General Insurance

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Insurance other than 'Life Insurance' falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

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Health Insurance

Health insurance covers cost of an insured individual's medical and surgical expenses. Subject to the terms of insurance coverage, either the insured pays costs out-of-pocket and is subsequently reimbursed or the insurance company reimburses costs directly.

What is Health Insurance?

Health insurance is an insurance product which covers medical and surgical expenses of an insured individual. It reimburses the expenses incurred due to illness or injury or pays the care provider of the insured individual directly.

Need for Health Insurance

Medicare or medical costs are rising year on year. As a matter of fact, inflation in medicare is higher than inflation in food and other articles. While inflation in food and clothing is in single digits, medicare costs usually escalate in double digits. For an individual who hasn’t saved that much money, arranging for funds at the eleventh hour can be a task. This is particularly daunting for seniors, given that most ailments strike at an advanced age.

One way to provide for health-related / medical emergencies is by taking health insurance. Health insurance offers considerable flexibility in terms of disease / ailment coverage. For instance, certain health insurance plans cover as many as 30 critical illnesses and over 80 surgical procedures. The insurance plan disburses the payment towards surgery/illness regardless of actual medical expenses. The policy continues even after the benefit payment on selected illnesses.

With health insurance, you are assured of a more secure future both health-wise and money-wise. This makes health insurance critical for individuals, especially if they are responsible for the financial well-being of the family.

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Motor Insurance

Motor insurance protects your vehicle against losses arising from unforeseen risks. It basically covers financial losses arising from accidents, theft and other natural calamities. Motor insurance is a contract for an automobile in which the insurance company agrees to pay for your financial loss resulting from a said specified event.

Why Motor Insurance

In India, nearly 4 lakh people meet with accidents every month. Fatalities in road accidents in India are moving up at a compounded annual rate of four per cent. Considering the high number and the poor state of roads, Motor insurance is a necessary requirement. By law, Motor Insurance is mandatory. Motor Insurance provides financial cover not only to you but also covers damages to third party (people travelling with you). Motor Insurance also protects you from losses arising from natural calamities like cyclone, earthquake etc.

Types of Motor Insurance
  1. Third Party Insurance

    This insurance is mandatory by law. It protects a policy holder against losses which arise due to bodily injury/death to a third party or any damage to property. Here third party includes people travelling with you or whom the insured person injures and claims damages at the time of accident. But this insurance does not protect you, your vehicle and co-passengers against losses which arise due to bodily injury/death.

  2. Comprehensive Insurance

    In addition to third party coverage, this policy covers you, your car and co-passengers against damages /losses arising from unforeseen calamities, hence it is prudent to purchase this policy.

FAQ's:
1. Who should buy Motor Insurance?

Both individual owners as well as corporate entities should buy Motor Insurance. All vehicles, be it for personal or commercial use should be insured.

2. Is Motor Insurance Mandatory?

Motor insurance is mandatory for all vehicles under the provision of Motor Vehicles Act 1988, be it for commercial or personal use. It is compulsory to have a valid Motor insurance policy before you can start driving your vehicle. Motor insurance comes with unique plans for four wheelers, two wheelers and commercial vehicles.

3. What are the benefits from Motor Insurance?

It is a financial safety net that can help you offset the cost of

  • Bodily injuries to yourself or others.
  • Lost wages due to injury.
  • Benefits to survivors when an accident results in death.
  • Lawsuits brought against you as the result of an accident.
  • Repairs made to your car due to damage caused in an accident.
4. What is the cover level of Motor Insurance?

The cover level of Motor insurance can be the insured party, the insured vehicle, third parties (car and people). The premium of the insurance is dependent on certain parameters like gender, age, vehicle classification, etc.

5. What does Motor Insurance not cover?

Motor Insurance does not cover loss due to wear and tear, breakdown, accidents due to drunken driving and war perils. The insurance also does not cover failure or breakage when the vehicle is used outside the geographical area.

6. What is IDV?

IDV is the short form of Insured declared value. It is the value of Sum Assured that can be taken on your vehicle. It is calculated on the depreciated value of your vehicle or on the showroom price of the vehicle depending on the Insurance carrier.

7. Why do premiums vary between different insurance companies?

Insurance companies work with different statistics and use different methods to calculate premiums. Some companies are specialized in certain areas or types and so are prepared to give discounts in those areas. This adds to the complexity as various companies yield varied prices.

8. What are the factors that determine the premium amount?
  • Make and Model of the Vehicle.
  • Year of Manufacture
  • Place of Registration
  • Current Showroom price of the vehicle
  • Whether Client is Individual or Corporate
  • The principal insurance amount and its subsequent premium also vary according to the price of the vehicle.
9. What is Third Party?

Third party would include all people other than the primary insured. They would include people travelling in the vehicle or pedestrians or people involved in the accident.

10. Which type of policy is better and why?

A comprehensive motor loan is better, as it also covers you against losses arising from theft, natural calamities, vandalism etc. This will have a deductable attached to the policy.

11. What is a deductable?

When you file a claim with the insurance company, you have to pay a specific amount as mentioned in the policy for the losses incurred. For example, if the deductable is 10% and you file a claim of 5000 rupees, you have to pay 500 rupees. Hence one has to choose the policy carefully depending on the deductable amount.

