What is a cashless claim in Car insurance?

Each insurance provider has a network of garages. In a cashless claim, the insurance provider directly settles the claims with the workshop for any repairs to the vehicle at the network of garages.

17. What is a reimbursement claim in car insurance?

The insurer first pays for all the repairs of the damage. He/She can then later claim the amount from the insurance company based on the terms and conditions of the policy. All bills and repair receipts need to be submitted to the insurance company to get the reimbursement.

18. Who is an insurance surveyor?

An insurance surveyor or loss assessor is a person authorised by the insurance company to inspect, assess, validate and determine the value of damage. The surveyor submits a report to the insurance company based on the survey done.

19. What is the procedure to claim car insurance?

• First inform the insurance company about the damage to vehicle.
• Submit the claim form along with required documents like RC copy, Driving License copy, original policy to the insurance company.
• Company will send a surveyor to assess the damage to the car.
• Surveyor assesses the vehicle and submits the report to the insurance company and also sends a copy to insured.
• Based on the surveyor’s report, arrange for the car to be repaired.
• Once the repairs are done, take the duly signed bills and documents from the garage and submit it to the surveyor. This needs to be done immediately and Surveyor will pass it on to the insurance company.
• If all the documents are fine, then the insurance company will reimburse your claim.

20. What documents are required for car insurance claim submission?

• Claim form duly filled in and signed by the insured
• RC copy with original keys
• Copy of driving license
• Original policy copy
• Original FIR copy in case of theft

Health Insurance

1. What happens if the Primary Insured in a family floater dies?

In case the primary insured dies post hospitalization, then the claimable health expenses would be reimbursed. If the primary insured is also the eldest member in the family, then for the succeeding years after the death of primary insured, the premium would be calculated on the basis of the age of next eldest member. For this to happen, the family should fill up change of request form provided by the insurer. 

Please note that in case there were only two members covered under the policy, then the family floater plan would be converted to an individual plan. 

2. If I get hospitalized for suspected covid-19 and later test negative, will the policy cover hospitalization cost?

In case you are tested negative, you would not have undergone any treatment. So, the policy would not cover such incurred expenses.

3. My wife and I having individual health policies want to have single family floater. If I do this, will we get to carry forward the waiting periods we have already completed? What are the relevant rules?

Migration of existing Health Insurance plans: to a floater plan with the same insurer. You will be able to carry forward the lapsed waiting period in the earlier individual plans to the new floater plan.

    In order to migrate your existing health insurance plans, you need to

       ·    Insurers ask for a notice of at least 45 days before the renewal dates of your individual policies.

       ·       If the renewal dates for both of you does not coincide, then the first up should be migrated to a family floater.

       ·       When the subsequent plan comes up for renewal, then the concerned person could be added to the floater plan.

4. Can i cancel my health insurance policy?

there is a free-look period of 15-30 days, and if you cancel health insurance within this period, the entire premium amount would be refunded after deducting the stamp duty fees and proportional risk charges for the days you are being covered. 

5. Does my health insurance policy cover me overseas?

No.

6. I am a senior citizen and have high blood pressure. Can I claim income tax deduction for expenses incurred on medicines, doctor’s fees and medical check-ups?

Yes, senior citizens can claim tax deduction of up to Rs 50,000 under Section 80D. However. this deduction is allowed only if you are not covered by a health insurance policy.

7. Can an unborn child be covered under health policy?

Standard health insurance plans do not cover newborns for the first 90 days and exclude coverage for maternity expenses.

You need to buy a family floater maternity health plan with a cover for newborns.

8. In case of family floater policy, can the policy be renewed by any of the surviving members if the primary insured person dies?

Yes, the policy can be renewed by a surviving member. You may have to submit a copy of the death certificate to confirm the passing away of the primary insured.

9. What is top-up in a health insurance policy?

Top-up plans are basically add-on plans which can be purchased in addition to one’s regular health insurance policy. While regular health insurance policies compensate hospital bills equal to the sum insured, top-up plans cover costs after a certain threshold is attained. 

