IRCTC Travel Insurance for E-Ticket Travellers

IRCTC Travel Insurance for E-Ticket Travellers

by | Oct 15, 2022 | Insurance

IRCTC Travel Insurance for E-Ticket Travellers

IRCTC Travel Insurance for E-Ticket Travellers

Who cares about buying travel insurance for rail travel? That too when one can get insurance coverage of up to ₹10 lakh at a premium of 35 paise for financial protection against rail accidents and other untoward incidents including robbery.

You might have overlooked it, but Indian Railway Catering and Tourism Corporation (IRCTC) has been providing you insurance every time you book a ticket through its website or mobile app. While booking tickets for your train journey on IRCTC site, you will get an option on “Travel Insurance” where you can choose whether you want travel insurance or not. Since the cost is only 35 paise, it is advisable to choose this one.

                                                                                                                             Subas Tiwari

Rail Travel Insurance Covered

Rail travel insurance provides coverage of Rs 10 lakh for death and permanent total disability arising out of any train accident or other untoward incident. 7.5 lakh is available for permanent partial disability. 2 lakhs coverage is available for hospitalization expenses for injury. Accidents, robbery, and other violent acts during train travel are covered by the policy. Insure for yourself & family when you book your tickets by train. It is simple & easy. No hassles of medical test, filling up of forms, etc.

Indian Railway Catering and Tourism Corporation (IRCTC), a Subsidiary of the Ministry of Railways, Government of India has floated this unique concept in rail travel in India, which is inviting raves amongst the travelling public for offering additional rail safety for train travellers.

As a pilot exercise, this scheme is open only to those who book travel tickets on online platforms (through e-tickets). Now, let us get down to understand what the scheme is & how does it extend rail insurance cover.

Who are covered?

  • All resident Indians and NRIs who booked online through NGet (New Generation E-Ticketing) website application of IRCTC only
  • All Indians above 5 years of age
  • All who have booked train tickets on online platforms (e-ticket)
  • All those who require Tatkal & Premium Tatkal train tickets through online booking
  • All those travelers who have confirmed/RAC tickets of any class (II, AC 2 tier, AC 3 tier, etc.) & who actually board the train to travel on the fateful day

What is the premium payable?

The premium amount is Rs.0.35 paise per passenger (inclusive of all taxes). However, there are conditions attached to this premium. That is, if you opted for this travel insurance, then it will be compulsory for all passengers booked under the single PNR. Also, in the case of ticket cancellations, the premium charged would have to be forfeited & would not be refunded.

Amount of coverage

  • The scheme offers travellers or their family’s compensation of up to Rs 10 lakhs in the event of death or permanent total disability (and Rs 10,000 for transportation of mortal remains in the event of death in a train accident). 
  • Rs 7.50 lakhs for permanent partial disability (and Rs 10,000 for transportation of injured person(s) in a train accident. 
  • Upto Rs 2.00 lakhs for hospitalization expenses (the coverage for Hospitalization Expenses for Injury is over and above the death/permanent total disability/partial disability).

The above is applicable on a train accident or other ‘untoward incident’ including terrorist attacks, dacoity, rioting, shoot-out or arson, as well as for short termination, diverted route and Vikalp trains. Further claims under train accident and untoward incident cases will be as per definition under Sections 123 read with Sections 124 and 124A of the Railways Act, 1989.

Which Insurance Companies are covering this Risk?

IRCTC offers Rail Insurance cover in partnership with the following General Insurance Companies (under Personal Accident Cover)

  • SBI General Insurance
  • Bharti Axa General Insurance
  • Bajaj Allianz General Insurance
  • Shriram General Insurance
  • ICICI Lombard Insurance
  • Royal Sundaram General Insurance
  • Liberty General Insurance, etc.

Rail customers shall receive the policy information through SMS and on their registered email IDs directly from insurance companies along with the link for filling nomination details. However, policy number can be viewed from ticket booked history at IRCTC page. 

After the booking of ticket, the nomination details are to be filled at the respective insurance company site. If nomination details are not filled, then the settlement has to be made with legal heirs, if the claim arises. 

However, the following are the terms & conditions governing the insurance cover-

  • Insurance policies are contractual obligations between the insurance company & the passenger. In case of the passenger opting for insurance, the claim/liability shall be between passenger and the insurance company.
  • The insurance company is responsible for policy issuance and claims settlement.
  • All the correspondence by policy holder should be made directly with the insurance company on their toll free number, official E Mail IDs or offices as mentioned in the policy document. No correspondence is to be made with IRCTC in this regard.
  • IRCTC only provides linkage to transact with insurance company through its website to take insurance cover and as such assume no responsibility or liability in respect of said policy, under any circumstances.

The Policy document would be issued as a soft copy to your registered email ID. 

What are the Exclusions?

  • Intentional self-injury, suicide or attempted suicide, whilst under the influence of intoxicating liquor or drugs.
  •  Arising or resulting from the Insured, committing any breach of law with criminal intent while crossing the railway tracks.
  •  Due to mental disorders or disturbance of conscious, strokes, fits or convulsions which affects the entire body. 
  • Radiations, infection, poisoning except where arise from accident, whilst engaging in any sort or form of adventurous sport or directly or indirectly caused or contributed by congenital anomaly, venereal disease, sexually transmitted disease, AIDS or insanity.
  • Any congenital internal or external diseases, defects or anomalies.
  • Any costs relating to the Insured’s pregnancy, childbirth or the consequences of either.
  • Any costs in any way related to psychiatric or mental disorders.
  • Dental treatment or surgery of any kind, unless to sound natural teeth and necessitated by an accident or untoward incident.
  • Plastic or cosmetic surgery, unless this is certified by the attending medical practitioner. 
  • Claim in instances wherein ticket was booked by the Insured; however, the ticket was not confirmed but still the passenger boarded the train.
  • Claim in instances wherein ticket was booked by the Insured; however, the train was not boarded.  This is irrespective of whether the train ticket was cancelled or not.

The above-listed exclusions are not exhaustive.

Who are not Covered?

  • Children below 5 years of age 
  • Citizens of foreign countries
  • Those who have not opted for rail insurance cover
  • Those who do not have confirmed train travel tickets
  • Those who are on wait-list & unreserved rail tickets

Settlement of Claims

  • The Insured or his nominee or legal heir shall deliver to the nearest office of the respective insurance company, not later than 4 months from the date of occurrence of the insured event, a detailed statement in writing as per the claim form and any other material particular, relevant to the making of such claim.
  • The Insured or his nominee or legal heir shall tender to the insurance company all reasonable information, assistance and proofs in connection with any claim hereunder.
  • The claim documents should be sent to the claims department of the nearest office of the insurance company through which this insurance is affected. List of the address of the office of the insurance company can be obtained from the website of the insurance company.
  • Benefits payable under this policy will be paid within 15 days of the receipt of the last necessary document. 
  • No claim is admissible beyond 365 days from date of expiry of the policy in respect of hospitalization commencing within the period of insurance. 

Advantages

  • It assures the rail passenger of maximum safety of life while in travel.
  • The premium is affordable by the common rail passenger.
  • The insurance cover will help financially compensate at least in part, the physical loss of the deceased or of grievous injuries.
  • The identity of the rail passenger can be quickly confirmed in case of a train accident, as the IRCTC has already captured all the personal information of the passenger in their website.
  • Financial compensation in case of death/injury is quite reasonable.
  • Left to the rail passenger to arrange for accident insurance for the period of travel, no insurance company would come forward to effect insurance cover.

