Readers' Corner: General Insurance

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

I purchased an independent house. It is about 20 years old. Can I buy insurance for it?

You must buy insurance for your house. Insurance is readily available for old houses, provided they are maintained in proper condition. You can insure your house against fire and allied perils, which include damages due to perils like lightening, explosion, aircraft damage, riot and malicious damage, flood and cyclones etc. In addition to fire, earthquake and terrorism losses can also be covered, by asking for an extension from the insurer at an additional premium. You have the option of taking a fire and allied perils policy for the building for long period also, say 10 or even 20 years.

For declaring the value of the house for insurance, you should take today's construction cost, excluding the cost of the land. The premium amount is quite nominal.

I have a family floater which coves four people. If it has been used for one person, can another person make a claim in the same year? Are there any restriction on diseases for which the second person can claim?

Yes , if the claim has been availed for one person and still there is balance sum insured, then the same can be utilised for other covered members under the policy. The basic concept of floater is that the policy sum insured floats over all the individual members covered under the policy.

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