Decoding Cyber Coverage in India: Your Ultimate Guide

Decoding Cyber Coverage in India: Your Ultimate Guide

Decoding Cyber Coverage in India: Your Ultimate Guide

In today’s technology-driven landscape where digitalization is ubiquitous, companies confront an escalating threat landscape in the form of cyber-attacks, data breaches, and other cyber incidents. With the proliferation of cybercrime, robust cyber security measures have become indispensable. However, even with the best efforts, no organization is immune to the risk of a cyber-breach. This is where cyber insurance emerges as a crucial risk management tool.

 Subas Tiwari

Understanding Cyber Insurance

Cyber insurance, also known as cyber liability insurance or cyber risk insurance, is a specialized insurance product crafted to shield businesses from financial losses and liabilities stemming from cyber threats. It offers coverage for a spectrum of cyber risks, encompassing data breaches, network security failures, ransom ware attacks, and other malicious activities.

The Need for Cyber Insurance in India

India, with its rapidly expanding digital infrastructure and burgeoning e-commerce ecosystem, is witnessing a significant surge in cyber threats. From large corporations to small and medium enterprises (SMEs), entities across various sectors are susceptible to cyber-attacks. According to a report by the Indian Computer Emergency Response Team (CERT-In), there were over 1.16 lakh cyber security incidents reported in India between January and June 2021. Against this backdrop, the importance of cyber insurance cannot be overstated.

In India, cyber insurance is imperative for a wide array of entities due to the escalating prevalence and sophistication of cyber threats. Here are some examples of entities that require cyber insurance in India:

  1. Companies of all sizes: Any organization that conducts business online or stores sensitive data electronically, ranging from small start-ups to large enterprises, faces cyber threats and can benefit from cyber insurance coverage.


  2. Financial institutions: Banks, insurance companies, and other financial entities in India are prime targets for cybercriminals due to the vast amounts of sensitive financial data they possess. Cyber insurance can mitigate the financial losses associated with data breaches and other cyber incidents.


  3. Healthcare providers: Hospitals, clinics, and other healthcare establishments store extensive amounts of sensitive patient data, making them attractive targets for cyber-attacks. Cyber insurance provides financial protection in the event of a data breach or ransom ware attack.


  4. Government agencies: Government entities at the national, state, and local levels in India handle vast quantities of sensitive information. Cyber insurance can assist government agencies in managing the financial risks associated with cyber threats and data breaches.


  5. E-commerce entities: With the proliferation of e-commerce in India, online retailers and marketplaces confront significant cyber risks, including payment card fraud, data breaches, and website downtime. Cyber insurance aids these businesses in recovering from cyber incidents and safeguarding their customers’ data.


  6. Educational institutions: Schools, colleges, and universities in India maintain sensitive information about students, faculty, and staff, making them potential targets for cyber-attacks. Cyber insurance offers financial protection against data breaches, ransom ware attacks, and other cyber threats.


  7. Professional service firms: Law firms, accounting firms, consulting companies, and other professional service providers handle confidential client data, rendering them vulnerable to cyber-attacks. Cyber insurance helps mitigate the financial and reputational damage resulting from data breaches and cyber incidents.


  8. Manufacturing and industrial enterprises: Industrial control systems and manufacturing processes are increasingly interconnected with the internet, exposing manufacturing and industrial companies to cyber-attacks. Cyber insurance provides financial protection against disruptions to production and supply chains caused by cyber incidents.


  9. Technology firms: IT companies, software developers, and other technology firms in India confront unique cyber risks due to their involvement in developing and managing digital infrastructure. Cyber insurance assists technology companies in managing the financial impact of cyber threats and safeguarding their intellectual property.


  10. Supply chain partners: Businesses in India that are part of global supply chains may be mandated by their customers or partners to have cyber insurance coverage as a condition of conducting business. Cyber insurance ensures operational continuity and compliance with contractual obligations.

In summary, cyber insurance is indispensable for any organization in India that relies on digital technology to conduct business or store sensitive information. By investing in cyber insurance coverage, entities can mitigate financial losses, safeguard their reputation, and ensure resilience in the face of evolving cyber threats.

Key Components of Cyber Insurance Policies

Cyber insurance policies typically encompass several key components, each tailored to address specific facets of cyber risk:

  1. Data breach liability: Covers expenses associated with data breaches, such as costs related to notifying affected individuals, credit monitoring services, and legal settlements resulting from lawsuits.

  2. Third-party liability: Protects organizations from liabilities arising from claims by customers, clients, or other third parties affected by a cyber-incident. This may include lawsuits alleging negligence in safeguarding sensitive data.

  3. First-party coverage: Reimburses organizations for direct expenses incurred due to a cyber-incident. This may include costs related to data recovery, business interruption, forensic investigation, and cyber extortion payments.

  4. Cyber extortion insurance: Provides coverage for expenses related to cyber extortion attempts, such as ransom ware attacks. It may cover ransom payments, forensic investigation costs, and expenses related to restoring systems and data.

  5. Regulatory fines and penalties: Some cyber insurance policies offer coverage for regulatory fines and penalties imposed by government authorities for non-compliance with data protection regulations, including GDPR (General Data Protection Regulation).

  6. Crisis management services: Many cyber insurance policies include access to incident response services, such as forensic investigation, public relations assistance, and legal counsel, to help organizations mitigate the impact of a cyber-incident.

Prominent Cyber Insurance Providers in India

  1. ICICI Lombard General Insurance: ICICI Lombard offers cyber insurance solutions designed to protect businesses from cyber risks such as data breaches, cyber extortion, and business interruption. Their policies provide coverage for various industries, including banking, finance, healthcare, and IT.

  2. Bajaj Allianz General Insurance: Bajaj Allianz offers cyber insurance policies covering financial losses and liabilities resulting from cyber-attacks, data breaches, and other cyber incidents. Their policies include coverage for expenses related to data recovery, regulatory fines, and legal defence costs.

  3. HDFC ERGO General Insurance: HDFC ERGO offers cyber insurance coverage for companies of all sizes, providing protection against cyber risks such as data breaches, identity theft, and cyber extortion. Their policies include features such as 24/7 incident response support and coverage for legal expenses.

  4. Tata AIG General Insurance: Tata AIG offers cyber risk insurance solutions designed to help businesses mitigate financial losses and liabilities due to cyber threats. Their policies provide coverage for data breaches, network security failures, and cyber extortion, among other risks.

  5. Future Generali India Insurance: Future Generali offers cyber insurance policies that cover businesses against cyber risks including data breaches, cyber extortion, and business interruption. Their policies include features such as coverage for forensic investigation expenses and public relations assistance.

  6. Reliance General Insurance: Reliance General offers cyber insurance coverage to protect businesses from cyber risks such as data breaches, malware attacks, and cyber extortion. Their policies provide coverage for expenses related to data recovery, legal defence costs, and regulatory fines.

  7. New India Assurance: New India Assurance offers cyber insurance solutions designed to help businesses manage cyber risks and protect against financial losses. Their policies provide coverage for data breaches, cyber extortion, and other cyber incidents, with options for customization based on the insured’s specific requirements.

