Health cover to premium issues: Expert answers to your insurance queries

I’m a 32-year-old expectant mother. My employer offers a health insurance cover of Rs 25,000. Should I go for a new policy or explore riders with the existing insurer?

Based on current medical costs, your existing health insurance cover is inadequate. You should immediately buy a basic insurance cover of at least Rs 5 lakh. It will provide for hospitalisation-related expenses that you could incur in the future. It will also cover you when you change employers and don’t have a cover in the transition period. Besides, you may look at riders like hospital cash benefit or critical care insurance.

I got married recently. My spouse and I have individual health insurance plans. Is there any way of combining the two policies to optimise the benefits? 

Congratulations on your marriage. It’s a significant life event. Your spouse and you need to look at building your financial well-being afresh. Yes, you have the option to port the policy. One of you can port your plan to the spouse’s insurer. Alternatively, both of you can port policies to another insurer. Speak to your insurer to check how the combining can be achieved.

What are the factors that determine car insurance premium? Can the premium change on renewal if a car is well-maintained and serviced regularly?

The key factors for determining your car’s premium include make, model, variant, cubic capacity, vehicle age, city of registration of the vehicle and past claim history, among others.

If you have driven safely and have not registered any claim during the year, your insurance company will offer a no-claims bonus (NCB). Some insurers may also provide added advantages like ‘multiple coverages allowed in claim-free renewals’.

I am a housewife and have purchased a used two-wheeler recently. The previous owner had a policy with an NCB from his insurance provider. Will the NCB get transferred automatically to me along with the plan?

The entitlement of NCB follows the fortune of the original insured (person) and not the vehicle or the policy. The NCB becomes zero for the new insured. You will not be able to avail the benefits of NCB received by the previous owner of the two-wheeler.

Does auto insurance come with a health insurance cover? Say, I am driving my car and meet with an accident. Will my treatment be covered? If yes, is this cover only for the policy owner or for the car driver as well?

In a standard private car policy, generally, no health coverage is provided. However, some insurers may offer an add-on cover called passenger assist, which is a comprehensive add-on cover to secure the passengers (including the insured) travelling in the vehicle. The add-on cover generally provides for medical expenses and medical transport allowance along with daily hospital cash benefit up to the defined limit.

I am a resident of Mumbai. My residence is close to the sea, leading to frequent wear and tear in my car due to corrosion. What type of insurance policy should I buy that can provide a cover against depreciation?

In a comprehensive private car insurance policy, regular wear and tear-related losses (as mentioned by you on account of corrosion) are not covered. Only repairs and replacement on account of an accident are covered. You can avail of a nil or zero depreciation cover add-on with your main policy. This add-on will cover the depreciation amount deducted on the value of the parts replaced as a result of an admissible claim under the Own Damage section of the plan.
The writer is CEO and whole-time director, Liberty General Insurance. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in