General Insurance: Gaurav Garg

I plan to buy a motor insurance policy. How can I get a discount? Also, on what factors will it depend?
A discount can be allowed on a few parameters. For instance, the premium may be discounted on account of the safety feature, that is, if the vehicle is fitted with Automotive Research Association of India (ARAI) -approved anti-theft device. In case the insured is a member of the association, the premium gets reduced. It can also be reduced if the customer has earned any no-claim bonus in the past.

With a standard health insurance policy, which riders are a must?
If the standard health policy includes benefits only against hospitalisation, a critical illness rider covering commonly diagnosed conditions should be taken. With over 85 per cent of hospitalisations being in five areas — cardio, cancer, accidents, acute infections and maternity — it becomes imperative to get insured against critical illnesses, besides the hospitalisation cover.

Additionally, there are a few products which offer a fixed-benefit comprehensive coverage against hospitalisation, surgical and critical illnesses under one plan. Obviously, these cost more that a standard mediclaim.

Premium is charged on the basis of the sum insured opted for and your present health condition (applicable after a certain age). We suggest the sum insured is chosen keeping in mind your annual income. Riders attract additional premium.

What does the term ‘deductible’ imply in an overseas travel insurance policy? Will I have to pay the same each time I am hospitalised or visit a doctor?
Unless specifically defined under the contract, the term ‘deductible’ refers to the expenses that have to be borne by the insured for claims arising out of a new event before the policy benefit becomes payable. The deductible is applicable for each claim separately arising out of a new cause of incident or sickness. However, if the insured has to visit the doctor for the same ailment or claim several times as a continuous treatment, a single deductible will be applicable.

I want to buy a personal accident cover. What does it cover and on what basis do insurers charge premium?
Personal accident policies cover death and disability due to accidents. The cover can be bought as a standalone policy or as a rider on life or health plans. However, it is advisable to buy a standalone policy, as riders don’t cover loss of income and other benefits. Also, a policy would be cheaper than a base policy plus rider for personal accidents. There are riders which take care of accidental medical expenses to some extent. Some policies also offer riders like education benefit and repatriation of remains.

Premium is charged based on sum insured opted for. The sum insured is normally linked to the annual income of the person. Riders attract additional premium.

The writer is MD and CEO of Tata AIG General Insurance. The views expressed are personal. You can send your queries to yourmoney@bsmail.in