There are a few dents in my car. I have insurance without zero-depreciation cover. Should I claim for the repairs?
– Arun Vittal
No, you should not claim for a few dents as it will impact your No Claim Bonus (NCB) benefits, unless you have a NCB protector as an add-on cover. NCB is a discount given on renewal premium at the end of a claim-free year. Even if a single claim is made, the NCB goes back to zero. Therefore you should claim only in the event of a big loss and avoid filing it in case of minor dents.
How is home insurance done and what all does it cover? Do I have to renew it every year?
Home insurance is available with various coverage sections that you can pick and choose. You can either purchase it online or through your agent. A basic home insurance plan covers your home and its contents against fire and allied perils, burglary, breakdown of your electronic gadgets, cover for jewellery. It is an annual cover that has to be renewed every year.
Since I have a family floater of Rs 10 lakh for four people (my age is 52 years), how much of top-up should I take for adequate cover?
You should consider a top-up cover of Rs 15 lakh to have an optimum cover for all members of your family. Please note that a top-up cover is activated only after your basic cover is exhausted.
In motor insurance, how is no claims bonus and IDV calculated every year?
No Claims Bonus (NCB) starts with 20% for the first claim-free year and steadily increases each year with a cap at 50%. Even if one claim is made, it goes back to zero. Insured Declared Value (IDV) is current market value of vehicle which is calculated as manufacturer’s listed selling price minus depreciation. It is the maximum value fixed by the insurer and excludes registration and insurance cost as well as of the accessories which are not factory fitted.
Is a critical illness cover needed, or will a mediclaim policy cover everything?
The critical illness insurance covers major critical illnesses like cancer, heart attack, organ transplantation, stroke, etc. It is an indemnity cover. Normal mediclaim will cover hospitalisation expenses of these illness. You must buy a critical illness cover.
By- Anamika Roy Rashtrawar. The writer is director (Marketing), IFFCO Tokio General Insurance. Send your queries to email@example.com