  8. National Insurance Company: National Insurance Company provides cyber insurance coverage for businesses operating in India, offering protection against cyber risks such as data breaches, network security failures, and cyber extortion. Their policies include features such as coverage for business interruption losses and legal expenses.

These are some of the leading cyber insurance providers in India, but the list is not exhaustive. Businesses seeking cyber insurance coverage should evaluate policies from multiple insurers, compare coverage options, limits, and premiums, and consider consulting with insurance brokers or advisors to find the best-suited policy for their specific needs and risk profile. Additionally, it is important to review the terms and conditions of the policy carefully to ensure comprehensive coverage and compliance with regulatory requirements.

Challenges and Opportunities

While the demand for cyber insurance is on the rise in India, there are several challenges that insurers and businesses face in this evolving landscape. These include:

  1. Limited awareness: Many businesses, especially SMEs, lack awareness about the importance of cyber insurance and may underestimate their cyber risk exposure.
  2. Complexity of risk assessment: Assessing cyber risk accurately can be challenging due to the evolving nature of cyber threats and the interconnectedness of digital ecosystems.
  3. Affordability: Some businesses may perceive cyber insurance premiums as costly, especially smaller companies with limited budgets.

Despite these challenges, the cyber insurance market in India presents significant opportunities for insurers, reinsurers, and other stakeholders. With the right approach, insurers can tap into this burgeoning market and offer innovative solutions tailored to the needs of Indian businesses.

Best Practices for Procuring Cyber Insurance

When considering cyber insurance in India, businesses should adhere to the following best practices:

  1. Risk assessment: Conduct a comprehensive risk assessment to identify potential cyber threats and vulnerabilities specific to your business operations.
  2. Policy customization: Work closely with insurers to tailor cyber insurance policies to your organization’s specific risk profile and coverage requirements.
  3. Regulatory compliance: Ensure that the cyber insurance policy complies with relevant regulations, including the PDPB and other data protection laws in India.
  4. Continuous monitoring and review: Regularly monitor and review your cyber insurance coverage to keep pace with evolving cyber risks and organizational changes.
  5. Incident response planning: Develop a robust incident response plan that outlines procedures for detecting, responding to, and recovering from cyber incidents effectively.

In conclusion, cyber insurance plays a critical role in helping businesses in India mitigate the financial impact of cyber threats. As cybercrime continues to evolve, organizations must recognize the importance of cyber insurance as a vital component of their overall risk management strategy. By understanding the key components of cyber insurance policies, addressing challenges, and adhering to best practices, businesses can effectively navigate the complex landscape of cyber risk and safeguard their digital assets and reputation.

Additionally, here are 20 tips to consider when purchasing cyber insurance in India:

  1. Understand your risk profile: Conduct a thorough assessment of your company’s cyber risks, including vulnerabilities, potential threats, and the value of digital assets at risk.
  2. Identify coverage needs: Determine the specific areas of cyber risk you need coverage for, such as data breaches, business interruption, cyber extortion, or regulatory fines.
  3. Research insurers: Explore different insurance providers in the Indian market and compare their cyber insurance offerings, including coverage options, limits, deductibles, and premiums.
  4. Evaluate policy coverage: Carefully review the coverage provided by each policy, ensuring it aligns with your business’s risk profile and regulatory requirements.
  5. Consider tailored coverage: Look for insurers that offer customizable policies allowing you to tailor coverage to your company’s specific needs and operations.
  6. Assess financial strength: Select insurers with a strong financial rating to ensure they can fulfil their obligations in the event of a large-scale cyber incident.
  7. Check claims process: Evaluate the insurer’s claims process, including the ease of filing claims and the turnaround time for claims settlement.
  8. Review exclusions: Pay close attention to policy exclusions to understand what events or circumstances are not covered by the insurance policy.
  9. Look for regulatory compliance coverage: Ensure the policy covers expenses related to regulatory fines and penalties imposed for non-compliance with data protection laws, including the Personal Data Protection Bill (PDPB) in India.
  10. Determine incident response services: Check if the policy includes access to incident response services, such as forensic investigation, legal advice, and public relations support, to mitigate the impact of a cyber-incident.
  11. Evaluate retroactive coverage: Consider policies that offer retroactive coverage, which may cover incidents that occurred before the policy’s inception date but were discovered during the policy period.
  12. Assess network security requirements: Some insurers may require companies to meet specific network security requirements or implement cyber security measures as a condition for coverage. Ensure you understand and comply with these requirements.
  13. Verify business interruption insurance: Compare the coverage provided for business interruption losses caused by a cyber-incident, including revenue loss, extra expenses, and recovery costs.
  14. Consider data breach notification costs: Look for coverage for expenses associated with data breach notification, including customer notifications, credit monitoring services, and regulatory filings.
  15. Check cyber extortion coverage: Consider policies that provide coverage for expenses related to cyber extortion attempts, including ransom ware attacks, such as ransom payments and forensic investigation costs.
  16. Look for reputable partnerships: Some insurer’s partner with cyber security firms to offer additional risk management services to policyholders. Consider insurers with reputable partnerships in the cyber security industry.
  17. Review policy limits and deductibles: Evaluate the policy limits and deductibles to ensure they are sufficient to cover potential losses and align with your company’s risk tolerance.
  18. Understand premium costs: Compare premium prices across different insurers and policies, considering factors such as coverage limits, deductibles, and additional services included in the policy.
  19. Seek expert advice: Consider consulting with cyber security professionals, insurance brokers, or legal advisors specializing in cyber insurance to help you navigate the purchasing process and select the right policy for your company.
  20. Regularly review and update coverage: Cyber risks are constantly evolving, so it is essential to regularly review and update your cyber insurance coverage to ensure it remains adequate and effective in mitigating your company’s cyber risks.

Additionally, here are 20 tips specifically tailored for filing claims under cyber insurance in India:

