The Hindu : National : Getting your belongings insured

Online edition of India's National Newspaper
Saturday, Mar 14, 2009
ePaper | Mobile/PDA Version

National

National

Getting your belongings insured

The householders’ policy is an all-risk cover.

Safeguard: A householders’ insurance guards against loss from disasters.

Is your house insured against fire or burglary? Well, most people will say no.

Life and vehicle insurances are popular; not so other insurance products.

Health insurance is better known, though its penetration in the population is not high, say insurance officials.

Only a small percentage of houses have been insured. The percentage of householders’ insurance policies in the product profile of an insurance company is low, says P.C. Sreekumar, Divisional Manager of United India Insurance Company in Kochi.

A branch office doing a business of Rs.4-5 crore will have the householders’ policy contributing a few lakhs, he adds.

Contrary to what the name of the product suggests, a householder need not be a house owner. A person living in a house can take the policy to protect against the loss of his belongings in a fire or burglary.

A basket

It is an all-risk cover — a combination of about eight to 10 policies in a single basket, Mr. Sreekumar says. It covers all the likely perils that a household is exposed to. The computer, television, washing machine or other electronic goods can be insured against breakdown. This attracts a higher premium, as breakdown is a general occurrence for electronic products. The claims too in this policy are higher — about 60-70 per cent than any other coverage in the householder’s umbrella cover.

The fire policy gives cover for natural calamities too. Damage to the house and household items in riot, strikes or malicious damage is also covered under this policy.

Another important cover is for valuables such as gold. The personal accident coverage under the householders’ policy is yet another major product. All members of the house and the domestic help can be included. This helps in case of any accident that results in loss of life or disability.

Items such as bicycles can be included in the householder’s list to be insured. For a traveller, the loss of baggage is covered under this package.

While renewing the insurance cover, one has to take care that the value quoted for the items matches with the new market value. This is important so that the customer is not at a loss if the value has fluctuated upwards. Coverage for limited-life parts of electronic items will be low, Mr. Sreekumar says.

SHYAMA RAJAGOPAL

Printer friendly page
Send this article to Friends by E-Mail

National