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March 2019

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How to Maximize the Benefits of Health Insurance with a Top-Up Plan

There was a time when car drivers would dread punctured tyres. It was only in 1904 that Thomas Morris Davies of UK conceived the idea of adding an extra tyre. It can be used if any of the main tyres get damaged. Your health insurance top-up scheme plays a similar role. You can literally call them a Stepney to your existing health reimbursement policy. They come to your rescue when your original sum insured exceeds your hospital bill.

Does It Make Sense?

Let us take this example. Suppose you have health insurance with about Rs 5 lakh as the sum insured. It might be so that under some emergency circumstances, your health bill shoots to Rs 6 lakhs. Which means you would run short of Rs 1 lakh. You can make up for it without much hassle. You can either buy a separate policy or upgrade it to get covered. Your insurer can help you in this regard. However, it is going to cost you about Rs 6000, or even more. On the other hand, going for a health insurance top up would cost you just about Rs 2000 on a yearly basis. You can say that going for a top up is feasible when you wish to get higher coverage without paying excessively.

Making a Claim

Reliable insurers make it convenient for their clients while applying for top up. Almost all of them maintain an in-built team that settles claims quickly. On average, it takes about 90 minutes or so to settle cashless claims. For settling reimbursement claims, it might take about 15 days of receiving the claims. A number of service providers offer their SMS services to give periodic updates on claim settlement. Claiming for your reimbursement is very simple, as well. You can do it online through the company website, or physically submit the form to the nearest branch office of your service provider.

Partnering With Your Health Insurance Company

There are a number of perks of choosing your Health insurance plans with the premier service providers. For example, you get a cashless card as a member. If you pay the premium by cheque, then you can also get an 80D certificate. It would help you to save tax. Some companies offer floater benefits that allow covering your spouse and children under a single sum insured. If you have an existing mediclaim policy and feel that it is not good enough, then you might want to port it. Different insurance companies offer easy portability service.

What is more, many companies offer a free look period. What if you are availing the services of a company and wondering whether it works fine for you? Companies providing free look facility allows you to cancel the policy within a stipulated date after purchasing it. However, no matter the insurer that you go for, make sure that you read their company policies well in advance even before signing up.  

What is third party car insurance?

What is third party car insurance?

While purchasing a car insurance, you need to consider several factors. The type of coverage you seek is one of most important aspects you must look out for. Well, you must have heard of third-party car insurance. This is different from a comprehensive policy, and offers different benefits altogether. Here, you will come across all you should be knowing about third party car insurance policies.

When you buy a third-party car insurance plan, you get a coverage against legal liabilities that arise as a result of injuries caused to a third party. In these situations, the fault lies with the policyholder. The damages and injuries that are caused by your vehicles are covered, that are caused to any third-party person or property. According to the Motor Vehicles Act, 1988, it is compulsory for all the motor vehicle owners to get a third-party insurance when they buy a vehicle in India. Therefore, when you buy a car policy, make sure that it comes with a third-party coverage.

Benefits of having a third-party coverage

With a third-party coverage, the owners of the vehicle remain insured against any legal liability arising due to accidents. These liabilities include bodily injury or death of another person, when the insured vehicle is involved in an accident. The Motor Vehicle Act states that one can file a third-party claim under the ‘no fault liability claims’ category. However, you should be aware of the exclusions of these policies.

 The policy will not be covering any damage that has been caused to the automobile. Besides, it will not cover the damage to any of the belongings of the third party that may be inside the vehicle. You too, will not get any coverage if your vehicle is damaged or stolen. This applies to all your belongings inside the car as well.

Difference between comprehensive coverage and third-party coverage

Several aspects determine the pros and cons of these two kinds of policies. Evidently, you need to understand these aspects, so that it becomes easier to analyze, compare and evaluate the benefits before you make a decision. These factors include:

The value of your vehicle

 In case you are owning a low-value vehicle, it is recommended to buy a third-party insurance. This indicates that you can easily manage the repairs required as a result of any possible damage. Comparing the costs, it appears that you will find it economical to pay the bills for repairing the vehicle, than to pay the high premium associated with a comprehensive coverage. However, if you have bought an expensive car, or if it is a brand-new vehicle, you should get a comprehensive coverage.

Coverage

When you buy a third-party coverage, you will get protection against the damage caused to any other vehicle. Besides, it includes bodily injuries that may be caused during the accident to a third party. With certain insurance providers, you may have to pay a little more premium for third-party coverage. However, it will not provide coverage for the damages that your own car might suffer.

When you buy car insurance online, you might want to buy a comprehensive car insurance plan. These plans offer a wider coverage and include the third-party liabilities too. As the coverage is broader, comprehensive policies are more expensive.