How to Pick the Right Credit Card

How to Pick the Right Credit Card

How to Pick the Right Credit Card

Credit cards are super useful in India, giving you an easy way to pay for things, flexibility, and some cool perks. But with so many credit cards out there, it’s hard to pick the right one for you. This guide will help you choose the best credit card in India, considering what you need and what’s smart for your wallet.

Subas Tiwari

Why Credit Cards are Big in India

In India, people love credit cards. They used to be fancy, but now they’re smart financial tools. Credit cards let you buy stuff, pay bills, and get money when you need it. Plus, they give you rewards, cashback, and discounts – what’s not to love?

Why Picking the Right Card is Key

Choosing the right credit card is a big deal because it affects your money big time. A good credit card can save you cash, protect you when things go wrong, and build your credit score. But a bad choice means you pay extra fees and get stressed out.

India’s credit card world is a big place, and there’s no one-size-fits-all answer. The best credit card for you depends on your needs, money goals, and how you spend. Let’s break it down and make the right choice.

Understand Your Money Goals and Spending Habits

First, know your financial story. What do you want from a credit card? Here are some common goals:

  • Building Credit: If you’re new to credit or need a better credit score, go for a card that helps with that.
  • Earning Rewards: If you want freebies like cashback, rewards points, or air miles, go for a card with a sweet rewards program.
  • Managing Expenses: If you’re using a credit card for everyday stuff, get one with low interest or a grace period.
  • Travel and Lifestyle: If you’re a globetrotter or want cool stuff like airport lounge access, look into travel or lifestyle credit cards.
  • Building or Fixing Credit: If your credit history isn’t great, try secured or credit-builder cards. They’re designed for folks like you.

Think about your spending habits, too

  • Categories: What do you spend most on? Groceries, eating out, travel, shopping, fuel, or fun stuff?
  • How much and how often: Do you use your credit card a lot or just now and then? Do you pay the full bill every month?
  • Your budget: What’s your monthly budget, and can you stick to it with a credit card?

Know Your Card Needs

Now that you’re clear on your goals and spending style, it’s time to nail down your credit card needs. Here are some scenarios:

Rewards Lover: If you want rewards, go for cards that give the most in the categories you spend most on. For instance, if you love eating out, find a card with dining rewards.

Interest Saver: If you want to avoid high interest, find cards with low Annual Percentage Rates (APR) and easy interest rules.

Frequent Flyer: If you travel a lot or like VIP stuff, prioritize travel cards that offer air miles, hotel deals, and travel insurance. They often come with neat perks like airport lounge access.

Credit Builder: If you’re building or fixing your credit, look into secured or credit-builder cards. They’re perfect for people with a slim or damaged credit history.

Knowing your goals and spending habits is the first step in finding the right credit card. Armed with this info, you can compare your options and pick smartly.

Get the Lowdown on Your Credit Score

Your credit score is like your financial report card. It shows lenders how responsible you are with money. In India, credit scores come from folks like CIBIL, Experian, Equifax, and CRIF High Mark. These scores depend on your credit history, like your accounts, how you repay debts, and what you owe.

Before you apply for a credit card, you got to know your credit score. Here’s how:

  • Online Credit Bureaus: Check out websites like CIBIL, Experian, Equifax, or CRIF High Mark. They let you request your score by filling out some personal info.
  • Credit Monitoring Services: Some banks and credit card companies offer credit monitoring services. These give you easy access to your score.
  • Credit Score Apps: Loads of apps let you check your score. They even toss in regular updates and credit monitoring.

Why Your Credit Score Matters

A good credit score is key for a bunch of money stuff. Here’s why:

  • Credit Approval: Lenders and credit card companies peek at your credit score to see if you’re good with money. Higher scores mean a better chance of getting credit cards and loans.
  • Lower Interest Rates: A top-notch score lands you credit cards and loans with low interest. This saves you lots of money in interest over time.
  • Higher Credit Limits: A sweet score can get you higher credit limits on your cards, giving you more financial elbow room.
  • Haggling Power: A solid credit score lets you bargain with lenders. You can ask for better rates and terms based on your financial track record.
  • Renting Homes: Landlords check your credit score to decide if they should rent you a place. A good score makes this easier.

Before you dive into the world of credit cards, take a sec to check your credit score. Knowing where you stand helps you figure out what cards you’ll qualify for and what terms to expect.

Compare Types of Credit Cards

Credit cards in India come in all shapes and sizes, each designed for specific needs and lifestyles. Understanding the types helps you narrow down your choices. Here’s a quick look at the common types:

  • Travel Credit Cards: These are for jet-setters. They give you air miles, hotel discounts, airport lounge access, and travel insurance. Perfect if you want to max out your rewards on trips.
  • Rewards Credit Cards: These cards hand out rewards like points, cashback, or discounts on different spending categories. You earn points for every rupee you spend. They’re great for everyday spending.
  • Lifestyle Credit Cards: If you want to spice up your life, go for these. They offer discounts and goodies for things like dining, shopping, entertainment, and fitness.
  • Fuel Credit Cards: Tailored for frequent fuel consumers, these options provide benefits such as fuel surcharge waivers or cashback on refuelling expenses—an ideal way to cut down on your fuel costs.
  • Secured Credit Cards: Geared towards individuals with limited or no credit history, these options require a deposit matching your credit limit. Using them wisely aids in establishing or rebuilding your credit score.
  • Business Credit Cards: Entrepreneurs and business owners, these are for you. They offer biz perks like expense tracking, employee cards, and business rewards. You can also get higher credit limits to meet your business needs.

Consider your lifestyle, spending habits, and personal preferences when evaluating credit card options. The ideal choice aligns with your goals and maximizes value. Certain cards even combine features from various types, offering a versatile mix of benefits to suit your needs.

Master the Art of Fees and Charges

Before you lock in your credit card choice, you got know about the different fees and charges. They can jack up the cost of using your card. Here’s what to watch out for:

  • Annual Fees: Every year, you’ll pay a fee for having and using the card. It can be zero (no annual fee) or a few grand. You might get a break in the first year, but it kicks in from year two. Think about whether the fee’s worth the card’s rewards.
  • Interest Rates: This is the cost of borrowing money with your card, and it’s called the Annual Percentage Rate (APR). It’s slapped on any balances you don’t pay off in full by the due date. Different card actions, like purchases, cash advances, or balance transfers, can have different rates.
  • Late Payment Fees: If you don’t at least pay the minimum amount by the due date, you’re in for a charge. It can be pretty hefty and mess up your credit score.
  • Cash Advance Fees: Grabbing cash from your credit card at an ATM or somewhere else means you pay a fee. It’s a chunk of the cash advance amount and comes with a higher interest rate.
  • Foreign Transaction Fees: Buying stuff in foreign currencies or outside India racks up foreign transaction fees. These can add up if you travel a lot or shop from overseas websites.

Know the details of these fees and charges when you’re thinking about your credit card. The right card for you has a fee setup that matches your spending and helps you keep costs down.

Find Extra Benefits

Beyond the basics of rewards and fees, credit cards throw in extra benefits and perks. They can make your card awesome. Depending on what you like and how you live, some extras might catch your eye more than others:

  • Travel Perks: Lots of cards, especially the travel ones, come with cool travel stuff. This could be air miles that you can turn into free flights or hotel discounts, airport lounge access for a comfy pre-flight experience, and travel insurance. Also, some cards give good exchange rates for international travel and spending.
  • Concierge Services: Fancy credit cards often offer concierge services. These pros help with things like travel plans, restaurant bookings, event tickets, and more. They save you time and up your lifestyle.
  • Purchase Protection: A few cards have your back when you’re unhappy with things you bought using the card. You can get stuff like extended warranties, price protection, and cover for damaged or stolen things.
  • EMI Conversion Options: Some cards let you turn big buys into Equated Monthly Instalments (EMIs) with lower interest rates. It’s a great way to spread out big expenses.
  • Balance Transfer Offers: If you’ve got high-interest credit card debt, some cards offer balance transfer options. This lets you move your debt to a new card with a lower interest rate for a set time.

When you’re looking at extra benefits, think about what fits with your lifestyle and spending habits. If you’re a frequent traveller, things like air miles and lounge access might be a hit. But if you make big buys, purchase protection and EMI options might be more your thing.

Check for Signup Bonuses and Introductory Offers

In India, credit cards often tempt newbies with juicy signup bonuses and introductory deals. These goodies give you a sweet reward or save you cash right off the bat. Here’s the deal:

Signup Bonuses: These are gifts for new cardholders who spend a certain amount in a set time. It can be cashback, rewards points, or vouchers for shopping or services. When you’re checking out signup bonuses:

  • Look at the requirements to score the bonus.
  • Check how much the bonus is worth and if it lines up with your spending.
  • Mind the time frame to hit the spending target.

Introductory APR Offers: Certain cards offer an attractive initial deal with low or 0% interest rates on purchases or balance transfers, typically spanning a few months to over a year. Consider how you can leverage these offers based on your financial goals. Be mindful of when the introductory period concludes and the subsequent regular APR. While signup bonuses and initial offers may be enticing, ensure the card’s long-term benefits and terms align with your needs. Opt for a card that provides ongoing value beyond the initial promotional period.

Dive into the Terms and Conditions

Before you say yes to a credit card, take a good look at the terms and conditions that come with it. This is the fine print that lays out the rules for using the card. You got know stuff like:

  • Interest Rates: Check out the interest rate terms, including the APR for different card actions. Understand how interest is calculated, and keep an eye out for variable interest rates that can change.
  • Minimum Payments: Know the rules for the minimum payment. This is the least amount you got pay each month to keep your card in good standing. But keep in mind that paying just the minimum will cost you more in interest and take longer to pay off your balance.
  • Grace Periods: Credit cards usually give you a grace period to pay your balance in full without racking up interest. Know how long the grace period is and when it starts and ends. Pay your balance in full within this period to dodge interest.
  • Rewards Redemption Rules: If you’re going for a rewards card, understand the rules for cashback or rewards points. Know how and where you can use your rewards, and check for any limits or expiration dates.
  • Restrictions and Limits: Search for any restrictions or limits imposed by the card issuer, such as blocking balance transfers, restricting cash advances, or adding fees for foreign transactions. Familiarizing yourself with these rules helps you avoid fees and potential complications.

