Just after one week of Nepal tragedy, insurance companies are flooded with people queries on how to secure protection for their life and property. Benefits of life insurance and other policies are tremendous as they bring financial securities to your family to meet expenses like quality education for kids, the marriage of children etc. when you are gone.
Whether it’s Odisha Cyclone in the year 1999 or Gujarat Earthquake in 2001, India experiences natural disasters like tsunamis, cyclones, and earthquakes etc. regularly. These unfortunate events cannot be stopped or often predicted. However, buying effective insurance cover for you and your family can help in minimizing the loss caused due to such catastrophes.
Here are some of the tips which you can consider mitigating the financial impact of natural disasters:
1. Insuring Your Home
According to facts and figures, more than 76% of Indian coastlines are prone to tsunamis and cyclones. More than 27% of Indian landmass is exposed to intense earthquakes, and still very few people are inclined to buy home insurance. Buying home insurance is not very expensive, and the policy covers all the risks that your home and valuable are exposed to.
For example, 1,500 sq. ft. house can be covered for Rs 50 lakh against natural calamities in just Rs 1,700 a year. Insurance companies can even offer discounts if you buy a comprehensive home policy with additional coverage. Home insurance can greatly minimize your cost of repairing your damaged house after a natural disaster.
2. Insuring Your Vehicles
Due to flood water entry or collapse of compound walls during natural disasters, your valuable vehicle could be severely damaged. You have to bear the expenses of vehicle cleaning due to water or mud deposits. The motor insurance add-on covers can help you to overcome financial burdens which are the result of the natural disasters.
The Engine Protector Add-on cover can help you to recover any vehicle engine damage issue because of the seepage of water into the engine. A depreciation cover can handle vehicle replacement and repair cost. Such insurance covers can be purchased as riders under your term insurance plans to avail the benefits of life insurance along with motor insurance coverage.
3. Insuring Lives
- Life Insurance
One of the important benefits of life insurance is to provide protection to your family in the absence of the earning member. The premium rates are normally low, and many life insurance policies cover accidental deaths due to natural disasters.
You as an insurance buyer must check with your insurance company what types of natural calamities are covered by their life insurance plans. You can also opt for a rider along with your term insurance plan such as accidental disability rider to cover disability as a result of an accident.
- Personal Accident Insurance
The chances of facing permanent or partial disability due to natural disasters are higher than chances of death. Permanent or partial disability severely impacts your money earning capabilities which result in negative financial circumstances in your life. Personal Accident insurance helps you to cope up with these financial hardships.
In case of death or permanent disability, you get 100% of sum insured while in partial disability scenarios some percentage of the insured sum. You can also take this policy as a rider under your life insurance plan to avail the benefits of life insurance along with personal accident coverage.
4. Your Personal Disaster Management Plan
While buying insurance to cover your medical and damage costs is great, there are many other factors you should consider reducing the actual loss or damage due to a disaster. This can be your personal disaster management plan. Following common steps can go a long way in keeping your family together and safe in case of large scale disasters:
- Decide a place where all of you will meet after a disaster if you are unable to contact each other
- Maintain an emergency fund
- Ensure your family has access to basic sanitation, drinking water and food after the disaster
- Revisit the house structure to ensure minimum damage to lives inside the house
- Also learn about the secondary calamities and how to avoid them, for example, fire after an earthquake or storm.
Remember that insurance plans will only cover your expenses after a loss, and your first aim should be to minimize the loss itself. However, benefits of life insurance are too important to ignore, and you must ensure that your family has access to them.