Frequently Asked Questions

Health insurance offers protection against an unforeseen situation such as medical emergencies. Many people are buying a health insurance policy to secure themselves against such expenses. A person can purchase health insurance by visiting our website.

All you have to do is tell us about your healthcare needs and we will offer you the right plan. You can throw in the add-ons you prefer, fine-tune the coverage and proceed to the payment once you are satisfied with the coverage. Once you pay the premium, the policy will be mailed to you and coverage of your medical insurance policy will commence instantly!

Your health insurance policy offers cover against medical expenses. If a person meets with a medical emergency, then they can file for a claim with health insurance. However, a policyholder will not get such benefits when the policy has expired. The person must pay the medical expenses out of their pocket. Therefore, it is extremely important that you remember the expiry date of your medical insurance policy and renew your plan on time to enjoy interrupted protection.

Under health insurance, the age and the amount of cover are two main factors that decide the premium. Usually, younger people are considered healthier and thus pay lower annual premiums. Older, people pay a higher health insurance premium as their risk of health problems or illness is higher. Similarly, smokers and those who consume alcohol have higher premiums. Even the nature of your job and where you stay can influence the premium of your medical insurance policy.

Yes, it is possible to have more than one health insurance plan. In the case of a medical emergency, you can choose which plan you want to use to cover your medical expenses. The advantage of buying two medical insurance plans is that, if the sum insured of one plan is exhausted, you can turn to the other to cover the remaining costs. You can also customize both plans in a way that they complement each other and provide you with wholesome coverage from medical emergencies. 

The term ‘best’ is highly subjective. A plan that suits one individual perfectly might not be an ideal match for the next. This is because we each have our own individual & unique healthcare needs. Therefore, we cannot adopt a ‘one size fits all’ approach toward medical insurance. Instead, you need to find a plan that covers your needs perfectly and also fits well within your budget.

Having said that, there are a few basic factors one should keep in mind when comparing health insurance plans. These factors include the claim settlement ratio of the insurance provider, the number of cashless hospitals covered under the plan, the choice of add-ons on offer, etc. A good plan will excel in all these areas whilst also providing you with coverage that’s a perfect match for your healthcare needs and your wallet.

After you make a claim, the sum insured of your health insurance policy is reduced by the amount that has been paid out to you as compensation. Confused? Let’s take an example for better understanding.

Say you buy a medical insurance plan with a sum insured of Rs. 10 lakhs on the 1st of January, 2019. In the month of March, you meet with an accident (hypothetically speaking) and make a claim worth Rs. 2 lakh against your mediclaim policy. Now, for the rest of the policy tenure (April-19 to Jan-20) you have a sum insured of Rs. 8 lakhs remaining in your health insurance policy. As such, you can keep making claim against your health insurance policy until the sum insured is exhausted.

However, if you have opted for the reinstatement option, the sum insured of your policy will be restored to its original value (Rs. 10 lakhs) after you make a claim. Of course, the reinstatement feature needs to be added to your policy by paying a pro-rata premium.

Health insurance is like a safety net that protects you from the financial cost of a medical contingency. It covers you against expenses such as hospital bills, doctor’s consultation fees, the cost of medicines, and so on. With a medical insurance plan, you will either be reimbursed for the medical expenses you have incurred or the insurance provider will directly pay your hospital/care provider on your behalf.

Healthcare emergencies can come knocking when you least expect them. No matter how young or fit you are, you are never 100% safe from an illness or medical condition. Just take the COVID-19 pandemic for instance – it can affect anyone!

Moreover, the cost of healthcare is rising every day, making it extremely difficult for average citizens like you and me to cover medical expenses. Fortunately, with a health insurance policy, you can rest assured knowing that you are covered against the financial impact of such contingencies.

There are several benefits of having a health insurance policy. The first is the peace of mind that it provides you. No one can predict when a medical contingency can happen, but at least with a health insurance policy, you can rest assured knowing you are financially prepared for such an unfortunate event.

Next, a health insurance policy provides you financial security against medical contingencies. It ensures that an injury, illness, or medical condition does not eat into your hard-earned savings. And lastly, one of the biggest benefits of medical insurance is that it offers tax benefits. Having a plan gives you access to deductions up to Rs. 1,00,000 on your taxable income. Amazing isn’t it?

There are three ways to renew your health insurance policy. The first way is to visit one of our branches – a team of experts will guide you through the renewal process and ensure you leave with extended coverage in the bag and a smile on your face. You can expect a similar experience with one of our authorized agents. All-in-all, we have over 20,000 branches and authorized agents spread across the country. This makes it extremely easy to find one of our touchpoints and renew your mediclaim policy.

