General Insurance: Gaurav Garg

I bought a used car four years ago for Rs 6 lakh. The car insurance expired in December last year and I want to renew it. But the sub-model is not manufactured any more, though the model is. How do I estimate the sum for which I should renew the car?
The value of the discontinued model can be estimated on the basis of the current market value of the vehicle, since the price of the new vehicle is not available. The value of such vehicles is normally agreed upon between the insured and the insurer, in the absence of a standard value.

However, in this case, the previous policy expired sometime ago, leading to a break in insurance. Now an insurance policy will be issued by the insurance company only after a satisfactory inspection of the vehicle. The company will arrange for an inspector.

What is a money insurance policy and what does it cover? Is it a viable option?
A money insurance policy covers loss of business cash when kept in a safe at the insured premises. This covers loss of cash, bank notes, currency notes, coins, bank drafts, cheques, postal orders, money orders, treasury notes, current postage and revenue stamps, belonging to the insured’s business, kept in the insured premises. And, loss or damage to any safe, strong room or cash box containing the money.

Money insurance also covers loss of business money in transit between the bank and insured premises. This cover can be availed either as a standalone policy or a package policy available for small and medium enterprises.

My wife is opening a branded gift items shop. What insurance cover should she take against the associated risks?
You must look at fire and special perils (such as earthquake) cover for your property — building and contents. You should also consider optional covers for burglary, money insurance, guarantee cover for employees, plate glass and neon signboard, electronic equipment breakdown, loss of profit due to business interruption, etc.

I keep Rs 5,000-7,000 cash at home. But it is not covered under the householder’s policy. Why? Is there any policy which covers cash at home?
Traditional householder’s policies do not cover cash at home. Some insurers offer policies that cover home contents, including money and cheques, against burglary or theft while the insured is away on a personal trip.

At what value do companies insure a car? Does it include registration and sales tax cost?
For brand new cars, the invoice value – including tax – is considered as the insured declared value, to arrive at the premium for the car insurance. Registration charges are not included.

The writer is the managing director and CEO of Tata AIG General Insurance. The views expressed are his own. Send your queries to yourmoney@bsmail.in