5 reason why your company health insurance is not enough

Does you company cover you under their health insurance plan? However, in the wake of increasing medical inflation, frequent job switching, lay-offs and early retirements, it is important to have a good backup in the form of a suitable Individual Insurance Policy.

Let’s talk about the limitations of a corporate group policy.

When You Switch Companies or are out of Job

If you are depending on your company’s health insurance plan then if you are switch companies, you lose all the benefits earned on the previous policy. In a crisis situation wherein you lose your job then you will be without insurance.

When you Retire or Age

Once you retire, your company policy ends too. At a later age, it is difficult to get an insurance policy and the premiums are very high. Moreover, if you develop an ailment like diabetes, getting a policy of your choice will be nearly impossible. But, if you invest in a good policy earlier, you can enjoy the benefits of claim free years. Your sum insured will increase gradually and you can reap the benefits in your later years and post retirement.

Extended hospitalization

If you happen to be in a situation of an extended hospital stay, the major charges are the room rent and the medical bills. The limited sum insured of your company’s health policy, may not be adequate to cover these charges, leading to heavy financial investment from your end. Your individual policy benefits can be added to your corporate policy and save you from a major financial blow.

No Claim Bonus (NCB) not earned

With a corporate policy, you do not get any advantage for a claim free record. With your individual policy, you get a good history with the insurance companies and you get the No Claim Bonus reward. This is especially helpful, as the according to WHO, the current medical inflation in India is at 20% per year, whereas income increase is at 10%. Accruing a good NCB amount will keep you on top of your medical expenses. As the years go by, you will have a high sum Insured along with NCB with a gradual and affordable increase in premium.

Limited Flexibility

A group insurance policies are constructed according to the company’s policies and the will of your employer with little or no flexibility to accommodate your health needs unlike an individual one.

The table summarizes the major differences between the two policies. You can get a fair sense of what you can expect from each of them.

company health insurance

 

Read more about Maternity cover

Read more about How do I choose best plan for parents?

During claims, make sure you use your corporate policy and  run a claim free individual policy for unforeseen and post retirement medical treatments.

So, once you have decided to opt for an individual plan, it’s important you do your research, obtain the best quotes and make comparisons. You can compare multiple plans and find the one which fits your needs at Turtlemint.

Read also What is insurance and how does it works?

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

Get your Parents Insured With the Best Senior Citizen Health Insurance Plan

Every little time you needed any or assistance your parents did not think twice on spending all their hard earned money on you. We are sure that you reciprocate the same feeling and now want your parents to lead a long and healthy life. However, with the medical inflation, and additional health care issues with increasing age, affording quality care for them can be challenging. Well, investing is a good health insurance plan for your folks can help.

Why do you need to get health insurance for senior citizens?

With the current costs a simple yet very common cataract (clouding of eye lens causing blurred or loss of vision) surgery can go up to Rs. 15000-35000. With approaching age the severity and frequency of illness rises, leading to skyrocketing of medical bills. At a medical inflation rate of 15% every year, a good insurance cover can guarantee that regular ailments are taken care of without the burden of major financial blows periodically.

You can save tax of more than Rs. 10500/- under Section 80D of the Income Tax Act, by buying a Health Insurance for your Parents.

Some things to keep in mind for insurance for senior citizens.

1. Such personal mediclaim policies have waiting period for pre-existing ailments as well as mandatory waiting periods for specified illnesses.

2. It is wiser to get your parents insured early as in the age bracket of 50 to 69, there are some very good health insurance policies which can help you provide a lifelong medical coverage.

3. After the age of 69, getting a policy becomes more difficult.

What should you be looking for in a good mediclaim policy for senior citizens?

Renewal Ceasing Age: Look out for the Renewal Ceasing age in the Mediclaim policy. This is the age, when the cover will stop and would not be renewed. For instance, in case of Bajaj Silver Health, though it is a very good product, the policy ceases renewals at the age of 70.

