Seller must transfer vehicle, insurance to new owner

My son was born with slight deformity in his legs and has to undergo physiotherapy every week. I have a family health insurance policy? Can I claim the money for the physiotherapy in the insurance?
- S Meera

Any external congenital ailments are not covered by health insurance policies. Having said this, you should check with the insurer for the exclusions and get your son covered for any other ailments which can be claimed under the health insurance policy.

I sold my Hyundai and bought an SUV. The agent made me sign all the required RTO forms. But I still get messages about renewing my motor policy. What should I do if the car is still registered in my name? Does this mean that if there is an accident I will be held responsible?
-Rajbir Singh

As per the recent verdict by the Supreme Court, it is the seller's responsibility to ensure transfer of the vehicle and the insurance in favour of the new owner. Since, you are still receiving SMS's from the insurance company; this could indicate two possible scenarios:

1. The policy is not effectively transferred in favour of the new owner, or

2. The contact details of the new owner have not been updated in the policy, in-spite of being transferred

So, in case of an accident you will be held responsible for any compensation claims or legal liability arising out of Accident or Illegal use of your ex-vehicle, despite it being used by someone else.

Therefore, you must, immediately file a copy of transfer forms with the RTO and also ensure notify the insurance company of the sale of your vehicle and to transfer the policy in the name of the new owner.

My house in my village is prone to flooding in monsoon. What kind of insurance can I take to protect it from damage? How much will the premium be?
- Sridhar R

In unfortunate situations like flood or inundation a standard fire and special perils insurance policy is very handy to manage the financial losses incurred. The policy covers damages to the physical structure of the building from risks against fire, lightning, explosion, implosion, flood, inundation, storm, riot, strike and earthquake.

In addition, you are also provided the option for the burglary, theft and terrorism which cover your house and its contents like furniture, bicycles, television, refrigerators, your wallets and appliances and also your pet dog. With this added cover the insurance company will pay the rent in case you have to move to an alternative accommodation and also pay the cost of relocating the content in your house to the alternative accommodation as well as restoring them back to original home.

If I buy a new car before my motor insurance policy expires can I transfer it to my new car?
-Shyama Karnik

Yes, the motor insurance policy can be transferred to your new car as you can continue the benefits of the No Claim Bonus (NCB) on your existing policy. You can transfer your existing car's Motor Insurance with the Insurance Company, for which you will be charged a differential premium in lieu of increased value of the new vehicle, i.e. the Insured Declared Value (IDV).

However, if you choose to switch to another Insurer for the insurance of your new car, you can avail the NCB which you have on your existing Motor Insurance policy for the old car. Simply apply for an NCB certificate from your existing insurance company, which will be valid for a period of 3 years, and your new Insurer will offer the NCB discount on the premium for your new car basis this certificate.

I have a second car which I sometimes give on hire. Since different drivers use it, if there is an accident can I be denied insurance?
- Hitesh Talwar

According to the exceptions mention in the motor policy, the insurance company will not be liable for any accidental damage or liability if the vehicle is being used otherwise than in accordance with the "Limitations as to use", such as hire and reward. Hence, if your car meets with an accident, the claim filed will be rejected on these grounds. However, if you are giving your car on hire or rent, then you should get your vehicle registered as commercial vehicle with the RTO and get an insurance policy for a taxi.

Anurag Rastogi, Member of Executive Management, HDFC ERGO General Insurance

Send your queries related to general insurance to personalfinance@dnaindia.net.