- Insurers, Irda to launch awareness campaignHigh Court directs ICICI Lombard General Insurance Company to pay Rs 46 lakh to victim's kinLarsen and Toubro, Future Group to merge general insurance businessEconomic slowdown, crashing auto sales force general insurance companies to focus on retail
As health insurance policies are sold by life, non-life and specialised companies, how do I decide on from whom to buy and the right policy?
— Prakash Sharma
Make a detailed comparison of the product offerings on parameters like policy features and benefits, claim servicing capabilities and network of hospitals. For policy specifics, evaluate parameters such as premium charged, sum insured, waiting period for pre-existing diseases, policy exclusions, etc.
Also, check whether your chosen policy offers important benefits like guaranteed renewability, OPD cover, emergency evacuation, etc. It is important to evaluate an insurer’s claim-servicing track record and claim-settlement ratio. Ensure that you have gone through and understood a policy’s wordings and terms and conditions.
How do deductibles work in health policies? If I opt for it, will my premium be lower?
— Rohit Rao
A deductible in a health insurance policy pertains to the initial amount of expenses that is paid by the insured despite having availed an insurance policy. The insurance company would bear the expenses on hospitalisation, etc, which is over and above this deductible amount.
A deductible component will enable the policy to be used for reimbursing treatment expenses that are significantly high, instead of utilising the sum insured for reimbursement of small attritional claims.
Given that the insured will bear part of the expenses, insurance companies charge lower premium to customers who opt for a deductible in a health insurance policy.
My health claim was not settled properly. How can I escalate my grievance and how will it be addressed?
— Chanchal Verma
As per guidelines issued by the Insurance Regulatory and Development Authority (Irda), every insurance company is required to have a robust grievance redressal mechanism in place. In case of any complaint, you can contact the company's customer service department for resolution.
All insurance firms are required to resolve complaints within 15 days of receipt as per the turnaround time guidelines prescribed by the regulator. If you are not satisfied, you can approach the Insurance Ombudsman. You may also utilise the
Integrated Grievance Management System of Irda.
If I put in a claim for minor repairs of my car, will the renewal premium be loaded?
— Ankur Garg
The premium for your vehicle is calculated based on the model of the car, age, distance travelled, etc. There is no loading on the premium if one makes a claim for repairs undertaken on the car. However, you would lose out on the no-claim bonus (NCB), which is offered as a discount on the total premium and increases for every year of claim not being made on the motor insurance policy. Preserving the NCB earned over a period of time helps in terms of lower premium rates, as well as transfer of NCB to a new car purchased.
You should consider the amount to be incurred on repair, your annual insurance premium outgo, quantum of NCB in case of no claim as well any plans to buy a new car before deciding on claiming for expenses incurred on repair of your car.
The writer is executive director, ICICI Lombard General Insurance
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