Limitations

  • IRCTC rail insurance is not available for travel in Suburban/Metro trains.
  • As a pilot scheme, IRCTC has not included offline passengers, who form the majority of rail passengers requiring travel safety.
  • All classes of passengers ( Second Class Chair Car, Sleeper Class, AC I Class , AC 2 Tier, AC 3 Tier, non/AC Chair Car, etc.) are treated equally without giving weightage for class of travel.
  • The insured amount is not flexible in that those rail passengers who seek higher insurance cover are deprived of this facility.
  • Those rail passengers who could afford to pay a higher premium are not offered the option. 
  • Rail passengers do not enjoy choosing their preferred insurance company amongst the 3 companies under IRCTC tie-up. Whichever company is insuring your passage, you will have to stick with it.
  • Presently, in online ticket booking, the particulars of “NOMINEE” are not captured at the time of issuance of tickets, but subsequently get updated by calling for such particulars after a lapse of time. If the e-ticketing passenger does not respond to the particulars sought, then such updation of nominee does not get registered with IRCTC.

What could be in store?

According to unconfirmed sources, it is understood that the scheme could be liberalized to include all rail travellers based on customer feedback on success of the existing scheme, thus paving the way for secured & safe rail travel in India.

FORMAT OF IRCTC RAIL INSURANCE POLICY CERTIFICATE

Related

14 Investment Options for Your Child’s Better Future

14 Investment Options for Your Child’s Better Future

by | Aug 14, 2022 | Banking & Finance, Insurance

14 Investment Options for Your Child’s Better Future

ESOP
Parents want their children to be happy. They want them to be healthy. They want them to be successful in their life and have everything they desire. These desires are directly or indirectly connected to one thing- money. Today, we will tell you about that financial planning, by which you can achieve many goals for your children. To be honest, planning for your children’s financial future is not much different from long-term goals like buying a house or planning for retirement. Here we will tell you about this process.

                                                                                                                                  Subas Tiwari

Public Provident Fund (PPF)

The PPF account or Public Provident Fund scheme is one of the most popular long-term saving-cum-investment products, mainly due to its combination of safety, returns and tax savings. The PPF was first offered to the public in the year 1968 by the Finance Ministry’s National Savings Institute.  Since then it has emerged as a powerful tool to create long-term wealth for investors. Investors use the PPF as a tool to build a corpus for their retirement by putting aside sums of money regularly, over long periods of time (PPF has a 15-year maturity, and the facility to extend the tenure). With its attractive interest rates and tax benefits, the PPF is a big favorite with a small saver.

Why is the PPF so popular?

The PPF is popular because it is one of the safest investment products. i.e., the government of India guarantees your investments in the fund. The interest rate is set by the government every quarter. PPF scores over many other investment options mainly because your investment is tax exempt under section 80C of the Income Tax Act (ITA) and the returns from PPF are also not taxable.

Features of PPF accounts

  • You can invest a minimum of Rs. 500 and a maximum of Rs. 1, 50,000 in a financial year.
  • A PPF has a minimum tenure of 15 years. You can extend it in blocks of 5 years if you wish.
  • Any Indian citizen can open a PPF account.
  • You can take a loan on your PPF account between the 3rd and 5th year and make partial withdrawals after the 7th year for emergencies only.
  • You can open a PPF account with just Rs. 100 with any recognized You can make deposits every month or in a lump sum through cash, cheque, DD or online transfer.
  • The PPF accounts cannot be held jointly, though you can make a nomination.
  • You must compulsorily make a minimum deposit of Rs. 500 every year.
  • The government of India’s guarantee and unmatched tax benefits make a PPF account one of the safest, attractive and popular long-term investments available.

 Sukanya Samriddhi Yojana (SSY)

The SSY plan is specially designed to encourage you to save for your daughter. An SSY account can be opened any time after the birth of your daughter till she turns 10. Some features of the Sukanya Samriddhi Yojana are:
  • The account is opened in the name of the girl by her parents/legal guardians.
  • Multiple accounts for the same girl are prohibited.
  • The interest rate for SSY is 6.9% p.a. but is subject to change.
  • A family can have only two SSY accounts, which means one for each daughter. If the firstborns are twins/triplets, no additional account can be opened if the second birth results in a girl child. If the first birth results in triplets (girls) or second birth results in twin girls, then three accounts can be opened by the family.
  • The minimum investment amount is Rs. 1000; the maximum amount is Rs. 1, 50,000 annually.
  • The SSY account matures when the girl turns 21.
  • SSY scheme has the EEE (exempt, exempt, exempt) tax feature under Section 80C and offers risk-free fixed returns. EEE feature means that the initial investment is eligible for a tax deduction, returns are not taxed, and the maturity amount is also not taxed.

Post Office Term Deposit (POTD)

Another valuable option for your girl’s future planning is the Post Office Term Deposit. This post office saving scheme allows you to open an account in post offices across the country. The features are:
  • The lock-in period for the scheme is 5 years.
  • POTD can be transferred anywhere within the country.
  • Depending on the tenure you choose, a POTD offers interest between 5.5% and 6.7%. The rates are subject to change.
  • POTD can be opened for your child who is above 10 years.
  • The minimum deposit amount is Rs 1,000; there is no maximum limit.
  • Interest earned on this scheme is added to your total annual income in the year of receipt and is taxed as per the tax rate applicable to your slab. However, POTD with a 5-yr tenure is eligible for tax benefits under Section 80C of the Income Tax Act.

Post Office Recurring Deposit (PORD)

One of the post office savings schemes that allow saving small amounts every month is the PORD. You can save as little as Rs. 100 per month. Some features of the scheme are:
  • The interest rate is subject to change from time to time. Currently, a 5-yr PORD offers interest at 5.8% p.a. compounded quarterly.
  • The post office recurring deposit scheme has a medium-term length of 5 years and can be extended after that.
  • It can be opened for your daughter/s above the age of ten with you as the guardian.
  • The PORD scheme is a good option if you are looking at a disciplined way of investment. It is a risk-free investment backed by the government.

National Savings Certificate (NSC)

NSC is another popular post office savings scheme. Some of its features are:
  • Tenure is 5 years.
  • The minimum deposit is Rs. 1,000 with no maximum limit.
  • Currently, interest is paid at 5.9% p.a., which is subject to change with time.
  • Tax benefits under Section 80C, risk-free returns, and transferability are the chief advantages of NSCs.

Children Gift Mutual Fund

Designed for accumulating a sizable corpus for milestones in your daughter’s life, children’s mutual funds offer many advantages. The features are listed below:
  • Children’s Gift Funds are hybrid or balanced funds that invest in a combination of equity and debt instruments.
  • The funds are locked in till your child turns 18.
  • Children funds create long-term appreciations and allow you to invest in a combination of debt instruments and equity stocks as per your choice.

