By: Intesab Husain
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|Tuesday, 31-Dec-2013 11:36
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Car Insurance Use And Terms
Your car is one of the most prized possessions of your life. So it is important to make efforts towards securing it. And the best way to do it is “car insurance”. Before you take the car on roads, make sure it is insured.
Car insurance is certainly one of the most important documents that a car owner should possess. These days, one doesn't need to rush searching for agents to buy a new car insurance plan or renew the existing one.
These days, buying insurance on the internet is not a tough task at all. All you need to do is select a plan, and pay online. This saves a lot of time and money.
Now, let’s have a look at important terms of car insurance
IDV (Insured Declared Value)
It is actually the present value of a vehicle.
IDV is arrived at by adjusting the current manufacturer's listed selling price* of the vehicle with depreciation percentage listed in the table below: -
VEHICLE % OF DEPRECIATION
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%
For car and two wheeler models that are obsolete and aged over 5 years, the IDV will be the value agreed between Bajaj Allianz General Insurance (insurer) and you (insured).
*Manufacturer's listed Selling Price = (Cost Price + Local Duties) / Taxes, excluding Registration and Insurance.
Voluntary excess is your option to opt for bearing a certain amount of loss from every claim. For this option, you are eligible for a discount on Own Damage Premium (OD) as listed in the table below:
VOLUNTARY DEDUCTIBLE DISCOUNT
Rs.2500 20% on the OD Premium of the vehicle, subject to a maximum of Rs.750/-
Rs.5000 25% on the OD Premium of the vehicle, subject to a maximum of Rs.1500/-
Rs.7500 30% on the OD Premium of the vehicle, subject to a maximum of Rs.2000/-
Rs.15000 35% on the OD Premium of the vehicle, subject to a maximum of Rs.2500/-
NCB (No Claim Bonus)
NCB is the short form of No Claim Bonus; it is rewarded to the owner of the vehicle who is also the policy holder for No Claim / Claims in the previous policy year. It can be accumulated over a period of time
If you have NCB you can avail a discount ranging from 20-50% on the Own Damage Premium.
NCB rewards you for being a good driver and helps you save on your motor insurance. The chart here illustrates the discount on Own Damage Premium on account of no claims for the consecutive years.
20% discount on OD Premium No claim made or pending during the preceding full year of insurance
25% discount on OD Premium No claim made or pending during the preceding 2 consecutive years of insurance
35% discount on OD Premium No claim made or pending during the preceding 3 consecutive years of insurance
45% discount on OD Premium No claim made or pending during the preceding 4 consecutive years of insurance
50% discount on OD Premium No claim made or pending during the preceding 5 consecutive years of insurance
• NCB becomes Nil in case of a claim
• NCB follows the fortune of the customer and not the vehicle
• NCB can be transferred to the new vehicle in case of substitution of vehicle of the same class
• Validity - 90 days from the date of expiry of the policy
• NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased)
• NCB recovery can be done in case of a name transfer
Bajaj Allianz presents Life Insurance, Car Insurance, Travel Insurance, Health Insurance, Term Insurance and Home Insurance. Learn more about Ulips, Online Retirement Solutions, Pension Plans and Tax Saving Schemes.
|Friday, 3-Aug-2012 07:00
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Health Insurance – Top-up Covers.
Health Insurance Top-Up
Top-up covers are, to put it simply, additional health insurance covers that take care of medical expenses that go over your main policy cover.
How Do Top-up Covers Work?
Top-up covers work on the deductible sum insured concept. Deductible amount means the amount which you have to pay first so as to trigger the top-up cover. You can pay this deductible amount from your existing / base health insurance policy, or out of your own pocket.
Here’s an example to explain this better:
You have a health insurance cover with sum insured X lakh.
There is a claim in the policy for X+3 lakh.
The base policy provides cover up to X lakh and the sum insured gets exhausted.
The remaining 3 lakh of claim amount has to be paid.
The top-up cover takes care of this surplus amount and the complete claim of X+3 lakh can be taken care of without you paying a single penny out of your own pocket.
These are some reasons to purchase top-up cover:
Increase in hospitalization expenses
Increase in the frequency for serious hospitalizations
Additional cover over and above the existing cover
Reasonable premiums as compared to the covered sum insured
Waiting periods and exclusions are as per the base policy
The question would arise in your mind regarding the necessity of having a base policy to purchase a top-up cover? Though the base policy is a requirement, you can still buy a standalone top-up cover where you do not have any base policy. In this case, as suggested earlier, the deductible amount will have to be paid from your pocket and all the standard waiting periods and exclusions would apply for this as it would for a regular policy.
Standard waiting periods:
First 30 days waiting period.
Waiting periods for pre-existing diseases and joint replacement surgeries.
Pregnancy and child birth
Plastic or cosmetic surgery
External equipment or aid
Hospitalization for diagnostic purpose only
The exclusive lists of each can be read in the policy wordings.
It should be ascertained that when you purchase a top-up cover the deductible amount should match your base policy sum insured otherwise the difference would have to be borne by you
Why opt for a Top-up Cover?
