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Money Matters

Money Matters
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First Published: Sun, Jul 19 2009. 10 12 PM IST

Updated: Sun, Jul 19 2009. 10 12 PM IST
I have bought an expensive mobile phone. Which policy should I take to cover it? Will a householder’s policy cover it under the consumer durables section?
You can cover your mobile phone under the “all risk” category of the householder’s policy or take a separate policy. The cover available under both is nearly the same. These policies provide a cover for a mobile phone against the risk of fire, theft, riots and strikes, malicious acts and accidents. The policy does not cover normal wear and tear, electrical breakdown and damage due to a deliberate act on the part of the insured. The compensation is equivalent to the cost of replacement of the instrument with a new instrument of the same specification, subject to the sum insured.
A friend told me that National Insurance covers pre-existing diseases such as diabetes and hypertension. Is it true?
—Mayank Tyagi
A health insurance policy is taken to protect the insured from unforeseen medical exigencies. Therefore, pre-existing diseases are usually not covered in the year the policy is first bought.
Initially, the insurer doesn’t even entertain claims for sickness or disease within 30 days of the commencement of the policy. However, if the policy is renewed regularly for a couple of years, most insurers, including National Insurance, start giving cover for pre-existing diseases too.
I am buying my first car. Please tell me about the risks covered under a comprehensive car insurance policy.
—Sri Jaiswal
A comprehensive car insurance policy covers any loss or damage caused to the vehicle due to an accident or any other external damage. The coverage is very wide and includes loss due to fire, explosion, riots, strikes, malicious acts, theft, flood, earthquake, legal protection for death or injury claims from third parties and damage to third party property.
In addition to this, you can get personal accident cover for owner/driver, paid drivers and passengers by paying extra premium.
A car insurance policy has some standard exclusion clauses. Mechanical and electrical breakdown, normal wear and tear and depreciation are not covered under the policy. Damage caused by a person driving the car without a valid licence, or under the influence of alcohol or drugs is also not covered. There is also a “copayment clause” under which you bear a portion of the claim, which means a lower premium for you.
I am shifting to a new house. I will convert the first floor of the house into my office and use the ground floor as my residence. Will a householder’s policy cover both floors? How will the compensation be paid in the event of a mishap?
—015Balbir Singh
A householder’s policy has two sections. The first one provides insurance cover for the structure and the second, for household goods. You can buy separate policies—one to cover the structure and the other to cover the contents. You can also buy a common policy covering both. A householder’s policy can be bought for a building only when it is used for residential purposes. So your first floor will not be covered. For that you can take a comprehensive cover under the shopkeeper’s insurance policy to insure the structure and office goods.
In the event of a mishap that may arise due to insured perils such as a fire, lightning or earthquake, the reconstruction cost of the building, subject to the sum insured, is paid to the policyholder.
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First Published: Sun, Jul 19 2009. 10 12 PM IST