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Insurance

Top 3 Cycle Insurance Policies in India

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Top 3 Cycle Insurance Policies in India

It may have seemed unlikely to some that insurance companies provide protection and coverage to cycle owners, but that is quite true. Reputable insurance companies have specially curated insurance plans that cater to cycle owners.

With cycle prices rising, getting an insurance policy for your cycle has never been more important. In fact, some of the prices of high-end cycles would quite frankly shock you. The Propel Advanced Pro 1 Cycle currently retails in India for a whopping ₹459999. The Colnago C64 Cycle takes it even further, by currently retailing for a jaw-dropping ₹796000.

If you’re planning to buy a cycle with a price tag that’s even remotely close to them then you definitely need to insure it. Let’s read about the top 3 cycle insurance policies in India.

Top 3 Cycle Insurance Policies in India

Bajaj Finserv Cycle Insurance

Bajaj Finserv provides a reasonable coverage that starts from 20,000 all the way up to 2,00,000. This quantum of coverage is generally enough for most cyclists. The plan provides protection against theft, natural calamities, and injury to self.

Inclusions

Exclusions

Theft and robbery

Tire wear and tear

Floods, earthquakes,

Wilful negligence

Damage to the rider

General wear and tear of the cycle

Damages caused to third-parties

 

Note: Inclusions mean that the insurance company will provide coverage for that particular event. Exclusions mean that the insurance company will not provide coverage for the event.

HDFC ERGO Cycle Insurance

HDFC ERGO is one of the premier insurance companies in the country, and that is for a reason. They provide an extensive range of insurance products from home insurance to cycle insurance. Let us look at some of the inclusions and exclusions of HDFC ERGO Cycle Insurance.

Inclusions

Exclusions

Burglary and robberies

Tire wear and tear

Fire

Willful negligence

Accidental damage

General wear and tear of the cycle

Damages caused to third-parties

Damages caused while intoxicated

 

Electrical damage

 

Mechanical damage

Cycle Insurance by Toffee (Insured by Chola)

Chola MS provides cycle insurance through the micro insurance platform Toffee. Mentioned within are the inclusions and exclusions of Chola Cycle Insurance. One important benefit that Chola provides is that they provide cashless coverage at authorized service centers.

Inclusions

Exclusions

Theft

Tire wear and tear

Natural calamities like fire and floods

Willful negligence

Accidental damage

General wear and tear of the cycle

Damages caused to third-parties

Damages caused while intoxicated

Lastly, you must ask the insurance company about depreciation. Insurance companies will usually depreciate your cycle thereby decreasing the cover amount. Be cognizant of this. You can also ask for a zero-depreciation rider to avoid this.

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Health Insurance

Does Health Insurance Cover Laser Hair Removal?

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Does Health Insurance Cover Laser Hair Removal?

No, your health insurance policy will not provide coverage against any type of laser hair removal treatments, be it hair removal on the face, torso, back, body, or head. There is no provision for insurance companies to provide coverage to policyholders for such treatments.

Why don’t health insurance companies cover laser hair removal?

  • The rationale behind this lack of coverage is rather straight-forward. Insurance companies do not consider laser hair removal treatment of any kind to be necessary or critical in nature. It does not come within the classification of necessary lifesaving or life prolonging medical procedures.
  • Insurance companies also do not provide coverage for laser hair treatment because if they start providing coverage for it, many policyholders will opt for such treatments. Doing so will tremendously increase the expenses of the insurance company to the tune of hundreds of crores in claim payments.
  • This increase in the expenses of insurance companies will have a trickle down impact on all of the policyholders of that particular insurance company. Since the insurance company will need to service this influx of new claims (related to laser hair removal.), the insurance company will be forced to increase the rate of premium of both existing as well as new policyholders.
  • This will lead to a chain-reaction where the premium rate of all policyholders across all insurance companies in the country will increase. It would not be a favorable situation towards the insurance companies as well as the policyholders.
  • Further, it would lead to less insurance adoption, thereby decreasing the total penetration of insurance in India, which would lead to more people being left out of the safe umbrella of health insurance.

