Under what circumstances will costs incurred due to cancellation of a trip be covered? Will it include travel, stay as well as non-refundable sightseeing costs?
Trip cancellation is a very wide cover and covers cancellation due to several unforeseen reasons. These include unforeseen disease, illness, injury or death of the insured’s family member; termination of employment or layoff affecting the insured or the travelling companion of the insured; inclement weather conditions causing cancellation of trip; flood, fire or a natural disaster making the place intended to be occupied or visited by the insured uninhabitable; and a terrorist incident in a city/destination listed on the insured person’s itinerary. The policy mentions the maximum insurance amount that will be paid in case of trip cancellation. If the trip gets cancelled due to any of the reasons given above, the insurer pays up to the maximum amount specified in the policy. Usually, this benefit is around $500-600 (Rs23,700-28,840). The amount can be used to defray travel and stay cost.
I am going for a European tour through an operator. Do I need to take a travel insurance or the operator would have taken it already? If yes, should I still take an additional cover?
Normally, operators do not take travel insurance. Check with your travel operator if it does. If the operator has taken a cover, check the amount of cover for hospitalization. It should not be less then $500,000 per person. If the cover amount is less, ask the operator to enhance it even if it means that you have to pay the extra premium. In case the travel operator has not taken insurance, it is important get your own cover. Travel insurance is an important component of your travel kit.
Is householder’s policy transferable from one property to another? What is the procedure of valuation in such a case?
The policy can be transferred to a new property by way of an endorsement. The address of the new property will be added and that of the earlier property will be removed. The value to be insured for (sum insured) should always be the reinstatement value or the amount the insured will spend to buy or make the property today. As a thumb rule, the cost of a residential building for the purpose of insurance should be around Rs1,000 per sq. ft of covered area. In case expensive materials, such as Italian marble, have been used in the house, the per sq. ft amount can be increased to Rs1,200.
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