When insurance companies devise policies, they ensure that their own interests are protected above all. Little wonder then that all policies come with exclusionary clauses -- in fine print. It is desirable that consumers read the terms and conditions minutely to know the extent of the cover a policy provides them.General insurance companies offer policies to cover anything except life. A fire insurance policy indemnifies for loss or injury by fire to property. The hull, vessel and cargo, etc, of a ship are protected by marine insurance. Policies for property, household goods, animals, crops, motor cars, third party liability, and health are clubbed under miscellaneous insurance.
But insurance companies are not liable for any loss arising from war, invasion, hostility, civil war and rebellion. Similarly, damages caused by nuclear material, ionising radiations and radioactivity are not insurable.
Besides, most of the policies have their in-built respective exceptions. For example, the policy on buildingand contents takes care of the liability arising out of fire, explosion of a domestic appliance, bursting of water tanks and pipes, riots, strikes, earthquakes, landslides, floods, storms and cyclones, etc. But the insurer isn't responsible for valuables, like money, securities, stamps, bullion, deeds, bills of exchange, promissory notes, shares and stock certificates, business books, manuscripts and documents.
The policy on domestic appliances covers the breakdown of mechanical, electrical and electronic appliances. But there is no compensation for loss or damages caused by willful negligence or a pre-existing fault, which is the responsibility of the manufacturer.
In the case of a television set, the policy covers liability arising out of fire, explosion of a domestic appliance, riots, strikes, malicious acts, floods, storms, cyclones, mechanical or electrical breakdown, and burglary, etc. But the insurer is not liable for the theft of the external antenna unless the television set itself is stolen.The antenna needs to be insured separately. Similarly, the insurer doesn't entertain claims for the loss or damage to a television set caused by repairing or dismantling. The responsibility lies with the servicing agency.
Baggage insurance covers loss or damage to baggage carried by the insured while travelling. But, here again, the insurer is not responsible for deeds, bills of exchange, promissory notes, shares and stock certificates, business books, manuscripts and documents. Similarly, new purchases, which are made after the signing of the policy, are excluded unless specifically insured. The baggage insurance policy is only for travel undertaken in India. Any travel undertaken by the insured within the municipal limits of his domiciled place is not covered.
Obviously, an insurance policy is not a blanket cover for any loss or damage. At best, a policy provides limited relief. The cover can be stretched to the maximum, provided a consumer knows his risks and what the policies have to offer.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
