Beyond Traditional Insurance Policies

September 29th, 2011 by Arun

Today, with the emergence of economy, insurers are offering a wide array of innovative insurance policies to protect all aspects of life, investment, lifestyle and even one’s popularity. The trend caught the eye when Abhishek Bachchan and Aishwarya Rai Bachchan insured their marriage with a wedding insurance policy. Also, John Abraham made news as he wishes to insure his butt with Rs 100 million policy. With our celebrities taking the lead in innovative insurance policies, the average man is yet to follow.

Special Insurance Schemes: Key Highlights

Insurance	Coverage	Eligibility
Wedding Insurance	Cancellation of event due to illness, injury, military deployment, weather related rescheduling or any unforeseen event including accident or death Recouping costs of vendors not showing Thefts or things lost due to genuine reasons Coverage for public liability e.g. food positioning Honeymoon (Optional)	Valuation Certificates to be submitted and shop bills shown Coverage Size: Rs 10-100 Lakhs Loss is calculated on Actuals & Perils
Pet Insurance	Includes dog, elephants, cows, buffalos, cats, sheep, horses etc. Death due to illness like rabies or accident Lost, theft of the pet Coverage Type: Time bound, Money bound and lifetime cover Third party loss such as dog bites	Coverage Size: Up to the market value of the pet Market value to be certified by a vet. Photos from all angles of the pet need to be provided
Home Insurance	Perils: Fire, theft & burglary, Strike, riot, damage due to terrorism, landslide, fire, earthquake, explosion, lightening Equipment like ornaments, appliances, furniture, etc. Liability insurance for accidents	At least a person, insured occupies the home. Discounts on certain facilities like fire alarm All relevant property documents Value of valuables depends on the market value, after depreciation.
Shop Insurance	Damage / loss to shop due to fire, burglary, riot, strike, loss of money in transit, fraud committed by client's employees Damage due to natural calamities	Coverage Size: Rs 10 -100 Lakhs A surveyor appointed by the company will analyze the damage /loss incurred
Celebrity Insurance	Business loss to celebrity for that part of their body or talent that is important for their business. Personal Accident Cover	Celebrity‘s health, popularity, earnings and associated risks Coverage Size: Rs 75-100 Lakhs
Mobile Insurance	Covers variety of risks like fire, theft, riots, strikes, terrorist activity. Additional coverage available w.r.t. malicious damage, accident and fortuitous circumstances.	Compensation is the cost of replacement by new mobile of same specifications and capacity, including taxes and duties. Coverage Size: Rs 1-2 lakh
Expatriate insurance	Health problems at your temporary residence Coverage available in home country and for multiple visits per year Additional benefits like maternity, preventive care and pre-existing conditions coverage	The country in which you plan to settle should be approved by insurer & assumed to be safe.
Kidnap/ Ransom insurance	Reimbursement of costs associated with a kidnap for ransom Loss due to injury (mutilation, loss of fingers, total disability as a result of a kidnapping, extortion or detention) Travel expenses	Proofs of kidnap, e.g., kidnappers call, letter etc. Coverage Size: Rs 50-200 lakh
Terrorism Insurance	Damages due to any terrorism activity, as approved by government Damages include property, goods, or any other immovable property.	The entire premium collected by insurance industry under terrorism risk is deposited in this pool managed by GIC

Un-Organized & De-Fragmented Industry

The market for most of these insurance schemes is still evolving and coverage is provided on case-to-case basis, which essentially forms the basis of differential premium charged. For instance, in pet insurance, the premium paid is completely dependent on market value of pet, which may vary in individual case. Similarly, under celebrity insurance, one can get any part of the body parts insured, the loss of which could potentially results in a loss of earning for celebrity. It includes voice for professional singers, legs for footballer, and so on.

Deterrents

The evolving innovative insurance industry is struggling hard to make their presence felt domestically, as there are numbers of hindrance for the insurers. Most of these schemes come as a luxury to customer, instead of a necessity. Though, there are other reasons as well. For instance, Mumbai shopkeepers are looking forward to terrorism insurance because of repetitive terrorist attacks on the city. Similarly, mobile insurance market is booming in metros with increase in sales of high-end mobile phone.

Though, there are various deterrents for innovative insurance products market in India. It involves:

These insurance policies come as more of a luxury than necessity.
The market is dominated by a niche segments, and do not cater to masses.
Unpredictable or low premium penetration, along with little incentives for insurers dampened interests to promote such schemes.
Type of covers is not fully defined.

Insurers Offering Innovative Insurance Policies

Insurers	Wedding	Pet	Home	Shop	Celebrity	Mobile	Kidnap/Ransom	Terrorism
Bajaj Allianz	Yes	Yes	Yes	Yes		Yes
Tata AIG General Insurance	Yes		Yes	Yes		Yes	Yes⁽¹⁾
Reliance GIC			Yes	Yes
IFFCO Tokio			Yes
Royal Sundaram			Yes
Chola MS			Yes	Yes
United India Insurance		Yes				Yes
National Insurance		Yes	Yes			Yes		Yes
Oriental Insurance		Yes		Yes	Yes#	Yes
New India Assurance		Yes	Yes	Yes	Yes	Yes		Yes
ICICI Lombard	Yes		Yes	Yes			Yes	Yes
HDFC Ergo			Yes				Yes
Future Generali			Yes					Yes^

⁽¹⁾ Offered under their group insurance policy

^Inbuilt terrorism covers in Personal Accident Insurance

# Sports persons’ Insurance

Published on September 29, 2011 · Filed under: General Articles;

1 Comment

One Response to “Beyond Traditional Insurance Policies”

Sathi Kumar.P.P. said on April 17th, 2012 at 10:17 am

shop insurance fire/theft required at kottayam town, kerala . please send quote

Articles

Recent Posts