No matter which part of the country you reside in, the big fat Indian wedding is likely part of your culture. Rising costs and improving living standards mean that even average weddings today are costly affairs. Should anything go wrong in these events, the financial vulnerabilities are sky high. Thankfully, with growing financial awareness and the availability of insurance plans, people are opting for wedding insurance plans to safeguard their risks. We’re in the middle of a wedding
An overview of wedding insurance
Wedding insurance plans offer a protective cover against financial losses should a wedding event gets cancelled. The cancellation can be on account of many possible reasons including theft, personal accident, damage to the wedding hall, or a no-show by a vendor. Wedding insurance plans can be customized depending on the risk factors involved.
The significance of wedding insurance
Weddings are typically among the biggest expenditure an Indian family will undertake. Cost inflation means that weddings, no matter how big or small, do not come cheap. Rising costs also means a higher risk, should anything go wrong during the wedding.
From a failure of service by vendors, to theft, accident, or sudden illness to the bride or groom, the possibilities are endless. A last-minute wedding cancellation can lead to serious financial losses. Thankfully wedding insurance now offers protective cover against all such eventualities. With the right wedding insurance, you can recover your lost money allowing you to postpone the big day without worrying about a financial loss.
Inclusions and exclusions
Typical marriage insurance covers offer protection against cancellation of wedding due to a theft, burglary or damage to the venue on account of any fire or disasters. If the policyholders skip the weeding on account of personal injury, hospitalization or death, the same gets covered by the insurance plan.
Successful marriage insurance claim can mean you can get back the money spent on wedding card prints, any advance paid to the caterer, or wedding hall bookings along with advances paid for decorations, hotel reservations, ticketing etc. as per the terms of the opted insurance cover.
Usually, marriage cancellation due to mishandling of essential equipments like lights or music is not covered by the insurance plan. Any self-inflicted injury or suicide by the persons insured also do not validate for a claim. Most wedding insurance plans also exclude a ‘cold feet syndrome’ where the bride or groom, or their family members, back out of the wedding.
Things to know before opting for a wedding insurance:
# Wedding requires a lot of planning and some wedding insurance plans allow you to opt for a cover up to two years before the wedding date.
# The premium rates for wedding insurance can broadly vary from 0.5-3% of the total cover depending on the various risk parameters.
# A wedding insurance does not necessarily mean a protection just for the D-day. You can opt for inclusion of all your subsidiary marriage functions as part of the insurance policy.
# Opting for an exotic destination wedding where the stakes are high? You can talk to insurance service providers or seek tailor-made insurance packages for such large scale weddings.
# For a successful claim all valuation certificates for jewelry need to be submitted along with payment details to vendors. For a successful claim, ensure all wedding-related expenses are properly documented with receipts and payment proofs.
With low premiums and growing financial awareness, wedding insurance offering a protective cover against any last-minute cancellations due to unforeseen circumstances are gaining popularity.
(The writer is CEO, BankBazaar.com)