Equity Mutual Funds

Everybody often goes gung-ho with equity mutual funds to generate wealth for children. However, this has some risks. The problem is one is not sure at the time of redemption or when your child needs the money, how the markets would be. For example, if you want to redeem all your units in 2030 to meet a child’s need, you are not sure if the markets would be buoyant at that time. However, many equity mutual funds have beaten returns from even bank deposits and have given sizeable returns. So, if you are a long term investor, these tend to give you returns like no other. If you are planning to save money for your children’s education or other such plans, look no further then equity mutual funds. The income distributed by equity mutual funds would now be subject to tax, so your overall returns could reduce.  So, one as to be really careful before choosing equity mutual funds.  Be warned that these are risky and there is no certainty that at the time you want to redeem the markets would be high.

Debt Mutual Funds

Some debt mutual funds offer better returns than bank deposits. They are also more tax efficient than bank deposits, which makes them a better choice. However, you need to opt for the safe child plans more than anything else. Go for them if you are planning a very long term investment, given the fact that they give better returns in the more long term. Again, you may need some professional advice here, given the fact that some of these schemes could be a little risky. Go for debt mutual funds that are heavily tilted towards AAA securities. This would provide you some respite in case markets fall. Gilt edged funds, which invest most of the money in government security may also be good a bet.  Returns from debt mutual funds would largely be in line with interest rates in the economy, which are now offering between 7.5 to 8 per cent.

Systematic Investment Plan (SIP)

A systematic investment plan offers you an option to invest the desired amount every month in a mutual fund of your choice to save for your child’s future. The features of a SIP are:
  • Each month a predefined amount is deducted from your account towards the investment.
  • You can invest in different SIPs simultaneously.
  • Can start with as lows as Rs 500 per month.
  • Depending on your goals, you could invest in equity, debt, or mixed funds.
  • SIPs offer advantages like the power of compounding, and rupee cost averaging and better returns in the long run when compared to a recurring deposit.

Gold ETFs

Gold has been traditionally a preferred choice for investing for girls. In current times, instead of investing in physical gold, you can invest in gold ETFs.
  • Gold ETF, just like a mutual fund, can be bought online.
  • One gold ETF unit is equal to one gram of gold.
  • Gold ETFs are open-ended; you can enter and exit as per your choice.
  • Unlike investing in physical gold, investing in Gold ETF does not come with safety and storage hassles. You can invest small amounts too in Gold ETFs. They help in diversifying your portfolio.

Unit Linked Insurance Plans (ULIP)

ULIPs combine life insurance with investment. A part of the premium paid goes towards insurance; the remaining is invested in equity. Child ULIPs offer triple benefits
  • If the parent dies, the family receives a regular monthly payout for paying the child’s fee. For all you parents who have ambitious young children with stars in their eyes, here are a few options that can help you save for their bright future.
  • They also receive death benefits for meeting daily expenses.
  • The insurer pays future premiums.
  • Continuity in investment when the parent is not there is the main advantage of this option.

Money Back Policy

As the name suggests, a money back policy is a policy which gives money back at regular intervals. This money back is paid during the plan tenure and is a percentage of the Sum Assured. Money back payouts are called Survival Benefits. These benefits are paid during the plan tenure and on maturity, the remaining Sum Assured is paid along with vested bonuses. However, if the insured dies during the plan tenure, the full Sum Assured is paid irrespective of the Survival Benefits already paid. This is what makes the plan unique. Some of the salient features of the Money Back Policy are:
  • The Survival Benefits are calculated as a percentage of the sum assured.
  • Survival Benefits are paid at regular intervals during the plan tenure. There is a fixed interval when the benefits would be paid. Every plan has a different payout structure. Similarly, the percentage of Sum Assured paid as Survival Benefits is also not fixed and varies between different plans.
  • If the plan matures, the remaining portion of the Sum Assured (actual Sum Assured less the Survival Benefits already paid) is paid as maturity benefit. However, in case of death, the entire Sum Assured is paid irrespective of the money-back benefits already paid.
  • Money back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
  • Riders are also available under many money back plans. Rider benefits are paid as a lump sum only when the contingency covered by the rider occurs during the plan tenure.

Fixed Deposit

Fixed deposits are the vanilla ice cream of the investment world. You can open an FD for your child in any bank or NBFC. The features of FDs are:
  • FD investment can be started with just Rs 1,000.
  • Generally, the term varies from a few months to 10 years.
  • Flexibility to get interest payout at maturity, monthly, quarterly, and annually.
  • Benefits of investing in FDs include flexibility, safety, and liquidity.

Kisan Vikas Patra

Kisan Vikas Patra, popularly known as KVP, is a small savings scheme that is offered in the form of certificates in Indian Post Offices. This savings plan is a fixed-rate savings plan that aims to increase your money once a set length of time has passed that is during 124 months (10 years and 4 months). The account can be opened by any adult or on behalf of a minor. Moreover, a minor who is above the age of 10 can have an account in his own name. Three individuals together can open a joint account too.

Interest rate

Interest rate for the quarter ending June 30, 2022 is 6.9 % which is compounded annually.

How much investment can be made?

There is no upper limit and the minimum is Rs. 1000 in multiples of Rs. 100. One can open any number of accounts.

KVP can be pledged and transferred

KVP can be pledged or transferred as security by submitting a regulated application form, along with a pledgee’s acceptance letter.

Transfer/pledging can be made to the following authorities.

  • The President of India/Governor of the State.
  • RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
  • Corporation (public/private)/Govt. Company/Local Authority.
  • Housing finance company.

KVP premature closure

KVP may be closed before maturity at any time if the following requirements are met: –
  • When a single account, or any or all of the account holders in a joint account, passes away.
  • On forfeiture by a pledgee being a Gazette officer.
  • When ordered by court.
  • After 2 years and 6 months from the date of deposit.
  • Transfer of account from one person to another person

Tax benefits

The scheme is not eligible for tax deductions under Section 80C of the Internal Revenue Code, and the returns are fully taxable. Nonetheless, withdrawals after the maturity period are exempt from TDS (Tax Deducted at Source). To transfer from one person to another person, the following are the criteria according to Post Office:
  1. On the death of account holder to nominee/legal heirs.
  2. On the death of account holder to joint holder(s).
  • On order by the court.
On pledging of account to the specified authority.

Tips you must consider while making an investment for your children

  1. The early you start with savings and investments, the more time you will have to build a corpus for them. Your savings will also get sufficient time to grow. The emergency corpus is important for any medical and non-medical emergency. It should have funds equal to nine to one-year household expenses. This fund will be very useful in case of job loss, medical emergencies. You can rely on this fund without disturbing your other investments.
  2. During this whole process, discipline is very important. You need to have patience while investing for long-term goals. A sustained approach and meticulous planning are very important while building a corpus. In order to attain consistency with your investment, you can opt for a systematic investment plan (SIP).
  3. Open savings account for your kids, to teach them the basics of banking and money. Once he or she turns 10 or above, your child can operate his or her account, explain to them the basics of bank deposits and withdrawals.
  4. Besides taking care of your child’s material comfort, invest in their health and wellbeing. It may be noted that the immunity of children is lower as compared to adults and they are more susceptible to diseases. There are some health insurance especially designed for kids which offers a host of benefits such as lower premiums, tax benefits, discounts, add-on covers, etc. They also offer a number of plans for kids, covering every stage of their growth, with tailor-made plans for a particular stage.
  5. Always review your investment portfolio from time to time. And if some fund is not performing well, do not hesitate to replace it with a good performing fund. Ideally, rebalance your portfolio every six to nine months. Time to time, our needs and requirements change and keeping that in mind rejig your portfolio. 

