It is important to have covers for business interruption and ensure that home insurance also includes damage caused by floods

The current spell of heavy rains lashing parts of northern India has once again brought to the fore the importance of insurance coverage for your business and personal assets. Homeowners should ensure their home insurance includes protection against flood damage, while businesses should have comprehensive property insurance.

Currently, there isn’t specific insurance that covers flood-related damages explicitly, and some insurers cover floods as part of the Standard Fire & Special Perils policy. Fire insurance typically covers flood damage, inundation, landslides, rockslides, storms and cyclones.

Business interruption insurance can help businesses recover from financial losses caused by temporary closures due to floods. Jagjeet Siddhu, Chief Distribution Officer, Kotak Mahindra General Insurance, said, “Various insurance covers include storm, tempest, flood, inundation, landslide, rockslide, earthquake, etc. Earthquake is available as an add-on under “Standard Fire and Special Perils” policy. Under MSME products like Sookshma Udyam/Laghu Udyam Suraksha, the same is available as an inbuilt cover. Another important add-on is Debris removal, as flood waters carry a lot of debris/silt and involve costs for its removal. Dewatering expense is also available as an add-on. These add-ons are offered with sub-limit.”

Suitable policies based on value at risk may be purchased by Individuals and Businesses covering their fixed assets in their area of operation. It is recommended to have adequate protection to safeguard against flood risks as the damage it could cause to property is significant. Major claims reported are due to damage to stock, machinery, boundary wall, etc.

Besides, one can opt for the Bharat Griha Raksha policy. The insurance covers your home and home contents, that is, articles or things in your home. Under this policy, the insurance company pays you for the losses, including damage or destruction of the building of your home and articles or things in it. The policy covers earthquakes, volcanic eruptions, or other convulsions of nature.

Comprehensive motor insurance is also essential to cover flood damage to vehicles. The policy typically offers coverage against accidents, theft, and damage caused by natural disasters like floods. However, the extent of coverage may vary depending on the specific policy and insurance provider. It’s significant to vigilantly read the terms and conditions of your policy to understand the coverage provided.

Vivek Chaturvedi, CMO and Head of Direct Sales at Digit Insurance said, “In addition to a comprehensive cover, people living in areas prone to floods must consider buying add-ons like engine and gear box protection cover, zero depreciation cover, consumable cover, roadside assistance cover, and most importantly return to invoice cover. We often see many vehicles getting damaged beyond repair due to floods or vehicles getting completely totalled. Such claims are considered as total losses or write-offs where the salvage cost of the vehicle exceeds its insured value. Buying add-ons like return to invoice cover can help you get the amount mentioned on the invoice, not just the vehicle Insured Declared Value (IDV). 

Rahul M Mishra, Co-Founder and Director of Policy Ensure, said, “With the increased risks during floods, such coverage becomes even more important to protect individuals and their families from the financial consequences of accidents. Life insurance offers financial protection to the insured’s beneficiaries in the event of the insured’s death. Given the unpredictability and severity of floods, having life insurance ensures that loved ones are provided for in case of a tragic event.”

What you should do: For those who have been covered, the insured value for the fixed assets declared under the policy would be the maximum limit up to which the compensation is made. “If the property is undervalued, deductions are made in receivable based on the extent of such underinsurance. And, when the assets are covered adequately, settlement is done in full to the extent of damage,” said Siddhu.

Reviewing policy terms, understanding coverage, and promptly reporting damages to the insurance company is important. You’ll need to document damages with photographs and seek professional advice when needed. “Insurance coverage for floods may vary, so careful review of policies and clarification from insurance providers is necessary. Adequate coverage is essential to protect against flood-related risks and ensure individuals and businesses can recover and rebuild after such events,” said Mishra.

