When I renewed my family floater health policy, the premium increased, though there was no claim, and the sum assured remained the same. Why didn't I get a higher sum assured, since there was no claim?
The premium generally increases on two counts. Either one of the members has entered into a new age band-which commands a higher premium-or the company has enhanced rates across the product. It is not necessary that all policies offer a cumulative bonus (increase in sum insured) in the event of no claim. You can ask the company to provide a higher sum insured. Whether they grant it would depend on their underwriting guidelines and they may charge additional premium for it.
I am buying a second-hand two-wheeler for my daughter. Would you advise buying a comprehensive policy or a third-party policy?
Though the comprehensive policy is not compulsory, we still recommend it.
The policy provides additional benefits for perils like accidental damages and theft, which are equally likely for a second hand vehicle compared to a new one, and can be covered for a small additional premium.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Rakesh Jain, Chief Executive Officer of Reliance General Insurance, answers your questions
