Is it possible to add your grandchildren (4 and 5 years old), son (29) and daughter-in-law (28) as nominees when taking a life insurance plan? I am 53 and an executive in an MNC. I am okay with paying higher premiums.

—Yatin Singh

You can add all your children and grandchildren as nominees in your life insurance policy. For each nominee, you can specify the intended proportion. They will be paid accordingly. 

For every minor nominee, you would need to specify an appointee as well. The insurer will pay the proceeds to the appointee in case the nominee is still a minor at the time of the insured’s death. The appointee is meant to hold the money in custody for the minor when they become adults.

I have a small studio in my house where I keep a few expensive paintings, some vintage watches and a few rare artefacts. I also have a vintage car (1924 model). I wish to insure these. Can these be insured? How does an insurer determine the price of such items? What are the prevailing average premium rates for such things?

—Kailash Sarkar

Paintings, artefacts and jewellery can be insured under an all-risk policy. Risks such as fire, theft, burglary and accidental damages can be covered under this insurance. You will have to get an independent valuation of these assets. There are approved valuers of insurers who can be appointed for this. Typically for a painting, valuation charge is about 1,500 per painting. For other items, a lump sum can be fixed. The cost of valuer will have to be borne by you. Typical insurance rates for such items are between 0.3% and 0.5% of the sum assured. So, 50 lakh of sum assured will cost about 25,000 per year. 

Vintage cars can be covered under a motor insurance policy. The process to arrive at the valuation is similar to that of valuables. The premium rates are similar to that charged for standard motor insurance and can vary considerably depending on the insurer.

A friend recently told me about title insurance. What is it exactly? Do Indian insurers offer it? Please advise if it’s a good idea to take title insurance.

—Raman Pandey

Title insurance is meant to protect you from any defect in the ownership title of your property. The policy gets triggered if a dispute arises for faults such as issues in ownership chain, forgery, or improper execution of the title document. The insurance covers defence of the insured, indemnification of third party for losses suffered by them, and indemnification of the insured for actual losses suffered.

This product was recently launched in India. Thus far, insurers are focused on providing group cover via developers, housing finance firms, and resident welfare associations. The emphasis on individual title insurance is limited. You may want to approach your residents’ welfare association to explore a group policy for all the homeowners.

The minimum term of coverage for this product is seven years extendable to 15 years. It costs about 1.5 to 2 lakh to insure a property worth 1 crore for seven years.

Abhishek Bondia is principal officer and MD, SecureNow.in. Queries and views at mintmoney@livemint.com

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