FAQs

Insurance is a contract represented by a policy in which an individual (you) or an entity (business) receives financial compensation or reimbursement against a loss.

This is the amount of money the insurance company is going to charge you for taking up your risk.

This is a contract issued by the insurer to the insured specifying the terms and conditions of the insurance cover.

An insurer is the insurance company that takes up a risk whereas an insured is a person or organization covered against the risk.

An agency/agent is a person who represents an insurance company and sells insurance policies on its behalf.

NO. You only need to pay the premium through the agent who in turn remits the premium to the insurance company.

Failure to pay insurance premiums as stipulated under the contract is a breach of policy terms and conditions and may lead to termination of the contract by the insurer. If it is a life policy that has lasted for more than three years then it has acquired surrender value. You may claim for the surrender proceeds.

You must immediately report any loss or damage to the insurance company/agent and submit all the necessary documents requested. You are required to co-operate with the insurance company to facilitate the smooth handling of your claim.

Deductible or excess in insurance is an amount you need to pay before your insurer pays any expenses.  This is the amount that insured contributes towards settling their claim.

Yes. Claims do make a difference in the rating of your policy. The impact depends on the severity of the claim and if you were at fault.

There are two types of covers under motor. Comprehensive motor insurance policy covers damages to third-party and third-party property along with the policyholder’s vehicle. These include loss or damage by accident, fire, lightning, theft and riots & strike. Third party motor insurance policy covers damages to third-party liability i.e. bodily injury or death caused to a third party and damage to third party property while using your vehicle. Third party cover does NOT cover for repair of damage to your car.

Motor third-party is mandatory, but it’s advisable to take comprehensive cover insurance policy for peace of mind.

The premiums of a car are determined by several factors, but mostly the value of the car plays a major role, age of the car also plays a role and extra benefits like road rescue, excess protector that may come at an extra cost.

No. Insurance companies have network hospitals that are in their panels. Before getting medical insurance ensure that the network hospitals are within your vicinity.

There are some other significant elements that should be taken into account while buying a health/medical insurance policy.
(a) Adequate cover (b) List of Network hospitals (c) Waiting period for specific illnesses/condition    (d) Exclusions    (e) Insurer’s claim settlement ratio

It’s good that you are covered under a group health insurance policy provided by your employer. But generally, insurance covers provided by employers are of a lesser sum insured, which seems to be insufficient in case of any medical emergency. Most group insurance policies have co-payment and high deductibles in-build, due to which you may require to pay from your own pocket.

Another reason, why you should have a separate policy is, you cannot be working with the same company for whole life, and as soon as you leave the job, your previous employer may take back health benefits, and you might not get such benefits from your current employer. As a result of this, you’ll have to buy a fresh policy in which you’ll lose pre-existing benefits that you have accrued over the period.

By buying a separate health policy, you can choose cover amount and other benefits as per your medical requirement.