Friday, Oct 18 2024
Source/Contribution by : NJ Publications

Comprehensive Car Insurance: A Guide to Protecting Your Investment

Introduction

Comprehensive car insurance is a crucial component of responsible vehicle ownership, providing comprehensive protection against a wide range of risks beyond accidents. Let's dive into the key features, benefits, and factors that influence premiums, so you can make an informed choice and drive with confidence.

Comprehensive car insurance typically includes:

• Natural Disasters: Protection against damage from events such as earthquakes, floods, and cyclones.
• Theft and Vandalism: Coverage for vehicle loss or damage due to theft or vandalism.
• Collision with Animals: Coverage for damage if your vehicle hits an animal.
• Third-Party Liability: Covers damages to others' property or injuries caused by your vehicle.
• Fire: Protection against damage from fire.
• Riots and Strikes: Coverage for damage caused during civil unrest.

Benefits

Beyond these core coverages, comprehensive car insurance often offers:

• Return to Invoice: Ensures you receive the full purchase price in case of total loss, regardless of depreciation. This is particularly beneficial for newer or high-value vehicles. Usually, this add-on is provided upto vehicle age 3 years. However, this may change depending on the insurance company, claim experience and vehicle make/model.
• Zero Depreciation: Eliminates depreciation charges for repairs or replacement parts. This can significantly reduce out-of-pocket expenses, especially for older vehicles. Usually, this add-on is provided upto vehicle age 5 years. However, this may change depending on the insurance company, claim experience and vehicle make/model.
• Engine Protect: Covers damage to your vehicle's engine due to accidental water ingress or oil leakage. This is essential for protecting against costly engine repairs, which can be particularly expensive for newer or high-performance vehicles. Usually, this add-on is provided upto vehicle age 5 years. However, this may change depending on the insurance company, claim experience and vehicle make/model.
• Personal Accident Cover: Insurance for the driver and passengers in case of accidental injury or death.
• Emergency Assistance: Services like towing, battery jump-starts, and tire changes.

Factors Affecting Premiums

Apart from vehicle registration zone, several other factors influence your premium:

• Vehicle Model and Value: Newer, more expensive vehicles generally have higher premiums due to their greater value and potential for higher repair costs.
• Driving History: A clean driving record can lead to lower premiums, as it indicates a safer driver. However, a history of accidents may result in higher premiums.

Choosing the Right Comprehensive Car Insurance

When selecting a policy, consider:

• Coverage Limits: Ensure the limits are adequate for your needs. Factor in the value of your vehicle and your driving habits.
• Network Garages: Check for a wide network of garages for convenient repairs and cashless settlements. A larger network can provide more flexibility and convenience in case of a claim.
• Claim Settlement Process: Understand the insurer's procedures for filing and processing claims. Select insurers with prompt and efficient claim settlements.
• Customer Service: Choose an insurer with good customer service. A responsive and helpful insurer can make the claims process smoother and less stressful.
• Policy Exclusions: Be aware of any specific exclusions that might limit coverage. Some policies may have exclusions for certain types of damage or driving conditions.

Conclusion

Comprehensive car insurance is a valuable investment that provides essential protection for your vehicle. By carefully considering the factors discussed above, you can tailor your policy to meet your specific needs and ensure you are adequately protected against various risks. Remember, choosing the right comprehensive car insurance policy can provide you with peace of mind and financial security on the road.

Friday, Sept 27 2024
Source/Contribution by : NJ Publications

Season of Monsoon, Mosquitoes & Medical Insurance

The monsoon season brings beauty and relief from the heat, it brings a welcome change from the hot summer, but it also increases the risk of various weather related illnesses. Common problems include respiratory issues, waterborne diseases, and vector-borne diseases like dengue and malaria.

Due to the corona pandemic, people have become more aware about health, hygiene, diseases and viral infections. Such health emergencies give us a stark reminder on the importance of both health and healthcare infrastructure.

