When a natural disaster strikes, the magnitude of destruction that it creates is unbelievable. It often takes a significant loss for people to recognise the importance of having accidental insurance policies that offer broad protections.
Remember the agony caused by Nepal Earthquake in 2015? More than 8500 people lost their lives and 21,000 injured. 50% of Nepal’s GDP was affected owing to the damage of $10 billion. Or for that matter, ‘Mumbai floods’, where houses are filled with water, transport disrupted, vehicles stranded in the water and what not!
No one wants to awaken the morning after a disaster to find all their worldly possessions destroyed. If you live in an area that’s at high risk for any of the natural calamities, purchasing insurance is crucial. Here are the four insurance covers that can trim your losses:
Protect your Shelter with a Home Insurance!
It takes several years of planning and a massive amount of money to buy or construct a home. Unfortunately, most us keep it exposed to various risks. We purchase insurance for vehicles, mainly because the law mandates it, but very few people buy insurance for their homes.
Any natural calamity, like flood, storm or an earthquake, can damage your property. Usually, people are known to secure their homes through a basic fire insurance policy that covers the house and its content against fire and other allied perils such as lightning, storms and floods. The cover against the calamity of an earthquake is typically an add-on cover, and the premiums, in this case, increases depending on the geographical zone the house falls in.
When you opt for a home insurance policy, it is essential that you read the documents carefully to examine the items that have been excluded and included in the policy. If you feel that specific events need to be incorporated, feel free to talk to the insurance company and get it covered. Although it may increase your premium, it provides you with an exhaustive coverage.
Safeguard your Family with a Term Insurance!
An unexpected natural disaster such as an earthquake or floods can completely change someone’s life. What if a person, who is the only earning member of the family, becomes a victim of such calamity? Hence, having a term insurance is much needed!
Term insurance primarily provides coverage for a certain period of time or years, and if the insured dies over the policy tenure, a death benefit is paid out. This ensures that the victim’s family remains financially secure even in his absence.
Protect yourself with a Personal Accident Insurance
More than 250 people were injured in the 25 April 2015 earthquake in India, around 77 were hurt in the one that hit on 12 May. When a natural disaster like an earthquake or flood hits, the probability of being seriously injured or disabled is quite high. This is when a personal accident policy comes to aid.
A personal accidental insurance offers financial compensation to an individual if he meets with an accident that leaves him permanently or temporarily crippled. A personal accident policy has the following covers:
- Death: Lump sum compensation paid, usually 100% of sum insured
- Permanent disability: Lump sum compensation paid, again 100% of sum insured
- Permanent partial disability: Portion of the sum insured paid
Health Insurance to the Rescue!
Having a health insurance policy in place is extremely important. When an injury is caused due to the natural calamity, your health policy will provide the required coverage. It will cover for your:
- Trips to the emergency room
- Outpatient care
- Treatment in the hospital for inpatient care
- Prescription drugs and much more
The crucial point we are trying to make here is that natural calamity insurance is of utmost importance. But before you buy it you must carry out adequate research. Make sure that you know well the area that you are residing in, and take into consideration all the possible calamities that your area is prone to.
Read about the accidental insurance and auto personal accident policy products on the insurance companies websites. Dig into details about what are the disasters that they cover. As the last step, make sure you have a chat with the representative of the insurance company about what risks are covered.
It’s good to be optimistic, but, we cannot ignore natural calamities by saying that “such things will not happen to me!”. So, better not leave things to chance and make a wise decision by getting insured!