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From adventure sport to art; 5 lesser known types of insurance

Insurance facts: There are a range of other insurance products you should know of and buy if you have use for them.

By: | Updated: September 15, 2016 3:33 PM
From adventure sport to art; 5 lesser known types of insurance Insurance facts: There are a range of other insurance products you should know of and buy if you have use for them. (Photo: Reuters)

When you think of insurance, what comes to your mind? Life insurance, health insurance, auto insurance, and perhaps home insurance and travel insurance. That may be it for most people.

But there are a range of other insurance products you should know of and buy if you have use for them.

Here, we’ll discuss five such insurance covers that are not very well known but could be useful to a niche set of people.

Adventure Sport Insurance
When you get involved in adventure sports, your regular life insurance or critical injury insurance do not cover your risks. Such risks are typically among the first to be spelt out as ones that insurers will not cover. But this is changing. Following similar trends in the west, at least one insurance provider is now offering an adventure sports over in India—though it is an add-on to a travel insurance product. If you are an adventure enthusiast and involved as a non-professional in activities like bungee-jumping, river rafting, base jumping, hand gliding, ski jumping, scuba diving, paragliding, hot air balloon, etc., an adventure sport insurance can provide you with financial support for several hazards that could threaten your life or cause permanent disability. As per the rules of the policy, you must carry out these activities only under the guidance of certified sports professionals. The cover allows up to Rs. 1 crore in case of death or permanent disability. If you travel frequently for your love of adventure sports, this policy should be a must for you.

Wedding Insurance
Wedding involves huge expenditure and takes away a large share of one’s lifetime savings. If a wedding is cancelled very close to the marriage date, it can cause huge monetary losses to all involved parties. Sensing the requirement of a risk-mitigating product, some insurance companies have been offering wedding insurance for many years now. Wedding insurance covers the financial losses incurred due to cancellation of marriage due to specific reasons such as natural calamities like earthquake, fire loss, theft, or due to the demise of a relative in blood relation within a week of the marriage, or due to death or accident of bride/groom. If the marriage is cancelled due to a dispute between both the parties, then insurance does not cover such situations. If you have a marriage party in your family and you are planning to spend large amount then this insurance could keep you safe from financial losses due to cancellation on special circumstances.

Credit Card Protection
When you carry a credit card, there is always a risk that you may lose it and it may find its way into the hands of an unscrupulous person who may transact with it. Don’t worry if it really happens to you, because a Card Protection Plan (CPP) ensures that once you report the information of card loss, the CPP contacts the issuer and get your card blocked immediately. Not only that, in case you are travelling and unable to pay a bill such as your hotel bill, the CPP takes care of this as well. Also, CPP makes payments on your behalf for your tickets so that you can return home, and it also arranges cash (if you are travelling within India). The CPP protects your card from fraud as well. It will assist you when there is loss of key documents like your PAN card, lost mobile phone, etc. There are various plans available through banks and credit card companies in alliance with CPP India.
CPP membership can be taken any time for a period of one year. In the situation of card loss, theft or fraud, you must inform the CPP within 24 hours of the event. This is a very important product for people who keep most of their key documents and cards on their person travelling.

Jewellery/Gold Insurance
Possessing physical gold is tricky job due to the risk of burglary or theft. Normally, gold items kept at home can be covered under a comprehensive home insurance policy that protects the contents of your home. But under such a policy, the cover is allowed proportionately to the value of your home. There are some special insurance policies available in the market which allow focussed cover for jewellery and valuables. You are protected against loss from theft, burglary, accidents. The policy can also cover jewellery held in specified lockers. Some insurance companies also allow a worldwide cover against loss of jewellery. The main risks covered by jewellery insurance are loss due to fire, theft, burglary, snatching, baggage loss, and damages caused at the time of burglary.

If you invest a lot in jewellery and precious items, look out for insurance that widely covers your losses as specified above, and don’t settle for a basic home insurance cover.

Art Insurance
The price of art could be very high. If you are in the business or habit of buying pieces of expensive art, it may be wise for you to invest in an insurance cover for your artistic belongings. An art insurance cover includes various types of damages such as accidental damage, breakage during transit, framing etc. A tricky part of buying insurance for art is explaining the financial value of art since it’s not easy to ascertain such values. Normally insurance companies ask for the valuation report from a certified expert to ascertain the risk cover for an artistic item such as a painting or a sculpture. Art insurance is a must for art enthusiasts who often participate in exhibitions and have to travel with artistic belongings.

It is important that you select your insurance products carefully. Before selecting a comprehensive plan for all your needs, explore specialised insurance products in the market because they may be tailored better to your needs.

The author is CEO, BankBazaar.com

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