  1. Prompt notification: Notify your insurance provider as soon as you discover a cyber-incident. Prompt reporting is often a requirement for filing a successful claim.
  2. Understand coverage details: Familiarize yourself with the specific coverage provided by your cyber insurance policy, including any exclusions and limitations.
  3. Gather evidence: Collect and preserve evidence related to the cyber incident, such as log files, network traffic data, and screenshots. This evidence will support your claim during the investigation process.
  4. Engage professionals: Consider hiring cyber security experts or forensic specialists to assist with the investigation and documentation of the cyber incident. Their expertise can strengthen your claim.
  5. Document expenses: Maintain detailed records of all expenses incurred as a result of the cyber incident, including costs related to data recovery, legal fees, and regulatory fines.
  6. Follow claims procedures: Adhere to the claims filing procedures outlined by your insurance provider. This may include completing specific forms and providing detailed documentation.
  7. Maintain communication: Stay in regular contact with your insurance provider throughout the claims process. Keep them informed of any developments and be responsive to their requests for information.
  8. Understand deductibles: Be aware of the deductible amount specified in your policy. You will be responsible for paying this amount before your insurance coverage applies.
  9. Provide accurate information: Ensure that all information provided in your claim’s documentation is accurate and complete. Inaccurate or misleading information could delay the claims process.
  10. Review coverage limits: Understand the coverage limits specified in your policy. Ensure your claim falls within these limits to avoid any disputes with your insurance provider.
  11. Follow regulatory requirements: Ensure that your claims documentation complies with all relevant legal and regulatory requirements, including data protection laws in India.
  12. Seek legal advice: Consider consulting with legal experts who specialize in cyber insurance claims. They can offer guidance on navigating the claims process and protecting your legal rights.
  13. Be prepared for investigations: Expect your insurance provider to conduct a thorough investigation into the cyber incident. Cooperate fully with their inquiries and provide any requested information promptly.
  14. Document business interruption: If the cyber incident disrupts your business operations, document the impact on revenue, expenses, and productivity. This information will support your claim for business interruption losses.
  15. Review settlement offers carefully: Review any settlement offers provided by your insurance provider carefully. Ensure the offer adequately compensates you for your losses and expenses.
  16. Maintain records of communications: Keep records of all communications with your insurance provider, including emails, letters, and phone calls. This will help you track the progress of your claim and ensure accountability.
  17. Be patient: Understand that the claims process may take time, especially for complex cyber incidents. Be patient and avoid rushing the process, as thoroughness is essential for a successful claim.
  18. Seek clarification if needed: If you have any questions or concerns about the claims process or your insurance coverage, don’t hesitate to seek clarification from your insurance provider.
  19. Document disputes: If you encounter any disputes or challenges during the claims process, document them carefully. This information can be helpful if you need to escalate the issue or seek legal recourse.
  20. Review policy renewal terms: Finally, review the terms of your policy renewal carefully. Consider any changes in coverage or premiums and determine whether the policy still meets your needs.

Following these tips can help streamline the claims process and increase the likelihood of a successful outcome when filing a cyber-insurance claim in India.

Additionally, here are some key factors that may impact the cost of cyber insurance in India:

  1. Business size and industry: Larger companies with more significant digital footprints and higher revenue streams generally face greater cyber risk exposure and may therefore incur higher insurance premiums. Additionally, certain industries, such as finance, healthcare, and technology, which handle sensitive data and are common targets for cyber-attacks, may also face higher insurance costs.
  2. Risk profile: Insurers assess the risk profile of a business based on various factors, including its cyber security measures, past history of cyber incidents, and compliance with industry regulations. Companies with strong cyber security practices and a low incidence of cyber incidents may be able to negotiate lower insurance premiums.
  3. Insurance limits and deductibles: The extent of coverage and the deductible amount chosen by the insured can impact the cost of cyber insurance. Higher coverage limits and lower deductibles usually result in higher premiums, while lower coverage limits and higher deductibles may reduce premiums but increase out-of-pocket costs in the event of a claim.
  4. Type of coverage: The specific types of coverage included in the cyber insurance policy also affect the cost. Policies offering comprehensive coverage for a wide range of cyber risks, such as data breaches, business interruption, and cyber extortion, may have higher premiums compared to more limited coverage options.
  5. Claims history: Insurers may consider the insured’s claims history when determining the cost of cyber insurance. Companies with a track record of frequent or significant cyber incidents may face higher premiums due to their perceived higher risk profile.
  6. Security measures: Insurers may offer premium discounts or incentives for companies that implement strong cyber security measures and risk mitigation strategies. Demonstrating strong cyber security practices, such as regular security assessments, employee training programs, and incident response plans, may help lower insurance costs.
  7. Regulatory compliance requirements: Compliance with data protection policies, such as the Personal Data Protection Bill (PDPB) and the General Data Protection Regulation (GDPR), may impact the cost of cyber insurance. Companies that demonstrate compliance with applicable regulatory requirements may qualify for lower premiums.
  8. Market competition: The level of competition among insurers in the cyber insurance market can also affect pricing. In a competitive market, insurers may offer more competitive premiums and additional coverage benefits to attract customers.

It is important for companies considering cyber insurance in India to carefully assess their cyber risk exposure, review policy options from multiple insurers, and work with insurance brokers or advisors to negotiate favourable terms and pricing. While cyber insurance can be a valuable investment in protecting against financial losses from cyber threats, it is important to balance the cost of insurance with the level of coverage and risk management benefits provided.


Navigating Insurance Options: Comprehensive Coverage for Diabetics in India

Navigating Insurance Options: Comprehensive Coverage for Diabetics in India

Navigating Insurance Options: Comprehensive Coverage for Diabetics in India

As the prevalence of diabetes continues to rise steadily in India, individuals grappling with this chronic condition encounter myriad challenges, particularly in obtaining comprehensive health insurance coverage. The constant management and specialized care required for diabetes underscore the necessity for individuals with this condition to secure adequate insurance coverage. This article provides an in-depth exploration of the insurance landscape for diabetics in India, delving into existing challenges, examining the current scenario, and proposing potential solutions to bridge the existing gaps.

                                                                                                                              Subas Tiwari

Understanding the Diabetes Epidemic in India

Diabetes has emerged as a significant public health concern in India, witnessing a concerning surge in cases over the past few decades. According to the International Diabetes Federation (IDF), India is home to over 77 million adults with diabetes, a number expected to escalate in the coming years. Given the economic and health implications of diabetes, there is a critical need for a comprehensive approach, including robust insurance coverage.

The Current State of Insurance Coverage for Diabetics

While health insurance is pivotal for managing healthcare costs in India, individuals with pre-existing conditions such as diabetes often encounter hurdles in obtaining comprehensive coverage. Diabetes is typically classified as a pre-existing condition by insurance companies, resulting in higher premiums and exclusion of certain benefits.

Challenges Faced by Diabetics in Obtaining Insurance:

  1. Higher Premiums: The perceived risk associated with diabetes often leads to elevated insurance premiums, acting as a financial deterrent for many individuals seeking adequate coverage.
  2. Waiting Periods and Exclusions: Insurance policies commonly impose waiting periods and exclusions for pre-existing conditions, leaving diabetics without coverage for diabetes-related expenses during these periods and incurring out-of-pocket expenses.
  3. Limited Coverage for Complications: Many insurance policies in India may not provide sufficient coverage for complications arising from diabetes, leaving individuals vulnerable to significant medical costs.
  4. Lack of Awareness: A lack of awareness about insurance options and specific coverage needs can result in inadequate financial protection for individuals living with diabetes.

Initiatives and Solutions

Recognizing the challenges faced by diabetics, both the government and private insurance providers are taking steps to enhance access to comprehensive coverage. Key initiatives and potential solutions include:

  1. Government Health Schemes: The implementation of health insurance schemes like Ayushman Bharat aims to provide financial protection to citizens, including those with pre-existing conditions like diabetes.
  2. Specialized Diabetes Insurance Policies: Some insurance companies now offer specialized policies tailored to the needs of diabetics, covering routine check-ups, medications, and specific complications associated with diabetes.
  3. Education and Awareness Programs: Increasing awareness about the importance of health insurance among individuals with diabetes is crucial to empower them in making informed decisions and navigating the complex landscape of coverage options.
  4. Advocacy for Policy Changes: Diabetes advocacy groups and healthcare organizations can play a vital role in advocating for policy changes that address the unique needs of diabetics, including standardized coverage for diabetes-related expenses and fair premium structures.

