Readers' Corner: General Insurance

Rakesh Jain, Chief Executive Officer of Reliance General Insurance, answers your questions

I will be staying in the US with my son for a few months. How much travel insurance should I take? Can I get insurance for the entire period of my stay?

Most countries now mandate travel insurance as a condition for issuance of a visa. Keeping in mind health care costs in the US, one should at least take a $100,000 insured policy. However if a person does not keep sound health or is a senior citizen, it would be advisable to take a higher sum insured, going up to $500,000.

Most insurance companies offer a policy tenure up to six months which can be extended, depending on the underwriting criteria. More important, while selecting a policy/insurer, you should ensure they have an appropriate network of cashless hospitals in the area you are going to stay.

If I buy health insurance along the savings bank account my bank is offering, can I claim tax exemption on the premium?

You can claim tax deduction upto specified limits for taking health insurance, provided you are paying out of your income.

Can I change my individual health policy to a family-floater at the time of renewal? Will the no-claim bonus also get transferred to the family-floater plan?

Insurance companies do allow changing from individual to floater plan, subject to their underwriting norms. However the waiting periods for named ailments/pre-existing disease shall apply afresh for the new members added into the floater plan. Since a floater plan works on the claims experience of the entire family, you may not be able to carry forward the no-claim bonus from an individual policy to a floater, especially if the other members have no such existing cumulative bonus.

I will be shifting to another city. Can I take insurance for my household goods? What kind of cover should I take?

You should opt for a marine transit insurance cover. Assuming you are shifting goods by road services within the country and your cargo would primarily contain used items like furniture, utensils, clothing, durables, etc, you may either opt for an All Risk Inland Transit cover, a very broad one, or a Basic Cover which will primarily cover loss or damage arising out of fire or collision of transporting vehicle. What is important is that the list of items being transported is comprehensive and appropriate market value of the items is declared upfront.

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