Readers’ Corner

I have had a health policy of ~500,000 for the last four years. I want to increase my coverage to ~1.5 million. Should I upgrade the existing plan or buy a top-up cover on it?

Topping up your existing health policy is always a good option as it provides comprehensive benefits with significant savings on the premium.

I am in the process of upgrading my car. If I stick to my earlier insurer, will there be any benefit? Can I carry forward the no-claim bonus (NCB) to a new car?

Yes, you can carry forward the existing NCB to a new car, subject to no claim in the existing policy. You will need to obtain an NCB reserving/retention letter from the current insurer. Sticking to your current insurer may result in additional discount, apart from the NCB which is being allowed based on your past track record. However, the discount generally varies from one insurer to another.

I am planning to shift my car from Kolkata to Mumbai. Will my motor insurance be valid? Will there be a change in the premium and coverage benefits?

Yes, your motor insurance will be valid anywhere in India. Renewal premium may vary, depending on the plying location of the vehicle (where your car is driven). Risk-based pricing is applicable based on city and area. For example, the probability of accident in the new city could be much lower than your current city, and hence, more discount at the time of renewal may be offered when the vehicle plies in the new city.

I am planning to shift to Chennai. Considering that the city is prone to flooding, should I look at any specific cover or add-ons for my car?

Yes, it is advisable to opt for specific add-on covers like roadside assistance and engine safe for your car. Under roadside assistance, your insurer will provide multiple services in case of a breakdown. Some of the common services are vehicle towing to the nearest garage in case of a major breakdown, repair services for minor breakdowns, assistance in case of lockout/lost keys, change of flat tyre, arrangement of emergency fuel in case your vehicle runs out of fuel, alternative transport assistance to the nearest safe location for the passengers of the vehicle, etc. Engine safe add-on provides coverage to the engine of the insured vehicle including its gearbox, transmission or differential assembly, provided the loss or damage is due to ingress of water into the engine (which happens in the case of floods) and leakage of lubricating oil from the engine/assembly arising out of accidental damage. Both of these covers can ensure better protection to your car in a flood-prone city. It is therefore recommended that you buy both these covers.

My friend was driving my car when it met with an accident. He has a valid driving licence. Will my insurance policy pay for it?

If your friend has a valid driving licence, then the same will be considered, and your claim will be admissible subject to the fact that other terms and conditions are met.

I am 33 and covered under my employer's health insurance of ~200,000. I also have an individual insurance of ~300,000. If I buy a top-up cover, should I keep the deductible as the sum of both my policies, that is, ~500,000, or only my individual plan that has a sum assured of ~300,000? How much top-up should I buy?

Technically, you may go ahead with the deductible of the sum of both policies, that is, ~500,000. However, this is advisable only on a temporary basis. Your employer’s health insurance policy will cover you until you are an employee of the company. Thus, for the long run, it is advisable to select deductible amount equivalent to individual health policy sum insured, which is ~300,000 in your case. At your age, you may buy a top-up policy with ~1 million sum insured which will take your total medical insurance cover to ~1.5 million.