Despite existing challenges, there is a growing recognition of the need for comprehensive insurance coverage for individuals with diabetes in India. The collaborative efforts of both public and private stakeholders reflect a concerted attempt to bridge the gap and ensure diabetics have access to the financial protection they require. As India contends with the diabetes epidemic, addressing insurance challenges for individuals with the condition is crucial for building a healthier and more resilient society.

Best Health Insurance Plans for Diabetics in India

For diabetes-related treatments, individuals can opt for health insurance policies designed specifically for diabetes. Indian health insurers offer exclusive plans such as Star Health Diabetes Safe, ICICI Prudential Diabetes Care, and National Insurance Varishta Mediclaim, among others.

According to an IDF report, India is projected to witness a substantial increase in diabetes cases, with an estimated 93 million cases by 2030 and 125 million cases by 2045. Consequently, having health insurance for diabetes is crucial, providing tailored financial support for comprehensive coverage against complications or diseases related to this condition. Therefore, investing in such insurance is of utmost importance.

In India, diabetes insurance typically covers regular hospitalization expenses for both diabetic and non-diabetic complications. Regular health insurance plans often exclude coverage for pre-existing conditions and may impose waiting periods before providing coverage. However, specialized diabetes insurance plans are specifically designed to address high blood sugar levels and related illnesses.

These custom-tailored plans typically offer coverage for both Type 1 and Type 2 diabetes, with options for Individual or Family Floater plans based on individual needs. In addition to hospitalization coverage, health insurance for diabetes may extend to outpatient expenses, such as medical consultations and diagnostic tests. Some plans also include a Personal Accident cover, providing payment in the event of accidental death of the insured individual.

This Insurance Companies are offering Diabetes Health Insurance Plans

Diabetes health insurance is specialized medical coverage designed to address expenses related to diabetes treatment and hospitalization. This type of insurance plan caters to high blood sugar levels resulting from inadequate insulin secretion in the body, leading to severe complications like renal failure, vision loss, and heart stroke.

  1. Aditya Birla Activ Health Enhanced Diabetes Plan
  • Comprehensive insurance policy covering diabetes and other pre-existing conditions like hypertension.
  • Sum insured limit up to Rs.2 crore.
  • Coverage available for both individual and family floater basis.
  • Benefits include coverage for medicines, diagnostic tests, and consultation fees for critical illnesses.
  1. Care Freedom Diabetes Health Insurance Plan
  • Comprehensive insurance policy for both individual and family floater basis.
  • Sum insured ranges from Rs.3 lakh to Rs.5 lakh.
  • Coverage for dialysis treatment with a claim limit of up to Rs.1,000 per sitting for a maximum of 24 months.
  • Health check-up facilities for diabetes and cardiac health check-ups.
  1. National Varishtha Diabetes Mediclaim Policy
  • Specifically designed for senior citizens aged 60 to 80 years.
  • Coverage for hospitalization and domiciliary hospitalization expenses.
  • Add-on benefit for coverage of diabetes and hypertension.
  • Coverage for cataract surgeries and Benign Prostatic Hyperplasia.
  1. Star Health and Allied Diabetes Safe Insurance Plan
  • Designed for individuals aged 18 to 65 years suffering from Diabetes Mellitus.
  • Covers hospitalization expenses related to diabetes complications, including room rent, nursing charges, and surgeon’s fees.
  • Coverage for modern treatments like Oral Chemotherapy, Uterine Artery Embolization, and more.
  • Provides 100% personal accident cover.
  1. HDFC Energy Diabetes Policy
  • Specifically designed for people with diabetes.
  • Covers day care treatments and organ donor expenses.
  • Lifelong renewability with a unique Wellness program.
  • Coverage for ambulance services and a personalized health coach.
  1. ICICI AdvantEdge Diabetes Health Policy
  • Flexible and customizable plan covering pre and post-hospitalization expenses.
  • Includes a wellness program and Domestic Air Ambulance coverage.
  • Lifelong renewability with an annual health check-up.
  1. Niva Bupa Diabetes Reassure 2.0 Policy
  • Offers three variants: bronze, silver, and platinum, for both individual and family floaters.
  • High sum insured variants available, ranging from Rs.5 lakh to Rs.1 crore.
  • Unlimited e-consultations and personal accident benefits.
  • Second medical opinion and health check-up coverage from day one.
  1. Navi Diabetes Health Insurance Plan
  • Coverage up to Rs.1 crore.
  • Unlimited online consultations and coverage for medical treatments at home.
  • Coverage for organ donor expenses and air ambulance.
  • Comprehensive coverage for hospitalization expenses.
  1. Apollo Munich’s Diabetes Health Insurance Plan:
  • One-year validity period with two options: Silver and Gold.
  • No waiting period, coverage starts immediately.
  • In-patient hospitalization costs covered.
  • 25% discount for maintaining good health.
  1. National Varistha Diabetes Mediclaim Policy
  • One-year tenure with renewal until the age of 90 years.
  • Hospitalization covered up to Rs.1 lakh, critical illness up to Rs.2 lakh.
  • Coverage for medicine, drugs, and diagnostic charges.
  • Emergency ambulance charges covered up to Rs.1,000 for each policy year.

What is covered?

Diabetes health insurance plans typically provide coverage for various aspects, including:

  1. In-patient hospitalization expenses for diabetes and its complications.
  2. Immediate coverage for diabetes-related ailments without any waiting period.
  3. Coverage for day care treatment.
  4. Pre and post-hospitalization medical expenses.
  5. Portability benefit for transferring policies between insurers.
  6. Restore benefits for reinstating the sum insured.
  7. No Claim Bonus (NCB) for premium discounts.
  8. Coverage for organ donor expenses.
  9. Tax benefits under Section 80D.
  10. AYUSH treatment coverage.
  11. Ambulance cover for emergency services.
  12. Diagnostic test coverage.
  13. Domiciliary hospitalization coverage.
  14. Annual health check-ups.
  15. Personal accident cover.
  16. Companion benefit for family members.
  17. Dialysis cover for kidney complications.
  18. Consumable cover for specific hospitalization items.

What is not covered?

Exclusions typically found in diabetes insurance plans include:

  1. Other pre-existing diseases.
  2. Self-inflicted injuries.
  3. War-related treatments or hospitalizations.
  4. Cosmetic surgery for non-medical purposes.
  5. Treatment of obesity unrelated to diabetes management.
  6. Venereal or sexually transmitted diseases.
  7. Hospitalization without a doctor’s recommendation.
  8. Prenatal and postnatal expenses.
  9. Specific exclusions for Type 1 and Type 2 diabetes.

How to Buy Diabetes Health Insurance Policy?

To purchase diabetes health insurance, follow these steps:

  1. Visit an IRDAI-approved insurance portal to search, compare, and buy policies easily.
  2. Click on ‘Buy Now’ and choose the policy aligning with your requirements.
  3. Follow the instructions to make the payment on the insurer’s portal.
  4. Receive the soft copy of the policy document via email.

