Insurance guides

A short guide to each type of insurance: what it pays for, the points that most affect a claim, and the paperwork involved.

Health Insurance

Pays for hospitalisation and related medical costs for you and your family, up to the sum insured.

Waiting periods: Pre-existing conditions and some specific treatments are covered only after a waiting period. Ask how long it is for each member.
Room rent and sub-limits: Some plans cap room rent or specific treatments. A cap on room rent can reduce the whole claim proportionately.
Co-payment: Plans for older members may require you to pay a fixed share of every claim.
Hospital network: Cashless treatment is available only at the insurer's network hospitals. Check which ones are near you.

Pays a sum to your nominee if you die during the policy term, so your family's finances are protected.

How much cover: A common starting point is a cover that replaces several years of income and clears outstanding loans. Your advisor can work it out with you.
Policy term: Cover should usually last until your dependants are financially independent or your loans are repaid.
Full disclosure: Declare health conditions, smoking and existing policies accurately. Non-disclosure is the most common reason claims are disputed.
Nominee: Name a nominee and keep the details up to date after marriage or the birth of a child.

Covers your liability to others and, with a comprehensive policy, damage to or theft of your own vehicle.

Insured declared value (IDV): IDV is the most you are paid if the vehicle is stolen or written off. A lower IDV reduces the premium but also the payout.
No-claim bonus: A claim-free year earns a discount on the next own-damage premium. It moves with you when you change insurer.
Add-ons: Zero depreciation, engine protection and roadside assistance are bought separately. Choose the ones that match the vehicle's age and use.
Renew on time: A lapsed policy means driving uninsured, and a break of more than 90 days loses the no-claim bonus.

Covers medical emergencies and trip disruptions while you travel, mainly outside India.

Visa requirements: Some destinations, including Schengen countries, require travel medical insurance with a minimum cover to issue a visa.
Medical cover amount: Treatment costs vary widely by country. Cover that is adequate for South-East Asia may be too low for the USA or Canada.
Age and health: Premiums rise with age, and travellers above a certain age may need a medical declaration.
Trip dates: Cover must start on or before departure and run until you are back in India.

Protects a shop, office, factory or goods in transit against fire, theft, liability and similar losses.

Correct valuation: Insure buildings, machinery and stock at their full value. If you under-insure, claims are reduced in the same proportion.
What is excluded: Read the exclusions for your trade. Some risks, such as machinery breakdown, need a separate cover.
Business interruption: A fire can stop income for months. Loss-of-profit cover is bought in addition to property cover.
Records: Claims depend on stock registers and purchase invoices. Keep them up to date and backed up off-site.