These are some of the pertinent reasons why health insurance companies do not extend insurance coverage to laser hair removal procedures. Along with laser hair removal, insurance companies also do not provide coverage to related procedures like hair transplant surgeries.

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Health Insurance

Does health insurance cover for hair transplant?

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Does Health Insurance Cover for Hair Transplant?

A prospective health insurance policy buyer with a receding hairline may have this question. And it is quite a natural question to have. Well, let us get to the meat and bones and give you the answer to your question. No. Your health insurance plan will not cover for a hair transplant treatment.

The reason behind this is rather straight-forward. A hair transplant is not considered as a necessary medical procedure. A hair transplant comes under the category of cosmetic surgery and is out of the scope of coverage.

A hair transplant procedure is classified into the category of non-necessary cosmetic surgery like:

  • Botox implants
  • Body fillers
  • Rhinoplasty
  • Body-shaping and sculpting surgery
  • Skin whitening surgery (face as well as full body)
  • Sex organ change surgery
  • Dental treatments (non-necessary cosmetic treatment)
  • Buccal fat removal
  • Face lift surgery
  • Breast implants

As you can see, the classification of hair transplant procedures into this category of non-essential medical treatments is enough for health insurance companies to raise their hands and flat out decline any coverage to the policyholder for hair transplant treatment.

Male as well as female alopecia is a condition that causes great mental and emotional turmoil in the life of a person and such situations should be handled with care and compassion.Understanding and compassion is quite important during this stage.

Perhaps in the future, insurance companies will realize the distress that people go through due to alopecia and may consider classifying it as a disorder that is deserving of health care coverage.

This may increase the price of premiums as many policyholders will make claims for alopecia. However, that is a discussion for another time.

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Life Insurance

Is Term Insurance Mandatory for Home Loan?

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Is Term Insurance Mandatory for Home Loan?

No, neither term insurance nor home insurance is mandatory while availing a home loan. That being said, it is a wise and prudent choice to buy both term as well as home insurance. We will point out the reasons for the same shortly.

When a person approaches a bank to get a home loan, the bank will generally advise him to buy a home insurance plan before disbursing the loan to the loan applicant. This is generally done to safeguard the interests of the bank as well as the loanee. It must however be mentioned that there is no government regulation to support this.

As per Indian Law, a loanee can avail a bank loan without buying home insurance for that home. However, since banks have the prerogative to approve or reject a loan, they use their position of power to persuade the loanee to buy home insurance. In such a position, you can mention this to the bank manager and request him to approve the loan without buying a home insurance policy. It must however be said that buying home insurance is in the interest of both the home buyer and the bank, and should be purchased without hesitation.

Lastly, a bank will not be concerned if the loanee has a term insurance plan or no before disbursing the home loan as they will collateralize the loan for their protection. Thus it is not mandatory to buy term insurance before buying a home loan. That being said, it is a highly advisable for the loanee to buy a term insurance plan before taking the home loan. Let us investigate the rational for the same below.

Top 2 Reasons to buy term insurance before taking a home loan

  1. Safety of your family: Imagine someone taking a massive loan to buy a home and then passing away. The entire brunt of that loan will come solely on the family. There will be tremendous plight of the family during such an event. They will have to deal with the death of their loved one and at the same time joist with the pressure of repaying the home loan. Such a situation can easily be avoided if the home buyer takes a term insurance plan. The family can use the sum assured to pay the bank loan amount.
  2. Peace of mind: The policyholder can be at ease, knowing that his family is protected in the event of his unfortunate death. Nothing can eliminate the dread of his family at such a time, but the load will be slightly less to bear for the family, and the policyholder can sleep better at night knowing his family is protected.

How much coverage should you opt for?

This is another important question. What is the term insurance coverage that you should opt for if you are looking to take a loan to buy your home? Well, the answer is rather straight forward. The loanee should take a term plan that will at least cover the entire loan amount (interest and principle both.)

