Knowing ≠ Understanding

An American engineer , Destin Sandlin, who did an experiment with a bicycle . The handle bars are rigged to turn in reverse. If you turn the handles to the right, the front wheel goes left and when you turn the handles to the left, the wheel turns to the right.

Check out the below video to know what happened next 


This experiment is a great example of cognitive bias . A human mind is full of biases which affects his decision making process and hence the outcome.

We experienced loss aversion bias during March 20 sell-off where investors dumped the equity to avoid further losses.  Investors then tend to loose the focus of objective or goal for which investment was made and succumb to different biases .

Knowing the equity or for that matter any asset class  & the return patterns by doing all data analysis may not translate into a positive investment outcome .You have to be aware of your own cognitive bias and its potential influence on your behaviour in order to achieve the financial outcome that you desire .

Hence knowing is not equal to understanding & desired outcome .

Keep unlearning and learning !! Happy Investing !!!

Covid Kavach Insurance Policy

IRDAI had recently mandated insurance companies to offer short-term health plans that will cover hospitalisation expenses related to the treatment of COVID-19 . This will help individuals to buy specific health cover for meeting hospital costs due to coronavirus .

Covid Kavach is an indemnity plan which pays for hospitalisation .


1) I already have health insurance cover , then do I get any benefit by opting for this separate Covid Kavach Policy ?

It is more comprehensive policy on COVID  because it covers homecare, PPE and treatment of co-morbidities when hospitalised which is not covered under normal health insurance policies.

2 ) Should one go for individual or family floater policy ? 

Considering the cost towards covid treatment , it is better to go for individual policy as the maximum sum assured in this policy is Rs 5,00,000/- only  (Rs Five Lakhs only ) .

Secondly , Covid is very contagious and the entire family may be affected.

If one member of the family gets infected , then chances of getting infection transmitted to immediate family member is high and both ( more family members ) may need hospitalisation .

3 ) Which company policy should one go for ?

Since it is standardised policy, the features are the same across all the insurance companies . There is hardly any difference between the premiums amongst all insurance companies . As of now , 29 insurance companies are offering the Covid Kavach plans .

We suggest Star Health & Allied Insurance Co Ltd considering their wider presence across Maharashtra State as well as at nation level. They are number one medical insurance company in terms of individual policy holders ,focused only on health and its related insurance .

4 ) Is home care treatment expense covered ?

Yes but maximum upto 14 days and when the Medical practitioner advices the Insured person to undergo treatment at home . It should have daily monitoring chart , medical practitioner continuous active line of treatment . Refer the brochure attached below for detailed wording .

5 ) Policy Period and waiting period for Covid Kavach ?

Policy Period : Three and half months (3 1/2 months), six and half months (6 1/2 months), and nine and half months (9 1/2 months

Waiting Period : 15 days from the date of commencement of this policy .

6)  How much is the Hospital Cash Amount payable under optional cover benefit  ?

The Company will pay 0.5% of sum insured per day for each 24 hours of continuous hospitalization for treatment of Covid following an admissible hospitalization claim under this policy.

Please refer the brochure for more details and premium amount by clicking on below link

Please drop the mail to us for further queries .

Stay Home and Stay Safe !

Team Pentagraph