10. Do I have to undergo medical tests to buy a top up health insurance plan?

No, Insurance companies offer top-up plans without requiring any medical screening. This is irrespective of the fact whether the top-up is from the same insurer or from a different one.

11. What is super top up in health insurance policy and how is it different from top up plan?

Super top-up plans are similar to top-up plans, except that top-up plan covers a single claim above the threshold limit, while the super top-up plan covers the total of all hospitalization bills above the threshold limit.

12. Can I port my health insurance policy from a group policy to an individual policy?

Yes, individual members, including the family members covered under any group health insurance policy of a general insurer or health insurer shall have the right to migrate from such a group policy to an individual health insurance policy or a family floater policy with the same insurer.

13. Can I buy only a critical illness policy or do I have to buy it with a health insurance policy only?

You can buy a stand alone critical illness policy cover.

14. What is Aarogya Sanjeevani health insurance policy?

IRDAI has introduced a new standard health insurance policy launched from 1^st April 2020. The coverage, exclusions, name and all other clauses will remain same across all insurers for this policy.

Offered on individual and family floater options with Sum Assured between Rs 1 lakh and Rs 5 lakhs and policy term is 1 year.  Minimum entry age is 18 years and maximum entry age is 65 years. 

15. What is co-payment?

Co-payment is that part of your hospital bill amount, which you have to bear. Co-payment can range from 5-25%. 

16. What is the time limit to settle claims for a non-cashless policy?

You should submit your claim within 15 days from the date of discharge from the hospital. 

17. What is health insurance portability?

Health insurance portability means that you have the freedom to switch from one insurer to another without losing any continuity benefit with respect to PEDs, waiting period and other time bound exclusions, earned in the previous health insurance policies, subject to continuous insurance in the previous years. 

18. In the event of a claim already being made, if I want to renew my Complete Health Insurance Policy for the second year, do I have to undergo a medical check-up again?

No, the medical check-up has to be taken only once, during the time of taking a policy. 

19. Can I add or remove family members from Health Booster Policy?

Yes, you can add family members to your policy at any time by paying additional premium as applicable. However, removal can be done only at the time of renewal. 

20. What is better – a health policy that has in-built cover for cancer, or a stand-alone?

The standard health insurance policy provides a better coverage.

21. Will health insurance also come under 80 C like term insurance or in any other section?

Health Insurance is under Sec 80D

Travel Insurance

1. Can I change the travel date in the policy?

Yes, you can change your travel dates anytime before the policy start date to a later date. 

2. I forgot to purchase a travel insurance policy and I am already out of the country. Can I still buy travel insurance policy?

Your policy start date and purchase date cannot be later than your trip commencement date. 

3. I am travelling out of the country for good. Can I buy Travel Insurance Policy for a specific period of time till I get my local insurance activated?

No, Travel Insurance policy is for those who plan to come back to India and where the purpose of travel is leisure holidaying, business and studies. 

4. I have to cancel my trip, but I already bought the policy. Can I cancel travel insurance? Are there any cancellation charges?

You can cancel your travel insurance anytime before the policy start date. 

In case the travel insurance cancellation request is received anytime after the commencement of the policy date, photocopy of all the pages of the passport will be required as a proof that you have not travelled. Cancellation charge of Rs 250/- is levied on all cancellation requests. 

5. Does the travel insurance policy cover pre-existing diseases?

Any claim due to or arising out of pre-existing medical condition/ ailment whether declared or undeclared is not covered under the policy.

6. What could be the maximum trip length?

International travel cover can be purchased for 180 days at a time and can be extended for another 180 days. This is subject to underwriting guidelines. 

7. What are the different types of travel insurance policies?

The different types of travel insurance policies are:
• Individual Travel Policy
• Family Travel Policy
• Student Travel Insurance
• Senior Citizens Travel Policy

8. Can I extend my overseas travel insurance?

It is a good idea to carry out the extension process at least 7-10 days before the expiry of the period. This can be done online.The policy is usually extended for a maximum additional term of 180 days.

9. Is it a good option to take super to-pup health insurance?

Yes, super top-up plans provide higher sum insured and coverage amount can be increased over and above existing health insurance plan at a lower premium.