The simplest reason for buying a top-up cover is that your health insurance policy may not always be sufficient when it comes to large medical expenses. Let us take the example of Aditi:
Aditi is a young corporate professional. She has health insurance for Rs.3 lakh. One day, she is diagnosed with a serious illness and is hospitalized for treatment. Within 5 months, her health insurance policy has been exhausted due to the treatment being very expensive. Luckily for Aditi, she had taken a top-up cover of Rs.10 lakh, with a deductible of Rs.3 lakh. So her medical bills continue to be paid without any trouble.
Top-up covers are also useful if you are a senior citizen, or approaching that age. As you grow older, getting an increase is the sum insured of your base policy will be difficult and expensive. The premium rates will be very high and there will be numerous medical tests to undergo as well. In this case, having a top-up cover means that you can stick with your base policy, while letting the top-up cover take care of any extra expenses that arise. To illustrate this better, let us see the example of Narayan and Irshad.
Irshad and Narayan joined the same company together when they were 25 years old and have been working there for 27 years. All these years, their employer had been providing health insurance for them, for Rs.3 lakh each. Now, at the age of 52, they want to change jobs and move to another company. Unfortunately, this company does not provide health insurance for its employees, and they both have to buy their own individual health policies. They both realise that as senior citizens with greater health risks, a Rs.3 lakh policy is no longer sufficient, so must go for a higher sum insured.
Narayan had remained content with the health insurance provided by the company. Now, when he goes to buy an individual policy, he finds out that there are numerous medical tests for him to take, and that when he finally takes insurance for Rs.10 lakh, the premium is extremely high.
Irshad, however, had taken the precaution of buying a top-up cover for Rs.15 lakh, to go with his employee health insurance. Now, he does not need to buy a policy with a higher sum insured. He simply takes a Rs.3 lakh policy. He knows that though a Rs.3 lakh cover alone is not sufficient, his top-up cover will take care of any extra expenses.
In the end, Irshad’s precaution of buying a top-up cover many years ago means that now he has to pay far less in premium amount, whereas Narayan must pay a very high premium while having less cover than Irshad.
So go for a top-up cover to secure yourself against health-related risks to your lifestyle and savings, and jiyo befikar!
To learn more about the Bajaj Allianz Extra Care Policy and how it can extend your health insurance, click here.
|Wednesday, 11-Jul-2012 12:26
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Tips for Choosing The Right Health Insurance Plan.
When it comes to health insurance, there’s no one-size-fits-all plan that you can rely on. Of the numerous plans in the market, you will find that each is unique in some way, with its own benefits and limits. This makes purchasing health insurance a difficult task where painstaking research is sometimes required, before you find the right plan for you.
Before you go plan-hunting, there are some questions you need to ask yourself:
. What is my financial ceiling?
. What do I have to cover? Am I responsible only for myself? Do I have dependents? Am I planning for retirement yet? Am I already retired?
. How often do I need to visit the doctor?
. How much premium can I afford?
. Do I have any pre-existing medical conditions?
. How comprehensive a plan do I want?
. Do I need regular dental and/or vision check-ups?
. Do I use many prescription medicines?
. How much preventive care do I want?
. Am I constantly exposed to hazards such as the possibility of an accident, exposure to toxins, a weak immune system, etc.?
. Am I at risk of any hereditary diseases?
Knowing the answer to these questions will help you recognise which slot you fall into, and what your health insurance needs are. It’ll narrow down your search and give you an estimate of how much you should be spending – and what benefits you ought to get for your money.
Once you know your healthcare requirements, it’s time to go shopping. Even with the field narrowed down, it’s easy to lose sight of what you need. Here are some tips you should keep in mind to ensure that you aren’t buying the wrong plan:
. Know how much the average cost of your healthcare should be. For example, it is generally accepted that a Rs.5 lakh cover is sufficient for a single adult.
. Individual covers are usually more comprehensive than family plans, and also cheaper on your wallet in the long run. Moreover, individual health insurance plan cover most, if not all your checkups, pre- and post-hospitalisation expenses, and other domiciliary costs, which are usually somewhat limited in an umbrella cover.
. Check your policy to see if it provides cover for atypical expenses, like maternity, vision, dental, etc. If it doesn’t, find out if such covers can be added to your policy, or if they will be covered after a certain number of years have elapsed.
. Never select a policy based on premium alone. Find out what your insurer’s claim settlement history is. If they have a reputation for speedy claim resolution and better payouts, go for it. If, however, the claim settlement takes ages and too much paperwork or other hassles, search for another provider.
. Assess your risk-taking ability before you choose to opt for a floater plan. Though these are comparatively cheaper than individual plans, and provide cover for your entire family, they also mean that you have to assume a higher amount of risk in exchange for a smaller premium.
. If you are employed and your employer pays for your insurance cover, it would be wise to get a separate cover privately, as well. The main reason being – though workplace insurance covers are usually very beneficial, they may be terminated when you leave your organisation. Today, most people are mobile when it comes to changing jobs, so you might not always have a cover when you’re transitioning from one job to the next.
. Consider getting additional covers, like critical illness cover, accident cover, hospital cash, surgical cover, etc. These can be added to your existing policy as riders, for an added sum to your premium.
Keep to the above list of considerations, and you should be able to find the right health insurance cover with little trouble!
==For more information on health insurance, Get in touch with Bajaj Allianz - Contact Us.==
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