We believe in Vasudhaiva Kutumbakam, the old Sanskrit phrase meaning the world is one family. The technological advancements of the 21st century have truly made this true. We are living in a very interconnected world. Every place and every person is today well connected to each other, digitally and even physically with linkages to the remotest places on the earth. All this time we enjoyed this connectivity, accessibility, the interdependency of business and all the comforts of the modern world. However, we are now shocked and quick to realise the perishability of this new world.

The past decade has seen nature responding back to the unadulterated infiltration on it. We have seen the impacts of climate change manifest itself in many forms. Millions are being already impacted and signs are there that things will only worsen in the coming decades. Just in the past few months, we have seen earthquakes, cyclones, deadly fires and of course the world-changing pandemic. Needless to say, Covid-19 is a game-changer for everyone. It will change how we work, socialise and perhaps also respect nature. One industry has been at the forefront at helping people manage the risk emanating from uncertainty and it is insurance. While there are many forms of insurance which help different stakeholders to manage risks, we limit our focus to only personal insurance in our discussion.

At a personal level, we are concerned only with the direct risks faced by us. Covid-19 has surely made people realise the importance of having adequate health insurance. However, health is just one part of our vulnerability as humans. Let us first fully understand these vulnerabilities or risks of our lives in the form of 3 deadly Ds.

• Death

• Disease

• Disability

The above 3 D’s are pretty obvious and any common person can imagine the impact of any one of them happening on our lives. Death, especially of any earning member in a family is disastrous in all manners, financially the most. 'Disease' is something which has perhaps become very common today given the lifestyle and food habits we are following today. And without adequate support from the government to the middle and the aspirational class of the population, getting quality treatment is getting damn expensive. But what if you survive any unfortunate incident but … Disability has huge ramifications on our lives which many of us haven’t visualised. It may severely hamper our earning ability for life and add to ongoing medical costs. Have we accounted for them?

To this shortlist, we can do well to further add another two Ds – Damages and Dependency. Damages would mean damages/losses to movable or immovable properties or assets. This can be your home, shop, factory, godowns, vehicle, crops, cattle and so on. Again very self-explanatory. They are prone to human acts, accidents and also acts of the ‘god’ or natural calamities, which are getting a bit common now.

Dependency is a new word for many but perhaps the only one on the list which is almost certain and very worrying. Dependency comes from the risk of being alone and/or from longevity or living longer. It is something which we cannot really buy an ‘insurance’ against. The idea of being dependent on others for care and treatment and even for living our daily lives may be frightening for many of us today. The dynamics of the modern world and how a modern nuclear family chooses to live, in contrast to our previous generation, is something we will have to think about. Now imagine doing so without adequate resources or wealth at your disposal. That puts us in a precarious position. Perhaps the Covid-19 may have a positive impact on the same. If earning opportunities are available closer to home, many immigrants would prefer to work from home or closer to home. We will have to wait and see. But the safest way out of it to create a sizable, retirement corpus. That would be also enough for the rest of your life at a retirement home of your choice if needed.

So where are we today? We have only made ourselves more vulnerable in this modern world. We haven’t evolved as humans. All our technological advancements in all fields lay worthless as an unknown enemy made the most evolved and most powerful species, us, realise our weakness and vulnerability. It is not the end of the world though, and we will survive and we will again prosper. However, things will not be the same again. What we need to do is to do a recheck and value the most important thing in our lives - our health, both physical and mental. We need to take care of it. Financial protection in the form of insurance is no longer in a debate. Having adequate life, health, personal accident and critical illness insurance should be your next ‘To Do’ task. There are enough digital ways of buying the same at the comfort of your home. Just call your insurance advisor for a comprehensive review of your insurance portfolio. It's high time you do it.

To most of us, food, clothing, and shelter were the norms for survival. Then came technology and connectivity in the form of mobile phones. These are now indicators of our survival and safety. However, in addition to the real, touch, and feel type of safety indicators, we need the security of health, both physical and financial type. While physical health can be a subjective discussion as to the right food, adequate exercise, and healthy lifestyles, financial health is rather easy to discuss.