No Medical Checkup Options: Generally, Medical checkups become mandatory for people aged more than 45. However there are policies available such as Star Red Carpet, where there is no Medical Test required till the age of 69, of course there are terms and conditions. In case you do not live with your parents, and it is difficult for them to get the tests done themselves, such options are very convenient.

Pre-existing conditions:  With any health care cover for senior citizens, there multiple exclusions and additional charges for pre-existing conditions. If the pre-existing condition are common diseases like diabetes mellitus and hypertension, then some insurers like New India Assurance cover them at a higher premium for each condition. Others cover them by offering varying percentages of the Sum Insured usually up to 50%. One claim free year can also be accounted for when covering pre-existing conditions.

Exclusions and Terms associated with certain illnesses: A lot of senior citizen policies, have an increased number of exclusions and conditions which it comes to certain illnesses. For instance, different policies cover different percentage of the bill for Cataract operations.

Look for a Specialist Mediclaim Advisor: Look for an advisor who specializes in Health Insurance services and provides professional assistance at the time of claims. An advisor will also sound you on the background of various insurers as well as provide you detailed solutions.

What are the good policies offerings in India as this point?

Religare
Iffco Tokyo
L&T
Oriental Insurance
New India Assurance
Bajaj Silver
Star Red Carpet

At Tutlemint.com, just enter your parent’s age, and find the best plan for your preferred hospital next to you!

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

Your reward for keeping good health: No claim bonus

Medical inflation is estimated between 15-20% every year. With such staggering figures, it is imperative to invest in a good health care policy for maximum returns in future. Well, if you have landed on this page, then congratulations, you are on the right track. You have made a conscious effort to understand your health care policy options and  benefits. One such term which shows up on every policy document, as benefits, is the No Claim Bonus.

What is No Claim Bonus?

When you do not file a claim for a year against your health insurance policy, your insurer provides you an incentive for being healthy. This can be in the form of

– Discount on your yearly premium, or
– Increase in the Sum Insured also known as the Cumulative Bonus.
Read more about Cumulative bonus & No Claim Bonus

Also understand cumulative bonus through this short video

How does NCB benefit you?

A health insurance provider may offer a percentage increase in the sum insured or a discount on the premium payable, if you don’t make a claim for one policy year. One of these two options is available, depending on the company and the plan you choose.

For discount in premium, a person can get between 5% to approximately 20% discount on the premium. Mostly public sector insurance companies like Oriental Insurance, New India Insurance, United India insurance are a few examples.

For an increase in sum insured, you can receive from 5% to a maximum of 100% depending on the policy of your health insurance provider. Almost all private sector companies follow the NCB on sum insured policy.

Read more about Common health insurance terms

Let us understand this via an example to see things in perspective.

If you have a health insurance policy with a sum insured of Rs 5 lakhs, with a 5% increment for a claim free year, then after the 1st year, upon no claim the sum insured will be Rs. 5,25,000.

For a 2 claim free years, your sum insured will now be,

Rs 5,25,000 + (5% of Rs 5,00,000 =25,000) = Rs. 5,50,000.

Note: The percentage increase in the sum insured, is always calculated on the base sum insured and added to the value of the latest sum insured.

With the aforementioned medical inflation every year, the added NCB on your base sum insured and no change in your premium, is definitely a benefit that you need, to take care of increasing health expenditures.

What Happens to the NCB when a claim is processed?

For instance, you have a 3 years and you have enjoyed 3 healthy no claim years. Now, if  insurance provider increases your sum insured by 5% every claim free year, then in your 4th year, for an original sum insured of 5 lakhs, you will be eligible for Rs. 5,75,000.

If you file a claim in your 4th year, then your NCB on your sum insured will decrease proportionately by 5%. So now your sum insured for the 5 th year will be Rs 5,50,000. Hence, the cycle of accumulating NCB starts again.

