Health Insurance (2)
While you will surely compare premiums associated with various products that you compare, make sure you consider some of these features as well:
o Cashless hospitalisation: a facility in which a person can get the required treatment while the medical expenses are settled by the insurance company directly with the hospital if the hospital comes under its network. You may, therefore, also want to compare the associated network of hospitals of each insurer.
o No Claim Bonus or Discount: Some products carry incentives for ‘claim free’ years and offer either an increased Sum Assured for no extra cost or a reduced premium for your Sum Assured
o Exclusions: Do carefully review the exclusion list of each product. Needless to say, for the same amount of cost you would want to go for the product that has the least number of exclusions. Alternately, you may want to be covered for a specific medical condition which may actually be excluded in a given product.
o Maximum age of Renewal: This is the age to which the company would continue to provide you with health insurance on payment of premiums. You may want to go for a product with a higher maximum age of renewal.
Other benefits: You may also want to compare certain other benefits such as Ambulance charges, coverage for day care procedures (for which hospitalization is not required) etc.
Motor Insurance (2)
Are there any ways through which I can lower my premium amount, i.e. get some discounts on my car insurance premium?
Insurance companies have various clauses under which one can avail of premium discounts:
a. ‘No Claims’ discount/Bonus – if you haven’t claimed in a given year, you get the benefit of no claims discount in the form of a specific percentage reduction in your premium in the subsequent year. No claim bonuses increase with each claim free year and typically start with 20% and goes upto a maximum of 50%.
b. Voluntary Deductible discount – the insurer offers you a discount on your vehicle premium if you bear a certain amount of loss associated with each claim. Voluntary deductible is the amount that you agree to pay yourself towards a claim before the insurance company picks up the balance. The higher the voluntary deductible that you agree for, the lower your premiums.
c. Membership discount – If you are a member of a recognized Automobile Associations in India you are eligible to get a discount on your car insurance premium.
d. Anti-theft devices – If you have installed Anti-theft devices in your vehicle approved by ARAI (Automotive Research Association of India), you are eligible to get a discount of up to Rs. 500 on your premium.
e. Discount For physically challenged persons – a discount of as high as 50% is available on the Own Damage premium for physically challenged persons provided that the vehicle has been modified for use. The discount is also available for institutions exclusively engaged in the service of these people.
Vintage Cars – one can also get a discount if his/her car comes under the category of Vintage cars.
If you have made no claims in a particular year, the insurance company gives a discount in the premium for your car insurance in the subsequent year. This discount in premium is termed as No Claims Bonus. It can be viewed as an incentive provided for safe driving with the Insurers rewarding policyholders by providing a discount on the ‘Own Damage’ part of the premium. This discount increases with the number of no-claim years starting from 20% and going up to a maximum of 50%. No claim bonuses are transferable from one insurer to the other i.e. even if you switch your car insurance policy to a new insurer in a given year, you can be eligible for a No Claim bonus for any claim free years with your previous insurer.