Benefits of Diabetes Health Insurance

Advantages of health insurance for individuals with diabetes in India include coverage for:

  • Hospitalization expenses related to diabetes complications.
  • Reimbursement for outpatient expenses.
  • Hospitalization expenses for complications not directly related to diabetes.
  • Compensation in case of accidental death.
  • Tax benefits under Section 80D.
Eligibility for Diabetes Health Insurance Eligibility criteria depend on the insurer and the chosen plan, including age, medical tests, disclosure of pre-existing illnesses, waiting periods, and specific diabetes types covered. It is crucial to read the policy document for detailed eligibility criteria. FAQs on available Health Insurance Plans for Diabetics in India
  1. Which documents are typically required to purchase diabetes health insurance?
    • Proof of age, address proof, passport size photographs, identity proof, and medical reports may be requested. Additional documents may vary by insurer.
  2. What is the waiting period for diabetes insurance coverage?
    • While regular plans may have waiting periods of 24 to 48 months, diabetes-specific plans may have no waiting period.
  3. What is the coverage amount offered by diabetes health insurance?
    • Coverage amounts range from Rs.5 lakh to Rs.10 lakh, with enhanced plans offering coverage up to Rs.1 crore.
  4. Is it necessary to disclose diabetic condition when purchasing health insurance?
    • Yes, it is mandatory to inform the insurer about your diabetic condition to ensure accurate coverage and prevent claim rejection.
  5. What expenses do health insurance plans for diabetes cover for both Type 1 and Type 2 Diabetes?
    • Coverage typically includes doctor’s fees, prescribed medicines, diagnostic tests, and hospitalization expenses related to diabetes care.
    This comprehensive guide aims to assist individuals in navigating the complex landscape of health insurance for diabetes in India, providing insights into available plans, coverage details, and essential considerations. Always review policy documents and consult with insurers for the latest information.

Navigating the complex landscape of health insurance for diabetes in India requires careful consideration and informed decision-making. To assist individuals in this process, here are 20 essential tips for buying a Diabetes Health Insurance Plan:

  1. Understand Your Diabetes Condition: Before embarking on the journey of purchasing insurance, ensure a clear understanding of your diabetes condition, including whether it is Type 1 or Type 2, existing complications, and your current health status.
  2. Start Early: Commence your research and acquisition of a diabetes health insurance plan at an early stage. Starting early not only allows for better coverage but also often results in lower premiums.
  3. Compare Plans: Take the time to compare different insurance plans available in the market. This step ensures that the chosen plan aligns with your specific diabetes-related needs and preferences.
  4. Specialized Diabetes Plans: Consider opting for specialized diabetes insurance plans. These are tailor-made to comprehensively cover various expenses related to diabetes, offering a more focused approach to your healthcare needs.
  5. Coverage for Complications: Ensure that the selected insurance plan provides adequate coverage for complications arising from diabetes. This includes coverage for conditions such as kidney diseases, vision-related issues, and cardiovascular problems.
  6. Waiting Periods: Understand the waiting periods associated with the policy, especially concerning pre-existing conditions. Opt for plans with shorter waiting periods to expedite coverage for diabetes-related expenses.
  7. Premiums and Affordability: Assess the premium costs associated with different plans and choose one that is not only affordable but also provides the necessary coverage for managing your diabetes effectively.
  8. Network Hospitals: Check the list of network hospitals associated with the insurance provider. Ensuring access to quality healthcare facilities within the network is crucial for efficient and cost-effective treatment.
  9. Claim Process: Familiarize yourself with the claim process of the chosen insurance plan. Understanding the documentation requirements and procedures ensures a smooth and hassle-free experience during claims.
  10. Pre-Existing Condition Disclosure: Accurately disclose your diabetic condition to the insurance provider. Non-disclosure of pre-existing conditions may lead to claim rejections, emphasizing the importance of transparent communication.
  11. Renewability and Lifetime Coverage: Opt for a plan that offers lifelong renewability. Given that diabetes requires long-term management, continuous coverage is essential for ongoing healthcare needs.
  12. Coverage for Routine Check-ups: Look for plans that cover routine check-ups, preventive screenings, and medications related to diabetes management. Comprehensive coverage for these aspects contributes to effective healthcare.
  13. Sub-Limits and Co-payments: Be aware of sub-limits and co-payment clauses in the policy. Ensure that these terms are reasonable and won’t impose a significant financial burden on your out-of-pocket expenses.
  14. Coverage for Family Members: If needed, explore family floater options to cover your immediate family members under the same plan. This provides a convenient and comprehensive solution for the entire family’s healthcare needs.
  15. Exclusions: Understand the exclusions outlined in the policy. Awareness of specific treatments or procedures not covered helps prevent surprises and allows for better financial planning during a claim.
  16. Personalized Plans: Choose plans that allow customization based on your specific health needs. This ensures that your unique diabetes-related requirements are adequately addressed within the policy.
  17. Add-On Benefits: Explore the availability of add-on benefits such as critical illness cover, personal accident cover, and other riders. These additions can enhance the overall coverage of the insurance plan.
  18. Claim Settlement Ratio: Check the claim settlement ratio of the insurance provider. A higher ratio indicates the efficiency of the company in processing and settling claims, providing confidence in their services.
  19. Customer Reviews and Feedback: Read customer reviews and testimonials to gain insights into the experiences of other policyholders with the insurance provider. Real-life experiences offer valuable perspectives on the company’s service quality.
  20. Consult a Financial Advisor: If needed, seek advice from a financial advisor or insurance expert. A professional can provide personalized guidance based on your specific health and financial situation, aiding in making an informed decision.

Remember, investing time and effort into understanding and choosing the right Diabetes Health Insurance Plan is crucial for long-term financial security and effective diabetes management. Always read the policy documents carefully, and don’t hesitate to ask questions to clarify any doubts before making a decision.


Understanding International Travel Insurance

Understanding International Travel Insurance

International travel insurance serves as a financial product crafted to shield travellers from unforeseen events and expenses while journeying outside their home country. Its primary objective is to furnish coverage for medical emergencies, trip cancellations, lost baggage, and other unexpected occurrences that may disrupt or negatively impact a trip.

                                                                                                                         Subas Tiwari

Importance of International Travel Insurance 

Travellers often underestimate the potential risks associated with international travel. Having travel insurance is essential for several reasons:

  • Medical Emergencies: Varied healthcare systems globally and exorbitant medical expenses abroad necessitate travel insurance for necessary treatment without facing overwhelming bills.
  • Trip Cancellations: Unforeseen circumstances like illness, natural disasters, or work commitments leading to trip cancellations can be financially mitigated through travel insurance.
  • Lost or Delayed Baggage: Airlines occasionally misplace or delay baggage, and travel insurance provides coverage for the replacement of essential items and clothing.
  • Emergency Evacuation: In the event of a natural disaster or political unrest, travel insurance may cover the costs of emergency evacuation.

What Does Travel Insurance Typically Cover?

