I, 24, just started working in a recruitment agency. Should I buy health insurance? What features should I look for in the plan?
This is the right time to buy a health insurance policy. It is advisable to buy early, as with age the premiums and the risk of diseases increase. It is not only easier to buy a health policy when you are young, but you also get the benefit of paying a lesser premium.
Before buying a policy, carefully assess your insurance needs based on factors, such as heredity, lifestyle, and pre-existing diseases, among others. It is very important that you disclose all relevant information to the insurance company at the proposal stage, so that there are no issues later in the case of a claim. The choice of the right insurance product ensures that you are covered for large medical costs arising out of major medical procedures. Most of the health insurance policies today cover critical illnesses, such as cancer, kidney failure, myocardial infarction, stroke, and paralysis, just to name a few. Select an insurer who focuses on hassle-free policy issuance and claim settlement. If the insurer has an in- house claim settlement service, it adds to the features of the policy, since the claim process becomes more transparent and efficient.
I was advised to buy a comprehensive motor policy. However, I want to buy only the third party cover as own damage covers are getting expensive by the day. What would you advise?
Motor Third Party coverage, mandatory by law, shall protect you against any financial obligation arising out of loss or damage to third parties —like injury to or death of any third party, damage to third party property due to accident, etc. However, the risk of damage to the vehicle itself is not covered in it.
Opting for motor comprehensive policy is always recommended as it covers the risk of loss due to accidental damage to the vehicle as well as third-party coverage. Typically, motor comprehensive policy covers losses occurring due to accidental damages, fire, explosion, burglary or theft, natural calamities (like earthquakes and floods) and terrorist activities, among others.
Is there any difference between rates of travel insurance plans bought through a tie-up with the airline/travel portal as against buying it separately directly from the website?
The rates for travel insurance plans will be different in a tie-up compared to the website, as the products differ in terms of their coverage. When a product is specially designed for an airline or travel portal, customised rates are provided as part of the group policy being offered to the airline or the travel portal. On the other hand, an insurance company's website offers standardised pre-defined products with standard prices for every online visitor.
The writer is MD & CEO, ICICI Lombard General Insurance Company. Views expressed are his own.
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