Reading the terms and conditions is a big deal. It tells you what you can and can’t do with your card and what you’re on the hook for as a cardholder. It’s your ticket to a smooth credit card ride

Seek Advice and Read Reviews

When you’re almost ready to pick a credit card, it’s smart to ask for advice and check out reviews. Hearing from other folks who’ve used the card can give you the lowdown that you can’t get from the card’s official info.

  • Ask for Recommendations: Talk to friends, family, or co-workers who’ve got credit cards. They can share real-life experiences on the pros and cons of their cards. You might get the scoop on how they’ve used the card and if it’s been a win for them.
  • Read Credit Card Reviews: Plenty of financial websites and publications lay out credit card reviews and comparisons. These reviews give the lowdown on the card’s features, rewards, fees, and what users have to say. Look for reviews from sources you trust to grab unbiased info.

Nonetheless, remember, what works for one person might not be good for another. Use recommendations and reviews to get more information in your search for the perfect credit card.

Apply for the Card

So, you’ve done your research, weighed the options, and found the credit card that’s your perfect match. Now it’s time to actually apply for it. Here’s what to know about the application process:

How to Apply: In India, most credit card issuers let you apply online. Check out the issuer’s website to find the application form. The general steps look like this:

  • Pick Your Card: Choose the exact credit card you want based on your research.
  • Personal Info: Fill in the application form with your deets, like your name, address, birthdate, and contact info.
  • Docs: Gather up the paperwork they want, which might be ID proof, address proof, income proof, and recent passport-sized photos. The exact documents can vary from issuer to issuer.
  • Eligibility: Make sure you hit the eligibility targets the issuer sets, like age, income levels, and credit score.
  • Submit Your App: Go over your application to check it’s all right, and then click to send it in.
  • Docs You Might Need: Common documents include your passport, Aadhaar card, PAN card, voter ID, driver’s license (for ID), recent utility bills, a rental agreement, or your Aadhaar card (for address proof), salary slips, bank statements, or income tax returns (for income proof), and new passport-sized pics for ID checks. And even though it’s not a paper, your credit score might be looked at when you’re applying.
  • Credit Card Approval and Activation: After you throw in your application, the issuer will give it an once-over. It can take anywhere from a few days to a few weeks to get your answer. Once they give you the green light, you usually get an email, SMS, or snail mail notice.

You’ll also get your credit card in the post, along with a Personal Identification Number (PIN). You need to activate your card the way they tell you to. It could be a toll-free number to call, a website to visit, or a mobile app to use. Once that’s done, you’re all set to start swiping your card for buys and transactions as the card’s terms say.

Use Your Credit Wisely

Choosing the best credit card is the first step in your financial journey. But it’s just the start. You also use your credit responsibly to get the most out of your card and keep your finances on track. Here’s how:

Smart Credit Card Moves

  • Pay on Time: Always make at least the minimum payment on your credit card bill by the due date. That way, you dodge late payment fees and bad marks on your credit score.
  • Pay in Full: Whenever you can, pay your card balance in full every month. That way, you don’t pay interest on what you carry over.
  • Stay in Budget: Stick to your budget and don’t use your credit card for stuff you can’t pay off in the billing cycle.
  • Check Your Statements: Look over your credit card statements often. Make sure they’re right, there aren’t any mystery charges, and you’re not overspending.
  • Set up Alerts: Lots of credit card issuers let you get emails or texts with updates on due dates, low balances, and big transactions. Sign up for these to stay in the loop.

Budgeting and Tracking

  • Make a Budget: Set up a budget every month to cover your income and costs, like credit card payments. This helps you keep your finances in line.
  • Watch your Spending: Use tools like mobile apps or budgeting software to track your spending. They show where you can save.
  • Emergency Cash: Make an emergency cash stash to cover surprise costs. This way, you don’t need your credit card when stuff happens.

Paying On Time

  • Automatic Payments: Set up automatic payments for your credit card bill. It’s like insurance that you’ll never miss a due date.
  • Paying Options: Most credit cards let you pay through different ways, like online banking, mobile apps, or with a check. Pick the one that suits you best.

Credit Score Check

  • Credit Report Look: Check out your credit report often to make sure it’s right and there aren’t any signs of identity theft or fraud.
  • Credit Score Watch: Think about using credit score monitoring services or apps that give you regular score updates.

Avoid Credit Card Traps

  • High-Interest Debt: Be careful about piling up high-interest credit card debt. Avoid using your card for cash advances, and be aware of the interest rates.
  • Responsible Balance Transfers: If you use balance transfer offers, have a clear plan to pay off the moved balance within the deal time.
  • Skip Minimum Payments: Pay more than the minimum amount due when you can. It cuts interest charges and gets your balance down quicker.

By using your credit wisely, you get all the goodies from your credit card, keep a solid credit score, and dodge money problems. Finally, remember that choosing the right credit card is all about fitting your financial goals and lifestyle. It’s like a magic wand that makes your money life more awesome. So take your time, do your research, and choose a card that works best for you. When you use it right, your credit card is a big boost for your finances.

For personalized recommendations or to compare specific credit cards, you can visit the websites of major banks and credit card companies in India or consult a financial advisor.


Comprehensive Guide to Car Insurance: Claims, Terms, and Conditions

Comprehensive Guide to Car Insurance: Claims, Terms, and Conditions

Comprehensive Guide to Car Insurance: Claims, Terms, and Conditions

Many times, people are worried about thinking that they have insured the vehicle, but do not know if their insurance will provide protection in every situation? Please read this story for knowing the car insurance coverage.

Subas Tiwari

Know all about car insurance and its claim along with terms and conditions

In a natural disaster, violence, riots, etc., everyone is worried that the vehicle will not have to be repaid with its own money. Such concern can be overcome with On Damage (OD) and Add-on Cover Insurance. These insurance acts as the safety shield of the vehicle so that the owner of the vehicle remains carefree.

Important of these insurance

1st example: Ranjeet used to park his car with the help of a school wall built in front of the house. One night an earthquake struck the school wall on his car. The car suffered significant damage. It cost 15 thousand rupees to get the car right, which was raised by the insurance company. If Ranjeet did not have OD and add-on cover insurance, then the entire 15 thousand rupees would have gone from Ranjeet ‘s pocket.

2nd example: Reeta goes to office with her car. One day the parking lot filled with rain. His car was submerged in water. They started the car when the water came out but did not start. It was discovered that the engine was flooded. It cost about 20 thousand rupees to get the car right. Reeta had OD and add-on cover insurance. She did not have to spend even one rupee from her pocket.

Keep these things in mind

NCB: If you have taken any insurance for the car and have not made a claim, then you can avail the No Claim Bonus (NCB). Through the NCB, you can reduce the premium of vehicle insurance by 50%.

It is not necessary to take insurance from the dealer: If you are buying a new car, then the dealer says to give insurance. It is not necessary to take insurance from the dealer you are taking the vehicle from. First compare the insurance of other companies present in the market, which can give more and better facilities from the company.

Types of vehicle insurance

1- Third Party Insurance: Whether new or old, third-party insurance (TP) insurance is required. The vehicle owner is insuring, then the first party and the insuring company is the second party. At the same time, the third party is the one who suffers losses due to the insurer. If a person or someone’s property is damaged while driving, then it is compensated by third party insurance. Also, on the death of a person in the accident, third party insurance gets compensation. However, in such an accident, the damage caused to the vehicle or driver or other people in the car is not compensated by third party insurance. Keep in mind, the insurance claim is rejected if a minor or a person is driving under intoxication.

2- Personal Accident Insurance: If the driver is injured or dies in an accident while driving, the person gets compensation from personal accident insurance. It can also include all the passengers in the vehicle. In India, it is necessary for the owner / driver of a car with motor insurance and the person sitting together to take a personal accident insurance of minimum 15 lakhs. On the other hand, if someone is driving a minor and gets an accident, then insurance benefits are not available.

3- Own Damage Insurance: This (Own Damage) insurance is to compensate for the damage done to the vehicle. If there is a fire or breakage in the vehicle due to any reason or there is loss in any natural disaster like lightning, earthquake, land slide, rain, flood etc. Apart from this, if the vehicle is damaged in a riot, strike, terrorist attack or due to any other reason, the loss is compensated by On Damage (OD) Insurance. This is done by the insurance company.

4- Add-on cover insurance: There are many things in the car that are not covered in third party, personal accident or on damage insurance. For this, the owner of the vehicle can take add-on cover insurance. They do not necessarily have to be taken. These are optional. There is a separate premium for these. Like other insurance, they also have to be renewed every year. Some of the add-on covers are as follows:

Accessories Cover

If the vehicle has separate accessories like seat cover, music system, TV screen, head light, taillight etc. and if it gets stolen or damaged then it is compensated through the accessories cover.

Engine Protection: Do not overfill the engine of the vehicle due to flood or other reasons.

Roadside Assistance: This cover provides the facility of transporting the vehicle to the service centre and free of essential oil in case of damage to the vehicle or tire puncture on the way. If the vehicle is locked, the duplicate key is also sent by the executive of the insurance company from our home to us.

Zero Depreciation: The price of a vehicle decreases with time. If an accident causes damage to the vehicle and its parts are replaced, new parts are replaced or painted. Then the owner of the vehicle may have to pay up to 50% of the cost of new parts or paint when OD insurance is done. If there is zero depreciation add on cover, then nothing will have to be paid even if new parts are installed. Many companies offer this add on cover only on vehicles up to 5 years old.

Return to invoice: In this add-on cover, the entire cost of the vehicle is found when the vehicle is completely destroyed. The ex-showroom price of a car is Rs 5 lakh and after paying all taxes, the on-road costs Rs 6 lakh. Had bought that car three years ago, whose value is considered to be Rs 3 lakh today. If the same car is completely destroyed in a riot or natural disaster and does not even survive to be corrected or gets swept away in the water, then today the cost of the car will be 3 lakh rupees, ie on OD insurance. If the car owner has taken the return to invoice add on cover, then the full price of the car will be Rs 6 lakh.

How to Calculate Car Insurance Premium?