Related

Term Insurance: All You Need to Know

Term Insurance: All You Need to Know

by | Jun 18, 2022 | Insurance

Term Insurance: All You Need to Know

Term Insurance is not just an expense, it is a protection cover. Only 3.7 percent of the people in India have insurance, which means a large part of the population is without insurance cover. Not buying insurance is an injustice to loved ones. Particularly in times like Corona, term insurance will be able to help your family financially. So don’t miss out on the right term insurance, not just for yourself but for your family. Now, the central question is how to choose term insurance and why is it so important?

                                                                                                                                    Subas Tiwari

Term insurance is a basic life insurance policy, which gives you a cover of protection. Many times people postpone term plans because they consider it an expense, but its premium is not expensive. It starts with just Rs. 400 and you get a good life cover. In case of sudden death of the insured, the family gets the entire sum assured.

How to Decide on Term Insurance Cover?

Understand your income base and decide on the insurance cover based on that. Experts believe that there should be life insurance of 15-20 times the income. The cover can also be decided according to age. If you are below 30 years of age, then take a cover of 25-30 times of the income. If you are between 30-45 years, then take an insurance of 15-20 times of the income and if above 45 years, then 10 times the amount of income should be insured. It is also important to estimate how many people are dependent on your income.

It is wise to buy term insurance early. At an early age, you will be able to lock in the insurance at a cheaper premium. Younger people have lower premiums. The premium once paid, will always be fixed. Therefore, the sooner you buy term insurance, the more benefits you will be in.

Buying Term Insurance Online is better

  • If you buy term insurance online, you do not have to pay commission to any intermediary.
  • Buying online reduces the cost of premium for you and makes insurance cheaper.
  • If you buy online, you fill all the details yourself, so there is less scope for mistake.
  • Online settlement can also be done at the time of claim. You can apply for this online only.
  • Online claim is also settled quickly.
  • You have to submit some documents such as death certificate, KYC and bank account details.
  • The claim money gets directly credited to your bank account.

Benefits of Term Insurance Plan

  • Term insurance is the cheapest form of insurance.
  • It’s simple to understand.
  • Select the length of the term for which you would like coverage, say up to 35 years. So, payments are fixed and do not increase during your term period.
  • During the early years of a term policy, the premium will usually be significantly lower than for cash value life insurance.
  • In case of an untimely death, dependents will receive the benefit amount specified in the insurance agreement directly on filing the claim with supporting documents.
  • You can customize term life insurance with the addition of riders, such as Child Benefit or Accidental death.
  • Another popular feature of term insurance is the return of the premium. They may give the benefit of returning 100% of whatever you have paid.  

Limitations of Term Insurance Plan

  • There is a downside in that, if the insured person happens to outlive the tenure of the policy, all the amount paid in the form of premiums will be forfeited by the insurance company without any benefits to the insured or  to his/her family. Essentially all the premium will go down the drain, except for tax benefits he/she would have availed on the amount paid as term insurance premium.
    • There is one major hurdle that prevents people from purchasing a term insurance plan; it tends to create a mental block as it deals with the death of the person taking a policy. But it is morbid, as the rationale behind buying car insurance is exactly the same as buying a term insurance plan. 
      If a person meets with an unfortunate car accident while driving, he/she has to pay damage charges to the other party or the insurance provider will compensate him/her. On the other hand if the person is a relatively safe driver and avoids any accident, the premium acts more like a hedge (cover) against any event which might/might not occur.
  • Consumers resort to consulting their agent as they either do not have the time to go through the brochure of this product or they believe that the agent is in the trade & hence should know more of the product- so it is easy to ask him questions & get answers from him without counter-verifying with the insurer. Unless one is aware of the features of the insurance plan himself/herself, do not expect the agent to explain the plan in detail (some of the agents do not give proper advice to their clients and run behind commissions).
    • Term insurance provides coverage only for a limited period of time.
    • Premium rates are guaranteed only until the end of the term. Depending on the policy, premiums may be level for a period of 1, 5, 10, 15, 20, 25, or 30 years and then cease without any renewal option, or offer a fresh cover at the end of the plan period at a higher premium rate.
  • Deteriorating health can trap you in a policy with rapidly increasing premiums.
  • No insurance company offers term plan insurance over 75 years of age, which means it is not very beneficial to the insured after attaining 75 years.

Things to Keep in Mind while Buying a Term Insurance Plan

1) Claim Settlement Ratio

This gives us an idea about the claim solving ability of the insurance company. If claims are intimated and the insurance company settles those, claim settlement ratio would be good. In simple words – claim settlement ratio is the number of claims settled by the insurance company out of every 100 claims it has received. Higher claim settlement ratio implies that majority of claims are getting settled. Higher the claim settlement ratio for the company, the better rated the company is in the eyes of the public.

2) Don’t get mislead by “per day premium” marketing gimmick

A lot of insurance companies have started to advertise their term insurance plans by sharing the cost per day basis, like for example – “Buy 1 crore term plan just for Rs 25/day”. However, note that these numbers might be applicable only for a certain age group and tenure of the policy.

Like it might happen that the advertised premium per day is only for the clients around 25 years and for a policy of 40 years. Your case will be different and the premiums might differ for you, so don’t get trapped by the lure of cheaper premiums.

3) Don’t buy single premium policies

At times, you have to choose between single premiums vs. regular premium while purchasing a life insurance policy. A lot of people think that just because they can afford to pay a onetime premium, it makes sense, but it’s not true.

Other than some cases, it does not make much sense to pay a one-time premium (single premium) while buying a term plan. The best option which will work for most people is the yearly premium. So if your agent is trying to explain to you how a one-time payment will help you save the cost, don’t fall for it.

4) Don’t get over-excited by term insurance riders

“Riders” are great add on with a term insurance plan, but only if you really require them or if they are specific to your case. Don’t add them just because it’s available and gives you a sense of more security. I mean if you travel a lot, the risk of dying in an accident is higher for you, so in that case, you can add an accidental rider. Here are various types of term plan riders

  • Accidental Death Rider
  • Permanent & Partial Disability
  • Critical Illness
  • Waiver of Premium
  • Income Benefit Rider

In the same way, if you feel that you want to cover the risk of some critical illness in the future and don’t want to buy a separate policy, then you can add critical cover. But don’t add any term insurance riders for the sake of it.

5) Buy the basic version of the term insurance plan

A term plan comes into various flavours nowadays. The most basic one is the one which pays you a lump sum on death. However, there are other variations now which also gives you income for 10/20 years along with the main cover, or pays only the income for the next 10/20 years and a small lump sum at the time of claim.

I think one should just choose the base policy in most of the cases. Most of the other options are designed for very specific situations and they are not “better” or “bad” compared to the base policy. To check this, you can go to any term insurance premium calculator and find out the premium with rider and without a rider.

6) Tell them if you are a smoker/alcoholic

One of the worst things you can do while purchasing any life insurance plan is to hide the fact that you are a smoker or consume alcohol. Please don’t hide it. There is nothing like a best term insurance plan for smokers in India at the moment.

Your premium calculation happens based on this critical information and if you hide these facts, then you are actually breaching the contract with the company and almost always your claim will be rejected at the end. Also, don’t think that just because you smoke just once in a while does not make you a non-smoker.

