Throw a look around your house. What if your house was to get burgled, catch a fire or get flooded? Would it take a huge amount to replace all? If yes, you must buy home insurance. Home insurance is all about ensuring that the several risks to your house are taken care of.

And that means covering the structure of your house as well as the contents. Home insurance covers natural as well as man made risks. Which means apart from flooding, fire, storm and several other risks, your house is also covered from burglary, housebreaking, electrical/mechanical breakdown - related accidents and yes it covers death of your pet dog as well.

So if you were to lose your latest home theatre system, your computer, and the other trivia and treasures you collected over a period of time to floods, burglary among other you can be sure your home insurance cover will kick in to indemnify you.

1)Insurance for the structure or contents: Ascertain what kind of insurance you plan to buy. Is it for the structure of your house only or for the contents as well or both. If you plan to insure the contents too you need to go for Home Insurance policy that would cover household appliances, jewellery, furniture and fixtures and other personal items.

2)Reconstruction value or market value? When it comes to insuring the structure of your house, note that you'll be covered for the reconstruction value of your home and not for its market value. Which means the actual cost of reconstructing your house is what you would be entitled to in case of a damage. On the contrary in case of damage to the contents of your home you would be entitled to the market value. Now in case your home is destroyed and you need to move into an alternative accommodation your insurance cover can take care of that too but only if you're covering structure.

3)Home insurance can replace all contents of your home. Yes. But usually there are a few exceptions such as cash, bullion, works of art and antiques which are not covered. For the rest, take an inventory of all your possessions. And that means not just items you've just bought, but all those tangible items that you consider are valuable too. Home insurance will indemnify you for the loss in case of an eventuality. So retain those purchase receipts carefully.

But then note that it would be the market value of the goods that you'd be indemnified for. So if your music system bought for about Rs 25,000 four years ago is damaged and the market value of the same is about Rs 7000 today, expect just that much. For, the aim of insurance is not to enable you to profit but to lend a helping hand in case of a calamity except in case of valuables such as jewellery in which case this rule does not apply.

Monsoon in the past few years has been anything but normal. Often rapid downpours flood streets and damage cars. If you own a car, you must be having a third party insurance cover. Consider shifting to a comprehensive cover which covers, amongst others, damages made to the car from floods.

There are two types of motor insurance policies available in the market. The first one, commonly known as third party insurance, covers the policyholder against third party liabilities. For example, if you have caused damage to another car or the driver/passengers of that car, the policy will pay for the repair of the other vehicle, and will pay for any medical claims or injuries suffered by them. This policy, however, does not cover your car's repair charges. For cars, the 'Act Only Policy' covers third party property damages only up to Rs 6,000.

The second type policy is known as the comprehensive car insurance cover which covers third-party damages and injuries, theft of your vehicle or fire, and any damage to your own vehicle. In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to fire, explosion, self-ignition or lightning. It also covers burglary, riot and strike, malicious act, terrorist act, earthquake, (fire and shock) damage, flood, typhoon, hurricane, storm, tempest, inundation, cyclone and hailstorm, transit by road, inland waterway, lift, elevator or air.
Going for a comprehensive insurance policy is advisable since the frequency of accidents is high. According to industry estimates, one in every three cars, which have been insured, comes back for claims. On an average, the premium for taking that extra cover could be 3.3% of the market value of the car, as per an industry source. Among the top insurers, ICICI Lombard charges the lowest annual premium for a comprehensive cover of a Rs 2 lakh car of Maruti 800. The rates may differ with the car.

Renewal problems The insurance policy has to be renewed within the period of validity. Any delay in the renewal of the policy renders the policy invalid and you will not be able to avail any benefit of the policy. Often the policyholders don't seem to renew insurance policies. The rate of renewal in policies in India is lower at around 65%.
Insurers claim that customers often don't give accurate information. A private insurer says, "The fundamental problem is that customers don't give accurate personal information like the residential address or telephone numbers. So, the company finds it difficult to reach out to the customer at the time of renewal."

