BAD SERVICE

I took a house loan last year. The property price are declining, will the bank recover the difference in price?

The loan amount is based on the borrower’s ability to repay, or the worth of the property, or both. Most loans are based on the borrower’s income. Fall in the value of property will be a loss to the borrower, not the bank. If the loan amount is linked to the property value, the bank will seek a revision of the terms. In either case, the bank will act on possible default from fall in prices. You should use your own funds to the extent of expected decline in value, and take the loan only for the rest.

ACCIDENT POLICY FOR ABROAD TREATMENT COVER

I lost my left leg in a car accident when I was 20 years old and took a health policy at the age of 26. I plan to get an artificial leg made for me from the US. Will my health policy cover the cost of this artificial limb and the cost of any repairs? Is there a rule that the cost of artificial limbs will be covered only if they are made in India?
As a general rule, all health insurance policies exclude the pre-existing diseases or any sort of physical handicap from the scope of coverage of the policy. Since you lost your leg six years before the commencement of your health insurance policy, unfortunately, the policy will neither cover the cost of the artificial limb nor the cost of any repairs. Mediclaim insurance policies, which are issued in India, are operative within the geographical territory of India. Therefore, in order to qualify for the claim (if coverage is established under the policy), the treatment must be taken in India itself.

I purchased a car recently. Should I take a motor insurance policy now, or wait for detariffing to get implemented fully? I have heard that premiums will come down after detariffing.
It is true that after the detariffing of motor premiums has taken place, the premium has started coming down because of competition in the market. But, in our opinion, once you have purchased the car, you must get it insured immediately. You may get a slight advantage in pricing by delaying buying of the insurance policy for your car, but at the same time you are running a very heavy risk by not insuring your vehicle, especially for third-party losses. In any case, third-party insurance is compulsory by law. Therefore, you must have at least that part of the cover if you are bringing the car on the road.

BURGLARY POLICY

I have a burglary policy for my belongings, including jewellery. I went to a wedding, where I lost one of the pieces of jewellery I was wearing. Will I get compensation for it?
From your question it is not clear which policy are you holding to cover your belongings, including the jewellery. If you have a stand-alone burglary policy on the premises, the loss will not be payable. However, if you have covered your jewellery, under the ‘all risks’ section of the householder’s policy, you will be entitled to claim the loss of the jewellery from your insurers. In order to be able to claim the loss, you must inform the police.

PET ANIMAL INSURANCE POLICY

I plan to move my pet dogs from Ahmedabad to Delhi by train. Can I insure the dogs for the journey?
There is no particular insurance to cover the pet dog for the journey. However, you can always take a pet dog insurance policy, which will provide coverage to your dog anywhere in India, including the journey from Ahmedabad to Delhi by train.

NO CLAIM BONUS

If I change my health policy from one company to another, can I carry over my no-claims bonus?
When you change your health policy from one company to another, usually the company renewing the policy will give you the credit for the accumulated bonus earned by you during the previous policy periods. Some insurers pass the benefit of no-claims bonus on the basis of renewal notice issued by the previous insurer. Some may, however, first renew the policy without mentioning the amount of no-claims bonus credited on the face of the policy and later pass an endorsement to that effect after receiving a written confirmation from the previous insurer in respect of no-claims bonus. The policy renewing company may also ask you to undergo a medical examination before the grant of the policy.

PENSION PLAN

I purchased a Jeevan Nidhi policy from LIC, choosing the deferment age of 50 years for pension. What happens if I die before the age of 50?
In case of Jeevan Nidhi policy of LIC, on the death of the life assured during the deferment period of the policy, that is before the annuity vests (in your case it is the age of 50 years), an amount equal to the sum assured under the basic plan along with the accrued guaranteed additions, simple reversionary bonuses and terminal bonus, if any, will be paid in a lump sum to the appointed nominee. The nominee will also have the option to buy an annuity with the amount payable to him/her.