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Chat Transcript
30 Apr - 01:00 hrs
Arnav Pandya | Financial Planner
Should I insure my home?
Chat Transcript
| aakshaayp: How much would insurance cost? |
| Arnav Pandya : The cost for a house insurance depends on what you are insuring. There are two different things that can be insured. One is the insurance for reconstruction of the physical structue of the house and the second aspect is the insurance for the items present within the house. Depending upon the values that are present for these items the cost of the insurance cover is determined. However what is significant is that the insurance will not cost much in the context of the coverage that you are able to get. |
| aakshaayp: How do I choose a policy? |
| Arnav Pandya : A house insurance policy is chosen on the basis of the features that you want in terms of the items covered or the amount of coverage or the period of coverage. For example you might want to cover your house for structural damages for 10 years and if a particular insurance company is offering this feature along with adequate amount of coverage then you might select this for your needs. On the other hand if you are looking for coverage of items within a household then you would want to choose a policy that includes all the different valuables present in your house. On the whole look for your requirements for coverage and then try and match this with the insurance company offerings. |
| guest: what are your views on the recent campa cola worli incident?? if the owners have insured their house will they get benefit?? |
| Arnav Pandya : From my understanding of the issue some of the floors in the buildings have been slated for demolition since they are illegal. If you insure your house and then this gets damaged due to one of the conditions covered by the policy then the insurance cover will provide you with a sum for its reconstruction. Again delinking these details from the worli incident since exact details are not available - usually if your original construction is illegal then there is no question of reconstructing it |
| kishen90: The recent scam bought out by cobra post which revealed that money were being laundered through insurance route,what changes must be done by IRDA to avoid such scams further? |
| Arnav Pandya : There are norms for Know Your Client that are present in the country. Usually if you go to buy an insurance policy the insurance company will ask for all these details and you have to produce this. There is no problem with the nature of the norms but only with respect to its implementation. The cobra post expose showed how people were willing to go around the norms to generate more business. IRDA should simply concentrate on proper implentation of the norms so that this kind of evasion does not take place. Better audits and strict action in case failure to follow the norms would improve the situation. |
| guest: market value of house is 1.25cr. for how much should i take insurance cover? ramesh |
| Arnav Pandya : The market value of the house will not have much importance from the point of view of the insurance policy. The cover for the structure will be available in terms of the cost that would be required to reconstruct this. Similarly the value of insurance for the items within the house will depend on the details of the items, their age etc |
| moderator: This chat has now ended. Thank you Mr. Pandya for sharing your views, and thank you viewers for your participation. |