No claim bonus One of the most common types of discount available in car insurance market is the No Claim Bonus (NCB). This discount is offered at renewal of a policy only if you haven't made any claims during the policy period.
In a comprehensive insurance policy, your bonus starts with 20% for the first year and moves by 35% to second year and up to a maximum of 50% for 4 years and more depending upon on the number of claim-free years.
You can avail of the discount at the time of the renewal of the policy. It's adjusted against the premium. Car dealers suggest that if you buy a new car, you should transfer the NCB from the policy of your old car.
Explains a Phoenix Hyundai dealer, "If a customer already has a NCB of 35%, he/she can get an equivalent discount on the premium account. However, no claim bonus can be adjusted with the premiums of new cars only if the purchase is made in a period of three years."

Difficult claims One of the reasons why a claim may get rejected is that the customer may have taken an insurance policy for a normal private car when it's actually used for commercial purposes. When a customer has a taxi, he should use a policy which is designed for taxis," says ICICI Lombard motor insurance head Eswara Natrajan.
In case of partial damages, which occur as a result of accidents, a customer often gets claims lesser than demanded because of depreciation of the vehicle. So, an insurance company puts a car back in the same position as it was prior to the damage of the vehicle.
For example, if the engine of a five-year old Maruti car is damaged, the insurance company is liable to give the customer a five-year old engine. If it is replaced with the new one, then the depreciation is deducted as per the tariffs so as to bridge the gap between the cost of the new engine and the cost of the five-year old engine, he adds.
In case of other damages like threat or fire, customer will be given full value of their Insurance Declared Value (IDV). IDV put simply refers to the market value of the vehicle.

You are not eligible if...

1. You have defaulted in paying premiums and you meet with an accident at that time you are not eligible for a claim.
2. The person driving the car does not possess a driver's licence
3. The driver is drunk
4. There are too many people in the car, beyond the permitted limit

You car hits another vehicle: Insurance experts suggest you inform the insurer immediately. You also have to get FIR from the traffic police, preferably at the venue of the accident.

Your car is hit by another vehicle: You have to get the registration number of the car which has damaged your vehicle. Also file an FIR for a written record especially if there are serious injuries.

Your car gets stolen: You have to report the theft to the nearest police station apart from informing the insurance company. You have to get a 'non-traceable certificate' from the police station before 60 days if your car cannot be traced by the police. The insurer will process your claim only after getting this certificate.

Given a thought? What if you were to bear those huge medical bills yourself whenever you fell ill or needed hospitalisation?

Illnesses, accidents, disabilities can strike just anytime. And that means spending a huge amount of your hard earned savings on medical bills. With rising medical costs, that can mean a big drain on your finances. Hence its important that you have adequate health insurance that can take care of all your medical expenses. Health insurance, can ensure that your family's hospitalization expenses are taken care of easily and your hard earned savings will remain untouched.

Illnesses covered: Health insurance covers you for several illnesses such as Bypass Surgery, Heart Attack, Kidney Failure, Major Organ Transplant, Stroke, Paralysis, Heart Valve Replacement Surgery to name a few. Additionally, it also covers you when accidental death or disablements - (partial or total) strike. Besides your health cover will take care of pre as well as post hospitalization expenses.

Cover for critical illnesses: Health insurance can provide you coverage for critical illnesses too such as cancer. These covers specifically cater to select illnesses and provide you with a lumpsum amount on the diagnosis of the illness.

Here's what's not covered: While your health cover will take care of all major ailments you need to know what's not covered too. Pre-existing illnesses, illnesses contracted during the first 30 days from the time you've bought the policy, child birth, cosmetic surgery, your visits to the dentist, expenses related to X-Ray, other routine expenses are not usually not covered.