Please note: The above values are just for the purpose of the example. Every time a claim is processed, there are different consequences, depending on your insurance provider.

Points to Remember

1. Every health insurance policyholder is eligible for the NCB provided the policy is renewed every year without any break.
2. The Sum Insured even after multiple claims, does not go below the original value. However, the premium prices may change.
3. Your NCB can range from 5% to a maximum of 100% for every unclaimed year.
4, Different health insurance providers have different policies with regards to NCB.

For more information on how different insurers provide the NCB, visit Turtlemint and choose the policy according to your requirements.

Read more about Separate health insurance plans for parents of floater?

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

Understanding IDV- Amount you can claim for vehicle damage

When you buy a motor insurance policy for your vehicle, do you ever consider the IDV offered by the policy?

Very few of you do. When buying or renewing motor insurance policies, the first thing which most of you consider is the premium charged by the policy. Some of you also consider the coverage offered, available riders, discounts and other aspects of the policy but the IDV is, usually, given a miss. The most common reason why IDV is ignored is because many of you don’t understand the concept and its relevance in your motor insurance policy. But ignoring IDV is a bad move. It is important at the time of a claim made under the policy. Do you know how? Let’s understand –

What is IDV in motor insurance policies?

Simply put, IDV, Insured Declared Value, is the maximum liability undertaken by the insurance company with respect to your vehicle. It represents the value of your vehicle in the eyes of the company. IDV is the maximum amount of claim which the insurance company would pay in case your vehicle is stolen or it suffers a total loss. You can call the IDV to be the sum insured of your motor insurance policy.

How is IDV calculated?

As stated earlier, IDV is the value of your vehicle as calculated by the insurance company. The company calculates the IDV based on the market value of the vehicle after deducting depreciation based on the vehicle’s age. The actual formula for calculating IDV is as follows –

IDV = the listed price of the vehicle as per the manufacturer – depreciation specified in the Indian Motor Tariff

The listed price is also called the ex-showroom price of the vehicle and it excludes the cost of registration, insurance and other loadings.

Moreover, if the vehicle is fitted with additional accessories the costs of which are not included in the listed price, IDV would also include the value of such accessories after depreciation. In such cases, IDV would be calculated as follows –

IDV = (the listed price of the vehicle as per the manufacturer – depreciation specified in the Indian Motor Tariff) + (value of additionally fitted accessories – depreciation on them)

The rate of depreciation applicable for calculating the IDV is as follows –

Age of the vehicle Applicable depreciation
Up to 0.5 years 5%
0.5 years to 1 year 15%
1 year to 2 years 20%
2 years to 3 years 30%
3 years to 4 years 40%
4 years to 5 years 50%

If the vehicle is more than 5 years old, the IDV is settled based on its condition, serviceable parts available in the market and a mutual understanding between the insurance company and the policyholder.

Importance of IDV

The importance of IDV is felt at the time of claim. Since it is the maximum liability undertaken by the insurer, IDV is paid in the following instances of claim –

In these three cases of claims, the insurance company pays the IDV applicable under the policy. So, having the correct IDV in the insurance policy would determine the settlement of claim and is, therefore, important.

IDV and motor insurance premium

Since IDV represents the value of the vehicle, it is directly proportional to the premium of the policy. This means that if the IDV is high, the premium would be high and vice-versa.

Choosing the correct IDV of the motor insurance plan

Since IDV determines the premiums of the motor insurance policy, many of you are tempted to opt for lower IDVs when buying the plan. You should not do so. Choosing the correct IDV is important because IDV not only affects your insurance premium, it also affects your insurance claim. If you choose an IDV which is considerably lower than the market value of your vehicle, you would end up getting a very low claim if the vehicle is stolen or completely damaged. The claim would not be sufficient to pay for a replacement vehicle and might cause a financial strain. That is why it becomes imperative to choose an IDV which is closest to the market value of your vehicle after factoring in depreciation.

