General Insurance: Rakesh Jain

Today, Rakesh Jain, chief executive officer of Reliance General Insurance, answers your questions

How important are a customer's know-your-customer (KYC) details for an insurer? I have noticed some insurers insist on KYC, while some don't. What is the reason for lack of uniformity?

KYC norms differ according to the insurance claims and premiums amount. According to the norms, insurance firms need to mandatorily collect KYC documents from a retail customer in cases where the claims payable exceed Rs 1 lakh. In cases where the premium is paid in cash, for amounts exceeding Rs 50,000 per transaction, the customer needs to quote his/her PAN (permanent account number) to justify credible sources of funds. However, they may not ask for KYC documents for amounts less than Rs 1 lakh. While KYC procedures help the insurer verify and validate a customer's identity, it also helps the customers get hassle-free claims when needed.

I am covered for health by my employer. My wife and I also own individual health covers. Can I buy a health insurance plan for my three-year old son? Are plans available for children of his age?

Yes, you can opt for a health plan for your child. There are companies that offer health cover from 91 days after birth. Most companies may, however, insist a child between 91 days and five years be covered under a family plan.

Foreign travel plans offer various other benefits such as coverage on baggage and passport loss, compassionate visit and so on, apart from health cover. Is it necessary to opt for all these benefits? Can one not opt for only the medical cover?

Any foreign visit is exposed to two main exigencies - emergency medical conditions and trip-related risks. Travel products being offered in the market are comprehensive and cover both these exigencies. Most travel insurances cover these two exigencies. However, the cover (medical, loss of passport, trip-delay, missed connection and so on) and the sum insured covered can vary from plan to plan and insurer to insurer. Select according to the requirement.

I own a multi-utility vehicle to take school children to and from their homes. I haven't renewed my motor policy in the past two years. Recently, the vehicle met with an accident. Can I get the vehicle insured now?

Plying a vehicle without mandatory insurance is a violation of the Motor Vehicles Act, which may result in a fine and/or imprisonment. We assume your vehicle is registered under the appropriate category of commercial vehicle. As you have mentioned your vehicle met with an accident, the insurance company will first have the vehicle inspected and, subject to its roadworthiness, it would be insured.

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