The third way is to renew health insurance online. This is probably the easiest, quickest, and most convenient way to extend the coverage of your mediclaim insurance policy. All you have to do is visit our website, click on the ‘renew’ option, enter the details of your policy, and make the payment. After this, you will receive the updated policy documents in your inbox and the coverage of your mediclaim policy will be renewed.

That’s simple! Just log onto our website, click on the health insurance icon, and then hit the renew button. You will have to enter your name & your policy number. After this, all your policy details will be displayed on the screen. You can confirm and proceed, or you can alter the coverage of your policy to better match your current healthcare needs. Then, all that’s left to do is make the payment – once this is done, your policy will be renewed.

You can easily renew health insurance online. Just head to our website, enter your name & policy number, confirm/customize your coverage, and make the payment. Your policy will be renewed in a matter of minutes.

Ms. Pallavi Roy - Standard Health Insurance

Yes, it is just a just different name for health insurance.

No, life insurance and health insurance are two very different products. Health insurance covers the policyholder against medical expenses that arise due to illness, injury, or medical procedures. Health insurance offers coverage only for a certain period of time, after which it needs to be renewed or else it will expire.

Life insurance on the other hand offers protection against unfortunate events such as total permanent disability & death. In case of such an event, a life insurance policy will provide the insured and/or the dependent with a lump sum payout. In case no such event occurs during the policy period, the plan may offer a payout on the maturity date. 

Most health insurance policies generally provide coverage for 1 year only. However, some medical insurance companies also offer multi-year policies that can offer cover for up to two years. Regardless of the policy tenure, all plans need to be renewed before their expiry to ensure continuous coverage against healthcare expenses.

Health insurance coverage amount is the maximum amount you can claim as compensation in case of a medical contingency. It is also known as the sum insured or sum assured of the policy. You can select the coverage amount of your mediclaim policy when you purchase it. Just beware; a higher coverage amount translates into a higher premium amount.

When you cancel your health insurance policy, the coverage of the policy will stop. This means that, after the date of cancellation, you will no longer receive protection against medical expenses. You may also be refunded a certain amount of your premium based on the number of months left in the policy tenure. You can refer to your policy document to understand how this refund amount is calculated.

Yes, besides covering your medical expenses, a health insurance policy also offers lucrative tax benefits under section 80D of the Indian Income Tax Act of 1961. The amount of deductions you can avail of depends on your age. 

You can avail of additional deductions on your taxable income if you pay for your parent’s health insurance as well. As such, you can avail maximum deductions of up to Rs. 1,00,000 on your taxable income with health insurance.

No, maternity and pregnancy-related expenses are usually not covered under a health insurance policy. But worry not! Your employer-provided group insurance plans often cover these expenses.

Yes, health insurance covers the cost of all diagnostic tests including X-rays, MRIs, blood tests, and so on as long they are associated with the patient’s stay in the hospital for at least one night. However, any diagnostic tests which have been prescribed in the OPD are generally not covered by a medical insurance policy.

A waiting period is a time frame wherein you cannot make a claim against your health insurance policy. There are different kinds of waiting periods in health insurance. There is an initial waiting period which usually lasts for 30 days. During this period, no claim will be entertained except for those pertaining to accidental hospitalization.

The second kind of waiting period is applicable to pre-existing illnesses. Under this waiting period, if you are suffering from critical illness, or if you have undergone any surgery recently, and if you need hospitalization, you won't be covered for the same. This waiting period can last for 2 to 4 years. And lastly, there is an illness-specific waiting period which only applies to certain medical conditions and diseases.

When you get a new health insurance policy, there will be a 30 day waiting period starting from the policy start date, during which period any hospitalization charges will not be payable. However, this is not applicable to any emergency hospitalization occurring due to an accident. This 30 day waiting period is not applicable when the policy is renewed.

Simple, when renewing your policy just click on the edit option next to the sum insured of your health insurance policy and increase the cover amount. Do note that your premium will also increase if you opt for a higher sum insured. 

No, medical check-ups are not required for individuals up to age 60. 

Most people assume that health insurance requires a lot of documents. However, on the contrary, you actually do not need any documents while purchasing health insurance from IFFCO-Tokio. We will not even ask for your Aadhaar or PAN card. However, you might need to furnish a valid ID proof when making a claim.

