General Insurance: Bhargav Dasgupta

Bhargav Dasgupta, managing director & CEO of ICICI Lombard General Insurance, answers your questions

I am a medical doctor. A friend has suggested I buy an indemnity policy. I would like to know what risks are covered and how this policy differs from the usual death cover.

You can avail of a professional indemnity policy, which covers professionals for any shortcomings or disputes related to their discharge of duties. This would cover you against claims made by patients or relatives of patients pertaining to diagnosis or treatment. Also, if there are any legal proceedings, the expenses incurred on defence of the case - for example, payment of fees to the attorneys - would be covered. An indemnity policy is different from a death cover. In the case of a death cover, a lump-sum amount is payable in the event of death of the insured. An indemnity policy is a liability policy and is applicable to a professional.

I am 26 and have been working for three years . I only have a term plan for ~30 lakh. What health cover would you recommend for me? Also, will I have to buy a personal accident cover separately?

You can avail of a health insurance plan, which provides you cover against expenses incurred on hospitalisation and day-care procedures. You can choose a family floater (which would provide cover to you and your family members) or an individual plan. You would also need to decide on the appropriate sum insured, based on the age of individual family members, family size, city of residence and health condition. With regard to the personal accident cover, you can either purchase a separate personal accident policy or choose a health insurance plan which offers personal accident cover as a rider. The latter might be a more convenient option, since a single plan would take care of both requirements.

Some health insurers offer double the sum assured if one doesn't make any claim in that particular year. While the product sounds very attractive, is there anything to keep in mind before buying such policies?

Most insurers offer an Additional Sum Insured (ASI) benefit for every claim-free year. The extent of ASI offered varies across companies. There are certain policies that double the cover if no claim is intimated over consecutive years. Some insurers also increase the cover by up to 50 per cent if no claim is intimated over one year. One should also evaluate the health insurance policies on other parameters, including benefits such as cover for impatient treatment and day-care expenses such as OPD benefits and wellness. The waiting period for pre-existing diseases and, most important, the claim-paying capabilities of the insurance company should also be kept in mind.

I purchased a car three years ago. Till now, I have not intimated any claim. I am buying another car soon and would like to claim a discount on its insurance. I will be keeping both cars. Will I be able to claim a discount on the insurance of the new car?

You can transfer the no-claim bonus (NCB) earned or accumulated on one car to avail a discount on insurance of the second. However, such transfer of NCB is allowed only on sale of the old vehicle (on which NCB has been earned) or if the vehicle is no longer in use. In your case, transfer of NCB will not be applicable if you continue to use your first car.

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