Are you ignoring these gaps in your coverage?
Insurance is a financial tool that secures you against any unexpected expenses, be it health, motor, home, or travel. However, as per the annual report of the Insurance Regulatory and Development Authority (IRDAI) for the year 2014-2015, a majority of policyholders are underinsured with the sum insured often falling short at the time of claim.
Make sure you cover each and every gap you are insured for to get the best value for your money:
Flood and Earthquake Insurance
Is your home protected from water damage due to pipe bursts, or any other technical fault such as drainage backups? These may not be covered in your policy, but do flood your home. Hence, it is wise to be covered for direct and indirect losses due to flood and water damage.
A large percentage of India’s habitable landmass is also under the earthquake red zone. It is prudent to identify these zones and employ construction best practices. Look for a home insurance plan that covers the structure and contents from the after-shocks as well. If you are a tenant, opt for tenant’s insurance that covers all your contents.
Loan Coverage
If you have taken a loan for your car, you may have to face severe loss in case of total loss of your vehicle. Total Loss means that your car is damaged beyond repair or it is stolen. A coverage that takes care of this gap, that is, the actual value of your car and the remaining loan amount is crucial.
Cost of Treatment
Check if the sum insured of your comprehensive health insurance is adequate to cover the expenses after adjusting for inflation. In case your cover falls short, opt for a Super Top-up plan and enhance the protection of your loved ones.
Disability Coverage
In case you are involved in an accident, chances of you being injured or even disabled are quite high, especially if you are a two-wheeler rider. In the case of partial or total disability, your earning potential reduces or can come to a halt while your treatment, rehabilitation and caretaking costs increase.
Planning for the long term will help you pay bills and stay financially independent. If your employer provides you with a disability coverage, it will cease to exist after the pay-out. Buy a complete health insurance cover that provides the same with daily cash cover and payouts even after the lump sum claim payment.
Exclusions
Your claim will be rejected if your claim falls under the exclusions. Read your policy documents carefully to avoid any unpleasant surprises. If a clause is not covered in your policy, ask your insurer if a customised policy can be made for you.
It is also to be noted that lower premiums do not mean you get cheaper insurance for the same benefits. There may be fewer features in the same plan or a higher deductible which may not be feasible in your time of need.
While low premium sounds good at the time of purchase, it can leave a gaping hole in your coverage. Choose wisely and understand your policy terms to get the best coverage for your needs.
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