General Insurance: Gaurav Garg

My home loan provider has given a loan cover (premium included in the equated monthly instalment (EMI)). Should I buy an extra cover?
Generally, the home loan provider arranges the policy covering up to the loan amount balance, as on date of payment of EMI. The cover may not be sufficient, if loss occurs after a year or more.

Further, such policies do not cover the contents of the flat. So, extra cover is required. Clarify from the loan provider regarding the adequacy of sum insured, and take insurance accordingly.

Can I gift my daughter a family floater plan? What is the procedure?
Yes, you can gift a health insurance policy. If she is married, gift the policy for herself and her family. However, the tax benefits will be availed by the one paying the premium, i.e. the proposer (you). The procedure includes sharing the proposer’s and insured members’ contact details.

What is a motor package policy? On claim, can the repairer be paid directly?
It covers damage to the vehicle and the third party. Insurers pay directly to select garages, subject to terms and conditions. This, however, can differ, depending upon policy and insurer.

I know auto, home loan lenders provide loan cover to the borrower. Do insurers also do the same?
Generally, insurers provide through a financier, but many offer it individually too. Check for the difference in rates, or any feature, with them.

The writer is MD and CEO of Tata AIG General Insurance