That said, choosing a very high IDV is also bad. If you go for very high IDVs, you would end up paying unnecessarily high premiums for your policy.

So, be careful when selecting the IDV of your policy. It should be ideal, not more and, definitely, not less.

The next time you compare your car insurance or bike insurance policies to buy or renew your plan, make sure to factor in the IDV offered too besides considering premiums and coverage features. Having the right IDV is equally important as paying the right premium and you should, therefore, make sure to choose the most optimal IDV for your vehicle.

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Read more Car insurance terminologies you should know

Read more How to choose your best bike insurance policy

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I am healthy, why should I buy health insurance?

I am healthy, why should I buy health insurance?- said Malik Raja Mora, a healthy 26 years old Mumbai immigrant, who lived in a decent apartment, had moderate savings for someone in their mid 20s, and worked, exercised and ate healthy for the most of it. He did not smoke or consume excessive amount of alcohol. On an average, more fit than most youths in that age group in metros lately.

It was in March, on a regular working day, he had a massive headache after work. He popped a Disprin, and decided to call it a day. At  5 am, he woke up and felt heat emitting from his body. He had a splitting headache and blurred vision. He woke up his flatmate who rushed him to the near by reputed private hospital chain (Name removed). Let us hear from Raja himself, the narrative of the events that followed.

In the morning when I was rushed to the hospital in my vicinity, the night shift doctor, took my vitals and asked a few general questions. My fever was taking a toll on me, and my roommate Varun spoke on my behalf.  The doctor prescribed me regular antibiotics and paracetamol and suggested that I went home and rested. That time, the swine flu scare had gripped the city. Varun, a borderline hypochondriac, inquired if I could be a suspect and requested to do a test. The doctor seemed a little apprehensive.  He said that the test was expensive and we should consult a general physician as he was just a casualty doctor.  We agreed and decided to head home. Varun gave me some milk and bread, the frugal items available in our humble bachelor pad,  and I took the medicines with it.

Raja 7

As decided, at 9:30 am we went to the physician. My fever had spiked again but he refused to run any tests as they were expensive. I agreed to pay for it, but he did not give his consent and sweet talked us out of it.  He repeated the same prescription with a stronger paracetamol and added “isolation” at the end. He advised me to go home and observe for 2 days and told Varun to be wary. I went home and crashed. In the afternoon around 2 pm I woke up with a fever of 103 despite taking a paracetamol 4 hours ago.  Varun who decided to work from home that day rushed me to the hospital 3rd time the same day. The on-duty physician was alarmed by the sudden spike in temperature and  administered an IV paracetamol drip. Varun insisted on running some tests, but she refused as she apparently required the permission of the attending physician. When did this rule came into place, I did not know. Hence, it was pushed to the next day.  My exhaustion level had crossed my tolerance threshold and I could barely walk. A kind auto driver got ready to take us 300 mts  from the hospital to our apartment at 2X the meter price. I crashed on my bed and  fell asleep.  After what felt like 5 minutes, I was woken up by Varun. However the creases on my face from the pillow and the clock said otherwise. I had slept for 7 hours straight in the same position.  Varun, tried to feed me some Khichdi he had attempted for the first time inspired by a Youtube video. But, the bitter taste in my mouth and absence of appetite prevented me from appreciating his effort. When I refused to oblige despite constant concerned badgering, he checked my temperature which was now a dangerous 104. He ran to the other room frantically calling people. After an eventful day, my savior was tired and scared of being the solo show runner of my unprecedented illness. He finally called a co-worker for help. They immediately drove me to a nationally reputed hospital about 6 kms away. I was immediately admitted and allotted a single isolated room as an H1N1 aka Swine Flu suspect. They took samples and dispatched them for testing without further adieu. They prescribed Tamiflu to Varun and told him to take extra precaution. He was given instructions to get admitted to the hospital if he developed symptoms. He swore that he had an itch in this throat and it could turn bad, but fortunately the doctor dismissed it as a psychological symptom.

