Photo: iStock
Photo: iStock

Comprehensive motor insurance policy covers transport of vehicle by rail

So, in case of damage, you can make a claim using your existing motor insurance policy

I am moving to a new city and will be transporting my bike by train. In case there is any damage during the transport, who will cover the costs? My comprehensive car insurance policy, the transporter/his insurer, or should I buy a top-up plan for it? How will the price of the top-up cover be calculated? 

—Neha Kaushik

Comprehensive motor insurance policy covers the transfer of vehicle by rail. So, in case of damage, you can make a claim using your existing motor insurance policy. 

The transporter may have also taken a marine insurance policy. If the damage occurs due to the transporter’s negligence, you should first make a claim on the transporter, who may recover this from his insurance. This will ensure that the no-claim bonus or NCB on your motor insurance does not get affected. In case you are unable to get compensated by the transporter, you can resort to your motor insurance policy. In any case, you are not expected to make a claim directly with your transporter’s insurer.

My wife has been diagnosed with zero stage cancer (mutation in cells) and has a cancer insurance policy. She was hospitalised for two weeks. Can she claim insurance? 

—Ayush Verma

Whether your wife can make a claim on her cancer insurance policy or not depends upon the specific terms in the policy. Most cancer-specific plans payout claims at early stages of cancer, so it is likely that they will cover this. Typically, the payout is a proportion of the overall sum assured. In case the cancer develops further, the balance sum assured is paid. Several plans also offer the benefit of waiver of future premiums after an early-stage cancer is diagnosed. Her coverage will continue as-is during this period.

This is generally not true of critical illness plans. Under critical illness plans, the insured person becomes eligible for payout only for cancer of specified severity, typically in more advanced stages.

I have a 10-year-old car. I have never made an insurance claim on it. I want to stop taking own- damage insurance and go only with third-party insurance. But if I want to renew the own damage insurance after a few years from now, will I still get no-claim bonus? 

—Suraj Raichand

You can easily switch from a comprehensive motor insurance policy to a third-party liability-only policy. However, your NCB will lapse after 90 days of the previous policy’s expiry. Considering that you have never made a claim before, you are carrying the maximum NCB. Further, the insured declared value (IDV) of the car would have also come down significantly over the years. As a result, your premium savings by discontinuing insurance will not be substantial. I recommend that you keep the insurance intact. Some insurers may allow you the option of reducing your IDV further to minimise premiums.

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

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