What to consider before buying insurance for e-two-wheelers?

—Name withheld on request

Both the process and ticking the boxes for e-two-wheeler insurance are the same as buying petrol two-wheelers. If you buy a vehicle for the first time, you need to ensure the third-party liability insurance is purchased for a period of 5 years. Besides, you should consider buying the following add-ons: zero depreciation cover, and return to invoice cover. Some insurers offer coverage for battery protection, which covers claims for water ingress to battery. You should opt for this add-on, if offered. Some insurers are more competitive in offering insurance for electric vehicles. So, you must make a thorough comparison before shortlisting an insurer.

I have a health insurance policy from HDFC Ergo. I was diagnosed with osteonecrosis of the right hip last year for which I had a core decompression surgery. I want to know if this information must be disclosed at time of renewal. If yes, then how should I do it and what changes it may have in my renewal premium?

—Kumar Saurabh

In the given case, since you are already insured, no further disclosures are required to the insurer. If you had filed a claim then the insurer will have the medical details, but even if you did not file a claim, you are not required to inform the insurer.

Note, any change in medical condition of the policyholder does not impact renewal premiums. By law, insurers cannot apply a claim-based loading on renewal premium for an individual policyholder. If premiums are changed then they have to be changed for all people in an age group and cannot isolate you alone. Premium for the same age may vary but only if it is proposed and accepted by a policyholder before issuing an insurance. After the initial policy issuance, insurer is not allowed to apply additional loading and must charge a uniform rate for a group. However, if you miss a renewal, the insurer can change the terms of the policy , including premiums, for you. So, in your case, timely renewal is essential.

What is ‘premium smoothing’ in insurance parlance, and how does it help?

—Name withheld on request

Premium calculation for any risk considers several factors like past losses, out of the pocket expenses, etc. Insurers want steady premium with few changes, and amortize the cost impact of all factors over many years. It helps avoid a steep rise in premiums for policyholders, making it affordable. The cost impact is passed to policyholders in a gradual way.

Abhishek Bondia is principal officer and managing director, SecureNow.in.

Updated: 08 Jun 2023, 10:38 PM IST