We save to invest for our future goals in various instruments according to the asset allocation as advised, which gives us financial security. However, mere investing will not suffice. Protecting the investment is equally important. We need to also protect our finances and future goals from unexpected expenses.

While certain expenses can be avoided, reduced, or delayed, expenses like sudden hospitalization due to injury or sickness can’t be. On top of that, these expenses are sudden, painful, and unavoidable. Accidental injuries can happen anywhere, anytime to anyone, and now the health dangers have also started to behave similarly. The current situation prevailing in the entire world for the last few months has intensified this second probability stronger than the first. Almost anyone can get infected and if not diagnosed soon, will have to get treated in a hospital. These expenses rapidly start our eroding bank balance, investments, and sometimes even credit scores. Luckily, we have the option to opt for health insurance to take care of such situations.

What do most people understand health insurance as? A common misnomer is to pay INR 15,000 to 25,000 to some insurance companies for the insurance to avail the tax benefit. Usually, in this amount, a family of 4 may get a health cover for approximately INR 300,000 to 500,000. Unfortunately, such cover is not sufficient in today's time. A hospitalization for major surgery will cost much more than this amount. In fact, the treatment of COVID for a week will cost you more than a few lakh rupees.

Therefore, taking health insurance for the nominal amount or merely for tax benefit will not help much. Since the hospital bills are steep, non-negotiable, and can not be delayed, borrowing and withdrawing from investments are the immediate consequences. A rather serious long term impact has forced a compromise on financial goals, particularly child's education and marriage or even our retirement goals. Such goals need long term planning with total discipline, as they are also non-delayable and not negotiable.

Moreover, the financial pain doesn’t stop on the day of discharge. In case of an accident injury, even after discharge from the hospital, a few weeks or months of inactivity will stop the income during that period, while the expenses would keep on mounting. Only accident insurance with loss of income feature can come to the rescue. Add accident insurance with loss of income feature, at least for the earning member of the family.

Regular evaluating and upgrading of insurance every few years is highly advisable. We keep on upgrading our lifestyle right? We upgrade our phones, laptops, curtains, bikes, and cars every few years in the name of a better life. Time has come to upgrade our health insurance for a better financial life. The importance of health & Accident insurance can be at best explained as ‘Food, clothing, shelter, mobile phone, and insurance are the basic requirements of life’.

It has been universally believed that life is, now, going to be completely changed and taking new forms of living it in a different way. Perceptions and mindset of people have changed drastically to develop more practical approaches towards life. Health insurance has now become a primary requirement with the phenomenal increase in deadly disease and advanced medical procedure.

Till now, we have been depending either on the Government or on friends and relatives for our medical emergencies. But we have witnessed a number of cases wherein friends and relatives avoid visiting the hospital to see the patient under the threat of being asked for financial help. “ Sukh ke sab sathi, dukh mein na koi”

The time has come to retrospect and reallocate our resources as per the basic theory of need hierarchy. We have been wasting lots of resources on unnecessary elements but ignoring the basic requirements like health insurance. If we feel that health insurance premium is very hefty and disturbing our budget, then we must try the illness.

Health Insurance today comes with various add on features and depending upon the budget of the customer or his lifestyle, various options are available. There are 24 Non-Life Insurance Companies and 7 stand-alone health insurance companies in India who offer health plans. Choices are many, features are many but important is to buy before any eventuality comes your way.

Motor Insurance is generally a combination of Third Party Liability policy & Owner’s damage Cover (OD). The Motor Vehicles Act was passed in the year 1988 and regulates almost all aspects of road transport vehicles, including having a mandatory Vehicle Insurance cover under section 130 (177) Motor Vehicle act. It means that the vehicle owner should have the mandatory Third Party Liability policy. It is very much recommended to take a comprehensive policy so that you can claim for any expenses incurred on repairs due to any external accident or loss of your vehicle.

At the time of renewal, Car owners might do the mistakes like considering only Cheaper Premium and overlooking the other important features like value of the vehicle (IDV) and the additional covers available (Zero depreciation, Return to Invoice, Road side assistance, Engine Protect Cover etc.) And this is reflected in the casual attitude of the customers while buying a motor vehicle policy. Hence it is critical to create awareness & education in understanding the benefits & their importance while purchasing a Motor vehicle Insurance policy .

