Experts often say, installing security devices helps cut auto premiums. Where will I get such devices and by how much will my auto premium come down?
According to the Insurance Regulatory and Development Authority norms, insurers offer discounts in premium in auto insurance if the policyholder has installed security devices approved by the Automobile Research Association of India. The devices are electronic anti-theft locks and immobilisers. Such devices are available with dealers and in the local car accessory shops. The discount on vehicles installed with such devices is to the tune of 2.5 per cent of the own damage premium subject to a maximum of Rs 500 in the auto insurance premium.

What kind of sub-limits are mentioned in a health policy? Is it compulsory to buy policies with sub-limits on hospital rooms or are there options?
When a room rent is capped or cost of a surgical treatment is capped to a certain amount, it is known as sub-limit. For instance, the room rent in a hospital may be Rs 7,000 a day. But if your health insurance policy mentions room rent payable is one per cent of the sum insured or Rs 5,000 per day, whichever is lower, it means even though you incurred an expense of Rs 7,000 a day, you will be paid a maximum of only Rs 5,000 due to the sub-limit.

Treatment costs for certain surgeries are also capped. For example, cataract or kidney transplants are capped to a certain amount. Therefore, if the customer incurs more than the eligible amount, he will be paid only up to the sum insured limit defined. Most policies in the market come with sub-limits and only a few do not carry these. It’s recommended the customer understands policy details and benefits to ensure the health policy matches their needs.

The writer is the MD and CEO of Tata AIG General Insurance.