Ask The Finapolis

Col. Sanjeev Govila (retd) of Hum Fauji Investments answers readers’ queries on investments, taxation and personal finance. Do you have a question you want answered? Email your question to [e-mail]

I have read reports which assign top marks to ICICI health insurance policy but would like your unbiased comment. I currently have a health insurance policy of National Insurance but the same is ranked very low in that report. Could you offer me some recommendations?

— Ramesh Vyas, Mumbai

There are many parameters while choosing a good health insurance provider. The most prominent of these are – diseases covered, branch and hospital network, insurance cover, premium charged, claim settlement, loading, out-patient department cover, room rent cap, sub-limits/ co-pay clauses, and other policy riders. Some of the above factors may be more important and others less important for you. Hence, while rankings help, it entirely depends on the parameters that fit you, the weightage given to each one of them in the overall ranking and whether it meets your requirements. The rankings may or may not be partially or fully in line with your requirements.

As far as ICICI Lombard’s health insurance is concerned, it is definitely a good insurer to go ahead with, provided your requirements are met. Hence, my suggestion is to take an insurance company, which has the kind of policy you wish to have, is affordable to you, has a good hospital network in your area where you reside and caters to the diseases that you wish to cover yourself against. The rankings provide a good starting point for your hunt for a good policy but cannot be the sole criteria for deciding it.

How much should my saving be to attain the following goals: Currently I am paying EMI of 26,500 and my personal expenses total 52,000 per month (including house expenses and travel)? My monthly salary is Rs 1,10,000. Could you also break-up the savings in terms of the following parameters? Education fund; Marriage Fund; Health Fund; Travel Fund; Retirement Fund.

— Neenad Kadam, Mumbai