There are two ways to make a claim against your health insurance policy. The first is to way to have the insurance company reimburse the expenses you have incurred. For this, you have to submit all your medical bills along with a duly filled claim form & a medical certificate to the insurance company within the stipulated time period.

The other way to make a claim is to undergo treatment at one of the network hospitals covered by your mediclaim policy. In this case, your insurance provider will settle your bills directly with the hospital. This is known as a cashless claim as the insurer covers your expenses on your behalf and you can focus fully on your recovery. 

You can keep making claims against your health insurance policy until the sum insured of your plan is exhausted. 

In a cashless Mediclaim settlement, it is settled directly with the network hospital. In cases where this is no cashless settlement, the claim amount is paid to the nominee of the policyholder.

In case there is no nominee made under the policy, then the health insurance company will insist upon a succession certificate from a court of law for disbursing the claim amount. Alternatively, the insurers can deposit the claim amount in the court for disbursement to the next legal heirs of the deceased.

The cashless facility refers to a claim process where you do not have to worry about paying your hospital bills. This is because your insurance company will settle the bills directly with the hospital. With the cashless facility, you can focus on getting better while your insurance will cover the expenses on your behalf.

However, this facility is only available at the network hospitals covered under your health insurance policy. At IFFCO-Tokio, we have over 5000 network hospitals, giving you easier access to cashless claims, no matter which part of the country you live in!

Getting cashless claims is extremely simple. All you have to do is seek treatment in one of the network hospitals covered under your mediclaim policy. Upon completion of the treatment, the hospital files a claim with the insurer, and the insurance company settles the bill directly with the hospital. Policyholders need not pay a single penny for cashless claims.

It is a facility wherein the insurance provider will settle your bills directly with the hospital. You do not have to pay a single penny as the insurance company will cover the expenses on your behalf. However, this facility can only be availed if the policyholder seeks treatment in one of the network hospitals that is covered by their insurance provider.

As such, we at IFFCO-Tokio have more than 5000 network hospitals spread all across the country. This ensures that no matter where you are in India, you are not far from one of our cashless hospitals. 

Health insurance is an indemnity-based policy. It will either reimburse your medical expenses or offer cashless hospitalization in case of any medical contingency. On the other hand, critical illness insurance is a fixed benefit policy. This means that it will offer fixed a lump sum payout in case the policyholder is diagnosed with any condition that is covered under the critical illness policy.

Critical illness cover is a fixed benefit policy. It can either be offered as an add-on to your existing policy or it can be purchased as a standalone plan. In case the policyholder is diagnosed with an illness covered under the critical illness policy, the insurance company will provide a lump sum payout as per the terms & conditions of the plan. The policyholder is free to use this amount as per his/her needs, both medical and non-medical.

A health insurance policy, on the other hand, does not provide any lump sum payments, and cannot be used to cover non-medical expenses.

Ms. Pallavi Roy | Critical Illness Benefit Policy

Third-Party Administrators, better known as TPAs, are IRDAI-authorized service providers that act as intermediaries between the insured and insurer. They offer expert assistance & customer support in areas such as cashless claims processing, redressal of disapproved claims, etc. Most health insurance providers in India outsource their claims operations & a number of other administrative functions to TPAs.    

When you buy a health insurance policy, you need to provide details of any illnesses you have suffered/treatments you have undergone during your lifetime. The insurance company will then refer all your health issues to their medical panel to differentiate between pre-existing and newly contracted illnesses.

Note: It is important to disclose any disease you might be suffering from before buying the health insurance policy. Insurance is a contract based on good faith and any wilful non-disclosure of facts might lead to problems in the future.

Ms. Pallavi Roy - Swasthya Raksha Bima

Ms. Neha Ahuja | Mos-Bite Protector Policy

Yes, you can avail of a health insurance policy if you plan on studying/working in India. However, if you are planning to visit India as a tourist for less than 3 weeks, then getting a mediclaim policy doesn’t make sense as the thirty-day cooling-off period will offset the benefits of having a plan. And lastly, medical tourism cases are definitely not covered in the policy issued in India.

Yes! AYUSH treatments (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) can be covered by your health insurance policy. Some plans offer cover for these treatments by default while others might provide AYUSH cover as an add-on. 

