Readers' Corner: General Insurance

I am constructing a house in my village. The plot was earlier marshy land. I want to buy insurance for this house, but will my application be rejected due to this reason? If the house develops seepage problem later on will it be covered?
 

Generally, insurers would be open to give home insurance though the house has been built on the marshy land provided adequate care has been taken during construction to ensure the stability of the building. This aspect may be checked at the time of a claim as insurer will assume that the building is built with adequate safe guards and with proper approvals from the local authority while assuming the risk for insurance. But please note that home insurance policy will not cover any loss or damage due to seepage of water. 

Do home insurance policies have No Claim benefits like health insurance and motor insurance?

No, home insurance policies does not have any claim benefits like health and motor insurance. However, based on the experience of the policy, the premium is subject to revision with terms and conditions, if required. 

Along with insuring my factory and machinery, can I take insurance against possible loss in business?

Losses happening in the normal course of running the business is not covered by insurance as it is a business risk. However, you can insure the Loss of Profits due to interruption in business following a fire or other perils covered in the fire policy. Similarly, loss of profits following business interruption due to machinery breakdown loss also can be insured.

I had purchased a health insurance policy two years back and was claiming tax exemption. If my husband pays the premium this year can he claim exemption?

Yes, if he pays the premium for the Health Insurance Policy covering his spouse and dependent children/ dependent parents, he is eligible to claim Tax exemptions under Section 80 D.

We have a family floater policy for the last three years to cover my wife, daughter and me. Now we are expecting a second child. Will the existing policy cover maternity expenses and vaccinations? Or do I have to buy an additional policy or cover?

You have to check the terms of your family floater cover to see if offers maternity benefits, the waiting periods for maternity benefits, if covers the baby from day one as well as covers vaccination, etc. Some products have a shorter waiting period of two years if both the husband and wife are covered under the policy and a maternity claim becomes payable if the third renewal premium has been paid. Few policies cover the new born including vaccination charges.

I am planning a road trip with my friends in my car. Will my comprehensive motor insurance cover all of us in case we are injured in an accident? 

Occupants of a private car other than the owner of the vehicle are deemed to be ‘Third Parties’ in law and can, therefore, lodge a legal claim in the event of injury or death following an accident. However, there is an option for the vehicle owner to purchase a Personal Accident cover for the occupants by paying additional premium. In this case, the claim can be filed in the normal course with the Insurer other than through a court. However, there is also a compulsory accident insurance cover for the Insured Owner of the vehicle for a Sum Insured of Rs 2 lakh.

The writer is MD & CEO, Future Generali India Insurance. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in