I am employed and covered by my employer’s group health insurance ₹4 lakh, which includes my parents. I want to buy a top-up option with this health insurer, but I am not sure whether I should go for the top-up option or buy a separate health insurance. I am 29 years old and I plan to get married within the next one year. Given this situation, is buying a separate health insurance a good option? If yes, which insurance policy should I take out of the two options: ICICI Lombard or HDFC ERGO?
—Vikas Bakshi
It is generally a good practice to maintain independent coverage separate from the employer’s health insurance plan. Such plans give you the option to maintain uninterrupted coverage in case of change of job or change in company policies. In addition, it allows a plan to meet the waiting period when you join the employer plan, and serves as a second line of defense for your employer’s coverage. This is especially true of your parents’ coverage.
Top-up plans can be a good way for you to optimize the cost of additional health insurance for yourself. However, you must purchase it independently from your employer.
A top-up plan will have a deductible, which must be borne by your other plan or directly by you.
The cost of a top-up plan is much lower than that of a traditional health insurance plan. Some top-up plans also provide the facility to convert to a regular plan at a later date.
To choose a health insurance plan, you should prefer plans with no co-pays or policy limits such as room rent or illness capping.
Also, consider insurers with high claim settlement ratios. Lastly, shortlist plans that offer high no-claim bonus.
I have a personal accident policy with sum insured ₹50 lakhs. Can I go for another policy with the sum insured? ₹1 crore? Can my nominee claim death benefit from both? Also, can I claim total/partial permanent disability benefit from both?
—Name withheld on request
Personal accident death and disability policies are fixed benefit policies. Most general insurance policies work on an indemnity basis, wherein expenses incurred by the policyholder are reimbursed. To avoid profiteering from insurance, the same claim cannot be made from two different insurance companies.
Since fixed benefit policies are not meant to reimburse expenses, benefits can be claimed from multiple insurance companies. So, you can buy an additional personal accident policy. In case of a claim – either disability or death – all active policies will pay the benefit amount.
Abhishek Bondia is the Chief Officer and Managing Director of SecureNow.in.
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