Wedding Insurance – Do we really need this in India?
Life is uncertain and any day, anything can happen. But what, if ‘that day’ is your wedding day? With the weddings becoming a big and costly affair, involving so much of expenditure on each head, it can be an expensive proposition when anything goes wrong like close relatives meet an injury or fatal accident, vendor unexpectedly going out of business etc. For a relatively small fee, wedding insurance can be a way to offset some of the possible disasters that can ruin your special day. It can ease the financial burden one might face in case of an unforeseen event due to which the wedding goes for cancellation or postponement. What is Wedding Insurance in India all about? What are the benefits of Wedding Insurance? Should you really need to opt for Wedding Insurance in India?
What is Wedding Insurance in India?
Wedding insurance usually covers postponement or cancellation of wedding due to the reason of sickness or injury to the bride, groom or any other person essential to the wedding. It, basically, protects the couple’s investment from the circumstances which are beyond their control, and reimburses expenses incurred. There are certain things that are covered by the insurance like site, vendor, weather, sickness or injury. A specified amount is fixed under each head that can be claimed and a deductible also applies.
What are the Benefits of Wedding Insurance?
Here are the benefits of wedding insurance.
- The scope of wedding cover includes cancellation of the wedding event due to natural and manmade perils that includes damage to property and injury ordeath.
- Wedding insurance offers cover on the Public Liability front where such injury or damage as a result of accident at the wedding event venue during the policy period.
- Wedding insurance covers damage caused to property due to natural and manmade perils and includes the temporary set up, jewellery and others.
- The Personal Accident cover under such policies offers compensation for pre-declared individuals against disablement and death.
Which are the companies that are offering wedding insurance in India
Wedding Insurance is not very common in India. Here, people hardly go for it but now with the changing scenarios and increased cost of weddings, some sought for the wedding insurance to cover up the losses. There are few Indian companies that offer Wedding Insurance coverage like ICICI Lombard, Future Generali, Bajaj Allianz. These companies provide policies with different cover options.
What are the approx premiums for wedding insurance?
The premium for wedding insurance depends upon a lot of factors like quantum of risk covered, time horizon for which the risk is to be covered etc. The companies usually provide a customized cover. Broadly, the premium range varies from 0.75-1.5% of the total cover depending on the risk factors.
As an example, the company Bajaj Allianz Insurance offers four fixed options for cover worth:
- Cover worth Rs. 20 Lakh- Rs. 2252 annual premium
- Cover worth Rs. 35 Lakh- Rs. 4004 annual premium
- Cover worth Rs. 58 Lakh- Rs. 6232 annual premium
- Cover worth Rs. 73 Lakh- Rs. 8273 annual premium
When to take Wedding Insurance?
The duration of the wedding insurance depends upon the policy and the company you opt for. Most policies allow you to take the cover upto two years before the wedding day.
What happens when wedding cancels or postpones for any unforeseen circumstances?
On the wedding day, a problem may arise regarding the site, weather, sickness or injury of bride, groom or other essential people due to which the wedding needs to be cancelled or postponed. It incurs heavy losses to both the parties. So, there is a maximum specified amount that can be claimed under various heads from the insurance company.
As Wedding Insurance is a non-standard product, the proofs are required to get the claim.
What is not covered under Wedding Insurance?
A wedding insurance does not cover the following:
- If the wedding couple changes its mind and the wedding gets cancelled, it is not counted.
- Watches, jewellery (unless written in the policy), semiprecious gemstones or pearls are not covered, even if they are attached to the attire.
- The wedding ring may be covered by the policy but the engagement ring is certainly not.
- If there is cancellation of the wedding event due to political bandh or civil unrest is not considered for compensation.
- Any acts of terrorism in the city.
- The persons covered under the policy are kidnapped during the marriage event.
- If the claim made is with regard to persons not reaching the venue on time due to unavailability of transport services.
- Consequential losses (after wedding time) due to cancellation of the wedding event.
- Death or injury caused to the persons insured due to war or war like situation.
- If the persons insured have self inflicted injury or suicide.
Wedding Insurance – Do we really need this in India?
Well! This depends upon how much a couple is spending on the wedding event and your belief that you need to have an extra cover over and above the existing cover you might have. One also need to think on how worried you are regarding the things going wrong and how important peace of mind matters to you. It is essential for someone who is going for monsoon wedding as the weather is quite uncertain at that time. Every insurance policy and every wedding is different. One has to be very careful with the clauses contained in the policy as to what is covered and what not and to what extent.
In India, wedding insurance is slowly trending now as they are spending huge amounts and one want to ensure they cover. However Indian mindsets are strong that they don’t believe in cancellation or postponement of marriages once planned, hence wedding insurance is going at slow pace.
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Wedding Insurance – Do we really need this in India