Ask Mint Money | Even if employer provides health cover, buy a personal policy

Ask Mint Money | Even if employer provides health cover, buy a personal policy

I am 29 years old and have a health insurance of 3 lakh provided by my employer. I want to know whether I should buy another health policy as I have been switching jobs. If yes, please suggest which policy and what riders should I opt for?

—Sanjay Jain

It is very important to have a personal health insurance. One of the reasons, as mentioned by you, is that during job transition one is without any health insurance and medical expenses during this period will have to borne personally.

Moreover, insurance companies don’t easily give health insurance cover to persons of higher age. They ask for many test and all ailments indicated in the tests are not covered. So, it may be difficult to get a health cover at the time of retirement. Old age is the time when you need health insurance the most. Hence, it makes sense to take health insurance as early as possible.

Current trends also indicate that group health insurance will get costly in the immediate future. Employers may be forced to curtail benefits under group health insurance or even withdraw group health insurance. A personal insurance will provide support in such a case.

Health insurance policies are available with all non-life insurance companies and some life insurance companies. I would recommend a policy from a non-life insurer because of the wider cover and competitive prices offered by them. You can also consider a policy from specialized health insurance companies. Though their policies are a bit costlier but they provide life time renewal and optional benefits such as maternity cover which other non-life insurers do not provide.

I met with a car accident and the person who hit my car paid for the entire damage. I had taken a motor insurance three years back. Can I claim insurance on this accident?

—Jatin Kumar

The main objective of insurance is to reimburse the loss that the insured person suffers. In this case you have not suffered any loss since the loss has been made good by the other party. To that extent it is not fair to make a claim on the insurer. However, you can approach the insurer to reimburse the loss. If the insurer comes to know that your loss has been paid by the other party, they may refuse the claim. Moreover, if you take a claim, you will lose your no-claim bonus and will end up paying more premium on policy renewal. Overall my advice would be to not do so.

Rahul Aggarwal is director, Optima Insurance Brokers

Queries and views at