Benefits of Family Health Insurance - Family Health Insurance

There are numerous reasons why people stay away from health insurance. For instance, a lack of knowledge regarding the existing insurance products/services in the market and many misconceptions about health insurance in the market can lead you to be complacent or paranoid about getting a family health insurance.

To beat the increasing rates of medical care, a health insurance policy becomes very important. Medical emergencies might not only wipe out your entire life savings but also cause the stress of arranging for additional resources if required.

Numerous individuals and families have gone bankrupt while battling with rising medical expenses. Not having adequate health insurance not just leads to a financial drain but also affects the entire family emotionally.

mymoneykarma tells you the different reasons why you should get family health insurance.

Save Your Savings

Almost all medical treatments require a lot of money, and many medical procedures are insanely expensive. God forbid if you have to go through a surgery, it is likely to finish off your entire savings, or you may have to take out a personal loan. A comprehensive health insurance policy can save you from going broke.

Secure Your Family's Health.

Emergencies do not come with warnings. A sudden illness in the family can ruin your mental, physical and financial health. This is why you should buy health insurance for your family.

Avoid Hospital Troubles

Most health insurances in India have cashless treatment options. This saves you the trouble of arranging for finances, waiting in long hospital queues for insignificant things and other hospital-related difficulties. Also, the best health insurance plans have tie-ups with excellent hospitals with world-class healthcare.

You can be ensured of getting the best healthcare for you and your family. A family health insurance plan reduces tension and stress caused on account of hospitalization.

Save Your Income Tax

A health insurance policy is a means of savings and a safe investment option. It is a tax-saving instrument that significantly contributes to the reduction of tax deductions.

Affordable Healthcare for the Entire Family

By opting for a family floater option, you insure yourself and your family (spouse, two children, and parents) under a single policy at a reasonable cost. Many insurance companies today also provide health coverage for day care procedures - ensuring that you go back home to your loved ones at the earliest.

Your Family Comes First

You love your family and would want them to be safe and secure always. Buying a health insurance plan for your family is the best way of ensuring a protected life for them. This way, they can be prepared for any kind of medical emergencies that can occur to them.

Health Insurance - Best Health Insurance Policy For Parents

Just like getting a credit card when your credit score is low, purchasing a medi-claim policy for your parents can be tough. The options tend to be limited once your parents cross a certain age. You might also end up paying higher premiums and not get good deals from the insurance companies. Of course, you can avail further benefits by charging the premiums on your credit card, but that comes with issues of its own.

There is a silver lining, however. Many insurance providers are now coming up with attractive health insurance policies for people of ages 55 to 60. Many reputed companies such as Star Health and Bajaj Allianz have rolled out several plans, such as the Senior Citizen Red Carpet plan, that are customized for senior citizens. You can compare the features of different policies here and make a proper decision.

8 Best Health Insurance Policies for Your Parents

1. Star Health Red Carpet Plan

This policy covers citizens of up to 69 years of age. The sum that can be availed is from Rs. 1 lakh to Rs. 5 lakhs. The policy excludes diseases that have been treated 12 months before the inception of the plan, pre-existing diseases (within a waiting period of four months), and diseases occurring within a 30-day waiting period after the creation of the policy. The policy covers only 50% of the costs for a pre-existing illness. However, precursory medical tests are not a requirement.

2. Bajaj Allianz Silver Plan

This policy covers citizens of up to 75 years of age but can be renewed until they turn 80. The amount that can be availed is from Rs. 50,000 to Rs. 5 lakhs. The policy excludes pre-existing diseases that occur within a waiting period of four months, and any disease occurring within a 30-day waiting period since the inception of the plan. It requires 10% copayment for treatment in non-network hospitals, 20% copayment if the person is 56 years old or above, and 20% copayment for the first treatment under the plan.

3. Apollo Munich Easy Health

This policy covers citizens of up to 60 years of age. The amount that can be availed is from Rs. 1 lakh to Rs. 10 lakhs. The policy excludes any critical illness diagnosed within 30 days of inception of the policy and pre-existing illnesses that occur before a waiting period of 3 years. However, it provides cashless coverage for the treatment of diseases that are not excluded as per the conditions mentioned above.

