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Motor insurance doesn’t cover wear and tear

Residential status would not impact the settlement of your claim

I have a life insurance policy in India, but I work in Nigeria. Will my residential status affect my claim disbursal? Also, will my dependants get the claim in case of my demise and what will be the procedure?

—Arvind Kumar Singh

Residential status would not impact the settlement of your claim. In case of your demise, your nominee would get the sum assured after the claim is filed. To file a claim, the insurer should be informed. The nominee should fill up and submit a death claim form along with the death certificate, his or her identity proof and bank details. The company would verify the details and then pay the claim directly into the bank account of your nominee. Claim settlement would happen in India and the payment will be made in Indian currency. You should, however, inform the insurer about the change in residential address, and update the email ID to get all communications.

I bought a life insurance policy in November. However, I haven’t yet received the policy bond. Is it possible to cancel the policy and get a refund?

—Ankush Lad

Life insurance policies carry a free-look period within which you can cancel the policy. Within this period, surrender charges are not applicable. You will be eligible for premium refund after deduction of proportionate risk premium for the coverage period, expenses incurred by the insurer on medical examination and stamp duty charges. The free-look period is of 15 days from the date of receipt of the policy document. Since you haven’t received the document, you are within the free-look period. To cancel the policy, you have to give a written notice to the insurer. If you want to continue, then you can write to the grievance cell of the insurer about the non-delivery of the policy document. Mention the payment proof, mode of purchase and attach a copy of the proposal form.

My car has been parked for over a month now. I tried to restart it recently, but it wouldn’t. I spoke to my mechanic who said there could be a battery failure. Will my motor insurance policy cover the cost?

—Samir Singh

Prolonged non-usage often leads to battery failure in cars. This falls within normal wear and tear of the vehicle and will not be covered under insurance. Insurance generally covers losses caused by an accident such as fire, collision or a natural catastrophe such as earthquake or flood.

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

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