Coverage under international travel insurance can fluctuate, but it often includes:

  1. Medical Expenses: Encompasses the cost of medical treatment, hospital stays, and medication.
  2. Trip Cancellation/Interruption: Reimburses non-refundable trip expenses if the trip is cancelled or cut short due to covered reasons.
  3. Emergency Evacuation: Covers the cost of transportation to the nearest adequate medical facility.
  4. Baggage and Personal Belongings: Provides compensation for lost, stolen, or damaged baggage and personal items.
  5. Travel Delay: Reimburses additional expenses due to delayed departures or arrivals.
  6. Accidental Death and Dismemberment: Pays a benefit in the event of death or serious injury.

Types of International Travel Insurance 

  1. Single Trip Insurance-This insurance provides coverage for a specific journey, commencing when you depart and concluding upon your return.
  2. Annual/Multi-Trip-Insurance covering multiple trips within a specified time frame, usually a year, this is a cost-effective option for frequent travellers.
  3. Medical Travel Insurance-Focused on covering medical expenses and emergency medical assistance during your trip.
  4. Evacuation Insurance-Covers the cost of emergency evacuation to the nearest suitable medical facility.
  5. Trip Cancellation and Interruption Insurance-Reimburses non-refundable trip expenses if you have to cancel or cut short your trip due to covered reasons.
  6. Baggage and Personal Belongings Insurance-Provides compensation for lost, stolen, or damaged baggage and personal items during your trip.
  7. Adventure or Hazardous Activities– Coverage for travellers engaging in adventurous activities, such as skiing or scuba diving, specialized coverage may be necessary.

How to Choose the Right International Travel Insurance 

  1. Assessing Your Needs– Consider your travel habits, health, and the nature of your trip. Frequent travellers might benefit from an annual policy, while those with pre-existing medical conditions should ensure comprehensive coverage.
  2. Coverage Limits and Exclusions– Review coverage limits and exclusions to understand situations where coverage may not apply.
  3. Pre-Existing Medical Conditions– Declare any pre-existing medical conditions during the application process to avoid denied claims.
  4. Duration of Coverage– Select coverage that matches the duration of your trip and ensures a grace period for unexpected delays.
  5. Provider Reputation and Ratings– Research insurance providers for a good reputation, strong financial stability, and positive customer reviews.
  6. Cost of the Insurance– Prioritize coverage over price, as cheap insurance might not provide adequate protection in emergencies.
  7. Understanding Policy Terms and Conditions– Thoroughly read and comprehend the policy’s terms and conditions, including the claims process and emergency assistance contact information.

Key Features of International Travel Insurance Policies 

  1. Emergency Medical Assistance– A reliable travel insurance policy should offer 24/7 emergency medical assistance, providing access to medical professionals and facilitating emergency medical evacuations.
  2. Trip Cancellation and Interruption Coverage– This feature is crucial for recovering non-refundable trip expenses if unforeseen circumstances force you to cancel or cut short your trip.
  3. Baggage and Personal Belongings Coverage– Coverage for lost, stolen, or damaged baggage ensures you can replace essential items during your trip.
  4. 24/7 Customer Support– Accessible and responsive customer support is vital for assistance in emergencies and guidance through the claims process.
  5. Travel Assistance Services– Some policies offer additional travel assistance services, such as help with lost passports, translation services, and legal assistance.

Steps to Purchase International Travel Insurance 

  1. Research and Compare Plans– Begin by researching different insurance providers and comparing plans based on your specific needs.
  2. Check Visa Requirements– Check if your destination country requires proof of travel insurance for visa approval.
  3. Read Reviews and Testimonials– Gauge the reliability and customer satisfaction of insurance providers by reading reviews and testimonials from other travellers.
  4. Understand the Claim Process– Familiarize yourself with the claim process, required documentation, and emergency contact information.
  5. Purchase Insurance in Advance– Buy travel insurance as soon as you book your trip to ensure coverage for unexpected events before your departure.

What to Do in Case of an Emergency Abroad 

  1. Contacting Your Insurance Provider– In emergencies, contact your insurance provider immediately and follow their instructions for seeking medical attention or assistance.
  2. Seeking Medical Attention– Visit the nearest medical facility if medical attention is needed. Keep receipts and documentation for reimbursement.
  3. Documenting the Incident– Document incidents with photos, witness statements, and official reports for use in the claims process.
  4. Filing a Claim– Initiate the claims process promptly, providing all necessary documentation and following the instructions from your insurance provider.

Common Mistakes to Avoid 

  1. Underestimating Coverage Needs– Comprehensive coverage is crucial, so don’t underestimate your insurance needs and consider potential risks.
  2. Ignoring Policy Exclusions– Read and understand policy exclusions to avoid disappointment when making a claim.
  3. Not Disclosing Pre-Existing Conditions– Honesty about pre-existing conditions is vital to avoid denied claims.
  4. Waiting Until the Last Minute– Purchase insurance soon after booking to avoid vulnerabilities to unforeseen events.

FAQs about International Travel Insurance 

  1. Do I Really Need Travel Insurance? While not mandatory, travel insurance is highly recommended for international travel to protect against unexpected events.
  2. Can I Purchase Insurance after I’ve Started My Trip? Most providers require coverage to be purchased before departure, although some may offer limited coverage if bought shortly after departure.
  3. What Happens if I Have a Pre-Existing Medical Condition? Declare pre-existing conditions during the application process. Coverage varies among policies, so choose one that meets your needs.
  4. How Long Should My Insurance Coverage Last? Ensure coverage for the entire trip duration, including any planned extensions.
  5. Is Travel Insurance Worth the Cost? The value becomes apparent in unexpected events, offering peace of mind and financial protection.

In conclusion, international travel insurance is a vital part of trip planning, providing protection and peace of mind. By understanding coverage types, assessing needs, and choosing a reputable provider, travellers can ensure a worry-free and enjoyable experience. Thoroughly read and comprehend policy terms, follow proper procedures in emergencies, and purchase insurance well in advance for maximum benefits. Safe travels!

Premium Comparison for 2 members for USA travel (Age- 40 Years, Duration of travel- 30 Days)

Company Name

Product Name

Medical Expenses

Loss of Passport

Baggage Loss

Premium (GST included)

Tata AIG

Travel Guard – Gold




₹ 4,196

Niva Bupa

Travel Assure




₹ 2,467


Travel Care Individual




₹ 2,812

Care Health

Explore Silver


Not Cover

Not Cover

₹ 3,009

Bajaj Allianz

Travel Elite




₹ 3,722

DIGIT General Insurance

Carefree Option




₹ 2,456

Royal Sundaram

Travel Shield Single Trip




₹ 3,288

SBI General Insurance





₹ 5,890

New India Assurance

Overseas Travel Ease




₹ 4,149

Oriental Insurance

Business and Holiday – Silver B




₹ 4,740

Quotes taken from: as on 13th December 2023

Choosing the best international travel insurance in India is crucial for a safe journey. Here are 30 tips to help you decide:

