GENERAL INSURANCE BLOG

Health insurance consists of myriad terms and conditions that policyholders should read in detail at the time of health insurance policy renewal or purchasing. However, most of us usually do not pay heed to them and suffer at the time of settlement of the claim. An important clause involves sub-limits in a health insurance policy and the subsequent proportionate deduction.

Sub-limits in health insurance policies usually include capping or limiting the room rent during your hospitalisation. There are a variety of rooms available in any hospital, ranging from general wards to semi-private rooms and deluxe rooms. There is also a proportionate deduction clause associated with the sub-limit. Let us understand these terms in detail.

Sub-limits explained.

Sub-limits are limits or maximum percentage of the total sum insured that an insurance company will bear for the hospital expenses under various categories. Insurance companies usually use the maximum permissible room rent in the hospital as a benchmark for deciding the sub-limits.

For example, if your health insurance policy is Rs.5 lakhs and the permissible sub-limit for room rent is 1%, the insurance company will only bear 1% of Rs.5 lakhs or Rs.5000 per day for the rent of your room in the hospital. Any amount over it will have to be borne by you.

In this case, if your room rent is Rs.7000 per day, the excess amount of Rs.2000 over the sub-limit cap of Rs.5000 per day will have to be borne by you. Generally, the sub-limit on room rent ranges between 1%-2% of the total insured amount.

Proportionate deductible clause.

Insurance companies usually insert a proportionate deductible clause in health insurance policies. The companies calculate the excess room rent over the sub-limit allowed in percentage terms. They then deduct a proportional amount from all associated treatment costs, including surgery fees, tests, doctor consultation and visiting charges, ICU charges, etc. The insured has to bear them from his pocket.

Insurance companies use the following formula to calculate the proportionate deduction.

Excess room rent over the room rent limit/ Room rent limit as per the policy x 100
For example, suppose the room rent limit per the policy is Rs.5000 per day, and the actual room rent is Rs.7000 per day. Hence, proportionate deduction to be applied:
2000/5000 x 100 = 40%
In this case, if the doctor consultation fee is Rs.2000, the insurance company will deduct 40% of this amount, i.e., Rs.800, and will cover only Rs.1200. The remaining Rs.800 will have to be borne out of your pocket.

How to deal with the proportionate deductible clause?

You should always check whether the proportionate deductible clause applies to your health insurance policy when purchasing it. If applicable, you should adhere to the sub-limit cap and choose a room accordingly in the hospital, especially if your hospitalisation period exceeds 3-4 days. This will ensure that the insurance company cannot apply the proportionate deductible clause and will cover all expenses during the hospitalisation period.

If your policy includes a sub-limit capping, consider changing your insurer at the time of health insurance policy renewal to one without such a clause. We can also port our policy to some other company for this purpose.

A health insurance policy is fundamental in the present world because of our food habits and lifestyle. However, only some people know the concept of sub-limit capping and proportionate deductible clauses. This can burn a big hole in your pocket in a medical emergency.

Do not worry if your health insurance policy comes with these riders. Shift to another policy or company at the time of health insurance policy renewal. This will protect you while ensuring that the insurance company will bear all the hospital expenditures in case of hospitalisation.

Click HERE to purchase reliable health insurance.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Are you looking to purchase your first two-wheeler or perhaps on the hunt for an upgrade to your current one? You must have heard various terms such as BS6 and BS4 being used for two-wheelers. Before we jump into understanding them, let's understand why we are talking about these classes.

In order to address the growing concerns about pollution and global warming, the Government of India has introduced regulations known as Bharat Stage Emission Standards (BSES). BSES is the governing body responsible for regulating the output of air pollutants coming out from vehicles. The BSES has made it mandatory for all motorcycle producing brands to register and primarily sell only BS6 bikes from 1st April 2020.

In this blog, we will try to bring forth everything there is to know about BS4 and BS6 engines.

What are BS4 and BS6?
BS4 and BS6 are the 4th and the 6th iteration of the BSES pollution regulations. The Central Pollution Control Board put forth the BS4 emission norms in 2017, which permitted 50 parts per million sulphur content. However, with the introduction of BS6, it was mandated that only ten parts per million Sulphur content were allowed.
Due to BS6, India's emission norms are believed to be equivalent to those of developed countries. BS6 means cleaner fuel and less toxic gases from the exhaust, thus reducing the pollutant content in the air.
The BS6 petrol engine is 25 per cent cleaner than the BS4 motor. And in the case of diesel, it is 80 per cent cleaner than a BS4 diesel engine.

Can you use BS6 fuel in a BS4 vehicle?
BS6 vehicles aren't everywhere just yet, so most motorcycles using BS6 fuel are BS4 vehicles. The important thing to keep in mind is that it is a cleaner fuel and will be perfectly fine for your engine.
Once the laws are mandated, every fuel station will be pumping BS6 fuel. So it is unreasonable to expect one to change their vehicle. This is why it is acceptable to use BS6 power in your BS4 vehicles.

Can you use BS4 fuel in a BS6 vehicle?
It is highly unlikely to have any immediate effect on the motorcycle. There has been certain ambiguity when it comes to this. The petrol engine manufacturers said no effects were seen when a BS6 vehicle used BS4 fuel. However, in the case of diesel engines, there will be some wear and tear eventually. Though, the repercussions would be seen over a very long period.

With the constantly changing time and increasing pollution and population, the automobile industry is preparing for revolutionary changes in the next five to ten years. The laws concerning pollution are becoming more stringent, and it is essential to keep your bike's health in top order to avoid hefty fines in future. Regular check-ups, including pollution checks and servicing, are vital for the good health of your two-wheeler.

