Banking: Rakesh Jain

Rakesh Jain, Chief Executive Officer of Reliance General Insurance, answers your questions

I have a group insurance policy for a sum assured of Rs 4 lakh. The policy is valid and in force. I had made a claim of Rs 11,500, but the third-party administrator of the insurance company approved a claim for only Rs 4,050. Despite my repeated requests, the company did not give clarification. What could be the reason? What can I do?

Generally, group insurance policies are taken by employers as an employee benefit tool. While taking such policies, employers tend to put in room rent capping depending upon the designation of the employee or other kinds of sub-limits on surgeries or co-payments, etc. You should first check with your employer whether any such capping, or co-pay is applicable in your case. If not, you are entitled to and should seek a clarification from the insurer by writing to them.

I am planning to buy a new car but don't want to sell the old one. I will appoint a driver and my wife and children will use it. Should I inform the insurance company about this while renewing the old car's policy?

You are not required to inform the insurer. However, if you want to protect yourself against any legal liability for the driver (in case of any accident to the insured vehicle), appropriate cover has to be opted for at the time of renewing the car policy.

What is the difference between a standalone critical illness health insurance policy and a critical illness rider? Which is better?

A standalone policy is an independent contract, while a critical illness rider, as the name suggests, rides on to the base policy, which could be a life or a health policy. The important aspect, which you should consider is the number of illnesses covered and the severity of such illnesses. Also you should additionally check the price of the rider vis-à-vis the policy premium. The other aspect is the renewal terms. It may so happen that the base policy may not be renewable beyond a certain age/term while the standalone critical illness policy might be available for a longer tenure.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in