I was sanctioned a house mortgage from a nationalized financial institution lately. Nonetheless, the sanction letter states that it’s obligatory for me to take property insurance coverage. Has the Reserve Financial institution of India (RBI) specified any guidelines making property insurance coverage obligatory?
— Title withheld on request
RBI or the insurance coverage regulator don’t mandate that you simply purchase insurance coverage for the aim of availing of a mortgage. Additional, banks can not drive you to purchase insurance coverage from their really useful insurers solely. Nonetheless, it’s a basic apply for banks to ask for property and life insurance coverage when extending a house mortgage. That is important to guard their monetary curiosity within the mortgaged property and the lifetime of the borrower. A number of banks present an exemption to purchasing insurance coverage topic to charging the next price of curiosity. That is to compensate for the chance of loss that they’d bear in case the home will get broken or the borrower dies.
Nonetheless, I’d advocate you to purchase the property insurance coverage, as it’s in your monetary curiosity. House insurance coverage is cheap and would compensate you in case your property will get broken as a consequence of hearth or pure catastrophes. You possibly can nonetheless select to purchase this insurance coverage from an organization of your alternative, and never essentially purchase it from the financial institution. The price of residence insurance coverage is round ₹3,500 for a home that prices ₹1 crore to assemble.
My spouse is 50 & I’m 60. We have now two medical insurance insurance policies. Mediclaim (base) from New India Insurance coverage for greater than 10 years and top-up from HDFC for greater than 5 years. Ought to i shift my mediclaim coverage to another insurance coverage firm to avail of cashless facility.
— Anand Mahajani
There ought to be a robust purpose when you think about porting your medical insurance from one insurer to a different. All insurers present cashless facility. Nonetheless, the community of hospitals do range by insurer. In case your most popular hospitals usually are not within the community of your insurer, then you possibly can take into account porting your plan. One more reason to judge porting could be restrictions in your present plan. These restrictions would come with room hire capping, co-pay or disease-wise restrictions. In case there are such restrictions in your plan, you possibly can port to a plan that means that you can make full declare within the coverage.
There may be restricted draw back in porting, besides the executive trouble. Some insurers could insist on a medical check-up earlier than agreeing to port your plan. Additional, you need to be certain that within the new plan, no further ready intervals have been launched. Some insurers would permit porting of all the sum assured i.e, the bottom sum assured and the cumulative bonus.
Abhishek Bondia is principal officer and managing director, SecureNow.in.
Supply: Live Mint