Further, it is advisable that the loanee also factors in the other expenses of the family like education costs, marriage costs, medical costs, daily expenses, etc before deciding on the term insurance coverage.

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Health Insurance

Health Insurance Vs Accident Insurance (Know the Difference)

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Health Insurance Vs Accident Insurance (Know the Difference)

The difference between health insurance and accident insurance is rather straight forward. A health insurance policy will ensure that the policyholder is covered and protected in the event of a hospitalization. This hospitalization may be caused due to a variety of reasons like critical illness, non-critical illness, accidents, etc. The health insurance company is obligated to provide coverage in such cases.

An Accident insurance policy will only kick-in if the policyholder has met with an accident and requires medical treatment for the same. The accident insurance policy will not provide coverage if the policyholder is hospitalized for any other reason apart from an accident.

Examples of health insurance and accident insurance

Let us understand this with the help of three simple examples.

Example 1: Let us assume that Mrs. Jyoti bought an accident insurance policy for herself. A few months after this, she was diagnosed with diabetes and required treatment for the same. In this case, the insurance company will not initiate a claim as the diabetes didn’t occur due to an accident.

Example 2: Similarly, let us assume that Mrs. Navika bought a comprehensive health insurance plan with accidental insurance coverage. A few months later, she met with an accident and had to be hospitalized. Since she bought a comprehensive health insurance plan, the insurance company is obligated to protect her by disbursing her claim amount.

Example 3: Lastly, let us assume that Mrs. Nayonica bought an accident insurance policy and later met with an accident. In this case, the insurance company will issue the claim amount and protect the interest of the policyholder as she is covered against unforeseen accidents.

Difference between health insurance and accident insurance

Let us now understand some of the notable differences between health insurance and accident insurance.

 

Health Insurance

Accident Insurance

Coverage

Will provide coverage during general illness as well as accidental hospitalizations. However, the policyholder must ensure that an accidental insurance clause is mentioned in the policy bond. Generally, most comprehensive health insurance policies have an accident component within it.

An accidental insurance policy will only cover hospitalizations that have occurred due to accidents.

Waiting period

A health insurance plan generally has a waiting period component within it. For instance, some health insurance plans will only start coverage towards critical illnesses after a month of waiting period.

Generally, there is no waiting period in an accident insurance policy.

Add-ons or riders

Yes, you can buy add-ons or riders along with a health insurance plan

Yes, you can also buy add-ons or riders along with an accident insurance plan

Maternity benefits

Yes, health insurance plans may cover maternity, if the policy bond mentions it.

No, accident insurance does not have the scope to cover maternity benefits.

Tax benefits

Yes, under Section 80D of I.T Act

No.

Ideally, a person should be covered against general illnesses, critical illnesses, as well as accidents. All three bases should be covered, only then a policyholder is truly protected.

Frequently asked questions

  • Does a comprehensive health insurance plan cover accidents?

    Generally, yes, a comprehensive health insurance policy will have an accident component within it. If it does not, then the policyholder should buy an accidental rider and cover himself against accidents.

  • Are health insurance an accident insurance policies widely available?

    Yes, both types of policies are widely available and easily accessible. 

  • Which companies provide accident insurance in India?

    Most insurance companies that provide a general health insurance plan also provide accident insurance policies. 

  • Categories
    Health Insurance

    Is buying health insurance worth it?

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    Is buying health insurance worth it?

    In a single word “Yes.” Purchasing health insurance could be one of the most important decisions in your life and it is definitely worth it. Let us look at some of the most important reasons why you should definitely consider buying health insurance.