It is strongly advised to have health insurance on your own as well because of reasons of continuity. Firstly, if you change your job, you might not necessarily get health insurance from your new employer. In any case, you will be exposed to health costs in the transition period between jobs. Secondly, the track record that you have built-in health insurance at your old employer will not transfer to the new company policy. Covering pre-existing diseases might be a problem. In most policies, pre-existing diseases are covered only from the 5th year onwards. Therefore to avoid the above problems, it is advisable to take a private policy in addition to your company provided a group health insurance policy.

Yes, you need to have a health insurance plan even if you are young and healthy. This is because medical emergencies can strike anyone at any time. COVID-19 is the perfect example of this – it is an illness that can affect all individuals, irrespective of their age, and fitness levels. Some healthcare emergencies, such as accidents, are unpredictable and have nothing to do with age or wellbeing. They can occur when you least expect them and run-up a huge medical bill.

Keeping all this in mind, it is prudent to have a health insurance policy, even if you are young and healthy. Not to mention, plans are generally very affordable when you are fit and in the prime of your life. However, they start to get more expensive & difficult to avail as you grow older.

Yes, you can cover the entire family under one policy. Your health insurance policy is in force across India. You must check whether there is any network hospital near to you as well as your family's place of residence. You must check if your insurer has a network hospital close to you or where the rest of your family resides. Network Hospitals are the hospitals that have tied up with the TPA(Third Party Administrator) for cashless settlement for expenses incurred there.

If there are no network hospitals at the place of your residence, you could opt for reimbursement mode of settlement.

Your medical coverage will depend on the plan you choose. We offer 5 different plan options and each of them offers varying coverage amounts for medical emergencies. We have listed all 5 of our plans below along with their coverage amounts:

1. Gold 500 Benefits Plan - Medical insurance coverage of up to $500,000.

2. Gold 250 Benefit Plan - Medical insurance coverage of up to $250,000.

3. Gold 100 Benefit Plan - Medical insurance coverage of up to $250,000.

4. Silver Benefit Plan - Medical insurance coverage of up to $250,000.

5. Bronze Benefit Plan - Medical insurance coverage of up to $100,000.

Not all our travel insurance plans offer the hospital allowance benefit. Therefore, you will be entitled to receive a hospital daily allowance only if you opt for the Gold 500 Benefit Plan, or the Gold 250 Benefit Plan, or the Silver Benefit Plan. The hospital allowance provided by IFFCO-Tokio for both the Gold 500 Benefit Plan and the Gold 250 Benefit Plans is $30 per day. This daily hospital allowance will be provided only if the insured is admitted for a period exceeding 48 hours and is limited to a maximum of 20 days of hospitalization.

The premium of your travel insurance is calculated basis the number of individuals covered by the policy, the age of the travelers, the destination, the duration of the trip, and the plan you choose.

We understand how important your baggage is. That's why we offer high levels of compensation in case your checked-in baggage is lost in transit. You can get $1,000 for a total loss of checked-in baggage and up to $150 if your baggage is delayed.

Every travel insurance plan will have a set of general exclusions. Here are some standard exclusions that are not covered by our travel insurance policies:

• Events that occur before the commencement of the policy.

• Traveling against the advice of a physician.

• Taking part in a Naval, Military or Air Force operation.

• Illness or accidents or Intentional harm/ injury/crime caused by the insured person as a result of drunkenness or addiction (drugs, alcohol, etc.).

• Illness or accidents resulting from war or war-like occurrences or military action, civil war, rebellion, vandalism, etc.

• Losses related to participation in high-risk sports or training involving un-professional trainers.

• Any pre existing disease is excluded.(conditions applied).

• Any trip for medical treatment is excluded.

No worries. There is a 15 days free-look period for our policies. So if you find the policy unsuitable, you can cancel the policy and get back the premium you have paid within this free-look period.

There is no standard amount being provided when it comes to travelers’ insurance policies. We offer different kinds of plans based on which the coverage differs from one to the next. The coverage also differs depending on the sub-limits on the insurance policy.

We offer various plans that offer different kinds of coverage. These types include hijack distress allowance, travel health insurance, dental treatment coverage, loss of baggage coverage, personal liability coverage, financial distress coverage, personal accidental coverage, transportation coverage for mortal remains, hospital daily allowance coverage, and flight delay coverage. To learn more in detail about the coverage of these plans, please go through our policy documents. 

Yes, our travel insurance plans do cover the loss of baggage. However, the coverage amount depends on the type of plan you have purchased. If you have either of the Gold 500 Benefit Plan, Gold 250 Benefit Plan, Gold 100 Benefit Plan, or the Silver Benefit Plan, you are eligible to receive coverage of up to $1,000. If you are looking for some of the cheapest travel insurance policies, the Bronze Benefit Plan would prove to be a great choice as it offers you coverage of $500 in cases of lost baggage. 