If you smoke (even though fewer number of times), you are a smoker in the eyes of the life insurance company. Same is the case with those who take alcohol.

Make sure you fill your own form because there have been cases when an agent just mentions the policyholder as non-smoker or non-alcoholic to make sure the policy is easily issued.

7) Don’t hide your health information

Another grave mistake done by policy buyers is to hide any critical health information while purchasing the policy. If you have any health issues or have gone through any major operations/surgeries then you should clearly communicate that to the insurance company. One of the reasons for term insurance claim rejection is hiding important facts while purchasing the policy. Please don’t wait for the insurance form to ask you the exact details.

An insurance policy is actually a proposal from your end in the eyes of law where you have to disclose all the facts and the company will accept your case or reject it. So the onus of providing all the information is on you.

8) Don’t hide your family health history

Even your family health history matters. If your parents or siblings have some illness, then even that should be shared by you. Please don’t hide it because even that information impacts your premium. Many people think that just because their parents had diabetes, it does not matter at all. That’s not true.

9) Don’t take small insurance cover (like 10-20 lacs)

Do you know that the average sum assured per India is in the range of Rs. 90,000 to 1 lac only? Indians on average are highly uninsured, however, that’s mostly true for those who do not have term plans. But even those who have term plan try to cut the corners and eventually take less term insurance cover.

The most favourite number nowadays is Rs. 1 crore. I see most of the people just taking a 1 crore term insurance plan thinking that it’s the right number. No, it’s not the case.

With the rising costs and lots of aspirations, Rs. 1 crore might not be enough for most of the families all their life. I suggest you should take a good enough cover which gives you enough peace of mind. Make sure you add up all your liabilities, 300 times of your monthly expenses and some more amount which can help your family reach your other financial goals and take at least that much cover. If your life insurance requirement is Rs. 1.3 crore, better take a 1.5 crore plan and not 1 crore.

10) Don’t forget to add nominee’s name

While filling the insurance form, make sure you carefully put the nominee’s name. But who can be a nominee in insurance? Ideally, it should be wife, children or someone whom you want to pass the term plan money. But try to avoid very old people as the nominee (in general).

Also make sure you mention this fact in your WILL too, or if you are not going to create a WILL right now, you can take the life insurance policy under MWP Act, so that your nominee will be the final person (it can only be wife and kids if you add MWP) who gets the money.

If you have bought the term plan long back and now your preference has changed, it’s better to change the nominee’s name.

11) Don’t take more than 1-2 policy 

You should ideally have 1 term plan policy in your life insurance portfolio, the max can be 2 policies. But nothing more than that.

I have seen some people dividing their 2 crores of the cover into 4 policies of 50 lacs each with 4 different companies and it’s a little bit of stretch. In almost all cases, 1 single policy of a big amount is good enough.

However, if you still feel that you want to break it into two policies, that’s the maximum you should do. Also, some people who are going to buy another term plan after a couple of years should not note this point that they should eventually not have more than 2 policies.

12) Disclose the old insurance policy 

When you buy any life insurance policy, it’s mandatory as per their rules to disclose the old insurance policy you already have. In most of the cases, when people buy a term plan for the first time, they already have a couple of traditional insurance plans, but they fail to declare that.

I suggest you don’t do that because as per life insurance policies, a company should know how much coverage you already have and only based on that they will offer you additional cover.

If you have already bought a term plan without mentioning your old policies, you should reach the customer care of the company concerned and share with them about your old policies.

13) Check the policy papers once you get it 

One of the things which you should immediately do after receiving the policy is to check all the fine points and a copy of your medical examination. Kindly go through each point and make sure things like your age, name, blood group, address and other important things are mentioned correctly.

There have been cases, where the information has been wrong. If things are wrong, you can reach out to the company customer care to get it corrected.

14) Communicate to your family that you bought a term plan 

You should share about buying the term plan with your family immediately along with the policy papers and the contact number of the insurer.

You can also write down the claim process on paper and keep that at a safe location and share it with your family. I know it’s not easy to talk about even though it’s the logical thing to do. Nonetheless, at least communicate with your family about the important things they should be aware of.

Related

Why are Cardiac Health Insurance Plans Essential?

Why are Cardiac Health Insurance Plans Essential?

by | Apr 15, 2022 | Best Buy, Insurance

Why are Cardiac Health Insurance Plans Essential?

Poor lifestyle, bad eating habits and stress is making people prone to heart diseases at an early age. Many celebrities like cricketer Shane Warne, TV star Siddharth Shukla, South’s superstar Puneet Rajkumar, actor Rajiv Kapoor, etc. have died due to heart attacks. The list is quite extensive. Moreover, many of these celebrities were quite young.

In reality, the biggest fear in a heart attack is that it all happens very fast and we do not get the chance to get medical help. Sometimes, life ends in a few minutes. Many a times, heart problems starts from earlier but we are not aware of its symptoms or just brush it away as fatigue. Remember, this disease has nothing to do with age at all.  

                                                                                                                                    Subas Tiwari

 Heart attack is caused by a low supply of oxygen to the heart. Heart attack happens when the blood in the veins of our body does not flow smoothly. This results in clotting of blood. This clotting cuts blood flow to the heart.

Causes of Heart Attack at a Young Age

According to the American Heart Association, poor lifestyle and bad eating habits are making people prone to heart diseases at an early age. Smoking has emerged as the leading cause of heart disease and heart attack among young people. Some of the other major causes are

  • Consumption of drugs: One of the biggest cause of heart diseases is the use of drugs. Blood pressure increases due to drinking too much alcohol or consuming drugs. The direct effect of increasing BP falls on the blood arteries, due to which the heart starts pumping, which increases the risk of heart attack.
  • Consumption of spicy and oily food:Too much consumption of spicy and oily food is also bad for our heart. Fried and spicy things increase the amount of calories in our body and spoil our heart health.
  • Stress:Stress is a major cause of heart problem. If you want to keep the heart healthy, then keep your mind cool and stay away from stress.
  • Obesity:Increasing obesity also causes heart attack. Excess fat in the body starts to accumulate on the sides of the veins, which results in the narrowing of the veins. This results in a risk of clotting which ultimately results in a heart attack.
  • Metabolic syndrome:Metabolic syndrome is a cluster of conditions that increases the risk of heart disease, stroke and diabetes. This include increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol or triglyceride levels.

 Health Insurance for Heart Patients

As per Indian Heart Association, more than 50% of all heart attacks are reported in individuals below the age group of 50 years. While 25% of heart attacks are seen in people below the age group of 40 years, which makes the need for cardiac health insurance plans even crucial. It helps the policyholder keeping up with the rising medical costs that can otherwise wipe most of their savings.

Cardiac health insurance plans cover acute heart diseases such as refractory heart failure, myocardial infarction or heart attack, cardiomyopathy, etc. Besides, to handle these medical emergencies without any financial stress, it is essential to buy health insurance for heart patients.  

 Importance of Health Insurance for Heart Patients

The rising number of cardiovascular ailments like heart attacks, strokes, high levels of cholesterol along with the increasing cost of treatment put an emphasis on the importance of health insurance for heart patients in India. It is a specific health insurance for cardiac patients and is beneficial for people with pre-existing heart ailments.

The main objective of these health insurance plans is to reduce the financial burden and help the insured avail the best heart-related treatments like CABG or Coronary by-pass surgery, stent, etc.

