Most Indians prefer not to spend on home insurance despite being aware of its importance, reveals a Bajaj Allianz survey.
Bajaj Allianz General Insurance Company conducted a survey of 1,200 people from New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad and Pune and non-metros like Jaipur, Surat, Nagpur, Jalandhar, Chandigarh and other towns across India.
Around 60% of respondents were home owners while 40% lived in rented accommodation.
Around 75% of respondents were aware of the importance of home insurance and 64% of homeowners were aware that earthquakes and other natural calamities posed the highest risks to their house.
Despite this, 70% of respondents did not have a home insurance policy, the survey revealed. Only 30% of the respondents had home insurance for either their home or its contents, noted the survey.
Homeowners felt earthquakes and other natural calamities were the biggest risks their homes were exposed to, followed by fire and thefts and burglaries. But the demand for this cover was low because the general public found home insurance products and clauses complicated and difficult to understand, revealed the survey.
Respondents also thought home insurance policies were expensive and involved too much hassle. Sasikumar Adidamu, CTO, non-motor insurance, Bajaj Allianz General Insurance, said it was important for the industry to simplify the process, and relay the importance and benefits of a home insurance policy to the common man.
Contrary to belief, a home insurance policy is a very affordable financial tool and covers a wide array of risks a home and its contents are exposed to, such as fire, theft or burglary, natural calamities or electrical and mechanical breakdown, Adidamu said.
The average Indian spends most of his savings in buying a dream home, so it is imperative to have a solution to the risks the home is exposed to, he said.