12. Are there any benefits for no claims?

Yes, there are benefits like ‘no claim’ discount. If you have a claim free period you can avail a discount on the premium when you renew your policy for the next period. There are other specific benefits that insurance companies provide like free maintenance etc??

Tips for buying Motor Insurance

Motor Insurance can be confusing for many people as there is plethora of Motor policies and is an arduous task to choose an Motor policy which you should really carry to protect yourself compared to various coverages available.

  1. Depending on the vehicle you have
  2. Claim settlement
  3. Customer service
  4. Discount & Deductable %
  5. IDV (Insured Declared value)

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Travel insurance Simplified

Just because travel can pose a few risks, we do not stop travelling. Instead, we identify and assess possible risks and manage them suitably. When travelling overseas whether for business or pleasure or both, make sure that you buy travel insurance to cover your risks. Make your business trips or vacations safe and memorable by buying travel insurance before commencement of travel.

Why Buy Travel Insurance

Travel Insurance offers insurance protection while you travel. Travel Insurance may be called by different names by insurance companies. It is important for you to check and understand whether the policy covers domestic travel or overseas travel or both. Travel Insurance protects you and/or family against travel related accidents, unexpected medical expenditure during travel, losses such as baggage loss, loss of passport etc and interruption or delays in flights or delayed arrival of baggage etc.

What Travel Insurance to Buy

The Scope of Cover and Benefits offered by different insurance companies would vary. You must shop around to ensure that you purchase the best travel insurance policy that you need. The following are covers that are generally provided under Travel Insurance- though the combination may vary. The list, however, is not exhaustive.

  • Medical Expenses with or without cashless facility (most travel insurance products offer cashless facility)
  • Personal Accident
  • Loss of Baggage
  • Delay in Baggage arrival
  • Loss of Passport
  • Travel Delay
  • Repatriation
  • Transportation of dead body etc.

The Sum Insured offered may vary and so would the premium rates, which would depend on the country in question, apart from other factors such as Age, Period Of Travel etc.

You must go through the exclusion clauses very thoroughly. Ask your insurer and/or agent or broker for clarifications wherever you have a doubt. In general, the following are not covered in an International travel insurance policy:

  • Pre-existing diseases
  • War Risks
  • Suicide and Insanity
  • Hazardous Sports

There could be some exclusions relating to personal effects.

It is also very important for you to understand what to do in case a claim situation arises abroad. Generally, international travel insurance policies provide hotline numbers where intimation of claim/s should be given. You must also notify the concerned authorities involved e,g, local police, embassy, transportation company etc, as applicable. The insurer should also be notified. Normally, every International travel insurance policy docket will also contain a claim form as you will be away in a distant place and may not be in a position to obtain a claim form immediately.

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Term Insurance

Term insurance, a type of life insurance, provides coverage for a certain period of time or years. If the insured dies over the policy tenure a death benefit (or sum assured) is paid out. No payout is made if the insured survives the tenure.

The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.

There are two ways the individual can take life insurance:

  1. By opting for a pure life cover, also known as term insurance
  2. By taking life cover with a savings component built-in,also called endowment insurance

Why term insurance is better

Term plans provide pure life cover. This means there is no savings / profits component. They are basic plans which make life insurance more affordable vis-à-vis other options. It is possible for the policyholder to opt for a larger life cover at a lower premium when compared to a similar endowment plan.

Some of the key features that make term plans indispensable include

  1. Larger life cover

    Since term life insurance plans are more affordable it is possible for an individual to opt for a higher life cover for the same premium as an endowment plan. For e.g. a 30-year old can get a term plan with a cover of Rs 1 crore for a 30-year term by paying a premium .

    The Rs 1 crore endowment plan will most likely out of bounds for most 30-year olds. However, taking a term plan for a similar cover is relatively more feasible.

  2. Riders

    The policyholder can attach riders to the term plan, thereby enhancing the utility of the policy. So by opting for a critical illness rider or a critical illness plan, for instance, he is entitled to receive the sum assured on being diagnosed with the critical illness. This is in addition to the death benefit of an equal amount on death over the term of the policy. There are other riders to choose from like – loss of employment cover,disability cover, waiver of premium cover, among others. The policyholder should select riders based on his specific needs to make the life cover more suitable and meaningful.

  3. Enhanced cover

    Certain insurance companies offer the flexibility to enhance the life cover during critical stages of the policyholder’s life. For instance, the policyholdermay be permitted to enhance life cover by 50% at the time of marriage and by 25% at the time of turning a parent. This makes it possible for him to start with a modest cover and then enhanceit as responsibilities increase as also the ability to pay higher premium.

  4. Innovative features

    While insurance companies have been quick to innovate in general, they have been most innovative with regards term plans. For instance, companies have been quick and proactive in cutting premium rates even offering extra discounts to certain categories like non-smokers, for instance. Buying term plans is now quite convenient thanks to the internet. It is possible for a healthy individual, as defined by the insurer, to buy a term plan over the internet without taking a medical test.

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Corporate Insurance

Our corporate Insurance Advisory, is capable to include end-to-end Insurance Solutions and Services to corporates. We cater to the Corporate Insurance and Risk Management needs for Large Industrial Houses, Medium Scale Companies and SMEs.

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