4. Maxbupa Heartbeat

This policy covers people of ages up to 50 years. The policy covers accidental injuries but excludes any illness diagnosed within 90 days of inception of the insurance plan. There is a waiting period of two years for some conditions to be covered under the plan. People above 65 years of age need to make a copayment of 20%. The policy also requires medical tests to be taken after the insured person reaches the age of 45.

5. Oriental Insurance Hope

This plan does not have any upper age limit. The amount covered under the plan is from Rs. 1 lakh to Rs. 5 lakhs. The policy excludes pre-existing ailments up until 2 years and has a 30-day waiting period for covering any disease. People need to make a copayment of 20% for every claim, and the premiums are adjusted accordingly.

6. Chola Insurance Individual Cover

This policy covers citizens in the age group of 55-65 years. The sum that can be availed is from Rs. 10 lakhs to Rs. 50 lakhs. The policy excludes pre-existing diseases for a 4-year waiting period, and has a 30-day waiting period for all ailments. The policy provides cashless coverage for specified conditions and does not require medical tests.

7. Religare Health Insurance Care Freedom Senior Citizen Health Insurance Plan

This policy covers all citizens aged at least 45 years, with no upper limit on age. The amount that can be availed is from Rs. 3 lakhs to Rs. 10 lakhs. The policy excludes pre-existing diseases that occur within a 2-year waiting period, and a 30-day waiting period is applicable for all ailments. It also doesn't cover OPD treatments, congenital illnesses, self-inflicted injuries, injuries from substance abuse, HIV-AIDS treatments, infertility treatments, and treatments arising from pregnancy and childbirth, miscarriage, abortion, and its consequences. Insured people are expected to make copayments of up to 30% for each claim. The policy does not require medical tests.

8. Royal Sundaram RSA Lifeline Elite

This policy does not have an upper age limit. The sum that can be availed is from Rs. 25 lakhs to Rs. 1.5 crores. The policy excludes pre-existing diseases for a 2-year waiting period, critical illnesses before a 90-day waiting period, and has a 30-day waiting period for all diseases. It also doesn't cover conditions like cataract, hypertrophy, benign prostatic, chronic renal failure/end-stage renal failure, knee/hip replacement, etc. Insured individuals are expected to make copayments up to 30% for each claim. The policy does not require medical tests.

Car Insurance - Why should you get car insurance in India?

Insurance is a simple concept. You pay an amount of money as insurance premium per month to insure the object you are insuring against one or more unfortunate events. These events may cause temporary or permanent damage to the thing you are insuring, or it may cause monetary loss, etc. For the premium you pay, the insurance company gives a promise to give financial aid in case you meet with the agreed upon circumstances.

In this article, we shall look into the basics of the most common questions regarding car insurance in India.

Car insurance in India

In the recent past, the car insurance industry has undergone a number of positive changes. New-age digital insurance companies and new technologies have simplified the insurance industry. Now, you as a policy-holder do not need to depend on any agent to understand the various nuances of an insurance policy. You can see all the required information online. You can compare policies and generate quotes within minutes. You can even buy and renew policies under a few minutes due to the facilitation of online vehicle insurance.

Why should you get car insurance in India?

This is something you should get if you, of course, have a car. In fact, the Government of India does not allow you to drive on roads unless you have basic car insurance. This is done to protect you as well as the other party involved in road accidents or cases of car damage. In instances like natural calamities and car accidents, you can face financial loss. To make sure this does not happen, you need car insurance. See any road in a busy Indian city and you’ll get an idea that there are more vehicles than roads, in a manner of speaking. Driving on the road has become much tougher than what it used to be before, and thus you need car insurance.

Types of car insurance

There are two main types of car insurance:

Third-party liability car insurance policy: This policy is compulsory if you want to drive legally in India. If you don’t have it, or if it has expired and you get checked by the policy, there are heavy penalties to pay. You may end up in jail too.

Comprehensive car insurance policy: If you want all-round coverage, this is the car insurance policy type you want. It covers both the features of Limited Liability as well as Own Damage cover.

