General Insurance: K K Mishra

Readers' Corner

My father is 54 and plans to retire in two years. I wish to gift him a medical policy. What should I keep in mind? Will a family floater plan work better? My mother is 50, and has a health policy (sum assured of Rs 2 lakh). Please advice.
It is advisable to opt for an independent coverage for each family member, though it might cost marginally more. Under a family floater plan, the amount is shared. If the sum insured is Rs 10 lakh, the entire family will be covered under it. Since the cover is shared, the policy is relatively less expensive. However, if parents are included, it can be expensive as the premium for the full policy is calculated based on the age of the eldest member.

Thus, it is advisable to buy a separate plan for parents. An individual cover works better as it covers each member. Also, the sum insured can be different for different members. On buying a separate cover for the parents, the proposer can avail of additional tax benefits under Sec 80D for premiums paid up to Rs 20,000.

The building I stay in is already insured by the housing association. Will it make sense if I still buy a separate householder's policy?
If the building is already insured by the housing association, the cover takes care of the overall structure and common amenities. If there is a loss due to fire in a house, or to the contents of the house along with the internal structure, it will not be covered under the insurance taken by the housing association. Further, most owners renovate their houses, which result in changes in the flooring and ceiling, which are also not covered under the society insurance.

It is, therefore, advisable to protect your home with an individual home insurance policy. This will protect your most prized possession from calamities such as theft. Hence, it’s called a comprehensive policy. It also offers worldwide cover for jewellery and valuables, cover for pedal cycle, breakdown of appliances, alternative accommodation, loss of rent cover and so on. The home insurance cover can be customised according to the need of the individual and the sum insured depends on the goods covered by the customer.

Views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in
Today, K K Mishra, CEO, Tata AIG General Insurance, answers your questions