Assets or possessions that have a monetary value and have a chance of getting lost or damaged can be covered by general insurance policies. The numerous insurance plans that are available with various companies can be a maze if you are not clear about your needs.
A proper insurance scheme can address your needs and get you a wider coverage for a lesser premium. Here are a few tips insurance that can help you choose with care: Choice of Companies: Unlike life insurance, for general insurance, it is difficult to predict which company is better than the other, as products and features will be the same for all. Apart form this, the rates are standardised as per IRDA regulations.
However, components such as OD discounts, loadings, voluntary/compulsory deductibles may vary from product to product and company to company. Getting the Right Insurance Broker: In general insurance, only bargaining will bring you good quotes and options. So, in order to get the best available coverage and rates, an insurance broker who knows your business is always better than an agent who represents a single company. A good insurance broker will have tie ups with many companies and have got the experience to compare the products and quotes of different insurance companies. This will help you to get you the best in terms of rates as well as products.
Assess your assets: Estimate the assets correctly that needs to be insured and update them on your policy. This will avoid the risk of under insurance or over insurance. For contents insurance, it is required to list the valuable contents and estimate their replacement value. Make a note of serial numbers or identity marks for electronic items and machineries.
For commercial policies, assess the average value of the products in your premises and their possibilities of wear and tear. Review the recent law suits and settlements in your field. Also talk to your peers and find their level of their coverage.
If your house/office is in a rented premise, check your agreement carefully. You may be covered by the owner’s policy. Keeping Policy up to Date: It is important to keep your policy up to date to ensure that you are covered at the right level for the right amount of money.
Checking the amount and value of your assets against your insurance cover on a regular basis is highly recommended during policy renewal time. Always ensure than your policies are renewed at least a day before the date of expiry. Because, if an event occurs even in an hour’s gap between policy expiry and renewal, the claim will not be considered. Tailor Made Policies: Insurance companies today sell products in combinations as package policies, both pre underwritten and underwritten after considering the needs of a customer. Such tailor made package policies available combine categories which comes under one roof. For example, a business owner’s assets may also include the property of his clients in his premises. So, if a fire damages a customer’s car in your workshop, you are liable to your customer also.
A Commercial Package Policy combines both property and liability insurances, covering your liabilities along with your assets. Buy an insurance package of policies, which may be less expensive than purchasing individual policies. It not only save your premiums, but combines various aspects which otherwise may get omitted. Also, it releases the hassles and head aches of renewals.
Read the underwriting guidelines carefully:
It’s important to understand each policy terms and conditions completely before finalising. Take time to go through the underwriting guidelines to know about the coverage, extensions, riders, omissions, voluntary / compulsory deductibles.
Claims:
* Make contact with your insurance company as soon as possible in case of an event to register the claim.
* Do not conduct major repairs before contacting your insurer.
* For all claims that involve a third party injury, a GD entry or FIR is required to be submitted along with the claim form.
Purchasing the right insurance product at the right level to cover your assets like your home, car, and furnishings will ensure that if you ever experience damage or loss to these key assets you will be able to replace these and get back on your feet quickly.
(The writer is the chief executive officer of bankbazaar.com)