Ask Mint | Shift house, shift cover for contents

Ask Mint | Shift house, shift cover for contents
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First Published: Tue, Apr 13 2010. 10 25 PM IST

Updated: Tue, Apr 13 2010. 10 25 PM IST
I have rented out my flat where I used to live earlier. I have a fire insurance for that apartment. Now that I have moved out, will the policy be valid? Who will be the beneficiary?
—Sapna Mridul
Home insurance policy has two parts—one covers the building, while the other covers the contents of the house, such as furniture, clothes and electronic goods. If your current policy covers only the building then it is valid and you need not make any changes. However, if your policy covers both the building and the contents then you need to inform the insurer and get the contents removed from the policy. You will be issued a new policy, which will cover the contents and will mention your new address as the “location of risk”. Since your earlier apartment and the contents are owned by you, you will continue to be the beneficiary.
My car was stolen two months back. I registered an FIR (first information report). My insurer says that it will take some time before they give me the compensation. What should I do?
—Jeevan Thakur
Insurers need two documents to settle a claim for car theft. The first document is an FIR which you already have. The second document is a “not traceable report” (NTR). This report will be issued by the police station where you got the FIR registered. The NTR is normally issued 90 days after the FIR is registered. On submission of both these documents your insurer will pay the claim.
I plan to get a health insurance for myself and have been researching several insurers. I found that some companies offer something that another doesn’t, such as out-patient cost. Should I take two policies covering different needs? Can I club the hospitalization cost covered by both of them just in case the bill is beyond the limit of one policy? What can be the fallout?
—Abhay Vardhan
The core cover given by all the insurers is almost the same. Taking two policies will be costlier than taking a single policy with the same sum insured that the two policies add up. Moreover, two insurance policies will have two different third-party administrators. You will have to create two sets of documents, file two claims and follow up with two insurers.
Hence, it is advisable to take a single policy with a higher sum insured even if you have to sacrifice a few features.
Can I take travel insurance for a trip with friends by car? Will all of us be covered under a single insurance or we need separate covers? Also, will it cover medical bills in an emergency?
—Subhash Agarwal
You can take a domestic travel insurance policy. But it is advisable that all of you take a separate personal accident policy and a separate health insurance policy for a comprehensive cover.
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First Published: Tue, Apr 13 2010. 10 25 PM IST