No-claim bonus in vehicle insurance can be transferred

I am 30 years old and have a two-year-old son. My current employer has given a family health plan of Rs 6 lakh. Do I need to take a personal health cover?

—Sanjay Verma

With multiplying career options, increasing propensity to change employers and increasing cost of health insurance it is being observed that many times people are left without a health insurance cover. It is therefore very important to have a personal health insurance cover even if a cover is provided by the employer. There could be a situation when you have served your notice period with the last employer and have not joined the new employer. During this period you would be without any cover.

A personal health cover would keep you financially secure. Similarly, a personal health cover would come handy if the medical expenses go beyond the cover provided by the employer. With increasing health insurance cost, many employers are withdrawing health insurance or restricting its value and benefits extended. A personal health cover can again provide relief if medical expenses are not covered by the employer’s insurance plan. A personal health insurance cover is, therefore, highly recommended.

My son is going to New Zealand for higher studies. Should we buy a health insurance policy for him from India or from New Zealand? Which will be cheaper?

—Gunjan

There are three health insurance options for students going abroad for studies. Universities run their internal health insurance schemes, provide a list of approved insurers in the country and provide a list of approved insurers in India. It is cheapest to buy health insurance from an Indian insurer. The only drawback is that many times the local hospitals and pharmacies in that city may not be in the network of the Indian insurer.

Hence, cashless benefit may not be available when required urgently. Medical bills will have to paid and reimbursement will have to taken from the Indian insurer.

I sold my old motorcycle for which I have a running motor insurance. Should I ask the new owner to buy another policy or can he continue with the same till it expires?

—S. Nath

You should keep your old policy if you were enjoying a no claim bonus (NCB) in the policy. This no claim bonus can be transferred on the insurance of the new vehicle that you may buy.

Your insurer will issue an NCB certificate to you. This certificate is valid for three years. It can reduce the cost insurance substantially if you were enjoying a high slab of NCB.

Rahul Aggarwal is Director, Optima Insurance Brokers

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