Cashless hospitalisation: Your health insurance cover can help you avail of cashless hospitalization benefits through third party administrators (TPAs). TPAs are intermediaries who ensure that your bills are taken care of. So you do not pay even a penny. All costs are borne by your insurance company. Besides there's a long list of network hospitals empanelled with insurers that ensure that you receive quality healthcare treatment anytime across the country whenever the need arises

Tax benefits: Health insurance premiums can get you tax benefits too upto Rs 10,000/- under Section 80D of the Income Tax Act. And if you're over 65 years you get tax benefits upto Rs 15,000/-

Earlier you buy insurance, the better it is: Insurance is cheaper when you're young besides your premiums are also lower. If you're over 45 years of age you may be asked to take several medical tests to prove your fitness and that can mean increase in your premium. So buy insurance at the earliest

No-claim bonus: No-claim bonuses are the benefits you're entitled to for every claim free year. So with each passing claim-free year, your insurer will provide you with incentives - perhaps a hike in the sum assured.

Travelling can be an exciting experience. But if you fall sick, lose your baggage, money or meet with an accident, the result is a disaster. While you can't do much about the inconvenience, the least you can do is protect yourself from a financial loss by buying a travel cover.

Picture this. You are on a holiday in the US and you are robbed of all your money, credit cards and travellers' cheques. The result? You don't even want to think about it. Or, say, you fall sick. Within 24 hours you could have run up a huge medical bill and a correspondingly huge hole in your pocket.

While travelling, you could face a lot of risks like trip cancellation, loss of baggage, loss of money or valuables, accidents, terrorist attacks, natural calamities and occasionally, even death.

Here's giving you a peek into the world of travel insurance

Types of travel insurance Travel insurance is sold in the form of individual or group policies. You can use the latter to buy a joint policy if you are travelling with other family members. Most travel insurance policies have standardised features from which you can choose between the fixed amounts of cover offered, broad travel destinations, trip durations, etc. and you will be informed about the premium payable. However, if you would like a broader insurance cover, such as cover for accidents while taking part in adventure sports like skiing, sky diving, etc., or if you have an abnormal medical condition or an unusual expensive bit of equipment that you wish to have insured against theft while travelling, then you will probably have to purchase an upgraded version of the basic policy.

All you need to do is speak to the customer executive at the insurance company, explain your circumstances and they will have something special created for you, if possible.

There are basically three kinds of travel insurance:

Individual overseas travel insurance: These plans cover trips abroad. It is mandatory in some countries for visitors to have travel insurance.

Student's travel insurance: Such insurance plans cover students going abroad for higher education. They cover a variety of risks and provide timely assistance against any unexpected expenses.

Domestic travel insurance: Domestic travel insurance takes care of all your insurance needs while you are travelling within the country.

Costs Involved The concept of travel insurance is very simple. You pay a premium (a sum of money) to the travel insurance company, and they, in turn, reimburse the costs involved in case of accidents or other types of unforeseen eventualities, as stated in the policy. In all goes well and you get home safe and sound, the travel insurance company keeps the premium. The amount that you pay for a travel insurance policy will depend upon which insurance company you purchase your policy from and the extent of cover being offered. For instance, if you are a 35-year-old individual visiting the US/Canada for a period of 36 days, you can purchase insurance to cover a variety of travel inconveniences and the price you pay for your policy differs accordingly.

Some travel insurance plans   ICICI LOMBARD    TATA AIG   BAJAJ ALLIANZ    Visiting USA/Canada:   Yes   Yes    Yes   Leaving On:   20 June, 2007   20 June, 2007   29 April, 007   Trip Duration:   36 days   36 days   36 days   Returning On:   25 July, 2007   25 July, 2007   03 June, 2007   Platinum Plan:   Rs 3,383   Rs 2,353   Rs 2,492   Gold Plan:   Rs 2,310   Rs 2,042    Rs 2,062   Silver Plan:   Rs 1,914   Rs 1,666    Rs 1,812 Source: Company Websites.Features: The Platinum Plan offers almost 15 major features that are essential for the security of your entire trip. The Gold Plan and Silver plan offer about 10 and 3 basic features, respectively.