In India, car insurance premiums are calculated based on various factors that assess the risk associated with insuring your vehicle. While the exact formula for premium calculation may vary among insurance companies, the primary factors that influence car insurance premium calculation in India typically include:

  • Insured Declared Value (IDV):The IDV is the maximum amount the insurance company will pay in case of a total loss (e.g., due to theft or a severe accident) of your vehicle. It is calculated based on the current market value of your car. The higher the IDV, the higher your premium will be.
  • Type of Coverage:Car insurance in India offers two main types of coverage:
  • Third-Party Liability:This covers the financial liability towards third parties in case you cause injury or property damage while driving. Premiums for this type are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are based on the engine capacity of your vehicle.
  • Comprehensive: This includes third-party liability coverage and coverage for damage to your vehicle. Premiums for comprehensive coverage are influenced by a wider range of factors.
  • Cubic Capacity (CC) of the Vehicle:The engine’s cubic capacity, which is measured in cubic centimetres (CC), is a significant factor in premium calculation. Cars with larger engine capacities often have higher premiums due to their potentially higher speed and power.
  • Age of the Vehicle:Older vehicles typically have lower premiums because their market value is lower compared to newer cars.
  • Geographical Location:The location where you live and primarily use your car affects the premium. Areas with higher traffic density, accident rates, or theft rates may have higher premiums.
  • No Claim Bonus (NCB):If you have a history of not making claims, you can earn an NCB discount. This discount accumulates each claim-free year and can substantially reduce your premium.
  • Add-On Covers:Additional coverage options or add-ons, such as zero depreciation, engine protection, personal accident cover, and roadside assistance, can increase the premium. The selection of these add-ons also affects the premium.
  • Deductible:The deductible (also known as the “excess”) is the amount you agree to pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower your premium but increases your financial responsibility in case of a claim.

To calculate your car insurance premium in India, you can use online premium calculators provided by insurance companies on their websites. These calculators take into account the factors mentioned above and provide you with an estimated premium based on the information you input.

It’s important to compare quotes from multiple insurers to find the best coverage at a competitive price. Additionally, consider consulting with an insurance agent or broker who can provide personalized advice based on your specific circumstances and needs.

Premium Comparison for MARUTI WAGON R [DL1 | 2023 | Petrol | NCB 0%]

Company Name IDV Yearly Premium
Oriental Insurance 500000 15838
Kotak General Insurance 500000 16816
United India Insurance 500000 18336
Digit Insurance 500000 23208
National Insurance 476520 21395
Chola MS General Insurance 454860 17843
HDFC Ergo 428810 19033

Quotes taken from: on 15.09.2023.

Some rules have changed

Not necessarily Long Comprehensive Insurance: When TP Insurance and OD Insurance are taken together, it is called Comprehensive Insurance. Earlier, any customer was required to take 3 years of TP insurance while purchasing a four-wheeler and 5 years for a two-wheeler. It used to be quite expensive. Also, the customer had to buy OD insurance from the same insurance company from which TP Insurance was purchased. These rules have changed since 1 August 2020. Now, when purchasing a new car, the customer can take TP and OD insurance for 1 year only and after that it can be renewed by any company every year.

PUC required for insurance renewal: If you are going to get your insurance renewal, then a valid application control certificate (PUC) has to be kept with you. According to an IRDA order, if the PUC is not there, the insurance company can refuse to renew the insurance. Not only this, but accident cover can also be rejected if there is no PUC.

Taking car insurance in India is an essential step to protect yourself, your vehicle, and others on the road. Here are 20 tips to help you navigate the process of getting car insurance in India:

  1. Understand the Types of Coverage:Familiarize yourself with the various types of car insurance coverage available in India, including Third-party Liability and Comprehensive insurance.
  2. Evaluate Your Needs:Assess your specific insurance needs based on factors like your car’s age, value, and your budget.
  3. Compare Insurance Providers:Research and compare insurance companies, their reputation, customer service, and claim settlement record.
  4. Check for Discounts:Inquire about available discounts for factors like a good driving record, safety features in your car, and anti-theft devices.
  5. Online Research:Use online comparison tools and websites to compare policies and premiums.
  6. Check the IDV:Understand the Insured Declared Value (IDV) of your car, which is the maximum amount the insurer will pay in case of theft or a total loss.
  7. No Claim Bonus (NCB):Inquire about the No Claim Bonus, which offers a discount on premiums for every claim-free year.
  8. Add-On Coverage:Consider add-on covers like Zero Depreciation, Engine Protection, and Roadside Assistance for enhanced coverage.
  9. Policy Exclusions:Thoroughly read the policy document to understand what is not covered, such as consequential damages or mechanical breakdowns.
  10. Research the Claim Process:Know the steps involved in filing a claim and the documents required.
  11. Check Network Garages:Ensure that the insurance company has a network of garages in your area for cashless claim settlements.
  12. Claim Settlement Ratio: Review the insurance company’s claim settlement ratio to gauge its reliability.
  13. Policy Renewal:Stay on top of your policy renewal dates to avoid a lapse in coverage.
  14. Update Information:Inform your insurance provider about any changes in your personal information, address, or modifications to your vehicle.
  15. Maintain a Good Driving Record:Safe driving can lead to lower premiums and a higher NCB.
  16. Install Safety Features:Install safety devices in your car, such as anti-theft alarms, to reduce the risk of theft and potentially lower premiums.
  17. Document Everything:Keep records of all communication with the insurance company, including emails, phone calls, and documents submitted.
  18. Read Reviews:Read customer reviews and testimonials to gauge the insurance company’s customer service quality.
  19. Ask for Recommendations:Seek recommendations from friends, family, or acquaintances who have experience with car insurance in India.
  20. Understand the Policy’s Terms and Conditions:Carefully review the terms and conditions of your policy to avoid any surprises during a claim.

Remember that car insurance is not just a legal requirement but also provides financial protection in case of accidents, theft, or damage to your vehicle. Taking the time to choose the right policy and insurance provider can save you money and ensure peace of mind on the road.

How to claim Car Insurance?

Claiming car insurance in India involves a specific process that you should follow in the event of an accident, theft, or damage to your vehicle. Here are the general steps to file a car insurance claim in India:

  1. Contact the Police (If Applicable):In case of an accident, especially one involving third parties, contact the police immediately and file a First Information Report (FIR). This is essential for insurance claims.
  2. Inform Your Insurance Company:Contact your insurance company as soon as possible after the incident. You can typically find their contact information on your insurance policy documents or their website. Provide them with all the necessary details about the incident, including the date, time, location, and a description of what happened.
  3. Document the Incident:Take photographs of the accident scene, any damage to your vehicle, and the other party’s vehicle, if applicable. This visual evidence can be crucial for your claim.
  4. Fill Out the Claim Form:Your insurance company will provide you with a claim form to fill out. Complete this form accurately and submit it along with any other required documents.
  5. Provide Necessary Documents:Your insurer may ask for various documents to process your claim. These documents may include:
  • Copy of your insurance policy
  • Copy of your driving license
  • FIR (if applicable)
  • Vehicle registration certificate (RC)
  • Estimate for repairs from an authorized garage
  • Bills and receipts for repairs
  • Police report (if applicable)
  • Any other documents requested by the insurer
  1. Claim Survey:After you file a claim, an insurance surveyor may visit the accident site or the garage where your car is being repaired to assess the damage and verify the claim. Cooperate with the surveyor and provide any information or documentation they request.
  2. Cashless or Reimbursement Claim:If you are using a network garage, you may have the option of a cashless claim settlement, where the insurance company directly pays the garage for the repairs. If you choose a non-network garage, you’ll need to pay for the repairs initially and then claim reimbursement from your insurer.
  3. Follow-Up:Stay in touch with your insurance company for updates on your claim’s progress. Keep records of all communication, including names and contact details of the people you speak with.
  4. Settlement:Once the claim is approved and all necessary documentation is verified, your insurer will settle the claim. The settlement amount will depend on factors such as your policy coverage, the extent of damage, and your deductible (if applicable).
  5. Claim Closure:After the claim is settled, your insurance company will close the claim, and you can proceed with the necessary repairs to your vehicle.

Remember that it’s essential to report any incident to your insurance company promptly and provide accurate information and documentation. Failure to do so may result in claim delays or denials. Additionally, be aware of your policy’s terms and conditions, including deductibles and coverage limits, to understand what expenses may or may not be covered by your car insurance in India.

2-Wheeler (bike) Insurance Policy

2-Wheeler (bike) Insurance Policy

2-Wheeler (bike) Insurance Policy

In India, motorcycles and scooters, which are two-wheeled vehicles, enjoy widespread popularity as a cost-effective and convenient means of transportation. Nevertheless, operating a two-wheeler entails inherent hazards, such as accidents, theft, and physical harm. In order to safeguard against these perils and adhere to legal mandates, acquiring a two-wheeler insurance policy is of utmost importance. This article delves into the various aspects of 2-wheeler insurance policies in India, including their types, coverage options, benefits, and regulatory requirements.

                                                                                                                                                         Subas Tiwari

Types of bike insurance

Bike insurance in India comprises two main categories: Third Party Liability Insurance and Own Damage Insurance. Third Party Liability Insurance provides coverage when your bike causes damage to another vehicle. On the other hand, Own Damage Insurance, often referred to as OD insurance, comes into play when your own bike sustains damage, including situations involving theft, where the insurance company provides compensation. It’s essential to note that Third Party Liability Insurance, or TP insurance, is mandated by the Motor Vehicle Act and is a legal requirement. Failure to possess this policy may lead to traffic police issuing a traffic violation ticket, commonly known as a challan.

These facilities are available under third party insurance

In the event that your motorcycle results in property damage, damage to another vehicle, injury to individuals, or loss of life in an accident, your insurance policy covers all associated legal expenses. This means that if the matter escalates to a court proceeding and you are required to pay fines, your insurance provider will cover those costs. There is a maximum limit of Rs 7,50,000 specified by the insurance company for this coverage.

15 lakh rupees are available on this condition

Within third-party insurance, there is a segment known as ‘Personal Accident Cover for the owner and driver.’ In the unfortunate event that the motorcycle driver, who possesses a valid registration certificate and a driver’s license, loses their life in an accident while operating the bike, the insurance company provides a compensation of 15 lakh rupees. This compensation is provided in the form of a personal accident cover. There are specific guidelines and procedures for claiming this compensation from the insurance company, which can be readily pursued by the family of the vehicle owner.

