INSURE YOUR LIFESTYLE (PART 2 OF 2)
· People’s lifestyles have seen huge changes recently.
· For today’s generation, simple is boring, and life is technology-driven.
· But, modern day life presents its own risks and can be financially fatal.
· However, there are certain insurance covers that provide safety to your lifestyle risks.
· Choosing the right kind of cover after assessing your needs requires a fair amount of foresightedness.
8. Personal trip effects cover
· It covers loss, theft or accidental damage to personal luggage, effects, papers and the money you carry on a personal trip.
· It does not cover commercial and administrative documents, tickets, any type of vehicles, spectacles, sunglasses, antiques, tape recorders, players, CDs, computers, etc.
· It also does not cover money or cheques left in check-in baggage, normal wear and tear, decay, manufacturing defects, firearms, jewellery and precious stones, mechanical, electrical and software failure.
9. Personal trip liability cover
· There are times when accidental bodily injury and property damage to a third party, like in a shopping mall or showroom, may cost you dearly during a personal trip.
· There are now insurance policies that cover you if you are legally liable to pay compensation because you have injured someone or damaged their property by your actions.
· It does not cover communicable diseases, alcohol, non-prescribed drugs and medicines, contractual liabilities, participation in dangerous sports, or participating in demonstrations, strikes, riots, terrorism, etc.
10. Price protection cover
· As a consumer, you would always want to make a purchase at the lowest possible price, whether window-shopping or Net-shopping.
· Despite this, all of us have had a bad bargain at some point, as you find that the same shop, or another store, is selling the same stuff at a lower price or with a discount, after you have already bought the item.
· The difference can sometimes be in hundreds or even in thousands if it is a high-valued item.
· For such eventualities, there are now insurance policies which cover the price difference between the price charged to your card and a lower printed advertised price within 30 days of purchase of the same item.
· Having the cover assures you that you do not end up with a bad bargain on an item and will also pay the correct price, provided you use your credit card for making the purchase.
· It does not cover cash, travelers cheques, tickets, etc., art, antiques, firearms, collectibles, fur, jewellery, gold, gems, precious stones, perishable items like beverages, tobacco and fuel, living plants and animals, motor vehicles, customized and personalized one-of-a-kind items.
11. Event insurance cover
· The policy broadly covers personal accident, postponement or cancellation of event, and damage to property at the venue, which can be customized as per one’s needs.
· For instance, an ailing relative, who might pose a risk of cancellation or postponement of event, can be covered.
· If you perceive the quality of food and see it as a risk, you can include food poisoning in the insurance.
· Terror attack is another threat that can now be covered.
· You can also decide to buy insurance only for the main event spanning a day, or have the cover spread across several days and various ceremonies.
· The primary cover will always include event/wedding cancellation, but fire or burglary risk can be bought separately as standalone covers.
· You can also seek insurance against jewellery theft or cancellation in case the bride or groom is unable to make it to the event on time.
· If the event is cancelled or delayed due to damaged banquet/marriage halls, this too can be covered.
· However, cancellation of an event due to a dispute between the wedding parties, or due to last-minute marriage jitters, is not available as a cover.
· But if the groom does not turn up due to unpaid dowry and the ceremony is cancelled, you can get covered for the eventuality.
· Willful negligence and criminal misconduct are also not covered.
· Consider the various options offered by the insurers and pick the ones that fits your needs and budget.
· The premium rate broadly varies from 0.75%-1.5% of the total cover depending on the various risk parameters such as safety and security arrangements at the venue, geographical area, risk management or contingency plan.
· For making a claim, you need to have all the bills in place, including copy of FIR and jewellery bills, as such insurance is a non-standard product, and the proofs required to claim vary.
12. Vacation booking cancellation cover
· The cover for cancellation of vacation is offered by some general insurance companies as part of the home insurance policy.
· One section of the home insurance cover is usually dedicated to cancellation of vacation cover.
· If you opt for the cover, the policy indemnifies the insured for any prepaid amount that could be forfeited if bookings for hotel rooms or holiday resorts are cancelled.
· In order to qualify for compensation, such forfeiture must be as per the terms of the contract of booking or reservation of accommodation.
· However, the reasons for cancellation of a trip should be hospitalization or an illness that is medically certified, loss of life or events such as floods, inundation, storm, lightning, earthquake and fire.
· The maximum amount of liability is, however, limited to the sum insured selected by the insured at the time of buying the cover.
13. Credit card protection plan
· It is an insurance cover against loss, theft and fraud of credit, debit, ATM, membership or loyalty cards.
· This is offered by banks and credit card firms in association with CPP India.
· The annual fee is deducted as a lump sum at the beginning of the membership.
· The premium charges differ depending on the benefits offered to customers.
· The membership begins as soon as the fee is paid and is valid for one year.
· There is a 30-day cooling off period when the membership can be cancelled and a refund taken if no claims are made.
· In case of a card-related loss, theft or fraud, the card holder must call CPP’s 24-hour helpline to report it.
· The CPP will, in turn, call all the issuers and ask them to cancel the cards that have been reported lost.
· For claims, one needs to fill a form and send it to the CPP, along with original documents like credit card statement and a police complaint.
· All claims must be received within the specified period, usually 30 days, from the date of loss.
· The service also includes emergency travel assistance, which includes advance for settlement of hotel bills and arrangement of return travel tickets.