How to claim: The policy document carries a claims intimation procedure either electronically or through the post and on the dedicated call centre. You can inform through various options available on policy documents, and the in-house claims team will service the request within the timelines as stipulated.

motor insurance policy typically covers damage due to natural disasters, but certain exclusions may apply, especially when there is water logging and flooding

In India, motor insurance typically covers damages caused to vehicles due to natural disasters, including monsoon-related damage from vehicles being swept away in a torrent. However, it is important to note that the coverage may vary depending on the specific insurance policy and the terms and conditions set by the insurance provider. 

While motor insurance typically covers damage caused to vehicles due to natural disasters, certain exclusions and limitations may apply especially when there is water logging and flooding. 

Motor insurance typically offers coverage against accidents, theft, and damage caused by natural disasters like floods. However, the extent of coverage may vary depending on the specific policy and insurance provider. It is important to carefully read the terms and conditions of your motor insurance policy to understand the coverage provided. Here are some common scenarios that your policy may not cover: 

Engine damage: Most motor insurance policies do not cover engine damage from water ingress or hydrostatic lock. This means the policy may not cover the repair costs if your vehicle’s engine gets damaged due to water entering the engine bay or if it seizes due to water pressure. 

Consequential damages: Motor insurance may not cover damage that occurs because of water logging or flooding, such as electrical failures, damage to the vehicle’s wiring, or to the car’s interior due to water seepage. 

T.M. Shyamsunder, COO of Royal Sundaram General Insurance, says, “To safeguard your vehicle during the monsoon, consider taking additional precautions. Park your vehicle safely away from flood-prone areas, ensure regular maintenance and servicing, and stay updated with weather alerts to avoid venturing out in hazardous conditions.” 

Policy exclusions: Some motor insurance policies may have specific exclusions related to water logging and floods. These exclusions could be mentioned in the policy document and may limit coverage or impose certain conditions for claims related to such incidents. 

A basic comprehensive motor insurance policy typically covers flood with add-ons such as Engine cover, NCB Protector, Depreciation waiver and Return to Invoice cover. These add-ons save your out-of-pocket expenses in case of claims during monsoons. 

Rahul M Mishra, Co-Founder and Director of Policy Ensure, said, “There is an add-on cover available in motor insurance called Engine Protection Cover or Hydrostatic Lock Cover. This cover protects against damage to the engine, electrical components, or other mechanical parts due to hydrostatic lock or water-induced failures.” He said, “Hydrostatic lock occurs when water enters the engine cylinder, preventing the piston from moving and potentially causing severe damage. It can happen if a vehicle is driven through deep water or encounters flooding.” 

The Engine Protection Cover is an optional add-on that you can purchase along with your regular motor insurance policy. It covers the repair or replacement costs of engine components damaged due to water ingress. 

Besides, if your vehicle gets swept away in a flood, it is generally covered under a comprehensive motor insurance policy. Such a loss is considered a ‘total loss’. It means that your car is damaged to the extent that the repair cost is higher than your car’s total IDV (insured declared value). Under such circumstances, the insurer pays you the IDV of the vehicle. 

However, it is important to note that the availability of add-ons in comprehensive motor insurance cover and its specific terms and conditions may vary depending on the insurance provider and the type of policy you choose. So, you will need to carefully check with your insurer or agent to understand the exact coverage details and any limitations associated with the policy. 

• In some countries like the US, medical expenses can be very high, so not buying an adequate cover or travel insurance can be risky.
• It is important to understand all the exclusions under the policy to understand clearly what is covered and what is not.
• When buying travel insurance, find out how to contact the insurer in case of an emergency.

When booking a trip, we plan for destinations to visit, where to stay, what to do, what to eat, what to shop for and so on, but travel insurance, one of the most important parts of planning a trip, often comes as an afterthought. Now, with Indians travelling more than ever before, we look at five common mistakes to avoid when buying travel insurance.

The last minute purchase

Buying travel insurance is crucial, so leaving it for the last moment is a mistake that should be avoided. Doing so means one has no time to compare different policies, and choose the one that best suits their needs.

