Ask us: Harsh Roongta

There are no differences in the base product in the case of online and regular term policies except the price and the riders.

Written by Harsh Roongta | Published:October 10, 2011 2:32 am

Are online policies better in terms of claim settlement ratio? How safe they are as compared to regular policy?

—Ruchika Bansal,Delhi

There are no differences in the base product in the case of online and regular term policies except the price and the riders. This means you must make sure that you fully disclose all relevant facts while buying the policy online as well as while undergoing the medicals and providing the documents. It does not make sense for you to buy a term product off line today since online products are much cheap. Separate claim settlement ratio for term policies (whether offline or online) are not available. Firstly,claim settlement ratio should be statistically relevant samples such as for companies that have been around for many years and have experienced death claims in significant numbers. Secondly,they can be compared for similar type and size of business. For example,it will be incorrect to compare a company that has sells investment related policies with a company that does relatively more term policies.

What is health insurance portability and how would cutomers benefit from it?

—Suresh Sharma,Gurgaon

Health insurance portability means that the period of time that you spend with your existing health insurance provider will be taken into account while working out the period of exclusions like reimbursement of hospitalisation expenses coming from pre-existing diseases or some other temporary exclusions. For example,if the new health insurance company has a clause that they will not cover hospitalisation expenses of knee replacement surgery within the first two years of the policy and you have had a policy for three years with your existing insurance company then the new health insurance company will cover knee replacement surgery expenses from the very first year of the policy with them.

Similarly members of a group insurance policy can shift to an individual (or family floater) policy from the same insurance company.

In order to avail insurance portability the application with the new insurance company should be made well in time (at least 45 days) before their existing policies expire. In all cases they will need to submit the regular proposal form of the insurance company along with a portability form available on the IRDA website.

Please fully disclose all facts that are relevant to the policy including any disease or claims made. This may result in the premium being higher or even the policy being denied. u

—The expert is CEO,Apnapaisa.com
For your personal finance queries please email at expressmoney@expressindia.com

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