Co-pay, room rent, disease capping are key factors when selecting health plans

We had a wedding in the family planned for June this year, but because of the covid-19 pandemic, we decided to postpone it. We had taken out some of our heirloom jewellery from the bank locker for the occasion, but because of the lockdown, we have to keep the jewellery at home. We do have a home insurance cover. My question is, in case there is loss or theft of the jewellery, will it be covered under the home insurance policy that we have taken?

—Name withheld on request

Standard home insurance plans do not cover jewellery stored at home. However, a few plans offer a built-in add-on to cover jewellery. This, typically, comes with a sub-limit. You should check the coverage of your existing home insurance policy to find out if there is a separate limit defined specially for jewellery kept at home.

In case your policy does not cover jewellery or the limit is low, you can buy a standalone policy to cover jewellery. Generally, for high-value items, insurers require a valuation report to fix the sum assured. This also helps avoid disputes at the time of making the claim. Considering the ongoing lockdown in the country, you can request the insurance company to consider an old valuation report.

My brother and I are employed in multinational companies, which are offering good health insurance plans. We are planning to include our dependant parents in one of the policies, as they don’t have any health insurance currently. What should we look at to figure out which of our insurance policies is better suited for this purpose?

—Rakesh K. Lamba

Generally, the coverage amount offered under health insurance plans by the companies to their employees is below ₹5 lakh. Ideally, your parents should be covered for at least ₹10 lakh or more, based on their lifestyle and current health conditions. Therefore, you can choose to insure your parents under both the policies offered by your respective employers for a wider scope of coverage.

Apart from the sum insured and premium, you should also consider the following factors while choosing a policy.

Co-pay: This is the portion of the claim that you would have to bear. Co-payment for parents in group policies is common. Opt for a plan with lower co-pay.

Room rent: This restricts the type of room you can avail of at the hospital. Treatment costs at hospitals vary significantly in line with the room type chosen. If you avail of a room outside your eligibility, the incremental treatment costs will not be payable.

Disease capping: Some common treatments such as cataract may be capped. You should choose a health policy with reasonable capping or no capping at all.

Abhishek Bondia is principal officer and managing director, SecureNow.in. You can send in your queries and views at mintmoney@livemint.com