Category: Insurance

Insuarance…do you need it?

Today I signed up for a personal accident insurance plan. I received ate sales call insurance soon after I received my Citibank card. Sir, I am calling from CitiFinancial services, would you be interested in an insurance plan? and like a typical Indian I said no, to the offer. The sales lady kept calling me for a period of two days and finally I decided to take up the insurance.

I realized that most of the insurance companies get their database from their credit card division or a telecom service provider, the sales reps give cold calls and offer you insurance (this is true for personal loans and credit cards too) over the phone. Most of us are reluctant to share personal information over the phone and to take up the service without knowing the Terms and Conditions.

Insurance still in India has to be picked up as a necessity, till today most of the Indians are unaware of the type of insurance is being provided by the insurance companies and what kind of insurance cover they need. Those who have taken it, don’t even know what kind of insurance cover they need, they took it up because it was offered to them.

Rs four hundred and forty eight for one year for a personal accident cover of Rs two lakh is a good deal. Last time I had an accident a very severe one in 2001, I was in a debt of one lakh fifty thousand, learning from my previous mistakes, I went for it. Now I am planning to have a life insurance too. I am still researching over it under the following heads what kind of life insurance to take an endowment plan or a term plan. Whether to include retirement plans with my life insurance? Etc. I will soon come up with a post when I will take one. Till then ask a question to yourself do you need an insurance cover?

Travel Insurance do you need one?

Almost 80% of the Indians traveling abroad don’t take travel insurance. The majority of them avoid it just because they want to save money as they already have spent huge chunks of money for the air tickets and hotel reservations. The other reason is that most of them don’t know about it (they are too excited to go abroad!)
Stay in a state run hospital in US and you pay almost 4 times that you pay in India. If it’s a major concern like surgery or a transplant, then you pay at least 10 times that you pay in India. Thus a small illness can spoil your holiday plans (not due to the illness but due to financial crisis) abroad.
This answers the Important question that, why we need a travel Insurance? Not to ruin the hard earned holiday, as simple as that.Today travel insurance comes with a comprehensive plan, and covers many travel related emergencies. The policies today are customized for different segments of customers and cater differently to students, business travelers and tourists. The policies can be customized in terms of duration, and can be matched with the travel schedule.
The policy broadly covers medical expense, loss of baggage, trip delay/cancellation, hijack distress allowance etc.

  • For Students: Though many universities provide insurance but it is generally a medical cover. The travel insurance can provide for reimbursement for tuition fee in case of discontinuance due to sickness, bail bond cover etc.
  • For Business men: Insurance are customized for multiple destinations in different countries.
  • For Tourists: Cover for Loss of baggage, lost passport, emergency cash etc are provided.

So next time you travel, check out for a travel insurance in case you require it due to some unexpected occurrence.