Why Health Insurance is Important During Monsoon

There are many reasons why health insurance is undoubtedly crucial during the rainy season. Here are a few:

Increased Risk of Illness: The damp and humid conditions during monsoon are ideal for the growth of disease-causing organisms. This leads to a rise in infections and the spread of viruses. Stagnant water can breed bacteria, leading to illnesses like diarrhea, typhoid, and cholera.

Mosquito-borne diseases: Mosquitoes thrive in damp conditions, increasing the risk of dengue, malaria, and chikungunya.Vector borne diseases are particularly challenging to control due to the complex interactions between the vectors, pathogens (virus/bacteria) and the environment. Climate change, urbanization and increased commute (travel) time have contributed to the spread of these diseases.

Accidents: Slippery roads can cause vehicle crashes and injuries. While car insurance covers vehicle damage, a health insurance plan protects you financially for medical needs arising from such accidents. Electrocution - Excessive rains and collateral flooding, open/damaged wires pose a serious risk of electrocution.

Expensive Treatment Costs: Medical treatment for covid-19, monsoon-related illnesses can be expensive, especially for vector-borne diseases. Sample Dengue Fever treatment costs – diagnosis, hospital room rent and doctor’s fee

On an average, when you add up all expenses (and based on the number of days you have to be hospitalized, and the severity of your condition and the medicines) treatment for dengue fever and malaria can cost up to Rs 30,000 to Rs 70,000 or more.

The above are only approximate average costs and can still differ based on the severity of your health condition, city you live in and the hospital you choose to get treated in.

No matter how much you try to escape these ailments or accidents, it is quite possible that you will fall prey to any during the monsoon season. A good health insurance plan can ease the burden of unexpected medical expenses. Here's how it helps:

Hospitalization Coverage: Protects you from high costs associated with medical treatment, including hospital accommodation, medical care, nursing, and medications.

Diagnostic Tests: Covers necessary tests like blood, stool samples, urine analysis, and imaging scans to diagnose illnesses.

Medication Expenses: Takes care of the pharmacy costs of prescribed medications for treatment.

Outpatient doctor consultations: Many times, you don’t need to get admitted for treatment of vector borne disease. However, there may be a few doctor consultations and related outpatient medical expenses. That can be covered under an OPD cover.

High quality healthcare: Quality healthcare is expensive and the last thing one wants to compromise on when they are ill is their health treatment! You can choose and go for quality healthcare without any worries!

Tax saving: Premium paid for health insurance policy is allowed for tax deduction upto Rs 25,000/*-.

Good Health / No Claim Bonus: If you don’t claim in your health insurance you still get benefits like no claim bonus, discount on renewal premium for maintaining good health.

So all in all Health Insurance is a win-win situation!

Summary

Having health insurance is crucial throughout the year, but it's especially important during monsoon. If there's a good time for getting a health insurance policy, then it is now! Don't limit an insurance policy to seasons as you never know how they might help you. You may need a health insurance policy anytime and anywhere. Don't wait for emergencies to get health insurance. It's a year-round necessity that safeguards your well-being and finances. By taking precautions and having the right insurance plan, you can enjoy the monsoon season without risking your health or finances. Carefully research health insurance plans or contact your insurance expert to understand various benefits and exclusions before choosing one.

Invest in Your Health, Get Insured

*Disclaimer: As per income tax act 1961. Source of treatment costs: Medifee

Friday, May 17 2024
Source/Contribution by : NJ Publications

"I am young, do regular exercises, fit & healthy. Do I need health insurance?" Most of us ponder upon this question when someone talks about health insurance. It may sound weird, but the right time to get a health insurance policy is as early as possible. Possibly, when you are young, healthy and fit.

Let us discuss why it is beneficial as well as necessary to get you & your family's health insured early in life.

Always good to have more options

At an early age you get a broader selection of basic & comprehensive health insurance plan options. After a certain age, due to weakening immunity & lifestyle related health issues, there are chances of getting some chronic diseases like Asthma, Bronchitis, Cancer, Diabetes, Hypertension, etc; This will limit the health insurance options available to you.

