Insurance against natural calamity has not got its due in India because of lack of awareness.However, as we observe incidents around the world and in our country, we understand the necessity of being insured for it. Insurance against natural calamities is not a separate product but is included with home, auto, and business insurance.
What is covered?
Usually, insurance covers against natural calamities involve the following:
i) Fire
ii) Explosion and implosion
iii) Earthquake
iv) Lightning
v) Storm, cyclone, tempest, tornado, hurricane, flood and inundation
vi) Subsidence, landslides and rockslides
Despite the fact that insurance companies claim to have covered all risks under comprehensive insurance policies, you have to keep your eyes open as the coverage will change as per the type and the features of the policy.
You should read specifically the exclusion and inclusion section of your insurance policy carefully.
Does it cover floods, earthquake, tsunami, and other natural disasters?
If it does not, you should ask your insurance company to include them.
Your premium will increase but so will your peace of mind.
Providers
Since insurance is against the property, the protection against natural calamities is added to the insurance plan depending on what you want to insure. For example, auto insurance may have protection against natural calamities like flood.
Let's take a look at the insurance plans offered by various insurers and their coverage.
ICICI Lombard's Home Insurance covers fire, explosion and implosion, earthquake, lightning, storm, cyclone, tempest, tornado, hurricane, flood and inundation, missile testing operation, subsidence, landslides and rockslides.
ICICI Lombard Motor Insurance covers fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide and rockslide.
ICICI Lombard's Standard Fire and Special Perils covers losses caused by fire, lightening, riot, strike, storm, cyclone, flood and terrorism.
HDFC Ergo's Home Insurance covers fire, lightning, explosion and implosion, storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation, earthquake, volcanic eruption and other convulsions of nature.
Subsidence and landslide, including rockslide private car insurance.
HDFC Ergo's Private Car Insurance covers fire, explosion, earthquake, flood, storm, landslide or rockslide.
HDFC Ergo's Standard Fire and Special Perils covers fire, lightning, explosion, storm, tempest, flood, inundation group of perils.
Perils of nature or natural calamities (storms, floods, etc).
Tata AIG's Home Secure Supreme covers fires, earthquakes, floods, lightning, thunderstorms, storms, inundation, cyclones, landslides, etc.
Tata AIG's AutoSecure covers fire, lightning, explosion and implosion, storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation, earthquake, volcanic eruption and other convulsions of nature.
Subsidence and landslide, including rockslide.
Tata AIG's Standard Fire and Special Perils covers fire, lightning explosion and implosion, storm, cyclone, typhoon, tempest hurricane, tornado, flood and inundation.
Subsidence and landslide, including rockslide.
Bharti AXA SmartHome covers fire and allied perils, including earthquake.
Bharti AXA's SmartDrive covers fire, lightning, external explosion, earthquake; flood, cyclone and inundation.
Bharti AXA's Standard Fire and Special Perils covers fire, lightning, storm, typhoon, hurricane, tornado, flood and inundation.
Subsidence and landslide, including rockslide, and bush fire.
In most of the cases, these are covered under the plan mentioned.
However, in many cases, all risks are not covered.
For example, for people living in earthquake prone areas, earthquake disaster may not have been covered under a low premium plan.
It is better to speak with the insurance company about the covered natural calamities and excluded ones.
Points to note:
Protection against natural calamity is important. You should take it but do your research on policies offered by various insurers. The difference in premium may be significant.
In the inclusion and exclusion sections, if you find some items in the exclusion list but want that in your policy, speak with your insurer and see if you can include by paying extra premium.
For example, your policy might state that your car is protected against damages caused by fire, earthquake, and landslide.
However, tsunami and flood may have been excluded.
In this case, if your car gets damaged in a sudden flood or tsunami, you cannot claim anything.
In case of home insurance, document the belongings and take photos to be extra cautious in case you have to claim value for the belongings.
Finally, everyone should take a protection rider against natural calamities. Natural calamities strike without any prior notice.
Some amount of extra premium can help you stay insured and secure damage to your property.
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