Ad­van­tages and Lim­i­ta­tions

Consumer Voice - - Bfsi -

Ad­van­tages

You can have com­plete peace of mind re­gard­ing your prop­erty in­vest­ment. When you are away on hol­i­day/tour, you worry less about your home and its safety. For a nom­i­nal pre­mium (ap­prox­i­mately 0.50 paise per Rs 1,000), it is the cheap­est of the pre­mi­ums in an in­sur­ance pol­icy. Some in­sur­ers of­fer dis­count on pre­mium (even up to 50 per cent) if one takes a long-term pol­icy. All un­in­ten­tional dam­age to struc­tures/as­sets is ad­e­quately com­pen­sated, with re­pairs/re­im­burse­ment of rent paid on lease (up to one year), thereby min­i­miz­ing the has­sles and doc­u­men­ta­tion.

Lim­i­ta­tions

Per­ils cov­ered are not uni­form. The con­sumer is not able to take an in­formed de­ci­sion quickly while com­par­ing the home in­sur­ance prod­ucts on of­fer. Sum in­sured and pre­mium can­not be clearly de­fined as th­ese are based on risk as­sess­ment of build­ing (value, age and class of con­struc­tion), ma­te­rial as­sets and ad­di­tional in­sur­ance cov­ers. In­di­vid­ual ceil­ing on com­pen­sa­tion on each item dam­aged thwarts full com­pen­sa­tion of costly items. Struc­tural dam­age due to earth­quake (fire and shock) is cov­ered in some poli­cies but sel­dom set­tled in a home in­sur­ance claim.

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