Insurance FAQ Hub 50+ Most Asked Questions Answered

IRDAI recommends minimum ₹5 Lakh. For metro cities, aim for ₹10-25 Lakh. Rule of thumb: coverage should be at least 50% of your annual income.

Initial waiting period: 30 days. Pre-existing disease (PED): 1-4 years (IRDAI caps at max 3 years). Specific diseases (cataract, hernia): 1-2 years.

Yes. Most insurers cover PEDs after a waiting period of 1-4 years. IRDAI has capped the maximum PED waiting period at 3 years. Always declare your conditions honestly.

Cashless means the insurer pays the hospital directly — you don't pay upfront. IRDAI mandates 1-hour approval for emergency cashless and 3-hour discharge authorization.

Yes, at minimum Third-Party (TP) insurance is mandatory under the Motor Vehicles Act. Driving without it attracts a fine of ₹2,000 and/or imprisonment up to 3 months.

TP covers damage/injury to others — mandatory, cheaper, limited. Comprehensive = TP + damage to your own vehicle. Always prefer comprehensive for expensive vehicles.

Zero Dep means the insurer pays full cost of parts replacement without deducting depreciation. Available for vehicles up to 5-7 years. Must-have for new cars.

No Claim Bonus (NCB) is a discount on OD premium for claim-free years: 20% after 1 year, up to 50% after 5+ years. NCB belongs to you, not the vehicle.

Financial experts recommend 10-15 times your annual income. If you earn ₹10 Lakh/year, aim for ₹1-1.5 crore. Also factor in outstanding loans and children's education.

Buy term insurance for pure protection — ₹1 crore cover for ₹800/month. Endowment gives only ₹1 crore for ₹15,000+/month with 4-6% returns.

Life insurance death claims are tax-free under Section 10(10D) if premium doesn't exceed 10% of sum assured. Maturity proceeds are also tax-free under the same conditions.

Riders are optional add-ons: Critical Illness (lump sum on diagnosis), Accidental Death Benefit (extra payout), Waiver of Premium. Riders cost ₹200-2,000/year extra.

Cashless: Inform insurer within 24-48 hours → Show health card at network hospital → Get treated → Insurer pays directly. Reimbursement: Pay hospital → Collect bills → Submit claim form within 30 days → Get reimbursed in 7-30 days.

Top 5 reasons: (1) Non-disclosure of pre-existing diseases, (2) Claims during waiting period, (3) Policy lapsed, (4) Treatment not covered, (5) Incomplete documentation.

IRDAI mandates: Cashless health — 1-2 hours for approval, 7 days for settlement. Reimbursement — within 30 days. Motor claims — within 30 days of surveyor report.

Yes. Steps: (1) Write to insurer's grievance cell, (2) Approach IRDAI Bima Bharosa, (3) File complaint with Insurance Ombudsman (free), (4) Consumer forum as last resort.

Section 80D: ₹25,000 for self/family premium (₹50,000 for senior citizens). Additional ₹25,000 for parents' premium (₹50,000 if parents are senior citizens). Maximum total deduction: ₹75,000/year.

Yes! Under Section 80EEB, you can claim deduction up to ₹1,50,000 on interest paid on loan for EV purchase. This includes EV insurance premium as part of the loan cost.

Section 80C: Life insurance premium up to ₹1,50,000/year is deductible. Death claims are tax-free under Section 10(10D) if premium doesn't exceed 10% of sum assured.

IRDAI is the insurance regulator in India. It protects you by: Setting solvency ratio requirements, mandating grievance redressal, regulating TP motor insurance rates, running the Insurance Ombudsman scheme.

A free, independent dispute resolution body created by IRDAI. File online at ciio.co.in. Resolution within 3 months. No lawyer needed. There are 17 Ombudsman offices across India.

Key rights: (1) No age limit for health insurance, (2) 1-hour cashless approval, (3) 30-day free-look period, (4) Lifelong renewability, (5) Portability within 30 days, (6) Interest on delayed claims, (7) Max 3-year PED waiting period.