Little-known insurance policies you’ll find use for
You know you can insure your life, health and car. But did you know you could also buy cover for your cycle, jewellery, smartphone, newest possessions and even your car keys?
Insurers are in the habit of heavily promoting policies you don’t need. You may remember ads for child plans, pension plans and unit-linked insurance plans, all of which are unnecessary and expensive. The policies that you should have are rarely promoted – term plans, if you have dependents, car or two-wheeler insurance, which is mandatory if you own a vehicle, and health plans, which you have no excuse for not being on. This isn’t where it stops with insurance plans, though. Though never ever promoted, here are five plans unlikely policies you may find very useful:
It’s not a popular product – not yet, at least. Currently, only a couple of public sector insurers (which also insure cycles) offer this product, aside from manufacturers or retail stores. You can only insure your phone for the first year. It could still be worth much on the secondary market, but insurers don’t generally insure phones over 12 months old. It isn’t expensive. Nokia, for example, which has a tie-up with New India Assurance, will charge 1.25% of the total cost of your phone, subject to a minimum of Rs50. For covering damage, an insurance policy is far from worth it because the standard warranty covers it all. For cover against theft, though, phone insurance is recommended. Given that you need to make that careless mistake just once in a whole year for it to be stolen, it may be worth spending the money on insurance. Go here for more on this product.
Sold by: New India Assurance, Nokia, The Mobile Store
Pedal cycle insurance
Has your bicycle ever been stolen? Or do you carry it home with you because you’re afraid it’s unsafe in the compound of your building? Then consider insuring it. It doesn’t have to be an expensive bicycle either. New India Assurance will insure any bicycle. While the premium does go up based on price, it’s well worth the price, given just how easy it is to break a lock. Insurance for a Rs20,000 cycle will cost you around Rs1,000, whereas for a Rs4,000 cycle, it will be around Rs100. The insurance covers any damage caused to the bicycle by an accident and loss in case of theft. Of course, no damage due to wear and tear is covered. It also covers damage caused to a third-party or property on account of your cycle.
Sold by: New India Assurance
How many times have you attended a wedding wearing jewellery worth over Rs2 lakhs? Or even Rs50,000? Yes, insurance would bring peace of mind to these situations. Home insurance policies and bank lockers cover your jewellery only so long as they are in your house or the bank locker, respectively. What you need is insurance when it’s on your person and at risk of being stolen. This is what Axis Bank offers with jewellery insurance. It provides complete security for “gold/jewellery, when it is worn by the policyholder in person or while being carried to the bank lockers”. For most jewellery, you’ll need to submit a valuation certificate. The premiums are as follows: Rs2,499 for cover of Rs2 lakh, Rs3,249 for cover of Rs3 lakh, Rs4,999 for Rs5 lakh and Rs9,999 for Rs10 lakh.
Sold by: Axis Bank
Product protection insurance
Have you ever bought a product, only to have it stolen a week later? This product, which isn’t a substitute for jewellery insurance because it won’t cover that, will reimburse you for any loss due to burglary, theft or accident within 90 days of your purchase. While this product is bundled with credit and debit cards as well, TATA AIG offers it as a standalone policy as well. Aside from the above-mentioned cover, it will also cover any price difference between the price charged to your payment card and a lower advertised price for the same item. So it claims to relieve you of the expenses caused by misleading advertisements. The third cover is a key replacement cover. If you lose a key to your vehicle, you won’t have to foot the expenses.
Sold by: Tata AIG
Portable items are always at risk of being stolen or damaged in an accident. ICICI Lombard offers an all-risk cover that will insure your laptop. It has a deductible of 1%, subject to a maximum of Rs5,000, but will cover, in addition to theft and damage by accident, even electrical and mechanical breakdown on payment of additional premium. The latter may be unnecessary, as your warranty may cover it already. The basic cover, however, is a good option. The premium will depend on the cost of your laptop. If yours is an old laptop, the market value will be the basis for the premium.
Sold by: ICICI Lombard