“People also often overlook the importance of comparing different insurance plans, and choosing the one that best suits their needs. Failing to consider factors like coverage limits, deductibles, and emergency medical expenses could leave them underinsured or paying more than necessary,” says Pankaj Vashistha, Founder & CEO, Policy Ensure, an insurance aggregator.

Understanding exclusions

Travel insurance policies will not cover everything, and even if they do, they would be covered subject to certain limits. “One mistake is not carefully reading and understanding the policy terms and conditions. This can result in surprises later when a claim is denied due to specific exclusions or limitations,” says Vashistha.

For example, your insurance policy is unlikely to cover you in case you are planning to go bungee jumping or indulge in other adventure activities. Also, your travel insurance may cover your gadgets up to a certain limit, and your expensive laptop may not be covered fully. So it is important to read all the exclusions and understand what all is covered.

Having enough sum assured

Medical expenses vary from country to country and can be very high for some countries. So, it is important to always buy adequate travel insurance as required and not always go for the basic plan.

“A common mistake is not purchasing enough coverage for example, individual travelling to US, and Canada should buy higher sum insured of $5 lakh as in case of medical emergency or evacuation the expenses will be extremely high,” says Nikhil Apte, Chief Product Officer, Product Factory (Health), Royal Sundaram General Insurance.

Margin for the return date

Sometimes a trip may get extended for several reasons, and if travel insurance is bought for the exact number of days of the trip, one will not be covered.“ It is always advised to keep a margin of return date, as in case of trip extension by a few days your policy will be still valid on your return journey,” says Apte.

Understanding how to contact the insurer

Encountering a tragedy in a foreign country where there is a language barrier can be incredibly stressful, and it’s easy to forget to inform your insurance provider promptly. However, failing to do so can compound your problems.

Travel insurance policies typically stipulate that if the insurer is not informed within 24 hours (or 48 hours in certain cases), no coverage will be provided. It is advisable to choose an insurance provider with a 24×7 helpline, or who responds promptly via email. Before embarking on your trip, review your travel policy documents and make note of essential contact numbers and email addresses. This preparation will help ensure that you can promptly inform your insurance provider in case of an emergency or unfortunate event during your travels.

With increasingly uncertain times and a changing economy, choosing an insurance policy for yourself and your family has become imperative. Insurance policies are crucial financial tools that offer protection and peace of mind against unanticipated circumstances. However, selecting the right insurance policy can be a daunting task, considering the vast array of options available in the market. From General Insurance to Home Insurance, this blog aims to provide a comprehensive guide to help you make an informed decision when choosing an insurance policy. By following these steps and considering the relevant factors, you can ensure that you select the policy that best fits your needs and offers maximum coverage. 

Assess Your Needs: Before diving into the world of insurance, take some time to evaluate your needs. Start by identifying the risks and potential losses you may encounter in your personal or professional life. Consider factors such as your age, health condition, financial obligations, and dependents. This assessment will help you determine the type and amount of coverage required.

Understand Different Types of Insurance: Familiarize yourself with the various types of insurance available, including life insurance, health insurance, auto insurance, home insurance, and others. 

Life insurance offers financial protection to your beneficiaries in the event of your death. It can be term insurance, providing coverage for a specific period, or permanent insurance, offering lifelong protection.

Health insurance covers medical expenses, including doctor visits, hospitalization, medications, and preventive care. Consider the different types of health insurance plans, such as HMOs, PPOs, and high-deductible plans, to find the one that suits your needs.

Motor vehicle insurance, or car insurance online provides coverage for damages or theft of your vehicle as well as liability protection in case of accidents. It typically includes comprehensive coverage, collision coverage, and liability coverage.

Home insurance protects your property and belongings from damages caused by fire, theft, natural disasters, or accidents. It may also cover liability for accidents that occur on your property.

Each type of insurance serves different purposes and covers specific risks. Research and gain a basic understanding of the key features and benefits of each type to determine which ones align with your needs.