Choose Add on Rider Benefits

During Comprehensive Insurance, companies provide many types of add on benefits, in which case you can choose it according to your need. In this, you will get the facility of zero depreciation cover, engine and gearbox protection cover, key and lock replacement cover, helmet cover, 24 × 7 site assistance add-on, etc.

Take insurance for a long time

Opting for an extended insurance policy not only allows you to enjoy some cost savings but also relieves you of the annual renewal hassle. Additionally, it enables you to avail the no-claim bonus over the policy’s duration, even if you have made a claim within that timeframe.

Cover your 2-Wheeler with Comprehensive Insurance

Look into these statistics and realize the importance of insurance

  • 2 wheelers constitute more than 80% of all vehicle sales in India
  • For every 1000 Indians, more than 100 owns 2 wheelers
  • About 13% of these vehicles are stolen every year
  • Which accounts for more than 300 such vehicles per day

What does motor vehicles act says regarding insurance?

Chapter XI of the MV Act, 1988 deals with Insurance of Motor Vehicles with Third Party Risk & Clause 146 deals with ‘necessity of for insurance against third party risk’.

Insurance for Third Party Liability

Currently, the Motor Vehicles Act stipulates that all two-wheelers must have insurance coverage for third-party liability. This coverage encompasses the responsibility for injuries and damages inflicted upon others, who are referred to as the third party. In this context, the first party is the vehicle owner, and the second party is the insurance company. This insurance, often known as Limited Liability Insurance, provides protection to the insured party, including the owner and the driver of the two-wheeler or pillion rider, against any third-party liability resulting from an accident. This liability covers damages or losses incurred by the third party or their property, as well as the owner/driver’s disability or loss of life resulting from the accident. However, the premium for third-party liability coverage is determined according to the regulations set forth by the Insurance Regulatory and Development Authority (IRDA).

Insurance for Comprehensive Cover

While MV Act does not provide for covering insurance for other types of risks like, theft, fire, etc., as also damage to the owner’s vehicle, almost all the general (non-life) insurance companies are offering the Comprehensive Cover as an Optional cover, which is not mandatory.

Why cover the vehicle for comprehensive cover?

The comprehensive cover (also called Package Policies) assures the following benefits-

What are covered (inclusions)?

On total or Partial Loss/ Damage to your 2-wheeler

Against natural calamities such as-

  • fire
  • explosion
  • self-ignition or lightening
  • earthquake
  • flood
  • typhoon
  • hurricane
  • storm
  • tempest
  • inundation
  • cyclone
  • hailstorm
  • frost
  • landslide
  • rockslide

Against man-made calamities such as

  • Burglary
  • Theft
  • Riot
  • Strike
  • Malicious Acts
  • Accident by external means
  • Terrorist activity
  • Any damage in transit by road, rail, inland waterway, lift, elevator or air

What are not covered in your policy (exclusions)?

  • Normal wear & tear
  • Breakdowns
  • Consequential loss
  • Loss occurred due to invalid driver license (expired license)
  • Loss occurred on account of drunken driving and/or drugs intake
  • Loss due to civil war, war, etc.
  • Claims arising out of Contractual Liability
  • Use of the vehicle otherwise than in accordance with ‘Limitations to Use’ (as when driven by a person other than owner/driver and/or as stated in the ‘driver’s clause’)
  • Any accidental loss or damage and/or liability caused/sustained/incurred outside the geographical area (the list is indicative & not exhaustive)

Optional add-on covers

The following additional covers are available on payment of extra premium-

  • NIL Depreciation Cover (Nothing payable in case of partial loss; depreciation available to a maximum of 50% on various metal, plastic, fibre or rubber parts in the event of total loss)
  • Loss of accessories (electrical/electronic)
  • Loss of driving license
  • Daily cash allowance (during the period of post-accident repair)
  • Engine protection
  • Tyres & tubes
  • NCB protection
  • Anti-theft device

Benefits of 2-Wheeler Insurance Policy

Having a 2-wheeler insurance policy offers several benefits to policyholders:

  • Financial Security:Insurance provides financial protection in case of accidents, damage, or theft, reducing the financial burden on the policyholder.
  • Legal Compliance:Third-party liability insurance is mandatory by law, ensuring that all two-wheelers on the road are covered against third-party risks.
  • Peace of Mind:Comprehensive coverage offers peace of mind, knowing that you are protected in various situations, including accidents, theft, and natural disasters.
  • Customization:Policyholders can customize their coverage with add-on riders to meet their specific needs.
  • No Claim Bonus (NCB):Insurers offer NCB discounts for claim-free policy years, reducing the premium cost upon renewal.
  • Online Renewal and Purchase:Many insurers offer the convenience of purchasing or renewing policies online, simplifying the process for policyholders.

Factors Affecting Premiums

Several factors influence the premium of a 2-wheeler insurance policy:

  • Vehicle Model and Make:The make, model, and cubic capacity of the two-wheeler affects the premium. High-end and powerful bikes typically have higher premiums.
  • Age of the Bike:Older bikes may have higher premiums due to increased maintenance costs and lower market value.
  • Location:The location where the bike is registered and primarily used can impact the premium. Areas with higher instances of accidents or theft may have higher premiums.
  • Coverage Type and Add-Ons:Comprehensive policies with additional riders result in higher premiums than basic third-party coverage.
  • No Claim Bonus (NCB):A history of claim-free years earns the policyholder NCB discounts, reducing the premium cost.
  • Voluntary Deductibles:Opting for a higher voluntary deductible can lower the premium. However, this means the policyholder agrees to bear a higher portion of the repair cost in case of a claim.

Premium Comparison for Honda Activa 5G 125 [DL2 | 2023 | Petrol | NCB 0%]

Company Name


Yearly Premium

Liberty Insurance



Bajaj Allianz General Insurance



United India Insurance



Digit Insurance



Magma HDI



Chola MS General Insurance






Future Generali



New India



Quotes taken from:

Claim Process

When an insured event occurs, policyholders must follow a specific process to make a claim:

  • Inform the Insurer: Notify the insurance company immediately after the incident and follow their instructions for claim registration.
  • File an FIR:In case of theft, vandalism, or accidents involving a third party, file a First Information Report (FIR) with the police.
  • Document the Incident:Gather all relevant documents, including photographs, repair estimates, and witness statements.
  • Submit the Claim:Complete the claim form provided by the insurer and attach all necessary documents.
  • Vehicle Inspection:The insurer may arrange for a vehicle inspection to assess the damages.
  • Claim Settlement: After verifying the claim, the insurer will either approve and settle it or request additional information if required.




Grievance Redressal Mechanism

Our study revealed that only a few insurance companies have posted a robust GRM system in their website. So, they are summarized below for our readers.

What is your grievance?

  • Any partial or total repudiation of claims by the insurance company
  • Any dispute in regard to premium paid or payable in terms of the policy
  • Any dispute on the legal construction of the policy in so far as such disputes relate to claims
  • Delay in settlement of claims
  • Non-issue of any insurance document to consumer after receipt of the premium
  • Any other grievance (not specified above)


  • Tier-I-call the company’s toll-free number or customer care number & lodge your grievance. Follow this up by sending e-mail & hard copy to ensure that your complaint is on their desk for their first-look.


  • Tier-II– If dissatisfied with the reply, escalate to the company’s AVP or company’s customer service desk at apex level.


  • Tier-III-If the issue still remains unresolved, then approach the Insurance Ombudsman pertaining to your jurisdiction for the redressal of your grievance (access to &

IRDAI’s Integrated Grievance Management System (IGMS)

The Insurance Regulatory and Development Authority of India (IRDAI) has implemented the Integrated Grievance Management System (IGMS) as an online platform that enables policyholders to officially lodge their complaints against insurance companies. Through IGMS, policyholders have the capability to monitor the progress of their grievances and engage in direct communication with IRDAI.


What can the government do?

  • The irony is- almost all the insurance companies are doling out similar policies with almost the same inclusions & exclusions- leaving the consumer more confused than ever. He is forced to choose that policy which charges reasonable additional premium for add-on covers to bring out the BEST POLICY for consumer benefit!
  • IRDA could mandate to bring out a standardized comprehensive cover covering all major aspects of some vital covers (which are now in the add-on list) such as anti-theft device which would be compulsorily offered by insurance companies while selling a comprehensive policy to the consumer.



2-wheeler insurance policies play a critical role in ensuring financial security for two-wheeler owners in India. Whether you opt for mandatory third-party liability coverage or comprehensive insurance with a range of add-ons, having the right insurance policy is essential to protect your bike and yourself from unexpected events.

As a responsible bike owner, it’s essential to understand the types of coverage, factors affecting premiums, and the claim process. Additionally, regularly renewing your policy ensures uninterrupted coverage and may also lead to valuable discounts through the No Claim Bonus (NCB) system.

To sum it up, two-wheeler insurance represents a judicious investment to protect your motorcycle and offer you a sense of security as you navigate the streets of India.

Things You Must Know About a Lapsed Two-Wheeler Insurance Plan

As we all know, two-wheeler insurance is mandatory for every two-wheeler being ridden on the road in India, and riding your vehicle without insurance is not at all advisable or legal, for that matter. Hence, it is recommended to purchase and renew your bike insurance on time.

Two-wheeler insurance can be easily renewed online, saving you from the hassle of visiting the insurer’s branch office. There is a grace period of 90 days, wherein the insurer can create the policy as a break-in so that you can still retain certain benefits like NCB. However, after this 90-day period, you will have to buy a new policy and start over with no benefits.However, we often miss out on renewing insurance on time.

However, that doesn’t mean that you cannot revive your two-wheeler insurance policy.

What happens when you fail to renew on time?

A policy lapses when you do not pay the premium to renew the policy on time. Consequently, there are no benefits within the break-in period i.e., the time period when the old policy has expired and the new policy is still to come in effect.

The No Claims Bonus (or NCB) which you may have accumulated with your bike insurance over the years will be lost if the policy is allowed to lapse for more than 90 days, which includes up to 50% discount which stacks up under the NCB benefit.  And obviously, this may result in a higher premium on renewal. Additionally, you will be unprotected against any damage or loss arising out of an accident and related third party liabilities. Therefore, the best way to keep such a scenario at bay is to renew your policy on time. In that regard, you can save both money and time by renewing bike insurance online. 

