Q: I had taken a fire policy for my household items from our insurer. Early this year I had to go to India for a knee surgery for four and half months. When I returned I found that my TV and some other electronic items were stolen. I informed the insurance company but they rejected my claim stating that it is because of long vacation. Why was the claim rejected? A: The standard fire policies issued with theft extension cover theft and any attempted theft. However, there are conditions which exclude theft if the building or any part of it is lent, let or sub-let, theft from property other than from the buildings. Even loss or damage caused by theft occurring while the buildings are unoccupied for more than 90 days is not covered by the policy. It seems your claim was rejected on the basis of last condition, as your residence was unoccupied for more than 90 days. However, in exceptional cases and by imposing certain conditions the insurance company may modify this condition and cover the risk, but you have to inform the insurance company and get their prior approval. Q: In one of your questions you have mentioned that as per CCHI the deductible applicable to the Medical Policy is 20% of the claim amount and subject to a maximum of SR100 each claim. We are planning to change our policy to CCHI conditions. We are interested to go in for fixed excess options such as SR10 or SR20 rather then 20% condition. Is it possible to get such covers in the market and will it be a violation of CCHI condition? A: CCHI has recommended a basic statutory cover for Medical Insurance in order to have a uniform coverage and understanding. The basic cover has sum insured at SR 250,000, repatriation expenses at SR10,000, deductible at 20% subject to a maximum of SR100 and semi-private room limit. You may not go below these limits and the coverage prescribed. They have also allowed insurance companies to make improvement to the basic cover. As part of this improvement, insurance companies are providing additional benefits to the basic cover like private room, suite, nil deductible, fixed deductible and overseas coverage etc. A majority of the insurance companies are willing to provide CCHI covers with fixed and/or nil deductibles. Even one or two companies may not be willing to provide this cover but you can get the cover of your requirement from the market. * Shujaath Ahmed Khan, an M.B.A., General Manager, Creative Associates is also a consultant and an expert in insurance, investments and real estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com __
