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Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance, answers your questions
What is the difference between a hospital cash policy and a health insurance plan? Which should one opt for?
A health insurance plan is an indemnity policy that pays the medical expenses incurred by the insured in case of hospitalisation subject to policy terms. These include treatment related expenses, cost of medicines, room rent and so on. It can also provide cover for expenses incurred during pre- and post-hospitalisation stages. However, it does not take into account miscellaneous expenses like food, travel costs of family members and other incidental charges.
A hospital cash policy, on the other hand, is designed to pay a fixed benefit to the policyholder based on, limited to the number of days of hospitalisation and does not consider the actual expenses incurred on the treatment.
The two policies are thus, mutually exclusive and complement each other. You should choose the hospital cash policy as an add-on to your regular health insurance plan or purchase both the policies separately.
I recently learnt that a foreign travel insurance plan is largely a medical insurance. Is that true even for domestic travel plans? Also, are policies for travel abroad mostly sold only to students?
Foreign travel insurance provides cover for medical expenses, as well as offering a host of non-medical benefits. These include cover for delay or loss of checked-in baggage, trip delay and flight cancellation, missed flight connection and so on. A domestic travel insurance plan offers benefits similar to its overseas version.
While there are specific plans designed for students, foreign travel insurance policies are not restricted to this segment. Insurance companies offer a wide range of travel insurance policies for customers on leisure trips, visiting family and friends abroad, official visits for conferences and meetings.
I own a two-wheeler, an LML Vespa. The vehicle is 25 years old but in good condition and is serviced regularly. It wasn't insured all this while. Can I still get it insured?
Any motor vehicle, irrespective of its age, is supposed to be insured at least under a third-party motor insurance policy by law, unless in a non-roadworthy condition. You can avail of the mandatory third-party cover (which protects you against third-party liability) or a comprehensive policy. The comprehensive plan will additionally cover the expenses incurred on the repair of your two-wheeler in case of an accident.
Since your vehicle has not been insured for a long duration, the insurance company would need to inspect the two-wheeler to check its condition and roadworthiness.
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