Features of Cardiac Health Insurance Plans

A range of the key features and benefits of cardiac insurance policies are given below:

  • Hospitalization Cover-The policy offers compensation for cardiac treatment cost and other related expenses including hospitalization expenses.
  • Financial Cover-The policy offers peace of mind in case there is a heart-related problem like a heart attack, then the insured can file a claim under cardiac insurance without worrying about the finances.
  • Lump Sum Payment of the sum insured-In case the insured is diagnosed with any cardiovascular illness, then the insurer pays the coverage amount in a lump sum.
  • Loss of Income Cover-Under cardiac care health insurance plan, the insurer also compensates for the loss of your income as the policy claim amount can be utilized to meet other miscellaneous expenses too.
  • Overseas Treatment-Depending on the policy coverage, a heart insurance policy may also cover treatment taken overseas.
  • Tax Benefit on the Premium-Under the Income Tax Act 1961, you are eligible to avail of tax benefits up to Rs 25,000 on the health insurance premium paid for cardiac health plans.

Nonetheless, these benefits of heart health insurance plans are subjected to certain terms and conditions.

Coverage under Cardiac Health Insurance Plans

One of the major benefits of cardiac care health insurance plans is that the policyholder receives a lump sum amount from the insurer. Listed below are a few coverage benefits that you can avail under a heart insurance policy for heart patients:

  • Coverage for in-hospitalization Expenses-These are the expenses that are incurred in the hospital like ICU charges, etc. These are also reimbursed by the insurance provider, depending on the hospital where the treatment is being done.
  • Pre and post-hospitalization Expenses-As a normal health insurance plan covers in-patient hospitalization expenses, these expenses are covered under heart insurance plans too.
  • Domiciliary Hospitalization/ OPD Treatment- Some cardiac health plans also cover expenses incurred on homecare treatment, if it is suggested by the doctor just like other health insurance plans.
  • Myocardial Infarction (First Heart Attack) Cover-Most of the heart insurance plans cover the first heart attack treatment that arises if a heart muscle dies due to inadequacy of the blood supply to the heart. The diagnosis of myocardial infarction may be supported by clinical symptoms like chest pain, electrocardiogram, or other biochemical markers.
  • Refractory Heart Failure-The diagnosis should be done by a cardiologist, or the report should reveal elevated biomarkers, or as indicated in the policy wordings.
  • Annual Cardiac Health Check-ups/Wellness Program-Health insurance for heart patients also provide annual health check-up benefits to help the insured make the right diagnosis.
  • Alternative Treatments-Health insurance for heart patients also covers expenses incurred on alternative medical treatments such as AYUSH which includes Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy.

Treatments or Medical Procedures Covered

Cardiac health insurance plans largely cover the following treatments:

  • First Heart Attack – of Specified Severity
  • Pericardiectomy
  • Balloon Valvotomy or Valvuloplasty
  • Open Chest Coronary Artery Bypass Graft
  • Surgery to place Ventricular Assist Devices
  • Surgery for Cardiac Arrhythmia
  • Minimally Invasive Surgery of Aorta
  • Open Heart Replacement or Repair of Heart Valves
  • Primary Pulmonary Arterial Hypertension
  • Implantable Cardioverter Defibrillator (ICD)
  • Angioplasty
  • Heart Transplant
  • Insertion of Pacemaker

Exclusion under Cardiac Health Insurance Plans

Health insurance plans for heart patients do not cover the following expenses:

  • Expenses attributable to self-inflicted injury and suicidal attempts
  • Treatment related to pregnancy and childbirth, abortion, miscarriage,  and other complications
  • Internal congenital diseases are not covered
  • Hospitalization required due to any illness resulting from to drug or alcohol consumption
  • Infertility and IVF treatments and tests are not covered
  • War, riot, strike, nuclear weapons induced hospitalization is not covered

Who should Buy Cardiac Health Insurance Plans?

Cardiac ailments are on a rise and can affect anyone in any age group. The lengthy course of treatment can impact anyone’s finances. Therefore, cardiac health insurance plans are suitable for people who are prone to lifestyle diseases including cardiovascular ailments such as heart attacks, heart failure, etc. where people need to undergo some heart procedure. People with existing heart conditions or those with a family history of cardiovascular illnesses are also advised to consider buying a cardiac health insurance policy.

Nowadays, the treatment for heart-related ailments can cost a fortune, and with adequate health insurance cover, even heart patients can avail the best treatment and lead a healthy life without worrying about the cost of the treatment.

Cardiac Care Insurance Plans in India

  1. Care Heart Insurance

This plan is a great option for senior citizens as there is no maximum entry age. However, it has a deductible that varies depending on the plan variant.

  • Comprehensive hospitalization coverage with deductible option
  • Coverage for family on individual or floater basis
  • Automatic recharge
  • Recommended for individuals who have already undergone cardiac procedure in past
  • Sum Insured Rs. 3 lakh- 10 lakh
  • Age Criteria- 18 years & above
  1. Star Cardiac Care Insurance

People who have already undergone some heart procedure in the last 7 years can opt for this plan. It also provides care for personal accidents and other non-cardiac ailments.

  • No pre-acceptance medical screening
  • Lifelong renewability
  • Available in 2 options SILVER and GOLD
  • 10% Deductible applicable ONLY for accident and non-cardiac ailments for patients aged 61 years or above.
  • Sum Insured Rs.3 lakh-7lakh
  • Age Criteria – 10 – 65 years
  1. ICICI Pru Heart/Cancer Protect Insurance

This plan offers coverage for heart and/or cancer. It offers a waiver of premium for defined minor heart and cancer conditions.

  • Separate sum assured for heart and cancer care
  • Optional hospitalization cash benefit of Rs. 5,000 per day
  • Optional Income benefit cover of 1% of sum assured
  • Survival period of 7 days for heart cover. None for Cancer cover.
  1. Future Generali Heart and Health Insurance

A bundled health and life insurance, this plan has an inbuilt death benefit without any waiting period. It also doubles up as a life insurance.

  • Premium waiver for 5 years upon diagnosis of defined minor and moderate conditions
  • Optional return of premium
  • Multiple claim benefit
  • Optional maturity benefit.
  • Sum Insured Rs.5 lakh- 50 lakh
  • Age Criteria-  18 – 65 years
  1. IFFCO Tokio Critical Illness Benefit Plan

The policy comes with a lifelong renewal process. One policy can cover all family members and has a maximum allowance of Rs. 1000 per day. Maximum sum insured can be of Rs. 1 crore and anyone of 50 years or below can purchase the policy without any medical tests.

  • Covers major organ transplant surgeries
  • Covers 25 critical illness and surgeries including heart attack
  • Covers open heart replacement, surgery of Aorta and CABG
  • Sum Insured up to Rs. 1 crore
  • Age Criteria- Up to 60 years
  1. New India Floater Mediclaim

The policy proposer can be anyone between the years 18 – 65. Children from 3 months of age and going up to 25 years can be covered provided they are dependent upon the proposer.

