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Buying 'Return To Invoice' add-on cover

Monday, September 11, 2017
By Rajiv Kumar

Rajiv Kumar is MD and CEO, Universal Sompo General Insurance Co. Ltd.

Do Critical Illness policies pay for Travel expenses in case the patient (insured) is recommended to be treated for the illness in some other geographical location or another country?    
—Avinash Nair, Grant Road

Critical Illness Policy does not specifically pay for Travel expenses as a benefit. A Critical Illness cover pays the Sum Insured as a benefit amount for  listed critical illnesses which are usually excluded from a standard health insurance policy like cancer, sclerosis, coma, heart attack, paralysis, kidney failure, etc. It provides financial protection to individuals following the diagnosis of a critical disease. The lump-sum benefit amount can be used for the costs towards the care and treatment, household expenses, loss of income due to a decreasing ability to earn etc. The amount can also be used for other expenses like traveling to another country or geographical location for further treatment.
Can I buy Return To Invoice add-on cover for my vehicle which is 8 years old?    
—Jayesh Joshi, Sion

Generally, Insurers provide “Return To Invoice” add-on cover for vehicles not being older than 3 years counting from the date of invoice or the date of registration of the vehicle whichever is earlier. Generally this add-on is not offered to vehicles that are more than 3 years old due to the fact that a car that is older than 3 years would have a significant amount of wear and tear that cannot be ignored during claim settlement. Return to Invoice cover is a good option for theft prone areas or drivers who commute on the highway or have to undertake long distance driving.
Does Fire caused by a short-circuit due to water leakage get covered under Standard Fire Insurance policy?    
—Amar Sherdiwala, Kharghar

Yes, provided that such damage are due to water leakage attributable to bursting and overflowing of water tanks, pipes, leakage from automatic sprinkler installations and apparatus of like kind etc., which are covered within the scope of policy. But any such damage following leakage due to normal cracking, repair or alteration to the flat or arising due to defects in construction already known to you i.e. pre-existing defects will not be covered within the scope of policy.
I had a health insurance policy of Rs 2 lakh sum insured and Rs 1 lakh as cumulative bonus. I recently suffered a heart attack and the expenses was around 3 lakh. At the time of renewal of my policy, how much Sum Insured will be given to me. Will it be Rs 2 lakh or Rs 3 lakhs?    
—Nasir Ansari, Cotton Green

Cumulative Bonus is available for every claim free year wherein the Sum Insured is increased by a certain percentage at the time of renewal subject to a maximum percentage (generally 50%). If a claim is made in any particular year, the cumulative bonus accrued is reduced at the same rate at which it has accrued, therefore you will not lose the total CB of Rs 1 lakh, only the accrued percentage will be reduced.

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