The flawless medical attention I received at the Reputed Hospital, assured me that my health would improve, but little did I expect the monetary punch, soon to throw me off balance.

It started with a deposit amount of Rs. 20,000 to get admitted. I was asked about health insurance which I did not have. Luckily, I was a little more careful with my money than my friends, and I had some savings. I gave my card and the pin number to Varun and he took care of all the formalities.

I was happy with the nice room I was put in, and the care and attention comforted me. They gave me a plethora of medicines to gulp down and I obliged.

I stayed there for another night, oblivious to the costs I was incurring.  The next day when I was back to my senses, the reality dawned on me. I was staying in a plush room with the best medical facilities in one of the most expensive cities in India. That kind of celebrity treatment, could not be cheap. I asked the on-duty staff to discharge me, but  I could not leave unless the attending physician consented.

I pestered Varun to call the accounts department to inquire about the costs incurred so far. I was shocked when I found out the amount. I believe you would be too. The total was Rs 37500 for one night! Out of which only Rs 8000 was for the H1N1 test and the rest were ridiculous expenses like an isolation room, in which I was put not by choice but for the safety of all patients and medical staff. A single visit by the attending, which involved him walking in, looking at me and walking out,  was Rs 2000. Right from the masks, thermometer, medicines, IV drip, I was charged for everything! Oh yes, the terrible bland food was complimentary. I would like to mention that till then my reports had not arrived, so I was paying as an H1N1 suspect and not patient.

When my reports came out, I was declared positive for H1N1, which at that time made me a little happy- at least the Rs 37000 hospital bill was somewhat  justified.

My temperature normalized and I wanted to go home.  But the hospital refused to discharge me as I was contagious and could be a danger to the people around.  My friends promised that they would quarantine me and take care of me without putting themselves and others at risk. Still not allowed. The moment I said I did not have money to pay anymore, I was immediately given the Discharged against medical advice slip and told to pack-up and leave. So much for their concern for safety of the society.

I did not want to put my friends at risk, despite them promising to take care of me and quarantine me. So we inquired at a friend’s private hospital which was slightly cheaper, and they refused to admit an H1N1 patient. As the last resort we headed to a government hospital in a small station in Thane- Kalwa.

They showed us an isolation ward. I was horrified looking at the room and especially bathrooms. I was sure that public bathrooms in crowded areas were better maintained. If I had to stay there for a day, I would contract more illnesses, with my already compromised immune system. We headed home and I was quarantined for  4 days, till I completely recovered.

So after a blow of almost Rs 40,000 I wish I could just give my cashless insurance card at the hospital.

For a basic accident and sickness cover, I am now paying only Rs 4000 per year at my age. It took me all my hard earned savings to realize that I was losing the small amount in taxes anyways. Why not use it to secure my health?

I am healthy and a young individual, which is why I Should Have Bought Health Insurance.

We would like to thank Raja,  for sharing his experience with our readers. We wish him luck for a bright and healthy future.

Read more about what is insurance and how does it work?

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

What are the Pradhan Mantri insurance schemes?

The advent of whatsapp has made messaging obsolete. who wants to pay for messaging when whatsapp is faster is easier.

Home screen notificationAll you get in messages is anyways advertisements and promotions.  But isn’t it super difficult to ignore the little notification on your phone,  despite most of them being the same annoying promotional offer?

Lately many of us have been receiving a lot of messages from our banks about the Pradhan Mantri Suraksh Bime Yojna (PMSBY) and Pradhan Mantri Jeevam Jyoti Beema Yojna (PMJJBY). Not only messages but a lot of emails and letters too have somehow been talking and pushing us to avail it. So what are these Yojnas?

Pradhan Mantri Suraksha Bima Yojana

The PMSBY is an accident insurance policy introduced by the Government of India for its citizens.  It provides cover up to ₹ 2 lakh for accidental death or full disablement of the policyholder for just ₹ 1 per month. Any Indian Citizen between ages 18 to 70 years regardless of their socio-economic status can buy this policy.

