Life is replete with unexpected twists and turns. While you have no control over the circumstances, you can at least lay a safety net for your finances in the form of insurance. Thanks to general insurance policies, you can literally get all your precious possessions and rule out the possibilities of potential loss. However, despite the various benefits offered by insurance policies, many people end up thinking twice before buying insurance policies. This is mainly due to the existence of several myths that surround general insurance policies such as health, home, and motor insurance. In this article, we have busted some of the most common myths that mislead general insurance buyers: -
Myth 1: - Transfer of Policy Leads to Loss of NCB
This is perhaps the most common myth related to insurance policies. If you are not happy with your current insurance provider and you want to switch to another insurance companies, you can do so without losing out on the NCB benefits. The NCB or No Claim Bonus can be retained even if you switch to another insurance provider, provided you renew it within 90 days of the expiry of your policy.
Myth 2: - Motor Insurance Only Covers Accidents
Contrary to common belief, a motor insurance policy covers much more than just accidents. For eg. A comprehensive car insurance online or offline, will cover you from damages caused due to natural calamities such as earthquakes, lightning, floods, landslides etc. Besides natural disasters, it also covers damages caused due to man-made disasters such as damage during transit, burglary, theft, riots, terrorist activity etc.
Myth 3: - Your Landlord’s Insurance Policy Will Cover Your Belongings
This is completely untrue. Your landlord’s home insurance will only cover damage to the building structure. Hence any damage caused to your personal property while living in a rented space will not be covered. On the other hand, as a tenant, you can always get your personal belongings insured under a renter’s insurance policy.
Myth 4: - Health Insurance Coverage Begins from Day 1
If you thought you’ll be covered since day 1 of buying a health insurance policy, you are wrong. Most of the health insurance policies have a waiting period of at least 30 days before the benefits of the policy can commence. Hence any claims made during the waiting period will not be entertained.
Myth 5: - The Young & Healthy Don’t Need Health Insurance
This myth can land you in serious trouble. In fact, if you are young at healthy, it is the perfect time for you to buy health insurance. Generally, health insurance premiums are lower when you are fit. Besides the benefit of low premium, you will be more likely to claim additional benefits such as no claim bonus.