How can you reinstate your lapsed policy?

Do note that you cannot renew a lapsed policy after 90 days. In scenarios like those, you have to buy a new policy that would require the necessary documentation and inspection of the vehicle, among other formalities.Renewing your two-wheeler insurance is mandatory, as riding a vehicle without insurance is an offense that is punishable by law. Owing to the convenience associated with renewing your bike insurance policy online, the whole process has now become easier.

What to do if your two-wheeler insurance has expired?

Insurers do remind customers through reminder texts or calls when the policy expiry date is near. But there can be certain situations when you miss out to renew on time. If you have lost track of your policy renewal date or have missed it, the first step to undertake is to call up your insurer and ask for assistance. Your insurer may renew your policy without any penalty if it is only a few days past the due date. Moreover, insurers don’t undertake inspection in cases where you have been trying to pay for the policy before it expired. 

Renew your existing policy online or offline

When renewing your lapsed policy, you can do it online as well as offline. For the online mode, you can visit the insurer website, enter the required details and renew your policy online. While renewing online, keep all the vehicle documents handy as you will be required to enter the details. If you renew offline, you will have to visit your insurer, and he may ask a survey of your vehicle before issuing a new policy.

How to avoid lapses in insurance renewal?

The best way would do would be to renew on time. It is easy to keep track of the due date by signing up for email/SMS alert service. However, there is another smart way to avoid these hassles; just opt for a long-term two-wheeler insurance policy. Some insurers offer long-term insurance policies with coverage of up to 3 years. Choosing a long-term two-wheeler insurance policy saves you from the hassles of annual renewals while offering tangible benefits. 

Grievance Redressal Mechanism

Our study revealed that only a few insurance companies have posted a robust GRM system in their website. So, they are summarized below for our readers.

What is your grievance?

  • Any partial or total repudiation of claims by the insurance company
  • Any dispute in regard to premium paid or payable in terms of the policy
  • Any dispute on the legal construction of the policy in so far as such disputes relate to claims
  • Delay in settlement of claims
  • Non-issue of any insurance document to consumer after receipt of the premium
  • Any other grievance (not specified above)
  • Tier-I-call the company’s toll-free number or customer care number & lodge your grievance. Follow this up by sending e-mail & hard copy to ensure that your complaint is on their desk for their first-look. 
  • Tier-II– If dissatisfied with the reply, escalate to the company’s AVP or company’s customer service desk at apex level.
  • Tier-III-If the issue still remains unresolved, then approach the Insurance Ombudsman pertaining to your jurisdiction for the redressal of your grievance (access to &

IRDAI’s Integrated Grievance Management System (IGMS)

The Insurance Regulatory and Development Authority of India (IRDAI) has implemented the Integrated Grievance Management System (IGMS) as an online platform that enables policyholders to officially lodge their complaints against insurance companies. Through IGMS, policyholders have the capability to monitor the progress of their grievances and engage in direct communication with IRDAI. 

What can the government do?

  • The irony is- almost all the insurance companies are doling out similar policies with almost the same inclusions & exclusions- leaving the consumer more confused than ever. He is forced to choose that policy which charges reasonable additional premium for add-on covers to bring out the BEST POLICY for consumer benefit!
  • IRDA could mandate to bring out a standardized comprehensive cover covering all major aspects of some vital covers (which are now in the add-on list) such as anti-theft device which would be compulsorily offered by insurance companies while selling a comprehensive policy to the consumer.


2-wheeler insurance policies play a critical role in ensuring financial security for two-wheeler owners in India. Whether you opt for mandatory third-party liability coverage or comprehensive insurance with a range of add-ons, having the right insurance policy is essential to protect your bike and yourself from unexpected events.As a responsible bike owner, it’s essential to understand the types of coverage, factors affecting premiums, and the claim process. Additionally, regularly renewing your policy ensures uninterrupted coverage and may also lead to valuable discounts through the No Claim Bonus (NCB) system.To sum it up, two-wheeler insurance represents a judicious investment to protect your motorcycle and offer you a sense of security as you navigate the streets of India.

Two-Wheeler Loans: Get on the Road with Financial Flexibility!

Two-Wheeler Loans: Get on the Road with Financial Flexibility!

Two-Wheeler Loans: Get on the Road with Financial Flexibility!

In India, owning a vehicle, whether it’s a car or a two-wheeler, is a common aspiration. However, not everyone has the immediate financial means to purchase a bike outright. Therefore, taking a loan has become the most viable solution. Fortunately, obtaining a bike loan has become increasingly accessible over time. Depending on your credit history, you can secure loans for up to 85 percent of the bike’s cost, and in some cases, even up to 90-95 percent. This facilitates the process of buying a bike, allowing you to repay the loan through affordable EMIs (equated monthly installments). Nevertheless, selecting the most suitable bike loan requires thorough research and careful consideration to meet your specific requirements. 

   Subas Tiwari                      

A two-wheeler loan is a type of loan specifically designed to finance the purchase of a two-wheeler vehicle, such as a motorcycle, scooter, or moped. It is a popular financing option for individuals who want to own a two-wheeler but may not have the immediate funds to purchase one outright.

If you are planning to finance your bike purchase through a bank loan, it is crucial to be aware of the required documents beforehand. Failing to provide the necessary identification and safety-related paperwork can delay the loan approval process, resulting in wasted time. Thus, it is essential to gather all the required documents prior to applying for the loan. Banks typically request different sets of documents from salaried individuals and self-employed individuals to complete the loan approval procedure.

Documents for Two-Wheeler Loans

Every lender requires you to submit certain documents while applying for a loan. Some of the general documents required are given below:


For Salaried

For Self-employed

Identity Proof

PAN card, voter’s ID, passport, driving license

PAN card, voter’s ID, passport, driving license

Address Proof

Utility bills, passport, etc.

Utility bills, passport, etc.

Income Proof

Salary slips, IT returns, bank statements

Bank statements, IT returns, audited financial statements

Tips for Two-Wheeler Loan

A few loan applicants have had their applications rejected by lenders. This is not a pleasant feeling, and it is not good for your credit score. We have put together a list of tips that can help you apply successfully for a two-wheeler loan. These are as follows:

  • Determine the exact loan amount required:You should assess your needs and calculate exactly how much money you need to buy the bike you want. You should never apply for an amount larger than what you need.
  • Check your eligibility and compare your options:Once you decide how much money you need to borrow, take a look at all the loan options that you are eligible for. This is important. Never apply for a loan you don’t qualify for. This will automatically get your application rejected. Check your eligibility for a two-wheeler loan and make sure you fulfil all the criteria.
  • Check your credit score:Your credit score is one of the most important factors that determine loan approval. Lenders usually reject applications with low credit ratings. So, if your credit history is poor, look at improving it before applying for the loan.
  • Get a guarantor or co-applicant:If your credit score is not up to the requirement of the lender, see if you can get a guarantor or co-applicant. Having a guarantor or co-applicant who has good credit can help you get the loan you want.
  • Fill your loan application properly:Make sure your application is fully filled with all the details your lender requires. An incomplete application or an application that has wrong information may be rejected.
  • Submit all the necessary documents:While submitting your loan application, make sure you submit all the documents the lender requires as well. If you don’t submit the required papers, your application may be rejected.
  • Try applying with your existing lender:If you already have a good existing relationship with a bank, try taking the loan from them. This good standing may help you get a loan even if you don’t fulfil all their criteria.


When applying for a two-wheeler loan, there are several important factors to keep in mind to ensure a smooth and successful application process. Here are some key considerations:


  1. Creditworthiness:Your credit score and credit history play a significant role in determining your loan eligibility and interest rate. Before applying, check your credit score and address any issues that may negatively impact your creditworthiness.
  2. Loan Amount:Determine the loan amount you need based on the cost of the two-wheeler you intend to purchase. It’s advisable to make a down payment to reduce the loan amount and lower your monthly EMIs.
  3. Research and Compare:Shop around and compare loan offers from different lenders to find the most suitable option. Look for competitive interest rates, favorable loan terms, and minimal processing fees or hidden charges.
  4. Eligibility Criteria:Understand the eligibility requirements of lenders, including factors like age, income, employment stability, and credit history. Ensure that you meet the criteria before applying to increase your chances of approval.
  5. Documentation:Gather all the necessary documents required by the lender, such as identity proof, address proof, income documents, and bank statements. Ensure that your documents are accurate, complete, and up to date.
  6. Loan Repayment Capacity:Assess your financial situation and determine your repayment capacity. Calculate the monthly EMIs you can comfortably afford without straining your finances. Choose a loan tenure that allows you to repay the loan within your financial means.
  7. Loan Terms and Conditions:Read and understand the terms and conditions of the loan agreement thoroughly. Pay attention to details such as interest rates, processing fees, prepayment charges, late payment penalties, and other associated costs.
  8. Additional Charges:Inquire about any additional charges apart from the interest rate and processing fees. These may include documentation charges, insurance charges, and other fees that can increase the overall cost of the loan.
  9. Loan Pre-Approval:Some lenders offer pre-approval for two-wheeler loans. This allows you to know your loan eligibility and approximate loan amount before finalizing the purchase. It can simplify the buying process and provide bargaining power with the dealer.
  10. Loan Repayment Options:Understand the repayment options available, such as online payment facilities, auto-debit, or check payments. Choose the option that is most convenient for you and ensures timely repayment.

Remember to carefully assess your financial situation and borrow responsibly. Consider your monthly budget and ensure that the loan EMIs fit comfortably within your income. By being well-prepared and informed, you can make an informed decision and have a smoother loan application experience.

Do’s and Don’ts for Two-Wheeler Loan



Do your research well before you apply

Don’t apply for multiple loans at the same time

Make sure you are eligible for the loan you are applying for

Don’t apply for a loan simply because you get an attractive welcome gift

Compare interest rates and find the best option

Don’t forget to fill in the application form properly

Compare processing fees and other charges

Don’t sign the loan documents without reading them thoroughly

Evaluate your credit score before you apply

Don’t choose an EMI you cannot afford

Submit all the required documents without fail

Don’t forget to pay your EMIs on time

Read the offer document carefully before signing it

Don’t forget to prepay your loan if you can

Easy financing for superbikes

In India, the price of a luxury bike starts from Rs 5 lacs and it can go up to Rs 35 lacs or even more, depending on the model. Easy availability of finance from banks as well as non-banking finance companies for high-end two wheelers prompts customers to take up bike loans.

