VEHICLE INSURANCE

In case of an insured vehicle, if it is stolen and recovered, but found to be in damaged conditions, what is the process of claiming insurance?
It depends on a number of factors. The insurance company with which the vehicle was covered will have to assess the damage. The company will assign their own surveyors for this, similar to any accident inspection/survey procedure.
In addition, if the police have made the recovery, you must get a document from the police station under which the recovered vehicle is kept. This document, termed a recovery memo, is issued by the station officer or officer-in-charge of the station, and lists the car, the circumstances and the condition in which it was recovered. This lists, in detail, the damages made to the vehicle. This document is the primary basis for any subsequent claims to the insurer, and proof of damage. Based on the police records, the surveyor/inspector for the insurance company will estimate and recommend the loss amount, to be settled by the company.

MEDICLAIM POLICY

Why is a mediclaim insurance policy required and how do I choose a suitable one?

Healthcare costs have gone up, more so in the case of critical illnesses. In case of such emergencies which involve large expenses, you need a proper cover. This is even more important if you are a salaried person with only fixed access to large emergency expenses.
There are other benefits too. The premium to take health (medical) insurance, either for self or family gives a tax benefit, being allowed as a deduction from income under Section 80D of the Income Tax Act, 1961. As far as the method of payment is concerned, the insurance company either pays directly to the hospital or other medical institution, or it reimburses your expenses. Companies which provide mediclaim policies also have a list of both illnesses they insure, and institutions where the policy may be availed of.
Any one of several insurers provide reliable medical cover. Your choice should be based on the amount, the terms and the convenience of payment of the insured amount, as well as the reputation of the insurance company concerned.

Time To Run For A Cover

With more and more terrorist attacks being reported from across the country, you need to cover your life as well as assets.

Four serial blasts within six months. Many lives lost, many others left maimed for life, and still others left with nothing at all—loved ones or property. While the blasts in Jaipur, Bangalore, Ahmedabad and more recently in Delhi have left deep scars on the victims, they have also created a sense of insecurity among people.
Uncertainty prevails—be it life or property. And that gives you enough reason to take steps to secure the future, at least financially. To protect yourself from the implications of a terrorist strike, you need adequate cover for your life as well as assets. Here’s a list of insurance covers that you must have in these uncertain times.

The Must-Have Covers ,

Covering your Life
The risk that your life carries is death, hospitalisation and physical impairment. Accordingly, you need life insurance, health insurance and personal accident cover for the respective risks.
COVERING YOUR ASSETS
Your vehicle and house could be at risk during a terrorist strike.

UNIT LINK INSURANCE PLAN

I want to invest Rs 30,000 annually in a unit-linked insurance plan (Ulip). How should I choose a good plan?
A Ulip would be good for you only if it fulfills your requirement and gives you the kind of return you want. Your risk appetite should be the deciding criterion in choosing the plan. For instance, if you have a high risk appetite, an aggressive investment option with a higher equity component is more suitable for you. Compare products offered by various insurance companies on parameters like expenses, premium payments, lock-in period, among others. Compare the Ulips’ performance: find out how the debt, equity and balanced schemes are performing. Also study the portfolios of various plans. Expenses are a major factor in Ulips, hence assess this parameter as well.
Ask about the top-up facility offered by Ulips. This option enables policyholders to increase premium amounts, providing an opportunity to gainfully invest any surplus funds available. Find out about the number of times you can make free switches (changes in the asset allocation of your Ulip account) from one investment plan to another. Some insurance companies offer multiple free switches every year while others do so only after a stipulated period. After assessing all these factors, you can make your choice.

TAXABILITY OF PENSION PLANS

Please explain the taxability of pension plans—with life cover and without life cover. If I have not claimed any deduction from my total income under Section 80CCC at the time of depositing the premium amount, will either of my pension or withdrawal be considered as tax-free?

The ‘with cover’ pension plans offer an assured life cover in case of an eventuality, even if the corpus built till the date of death happens to be below that amount. Under the ‘without cover’ pension plan, the corpus built till the date of death (net of deductions like expenses and premiums unpaid) is given out to the nominees in case of an eventuality, with no sum assured. The taxability of a pension plan is determined in two stages. The first is at the time of making annual premium payments. For life insurance plans, the premium which is paid is eligible for deduction under Section 80C. On the other hand, Premium payments towards pension plans are eligible for deduction under Section 80CCC. The overall limit for deduction under Sections 80C and CCC is Rs 1 lakh. In other words, one is eligible for same tax deduction for the premium amount paid for; with or without life cover pension plans.
At the time of maturity, the commuted value of the pension which is received from a life insurance plan is tax-free. However, the monthly pension amounts are fully taxable, irrespective of whether or not the plan holder claimed the deduction under Section 80C or CCC at the time of payment of premium.

HEALTH INSURANCE

How is health insurance premium decided? Why do different people have different premiums?
The amount of premium for medical insurance depends on numerous factors and is calculated on the extent and nature of the cover you want. The rate of premium is directly related to the amount of sum insured. Also, if the insured is at a higher risk, he will be charged more premiums. For example, an older person will have to pay a higher premium for health insurance for the same sum insured. Further, two people with similar profiles may have to pay different premiums as their medical conditions may differ. Insurance companies also take into account the medical condition of the insured in the previous years and the number of claims filed by a person in last one year. All these conditions impact the premium amount for the future years.

RENEWAL OF POLICY

How to renew a life insurance policy online. Is it mandatory to have a Visa card for that? What are the other methods?

First, check with the insurance company if they have the option of online payment of renewal premium. Most insurance companies today have their own websites, through which anyone can pay premium online, provided he has a valid Master or a Visa debit/credit card. Another way of making premium payments is by using Net banking accounts of authorised banks. Once you click on the bank with which you have a Net banking I.D., you are directed to the online page of your banker, where you type in your bank login I.D. and password. On logging in, the total amount to be paid to the insurer is displayed. After the transaction is successfully completed, a digitally signed e-receipt is generated for your record.