    Reasons why buying health insurance is worth it

    1. Fights medical inflation: Medical inflation is rampant in India, and having a health insurance plan in place will ensure that you are in a position to combat this rise in medical prices. In fact, as of 2021, India has the highest medical inflation rate in Asia, a back-breaking 14%, compared to the general rate of inflation of 5.1%. As you can see, medical inflation is increasing at almost three times the rate of general insurance. Buying a proper health insurance with adequate sum assured will help in combating this.
    1. Ensures high quality treatment: Sometimes life or death is decided based on the quality of medical care. The higher the quality of medical care, the lower are the chances of mortality. This is self-evident, but sometimes people are forced to compromise on the quality of medical care for financial reasons. In an ideal situation, this should not happen. Buying a health insurance policy with a healthy sum assured will ensure that the policyholder gets admitted to the best possible hospital, and avails the highest quality treatment. Money shouldn’t be an object and should not come in the middle of quality treatment.
    1. Day care treatment and OPD: A comprehensive health plan will not only cover hospitalizations but it will also cover day care treatments and OPD appointments. This coverage will ensure that the policyholder is protected even in the event that their condition is not serious, and doesn’t need admission.
    1. Provides tax benefits: The Government wants to encourage an environment where the people are protected against unwanted complications arising out of high medical expenses, that is the reason why they have incentivized people towards buying health insurance by providing tax breaks to policyholders. A policyholder can claim tax benefits under Section 80D under The Indian Income Tax Act.

    We hope this article highlighted some of the most important benefits of purchasing a health plan for yourself and your family, and aided in guiding you towards a safe, secure and financially sound future

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    Frequently asked questions

  • Is buying health insurance mandatory in India?

    No, buying health insurance is not mandatory in India. That being said, it is highly advisable.

  • Under which sections can a policyholder avail tax benefits?

    A policyholder can avail tax benefits under Section 80D

  • Which countries have the highest medical inflation in Asia?

    As of 2021, the countries having highest medical inflation in Asia were India (14%), followed by China (12%), then Indonesia (10%), and finally Vietnam (10%)

  • Categories
    Life Insurance

    Does Life Insurance Cover Medical Bills?

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    Does Life Insurance Cover Medical Bills?

    No, a life insurance policy will not cover medical bills of the policyholder.

    A life insurance policy will only issue a pay-out to the beneficiary of the policy in the event of the policyholder’s demise. If you wish that the medical treatment be covered of a policyholder, the policyholder will need to purchase a health insurance plan. There are also other notable differences between life and health insurance.

    The only way a life or term insurance plan can cover medical expenses is if the policyholder as opted for a disability or critical illness rider, where the insurance company is obligated to disburse the sum assured in the event that the policyholder is suffering from a disability or critical illness. In such a case, the policyholder can utilize the sum assured to pay for his medical bills. 

    Let us look at some of the reasons why a health insurance plan is necessary in today’s day and age, and look at some of the other features and benefits of health insurance apart from it covering the medical bills of the policyholder. 

    Should I Buy life insurance or Health Insurance?

    The correct answer to this is “Buy both.” Health insurance will ensure that you don’t have to worry about the medical costs and quality of treatment. It will ensure that you can afford the best and state of the art treatment if you have a sizeable health insurance policy. At times, this could actually be the difference between life and death. 

    Life insurance ensures that your family is taken care of and looked after you’re gone. All necessary expenses like your children’s education expenses, further studies, daily expenses, and all other expenses can be taken care of from the sum assured.

    Top 5 Benefits of a Health Insurance Plan

    1. It will cover medical bills and expenses: As mentioned before, a health insurance plan will provide coverage towards the medical expenses incurred to the policyholder. This is the fundamental feature and benefit of a health insurance policy. Ensure that you choose the correct cover amount of your health insurance policy so that you don’t need to worry about medical expenses and the quality of medical treatment.
    1. Outpatient coverage: A health insurance policy not only provides coverage if the policyholder is admitted to the hospital, it also provides coverage in the event that the policyholder has to utilize outpatient medical care like OPD appointments and day care treatments. Ensure that your policy has an outpatient coverage clause.
    1. Peace of mind: The policyholder and his/her family feel a peace of mind that they are coverage against medical expenses should such unforeseen difficulties arise. This peace of mind is important for the family’s progression and prosperity.
    1. Pre and post hospitalizations covered: A comprehensive health insurance policy will not only cover hospitalization expenses, but it will also extend its coverage to pre-hospitalization and post-hospitalization coverage. Make sure your plan has these benefits.
    1. Widely available: Good quality comprehensive health insurance plans are widely available in the Indian market. The IRDA ensures that the quality of health insurance plans due to the regulation it extends on the industry.

