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| 24 Mar - 10:00hrs

Know more about best insurance policies

 

Yashish Dahiya | CEO & Co-Founder, Policybazaar.com

guest: People putting money in insurance...is that money invested or traded in stock markets?
Yashish Dahiya: Depends on what type of insurance you have purchased. Money is generally invested in funds and these are declared in the investor’s portfolio shared by the company. These funds could invest in equity and debt instruments, government schemes, Money markets etc. For guaranteed products, the company bears the risk of such investments. For Unit linked, the risk is borne by the policy holder.
guest: I am planning to Buy insurance for My daughter but confused between LIC and Sukanya policy. Can you please suggest.
Yashish Dahiya: I believe you are talking about the new scheme launched by Modi’s government. Sukanya policy launched by LIC earlier has been withdrawn. In the scheme launched, the Interest rate is not fixed and Government will declare on yearly basis the Interest on accounts opened under these rules. For the Financial Year 2014-15 Govt. has declared Interest Rate of 9.10%. While this is a good scheme to invest and has rules which will safeguard the investment, you should definitely divide your investment amount into few market linked instruments. This will ensure safety even if the scheme is no longer a priority or there is a change in government and the interest rates dips significantly. You may invest in policies like HDFC young star super premium or similar ones which offer waiver of premium if the parent meets unfortunate emergencies.
guest: Can I renew an expired Bike insurance policy?
Yashish Dahiya: Yes! On policybazaar.com, you can renew your expired two wheeler insurance online- Without Inspection and Without documentation! Your policy will be issued instantly and emailed to you on your email ID. There are no extra charges that need to be paid, and no hassles of getting vehicle inspected to renew your two wheeler insurance.
guest: Why not insurance is given on natural calamities disasters to some extent?
Yashish Dahiya: Oh My God! That explains the situation beautifully. While many of the cases are covered now, natural calamities disrupts the basic concept of insurance which is dividing the pool. Insurance works on collecting money from masses and securing cases of unfortunate extremities. In normal scenarios, this is on probability factors. Actuarial studies define what percentage will face such difficulties. Natural disasters change this scenario. In such cases, insurers take support of reinsurers. In most of the cases, these are covered to some extent.
guest: What is the difference between revocable beneficiary and irrevocable beneficiary?
Yashish Dahiya: While purchasing policy, beneficiaries are selected so that the benefits are transferred directly to the ones intended and no one else can claim the same. Nominee has to take care of all those who might be dependent on the insured..whereas beneficiary do not. In case of revocable beneficiary, the policyholder can change the beneficiary while he/she is alive. The benefits can thus be transferred to the other person in relation with proper justification. In case of irrevocable beneficiary, the same is not possible. So if your wife is one of those and you get divorced, she will still be entitled to all the benefits of the policy and the payouts.
guest: Will renewing an expired car insurance be considerably more expensive than renewing before expiry?
Yashish Dahiya: It depends upon insurer to insurer. Generally insurer companies do not apply any loading if the policy has expired within 90 days. However, beyond 90 days, the NCB of customer is lost which increases the premium. Also, all expiry cases requires a mandatory inspection of vehicle which may or may not be borne by customer.
guest: What do you mean by Loss Payee in insurance?
Yashish Dahiya: Simple definition says – the one who is being paid in case of a loss. So if it is a motor insurance and there has been an accident, who is being paid for that? It will either be the insured or in case of death of the insured, the nominee. The party who is entitled for reimbursement from the insurer is loss payee.
guest: i m 40 yrs old i want to buy oriental mediclaim 5lakhs .i have 2 daughters10yrs 8yrs
Yashish Dahiya: Oriental is a good option but if you’re considering a sum insured of 5 Lacs (which is for the Silver plan) and that plan has inbuilt capping on room rent limit and also doesn’t cover OPD, has a bare bone no claim bonus. In the same premium range, you should be considering a few private players like – Apollo Munich Optima Restore which doubles your sum insured if there are no claims in 2 years. It also, doesn’t have any room rent capping which helps you in getting the treatments at the best of places without worrying about out of pocket expenses.
ramasubramaniam: Which is the best health insurance policy?
Yashish Dahiya: While considering a health policy, there are a lot of factors which need to be pondered upon – a few of them are – room rent limits (no sub-limits is great), maternity coverage, no claim bonus (it varies from 5% to 100%), restoration (in case you exhaust your sum insured in a policy year, the entire sum insured is restored without any additional premium). Post evaluating your need set of features you would like to have in your policy cover, then you should consider the sum insured (higher is better, considering the inflation index in medical side). This would help you in landing the best possible health insurance plan.
guest: Hello Sir, My Name is Gopi. I am from Chennai. I have a ULIP - HDFC Endowment Supreme. I have paid 5 installments of Rs. 50,000. This has a life cover of 20 lakhs. 6th premium is due next month. The current fund value is 2,52,500/-. Can you let me know if it is good idea to continue this fund or exit from this fund???
Yashish Dahiya: Continue investing but use switching options. Currently HDFC funds are doing well and you have already completed a stage where in major deductions in terms of charges has happened. Though you have not mentioned if your payment frequency was annual or half yearly, if it has been 2.5 years…you will see a very good growth after 3-4 years. In parallel, if you are planning to invest more, go for lower cost ULIPS which will start giving you good returns even in initial few years of the policy.