Personal accident cover: What this cover offers you is financial compensation against accidents, which might leave you physically handicapped for a period of time. Typically, a personal accident policy covers you against death, permanent disability, permanent partial disability and temporary total disability. For death or permanent disability, it pays you a lump sum compensation. For temporary disability, it pays you a weekly compensation of around 1% of the sum insured for up to two years. This policy offers you a cover of up to 60 times your monthly salary and could go up to 100 times in some cases.
This cover is available with non-life insurers and comes bundled with health insurance too. It can also be opted for as a rider while buying a term plan. However, the riders do not always cover terrorism.
For instance, Reliance Life Insurance does not pay for accidental death claim or permanent and total disablement claim on account of terrorism.
COVERING YOUR ASSETS
Your vehicle and house could be at risk during a terrorist strike.
Motor insurance: For your vehicle, you should go for comprehensive motor insurance. In addition to giving you third party cover, it also pays in the event of personal damage, theft of your car, or injury to the passengers in the vehicle. Third party insurance protects you in case you cause damage to property, or for an accident, or loss of life of a third party.
Householder’s insurance: To protect your house, you need to take a householder’s policy with a terrorism cover which, normally, is an extension of a fire insurance cover. A fire insurance policy covers the building and its assets against fire and allied perils such as earthquakes, lightning, storms, floods and riots.
However, this policy will not cover a fire triggered by an act of terror, unless it is covered for separately. Says T.A. Ramalingam, head (underwriting), Bajaj Allianz General Insurance: “Terrorism cover always comes as an extension with a fire insurance policy in order to establish the risk. Just on account of terrorism, there could be any damage, which is an unspecified risk. Hence, we give it under fire and allied perils.”
The fire insurance cover can be bought at an additional premium of Rs0.08 per thousand of the sum insured under the householder’s policy. Says Neeraj Kumar, general manager, Oriental Insurance Co., “You can buy terrorism cover mid-term also. However, we refuse the cover if there is a developing case of a peril. So, if somebody were to buy a cover because a flood is going to strike, we will not cover him.”
Emotions and mental trauma can’t be insured, but material objects can. The sooner you act, the more soundly you’ll sleep.
The views expressed on this page are not the newspaper’s opinion and are provided for information purposes only by Outlook Money. Readers are requested to do their own research. Neither Mint nor Outlook Moneywill be responsible for any actions and outcomes based on information provided here.
Write to us at outlookmoney@livemint.com
*******
CONNECT
Know
Common online trading problems and solutions
• Delay between filling in an application form and getting a username and password: Approach two or three brokers after assessing their brokerages and checking references with users.
• Ticker not updated: Open NSE and BSE websites
(www.nseindia.com, www.bseindia.com) and verify prices before ordering.
• Online mutual fund redemption: If you buy MFs online, your only option most of the time would be to redeem it online.