General Insurance Queries - Business Standard
27 October, 2010I have taken individual health insurance covers for my wife, my son and I. Last year, my wife was hospitalised twice, and we could not get the second claim, as the cover was already used. I have read about family-floater schemes. How do these work and are these better than individual plans?
In family-floater policies, a single sum insured is choÂsen, which can be availed by all the family members covÂered under the plan. For inÂstance, let's compare two families of four, one having individual health plans of Rs 1 lakh each and another covÂered by a family-floater polÂicy of Rs 4 lakh. Even in case of a claim of Rs 1.5 lakh for any family member, individual health plan will restrict the claim to Rs 1 lakh only. On the contrary, a family-floater polÂicy will settle the entire claim with the balance of Rs 2.5 lakh being available for the un-expired period for all family members, including the perÂson who made the claim.
A family-floater policy is beneficial for families who wish to cover all the memÂbers. Ensure that the sum inÂsured is optimum and based on your family's lifestyle. However, it does not cover dependent parents.
If I have two insurance policies on the same asset will I get claims under both of the policies in case of loss?
Insurance is a contract of inÂdemnity, which implies a policyholder does not make any profit out of the policy covÂering his assets. It is only to compensate the extent of loss one suffers. In the event of a loss, in the mentioned case, both the policies will contribute in proportion to their respective sum insured
The writer is the MD, Royal Sundaram Alliance Insurance Company. Send
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