Two insurance policies will not reimburse for the same expense

Health insurance policies, which are indemnity policies, do not allow the insured to claim more than their actual expenditure


Pradeep Gaur/Mint
Pradeep Gaur/Mint

Can I take a health insurance plan for my parents who are senior citizens? Are there any tax benefits that I can avail of if I pay the premiums for the insurance policy?

—Shalin Gupta

Yes, you can be a proposer for your parents’ health insurance policy. If your parents are below 60 years of age, you can get a tax deduction up to Rs.25,000.

If they are older than 60 years, then the deduction eligibility increases to Rs.30,000. This is in addition to the deduction allowed for your family’s health insurance policy.

Can my insurer limit the number of claims I make in my motor insurance policy?

—Chris D’Silva

Typically, a motor insurance policy does not restrict the number of claims in a year.

However, in case of certain add-ons such as the zero depreciation cover, some insurance companies have limitations in their policies. They may allow two or three claims specifically for these add-ons.

Do children have to go through a medical check-up at the time of being included in a health insurance plan?

—Ganesh S.

Generally, most insurance companies would not require the child to undergo medical tests before issuing a plan. However, if the proposal form mentions a pre-existing condition for the child, then the insurer may ask for a medical check-up.

At times, when the sum assured is high, the insurer may ask for a medical check-up based on its underwriting practice.

I am covered by my employer’s group mediclaim policy. Do I need to buy a separate cover? In case of a claim, will I get paid from both policies?

—Purnendu Singh

I recommend having a health insurance cover over and above your employer’s group mediclaim policy. This is useful if you switch jobs or if your employer changes the health insurance benefits.

All individual insurance policies have a waiting period. Buying a policy early on helps you get past the waiting period hurdle. If you want to save premium, buy a top-up health insurance rather than a regular medical policy. A top-up comes with a deductible. Claims above the deductible amount are admissible in a top-up policy. Due to the deductible, the top-up policy premium is significantly cheaper than for a usual plan.

You should keep in mind that two health insurance policies will not reimburse for the same expenditure. Health insurance policies, which are indemnity policies, do not allow the insured to claim more than their actual expenditure. However, in case the sum assured is used up in one policy, you can claim the remaining amount of the same claim from the second policy.

Insurers will ask for original bills and documents as proof for the payment by the other insurer to make sure that there is no double payment.

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