While 60-65% of the customers buy bikes on loan, some of them may go for a superbike loan only to avoid questions from the tax angle and not because they cannot afford it. But there are also instances of people with a monthly salary of Rs 30,000 buying these bikes.

For banks, offering loans for high-end bikes is one way of getting high net worth individuals (HNI) as customers. Strangely, many banks offer loans for luxury two-wheelers at rates lower than that for standard two wheelers. However, the tenures may be longer due to the high cost of the bike.

In some cases, the bank might not have an off-the-shelf loan product but could tailor one to suit the buyer’s needs. After all, someone who can afford to buy a bike of more than Rs 5 lacs could be a potential high net worth customer for the lender. The loan amounts are usually 70-80 per cent of the bike’s cost, but can also go up to 90 per cent, if the bank is happy with the customer’s profile.

People who buy high-end two wheelers do it more as a status symbol or for pleasure. But those who take loan for standard two wheelers are people who buy them out of necessity, for their daily commute.

The market for high-end bikes in India is at a nascent stage, although it is growing. Harley-Davidson has tie-ups with some private banks. Triumph is the superbike from UK and is financed by a few other private banks under a tie-up. Bucati is also a luxurious bike which is now sold in India. However, only a small percentage of customers opt for such loans.

While a large section of the demand comes from Delhi and Mumbai, cities like Bangalore, Ahmadabad and Chandigarh, too, have been excellent markets as a rich biking-culture already exists there. There is also an increasing demand from the south of India with Kochi, Chennai and Hyderabad where there is scope for a growing market for such superbikes.

Two-Wheeler safety tips for riders in the rainy season

It is very hard to drive on the Indian roads during the monsoon. Drainage, ditches, and speed-breakers are very dangerous during the heavy rains. Here are some safety tips for two-wheeler riders across the Indian cities & towns.

Before starting the vehicle, pre-check your vehicle for clutch, brake, indicators, headlight and fuel.

  • Always wear a fully covered helmet.
  • Follow the traffic rules religiously.
  • Pedestrians are extremely hard to spot in rain, so drive with care.
  • Don’t splash water on pedestrians.
  • Be extra cautious about the stray animals on the road.
  • Use indicators for turns and use head lights (dipper) for overtaking.
  • Avoid using cell phone and listening to music though earphones while driving.
  • Spot the vehicle behind you in the mirror before taking any turn.
  • Do not mix drinking and driving.
  • Drive slowly during the rains as well as on wet roads.
  • Avoid going through the kuchha road.
  • Go slow over the flooded roads.
  • Stay off the roads during heavy rains; park in concrete shade and wait till the rain stops.
  • Ride carefully and keep a safe distance between vehicles.
  • Be sure to wear a raincoat that will keep you dry so that you can wade your way.
  • Do not panic in adverse situations like a traffic jam or signal failure. Keep calm & allow for the traffic woes to ease.
  • Always carry license and other required documents.

Plan the journey in such a way that you reach your destination within daylight hours in rainy season.

The following table helps you compare the interest rates and processing fees offered by leading banks in India:


Bank Name

Interest Rate

Processing Fee



9.00% p.a. onwards 

Up to 4.75% of the loan amount + GST 


IDFC First Bank 

9.99% p.a. onwards 

5% of the loan amount 


Axis Bank

11.00% p.a. onwards

2.5% of the loan amount


Bank of India 

11.00% p.a. onwards

Contact the bank


Punjab National Bank

11.15% p.a. onwards

0.5% of the loan amount subject to Rs.500 to Rs.1,000


Canara Bank

11.35% p.a. onwards 



Union Bank of India

12.20% p.a. onwards

Contact the bank


Bank of Baroda 

9.40% p.a. onwards

2% of the loan amount 


Karnataka Bank 

14.23 p.a. onwards

Contact the bank 



14.50% p.a. onwards

2.5% of the loan amount


State Bank of India

17.75% to 19.50% p.a.

2.00% of the loan amount + GST (minimum of Rs.1,000)


UCO Bank 

UCO Float Rate plus 4.80% 

1% of the loan amount (minimum of Rs.500)


Indian Overseas Bank 

12.55% p.a. onwards 

Contact the bank 


Karur Vysya Bank 

10.80% p.a. to 17.30% p.a. 

1% of the loan amount (minimum of Rs.1,000)


Tamilnad Mercantile Bank 

14.95% p.a. 

1% of the loan amount 

Interest rates and processing fees sourced from- as on 06th July 6, 2023


Family Floater Health Insurance Policies

Family Floater Health Insurance Policies

Family Floater Health Insurance Policies

Family floater health insurance policies are a type of health insurance plan that provides coverage for the entire family under a single policy. Rather than individual policies for each family member, a family floater policy offers consolidated coverage for the primary policyholder, their spouse, and dependent children.

The main objective of a family floater policy is to provide financial protection against medical expenses arising from illnesses, injuries, hospitalizations, and other healthcare needs of the family members. It offers a comprehensive and convenient solution to manage the healthcare needs of the entire family under one policy.

Subas Tiwari

Here are some key features and benefits of family floater health insurance policies:

Coverage for the Whole Family: Family floater policies cover all the members of the family, including the policyholder, spouse and dependent children. Some policies may also allow coverage for parents or in-laws.

Sum Insured: The policyholder selects a sum insured, which represents the maximum amount of coverage available for the family members. This sum insured can be utilized by any member of the family as per their healthcare needs.

Premium: The premium for a family floater policy is based on factors such as the age of the eldest member, the sum insured selected, and the overall risk profile of the family. Paying a single premium for the entire family is often more cost-effective than buying separate policies for each member.

Cashless Treatment: Family floater policies usually offer cashless treatment facility wherein the insured members can avail medical treatment at network hospitals without paying cash up front. The insurance company settles the bills directly with the hospital, subject to policy terms and conditions.

Coverage for Hospitalization Expenses: Family floater policies typically cover expenses related to hospitalization, including room charges, doctor’s fees, surgical procedures, medications, and other necessary medical services. The coverage may also include pre and post-hospitalization expenses for a specified period.

Additional Benefits: Family floater policies may offer additional benefits such as coverage for daycare procedures, ambulance charges, maternity benefits, newborn baby care, alternative treatments, preventive healthcare services, and annual health check-ups. These benefits may vary across insurance providers.

Policy Renewal: Family floater policies are generally renewable on an annual basis. Renewing the policy ensures the continuity of coverage for the family.

How is it different from Individual policies?

Individual Policy

Family Floater Policy

Each one of the members have to take a policy for himself/herself.

There is only one policy under whom every member of the family is covered.


The sum assured is individually fixed depending on your requirements.

The sum assured on the policy is the same for each member.


The claim on the policy will be up to individual limit.

The claim can be on the whole sum assured on the policy or can be claimed by other family members also to that extent.


Premium is higher in this case.


Premium amount tends to be lower.

Premium is fixed according to the age of the individual.


Premium is fixed based on the age of the oldest member.

This policy suits only an individual who does not foresee any increase in family size.

This policy will suit any individual, whose family size is expected to increase either due to marriage/childbirth or in the unfortunate event of a sister becoming a widow or the dependent parents migrate from the native village & stay with the son.

 Is Taking Health Insurance a Must?

While it is not legally required to have health insurance in all countries, having health insurance is generally considered to be a prudent financial decision and can provide several benefits.

Here are some reasons why having health insurance is often recommended:

  • Financial Protection:Health insurance provides financial protection against high medical costs. Medical treatments, hospitalizations, surgeries, and emergency care can be expensive, and having insurance helps mitigate the financial burden by covering a significant portion of these expenses. Without insurance, you may have to pay for medical bills out of pocket, which can be financially devastating, especially in case of major illnesses or accidents.
  • Access to Quality Healthcare:Health insurance gives you access to a network of hospitals, clinics, and healthcare providers. Many insurance plans have tie-ups with specific hospitals or a network of providers, allowing you to receive medical care at discounted rates or through cashless treatment facilities. This ensures that you can receive timely and quality healthcare services when needed.
  • Timely Medical Attention:With health insurance, you are more likely to seek timely medical attention for health concerns, as you have coverage for the associated costs. Regular health check-ups and preventive care can help identify and address health issues early on, increasing the chances of successful treatment and reducing the risk of complications.
  • Coverage for Major Illnesses and Accidents:Health insurance provides coverage for major illnesses and accidents, which can require extensive medical treatments, surgeries, or long-term care. These unexpected events can be financially overwhelming without insurance coverage. Having insurance ensures that you can receive the necessary medical care without worrying about the financial implications.
  • Peace of Mind:Having health insurance brings peace of mind, knowing that you are financially protected against unforeseen medical expenses. It allows you to focus on your health and well-being without the constant worry about how to manage healthcare costs.

However, the decision to take health insurance ultimately depends on your individual circumstances, including your financial situation, access to healthcare, and the healthcare system in your country. It is advisable to carefully assess your needs, compare insurance plans, and consider factors such as coverage, premiums, deductibles, and exclusions before choosing a health insurance policy that best suits your requirements.


  • The family floater plans are priced based on the age of the senior most member; as he/she gets older, the flexibility in premium decreases & the cost of the premium increases significantly.
  • The family floater policy will be renewed only till the senior most member reaches the maximum age of the renewability as provided in the policy.
  • Children who reach the maximum age (normally it is 25 years or becomes independent on getting a job or is gainfully self- employed) will have to buy a separate policy for themselves.