Critical points to be remembered while renewing Your Motor Insurance policy.

1) Insured Declared Value (IDV)

IDV is Insurance Value of Your Vehicle after the depreciation (10 to 15%) from the previous year. Higher the IDV, higher will be the coverage and beneficial to the Owner of the vehicle.

2) No Claim Bonus (NCB)

As the name suggests, NCB is the reward offered by the Insurer for driving the vehicle safely and not incurring any claims. Typically the NCB ranges from 20% to 50% depending upon the age and the past claim experience of the vehicle.

NCB is owned by the Policy holder of the vehicle and can be carried forward / transfer to the new vehicle under his/her ownership..

3) Hypothecation

 Hypothecation means offering an asset as collateral security to the lender. Herein, the ownership lies with a lender and the borrower enjoys the possession. In the case of default by the borrower, the lender can exercise his ownership rights to seize the asset. If You have repaid the vehicle loan, It is important for You to remove the hypothecation clause from Your policy document.

4) Zero Depreciation Policy : Zero Dep policies are also called as Bumper to Bumper or Nil Depreciation policies. It is one of the crucial and important Add-on cover offered under Motor Insurance Policy.

In Zero Dep policies, 100% of the claimed amount is payable. Where as under the comprehensive policy, the claim is payable as follows:

Zero depreciation is offered only till 5 years of the vehicle age. Though some Insurers offer it till 7th year.

5) Other Add ons: Usually following Add-on benefits are offered by the insurers:

i) Consumables Cover

Usually consumables like oil, nuts and bolts etc. are not covered under insurance. With this add on, you can claim the consumables however small they might be. It covers expenses towards consumables which are unfit for further use, arising out of damage due to an accident.

ii) Return to Invoice

When the Vehicle is damaged beyond repairs in an accident, Insurance companies will refund the complete value/amount mentioned on the invoice.

iii) Roadside Assistance

This benefit assists you in situations where you need help on the road with your car. The service offers many benefits from getting your set of wheels fixed on the spot to towing or taxi service to help you reach your destination. Roadside Assistance is usually provided to anyone who is stranded anywhere within the radius of 500km from the middle of the city.

iv) Engine Protection Cover

Any damage caused, from leakage of the lubricating oil to water entering the engine due to natural calamities such as floods, that can cause permanent engine damage is covered under this add on benefit.

v) Tyre Protection Cover: This Add On may ideally cover following, though conditions may differ from company to company:

• Cost of replacing the damaged tyre with a new one.

• Labour charges toward removing, refitting and rebalancing of the tyre.

• Accidental loss or damage to tyre and tubes which would in turn make the tyre unfit for use. This includes scenarios such as bulge in tyre, bursting of tyre and damage/cut to the tyre.

vi) Passenger Cover

This cover ensures the protection of your family and loved ones. For, god forbid, you meet with an accident where you and your near and dear are injured, this cover will ensure that, apart from you, your beloved are covered too and will receive all the necessary financial support till they recuperate.

And finally don’t wait till last date of the due date. Because if You miss the due date, then inspection of the vehicle is mandatory. But if due to any unforeseen situation, you were unable to renew your policy on time then make sure to renew it within 90 days of its expiry to take advantage of your accumulated NCB. Beyond 90 days of expiry,NCB will lapse.

Always Pay attention in case of ownership transfer cases: If you have bought a used car/vehicle from someone than make sure to get the insurance policy transferred on the new policy owners name as soon as the RTO formalities are over and new ownership has been created in Registration Certificate. Failing to change the ownership in insurance policy will result in rejection of claims.

Know about compulsory & Voluntary Deductibles: Compulsory Deductible is also known as Compulsory Excess in motor insurance. It is the part of the claim amount which you will have to bear out of your pocket. For cars not exceeding 1500 cc, the amount is fixed as Rs. 1,000. If the engine potential is more than 1500 cc, the compulsory deduction is Rs. 2000

You can also reduce the premium if you opt for an additional voluntary deductible.