General Insurance
Health and Accident Insurance
Illness can impact your wealth in two ways. One, it results in an unexpected outflow from your current wealth. Second, it impacts the ability of the individual to earn his income for an uncertain period. Over and above, the cost of medical treatment is increasing. To cope with medical emergencies and come out financially unscathed while ensuring the best possible treatment, Health Insurance is a must.
The features of the main forms for Health Insurance are capsuled here:
| HEALTH INSURANCE (MEDICLAIM) |
CRITICAL ILLNESS INSURANCE |
PERSONAL ACCIDENT INSURANCE |
|
|---|---|---|---|
| Who is eligible for the cover? |
Minimum age of 5 years for individual cover, Minimum age of 91 days for family floater plan. | For proposer and spouse – Minimum 18 years to Maximum of 65 years. For dependent children – Minimum 6 years to Maximum of 21 years for family floater plan. | Minimum age of 18 years to Maximum age of 70 years for individuals with active income. A family floater is also possible to cover non-earning members including spouse and children along with the proposer. |
| When should one take the cover? |
Ideally as soon as one starts earning. This has two advantages: 1) Most insurance covers exempt people in the junior age bracket from medical tests. 2) the initial premium is low since the probability of illness at a younger age is lower. | The policy is suited for families where certain illnesses have been hereditary. Ideally one should obtain cover for all family members when they reach the eligible age. | Ideally as soon as one starts earning. |
| What does the policy cover? |
Health Insurance will cover costs of Hospitalization, Pre and Post Hospitalization, Day surgery, Preventive Health check-up. | The benefit amount is payable on diagnosis of the disease and subject to minimum survival period of the insured post the diagnosis. | Bodily injuries, partial or total disability, or death due to accident caused by external factors will be covered. The Policy will also cover expenses for transfer of mortal remains and funeral. |
| What are the other key features? |
The Cover will feature Cashless Healthcare, No-claim bonus, Nil or partial cap on room rent and other charges, lifelong renewability, etc. | If the life assured has both a mediclaim policy and a critical illness policy, the expenses related to the illness will be covered by the mediclaim. In addition, the total payout from the critical illness policy will be credited to the life assured, and the critical illness policy will be considered null and void. | Insurance could include Children’s education benefit, loan protector cover, protection from loss of income due to disability. |
| What should be the amount of cover that one should take? | The medical cover should ideally be equal to the annual income. | The medical cover should ideally be equal to the annual income. | The medical cover should ideally be equal to ten times the annual income. |
| What is the tax benefit available for premium paid? | Deductions u/s Sec 80D of the Income Tax Act: Rs.25,000 – premium for self, spouse, children aged < 60 years, Rs. 50,000 if age 60 & above of any person therein Rs.25,000 – premium for parent < 60 years, Rs. 50,000 if age 60 & above of any parent therein. | There is no tax benefit in this policy. | |
Note: Nature and extent of coverage, and features will vary subject to the specific policy taken.
Other General Insurance Covers
Illness can impact your wealth in two ways. One, it results in an unexpected outflow from your current wealth. Second, it impacts the ability of the individual to earn his income for an uncertain period. Over and above, the cost of medical treatment is increasing. To cope with medical emergencies and come out financially unscathed while ensuring the best possible treatment, Health Insurance is a must.
Travel Insurance
These policies cover medical assistance, emergency situations like evacuation due to natural calamity or terrorist activity, flight cancellations/ delay, loss of baggage/ passport, etc. Travel Insurance is available for Individuals, Families, and for Frequent Flyers (multi-trip coverage).
Vehicle Insurance
Vehicle Insurance is of two types:
- Third Party liability cover which is mandated by law and encompasses your financial liability for harm to any individual or third-party property.
- Comprehensive cover which also protects you from financial loss due to damage suffered by your own vehicle.
Home Insurance
These are covers for financial liability caused to your home by man made or natural calamities and include the cost of the structure and cost of the contents of the home. One could take cover for replacement value or market value.
In addition, there are a multitude of general insurance policies to cover financial liability arising from various events and commercial transactions.
