ATM theft or chain snatching, your insurer will cover it

If you thought your home insurance would only cover damages to your house and belongings during theft or natural catastrophe, you are in for a pleasant surprise. General insurance companies are now offering cover for cash lost in transit from the ATM to home, chain snatching while on the road and also alternate accommodation for hotel stay in case of damage to home.

For instance, Royal Sundaram General Insurance has launched a product ‘Gruh Suraksha’ that provides tailored offerings across income segments – ranging from those with annual income of Rs 5 lakh to those with more than Rs 1 crore.

Nikhil Apte, chief product officer - product factory (health), Royal Sundaram told Moneycontrol that their aim was to cater to people across income segments. So the products include providing for alterrnate accommodation if the flat was damaged to incidents like flood, but would also cover loss of rent.

“We have tried to make it affordable for all salaried and business classes, by having a regular as well as a high-end version of the same product,” he said.

Earlier, home insurance covers would only cover fire and related risks apart from theft and burglary. Now, it has gone much beyond that.

Royal Sundaram’s cover includes cover for loss due to burglary introduced for the first time in building insurance, coverage for mobile equipment, external equipment like DG Sets, solar panels. Apte added that even if there is theft of cash while an individual is coming back home from the ATM, they will cover it under the product.

There is also an enhanced sum insured of up to Rs 50 lakh on contents, appliances & jewellery customers can either buy ‘building only coverage’ (1-20 years) or coverage for house hold articles (1-3 years) or both the coverages in a single policy.

Over and above this, special covers for burglary have come up which cover death and disability. Kotak General Insurance’s burglary care product will pay the sum insured if the insured person dies due to an incident of burglary or housebreaking which occurs during the policy period, provided that the death occurs within 12 months from the date of that incident.

It is not just jewellery that is there in the insured premises that is covered. New India’s Griha Suvidha plan covers even theft of jewellery that occurs outside the house due to incidents like chain snatching on the streets. Further, even if there is a breakdown of your household premises, this cover will provide for the expenses incurred due to this.

Even regular household chores like plumbing can seem to be a big hurdle, especially when you are new to a city. Insurers are now offering even services to cater to that.

Reliance General Insurance in addition to their home insurance policy, offers a free service loaded with features like ​plumbing assistance, pest control assistance, electronic gadgets repair assistance and medical contact information.

Apte explains that several home-owners now look beyond the standard benefits that are offered under home insurance policies.

Royal Sundaram’s cover even provides coverage for the household staff'. These include the persons including cook, sweeper, servant/maid, driver, gardener, cleaner and attendant, security staff among others. In case of death or disability arising out of and consequent (within 12 months) upon an injury sustained by the household staff, the policy will pay the limits.

At a time when home insurance is still not a priority purchase and insurers are seeking tax sops in the Budget 2017 to push the product to the masses, they are of the view that the variety of coverages offered will help them make it attractive as a crucial purchase as soon as one purchases a house or shifts into a new flat.