Steps Before Buying Your First Car Insurance - Car Insurance

Most people tend to get car insurance after buying the car. That may sound like a normal thing to do, but that is actually wrong. It is a big mistake which one makes without knowing! It can cost more money than they can account for. The best thing to do is to search for car insurance once you have a good idea of the type of car you will buy. Don’t get car insurance for a normal vehicle and later end up buying a sports car!

According to the Motor Vehicles Act 1988, it is mandatory for all car owners to have motor insurance. Buying a car? Make sure you have money to get the car insurance. Here are some important tips to aid you in getting the most suitable car insurance cover. 

Types of car insurance covers

In India, there are two types of car insurance plans. These are:

Third-party liability insurance plans:

These are plans which offer protection from all legal liabilities coming out of events like third-party injury, death and property damages. The plan protects you from all legal issues in case you are responsible for the accident, leading to damages above. If you drive in India, it is the minimum level of cover that you need. If you are apprehended without this type of insurance cover, you will see heavy penalties, possibly even jail time.

This insurance cover does not give coverage to the vehicle. That means if your car is damaged, you can’t make any claims with this insurance. Some insurance companies provide a Personal Accident cover for the car’s owner or driver, along with third-party liability insurance plans. It is cheaper than other types of motor insurance.

Comprehensive car insurance plan

This again has 2 main types of coverage:

1. Owner-damage cover: It protects the car from damages like floods, lightening, landslides etc, man-made disasters like strikes, thefts, riots, etc, and in-transit damages.

2. Third-party liability insurance: It covers the same as above.

Know your insurance needs

Several factors dictate how much car insurance you need. This includes the amount owed to the vehicle’s financer, the value of your asset, the number of dependents in your life, and the money you can afford when dealing during an accident.

All car owners should have an auto insurance policy with third-party liability insurance cover. If you have financed the car, or if you can’t replace the car easily, think about getting comprehensive car insurance. Think about getting appropriate add-on coverage, as well as your budget.

Comparison shop

Whether you are shopping for one type of car insurance or another, it is important to compare plans online. There are several financial websites from where you can get this information for free!

Once you get the car insurance’s estimated cost, you can compare it with the coverage offered, and finally decide on the best option. One important thing to find out is the reputation of the insurer.

Understand the policy’s coverage

Documents of an insurance policy are filled with many legal jargons, many of which you may be unfamiliar with. This is why you should carefully read all such documents and get all your questions answered at the onset by agents of the insurance company. Understand especially the conditions on the financial instrument.

Look out for bundling discounts

Have you purchased other forms of insurance from the same company? Things like home and health insurance? If so, there is a high chance you can get loyalty discounts for your car insurance if the insurer is the same.

Regularly assess your insurance requirements

Your insurance needs may vary as you progress through life. Thus, you should evaluate your needs regularly and update your insurance coverage. This is not just for car insurance, but for all insurance products too. To get the best possible insurance cover, it is essential to review your needs for insurance regularly.

Never let your insurance go on a lapse

You can’t legally drive without an insurance policy. Thus, if you have a car you should not let there be a lapse in the car insurance coverage. There are insurers who refuse you insure vehicles after a break in the insurance. Always renew your policy on time.

There are several factors which affect your car insurance rates. These factors are your age and gender, the area of registration of your car, your marital position, the purpose of your vehicle, and its make and model. This means the cost of your car’s insurance policy may not be the same as your neighbors. Remember this when getting car insurance.

Is Cheap Car Insurance a Good Idea? - Car Insurance

 When you are buying a new car, you should be getting car insurance as well as mandated by Indian law. However, you should not hurry the decision and take just any car insurance that comes your way. Don’t settle for low quality insurance. A low-priced insurance is generally not good as it gives significantly less coverage and presents a number of risks.

Here are all the reasons why now to fall for cheap car insurance traps.