  • Coverage Types: Understand coverage, including medical expenses, trip cancellations, and baggage loss.
  • Medical Coverage: Ensure adequate coverage for emergencies, hospitalization, and evacuation.
  • Policy Duration: Check that the policy covers your entire trip.
  • Geographical Coverage: Confirm coverage for all planned countries.
  • Emergency Evacuation: Verify coverage, especially for remote locations.
  • Pre-existing Conditions: Check coverage for pre-existing medical conditions.
  • Age Limit: Be aware of age restrictions.
  • Adventure Sports: Confirm coverage for adventurous activities.
  • Trip Cancellation: Evaluate coverage and claim conditions.
  • Baggage Coverage: Check for lost, stolen, or damaged baggage.
  • Policy Exclusions: Understand exclusions to avoid surprises.
  • Claim Process: Ensure a straightforward and transparent process.
  • Network Hospitals: Choose plans with a hospital network at your destination.
  • Deductibles: Know the amount you pay before coverage starts.
  • Coverage Limits: Check maximum coverage for medical and baggage.
  • Renewability: Opt for easy policy renewability.
  • Customer Reviews: Read reviews for insights.
  • Insurer’s Financial Strength: Choose a financially stable provider.
  • Cancellation Policies: Understand the insurer’s cancellation policies.
  • 24/7 Assistance: Ensure round-the-clock emergency assistance.
  • Policy Customization: Look for customizable policies.
  • Travel Alerts: Check for destination-related alerts.
  • Additional Riders: Explore add-ons for enhanced coverage.
  • Policy Language: Confirm understandable policy documents.
  • Refund Policies: Understand refund policies.
  • Ease of Purchase: Choose a user-friendly online platform.
  • Family Coverage: Explore family options for cost-effectiveness.
  • Policy Inclusions: Understand all inclusions.
  • Compare Plans: Compare multiple plans.
  • Read the Fine Print: Carefully read policy details.

For claim success, be thorough:

  • Read and Understand: Understand coverage, terms, and exclusions.
  • Full Disclosure: Provide accurate information on the application.
  • Pre-existing Conditions Declaration: Disclose pre-existing conditions.
  • Travel Itinerary Accuracy: Double-check travel details.
  • Document All Losses: Thoroughly document incidents.
  • Timely Notification: Report incidents promptly.
  • Follow the Claim Process: Adhere to specified procedures.
  • Keep Copies: Maintain copies of relevant documents.
  • Emergency Assistance: Use the emergency hotline for guidance.
  • Adherence to Policy: Ensure claims align with policy coverage.
  • Avoid Risky Activities: Refrain from excluded or high-risk activities.
  • Timely Reporting: Report stolen items promptly.
  • Continuous Coverage: Avoid coverage gaps.
  • Review Exclusions: Understand and avoid excluded situations.
  • Valid Documents: Ensure valid travel documents.
  • Alcohol and Drug Use: Know the policy stance on substance-related incidents.
  • Seek Approval: Get approval for high-value items.
  • Emergency Evacuation Approval: Seek approval for evacuation services.

By following these guidelines, travellers can make informed decisions and minimize the risk of claim rejection when purchasing international travel insurance in India.


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.

Critical Illness Health Insurance Policies

Critical Illness Health Insurance Policies

Healthcare costs are rising exponentially, and the incidence of critical illnesses is on the rise in India. A critical illness health insurance policy is designed to offer financial protection and support when one is diagnosed with a covered critical illness. This report delves into the specifics of critical illness health insurance policies available in India.

                                                                                                                                 Subas Tiwari

Definition of Critical Illness Health Insurance

Critical illness health insurance is a stand-alone policy that provides a lump-sum benefit to the policyholder upon the diagnosis of a covered critical illness. It is distinct from regular health insurance policies, which typically cover hospitalization and medical expenses. Critical illness policies offer a fixed payout to help policyholders meet medical costs, loss of income, or other financial requirements during treatment and recovery.

Key Features of Critical Illness Health Insurance Policies:

  1. List of Covered Critical Illnesses:Critical illness policies specify a list of illnesses covered, which usually includes cancer, heart attack, stroke, kidney failure, major organ transplant, paralysis, and more. The number of covered illnesses may vary among insurers.
  2. Lump-Sum Payout:The policyholder receives a lump-sum amount upon the diagnosis of a covered critical illness, irrespective of the actual medical expenses incurred.
  3. Waiting Period:Most policies have a waiting period from the policy inception during which claims related to pre-existing critical illnesses are not covered. The waiting period varies among insurers.
  4. Survival Period:Some policies require the policyholder to survive a specified number of days (e.g., 30 days) after diagnosis to be eligible for the payout.
  5. Renewable and Convertible Policies:Critical illness policies may be renewable annually, and some insurers offer the option to convert them into a comprehensive health insurance policy without a fresh medical examination.
  6. Tax Benefits: Policyholders can claim tax benefits under Section 80D of the Income Tax Act for premiums paid towards critical illness health insurance.

Coverage and Benefits:

Critical illness policies offer comprehensive coverage for a wide range of critical illnesses. The lump-sum payout can be used for various purposes, such as:

  1. Medical Expenses:It covers the cost of treatment, hospitalization, surgeries, medication, and post-operative care.
  2. Loss of Income:The payout can help cover lost income during the treatment and recovery period.
  3. Debt Repayment:Policyholders can use the payout to repay loans or mortgages.
  4. Lifestyle Changes:The money can be utilized for making necessary lifestyle adjustments due to the illness.

Advantages of Critical Illness Health Insurance Policies

  1. Financial Security:Critical illness policies provide a safety net, ensuring that policyholders and their families are financially secure during challenging times.
  2. No Co-Payment:Unlike regular health insurance policies, critical illness policies generally do not require any co-payment at the time of claim.
  3. Supplement to Existing Coverage:They complement existing health insurance coverage by offering additional protection against critical illnesses.
  4. Flexibility:Policyholders can choose the sum insured based on their requirements and affordability.
  5. Peace of Mind:Having a critical illness policy brings peace of mind, knowing that one is prepared for unforeseen medical emergencies.

Critical Illnesses (Major Inclusions)

  • Cancer
  • Cardiac Arrest
  • Open Chest CABG
  • Replacement/Repair of Heart Valve
  • Coma
  • Kidney Failure Requiring Dialysis
  • Stroke
  • Major Organ Transplant
  • Permanent Paralysis
  • Motor Neuron Disease
  • Multiple Sclerosis
  • Brain Tumour/Meningitis
  • Blindness/Loss of Sight
  • Lung Diseases
  • Liver Failure
  • Myocardial Infraction

The list given above is only indicative & illustrative & not exhaustive.

Limitations of Critical Illness Health Insurance Policies:

  1. Limited Coverage:Critical illness policies cover specific illnesses, leaving out several other health conditions.
  2. Waiting Period:Pre-existing conditions may not be covered during the initial waiting period.
  3. Survival Period:If the policyholder does not survive the specified period after diagnosis, the claim may be denied.
  4. Non-Medical Expenses:The lump-sum payout may not be sufficient to cover all non-medical expenses associated with critical illnesses.