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    Frequently asked questions

  • Will my life insurance policy cover my medical expenses?

    No, a life insurance plan is only intended to disburse the sum assured to the benefactor of the policy after the death of the policyholder. A health insurance policy will on the other hand take care of medical expenses of the policyholder.

  • Is it a wise choice to buy both life and health insurance?

    Indeed, it is. Both life and health insurance serve different but very important purposes.

  • Who regulates the insurance market in India?

    The IRDA of India regulates the insurance market of India.

  • Categories
    Insurance

    5 celebrities that have insured their Body Parts for Millions

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    5 Celebrities that have insured their Body Parts for Millions (Infographic)

    Celebrities earn their living through the body of their work, and their body is rightly their temple. Keeping this spirit intact, there are many celebrities that have insured their body parts, and at times their entire body for millions of dollars.

    Let us go through the list of 5 Top Celebrities that have insured parts of their body for millions of dollars.

    From Bruce Springsteen’s vocal chords to Cristiano Ronaldo’s legendry goal scoring feet (insured for a whopping US$ 144 Million), find out the entire list through our funky little Infographic!

    Celebs who have insured their body for millions
    5 Celebs who have insured their body for millions

    Feel free to download this infographic and share it across your social media and websites.

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    Categories
    Life Insurance Corporation

    Life Insurance Corporation Act 1956 (Simply Explained)

    Life Insurance Corporation Act 1956 (Simply Explained)

    Life Insurance Corporation of India (LIC) was established after The Government of India passed the Life Insurance Corporation Act in 1956 in The Indian Parliament. The LIC Act 1956 elucidates the functions, management structure, auditing and accounting mechanisms of Life Insurance Corporation of India.

    Going through the whole act is beyond the scope of this article. This article will be discussing the top 10 most important aspects of The LIC Act 1956.

    Top 9 most important aspects of The LIC Act 1956 are the following:

    1. Functions of LIC
    2. Management structure of LIC
    3. Powers of LIC
    4. Guaranteed policies
    5. Tribunals
    6. Reporting to the Parliament
    7. Auditing
    8. Rule-making power of LIC
    9. Powers of regulation

    Functions of LIC

    Chapter 3 of The LIC Act states the functions of LIC. Let us go through the top 5 functions of LIC as mentioned in The LIC Act.

    1. Conducting life insurance business in and outside India efficiently and with a vision of growth.
    2. Investing the funds collected as premium appropriately and securely.
    3. Disbursing loans to policyholders against their LIC policy.
    4. LIC even has powers to disburse loans against property or other kinds of assets.
    5. LIC has the ability to conduct its business through subsidiaries in India as well as abroad.

    Management structure of LIC

    • Executive committee: The executive committee is constituted by 5 members, and the duties of the committee are specified by LIC.
    • Investment committee: The investment committee will advise LIC on the most apt investments keeping in mind the benefit of LIC and its policyholders.
    • Managing Directors: The Managing Directors shall work as the captain of the ship, steering LIC towards growth and prosperity.
    • Central Government of India: LIC will have to adhere to governance related decisions by the Central Government of India.
    • Zonal managers: Zonal managers will manage their specific zones and their responsibilities will not extend the said zones or jurisdiction.
    • General staff: General staff consists of officers, peons, general administration, and so on.

    Powers of LIC

    The powers of LIC are derived from the LIC Act 1956, passed in The Indian Parliament. Let us look at some of the most important powers of LIC.

    • LIC has the power to buy, sell, and lease properties in India.
    • LIC has the power to alter or modify the contents of its life insurance policies.
    • LIC has the power to conduct life insurance business in India and abroad.

    Guaranteed policies

    All LIC policies are guaranteed by The Central Government of India. Not only the sum assured, but any accumulated bonus is also assured by the Government.

