Life, property, etc., are both precious and fragile, which need to be protected as well as to be flourished. Loss suffered due to unforeseen events such as accidents, burglary, would not only give you a mental agony, but also you have to face upto the demands of rebuilding your property from scratch.

It is at such times that one realizes the necessity and value of insurance. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any misfortunes. Insurance is desired to safeguard oneself and one's family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. A person covered with household insurance will find the insurance company stepping in with the payment of the insurance claim, and thus easing the financial burden.

Insurance can be taken against loss/damage to the following:

• Building and contents (excluding jewellery and valuables)
• Jewellery and valuables
• Domestic appliances, TV, music system, VCR etc
• Plate glass
• Baggage while on travel
• Death/disability by accident
• Liability to third parties

While taking the insurance policy, you will have to place a value against each of the items for which insurance is required. This value is known as the sum insured. In the event of a claim, the insurance company will pay for the actual extent of loss/damage subject to an upper limit of the sum insured for that item. The insurance company may also impose a cap on some of the claims, for example Rs. 25,000 in case of third party liability on account of personal injury or damage to property.

In the case of personal accident insurance, the amount on insurance cover selected by you will be paid

You can choose your own policy by opting to insure only a few of the above listed risks. The items to be insured and the sum insured can be changed every year. The premium to the insurance company will have to be paid every year. At the end of the year, you can stop the insurance policy if you so wish by not renewing the policy.

The premium is quoted as per Rs. 1000 sum insured. A table of approximate premium rates is given below.

In the event of theft

• Lodge forthwith a complaint with the Police
• Give immediate notice to the insurance company
• Furnish to the insurance company details of amount of the loss or damage together with such explanations and evidence to substantiate the claim. This should be done within fourteen days

In the event of death under Personal Accident cover

• Notice of death to be given to the insurance company by the legal representative immediately
• Submit all certificates, information and evidence whether from a medical attendant or otherwise

In the event of bodily injury requiring medical treatment

• Prompt notice to be given to the insurance company
• Submit all certificates, information and evidence whether from a medical attendant or otherwise

In essence, in the event of a claim, all required documents should be submitted within fourteen days of the occurrence of the event for speedy settlement of the claim.

Most of us seek financial assistance from housing finance companies to buy our own house. A house is a cherished possession that is owned by the entire family. When we borrow money, the financier normally insists on the mortgage of a property. In the event of the unfortunate death of the borrower, who is normally the breadwinner of the family, the family is saddled with the difficult responsibility of repaying the outstanding loan.

This risk can be covered through wise insurance planning. Life insurance offers a tailor-made product that can pay the outstanding loan to the financier in the event of death of the borrower. The premium for this can be paid regularly over the duration of the loan or for a shorter period or in a single lump sum. The premium varies with age, duration of loan and duration of selected premium paying period.

Insurance companies provide a wide variety of insurance products. For individuals, widely known products include payment of money on death, hospitalisation, disablement, loss or damage to property and belongings, damages to third parties (e.g. damages to a person or property involved in an accident while driving a car), loss of baggage while travelling and so on. There are also certain other, less well-known products such as:

• Lump sum payment in the unfortunate event of a baby being born with anatomical abnormality or malformation
• Loss or disablement of a performing finger or limb of an artiste (e.g. a dancer) or sports player (e.g. the leg of a football player)

There is even a policy that covers the expenses of marriage being postponed or cancelled because of the bride / groom being unable to reach the marriage venue because of transport problems or law and order problems!