I am 35 years old. I am thinking of buying a family floater health insurance policy for my family. My family includes my wife, 33, one child, 2, and two dependant parents, aged 66 and 64 years. Should I include my parents under the same plan or should I buy a separate plan for them?
—Name withheld on request
Though many family floater health plans cover dependant parents, it is better to buy a separate cover for several reasons. First, in some plans, the premium is calculated based on the age of the eldest member. When you cover your senior citizen parents, the premium will be calculated on your eldest parent’s age, which is 66 years. This may increase the premiums for the entire family. Second, a standard family floater plan has a pre-existing waiting period of four years. Plans that offer lower waiting period may turn out to be expensive for parents.
Finally, with age, individuals tend to incur more claims. A single claim then hampers the no-claim bonus (NCB) for the entire family.
I own a Honda car which I bought last year. The insurance policy on the car was also bought from the dealer. My policy is up for renewal next month. My dealer has called me to renew my policy. Should I renew the policy with the dealer or shop around?
While automobile dealers offer car insurance, they do not hold any significant advantage either in terms of price or claims servicing. So you can evaluate your options.
While considering other options, ensure you negotiate the best discounts on the own-damage part of your insurance. Also, consider add-ons such as zero depreciation, hydrostatic lock and consumables cover, which you must have. Other add-ons such as NCB protection are also good to have. Finally, consider an insurer that provides cashless service at your preferred servicing garage. That will make the documentation process easier for you.
A few insurers have initiated disbursing an advance amount based on an estimate of the claim. This provides immediate relief to the claimant and additional flexibility. It may be worth exploring such insurers even if they are not the cheapest.
Abhishek Bondia is principal officer and MD, SecureNow.in