Research Insurance Providers: Once you have identified the types of insurance policies you require, research different insurance providers. Look for reputable companies with strong financial standing, good customer service, and a track record of settling claims efficiently. Read reviews, compare customer feedback, and consult independent rating agencies to gather insights into the reliability and reputation of the insurance companies under consideration. Policy Ensure, for instance, is known for its extensive network of insurance partners, ensuring you have access to a variety of options. They have built a solid reputation in the industry, offering personalized service and comprehensive coverage options.

Compare Policy Features: When comparing insurance policies, pay close attention to the coverage limits, deductibles, exclusions, and terms and conditions. Evaluate the scope of coverage provided by each policy and assess whether it adequately meets your needs. Look for additional features, such as riders or add-ons that can enhance the coverage. It is essential to strike a balance between the extent of coverage and the affordability of premiums. Policy Ensure can help you navigate these considerations and find a policy that aligns with your financial situation.

Consider Affordability: Insurance premiums should fit comfortably within your budget. Compare the costs associated with different policies, including the premium amounts and any deductibles or copays you may have to pay. While it’s important to consider affordability, be cautious of policies with extremely low premiums, as they may offer insufficient coverage or have hidden costs.

Seek Professional Advice: If you find the insurance selection process overwhelming or if you have specific concerns, consider consulting an insurance broker. These professionals can provide personalized guidance based on your unique circumstances and help you navigate the complexities of insurance policies. They can also clarify any doubts you may have regarding policy terms and conditions.

Conclusion

Choosing the right insurance policy requires careful consideration of your needs, diligent research, and a thorough understanding of the policy’s features and costs. By assessing your requirements, researching reputable insurance providers, comparing policy features, considering affordability, and seeking professional advice when needed, you can make an informed decision. Remember that insurance is a long-term commitment, so it’s crucial to select a policy that provides comprehensive coverage and aligns with your financial goals and risk tolerance. Insurance brokers like Policy Ensure have access to multiple insurance companies, making them valuable partners in your insurance decision-making process. With their assistance, you can secure the coverage you need and protect yourself against unforeseen circumstances. 

When considering the factors that can affect your health Insurance premiums, aspects such as age, gender, and driving record often come to mind. However, there are other lesser-known factors that can impact the cost of your insurance, including your health.

Here are five surprising factors, including health-related considerations, that can influence your insurance premiums:

your occupation

While it may seem unrelated to health, your occupation can have an impact on your insurance premiums. Jobs involving high-risk activities or hazardous work environments, such as mining or aviation, may result in higher insurance premiums. Insurers perceive these professions as more dangerous, increasing the likelihood of injury or death.

Your hobbies

Engaging in high-risk hobbies like skydiving, rock climbing, or motor racing can also affect your life insurance premiums. Insurance companies view these activities as potentially dangerous, leading to a higher premium to cover the associated increased risk. Such hobbies may raise concerns about potential injuries or accidents.

Your medical history

Your medical history, including pre-existing conditions and family health background, plays a significant role in determining your insurance premium. Insurers consider individuals with pre-existing medical conditions or a family history of illnesses as higher risks. For example, a family history of heart disease or cancer may lead to higher premiums due to the perceived likelihood of developing these conditions.

Your lifestyle habits

Certain lifestyle habits can impact your insurance premium, primarily due to their effect on health. Smoking, excessive drinking, and leading a sedentary lifestyle can increase the risk of developing health problems. Smokers, for example, are known to have a higher risk of lung cancer and respiratory diseases, resulting in higher premiums. Similarly, individuals leading sedentary lifestyles may be more prone to obesity, diabetes, and other health issues, which can also lead to increased insurance premiums.

Considering these factors, including the impact of your health on insurance premiums, is crucial. It’s important to be aware of how your occupation, hobbies, medical history, credit score, and lifestyle choices can influence the cost of your insurance coverage.

By understanding these lesser-known factors, you can make informed decisions and potentially reduce your risk, leading to lower insurance premiums. Prioritizing a healthy lifestyle and addressing any pre-existing medical conditions can contribute to both your well-being and potential cost savings on insurance.