Modern living puts you at a great risk of falling prey to critical lifestyle diseases. Studies show that one out of every four individuals suffers from a non-communicable illness, such as cancer or cardiovascular issues. Regular exercise and healthy eating habits are beneficial in reducing the risk of such ailments. Nonetheless, age and hereditary reasons may result in you suffering from lifestyle-related disorders.

Treating such critical illnesses is expensive and may result in financial difficulties. You may argue that you already have health insurance coverage and the treatment costs are covered. However, this cover may be insufficient and availing critical illness insurance is recommended.

Procuring critical illness coverage when you are around 40 years is advisable. If you avail of the insurance at an early age, you will have to pay a lower premium. Moreover, it ensures you complete the waiting period, if any, before the risk of lifestyle diseases increases.

Working of critical illness plans

The critical illness plan is different from medi-claim policies. This type of health insurance for critical illness pays a lump sum amount up to the sum insured in case you are diagnosed with an ailment that is covered under the plan. The lump sum payout may be used to pay for treatment expenses, recovery costs, or repay debt.

A critical illness cover is a defined benefit plan because the payout is fixed and predefined. On the other hand, mediclaim is an indemnity policy that reimburses the expenses incurred towards treating an illness.

Before you buy critical illness insurance, here are five things you must consider.

1. Survival period

In most instances, the insurance companies include a survival period of 30 days. However, based on the type of illness, the survival period may be more than 30 days. This means that you must survive for at least 30 days from the date of diagnosis to claim the benefits under the critical illness cover. The survival period is also different from the waiting period imposed by insurers when you purchase a health insurance plan.

2. Covered illnesses

This is an important factor that you must consider before making a buying decision. Insurance companies cover between eight and 20 critical illnesses. Therefore, it is crucial that you research the different options to make an informed decision.

3. Built-in cover

The primary objective of health insurance for critical illness is to provide freedom from financial distress in case you are diagnosed with an ailment. However, several insurers offer additional built-in covers such as hospital cash, personal accident coverage, and complimentary health check-ups.

4. Pre-existing diseases

Most insurance companies cover pre-existing conditions at the end of the waiting period, which may be up to four years. There are some insurers that do not cover pre-existing conditions at all. Therefore, you need to carefully analyze and assess to check for coverage for pre-existing conditions.

5. Free look period

Insurance companies generally offer 15-days free look period. During this period, you may evaluate and reconsider your decision and cancel or modify the policy, if required.

Because critical illness insurance is a defined benefit plan, it does not reimburse hospitalization expenses. Therefore, having a regular health insurance policy is also recommended. You may buy critical illness as a standalone plan or as a rider with your existing health plan.

Several companies offer different types of critical illness plans. You must research and evaluate the various options to make an informed decision. It is crucial that you read the terms and conditions and understand the inclusions and exclusions to avoid any issues in the future.

Critical illnesses generally progress slowly and last for longer periods. Therefore, financially protect yourself and your loved ones with a critical illness plan.

People often sell their bike if they want to purchase a new model or go for a spacious car. Several life events can lead to this decision. Example – promotion, marriage, shifting cities, etc. However, parting ways with your old companion is never easy. After all, riders have an emotional bond with their bikes.

Having said that, practicality soon scores over the emotional aspect and the bike is sold to someone. But, what many people don’t know is that selling your bike and taking money for it is not the end of the road as far as the transfer process is concerned. You also need to transfer the ownership and insurance documents.

Do not procrastinate and complete this process as soon as possible. Also, do not think that it is not your responsibility to transfer documents, it is a shared responsibility between the buyer and the seller, and is beneficial for both. Read ahead to know why and how to go about those processes.

Transferring 2-Wheeler Ownership

We live in a world where things need to be legally documented. Thus, you need to transfer the ownership of your bike to comply with legal requirements. In order to do so, you will need the following documents.

• Bike’s registration certificate
• Taxation certificate
• Insurance policy
• Transfer of ownership form [Form 28]
• No Objection Certificate [Form 29]
• Transfer Application [Form 30]

The last three forms can usually be downloaded from your respective Regional Transport Office’s [RTO] website. You can also visit your nearest RTO branch to get the forms. Once this process is complete, you will formally part ways with your old bike.

Transferring 2 Wheeler Insurance

It is necessary to transfer 2 wheeler insurance in the buyer’s name to stay free of any legal liabilities arising out of the sold vehicle and to keep your No Claim Bonus active. While selling your bike, it might already be covered under a bike insurance policy. Since a bike insurance policy is for the bike and not just for the owner, it needs to be transferred in the new buyer’s name. Otherwise, the ownership documents [after transfer] will show the new buyer’s name but the insurance policy will have your name, leading to a legal issue in case of any unfortunate event involving the bike.

Unlike bike insurance, the No Claim Bonus offered by the insurer is for the owner and not for the bike. Thus, it will not be transferred with the bike but shall be retained by you. You can then coordinate with your new bike’s insurance provider to accommodate your previous No Claim Bonus while charging the insurance premium.

No Claim Bonus is a reward for not raising a claim during the policy period. It is a discount provided by the insurance company to you while you are about to renew your bike’s insurance policy. It increases every year for five years if you do not raise a claim during that five-year period. The discount can go up to 50%. Your No Claim Bonus is reset to zero if you raise a claim. After five years, it remains constant if there are no claims raised. Thus, do not miss out on this discount and ensure that you retain the No Claim Bonus while transferring your bike insurance policy in the new buyer’s name.

Two-wheeler Insurance Online

In case you are switching to a new model after selling your old bike, research a bit about new insurance companies in the market that offer convenient two-wheeler insurance policies at an affordable price. Nowadays, it has become extremely convenient to purchase two-wheeler insurance online. You do not have to visit the insurance company’s branch office and fill forms to avail an insurance policy for your two-wheeler. This might be a good time to switch your two-wheeler insurance provider.