Insurance Uncovered

I have a family health policy, Health Wallet with SI ₹5 lakh. Earlier, you had advised me to take a super top up policy for ₹2 or ₹3 lakh, so that I get additional coverage for less premium. For two no-claim years, the SI in my health policy would double to ₹10 lakh. I understand that if a claim is made in a year, the NCB would reduce by the same amount. That is, by 50 per cent in a year. Is this right? Does NCB in health wallet increase by 50 per cent for every no-claim year (subject to maximum of 100 per cent of SI)? Is it a continuous process? If yes, is it still necessary to take a super top up policy? Kindly advice.

Regarding personal accident (PA) policy, I have two comprehensive vehicle insurance policies (for two cars), one from Royal Sundaram (PA sum assured ₹15 lakh), and an other from HDFC Ergo (PA sum assured ₹20 lakh). I also have a PA policy from SBI (premium ₹1,000, sum assured ₹20 lakh. Claim paid for death due to accident only). So, there are three policies. Is it right to take a separate PA policy with permanent/partial disability riders, plus other riders? Or, is the risk cover enough with the above three policies.

G. Surendra

In the Health Wallet policy from Apollo Munich, the SI increases by 50 per cent of the basic SI of the previous year when no claim is made under any benefit on the policy. You are right in understanding that the NCB (no claim bonus) benefit increases by 50 per cent in a no-claim year and will take your SI to ₹10 lakh after two continuous years of no-claim. A super top up policy was suggested to you earlier as you felt the need for a higher insurance coverage. The risk protection to be taken through a health insurance cover should be decided based on one’s personal and family medical history. So, please decide accordingly.

In case of accident insurance, it looks like you are covered sufficiently. While the vehicle insurance policies you have will take care of risk of death due to car accident, the PA policy from SBI should take care of risk of death on accidents, be they due to forces of nature or vehicle crashes. If you have not opted for disability riders on this policy, you can consider taking it.

A PA policy without covers for permanent total or partial disability, is not worth taking. This is because in the case of death, your life insurance policy will cover you. It is only in case of disability that you will need an insurance policy to step in and make good the loss of income which the PA policy should do. That said, if you do not already have a life insurance policy, please take one. While you may not get high value covers under PA policy, in life insurance, you will be covered even for multiple crores based on your income.

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