NON-LIFE INSURANCE: Gaurav Garg

I had booked an expensive resort for a family vacation with a leading holiday company. According to the terms of booking, if I cancel my trip (for any reason), the booking amount won’t be refunded (not even partly). I had to pay the room rent — Rs 1 lakh — 15 days in advance when booking the place. Is there any insurance policy to cover loss due to ‘cancellation of vacation’? What is the scope of the coverage?
Most insurance companies offer compensation under the Trip Cancellation Benefit if the insured or accompanying passengers are hospitalised, or the trip is cancelled due to death of a kin, as defined under the policy. Under such circumstances, the insurance company makes good the loss incurred by the insured due to the cancellation of journey. This compensation is subject to certain limits defined in the policy.

My health insurance policy was due for renewal on January 30. I submitted the cheque on the due date at a local branch, but did not receive any receipt. The insurer was supposed to send me the renewal documents in seven working days. Two weeks later, I contacted the company to enquire about the documents. The representative said the company had cancelled my policy and it could not be renewed, as the grace period was over. On further enquiry, the company claimed it had not received my cheque. I have visited the office many times, but could not find the employee who took my cheque. Instead of resolving the issue, the representative suggested I should get a new policy. What should I do to get my policy renewed?
You are going to lose the benefits if the health policy is renewed after the grace period is over. Further, according to regulations, the insurance company cannot renew the policy until and unless it receives the premium in advance. You will have to substantiate that the cheque for premium payment was deposited by you with the company. The same can be done if you can confirm that the premium amount has been debited from your bank account or if you have an acknowledgement confirming timely deposit of the premium from the insurer.

My daughter hit a shop while learning to drive. She has a learner’s licence and the car is in my name. She was alone when the incident happened. Will the insurance company compensate the shop-owner under the third-party cover I have?
The insurance company is not liable under third-party cover if the driving licence of the driver was not valid and effective at the time of the accident. Since your daughter was driving the vehicle in violation of Rule 3 of the Central Motor Vehicle Rules 1989, it will be held that she was not carrying a valid driving licence at the time of the accident. This rule states that a person with a learner’s driving licence can drive the vehicle provided:

• Such a person is accompanied by an instructor holding an effective driving licence and sitting in a position to control or stop the vehicle.
• Or, the letter ‘L’ (of a specified size) is displayed in red on a white background at the front and rear of the vehicle.

The writer is the CEO & Managing Director, Tata AIG General Insurance. Send your queries at yourmoney@bsmail.in