Affordable and cheap car insurance

When it comes to car insurance, the cost of the insurance indicates the service or coverage which you’ll be getting from the insurer in case of an accident or damage. One thing you need to understand is that there is a gulf of difference between affordable and cheap car insurance. The cheap ones offer much less coverage, which means it may not be of much use. The affordable plans give you more than adequate coverage. Thus, it is important to compare the insurance policy rates and coverage.

Disadvantages of getting the cheapest auto insurance

Few people can resist the temptations of a low price tag. However, don’t let that deter you know getting the plan most suitable for you. Here are the drawbacks coming from cheapest car insurance

• Insufficient coverage
• Poor customer service
• You’ll have to pay a part of accident expenses despite giving high deductibles
• How to select a good car insurance policy
• Here are a few ways to help you find the best car insurance at affordable cost.
• Compare insurance between different providers.
• Compare their add-on covers specific to your needs.
• Negotiate price with the auto insurance company reasonably.
• study the claim settlement history of the insurance provider, and look for a success ratio of 85%
• Make sure that the insurer has a wide network of cashless garages and auto repair shops. With this, you can make sure that you can get problem-free claim settlement without the requirement of paying upfront damage repair fees.
• Check the cost to feature ratio. For all the cost you are giving, are the features enough? Be especially attentive to the Exclusions under the insurance plan to know in which circumstances the company won’t help you.
• Buy car insurance online. By doing this, you get discounts on premium without damaging the coverage. When they sell insurance online, insurance companies save significantly. There are no middlemen in the process, which saves distribution and processing costs. Insurers can therefore pass on these savings to the customer through premium discounts.
• There are various other discounts as well you get from insurance companies when buying a good product online. For instance, if you already have anti-theft measures installed, you have higher chances of getting lower cost. You also get discounts and loyalty discounts depending on your profession and on your length of being their customer. Always check with insurance companies whether you are eligible to get any of such benefits to save premium.

Car Insurance - Car Insurance For Used Cars In India

In India, the used car market is growing considerably. More and more people are seeing sense in getting a second-hand car rather than buying a completely new car. One of the biggest reasons for this change in mindset is that the value of a new car depreciates by 20% after one or two years. Is it then worth paying all that money for? Second-hand cars are not bad, just negligibly older. You can get a used car through many businesses that cater only to these orders.

The process of buying and selling of used cars may seem scary to both buyers and sellers. The checklist below shall help out both to ensure that the transaction remains hassle-free.

Checklist for sellers of the used cars

If you are the seller of used cars, here’s what you need to do.

Insurance transfer: One of the first things you need to do is to transfer your car insurance policy over to the buyer. Since he’s buying the car, he needs to get its existing car insurance, right? If you have paid a premium for it, add it to the car’s selling price.

Remember to get the NCB Retention letter from the insurance company. This does not get transferred to the new owner, but gets transferred to your other vehicle if you have one, or is saved for two years till you get one. NCB is a reward in the form of premium discounts given for not raising claims for a certain amount of time.

If you don’t want the NCB and want to cancel it, send a written letter to your insurance company and get their confirmation. After this, you won’t be charged a premium for the car insurance after selling it. Documents you need to submit are Form 51, the original policy letter, and Application for NCB retention.

Car maintenance records: If you still have detailed records of your car’s maintenance and repairs, you can use these to get a better selling price.

Written sale contract: This transfers the legal ownership over. It includes the date of transferring, the car’s condition, the selling price, registration details, and insurance details.

Steps to take for buyer of used cars

If you are making the purchase, carefully sift through the various models and decide which is the most appropriate for you. Try not to go for sports cars and luxury cars if that does not help you. You need to pay for insurance and maintenance for the car you buy. Think about the long-term expenses. Here are the other things to see before buying.

The vehicle’s condition: The car needs to be in good condition. Take it for a test drive, which the seller won’t mind. Pay attention to the performance of its engine, cooling, transmission and wheels. Get a mechanic to check things over. Thus, you’ll get an idea of the car’s worth. After buying, get it checked again. It may happen that the parts were changed after your first assessment.

Registration details: Get all the ownership documents from the car’s seller. Also find out whether the person is indeed the owner or not. Ask for road tax receipt, and ensure the owner has paid all his dues. You also need to get the NOC from the car’s financing company.