Yes, you can buy travel insurance plans that offer coverage for checked baggage delays. Those who have signed up for the Gold 500 Benefit Plan, Gold 250 Benefit Plan, Gold 100 Benefit Plan, and the Silver Benefit Plan get coverage for up to $150. Those who have signed up for the Bronze Benefit Plan get coverage up to $100. 

There’s only one travel insurance policy that offers you financial assistance, which is the Gold 500 Benefit Plan. This coverage can be very helpful when you are traveling abroad and face a situation where you need financial support. 

Accidents can happen at any time, and hence coverage for such instances could prove to be very important. This is why we include a personal accident insurance coverage in the Gold 500 Benefit, Gold 250 Benefit, Gold 100 Benefit, and the Silver Benefit Plans of our travel insurance services. This coverage is up to $25,000. This coverage is also included in the Bronze Benefit Plan, where the coverage amount provided is $15,000.

Yes, we do provide Hijack Distress Allowance coverage, but only as part of our Gold 500 Benefit Plan, which is our best travel insurance policy. The coverage amount for this is up to $700. 

You can get dental coverage when you buy travel insurance online if you sign up for any one of the Gold 500 Benefit Plan, Gold 250 Benefit Plan, Gold 100 Benefit Plan, Silver Benefit Plan, or the Bronze Benefit Plan. The coverage amount that you will receive is up to $250. 

The loss of your passport can result in significant financial losses. You might have to extend your stay, pay express passport processing fees, re-schedule your flights, etc. Keeping this in mind, our travel insurance policy can offer up to $ 200 in case you lose your passport on your trip.

Yes, tenants are permitted to buy home insurance plans. This would be very helpful min covering their furniture, electronic gadgets, appliances, etc. This plan would also cover any damages faced by the structure of the house.  

A home insurance plan provides coverage for the following losses:

• Damages caused by terrorist attacks and riots.
• Damage caused by an aircraft, explosion, earthquakes, or fire.
• Leaks caused by automatic sprinklers installations.
• Missile testing operations.
• Damages caused by vehicles, animals, bush fires, or landslides.
• Damages caused by floods, storms, pipes, water tanks.

Yes, our home insurance plans provide coverage for the loss of jewellery due to robbery, burglary, or dacoit. This applies not just to jewellery kept at home, but even in bank lockers. 

Yes, our house insurance policies provide coverage for your damaged domestic appliances that are not older than 7 years as a result of a mechanical or electrical breakdown. We either provide coverage for its repairs or replacement, with certain exclusions in place. 

Yes, they are. Accidents resulting in death or temporary, permanent, partial as well as total disablement are all covered in a house insurance policy. 

Yes, the insurance for home loan repayment is applicable when the individual faces:

• At least 3 days of hospitalization.
• EMI payments to the financier (12 months maximum).
• Total disablement due to an accident or sickness.
• Inability to perform in an employment or occupation for more than 30 days. 

According to the Fatal Accident Act of 1855 and the Women’s Compensation Act of 1923, any domestic employee working at your home will be covered under house insurance in India. The policy includes coverage for accidental death, injury, disease, or illness to domestic employees. 

There are two sections under which the legal liability of a tenant is covered under a house insurance policy. The 1^st section involves fires and allied perils, and the 2^nd section involves house break-ins, burglary, and such cases. Apart from this, any electrical installation of the building, glass fittings, or any work with overground/underground cables are all included under the policy. This liability will be judged on the market value basis. 

A home insurance policy provides you financial support to cover the damages to your home whereas a home loan insurance provides coverage to your family in case you face a disability where you are no longer able to repay the home loan. 

Yes, domestic employees are provided coverage for their bodily injuries or accidental deaths under a personal accident cover or an employee compensation cover of the homeowner’s insurance policy.

Yes, our All-in-One-Home protector policy provides home cover for any unforeseen damage caused to your contents. 

A No Claims Bonus is a discount given by an insurer to policyholders who do not claim on their policy in the policy period of car insurance. Typically this starts at 20% in the first claims free policy period of Car Insurance and goes up to maximum of 50%.

Loading is an additional premium, which is paid at the time of renewal of insurance policy if the claims experience during the policy term has been adverse.

There is a discount available if you install anti-theft devices in your vehicle provided the device is approved by the Automobile Research Institute of India and installation approved by automobile associations.

