Personal Lines Coverages
Scope
This domain covers motor, health, personal accident, home and travel insurance bought by individuals. Questions test sum insured mechanics, statutory minimums, waiting periods and add-on conditions.
Core rules
- Motor: own-damage cover is on the IDV (manufacturer's listed price less depreciation by vehicle age). Third-party liability is compulsory - unlimited for death/bodily injury, ₹7.5 lakh for property damage, ₹15 lakh owner-driver personal accident. No-claim bonus on OD premium: 20%, 25%, 35%, 45%, 50% for 1–5 consecutive claim-free years; a claim resets accrual. Add-ons include zero depreciation, engine protect, consumables, and return to invoice.
- Health: indemnity policies pay actual hospitalisation costs up to sum insured; defined-benefit policies pay fixed amounts. Core rules: 30-day initial waiting period, pre-existing disease waiting period capped at 48 months, a moratorium of 60 months after which claims (except fraud or permanent exclusions) cannot be contested, and portability with accrued waiting-period credit.
- Personal accident: accidental, external, visible, violent injury causing death, permanent total disablement (100% of capital sum insured), permanent partial disablement (per table) or temporary total disablement (weekly benefit).
- Home and travel policies protect contents, buildings, baggage and medical emergencies abroad.
Worked example
An insured has 3 claim-free years (35% NCB) on OD premium of ₹12,000. She makes a partial-own-damage claim in year 4. Reasoning. The claim is paid, but at renewal the NCB resets to 0% because the accrual breaks; she must rebuild from 20% after the next claim-free year. Third-party premium is unaffected. If only TP liability had arisen, the OD NCB would have continued.
Traps
Applying NCB to the TP premium. Assuming personal accident cover for all occupants is automatic. Believing portability cancels the pre-existing disease waiting period - it only carries the credit forward.