It is a good idea to purchase bike insurance to protect yourself from any expenses incurred during these processes. Invest in the bike insurance plan that comes with an attractive premium and features to benefit you when in need.

Click HERE to check out bike insurance plans.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Car insurance services are evolving to serve their customers more efficiently and effectively. With the advancement of technology, car insurance has moved from paper-based to digital-based insurance offerings. One such evolution in car insurance is introducing pay-as-you-drive insurance.

If you've never heard of the term, here's all you need to know!

What is pay-as-you-drive insurance?

The pay-as-you-drive insurance model is a new car insurance policy recently introduced in India. It allows the policyholder to customise their car insurance and reduce the premium. The required third-party liability car insurance is included in the pay-as-you-drive insurance for the length of the policy. Apart from that, it provides comprehensive coverage based on the distance the car travels. Policyholders of pay-as-you-drive insurance pay the premium for the distance their car covers.

There is no need to worry about the authentication of pay-as-you-drive insurance, as the Insurance Regulatory and Development Authority of India (IRDAI) has approved this insurance mode. Therefore, some car insurance companies in India offer and accept the pay-as-you-drive insurance model. This insurance is an excellent option for infrequent drivers. So, if you take out your car occasionally, this insurance is an advantage for you!

How does pay-as-you-drive car insurance work?

As mentioned above, pay-as-you-drive is new in India, and only some people are aware of the rules and regulations of this insurance policy. To make things easier, we have mentioned some essential points for a better understanding.

1. Research a little about the insurance company:
Only some insurance companies are offering the pay-as-you-drive insurance mode. Thus, it is essential to look for genuine sellers. Conduct basic online research about those who offer this plan. Once you've found a genuine insurer, you'll need this feature to move forward with the insurance policy along with
● Recent odometer reading and other essential car details
● Consent form
● Necessary KYC details
● Driving licence
Besides these, provide other documents requested by the insurance company.

2. Deciding the kilometres:
Unlike other types of car insurance, the premium for a pay-as-you-drive policy is determined by the number of kilometres driven by your car. While choosing the policy, you must make an informed decision on how far you wish to drive your vehicle since you'll have to pay the insurance premium according to the distance your car covers. Be sure to check and read all the terms and conditions before finalising.

3. Installation of the telematics device:
As your insurance company may have told you, you may need to put a telematics device in your vehicle. The telematics devices help record the kilometres driven by your car. You can easily install the application on your smartphone and keep a record of how much total distance you have covered.
The insurance company can also use this application to remind you about the exhaustion of the chosen kilometre slab. They can also inform you about easy top-up and renewal notifications.
In addition to tracking how far a car has gone, the device provides information about average speed, how the brakes are used, etc. With all this information, the premium is calculated by analysing the collected data.

Initially, purchasing such a new insurance policy may seem risky. Over time, you'll realise that it is an excellent way to protect your car if you're an infrequent driver. Research more about the pay-as-you-drive insurance policy and consider purchasing the policy from the best car insurance company in India to ensure complete protection for your car.

Click HERE to buy car insurance to safeguard your car from mishaps.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

No matter how prepared you are or how well planned your life is, there is always something that catches you by surprise. You could be out on a trek, visiting a wildlife sanctuary, or just simply walking in your garden when you spot a snake, and while your first instinct may be to run, it is said that snakes do not attack unless they feel threatened.

So staying calm and avoiding movement might be the best option you have. However, if you find yourself in a situation involving a snake bite, these are the few things that you could follow to ensure your or the victim's safety.

1. Staying calm:
This might seem like a banal comment during emergencies, but staying calm ensures that your heart is not pumping blood vigorously. Panicking leads to faster circulation, which means it will spread the venom.

2. Restrict movement:
This step is crucial, as the passage of the venom is not directly associated with blood flow. The venom flows through your lymph, which only moves when you do. So any calls that you need to make for the ambulance should be done by somebody else.

3. Pressure immobilization:
Bandage firmly, 'above' the area of the bite. Use a piece of cloth if a bandage is not available. Roll it around the lymph till whatever place it can reach. Now splint the affected area to keep it still. Use any stick, rolled-up layers of paper, etc., to support.

4. Do not wash the wound:
Washing the area gets rid of the venom that the doctors can use to identify the species of snake. Therefore, it is advised to leave the affected area as-is for the benefit of the doctors.

5. Rush to the nearest hospital:
The only remedy to a venomous snake bite is to get an anti-venom as soon as possible. Rush to the nearest medical facility to ensure that timely medication is provided before the patient's condition turns critical.

6. Keep the victim warm:
It is crucial to keep the patient warm and calm to keep their blood pressure under control. However, no caffeine or alcohol should be given. In addition, any food or beverage, including water, should not be provided since it will slow their metabolism.

7. No ice packs and self-medication:
Research shows that using an ice pack on snake bites is harmful and can add to your problems. Avoid the inspection and cleaning of the wound, and avoid using medicines that you might use for regular cuts and wounds. Don't take any action without proper knowledge. The hospital staff are trained to attend to the wound, the venom, and the medication for every circumstance.

Sticking to the steps mentioned above will buy the patient some time before the anti-venom can be injected. As mentioned, a snake bite can create a sense of panic and fear, but maintaining your calm and taking the first aid measures ensures that you have sufficient time before reaching the doctor or medical facility.

Life is full of surprises, some good and some bad. Being prepared always helps, which is why you should invest in good health insurance. With a plethora of options available in the market, you can sit back and not worry about the unnecessary expenses you might face in case of such emergencies.

Click HERE to find out more about health insurance plans that you can invest in.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.