GENERAL INSURANCE: Ajay Bimbhet

I got a health insurance policy of Rs 8 lakh from my employer, covering myself (33-year old), my wife (31-year old) and my two-year-old daughter . I have not made any claim against the policy. Do I need an extra health cover? How do I decide on the sum assured for the additional cover?
A health insurance policy, offered by an employer under a group, will cease to operate in case one quits the job, either to join another employer or on retirement. And, since it is not mandatory for all companies to offer group health policies to its employees, you can find yourself without a health cover once you leave the service.

 

Also, in old age, especially if there is any pre-existing disease such as a heart ailment, it may be difficult to obtain a policy with an adequate sum insured. It is, therefore, desirable that you buy health insurance to ensure a continuous cover, irrespective of your employer’s offer. Since your employer is providing you a sum insured of Rs 8 lakh, you could buy a cover for Rs 2 lakh, and gradually increase the sum insured during renewals.

I have a comprehensive motor insurance cover for the last five years. I had bought a three-year-old second-hand car, which has been having problems recently. It has led to higher premiums. Should I opt for a third-party cover when I renew the policy this time? Will it lower my premium amount? I may sell the car in a year’s time, though I haven’t decided anything as yet.
You can opt for a third-party cover. Under the Motor Vehicles Act, it is mandatory that every vehicle has this cover. However, a third-party policy will not cover any damage or theft of the vehicle. In case your vehicle gets damaged, you will have to bear the cost of repairs. Since accidents are unpredictable and the extent of loss can be severe, involving a high repair cost, we recommend you continue with a comprehensive package as against a third-party cover.

A third-party cover will have a lower premium than a package policy. If you opt for a package policy, renew it on time. And, if you have not made any claim for damages in the expiring policy, you will be eligible for a no-claim bonus. It starts at 20 per cent when you seek a renewal for the first time, and goes up in graded slabs up to 50 per cent, provided the claims are not made in the succeeding years as well. The value of the vehicle goes down as its age increases. Hence, your annual premium should also be lower for every successive year than what you had paid the previous year.

I run a school for street urchins and physically disabled children. At present, I teach 20 children in the age group of 10-15 years. Is there a small-ticket health policy for such children, at least for the physically disabled, or maybe a group plan? Please help.
Generally, there are no specific or small-ticket covers available for physically disabled individuals. Also, the acceptance of such a proposal is dependent on the underwriting framework of each insurance company. You may approach any insurer with complete details such as the sum insured and the coverage you require with a quote for a group policy.

My father will retire in three months. Until now, he had a health cover from his employer, which covered my mother (55 years) also. Should I opt for a family floater covering all of us — myself (35 years), my wife (32 years) and parents, or individual covers for my parents? How much should the cover be in both cases?
Subject to satisfactory medical examinations, you can purchase health insurance policies for your parents. While both individual and floater policies have their own advantages and disadvantages, you can take an appropriate decision after analysing your health insurance needs vis-à-vis the sum insured and the premium.

The writer is the managing director, Royal Sundaram Alliance Insurance Company. Send your queries to yourmoney@bsmail.in