I will buy a car next month worth at least Rs 10 lakh after selling the old one. How should I decide on the amount of car insurance?
The value of the new vehicle, for the purpose of insurance is taken as the invoice value less 5%. In the subsequent years, the depreciation percentage on the vehicle will increase and is as per the chart published in the motor insurance policy. The insurers have limited flexibility to deviate from this chart.
Photo: AFPI keep travelling out of India. Can I buy a travel insurance for 365 days to avoid taking insurance each time I fly?
All general insurers provide an annual multi-visit travel insurance cover. This cover is not only more convenient for frequent travellers but cheaper also. The only point you should keep in mind is that the total travel days should not exceed 180 days in a year and each travel period should not exceed 90 days. In case a particular travel duration is higher than 90 days, the insurer should be informed and an approval should be taken.
I am 24 years old and want to take a personal accident policy. What are the factors that determine the premium for such a cover?
A personal accident policy provides four benefits—cover for accidental death, accidental disability, loss of income if the insured becomes bedridden temporarily following an accident and medical expenses following an accident. The premium depends upon the benefits and sum insured chosen and the occupation of the insured. Accidental death is the base benefit and is compulsory. The insured can choose among the other three benefits. Insurers provide up to 60 times the monthly income as the sum insured. Some professionals such as engineers on project sites and electricians are seen as carrying more risk and hence insurers charge more premium from them.
I am 27 years old and earn Rs 1 lakh per month. I want to buy maximum health cover for myself. Do all insures give cover for pre-existing diseases?
A Rs 2 lakh cover would be good to start with for your age, although insurers provide covers up to Rs 10 lakh. All insurers cover pre-existing diseases after four years of continuous cover without a break.
Rahul Aggarwal is director, Optima Insurance Brokers
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