Queries
Ramesh Kumar, Bhopal
My father renewed his fixed
deposit with a cooperative
bank last year in which I was
the nominee. Now, with my
father’s demise, the bank is
asking us to wait for the FD
tenure to get over before
the money can be paid. Is
this correct?
The bank cannot deny you the
proceedings of the fixed deposit
as you are the nominee. Unless
there is a Will left behind by your
father clearly stating that the
maturity proceedings should
go to someone other than you.
As the account needs to be
closed, you need to submit a
copy of death certificate along
Deepak Rawat, Dehradun
I want to sell my car, which
was insured only last month.
Can I ask the insurance
company to refund me
the premium amount for
the remaining time? Is the
policy transferable and can
I take the premium amount
from the new owner?
Generally, while selling a car it
is a good practice to cancel the
insurance policy and transfer the No
Claim Bonus (NCB) to another car
that a seller may be purchasing. The
NCB belongs to the car owner and
not to the car, therefore the NCB
is not transferable. For cancelling
your car insurance policy, you may
request your insurance company
in writing along with a filled copy
of Form 29 and Form 30 and notify
the Regional Transport Authority
(RTO) with respect to the change
in the ownership of the car. Further,
the insurance company may also
ask you for the submission of the
original policy certificate and proof
of delivery of the vehicle to the new
owner. The NCB certificate issued
14
with a letter stating for the
closure of the account, and the
nominee’s photo ID and proof of
address. Although most banks
don’t charge exit penalty on
the deposit, you need to check
and ask the bank for the same.
Further, these days most banks are asked by RBI to
incorporate a clause in account
opening form stating that during
the death of the depositor,
premature termination would
be allowed.
by the insurance company is valid
for three years and you can utilise it
for insuring your new car. However,
in case you wish to transfer the car
insurance to the new owner, you may
factor the same in your sales price.
But, since the insurance contract
is between the insurer and you,
the same cannot be automatically
transferred. As per the Section 157
(2) of the Motor Vehicles Act, the
new car owner needs to apply to the
insurance company within 14 days of
car purchase for the transfer of the
car insurance policy in his name. `5 lakh mediclaim policy and your
first claim comes for `1 lakh, you
still have `4 lakh in your account
to utilise in that year and if you are
through with your sum insured, it
will automatically refill on renewal.
Prashant Kapoor, CFP
Kumar Anshuman, Indore
My wife has a health policy.
She recently underwent an
operation and made a claim
for it. Now, she needs to go
for another operation. Can
she make another claim?
Mediclaim is an indemnity policy,
which means it will reimburse every
amount to maximum limit of your
insurance cover i.e. you can claim
multiple times, subject to your sum
insured. For example, if you have a
Outlook Money December 2017 www.outlookmoney.com
Himali Patel, Senior
Correspondent, Outlook Money
Puneet Oberoi, Founder, Finadwise
Kunal Jain, Delhi
I am 30 years old and my
insurance agent advised me
to buy accident insurance
instead of a term policy on
the premise that my age
makes it much less likely
that I would die of an illness
than an accident. He said
that accident insurance is
cheaper than term covers. Is
his logic tenable?
Below the age of 50 years taking
term insurance with accidental
cover is suggested. For example,
if your yearly income is `10 lakh
then you can preferably take
10x insurance, that is `10 lakh
multiplied by 10 will equal to `1
crore term insurance with `1 crore
accidental benefit. Premium for this
additional `1 crore is very less and