Students can take overseas health insurance

Two years back, I took a health cover for my 25-year-old son. He went to the US in 2010 for higher studies and met with an accident there. When I claimed money for my son’s treatment, the insurance company declined to pay, saying payment can’t be made as the boy had met with an accident outside the country. While taking that health cover, I had gone through the fine prints of the policy and nothing of that sort was mentioned there. What should I do now?

Please read your policy document carefully. Health insurance policy issued in India will reimburse the hospitalisation expenses incurred within the country only. In your son’s case, if the hospitalisation expenses were incurred outside India (the US), the Indian insurance company will not entertain the claim. In this regard general insurance companies issue policies that are specially designed for students going out of India for further studies by name of “Student Travel Medical Insurance”. Such policy is issued in dollar denomination and applicable worldwide (or a specific region as chosen by you) for a duration of two years. It would be advisable to take such a policy for your son for the rest of his stay abroad.

I had applied for a credit card from the bank with which I have a savings account, but they have rejected my application. I am surprised by this. What could be the reasons?

Before granting a credit card or for that matter any credit facilities, the banks normally obtain a report of the applicant from a credit bureau. The probable reason for your bank’s refusal to give you credit card could be an adverse credit report, which you need to check out. There may be other reasons too — you may not fit into the income criteria for grant of a credit card. You are entitled to ask for the exact reasons why the bank rejected your application. Ask for a formal rejection letter and if the bank refuses then you can complain to the banking ombudsman. Your credit report can be obtained from CIBIL by visiting its website www.cibil.com/accesscredit.htm.

I will be taking a home loan from a financial institution for a tenure of 20 years. However in the sanction letter, it is mentioned that I will have to take insurance coverage for the loan amount from an insurance provider they have a tie-up with. Is this legal?

No financial institution can force you to compulsorily take insurance coverage and certainly not from a specific organisation. However, it is in your own interest that you take a term insurance plan so as to cover the amount outstanding on your loan account. This will ensure that your dependents are not burdened with the home loan should anything untoward happen to you.

I have a housing loan. The loan is in the name of my son and I am guarantor in this loan. Can I take reverse mortgage loan?

If the self-occupied property still has a loan outstanding on it, you will not be able to get a reverse mortgage loan against it. It seems the house is owned by your son and not by you. Only a senior citizen, who is owner of the house can take a reverse mortgage loan. If however you have your own home where you are also staying you can look for a reverse mortgage loan if you are a senior citizen.

I signed as guarantor for my friend for his car loan and he defaulted on the last EMI. Recently I applied for personal loan with a reputed foreign bank and they informed me that my CIBIL record is bad. How can I rectify this situation?
You cannot rectify it — the default has already happened. First prevail upon your friend to pay off the defaulted loan amount. Henceforth make sure that your friend does not default on his payments since it will affect you also.