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Ask Mint Money | Some householder’s plans lapse if house remains unoccupied

Ask Mint Money | Some householder’s plans lapse if house remains unoccupied
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First Published: Tue, Oct 11 2011. 10 48 PM IST
Updated: Tue, Oct 11 2011. 10 48 PM IST
Is there any change in the premium for car insurance after the year of purchase?
-Rohan Sen
Insurers charge a percentage of the car’s value as premium. This percentage reduces a bit if there is no claim made in a year and the percentage increases for every subsequent claim-free year. However, if a claim is taken, the percentage remains the same. The premium also reduces because the value of car reduces each year and thus the base on which the premium is charged reduces.
I work in Delhi and have bought a house in Kerala, which will remain empty for now. Should I take a householder’s policy? How much cover should I take?
-Thomas
You should get your house insured. Householder’s policy covers the structure of the house. Therefore, its construction value should be insured. A thumb rule to arrive at the value is to multiply the covered area (in sq. ft) of the house with 1,200. You will get the approximate construction cost of your house, which is the insurance value.
Note that householder’s policy of some insurers lapses if the covered building remains unoccupied for at least 30 days. Therefore, ensure your policy does not have this clause.
My mother, 62, has a health insurance policy from a private insurer, which will cover her only till the age of 70. I have heard that in the coming days it will be possible to port policies. Should I opt for an insurer that covers for a longer period now or wait till she turns 70? Please advise?
-Shrimant Narayan
Yes, it is possible to switch over to a new insurer. The policy can be ported to a new insurer at the time of renewal; the request to has to be made at least 45 days before the renewal. But the new insurer is not bound to accept the proposal.
In my view you should change over to a new insurer that provides renewal up to at least 80 years as soon as possible since the reluctance of the insurers to accept your mother’s proposal will only increase as her age increases.
Are motor insurance policies available online?
-Naina
Motor insurance is available online. You can either go to the websites of insurers or insurance brokers. You will get the list of websites of the insurers on the regulator’s website, www.irdaindia.org.
In case there is break in your insurance, then it is advisable to seek an agent’s help. This will entail an inspection of the vehicle and submission of various documents such as vehicle’s registration certificate and the last policy document. So it is best to do it offline.
In case you are looking for renewal and the current policy has not expired, then an online renewal will be convenient.
Queries and views at mintmoney@livemint.com
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First Published: Tue, Oct 11 2011. 10 48 PM IST