  • The standard health policy will have benefits of cumulative bonus.
  • Insurers will not be permitted to impose deductibles.
  • Customers will, however, be subject to a fixed co-pay of 5% of claim amount across all ages which will be clearly mentioned in the policy document.
  • All insurers to offer the above cover on indemnity (protection) basis only.
  • There cannot be any other add-on covers like critical illness or benefit-based covers.
  • Insurers will have the final decision on the premium price.
  • These rates would have to be uniform across India.
  • Insurers cannot have geography or zone-based pricing on these rates.
  • The “Arogya Sanjeevani” policy (which is a standardized & custom-built policy model brought out by IRDAI) based on which insurers could bring out their policies & the same can be availed as for both individual lives & family floaters basis on or before 1stApril, 2020
  • The minimum will be Rs.1,00,000 & the maximum will be for Rs.5,00,000.
  • This policy will have no exit age.
  • For this policy, the minimum age required is 18 years & the maximum 65 years.
  • Under the family floater policy, children between 3 months to 25 years would be covered.
  • The standard policy will be offered with a policy term of 1 year.
  • The policy will allow all modes of premium payment, viz., monthly/quarterly, half-yearly & yearly.
  • Treatment for cataract & age-related eye ailments, ulcers, piles, sinus, benign ENT disorders, tonsillitis, adenoidectomy, mastoidectomy & all internal & external tumours will be covered subject to a waiting period of 24 months.
  • Treatment for joint replacement (unless arising from accident & age-related osteoarthritis) will have a waiting period of 48 months.

How is my Family Floater Health Insurance Premium Calculated?

The premium for a family floater health insurance policy is calculated based on several factors. While the specific methodology may vary between insurance companies, here are some common factors that influence the premium calculation:

  • Age of the Oldest Member:The age of the oldest member in the family plays a significant role in determining the premium. Generally, higher age is associated with increased health risks, leading to higher premiums.
  • Sum Insured:The chosen sum insured, which represents the maximum coverage amount under the policy, affects the premium. Higher sum insured amounts typically result in higher premiums.
  • Family Size:The number of family members covered under the policy can impact the premium. A larger family may result in higher premiums compared to a smaller family.
  • Zone or Location:The geographical location of the insured members can influence the premium. Insurance companies may have different premium rates for different regions based on factors like healthcare costs, infrastructure, and demographics.
  • Medical History:The medical history and pre-existing conditions of the insured family members can affect the premium. Certain health conditions may lead to higher premiums or exclusions from coverage.
  • Lifestyle Factors:Lifestyle factors such as smoking, alcohol consumption, or engagement in high-risk activities can impact the premium. These factors may increase the likelihood of health issues and result in higher premiums.
  • Deductibles and Co-payment:If the policy has a deductible or co-payment clause, where the insured has to bear a portion of the expenses, the premium may be adjusted accordingly.
  • Coverage and Add-ons:The extent of coverage and additional benefits chosen, such as maternity coverage, daycare procedures, or alternative treatments, can influence the premium.
  • Claim History:The claims history of the insured members may be taken into account. If there have been frequent or high-value claims in the past, it may result in higher premiums.

It’s important to note that each insurance company may have its own methodology for premium calculation, and the weightage given to each factor may vary. It’s recommended to reach out to insurance providers or agents for accurate premium quotes based on your specific family’s details and requirements.

Here are 20 tips to consider when buying a family floater health insurance policy:

  1. Assess Your Family’s Healthcare Needs:Understand your family’s medical history, current health conditions, and anticipated healthcare needs to determine the appropriate coverage required.
  2. Evaluate Insurer Reputation:Research and choose a reputable insurance company with a strong track record in providing quality coverage and prompt claim settlements.
  3. Coverage Adequacy:Ensure the policy offers sufficient coverage to meet potential medical expenses for the entire family.
  4. Network Hospitals:Check the list of network hospitals affiliated with the insurance provider to ensure convenient access to quality healthcare services.
  5. Pre-Existing Conditions:Review the policy’s stance on pre-existing conditions and understand if there are any waiting periods associated with coverage for such conditions.
  6. Policy Exclusions:Thoroughly read and understand the policy exclusions to know what conditions, treatments, or situations are not covered.
  7. Room Rent Limit:Check the sub-limit on room rent and make sure it aligns with the cost of hospitals in your preferred location.
  8. Co-payment:Understand if the policy has any co-payment requirements, where you need to bear a percentage of the medical expenses.
  9. No Claim Bonus:Inquire about the availability of a no claim bonus, which rewards policyholders with increased coverage or reduced premiums for claim-free years.
  10. Claim Settlement Ratio:Research the insurer’s claim settlement ratio to assess their efficiency in processing and settling claims.
  11. Waiting Periods:Understand the waiting periods associated with specific treatments, maternity benefits, and other coverage aspects.
  12. Daycare Procedures:Check if the policy covers daycare procedures that do not require 24-hour hospitalization.
  13. Maternity Benefits: If you anticipate having children, evaluate the coverage for maternity expenses, including pre and post-natal care, delivery charges, and newborn baby care.
  14. Policy Renewal Age:Check the maximum age up to which the policy can be renewed to ensure long-term coverage for your family.
  15. Premium Affordability: Compare premium costs across insurers and assess the affordability of the policy in relation to your budget.
  16. Claim Process:Understand the claim filing process and the ease of claim settlement, including the availability of cashless treatment facilities.
  17. Additional Benefits:Consider any additional benefits offered by the policy, such as coverage for alternative treatments, preventive healthcare services, or annual health check-ups.
  18. Customer Service:Evaluate the insurer’s customer service track record, including responsiveness, support, and grievance resolution.
  19. Policy Flexibility: Assess if the policy allows for adding or removing family members during the policy period, considering potential changes in family structure.
  20. Read Policy Documents:Thoroughly read and understand the policy documents, including terms, conditions, and limitations, before making a final decision.

It’s advisable to consult with financial advisors who can provide personalized guidance based on your specific requirements and preferences.


Family Floater Health Insurance Policies

Health Insurance Policy for Senior Citizens

Health Insurance Policy for Senior Citizens

Over the past few years, there has been a growing awareness among individuals regarding health insurance. Furthermore, following the Covid-19 pandemic, there has been a significant surge in the number of people purchasing health insurance. It is now imperative for everyone to obtain a health insurance policy that covers their entire family. Particularly, if there are elderly parents residing in your household, the importance of obtaining health insurance becomes even more pronounced. This is primarily due to the elevated risk of various ailments associated with old age. By having health insurance, one can avoid incurring substantial hospital expenses during the treatment of such illnesses.

                                                                                                                                                         Subas Tiwari                                                                                                                                                                            Before purchasing a health insurance policy for your elderly parents, it is crucial to familiarize yourself with certain aspects of health insurance. This understanding will enable you to address any issues that may arise when dealing with Senior Citizen Health Insurance.

Why analyze Health Insurance Policy for Senior Citizens?

Senior citizens must get health cover to evade health problems and avoid financial shock. Many aged individuals are worried about the spiraling cost of healthcare and what havoc it could do to their financial security. With medical inflation growing at 15% per year, the cost of procedures like angiography and gall bladder removal has increased tremendously, a report released by KPMG and Assocham noted. Around 38% of the elderly respondents to the survey in India ranked health and financial insecurity among key fears. Low insurance penetration in India means many senior citizens lack the resources to fund treatment.

GROUP INSURANCE-Employer’s Coverage

The need for a health insurance cover is all the more necessary for those who enjoyed the health cover under the ‘Group Insurance Scheme’ floated by the insurance companies under a tie-up with their organization (both government-owned & private sector companies). Till their retirement, the employees/officers were covered under this Scheme, but the cover ceases abruptly immediately after their superannuation. Then the employee gets the ‘senior citizen’ tag & with it comes the financial limitation to live off his pensionary benefits & the sudden ‘disappearance’  of his health cover causing him anxiety.

We have also come across many instances of serving employees not bothering to take any sort of health cover during their service years especially in the un-organized sector & under the self-employed category.

Senior Citizen Health Insurance- a necessity?

Senior citizen health insurance is a necessity especially when you are planning to retire or already retired and carry on life on pension or interest income from savings. A sudden medical emergency can result in a financial crisis other than health setbacks. To avoid this, it is prudent to take a comprehensive senior citizen medi-claim policy.

According to the guidelines by IRDA, every health insurance provider has to mandatorily offer health coverage to individuals’ up to 65 years of age. However, most of the Health insurance Companies are offering health cover to senior citizens aged more than 65 years of age & even up to their platinum years. These guidelines will not only help individuals get coverage at later stages of their life but will also allow them to shift insurers (portability) in case they are not satisfied with their current health insurance provider.

Consumer VOICE readers might be aware that Consumer Voice had carried out a story on the same subject in May 2014. We at the BFSI Desk of CV wanted an updated information as there have been subtle changes brought out by the Health Insurance Companies under the regulatory control of IRDAI. Hence this story in the current issue.

Sum Insured (Health Insurance cover)

Based on the financial capacity/affordability of the insured, we have opted for a Rs.3, 00,000 health insurance policy, as market indices indicate that an average man/woman above 60 years of age would be able to meet his medical treatment (excluding major lifelong diseases) within this amount, if he does not suffer from any serious medical complication at the time of taking a health insurance policy.

Major inclusions in a Senior Citizens Health Insurance Policy

  • In-patient Treatment

Covers medical expenses for Hospitalization due to an illness or accident.

  • Hospitalization Cover

 Expenses incurred as a patient after admission of more than 24 hrs. The expenses include room charges, doctor fees, minor surgery cost, cost of medicine and drugs, etc.

  • Day care

Expenses which arise from use of special equipments or procedures like chemotherapy, dialysis, etc.

  • Pre and post of hospitalization

Medical expenses for pre and post of hospitalization; but the number of days it is made available before/after hospitalization will vary across insurers.

  • Domiciliary Treatment

The medical expenses incurred by an insured for availing medical treatment at his/her home which would otherwise have required hospitalization (non-admission due to non-availability of beds or that the patient cannot be moved due to his poor medical condition duly certified by the Hospital).

  • Organ Donation

These are medical expenses on harvesting the organ from the donor at the time of such organ transplants, but do not cover the cost of the organ itself.

  • Co-Payment

This term means that this is a cost-sharing requirement where the policyholder/insured will bear a specified percentage of the admissible claim amount. However, this does not reduce the sum insured. It’s a kind of margin money the patient brings in while getting admitted for cashless treatment. This is often resorted to by health insurance companies as the cost of treatment for senior citizens could be high & this clause ensures that at least a part of the cost is picked up by the insured.