  • Covers critical diseases including heart attack
  • Coverage of minimum 2 people and maximum 6 people
  • Any new born baby to a mother who has been under continuous coverage for 2 years will be covered without any extra premium for all illness and injury till the expiry of the policy
  • Room rent and nursing expenses up to 1% of the insured sum per day and ICU charges up to 2% of the insured sum are covered
  1. Max Bupa Criticare

It is one of the best critical illness plans. The policy comes with the following features:

  • Customizable coverage of up to Rs. 2 crore
  • Pay out for child care benefits
  1. HDFC ERGO Optima Vital

This is a critical illness insurance covering first heart attack. It comes with the following
features:

  • Critical care covering 37 critical illnesses including heart attack
  • No cover ceasing age
  • Lifelong renewal facility
  1. Oriental Insurance Individual Mediclaim

The policy is available to anyone between 18 – 70 years of age and offers the following features:

  • Lifelong renewals with maximum sum insured upto Rs 10 lakh
  • Coverage of hospitalisation due to accident, sudden illness and surgery during the insured period
  • No medical tests for people up to 55 years of age
  1. Bajaj Allianz Critical Illness Insurance

Bajaj Allianz Critical Illness Plan is a speedy resolution for all serious medical ailments. The policy provides the following financial aid.

  • Covers a total of 10 critical illnesses including heart attack
  • Coverage of expenses incurred in both India and abroad
  • During the renewal of the policy, the sum insured can be increased
  • Sum Insured Rs.1 lakh- 50 lakh
  • Age Criteria – 91 days- 80 years

Things to Keep in Mind While Getting Health Insurance

  • Before you get insurance, check your budget. Try to choose a better policy in the least budget, so that your family along with you is covered in it. For this, you can compare the policies of top companies by going on the internet. You can also take advice of an expert in this regard.
  • First of all, check the Claim Rejection Ratio (CRR) by visiting the website of the best insurance companies. CRR means the number of claims the company has rejected in the last few years. Avoid taking insurance of a company whose CRR is high.
  • If you choose a policy with better information, then it will be beneficial for you. There are many such policies available in the market, in which you and your family are covered in a lump sum premium. Apart from this, financial assistance is provided by the company to the family in case of any untoward incident.
  • While taking an insurance policy, read all the terms and conditions thoroughly. If you have any question, then discuss it with the concerned employee. However, now you can port your health insurance policy to another company if you are dissatisfied with the services of your company.
Related

How to Get the Best Health Insurance Policy for Cancer?

How to Get the Best Health Insurance Policy for Cancer?

by | Apr 3, 2022 | Banking & Finance, Insurance, resources

How to Get the Best Health Insurance Policy for Cancer?

With the rapid increase of health facilities in the country, the cost of treatment of various diseases is on the upward surge too. Amongst them, the treatment of cancer is by far the longest and costliest. For a common man, it gets increasingly difficult to cover the cost of the treatment. Even if the patient recovers, he/she loses all of their life savings in medication and chemotherapy. Moreover, all cancer patients have to quit working while undergoing treatment, which creates additional financial burden and uncertainty. Is there a policy to equip ourselves with the financial coverage? Let’s check it out here.

Subas Tiwari

Start: Solutions to this are the cancer health insurance policies available in the market. These policies provide you financial assistance for cancer treatment.

Why is Cancer Protection Policy Important?

Defined as the uncontrolled growth of abnormal cells, cancer is basically a large group of diseases that can start in almost any organ or tissue of the body. The incidence rate of cancer has increased significantly in the last decade and according to WHO reports, it is the second leading cause of death globally.

With the improvement of health services in our country, the detection and quality of treatment has increased tremendously. However, its cure is still very expensive. To mitigate the burden, medical insurance against cancer is the need of the hour.

Salient Features

  • All life insurance companies offer lump sum payout at early stage (also called minor/mild stage), major stage (also called moderate stage) & severe stage (also called critical stage) of cancer.
  • While some of the plans offer waiver of future payouts of premium (also called waiver), some others offer death benefit to the nominee.
  • Most of the companies also offer surrender benefit (after a specific lock-in period) while some of them offer loan on assignment basis to the company.
  • Once a lump sum is made on the policy for treatment for any stage of cancer, the policy gets extinguished.
  • There are life insurance companies which offer a combination of Heart AND Cancer cover with an option to receive monthly income for prolonged treatment to cover both ailments.
  • No claim is entertained within 180 days of the policy date which is the “waiting period”.
  • The maximum entry age under this plan is 65 years.

Exclusions

  • Sexually transmitted diseases (STD), AIDS or  HIV
  • Any pre-existing condition
  • Any congenital conditions
  • Any critical illness or its signs or symptoms having occurred within the waiting period of 180 days of policy commencement date
  • Under the influence of drugs, alcohol, narcotics or psychotropic substance not prescribed by the treating doctor
  • Treatment for injury or illness caused by activities such as hunting, mountaineering, racing, scuba diving, aerial sports, activities such as hand-gliding, ballooning, any other professional sports which may lead to deliberate exposure to exceptional danger
  • Unreasonable failure to seek or follow medical advice, the policyholder has delayed medical treatment in order to circumvent the waiting period or other conditions

Pointers to Keep in Mind

Cancer insurance plans offer financial relief if diagnosed with minor or major stage cancer and helps the patient and his family to better deal with the situation. There are many cancer insurance products in the market, and it is essential to know what you must look out for when you make your decision.

  1. Benefit vs indemnity:There are two kinds of policies available in the market. Benefit policies are those where sum insured is paid upon the discovery of cancer and successfully passing the survival period. In an indemnity policy, the claims are payable after the waiting period is over and are reimbursed in accordance with the amount spent towards cancer treatment charges.
  2. Sufficient coverage amount:It is no secret that cancer treatment is extremely expensive and a long-term ordeal. The cumulative cost incurred on diagnostics, radiation, chemotherapy and surgery would cause a significant dip in your personal savings if they were to be borne out-of-pocket. Going by the age-old adage, “Better to be safe than sorry”, it would be more beneficial if one were to opt for a higher sum insured amount that would take care of high-cost procedures for a slightly higher premium.
  3. Prior history of cancer: People who have been diagnosed with and treated for cancer earlier should be prepared to face rejection at the time of application for health insurance (whether critical illness policies or cancer care plans). Most insurance companies are not likely to cover cancer patients considering the high risks involved.
  4. Other pre-existing diseases:Whether one opts for a critical illness policy that also covers cancer, or a cancer care plan, it is imperative to declare all previous and/or existing medical conditions and ailments at the time of purchasing the policy. One should also truthfully answer any questions pertaining to genetic predisposition or a family history of any forms of cancer. Non-disclosure would not just impact the claims related to any cancer-specific treatment undergone, it would also lead to rejection of any other non-cancer treatment expense claims.
  5. Waiting periods:Every health insurance plan defines a waiting period for certain conditions and treatments including cancer. These specific waiting periods differ across policies and insurers, so it would be wise to ascertain the time period for the chosen critical illness or cancer care special plan during which one will not be qualified to raise medical claims. Preferably opt for a policy that has a low waiting period to expedite the eligibility. The waiting period is only on first time purchase.
  6. Co-payment: Few health insurers impose a co-payment clause (i.e., a percentage of sum insured amount) on cancer treatment expenses which have to be borne by the policyholder. Choosing such a policy would mean that a certain percentage of the costs will always be paid on your own.
  7. Sub-limits:Some insurers stipulate an upper cap or sub-limit on the amount of coverage offered for cancer treatment. For example, the critical illness plan might be for a sum insured of Rs 50 lakh, but cancer treatment would get covered only up to Rs 5 lakh.
  8. Exclusions:All health insurance policies – whether critical illness or cancer specific – outline a list of exclusions which are conditions and procedures that the insurer is not liable to pay for. Those looking for cancer-related health insurance should, of course, ensure that cancer is not excluded from coverage. Additionally, this list of exclusions might mention a specific type/s or stage/s of cancer that would be omitted from coverage.
  9. Experimental treatments:Exponential and continuous advancements in cancer therapy have led to novel treatment methods being discovered. Most health insurance plans cover traditional and new age treatments that are approved by medical councils. Radical therapies and unproven treatments would not be covered.
  10. Survival period:Insurers specify the minimum number of days for which the policyholder must survive post diagnosis or treatment of cancer. The health insurance benefit will be accrued only upon successfully passing the survival period. This is a crucial point to be aware of to avoid any future surprises.
  11. Features that aid in increasing the sum insured amount:Restoration benefit for the same disease would be an ideal policy feature to have, as it would lead to reinstatement of the original coverage amount upon exhaustion due to single or multiple claims submission. Additionally, no-claim bonus for claim-free years would also help in augmenting the sum insured amount, which would eventually prove useful at the time of seeking expensive cancer treatment.