It means young customers not only get more plan options but also more sum insured options available at their selection. Young customers are offered higher sum insureds like 50 Lacs, 1 Crore or more at very affordable premiums. Whereas old age customers are usually not offered high sum insureds as the risk is higher than normal so is the premium.

Maternity Benefit

A lot of young couples can benefit from their health insurance policies if they buy health insurance early in life. You can ensure coverage for future family planning. With maternity including prenatal care, delivery, and postnatal care and related covers under health insurance, they can get access to better healthcare facilities with minimal or no additional waiting periods.

Beat the Waiting Periods

There are certain waiting periods in a health insurance policy. Only after serving those waiting periods, claims are eligible to be paid. Some of the waiting periods are:

- First 30 days - no claim is payable except accidental.

- Initial 2 years waiting period for specific diseases / treatments.

- Maternity waiting period which can be around 9 months to 3 years.

- Pre-existing diseases waiting period which can be around 3 to 4 years.

If you start early, these waiting periods can be easily served without the need to make a claim as the chances to fall ill are comparatively less.

Wellness Benefits

Preventive healthcare services such as annual health check-ups, vaccinations and screenings, can not only help you save money on your healthcare but also help in maintaining a good health over a long period of time. Buying health insurance at an early stage in your life helps in early detection of potential health issues and enabling timely interventions. It helps you to maintain good health and prevents the occurrence of serious illnesses.

If you maintain a healthy lifestyle, follow an exercise regime, do regular gym/yoga/swimming/walking/running etc; insurers give wellness points which can be used to get a discount on the premiums. The discount may vary from 5% to 50% on the renewal premiums depending on your plan.

Lower premiums

• Age is one of the major factors in calculating premium for health insurance. Usually, higher the age, higher are the premiums as an old age person is more prone to health risks.
• Existing ailment is another major factor in increasing premium for health insurance. If you have a health condition, you may have to pay more premiums for your health insurance policy.

Therefore, one of the most crucial benefits of getting a health policy early is to lock-in at lower premiums and save on premiums over a longer period of time.

Pre-policy medical tests

• As discussed above, usually with age comes the health issues, therefore, insurance companies ask prospective customers to undergo pre-policy medical tests. Specifically to those who are above a certain age (for eg; 45 years) or customers who have declared a health condition in the proposal form.
• But at an early age, the chances of you having to undergo a pre-policy medical check-up is very minimal. In such scenarios, insurers issue the policies instantly.

No Claim Bonus / Guaranteed Cumulative Bonus

Several insurers provide a No Claim Bonus (NCB) for not making a claim during the policy year. This bonus can range from 5% to 200% of the sum insured. NCB can be accumulated over consecutive claim-free years and it does not affect premiums.

Guaranteed Cumulative Bonus (GCB) works the same way as No Claim Bonus, only difference is that this benefit is available irrespective of claims. It means whether you make a claim or not, your risk cover increases every year.

For Eg: if your sum insured starts at Rs. 5 Lacs, it can increase to Rs. 20 Lacs, Rs. 25 Lacs or 50 Lacs over a few years and that too without any extra charges. At a younger age, you can benefit from this NCB/GCB to increase your sum insured since you are less likely to fall ill & make a claim in the first few policy years.

Summary

Health insurance is a vital element of the entire financial planning, wealth creation and family well-being. Getting yourself & your family's health insured at an early age brings multiple benefits, setting a strong financial plan for a healthy and protected future. Don't delay or wait for a health issue to arise to consider buying a health insurance policy. So, give a thought to the above-mentioned advantages and buy a health insurance plan as early as possible.

Health insurance in the new era is providing you various kinds of coverages, like OPD coverage, worldwide treatment, no claim bonus, etc.

