What is insurance?
In simple words, insurance is a legal contract between the policyholder and the insurance company. Here the insurance company promises to compensate for the financial loss to the policyholder during any unforeseen event in return for a specified premium payment. You can purchase insurance policies for various risks associated with your car, bike, home, life, health, and business.
What are the types of insurance?
Insurance is classified into three categories of Life Insurance, Health Insurance & General Insurance.
Life insurance provides financial protection to your family in your absence.
Health insurance provides financial protection against high hospitalization and medical costs during medical emergencies.
General Insurance, also known as non-life insurance, offers financial protection to you on your assets like car, bike, home, business against threats like natural calamities, fire, burglary, etc.
How do I get tax benefits if I buy insurance?
Life insurance policy premiums qualify for a tax deduction under section 80C of the Income Tax Act, up to ₹1,50,000. And any proceeds received under life insurance policy benefits such as death, maturity, or accrued bonuses qualify for a tax exemption under Section 10(10D) of the Income Tax Act.
The premium paid for health insurance plans qualifies for a tax deduction under Section 80D of the Income Tax Act, up to ₹25,000 for individuals. For senior citizens, this exemption amount is up to ₹50,000.
How do I buy insurance on the Chqbook Insurance website?
It's easy and simple to buy insurance on the Chqbook Insurance website
- Choose the type of insurance you want to buy
- Fill in your details
- Compare the insurance plans and premiums
- Make payment through debit card, credit card, net banking, or e-wallets
- And if you do need assistance, our tele-relationship managers will be happy to assist you in the buying process
How long will it take for my policy to get issued?
The insurance policy is issued instantly after successful payment for car and bike insurance unless the chosen insurance company raises a vehicle inspection requirement. A health insurance policy can be issued instantly based on your age, gender, and medical history. If the insurer triggers a medical test requirement based on your profile, the policy gets issued after completing all required processes.
What is a cover note?
A cover note is a temporary document of your vehicle insurance. It serves as proof of valid insurance in advance before you get the final policy document and premium payment receipt from your insurance company. It includes details such as name, address, vehicle registration, the purpose of the vehicle, level of cover, policy number, expiry date, and special conditions.
What is a free look period?
A period of at least 15 days (30 days in case of electronic policies and policies sourced through distance mode) from the date of receipt of the policy document to review the policy's terms and conditions and return the same if not acceptable. The insurance company will refund the premium paid after deducting any expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges or proportionate risk premium.
How long is a vehicle insurance policy valid?
A vehicle insurance policy is valid for one year. The vehicle owner must renew the policy within the due date to avoid lapsation and protect NCB discounts.
What is meant by IDV?
IDV stands for Insurance Declared Value, which is the vehicle's market value when taking insurance. IDV is the maximum amount the insurer may pay against your insurance claim towards damage or theft.
Can I transfer my existing car insurance policy to my new car?
If you have not claimed under your existing car insurance, you would have accumulated a discount, also known as the No Claim Bonus (NCB). However, if you wish to buy a new car, you can get the NCB transferred from your older car insurance policy to the current one. It means you can continue to receive a 50% discount on insurance premium even when you buy a new car and a new insurance policy.
When is an endorsement required?
An endorsement is needed when you need to make an amendment or add to the existing terms and conditions in your insurance policy. Endorsements allow one to add, delete, alter or eliminate any parts or terms under the policy coverage.
What does vehicle insurance cover?
A vehicle insurance policy covers the following:
- Cover for damages to owned vehicle
- Theft of owned vehicle
- Death or body injury of the third person
- Damage to third party property
- Personal accident cover
- Personal accident cover for passengers
What is Arogya Sanjeevani ? Is it a government sponsored insurance policy?
Arogya Sanjeevani is an affordable and simple health insurance policy approved by IRDAI. As per IRDAI, all general and health insurance companies must provide this health insurance policy to their customers. This insurance is not sponsored by the government. You will have to purchase an Arogya Sanjeevani health insurance policy on your own.
I've health insurance from my company. Do I need a separate health insurance policy?
Yes. You do need a personal health insurance plan as your employee health insurance covers medical expenses only until your employment is valid in the organization. The moment you leave your job, the policy term ends. The health insurance coverage offered by your employer may not be sufficient to cover rising medical costs. Therefore, you need to have a minimum of ₹10,00,000 of personal health insurance.
What are pre- and post-hospitalization expenses?
Whenever you plan to have surgery, there are certain pre-hospitalization expenses such as diagnosis cost, consultations, etc. Similarly, post-discharge, there could be similar expenses to monitor the health of the insured patient. Therefore, such expenses are termed pre and post-hospitalization expenses.
Do I have to undergo any medical examination before buying health insurance?
Yes, you may have to undergo medical tests before buying health insurance. Also, some health insurance companies ask for a medical examination only if you have a pre-existing illness or if you are above 40 years old
What is domiciliary hospitalization?
Domiciliary hospitalisation means medical treatment for an illness/disease/injury which in the normal course would require care and treatment at a hospital but is actually taken while confined at home under the following circumstances:
Either the patient cannot be transported to the hospital or
If no bed is available at the hospitals in the city.
What is a claim settlement ratio?
Claim settlement ratio is calculated by dividing the number of insurance claims settled by the number of insurance claims received by the insurance company. Ideally, it would help to go for an insurer with a high claim settlement percentage or CSR.
E.g., if a health insurer has a claim settlement ratio of 97%, which means that the company has settled 97 out of 100 claims that have arisen in that financial year.
What do you mean by pre-existing disease?
A pre-existing disease (PED) is a condition, ailment, or injury that already exists when you buy a health insurance policy. PEDs are usually excluded from the policy coverage for an initial waiting period. Some of the pre-existing diseases can be diabetes, hypertension, thyroid, asthma, etc.
What is the difference between family floater health insurance policy and individual health insurance policy?
When you purchase a family floater health insurance policy, you can cover your entire family (spouse, children, parents) under a single policy. The sum insured of this policy is shared amongst the insured family members and can be used to cover hospital bills and other medical expenses.
On the other hand, in an individual health insurance plan, the sum assured is assigned to an individual and cannot be shared among family members.
You can compare the premium and total benefit between the two and decide what suits your requirement.
What is co-pay in health insurance?
Certain health plans will come with co-payments or deductibles, which means a part of the total claim amount is borne by the policyholder and the insurance company pays the remaining amount. As a result, the premium for such plans will be a little lower than the usual one. Always ask about the co-payment details before purchasing the policy and choose a co-payment amount that will not burden your pocket while paying a health insurance premium.