In August 2003, I purchased a home jointly with my wife. However, I am the sole contributor to the amount paid for the flat. Additionally, I have taken a home insurance policy from Bajaj Allianz, where I am the proposer, providing coverage for the market value of the home in case of complete destruction due to a natural calamity. In the event of such a tragedy, will the insurance claim amount be paid entirely to me, the proposer, or will it be split equally between me and my wife?
—Name withheld on request
An important insurance principle is that only those that have an insurable interest in the property can be paid an insurance claim. So, the best way of demonstrating insurable interest is to be an owner of the property. Considering your presumed interest in the property is of only 50%, it is recommended that you get the name of your wife added to the policy as a co-insured. In situations like this when multiple parties can stake claim to the insurance payout, the insurer sometimes settles the claim in the name of the insured, if all other stakeholders provide a no-objection clearance certificate. As a good practice, the names of the insured should be the same as the names of the owners of the property.
I am 32-year-old IT professional, married and have a son. I am considering getting life insurance coverage and want to explore options that can potentially reduce the premium for the cover. Can the premium amount be decreased by selecting different modes of payment or adjusting the frequency at which I make the premium payments?
—Name withheld on request
You can opt to pay premiums in monthly, quarterly, semi-annual or annual mode. The cover remains the same irrespective of mode of payment. However, the premium cost does not reduce. Generally, insurers model premium for a product on annual mode of payment. Thereafter, the premium for other modes is calculated. Typically, there is a loading on the annual amount. So, a semi-annual premium would be higher than the pro-rated annual premium.
Abhishek Bondia is principal officer and MD, at SecureNow.in
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Updated: 31 Jul 2023, 09:56 PM IST