There is no extra premium that is payable in case of a claim but if the claim experience is bad then some loading may be charged as per company policy. You only lose your No Claim Bonus that you could have enjoyed had there been no claim on the policy.

Salvage is the value of wreck after a vehicle meets with an accident resulting in total loss, whereby retrieval of the vehicle into its initial condition is not possible.

Specific Exclusions:

• Any accident outside the geographical area of operation.
• Consequential loss, normal wear and tear.
• Driving without a valid license for that class of vehicle.
• Driving under the influence of liquor / drugs.
• Vehicle not being used as per Limitations to use and.
• Mechanical or electrical breakdown, failure etc which fall under the specific exclusions.
• Willful Damage, Hire or Reward.
• Damage to tires and tubes unless the vehicle is damaged at the same time or the vehicle is stolen.

General exclusion:

• Radioactive contamination, nuclear fission, war invasion.

You can make a claim in following conditions:

• Insurance Policy for that vehicle should exist,
• If you have paid premium for paid driver or, it would be payable, if the car is being driven with your permission.
• The person driving the car is duly licensed as the premium is taken based on the seating capacity, which also includes the person on the driver’s seat.

It is not always necessary to lodge a claim especially if the damage is small. Actually, It is not advisable to make a claim for small damages because, not only will you have to pay for depreciation and excess, reducing the claim amount to an even smaller figure, but you will also lose your 'NO CLAIM BONUS' (if any) at the time of renewal. However, once you have decided not to claim, you cannot claim these damages at a later stage.

You do get full reimbursement for the windscreen glass. However, there is a depreciation of 50% on the rubber lining and sealant. Additionally, you will also need to bear the policy excesses

Any claim can be rejected by an insurance company in certain conditions. Some common reasons for which a claim may be rejected are:

• The policy has expired, or policy has been cancelled or the premium cheque has been dishonored making the policy invalid.
• It could also be that the date of accident or loss falls outside the policy period or
• The person driving the vehicle at the time of the accident did not possess a valid driving license or was under the influence of drugs or alcohol.
• There are also situations where the ownership of the vehicle has changed but the Insurance Company has not been informed within 14 days of such change or the claim was for damages that existed before the policy started.
• Some other reasons could be that the nature of damages does not co-relate with the cause of accident or that the vehicle was being used for other than personal or social purposes.

Insurer refers to the insurance company

Insured refers to the policyholder or the person protected in case of a loss or claim

IFFCO–Tokio is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan. IFFCO-Tokio General Insurance has Pan India presence with 63 'Strategic Business Units' i.e., and a wide network of over 120 Lateral Spread Centres and 255 Bima Kendras

IRDA (Insurance Regulatory and Development Authority) is the apex body overseeing the insurance sector in India. Its main aims are to protect the interests of policyholders and regulate the insurance industry

Premium refers to amount paid to purchase an insurance policy. The frequency of premium payment can vary from monthly to quarterly to yearly or it could even be a one time payment of premium

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

Accidents... illness... fire... financial securities are the things you'd like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

Yes, Auto Insurance is mandatory in India. Having compulsory liability insurance is a statutory requirement of the Motor Vehicles Act, 1988. However, we recommend a comprehensive policy to limit your financial liability.

Insurance is the subject matter of solicitation. IRDA allows insurance to be sold primarily through following:

Channels

• Company websites
• Buying on phone. It depends upon individual company
• Agents representing an insurance company
• Insurance brokers are allowed to sell products of more than one insurance company Banks, retail houses or any other commercial ventures which are channel partner of these insurance companies

Process

• Approach the insurance company with a duly filled up proposal form, through any of the above mentioned channels
• Seek an approval from the company on the intention of underwriting your policy. (I.e. evaluating your risk and exposures. Risk involves consideration of material facts on the basis of which company will take a decision whether to accept the risk and if so at what rate of premium.)
• Seek premium & other relevant details
• Pay the premium and take premium receipt and cover note/risk held note
• Wait for documents
• Check for its correctness on receipt and store it carefully till the policy expiry date
• Ensure that you renew the policy well in time, before the expiry of the policy

Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.

Typically General Insurance contracts are for one year period only

Agents represent an insurance company and sell products of that insurance company only. Whereas, insurance brokers are allowed to sell products of more than one insurance company.

IRDA (Insurance Regulatory and Development Authority) is the apex body overseeing the insurance sector in India. Its main aims are to protect the interests of policyholders and regulate the insurance industry