Myths and Facts about Critical Illness health insurance:

Myth 1: Critical Illness Insurance is the same as Health Insurance.

Fact: Critical Illness Insurance and Health Insurance are two different types of insurance. While health insurance covers hospitalization expenses and medical treatments, critical illness insurance provides a lump-sum payment upon the diagnosis of a covered critical illness. The payout from critical illness insurance can be used at the policyholder’s discretion, such as covering non-medical expenses, loss of income, or seeking specialized treatments.

Myth 2: Critical Illness Insurance is unnecessary if you have a healthy lifestyle.

Fact: While a healthy lifestyle can reduce the risk of critical illnesses, it doesn’t guarantee immunity from them. Critical illnesses can affect anyone, regardless of their lifestyle. Critical illness insurance provides financial protection during challenging times, allowing policyholders to focus on their recovery without worrying about financial burdens.

Myth 3: Critical Illness Insurance covers all medical conditions.

Fact: Critical Illness Insurance has a defined list of covered illnesses. The list typically includes major conditions like cancer, heart attack, stroke, organ failure, and more. However, not all medical conditions are covered. It is essential to review the policy documents and understand which illnesses are included and excluded from the coverage.

Myth 4: Only older people need Critical Illness Insurance.

Fact: While the risk of critical illnesses increases with age, young people can also suffer from severe medical conditions. Critical illness insurance can be beneficial for people of all age groups, especially those with family histories of critical illnesses or specific health risk factors.

Myth 5: Critical Illness Insurance is expensive.

Fact: The cost of critical illness insurance varies based on factors like the insured’s age, coverage amount, policy features, and medical history. While it may have higher premiums compared to regular health insurance, the financial protection it offers during a critical illness can outweigh the costs.

Myth 6: Pre-existing conditions are covered under Critical Illness Insurance.

Fact: Most critical illness insurance policies exclude pre-existing conditions for a specific period. If the policyholder is diagnosed with a critical illness related to a pre-existing condition during the waiting period, the claim may be denied. It is crucial to understand the waiting periods and policy exclusions before purchasing the insurance.

Myth 7: Critical Illness Insurance covers all medical expenses.

Fact: Critical illness insurance provides a lump-sum payout upon diagnosis of a covered illness. However, it does not cover all medical expenses. Regular health insurance is designed to cover hospitalization and medical treatment costs, while critical illness insurance offers financial support beyond medical expenses.

Myth 8: Critical Illness Insurance provides immediate coverage.

Fact: Like most insurance policies, critical illness insurance typically has a waiting period before coverage becomes effective. This waiting period can vary depending on the insurer and the policy. It is essential to be aware of the waiting period and understand when coverage starts.

Myth 9: You can purchase Critical Illness Insurance after diagnosis.

Fact: Critical illness insurance is meant to provide protection before the diagnosis of a critical illness. Once you are diagnosed with a covered critical illness, you won’t be eligible to purchase or claim the insurance for that specific condition.

Myth 10: Critical Illness Insurance is a guaranteed payout.

Fact: The policyholder must meet specific criteria and undergo a medical assessment for a successful claim. If the diagnosis does not meet the policy’s definition of a covered critical illness, the claim may be denied.

It’s essential to dispel these myths and have a clear understanding of critical illness insurance before purchasing a policy. Reading and comprehending the policy terms and conditions, coverage details, and exclusions are vital to making an informed decision that best suits your needs. If there are any doubts or questions, it’s wise to seek advice from insurance experts or professionals.

Major exclusions Critical Illness Health Insurance Policies:

  • No illnesses/ailments are covered within the first 90 days of taking the policy cover (inception date of the policy)
  • Pre-existing (health) conditions generally within 48 months
  • Congenital defects/anomalies
  • Pregnancy-related complications
  • Drugs & alcohol-related ailments
  • Adventure sports

Here are some tips to consider when purchasing critical illness health insurance:

1. Assess your needs: Evaluate your medical history, family medical history, lifestyle, and the prevalent critical illnesses in your region. This will help you determine the coverage amount and types of illnesses you need to be insured against.

2. Compare plans: Research and compare different insurance providers, their plans, coverage, benefits, and premiums. Look for plans that offer comprehensive coverage for a wide range of critical illnesses.

3. Coverage scope: Check the list of critical illnesses covered under the policy. Common critical illnesses typically covered include cancer, heart attack, stroke, kidney failure, and organ transplants, among others. Make sure the policy covers the illnesses most relevant to your situation.

4. Waiting period: Be aware of the waiting period for specific illnesses. Many critical illness policies have a waiting period before the coverage becomes effective for certain conditions. Opt for a plan with a shorter waiting period if possible.

5. Pre-existing conditions: Understand how the policy treats pre-existing conditions. Some policies may have a longer waiting period or exclude coverage for pre-existing conditions.

6. Sum insured: Choose an adequate sum insured that considers your lifestyle, medical expenses, and potential future healthcare costs. A higher sum insured might result in higher premiums, but it offers better protection.

7. Claim process: Review the claim settlement process of the insurance company. A smooth and efficient claim settlement process is essential during critical times.

8. Exclusions: Carefully read and understand the policy exclusions. Know which situations or illnesses are not covered by the policy to avoid surprises when filing a claim.

9. Renewability and age limit: Check the policy’s renewal provisions and the maximum age until which the policy can be renewed. Opt for a policy with lifelong renewability options if possible.

10. Network hospitals: Confirm the list of network hospitals where cashless treatments are available. Having a wide network of hospitals will be beneficial in emergencies.

11. No-claim bonus: Some policies offer a no-claim bonus, where the sum insured increases if you do not file a claim during a policy year. Consider policies that provide this benefit.

12. Waiting period for claims: In some policies, there might be a waiting period before you can make a claim. Understand this aspect and choose a policy with reasonable waiting periods.

13. Premium affordability: While you shouldn’t compromise on coverage, ensure that the premium is affordable and fits within your budget. It’s essential to pay premiums consistently to keep the policy active.

14. Read reviews and feedback: Look for reviews and feedback from existing policyholders to understand their experiences with the insurance company’s services and claim settlement process.

15. Seek professional advice: If you find the process overwhelming or have specific health concerns, consider seeking advice from a qualified insurance advisor or agent.

Remember that critical illness insurance is not a substitute for comprehensive health insurance. It should complement your regular health insurance coverage to provide additional financial protection against major illnesses. Take your time to research and make an informed decision based on your specific needs and circumstances.


Comparison of Critical Illness Policies in the Indian Insurance Market:

  1. Premiums: Premiums vary depending on factors such as age, health condition, sum insured, and the number of critical illnesses covered.
  2. Insurers and Coverage:Different insurance companies offer varying coverage options and additional benefits, making it essential to compare policies.
  3. Claim Settlement Ratio:The claim settlement ratio of insurers is a critical factor to consider while choosing a policy.


Critical illness health insurance policies in India play a vital role in safeguarding individuals and families against the financial burden of critical illnesses. By offering lump-sum payouts, these policies provide much-needed support during difficult times. However, individuals must carefully assess their needs, compare policies, and select a plan that best aligns with their requirements and budget.

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