Q&A Insurance

Delay in Claim 

My father was a member of the Country Vacations Club, Hyderabad, which had agroup accident policy from HDFC ERGO General Insurance with a cover of . 5 lakh for each member. My father died in an accident in August 2007. The family members were not aware of the accident policy at that time. After we came to know of the policy, we forwarded the claim form with attached details to the company. But the same was rejected with the reason of delay in claim intimation. We have approached the insurance regulator too, but so far have not received any reply from them. Kindly tell us what to do. 

SRIKRISHNA RAMTEKE 

Irda has directed insurance companies that they cannot reject claims on technical grounds, such as delay in intimation and submission of documents, particularly if the delay is due to unavoidable circumstances. You can register and track your complaint with Irda through their website 'igms.irda.gov.in'. The regulator will follow up with the insurer on your behalf. 

Multiple Policies 

Iam 42 years old and working in a private company. My monthly income is . 25,000 and I have three insurance policies from LIC and one in the name of my wife. Bima Kiran, sum insured . 1 lakh, premium . 1,064 for 30 years; Jeevan Mitra Triple Cover, sum insured . 1 lakh, premium . 5,710, for 20 years; Asha Deep, sum insured . 1 lakh, for 20 years, premium . 5,115; and Jeevan Saral, sum insured . 1.25 lakh premium . 6,064 for 20 years. Should I continue or surrender them? Should I take a pure term insurance? 

RAVINDER 

You should buy term insurance plan on your own life and also on the life of your wife if she is an earning member of the family but not on the life of your child. Check the surrender value before taking your decision to surrender your existing policies as you may lose a big portion of your policy cash value if you surrender the same before the maturity. You can consider various investment avenues like mutual funds, bank fixed deposits and small saving schemes based on your risk appetite and investment horizon to achieve your various financial goals.

Pankaj Mathpal 

CFP, Managing Director Optima Money Managers