Risks covered In general, most travel insurers will offer to cover the following risks:

Trip cancellation: Reimbursement of the non-refundable prepaid payments or the additional expenses for the trip being cancelled or interrupted due to medical problems, personal employment problems or natural disasters.

Travel delay: The insurer will compensate you for any money lost due to a delayed departure. However, this will often only be paid after you have been delayed for a pre-defined length of time.

Dental treatment: If you have to go through an emergency dental treatment while abroad, the insurance company covers this cost.

Baggage loss: If your baggage is lost, then the cost of the baggage (cost of your personal belongings up to the limit specified in your policy) is paid by the insurance company.

Medical expenses: If you fall sick during travel, the costs are reimbursed by your insurer. If you have purchased health insurance cover overseas then there is no need to separately opt for travel health insurance.

Loss of passport: If your passport is lost then the expenses to cover the cost of replacing documents are taken care of by the insurance company.

Repatriation: Repatriation in case of travel insurance is the act of returning you to your country of residence as a result of accidental injury or illness.

Personal liability: This is legal cover for any accident, injury or harm you might inadvertently inflict on another individual.

Hijacking: In the unfortunate event of the aircraft in which you are travelling being hijacked, you will be paid a distress allowance amount.

Others: Other things that are generally covered by travel insurance are medical evacuation, accidental death, repatriation of remains, etc.

To assist you in your research, here are some suggestions to help you make an informed purchase.

Make sure the policy you are considering provides adequate medical/dental coverage. Check your existing insurance policies for possible coverage. There is no sense in paying more for what you already have in your homeowner or tenant policy, such as theft and loss coverage.

If you are a frequent traveller, you should consider annual or all-year-round travel insurance policies. Sometimes these are called multi-trip travel insurance policies. Whatever be the name, these policies are likely to be relatively cheaper than a series of single-trip travel insurance policies.

Take the effort to know what you are buying; read the fine print. For instance, make sure that you understand what the company considers as legitimate reasons for cancellation or interruption. If the list is too restrictive, maybe you should consider another insurer.
Don't restrict yourself to buying insurance only from your travel agent. He/She will probably only have one company's product(s) available leaving you with no choices.
Ask lots of questions about the coverage. Ask for clear explanations of terminology.

End note There are a variety of travel insurance plans available and choosing the right plan can be confusing. Becoming familiar with the basic types of plans on offer and some specialized terms will make it easier for you to compare plans and ultimately choose the right plan for your needs. Travel insurance coverage is a must for every traveller as it takes care of unforeseen factors that might play spoilsport to your travelling plans.

Buying health cover just got costlier. New India Assurance has joined the three general insurers-Oriental, National and United India-with its new version of the ubiquitous Mediclaim policy (TOI broke the story on July 10). And the new Mediclaim makes it very clear that you will have to shell out more for your cover. In addition, be prepared to pay even more if you live in Mumbai: the new scheme divides the country into three zones to determine the premium, and Mumbai is the most expensive. The only saving grace is that the policy has become a bit more transparent. New India is expected to roll out its new policy soon. Here is a preview of the new Mediclaim.

Differential costs New India has revised premium rates based on its "geographical area-wise claim experience." So there are three zones: Zone I (Mumbai), Zone II (Delhi and Bangalore) and Zone III (rest of India). For example, a 35-year-old person would pay a premium of Rs 5,410 for a Rs 5 lakh cover in Mumbai, compared with Rs 5,151 for the old Medicliam policy. The same cover would cost Rs 5,280 in Delhi and Bangalore and Rs 5,150 in rest of India. Additionally, you can claim 100% reimbursement only in your own zone or a cheaper one. If you are in Mumbai (Zone I), you can be treated anywhere in the country and claim 100% reimbursement. However, if you paid a Zone II premium, you can claim 100% reimbursement for treatment only in zones IIand III. If you took treatment in Zone I, you would have to bear 10% of the claim. Likewise, a person in Zone III would have to bear 10% of the claim for treatment in Zone II, and 20% of the claim in Zone I.

