Zen Vichaar

    With the cost of health insurance rising consistently every year, a health insurance policy has become mandatory. However, health insurance comes with its own set of terms and conditions and an important feature of this policy is the moratorium period.   Moratorium period is a term in a health insurance policy which indicates the time period where the policyholder will not be covered for any pre-existing illness in spite of having a health insurance policy. This is also known as the waiting period.   Let us look at the moratorium period in more detail in this blog.   How does the moratorium period work?   When you decide to buy a health insurance policy, you will be required to fill a questionnaire by the insurance company where you will have to disclose information about any history of illnesses or medical conditions you may have. If any of your responses fall under the category of pre-existing illness, the insurer will ask you to wait for the duration of the moratorium p

  A liberalization clause is a clause that, at no additional cost or premium, automatically applies any favourable modifications to the policy wording to the insured at any time throughout the policy term. Although they are more frequently found in property insurance wordings, this kind of clause is now being increasingly used in liability insurance plans. Many insurers have different policy wordings to suit the particular client requirements. The variance in policy wordings might be with regard to lower percentage of deductibles, coverage’s in terms of extension, viz., lower percentage of major shareholding exclusion, higher level of auto inclusion of new subsidiaries, etc.,. Higher level of customization of wordings will normally follow higher limits of indemnity. Though higher customization normally entails higher costs, it need not necessarily result so in all cases.       The liberalization clause is advantageous to both the insured and the insurance companies. The insured g

  Mitigation costs in Directors and Officers (D&O) insurance policies are expenses incurred to prevent or reduce the severity of potential losses that could be covered by the policy. The costs of mitigation can be from claims related to wrongful acts such as breach of fiduciary duty, Errors and Omissions, etc., These costs help avoid larger claims and are related to proactive actions taken by the insured. Understanding and managing these costs are crucial for both insurers and policyholders. The terms and conditions of this extension with regard to its quantum, insurer consent, exigencies of the case, etc., are important factors.     Let us learn more about costs of mitigation in this blog. Key aspects of mitigation costs in D&O insurance policies Definition and Scope : Mitigation Costs : These are costs incurred to prevent, mitigate, or minimize a claim that could be covered under the D&O policy. They can include legal fees, consultant fees, and other