Personal Accident –
Personal accident policy covers:
If a person dies due to an accident the risk is covered under the personal accident policy. His legal heirs are entitled to get the sum insured.
Disability can be classified further as follows:
- Permanent Total Disability (PTD)
- Permanent Partial Disability (PPD)
- Temporary Total Disability (TTD)
Permanent Total Disability:
As the name indicates the disablement is of permanent and irrecoverable nature and is total and the insured is unable to engage in the gainful employment. Under this disability the compensation is equal to the sum insured.
Example of PTD:
- Loss of sight of both eyes
- Loss by physical separation of two entire hands or entire feet
- Loss of one hand and one foot
- Person in comma for longer period will also be treated as PTD
Permanent Partial Disability:
The disability is not total but partial. e.g. Loss of toe or a finger. The compensation will be based on the percentage of the disability and it will be defined in the policy and if it not defined then as per doctor certificate the compensation is paid.
Temporary total disablement:
As the name implies this is a disablement which is total but for a temporary period only. The temporary may be days, weeks, months or even years. The payment is on weekly basis.
Education amount for children:
Incase of death or permanent disablement of the insured person the insurance company also pays the education for two children if the age is below 25 years of those children.
Household Insurance Policy –
The most popular domestic insurance cover available in the Indian market is the Householders’ Insurance policy.
To an average Indian, home is a cherished and precious possession, not just in terms of money, but also in terms of the sentiments attached to it. Any loss or damage to the house or household goods would cause not only financial strain but also sentimental setback. Household insurance helps to mitigate, at least the financial losses, arising out of risks like fire, theft, natural disasters, breakdown of household appliances, personal liabilities.
**The risks covered under each section are:
- Household contents & building (cover for fire and allied perils)
- Household contents (cover for burglary, housebreaking and theft)
- Jewelry and valuables
- Plate glass
- Breakdown of domestic appliances
- Pedal Cycle
- Personal accident
Third party legal liability & workmen’s compensation.
Motor Insurance –
All of us are aware that motor insurance policies are mandatory in India. No car can be driven without insurance.
Motor insurance means insuring the financial risk involved while owning/operating the car. The car might meet with any damages, accident or may be lost or stolen. In such a situation the losses borne by the owner may be compensated by the insurance company if the same is covered under motor insurance policy.
Under the provisions of Motor Vehicles Act, all the vehicles operating in public places should have car insurance policy at least to cover ‘Third Party Liability’. It means that a Motor insurance policy must cover third party in case of any accident. It may or may not cover the damages of the owner of the car!
Now, there are two basic types of motor insurance policies:
- Third party liability coverage.
- Comprehensive plan.
Third Party Liability’:
Under ‘Third Party Liabilitycoverage’, only damages of third party are covered in an accident in a public place for which the owner is liable and not the owner’s damage.
Under ‘comprehensive plan’, owner’s damages are also covered along with ‘third party liability coverage’.
Important Point to Remember:
A policy is valid from the moment a premium is required – from midnight till exactly a year later.
It is advisable to get a policy renewed well in advance, as there is no grace period whatsoever and the fine for driving without an insurance is severe.
The policy is deemed to be renewed from the day that the cheque for the premium is posted by the bank. It is therefore advisable to get a receipt for the same from the bank.
A person purchasing a new vehicle should inform the insurance company within 14 days to have papers transferred to his name. When a vehicle is sold, the previous owner should inform the insurance company of its sale too.
A vehicle owner is eligible for no-claim bonus if adjusted against the premium of his new vehicle, even if the past vehicle is sold, the new vehicle is assumed to be purchased within a period of three years.