We face risks every day. However, how many of us actually work on covering the risks that pose us and in turn have the capability to affect the happiness of our loved ones?
The need to cover everyday risks related health, motor, life, home, and businesses cannot be emphasised any further. However, when it comes down to the numbers, time and again we have been hit with statistics that indicate Indians are underinsured. For instance, as per the recent report for the financial year 2014-2015 by Insurance Regulatory and Development Authority of India (IRDAI), the insurance penetration of India is at 3.9%, below the world average of 6.3%.
Comparing this with developed nations like South Africa (15.4%) and South Korea (11.9%), the current insurance scenario calls for better risk coverage and density.
When it comes to coverage of risks, even the individuals that have a basic insurance policy, there is a need to understand that the insurance landscape has broadened to include new age covers. These covers thus are not only robust investment tools, but also cover you as an individual on a holistic level.
- Risk: Medical Inflation
Risk Management Technique: Super Top Up Plan
The Indian healthcare sector along with a lean towards private healthcare has witnessed a double digit growth in both urban and rural areas during 2004-2014 as per a pan-India survey conducted by the National Sample Survey Office (NSSO). At 10.7% for urban and 10.1% for rural, it signifies the rise of treatment costs.
There an overwhelming need to ensure adequate coverage to fight the medical inflation. For instance, the expenses you anticipated four years back, may have doubled over the years rendering you underinsured. This is where the super top up plan comes into play.
A super top up is a plan that can be used independently as well as over a base health insurance policy. It comes with benefits such as fixed deductibles and 100% reset benefit that cover you for multiple hospitalisations on an aggregate basis.
- Risk: Inability to Work and Earn
Risk Management Technique: Personal Accident Cover
Indian Roads account for the highest number of fatalities and injuries in the world. Whether it is due to human error or poor state of roads, there is no escaping the fact that there is a need to be financially protected in case an accident robs your ability to work for a living.
According to provisional police data provided by states, the cases of both injuries and fatalities are up from 4.98 lakh in 2009 to over 5 lakh in 2015.
A personal accident cover, thus, takes care of the expenses incurred towards rehabilitation and treatment. It also takes care of your loved ones and by providing an umbrella coverage as per policy terms and conditions.
- Risk: Own Vehicle Damage
Risk Management Technique: Comprehensive Motor Insurance Plan
While third party liability coverage is compulsory, we may forget that any damage to the third party may also afflict damage to own vehicle. Get yourself covered today. Opt for add-ons such as no claim bonus (NCB), zero depreciation, roadside assistance (RSA) for a comprehensive coverage.
- Risk: Additional Living Expenses Post Calamity
Risk Management Technique: Comprehensive Home Insurance Plan
With real estate costs sky rocketing in urban and semi-urban areas, it is wise to cover rent costs in case your home is rendered unlivable due to and insured peril. Comprehensive home insurance policies provide you coverage against these living expenses and include rent, hotel accommodation and food expenses etc.
- Risk: Diagnostic Charges
Risk Management Technique: Wellness Programs
Diagnostic charges add up and sneak into your medical bills, which are often not covered in your basic health insurance policy. Read your policy terms and conditions to understand if the expensive charges are covered and can eat into your pocket.
Alternatively, you can opt for a super top up plan or health insurance policy with wellness programs. These offer you added benefits such as reimbursement on diagnostic charges, dental treatment and many other not covered in your policy through various wellness activities.
- Risk: Critical Illnesses
Risk Management Technique: Comprehensive Health Insurance Policy
According to a WHO report, 2015, lifestyle related diseases and non-communicable critical illnesses are on the rise in India and across the world. While a comprehensive health insurance policy lets you cover these contingencies, it is advisable to opt for a super top plan to take care of unexpected expenses.