Pay more for your child If you are planning to buy a Mediclaim cover for your child (between three months and five years) be prepared shell out even more. Based on its higher claim experience, New India has carved out a separate category for children. For example, a Rs 1 lakh cover for your child would cost Rs 1,385, compared to Rs 1,300 for a 35-yearold in Mumbai.

Pay more if you claim more Firstly, here is some bad news for senior citizens. Once you cross the age of 70, be ready to pay a 2.5% "load" on the premium when you renew each year. The new Mediclaim has some bad news for others, too: customers who make too many claims may find their premium loaded up to 200%. Additionally, they may be expected to bear 15-25% of the claim amount. The loading kicks in the moment you make a claim of 10-20% of the assured sum. That means, if you have a cover of Rs 1 lakh and you make claim of Rs 20,000, your premium will go up by 25%. If your claim is between 50 and 75% of the total cover, you will have to shell out 15% of the claim amount. The loading and bearing a part of the claim amount (co-payment/excess, in insurance parlance) will be applicable only after the completion of two "policy periods."

Curbed benefits The new policy has reduced the maximum cumulative bonus you can earn for every claim-free year. It allows a maximum cumulative bonus of only 30%, compared with 50% in the old version. If you have earned cumulative bonus of 30 to 50%, a one-time increase of 5% will be allowed, but you will not earn any more bonus in renewals. If you make a claim of any amount, the cumulative bonus will be withdrawn at the time of renewal. Also, the policy doesn't allow the domiciliary hospitalisation benefit.

More clarity The new Mediclaim introduces sublimits to bring more clarity on what you can claim. For example, it sets a maximum of 1% of the assured sum for expenses related to hospital room, boarding and nursing. It also spells out sub-limits for intensive care etc. The new plan covers pre-existing diabetes and hypertension for an extra 20% on the basic premium, but you would not be able to make any claims in the first two years. Partial claims are allowed in the third and fourth years, and full claims from the fifth year. It lists 20 diseases which will not be covered in the first two years, and two others not covered in the first four years. There is a list of diseases that don't require 24-hour hospitalisation (a must to make a claim). Lastly, joing a gym may be a good idea. You will qualify for a 2.5% "good health discount" in premium on new cover and renewal of the policy.

According to some reports, a few general insurance companies have started cancelling group insurance cover they had sold earlier to some companies. That means employees (and their families) of these companies won't have health cover till the company manages to buy a group cover from another company. That is clearly bad news for people who were enjoying the privilege of health cover for themselves and their family courtesy their employers. Especially since medical emergencies never seek prior appointment from anyone.
"Many young and middle-aged professionals today depend entirely on group health cover provided by companies. Sudden cancellation of group cover is likely to expose them and their family to unnecessary risk, especially if the company fails to get a group cover from another company soon," says an insurance consultant. "Though we haven't reached a stage like developed countries, where people give utmost important to continuity of health care benefits while changing jobs, I think we are soon going to see a vast change in the way people regard health cover provided by their employers," he adds.
Insurance experts also believe some companies may rethink on providing free group insurance cover to their employees. "General insurance companies are cancelling group covers mainly because they want to charge more premium on these policies. If companies see major jump in premium, probably they will reconsider their decision to offer free cover. This is especially true for small and mid-sized companies," says an insurance expert.
Against this backdrop what should an individual do? Should she buy an individual cover separately even if her employer provides free group health cover? "I think it is sensible to go for an individual cover separately. This will ensure continued health cover for the person and family, irrespective of whether the company has a cover or not," says a financial advisor. "It makes sense particularly because these days, people switch jobs soon and chances are that the new company they join may not offer group cover. Or sometimes, even if there is a cover, it may prove inadequate." According to him, a family can get a cover of up to Rs 10 lakh by paying an annual premium of around Rs 11,000, provided the person is below 45 years of age. "I think the premium is really worth it, considering you don't have to bother about the cover from company or its provisions," he adds.