Readers’ Corner: General Insurance

I am constructing a house in my village. Should I buyinsurance for it now? Or wait till the construction is complete? What kind of insurance will I have to buy at the construction stage? Is it a regular householders’ policy?

There could be various accidental damages that can happen during construction of a building. There is ‘Contractors’ All Risk’ insurance cover which can provide protection against such accidental losses. You can opt to take this cover from the beginning of the project till its completion.

Given that there are so many reports of debit/credit card frauds, is there an insurance available for it? I own a small company and I have given corporate credit card to my CEO. Can I take insurance to protect the card from fraudulent use?

There is insurance available for credit card frauds. However, that can be taken only by the bank and not on an individual basis. Banks can offer credit card protection covers to their customers up to specified limits.

This may come at some nominal cost in case of some banks. Also, insurance is available for covering third party liabilities arising out of inadvertent breach of information/loss of data. This policy too can be taken by banks only.

Can I include my senior citizen parents in my family floater policy even if they live in another city?

Yes, you can include your senior citizen parents in your family floater. However, while doing so you need to ensure that you opt for an adequate sum insured to cover your family as well as your parents within the floater sum insured.

Another major point to be taken into consideration is the infrastructure of the insurance company, especially hospital network, at the place of residence of your parents. This is very important so that your parents do not face any difficulty if they have to undergo cashless hospitalisation.

I have a health insurance policy. Do I need a critical illness cover over and above this? How much more will my premium increase if I take this?

Yes, you should always go for a critical illness policy. Critical illness policies are benefit policies which pay money on diagnosis of any of the critical illnesses covered.

Critical illness covers actually protect the income generation capacity of the individual, if the policy is availed for proper sum insured.

On contracting a critical illness the income generation capacity of an individual may get affected, and this can be compensated by the benefit amount.

Critical Illness policies should be purchased in addition to a Hospitalisation Indemnity policy, which actually only pay for the actual hospitalisation expenses.

Since the policies pay for listed critical illnesses, these are not very expensive and the cost generally depends upon the number of critical illnesses the policy covers and the age of the individual.

I bought my car insurance from the car dealer when I purchased the vehicle. Now it is time for renewal. Can I do it online? Or do I need to go back to the dealer? Will there be any difference in the premium rates at the dealer as compared to online?

The customer is free to decide how he wants to renew the policy. All insurers provide the option of online renewal of policies.

Premium rate will depend upon the insurance company and it can be different for online renewal based on the underwriting considerations of the particular insurer.

Curated from Readers’ Corner: General Insurance

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