What is in Store for You

  1. It is linked directly to your bank account. The annual premium amount of ₹ 12 will be debited in a single installment from your  bank account on or before 1 June every year.
  2. Death and Full Disability: ₹ 2 lakh : Full Disability is described as
  • Total and irrecoverable loss of both eyes or loss of use of both hands or feet, or
  • Loss of sight of one eye and loss of use of hand or foot
  1. Partial Disability: ₹ 1 lakh Partial Disability is described as
  • “Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot”

Pradhan Mantri Jeevan Jyoti Yojna

Rs.2 lakhs is payable on member’s death due to any reason. If the Scheme Member dies during Insurable Membership, subject to Policy being in force and all due Premiums, Service Tax and any Other Levies (if any) having been paid and subject to any restrictions or qualifications referred to in these Clauses, the amount specified as the Sum Assured for such Scheme Member shall become due to the Nominee of the Scheme Member. No Maturity benefit is payable under the policy. No Surrender benefit is payable under the policy.

No policy comes without the fine print terms and conditions. So here are some for the PMSBY and PMJJBY

  • You can have only one subscription to the insurance policy regardless of the number of bank accounts you may hold.
  • The policy will be processed through the policyholder’s AADHAR-linked bank account only- So if you don’t have an AADHAR number ( card is a distant dream at this point) time to stand in those long lines at the municipal corporation.
  • To get the policy, you must authorize your bank during application to auto-debit the premium amount at the time of renewal and ensure the continuation of the policy.
  • A shout out to all broke people- you must have sufficient balance (i.e. Rs 12 for PMSBY and Rs. 330 for PMJJBY)  in your linked bank account at the time of renewal each year. Failure to do so would result in the risk cover being suspended with reinstatement at the sole discretion of the insurance company.
  • Your linked bank will be the Master PolicyHolder on behalf of you.

If you are one of those few people, whose bank has not already contacted you, please get in touch with them to process your policy application.

What a regular internet search will not tell you clearly about this policy

You will be able to get the claim of Rs 1 lakh only if you lose one eye or one limb. No other accidental ailment will be covered.- So if you are admitted to a hospital for a fracture or injury, this scheme will not bear your hospital charges.

Read more about What is health Insurance?

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

Be safe and secure 🙂

Why should you get your two wheeler insured

Lets take a look at the funny CCTV coverage caught live!

Maybe situations like this do not occur everyday with you. However, it’s pretty evident that accidents are pretty common.  Maybe you had nothing to do with reckless driving, but still became a part of it! Can you think of the kinds of costs you could incur if your vehicle was damaged. Worse would be if be if you collide with someone and they file a legal claim against you!

How do you avoid such situations? Well,

  1. Drive Safe
  2. Get Insured.

“75% of two wheelers in India are not insured, despite it being illegal”

May 2015, the Insurance Regulatory and Development Authority (IRDA) stated that 75% of two wheelers in India are not insured, despite it being illegal! Yes riding a vehicle without a 3rd party liability is illegal and can lead to heavy fines, and or prison punishments. So, having an insured vehicle is not only the right, but also the wise thing to do.

Read more Why do you need third party insurance for two-wheelers.

How will insurance benefit you?

  1. It will cover the expense of your vehicle damage and medical expenses- provided you are not underinsured – ( Link to why not be what coverage to get article)
  2. In the event another person is hurt or his vehicle is damaged, insurance will cover his vehicle, property and life damages too.
  3. A peaceful night’s sleep that you are doing the right thing legally and monetarily.

Now since you are convinced as to why to get 2-wheeler insurance, do check out our HOW & WHAT to select for your two wheeler insurance by visiting our site here.

Drive Safe 🙂

Read more about What to do when you two wheeler meets with an accident?