Paying premium within the due date is as important as paying the premium itself. The policy would lapse in case premiums are not paid and the cover would cease to exist. Then,depending on the policy and the number of premiums paid by you,the policy may or may not acquire a paid-up value. Some companies do provide a grace period after the due date.

I have not paid the 2nd amp; 3rd premium of my unit-linked insurance plan ULIP. How do I take the policy forward now?

Sandeep Shukla,Lucknow

This is usually an outcome of improper planning or miscalculated selling by the insurance agent. No doubt,this can also happen due to an unexpected change in financial situation but usually such instances are an exception and occur in less than 5 per cent of the cases. If faced with such a situation,one must write to the respective insurance company about the issue and seek their help in resolution. Insurance companies may convert the policy into an alternative low-premium bearing or low-cover policy or would deduct the applicable charges and simply refund the balance amount of premium to you.

Are my existing diseases covered at the time of purchasing a health insurance policy?

Venugopal Sharma,Mumbai

No. Pre-existing diseases,as it is termed,in the health insurance policy are usually not covered in the first 2/3 years of the policy. They will be covered only after you continuously renew without any break with the same insurance company for at least 2/3 years. This condition varies from company to company.

When I sell my car and purchase a new one,what happens to my accumulated no claim motor insurance bonus?

Prashant Kelkar,Chandigarh

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No claim bonus NCB is a discount to the individual on his motor insurance claim history. If you have not made a claim and enjoy a particular rate of NCB,then this NCB can be transferred on to your new car. In case you dont sell your old car then the old car will no longer carry the NCB. Please remember NCB can be claimed by an individual only on one particular vehicle at a given point in time.

Expert is CEO,MyInsuranceClub.com For your personal finance queries mail us at expressmoneyexpressindia.com