Skip to main content

Take extra cover for sake of your health

 

Take an additional health cover even if your employer covers you with a group mediclaim. In many cases, claims can be made under both the policies





   WHILE spiralling healthcare costs have awakened people to the indispensability of health insurance, the concept of corporate group mediclaim has led to many employees avoiding buying a standalone health cover. A large number of organisations in the organised sector cover their employees as well as their immediate families under corporate mediclaim, resulting in independent health insurance slipping out of their priority list. However, financial planners and health insurers caution against adopting such a lax attitude towards the health of your family as well as your own.

A CASE FOR INDEPENDENT HEALTH COVER

The reasons are multi-fold. Your corporate medical cover is contingent upon you being employed with the organisation — the moment you decide to switch jobs or happen to face a lay-off, it will cease to exist. You may be entitled to the group health cover offered by your new employer, but it will not come into force during the transition period, leaving you exposed to the risk of having to foot your own bill, should any medical emergency arise then. A personal health cover ensures continuous coverage.


   Besides, adds Sanjay Datta, head of health and accident of ICICI Lombard General Insurance: "Group mediclaim coverage is decided by the employer and is often inadequate in terms of coverage limits and does not cover the entire family." This apart, the prospect of having a critical illness with little or no earning capability also makes a very compelling case for buying personal health cover.


   Health cover provided by the employer does not extend to post-retirement years — the period when you would need it the most, as ailments start taking their toll. This is also the age when individuals find it difficult to obtain a standalone cover at a reasonable premium, making buying health insurance at a younger age imperative.

MAKING A CLAIM UNDER TWO POLICIES

Many policyholders tend to assume that they can file a claim under any of the policies they have signed up for, which may not always be the case; whether the individual can make a choice to claim depends on the provisions made in the policies taken. Also, whether the individual can make a choice to claim, depends on the provisions made in the policies taken. "Typically, there is a declaration sought from the customer on the policies under which s/he is covered, and the total liability is shared by the insurers," informs Mr Datta.


   The contribution clause in the policies states that claims can be made under both the policies, in the same ratio as the sum insured. For instance, if you are covered under a corporate policy with a sum insured of Rs 2 lakh, in addition to a personal cover of Rs 1 lakh and make a claim for Rs 1 lakh, the insurer servicing the former will contribute around Rs 66,000 while the balance will come from the other insurer. However, according to Pawan Bhalla, CEO of Raksha TPA, in India, policyholders are not legally bound to disclose the details of any existing policy or make a claim under both the policies. Hence, they can file a claim under any of the two policies they are covered under.

CLAIMS PROCEDURE

The swiftness with which a third party administrator (TPA) processes a claim plays a role in fulfilling the objective of buying health insurance. If your mediclaim policies are serviced by the same TPA, the process becomes simpler, as the documents need not be transferred from one TPA to the other. In cases where the TPAs are not common, a certificate needs to be obtained from one TPA mentioning the claim amount being settled and that original documents have been retained. The insured can submit the photocopies along with this certificate to the other TPA.

Popular posts from this blog

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now