General Insurance: Rakesh Jain

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

I have not made a claim on my motor insurance in the past five years. If I buy a new car, can I use the no-claims bonus that has accumulated in my policy?

Yes you can, as the no-claims bonus follows the fortune of the insured and not the vehicle. The new vehicle can be substituted on the policy to avail the benefit, provided the class of vehicle is the same.

Is there any mandatory insurance for shop owners?

It is not mandatory for shop owners to take insurance. However, owners who handle specified hazardous materials (as defined by law) have to take public liability insurance policy. Nevertheless it's advisable to take shopkeeper insurance which under its multiple sections provides coverage for damage to shop and its contents caused by fire , theft, etc.

If I purchase a family health insurance policy in the city where I work, will it cover my wife and kids who are in another city?

Yes, if your wife and kid have been covered under the insurance policy then it would cover them even if they are in another city. However, some health insurance plans may have some restrictions/conditions for room rent and co-pay. These depend on the city - metro or non-metro. If you are covered under any such kind of a health insurance plan then you will have to be cautious that you are complying with it and are eligible for claim payment.

What is covered under home insurance? Can I claim damages to electronic appliances under home insurance?

The basic cover under home insurance is for fire and allied perils for the building (structure) and contents, specifically for contents you can also add protection against burglary and house breaking.

In addition, electrical and mechanical appliances can be covered for accidental damage and breakdown. Claim can be made if the specific electronic appliance has been declared and included under the home policy.

Currently there are several home policies available in the market which also cover a wide range of sections, like employer's compensation for domestic servant, liability towards third party, personal accident for residents, coverage against loss or damage to plate glass fixed at home, etc.

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