Its advisable to take home insurance policy even if you have let out your flat

Written by Neelesh Garg | Updated: May 21 2013, 08:03am hrs
How do I get a higher IDV value for my car that I bought five years ago and why does it differ from company to company

Rohit Dang

Insured Declared Value (IDV) is arrived at by adjusting the car's selling price with a depreciation percentage as prescribed under the India Motor Tariff. IDV for cars less than five years old is specified as per tariff and, hence, is uniform across insurance policies. For cars more than five years old, IDV is based on the insurer's assessment as per the underwriting guidelines and risk assessment. It is important to have an IDV for your car that is appropriate and not necessarily high. This is because an IDV higher than a reasonable level would lead to higher premium without necessarily assuring a higher claim reimbursement.

I want to install a CNG kit and video in my car. Can I get these accessories insured

Manoj Kumar

The video device will be treated as an electrical accessory and insured by paying an additional premium. The CNG fuel kit is also insurable, provided that it is authorised by government authorities and information of the installation has been provided to the Road Transport Authority.

I have mistakenly taken two insurance covers for the same car. Can I transfer one policy to my second car

Prakash Mahapatra

Yes, you can transfer one policy to your second car. A policy availed on a particular vehicle can be transferred to another vehicle of the same class for the balance period of the policy. As insurance companies use vehicle related factors, i.e., model, vehicle age, etc., for premium computation, the policy transfer to your second car may lead to premium adjustment (additional premium or refund).

Is it worth insuring gold jewellery and coins kept in a bank locker Will the bank compensate me in case of any theft or fire and how would I get the valuation done

Karthik Rao

It is worth insuring your gold jewellery and coins irrespective of whether you store them in a bank locker or any other safe place. This is considering the chances of loss during storage as also the risk of theft during usage. If you have availed of an all-risk home insurance policy with cover for jewellery, you can get compensation against the loss in case of theft or fire or burglary. You would need to ensure that you declare the jewellery details at the time of purchasing the policy from the insurance company.

I have a flat which is rented out. Should I insure the flat for fire and earthquake and how much premium do I have to pay every year

Arun Singh

You should definitely avail of a home insurance policy even though your flat has been rented out. Since you are not planning to stay in the property, you can opt for a home insurance policy that covers only the structure of your house against fire and other perils. The sum insured and, thus, your premium, would depend on the cost of construction and apartment size. Your tenant can buy a cover for the contents inside the house that belong to him.

The writer is executive director, ICICI Lombard General


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