Insurance details: Check out the IDF or Insured Declared Value of the car which is stated in the policy documents. This is an essential step as it gives you the car’s value you’ll get from the insurance company in case of damages and total loss claims. Keep track of NCB earned over the years for the past 3 years. Thus, you’ll know if the car was involved in accidents or needed repairs.

Check or auto part modifications: If the car is a used one, you can get it upgraded or changed according to your comfort, safety and value. Check the car carefully. Is it suited to getting upgrades?

You can get the seller’s auto insurance policy made in your name. Otherwise, you can get your own car insurance policy within 14 days for buying the car.

Car Insurance - Car Insurance Terms You Should Know

The Motor Insurance of India makes it absolutely necessary to have at least a basic car insurance policy if you want to drive on Indian roads. Without this, you won’t be allowed. Doing so is punishable under law. Thus, it is important to get car insurance, which ultimately is for your benefit.

When trying to buy car insurance, new customers often have the problem of not understanding the technical jargon of the industry. Thus, they have trouble understanding the insurance plans as well.

In this article, mymoneykarma explains some of the most common terms of the car insurance industry.

Third-party liability cover: Third-party liability cover is the type of car insurance which compensates a third party when you were involved in an accident resulting in injury, death or property damage of the other party. While the insurance cover for cases of death and injuries is unlimited, it is worth remembering that there is a cap of Rs. 7.5 lakhs against third-party’s damages. Third-party liability cover is the minimum level of car insurance you need to operate on Indian roads.

Own Damage Cover: This is the part of the larger motor insurance policy. It covers and protects your car from various forms of damages like theft, fire, accidents, man-made disasters, natural calamities, etc. However, it won’t pay for third-party death, injuries and property damages.

Legal liability: When the car you’ve insured had got involved in an accident, and when a third party has suffered damage, you’ll have to pay for the said damage. However, if your car has a car insurance policy, its third-party liability cover shall take care of the problem. Under this, the victim will be compensated.

Comprehensive policy: This type of car insurance policy protects both you and your vehicle in case of various accidents. It covers man-made damages, natural calamities, external accidents, terrorist acts, malicious activities, in-transit damages, landslides and rockslides, liabilities to a third-party, explosion, lightning, fire, explosion and self-ignition.

Anti-theft device: These are devices installed in your car which reduce the chances of your car getting stolen. If you have already installed it, you can get car insurance at lower premiums since such cars are seen as safer. Common anti-theft items include car alarm, steering wheel lock, vehicle tracking system, electronic immobilizer and tire lock.

IDF: Insured Declared Value of a car is the sum insured under its motor insurance. This amount is equal to the manufacturer’s selling price minus the depreciated amount. The listed price is always agreed upon during the time of signing up for the policy.

Voluntary deductibles: During the time of buying a car insurance policy, you have two choices. You can choose to bear either all or part of the claim payouts. The amount you agree then to pay is termed as Voluntary Deductibles. Getting a high voluntary deductible gives you a big discount in premiums.

Compulsory deductibles: This is the section of your car insurance claim amount that is to be paid mandatorily. The amount depends on the car’s cubic capacity. Such deductibles are used by all car insurance companies to check car owners from raising claims too frequently, especially for small damages. Unlike voluntary deductibles, compulsory deductible amounts are smaller and cars can be paid back easily during filing or claims.

NCB: Its full form is No Claim Bonus, and is offered to car insurance policy holders at the time of renewing the policy. Each year, you get more NCBs if you don’t file for claims. In the 1st year of policy renewal you get a 20% discount from premiums, 25% discount after 2 claim-free years, 35% discount from premiums after 3 claim-free years, 45% discount from premiums after 4 claim-free years, and 50% after 5 claim-free years.

Cashless garage: Car insurance companies today have tie-ups with garages around India where their customers can get cashless transactions for damage repairs. These are network garages, so always pick a policyholder who has a reasonably big network of such garages. In case of damages, you can get your car repaired at such centers without hassles. At such times, the repairing bill is covered by your insurer. All you need to pay is the deductible and depreciation part on the car parts replaced.