I am living in a rented house. Can I take a householder’s policy?
A householder’s policy covers both the building and its contents. The policy has the option to cover your contents alone, irrespective of whether you stay in a rented house or an owned property. The policy covers the contents of the house and appliances against fire and allied peril. The jewellery is also covered against burglary under this policy.
I am a 28-year-old man. I live with my wife, parents and my son (two-weeks old). When I was renewing the individual health insurance policies for my family last week, my agent suggested I opt for a family floater as I have a child now. Does it make sense to do so? My parents are 72 and 68 years old and are not suffering from any major illness. They have not been hospitalised or had any surgeries till date.
A person can either opt for an individual health policy or a floater depending upon his requirements and capability to pay the premiums. Normally a floater policy covers two adults and children. So, in your case it would be advisable that you shift to a floater policy with a higher sum assured as compared to individual policies along with your wife. You should continue the individual policies for your parents, in view of their age. While shifting to a new floater policy, ensure that you get the continuity benefit of the previous policy. If you have any accumulated ‘cumulative bonus’, check if it can be transferred as well. Make sure the other terms and conditions of the policy are similar too.
I want to get a CNG kit installed. Can it be insured? How can I get other car accessories insured?
Note down the details of all the accessories fitted in the car, along with their purchase price and approach your insurer. You will have to pay an additional premium, based on the value of the accessories to cover the same. That is also applicable in case of installing a CNG kit. Please ensure that an authorised agency fits the kit in your vehicle.
What does the term deductible imply in an overseas travel insurance policy? Will I have to pay the deductible each time I am hospitalised or visit a doctor?
Deductible is a share of the cost that a customer has to bear in respect to the covered expenses for every admissible claim. In other words, the insurer shall not be liable for a specified amount of the covered expenses in respect to each and every claim. Yes, the deductible will be applied on every admissible claim.
At what value do insurance companies insure a car? Does it include registration and sales tax cost?
A new car is insured at 95 per cent of its normal invoice price. As the vehicle gets older, it depreciates and as a result its value comes down. Motor tariffs specify various slabs of depreciation that go up to 50 per cent for five-year-old vehicles. The registration charges and road tax are not included in a conventional private car policy. However, opting for the lifetime road tax add-on cover can also prove to be beneficial to customers.
The writer is managing director, Royal Sundaram Alliance Insurance Company