    Tribunals

    LIC related disputes can be handled in tribunals. These tribunals have the power equivalent of a civil court. One of the members of the tribunal must include a practicing or past High Court Judge. These tribunals will act as courts, including accepting evidence, making judgements, summoning people, and issuing commissions.

    Reporting to the Parliament

    LIC must furnish important reports like audit reports, general reports, and growth reports to The Parliament of India from time to time.

    Auditing

    The books of LIC are audited from time to time, and auditors are mandated to furnish the auditing reports to The Government of India.

    Rule-making power

    The Central Government has the power to make or alter rules that ensure the smooth functioning of LIC. New rules can be laid down, and older rules can be altered by notification in the official gazette.

    Powers of regulation

    Over reaching regulatory powers can be exercised by LIC when it comes to recruitment, selection of agents, investments, formation of committees, and more.

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    Frequently asked questions

  • When was the LIC Act passed?

    The LIC Act was passed in 1956 by the Parliament of India.

  • How often does LIC have to report to The Central Government?

    LIC must disburse its annual report to the Central Government.

  • Who appoints the LIC auditors?

    Previously, The Government of India used to appoint the auditors, but now, post its IPO, the company shareholders have the power to appoint auditors.

  • Categories
    Insurance

    Can you insure your home appliances?

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    Can you insure your home appliances?

    Yes, you can insure your home’s appliances under a home insurance policy. Widely used appliances like air conditioners, refrigerator, televisions, dish washer, OTG, geyser, and more can be insured.

    Even lesser used home appliances like chimneys, printers, fax machine, etc can be covered under a home insurance policy.

    An appliance insurance coverage is usually bought along with a comprehensive home insurance policy. There are also some insurance providers that provide stand-alone appliance insurance policies as well. We will talk about both such companies below.

    Why should you opt to insure your home appliances?

    Your home is your sanctum, and any expense incurred in the safety and security of your home could be considered as money well spent. Here are the most important benefits of appliance insurance:

    • Peace of mind: Being insured gives you a tremendous peace of mind. The policyholder knows that he is covered in case an unfortunate situation arises like a theft or vandalism.
    • Continuity of lifestyle: Being insured will provided continuity of lifestyle to the policyholder. The policyholder can simply use the sum assured to re-buy the damaged or stolen appliances.
    • Expensive items: Some home appliances are very expensive, and having a coverage plan in place will save the home owner a healthy sum.

    Inclusions and exclusions

    Mentioned within are some of the general inclusions and exclusions of appliance insurance. The specific exclusions and inclusions will be different from company to company.

    Further, an insurance company provides different levels of coverage based on the kind of appliance insurance plan you opt for. The higher the premium you pay, the higher is the coverage.

    General inclusions and exclusions include:

    Inclusions

    Exclusions

    Fire damage

    Intentional damage

    Theft

    War

    Vandalism

    Radiation damage

    Electrical & mechanical break down

     

    Top 7 appliance insurance companies and plans

    Insurance Company

    Plan offered

    Royal Sundaram

    Royal Sundaram Home Insurance (Bronze, Silver & Gold Plans)

    Tata Capital

    Tata Capital Home Appliance Insurance

    OneAssist

    HomeAssist plan

    Bajaj Finserv

    Kitchen appliances insurance plan

    ICICI

    GadgetServ Plan (OneAssist)

    HDFC ERGO

    HDFC ERGO Refrigerator Insurance

    Reliance General Insurance

    Reliance Home Insurance

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    Frequently asked questions

  • Are stand-alone appliance insurance plans available?

    Yes. Mentioned below are some of the stand-alone appliance insurance plans in India:

    • OneAssist HomeAssist Plan
    • Bajaj Finserv Kitchen Appliances Plan
    • HDFC ERGO Refrigator insurance plan
  • How is the premium rate decided on appliance insurance?

    The premium rate is primarily decided on the location of the property, the valuation of the appliances, and the income of the policyholder.

  • Is it a good idea to get appliance insurance?

    It could be a good idea to get appliance insurance if the valuation of your appliances is rather large. It could also be a good idea to buy appliance insurance if you live in a place with questionable security.