Today we will discuss No Claim Bonus (NCB) and Guaranteed Cumulative Bonus (GCB) features in a health insurance plan. It is one of the most in-demand features extended on a health insurance policy. If you do not make a claim, then as a reward the insurance company increases the sum insured upon renewal. Basically, you benefit from leading a healthy life and not making any claims. This means that the sum insured increases based on the NCB accumulated without paying additional premium - that is you can get more than the base sum insured on the same policy premium. 

Earlier, NCB was given in the form of a discount on your renewal premium. Later, the insurance companies started giving a No Claim Bonus of about 5% or 10% on the sum insured. This has now increased to 50%, 100%, 200% or even 500% or more of the sum insured depending on different health plans and insurance companies. Some health insurance plans increase the coverage irrespective of claims - in the form of GCB.

It means that you can increase the coverage based on the No Claim Bonus or GCB accumulated without any extra charges/premium. In such cases, if your health insurance coverage at the start is Rs 5 Lacs, it can increase to Rs 20 Lacs, Rs 25 Lacs or 50 Lacs over a few years and that too without any extra charges.

Crucial Benefits of GCB or NCB 

There are numerous benefits of the No Claim Bonus element in health insurance. 

● Economical premium: 

No Claim Bonus lets you enhance the policy to fit all the necessities without worrying about paying the entire premium. This is because you can take advantage of the bonus as a discount on the premium. Thus, you get extensive coverage for any accidental or health emergencies. 

● Financial protection:

While not increasing the premium cost, the No Claim Bonus feature lets you increase the sum insured of your health policy. This helps you get better financial back-up when you need it the most. 

● Portability:

The No Claim Bonus coverage in health insurance is transferable to another insurer - subject to applicable terms & conditions. If you port to another insurance company, in that case, the additional coverage you gained under NCB all these years can be carried forward and will be applicable.

How does No Claim Bonus work in health insurance? 

The computation of cumulative bonus coverage under the NCB feature depends on the type of NCB offered by the health policy. 

Suppose Mr. Shah has a policy of Rs. 5 lacs and he did not make a claim during the policy year. While renewing the plan, the insurance company offers him an additional coverage of 20%. As a result, the total risk coverage of the policy becomes Rs. 6 lacs for the subsequent policy year. 

Suppose he does not make a claim even in the subsequent policy year. In this scenario, the risk coverage will increase to Rs. 7 lacs due to the accumulation of no claim bonus. However, a cumulative bonus usually comes with a limit of 100% or 200% may be even 500%. The additional coverage cannot exceed the said limit. So, for five or ten consecutive claim-free years, Mr. Shah will be eligible for a total risk coverage of up to Rs. 10 Lacs (Base Sum Insured Rs. 5 Lacs and 100% NCB Rs. 5 Lacs).

The policy schedule will state the NCB benefit offered under the policy. It also mentions the bonus amount accrued till now. It also varies from health insurance plan to plan and insurer to insurer. 

Guaranteed Cumulative Bonus works the same way as No Claim Bonus, only difference is that this benefit is available irrespective of claims. It means whether you make a claim or not, your risk cover increases every year.

How to take advantage of No Claim Bonus in health insurance? 

Many insurance companies now provide No Claim Bonus or guaranteed cumulative bonus as an add-on cover. 

You can take this add-on by paying a minor extra amount along with your health insurance premium while buying or renewing the health policy. It is recommended that you must understand the benefits/features, read the policy brochure & policy wordings carefully and also evaluate the add-ons based on your needs before buying a new health policy or add-on cover. 

Applicable to family floaters? 

NCB is available in both an Individual health plan and a family floater. Under the family floater plans, NCB is applicable provided that any insured member covered under the policy does not make a claim during the policy year. 

To summarize, the enhanced insurance coverage gained from a NCB/GCB feature also helps to get the best healthcare facilities without worrying about treatment costs. It is therefore highly advisable to contact an insurance expert or an insurance advisor to know more about the Guaranteed Cumulative Bonus or a NCB benefit before buying/renewing your health insurance policy.