Tax Benefits to Senior Citizens on Health Insurance

A senior citizen health policy covers medical expenses as well as helps you to get tax exemption under section 80D of the Income Tax Act, 1961. You are eligible for an income tax rebate of up to Rs 50,000 if you hold a mediclaim policy for senior citizens for your elderly parents.

An additional tax rebate of Rs 5,000 can be earned on payments made towards preventive health check-ups every financial year. Additionally, you can also get a rebate of up to Rs 1 lakh if the senior citizen undertakes a critical disease treatment.

In case you are an earning senior citizen and are also paying the health insurance premium on behalf of your son or daughter, then you can avail an additional income tax rebate of Rs 25,000. This means that you can avail tax deduction of up to Rs 75,000 in a financial year under section 80D.

Major exclusions in the Policy

  • Cosmetic surgery
  • Dental Treatment
  • Aesthetic treatment
  • Plastic Surgery
  • Weight Reduction procedures
  • AIDS/ Sexually Transmitted Diseases (STD)
  • Stem Cell Procedures
  • Robotic Surgery

Difficult terminologies explained

  • Restoration of Sum Assured

In case of hospitalization, once your claim for a particular disease/ailment is fully exhausted, then you can invoke this basic cover for any other ailment within the same policy period

  • Day Care Cover

They are important for the consumer as it reduces his cost or covers additional medical expenses but is not going to alter his options in a major way while the senior citizen chooses a policy.

  • Domiciliary treatment

These are the expenses incurred in case patient is being treated at home due to non-availability of beds in hospital or if the patient is not in a medical condition to be moved to a hospital.

What Senior Citizens look for in a Policy to make it attractive to them?

  • To make it an attractive buy, the health insurance companies can tinker with the Pre Existing Disease waiting periodto 1 year minimum, as at their age, it is foolish to expect a very robust health profile & most of them would be carrying some ailment or the other on them, which would be as a result of the age factor & the nature’s way of decay.
  • Out Patient treatment(OPD) of ailments not categorized as lifelong diseases  and also not requiring hospitalization could be included as one of the basic covers or add-on covers with additional premium.

Keep these things in mind while buying a Health Insurance for Senior Citizens

  • Day Care Facilities-Due to technological advancement in medicine, a lot of medical procedures and surgeries can be done through day care treatments. But under a standard health insurance policy, a senior citizen must be hospitalized for at least 24 hours to raise a claim. Hence, it is better to buy a senior citizen plan that covers a variety of day care procedures like dialysis, chemotherapy, radiotherapy, etc.
  • Network Hospitals-Every health insurance company has an extensive network of hospitals where you can avail cashless hospitalization facilities. Enquire about the list of network hospitals of your insurance company before buying a plan. This will help you to know if a good hospital in your locality is on the list.
  • Process Of Health Insurance Claim Settlement-Claim settlement ratio and the time taken by an insurance company to settle claims should also be taken into consideration while purchasing a senior citizen health policy. If an insurance company’s claim settlement time is less and the claim settlement ratio is high, it means that the chances of your claim getting settled quickly are more.
  • No Claim Bonus-A no claim bonus discount is provided by most insurance companies if no claims are lodged by the policyholder in the previous year. In such a case, either the policy premium decreases or the sum insured amount increases.
  • Free Medical Health Check-Up Facility-The most suitable health insurance plans for senior citizens is the one which allows the policyholders to avail medical check-up for free on an annual basis. This usually is offered after the completion of certain policy years or after every two/three claim-free years.
  • Renewal Process-The best health insurance plan offers a lifetime renewability option so that you won’t have to buy another health plan in your old age. A policy that cannot be renews, especially after 60 years, is not the right plan for a senior citizen.
  • Waiting Period for Pre-Existing Diseases-Most elderly people suffer from pre-existing diseases whose treatment are expensive. Hence, it is ideal to opt for a senior citizen health insurance plan that comes with a minimum waiting period for pre-existing diseases.

Domiciliary Hospitalization- In case of unfortunate situations, an elderly person’s health condition may not allow him/her to get admitted to a hospital. In such a case, health plans with domiciliary hospitalization cover will take care for home treatment expenses as long as it has been advised by a qualified doctor.


  • Go in for minimum waiting period for PED
  • Go for minimum co-payment
  • Go for top-up policy within the same insurance policy or a different insurer for lifestyle diseases

The following table shows the various senior citizens health insurance plans that you can buy

Senior Citizens Health Insurance Plans Entry Age Sum Insured (Rs) Pre-existing Disease Coverage Co-Payment Pre-Policy Medical Check-up
Aditya Birla Activ Care Plan 55-80 years Standard: 3 lakh to 10 lakh
Classic: 3 lakh to 10 lakh
Premier: 5 lakh to 25 lakh
From the 3rd year 10% under the Premier plan
20% under the Standard and Classic plan
Bajaj Allianz Silver Health Plan 46-80 years Plan A: 50,000 to 5 lakh
Plan B: 3 lakh to 10 lakh
From the 2nd year 10% on all claims under Plan B
20% on all treatments in a non-network hospital under Plan A
Care Senior Health Advantage Plan 60 years onwards 5 lakh, 10 lakh From the 3rd year 50% on all claims up to 70 years
60% on all claims above 70 years
Not required
Cholamandalam Flexi Health Supreme Plan 18-75 years Basic: 5 lakh to 25 lakh
Plus: 5 lakh to 25 lakh
Premiere: 30 lakh to 5 crore
From 3rd/4th year (depending on the plan variant) NA NA
Digit Health Insurance Plan 18 years onwards 2 lakh to 3 crore From 2nd/4th year (depending on the plan) 20% if treatment is taken at a non-network hospital May be required
Future Generali Varishta Bima 60 years onwards 2 lakh to 10 lakh From the 2nd year 50% on PED claims and 25% on all other claims Required for sum insured of Rs 7.5 lakh & Rs 10 lakh
IFFCO Tokio Individual Health Protector Plan 18-65 years 50,000 to 20 lakh From the 4th year NA Required for people above 45 years
Kotak Mahindra Health Premier Plan 18-65 years Standard: 2 lakh
Advantage: 3 lakh to 10 lakh
Edge: 5 lakh to 20 lakh
Elite: 10 lakh to 25 lakh
Absolute: 25 lakh to 2 crore
360: 2 lakh to 2 crore
Total: 2 lakh to 2 crore
From the 4th/5th year (depending on the plan variant) 10% or 20% for treatment in a higher zone (depending on the zone) Required for people above 55 years and/or sum insured of Rs 50 lakh & above
Liberty HealthPrime Connect Plan 18-65 years Essential: 10 lakh to 50 lakh
Optimum: 10 lakh to 50 lakh
Optimum Plus: 75 lakh, 1 crore
From the 4th/ 5th year (depending on the plan variant) No co-pay Required for people above 35 years and/or sum insured of Rs 30 lakh & above
Magma HDI OneHealth Senior Plan 56 years onwards Gold: 3 lakh to 25 lakh
Platinum: 3 lakh to 25 lakh
From the 2nd year 30% on all non-accidental claims May be required
ManipalCigna Prime Senior Plan 56-75 years Classic: 3 lakh to 50 lakh
Elite: 5 lakh to 50 lakh
From the 3rd year 20% Not required
National Senior Citizen Mediclaim Policy 50-80 years Plan A: 1 lakh to 10 lakh
Plan B: 1 lakh to 10 lakh
From the 3rd year 10% on PED diabetes/hypertension claims and 25% on both PED claims Required
New India Senior Citizen Mediclaim Policy 60-80 years 1 lakh, 1.5 lakh After 1.5 years 10% Required
Niva Bupa (Formerly known as Max Bupa) Senior First Plan 61-75 years Gold: 5 lakh, 10 lakh
Platinum: 5 lakh to 25 lakh
From the 3rd year No co-pay Not required
Oriental HOPE Insurance Plan 60 years onwards 1 lakh to 5 lakh From the 3rd year 20% Required
Raheja QuBE Health Insurance Plan 18-65 years Basic: 1 lakh to 50 lakh
Comprehensive: 3 lakh to 50 lakh
Super Saver: 1 lakh to 50 lakh
Ala Carte: 1 lakh to 50 lakh
From the 5th year 20% for people above 60 years (except under the Super Saver plan) Required for people above 55 years and/or sum insured of Rs 10 lakh & above
Reliance Health Gain Plan 18-65 years
(No age limit for sum insured of Rs 3 lakh)
Plus: 3 lakh, 5 lakh
Power: 10 lakh to 20 lakh
Prime: 25 lakh to 1 crore
From the 4th year 20% for people above 60 years May be required
Royal Sundaram Lifeline Health Insurance Plan 18 years onwards Classic: 2 lakh to 4 lakh
Supreme: 5 lakh to 1 crore
Elite: 25 lakh to 1.5 crore
From the 3rd/ 4th/ 5th year (depending on the plan variant) 20% on all claims of international treatment for critical illness NA
SBI Super Health Insurance Plan 18 years onwards Elite: 3 lakh to 25 lakh
Premier: 3 lakh to 10 lakh
Platinum: 10 lakh to 50 lakh
Platinum Infinite: 50 lakh to 2 crore
From the 3rd year 20% on all OPD professional fee claims
30% on all OPD diagnostic & pharmacy claims
50% on OPD Dental/Vision cover
Star Senior Citizen Red Carpet Health Insurance Plan 60-75 years 1 lakh to 25 lakh From the 2nd year 30% on all claims Not required
Tata AIG MediCare Premier Plan 18-65 years 5 lakh to 3 crore From the 3rd year NA Required for people above 55 years and/or sum insured of Rs 50 lakh & above
United India Senior Citizen Health Insurance Plan 61-80 years 1 lakh to 3 lakh From the 5th year 20% on pre-post hospitalization claims Required
Universal Sompo Senior Citizen Health Insurance Plan 60-70 years 1 lakh to 5 lakh From the 3rd year 10% on all hospitalization claims
15% on day care claims
20% on PED claims
Zuno (Formerly Edelweiss) Health Insurance Plan 18-65 years
(No age limit for the Platinum plan)
Silver: 1 lakh to 5 lakh
Gold: 5 lakh to 20 lakh
Platinum: 15 lakh to 1 crore
From the 3rd/ 4th/ 5th year (depending on the plan variant) 20% for people above 60 years Required for people above 50 years

Product Info sourced from Policybazaar



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