Right time to buy home Insurance...

Which is the most precious asset you have to protect this monsoon? Undoubtedly it’s your home. After experiencing several floods over the past few years, water logging in homes has also become a common affair. With monsoon just a few days away, may be it’s time to run for cover. The possibility of your house getting damaged by floods may not seem like an incident of rarity if you recall the deluge that hit Mumbai on July 26, 2005. If you defend it as one-time deluge, such once-in-a-blue-moon affair can cost you a fortune.

Home insurance policies are offered by general insurance companies that cover your home against risks from natural calamities such as fire, floods, earthquakes, or land slides. It also covers the structure of the house alone, or your belongings such as jewellery, furniture, electronic appliances etc, or even both. Some policies also cover your rent expenses if you have to move out to another house because your actual house has been damaged due to any of the covered perils listed by your insurer.

Premiums are reasonable for home insurance when you compare it with the single-largest investment of your life. It works out to approximately Rs 60 per lakh for protecting the house structure. Even for furniture, the premium is Rs 60 per lakh. For electronic appliances, the premium amount will be 1% of the value of electronic goods. The premium depends on a variety of factors related to the size of the home, geographical location, type of construction, etc.

Discounts for opting for multiple sections within the policy are built in the plans. You can get discounts of 15-25% on premium payments if you sign up for more than four to six sections of the home insurance policy.

While insuring your home, the insurer always looks at reconstruction value. Reconstruction value is the cost you incur for redevelopment if your house gets damaged. This value is different from the market value, which is usually a function of demand and supply.

Sum insured is calculated by multiplying the built-up area of your home with the construction rate per sq feet. For example, if the built-up area of your house is 800 sq feet and the construction rate is Rs 800 per sq feet then the sum insured for your home structure would work out Rs 6,40,000. The insurers evaluate contents of your home — be it furniture, durables, clothes, utensils etc — as per the market value minus depreciation. However, most insurers do not apply depreciation to jewellery.

In case of any loss or damage to the home, you have to immediately inform the insurance company or your agent. Submit a written claim document to the insurance company. This claim document should contain a detailed account of the articles lost/damaged, the actual value of each article. Then your claim request will be sent to the company’s claims department.

The insurer appoints a surveyor who will submit the final survey report (FSR) along with the documents submitted by you. On receipt of documents, the claims department processes the claim. On approval of the claim, a letter is send to the insured giving the approved amount of settlement along with the discharge voucher.

Payment cheque is released on receipt of the signed discharge voucher. The documents you have to submit will vary from reason to reason. However, they broadly include the filled claim form, photocopy of the policy, final police report and copy of all invoices, repair estimates etc.

How do I claim my Mediclaim?

Mediclaim Policy is one of the Most sold Non Life insurance Products. Thanks to normal life getting more and more speedy and stressful. Under such circumstances is very natural to catch a few illness's and with the Rise in the doctors fees and other medicines life is becoming more difficult...

General Myths about Mediclaim..
1. The Insurance company finds reasons to deny the claims.
2. Insurance Company just takes the premium and rejects all the claims..
and the list goes on..

"I say NO. If claimed Properly, No claims can be rejected."
NO i dont own a insurance company and neither am i promoting any of the insurance companies.
Its my personal mediclaim that helped me write this and share my Experince With you...
For people who complain about not getting the claims..

Few things to remember...
Insurance Policy needs to be understood very carefully at the time of purchase.

For reimbursement Claims:

• Personally(Not the patient and not required if you have a good agent/advisor) visit the TPA.
• This will help you in understanding the office that you ill be dealing for you claim.
• Maintain a file of all the bills and make an excel with the Bill No, date and Amount.
• This sumarry will make the TPA go easy and fast as they would not need to search for papers or bills.
• Follow up Immediately after a week of Submittion. Generally TPA sends a letter incase any discrepencies in 15 days. This excersise will save you 7 days.
• And if all is well ... Hooray you will receive the cheque within a month of claim.
  

For Cashless:

• Keep your photoID ready.
• DO NOT FORGET to fill the Cashless form at the time of Admission.
• Follow up with the hospital Authorities whether they have received any intimation for cashless from the TPA. (Generally hospitals avoid cashless for want of immediate cash or other reasons. Not All But some.
• Once the hospital received the intimation.. Your work is done.

How to claim your vehicle insurance?

With monsoon round the corner, havoc caused at various locations in India & the alert by the MET department over possible cyclone its better to take guards against your vehicle. Monsoon season has never been the best times for vehicles and their owners. This is the season when cars are more prone to mishaps due to water-logged and pot-holed roads. So its better to know & keep ready your insurance policies & also information on claims... Here’s what you need to know about filing claims to ensure a smooth ride in the rough weather:

Procedures for filing the Motor Insurance claim...
There are two options:
1. Cashless Claims.
2. Reimbursement Claims.

What is cashless claims? How does it work?
In cashless claims you can go to any of the network garages that have a tie up with the insurance company which has insured your vehicle. You must have received a list along with the policy or can obtain the same from the insurance compainies website. Some companies also have a toll free number where an executive can guide you with the nearest garage.

Never get the vehicle repaired till inspection is carried on by the surveyour who will access the losses & authorises the claim. Once the claim is authorised the repairs can be carried out & the claim amount is directly settled with the insurance company.

Please note: Incase the repair amount is higher than the authorised amout you have the bear the difference.

What is Reimbursement claim ? How does it work ?

In this case you carry out the repairs at your own expense and file for a reimbursement claim subsequently. Before carrying out any repairs do not forget to inform the insurance company. Some companies might want a survey done first & then you can submit your claim with the Claim form duly filled, surveyour report, repair bills from the garage, & other documents as required by the insurance companies.

In case of reimbursement claims, the disbursal process could take a fortnight, post the submission of documents asked for.

What are IRDA guidelines pertaining to Claim Processing?

As per IRDA (Insurance Regulatory Development Authority), the Insurance Company is required to settle a claim within 30 days of receipt of all requirements.

However, if the claim warrants further verification, the Company should complete its procedures within 6 months from receipt of written intimation of the claim. If the Company settles the claim beyond 6 months period, the interest is payable by the Company on the claim amount. The interest is payable only where the Claimant has submitted all the requirements. Further, rate and period of interest are decided as per IRDA guidelines.