Renewability of the policy after the discovery of cancer: The policy may not be renewed once cancer specific feature is invoked. The benefit is usually payable once in the lifetime of the insured.

Related

Deets of availing a wedding insurance

Deets of availing a wedding insurance

by | Feb 26, 2022 | Banking & Finance, Insurance

Deets of availing a wedding insurance

Marriages are made heaven, true! But look at the present situation we have been surrounded with. There are slew of wedding arrangements getting cancelled due to the imposition of Covid curbs/restrictions etc. What if your money is stuck in arranging a wedding? I’m sure, you would be looking forward if there is an escape from this situation. So, our below piece brings you information on how you can insure a wedding. So that, if need be, your money does not get waste. 

Subas Tiwari

There are a host of insurance companies in the country selling wedding insurances to offer financial security ranging from wedding cancellation to theft of jewelry and sudden accident after a wedding. No one wants a wedding to be canceled or venue to be changed. Even if such a situation arises, you must ensure that there is no loss of money. And this is possible only if you get your wedding ceremony insured. Like other types of event insurance, wedding insurance is designed to protect you from various potential losses associated with your big day. Broadly speaking, these events generally fall under liability coverage or cancellation coverage.

Wedding insurance covers

1) Cancellation/postponement of the wedding event due to the following reasons:
  1. a) Earthquake/fire and other perils at the venue of the event
  2. b) Theft or burglary
If the person(s) named under the policy does not appear for the wedding event due to death, personal injury, hospitalisation and other reasons mentioned in the policy document. The sum insured under the policy covers costs of cards printed, advance paid to the caterer/wedding hall, and advance paid for decorations, hotel reservations/travel tickets. 2) Physical loss or damage to the property insured under the policy. The scope of cover is as follows.
  1. a) Earthquake & fire (related perils included)
  2. b) Theft or burglary
Material damage condition includes decoration costs, jewelry and stones, appliances, precious metals and others as specified in the policy document. 3) The Personal Accident cover provides the following benefits to the persons covered under the policy.
  1. a) Persons named in the policy which includes blood relation would be covered against accidental death.
  2. b) Permanent total disability and permanent partial disability is covered for persons whose name have been declared prior to availing the insurance.
4) The Public Liability cover ensures protection against injury/death arising out of accidents at the wedding venue. It also covers third party property damage.

How wedding insurance functions?

Applying for a wedding insurance is a quick and a hassle-free process. It broadly covers the loss due to certain situations that are out of your control. It cannot compensate for the emotional loss, but surely for the financial loss to some extent. Through the following steps, you can apply for the policy and make claims when needed:
  • Identify requirements and choose the most appropriate wedding plan
  • Submit the required documents and a duly filled application form
  • Insurance company verifies the details and determines the premium
  • In case of an eventuality, the beneficiary intimates the insurer about the same
  • The insurer investigates the claim and settles the same

Wedding insurance claim process

In case of an unwanted event or risk during the marriage ceremony, the policyholder can claim compensation by following the below steps:
  • Intimate the insurance company as soon as possible, after the eventuality occurs.
  • Fill up the claim form and submit it to the insurance company with other required documents.
  • A representative from the insurance company investigates the loss/damage.
  • If the claim is genuine the compensation amount is paid in the beneficiary account. Else the claim is rejected.
  • The insurance company may also decide to pay to the wedding venue or vendor directly.
  • If the policyholder is not happy with the claim amount or the resolution, he/she can raise a dispute in the court of law.

Documents required for claim process

The following documents are required to file the claim under the wedding insurance:
  • Duly filled in claim form
  • Photocopy of the policy
  • Details of the damaged property
  • List of valuables damaged/lost
  • Invoice or purchase receipt of the valuables
  • If there is a robbery or theft, a FIR copy
  • Credit card statements, purchase dates and location details of the lost/damaged property
  • Confirmation from a qualified expert, if any of the damage cannot be repaired

How long does it take to pay out a claim?

A wedding insurance claim can be settled within 30 days of the mishap. Even if the insurance company needs some clarification, it has to be done within these 30 days.

Wedding insurance exclusions

Wedding insurance covers multiple risks, but policyholders cannot claim wedding insurance for the following issues:
  • Terrorist attacks
  • Strike/civil unrest
  • Cancellation of the wedding
  • Kidnap of the bride/bridegroom
  • Loss of damage to the clothing and personal assets of the wedding guests
  • Unexplained or sudden unavailability of the wedding venue
  • Bride/bridegroom unable to join the wedding due to flight delay
  • Breakdown of the vehicle which prevents the bride/bridegroom from reaching the venue
  • Damage or destruction of the wedding venue as per the instructions of the policyholder
  • Damage caused to the wedding venue due to wear and tear with time, electrical or mechanical breakdown
  • Property damage due to negligence or lack of supervision

Reasons you will you get an insurance

  • Advance given to caterer
  • Advance money for any hall or resort booked for the wedding
  • Advance given to travel agencies
  • Hotel advance booking payment
  • Payment given on printing of wedding cards
  • For decoration and music
  • From wedding venue sets to other decorations
Companies such as ICICI Lombard, Future Generali, HDFC Argo, Bajaj Allianz General Insurance are providing wedding insurance in India.

Important aspects 

To get the best out of a wedding insurance, the below facts should be kept in mind:
  • Even if the expenses exceed, the company will pay only the sum insured
  • The bonds, bills and certificates for valuable need to be submitted to get the compensation for loss and damage of the same
  • To get the claim amount in less time, the insurance company must be provided with a clear breakup of the loss and damage
  • Wedding Insurance covers only the loss or damage of jewelry gifted by relatives and in- laws
  • If more vendors are engaged, the premium amount will also increase

Advantages of buying a wedding insurance

Some of the key benefits of a purchasing a wedding insurance are:
  • Premium is quite economical. It is only 0.7 to 2 per cent of the insured amount
  • Insurers offer customised wedding insurance policies. The beneficiary might opt insurance only for the primary event or can go for a combined package.
  • Through the public liability coverage, one can be relaxed because certain companies even take care of food poisoning taking place due to food served at the function
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