De-tariffing has encouraged insurance companies, especially private ones, to design innovative products based on individual needs. Today, some unique insurance policies provide covers for pets, wedding cancellations, adventure sports, etc. There are policies that insure expectant mothers for disability during pregnancy or congenital anomalies at the time of birth. Specific covers like wallet insurance reimburse losses incurred due to misuse of credit or debit card. These policies are not for everyone, but if you have special needs you could consider them.
Travel policies
A travel insurance policy covers unexpected medical and non-medical expenses when you are travelling abroad. With most of these policies you also get benefits for eventualities such as lost baggage, loss of passport or a delay in flight, as well as facilities such as cashless hospitalisation worldwide. While this policy is more known and utilised than some of the other niche policies, we shall elaborate on the subject in our April issue.
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These are existing third-party covers that are tweaked to suit requirements. The wedding policy, for instance, includes cancellation of the event due to an earthquake or floods (the list is more exhaustive) at the venue, material damage to property (stage, sets, wardrobe) due to fire, public liability, etc. If such a disaster occurs and you want to file a claim, you will need to submit all invoices, booking receipts and bills representing the expense for organising the event. As this is a customised policy, you have to state your requirements precisely and clearly in the proposal form while taking the insurance. Usually, the policy provides a cover for two to three days till the wedding date. The rates vary depending on the evaluation of individual risks, venue, type of decoration and number of days. The number of guests also influences the premium as public liability towards the third party for injury or damage is also covered.
Art insurance
Imagine picking a Tyeb Mehta painting for Rs 1 crore and having somebody accidentally spill wine on it? Here's where art insurance comes in handy. The premium for such a policy is usually 0.25-1 per cent of the sum assured. Under this policy, the properties of collectors, museums, art galleries, auction houses and art funds are covered. Every type of art, including paintings, sculptures, manuscripts, carpets, antiquarian books, vintage cars, coins and stamps (most of these are excluded under householder's policy), can be insured. Some insurers offer extra services such as transit supervision and storage.
Kidnap and ransom cover
This policy has been pulled out of the archives and brought into the limelight. It is designed specifically for corporate executives and celebrities. The objective of the policy is to assist the insured in managing the crisis, ensuring the safe release of the victim, and covering any ransom paid. Sometimes, the policy provides extra options for a fee, such as the expense for hiring an independent negotiator, cost of travel/accommodation for the insured person, cost of medical/psychiatric care for the released person, reward for an informant, which leads to the arrest of the criminal, and personal accident as a direct result of kidnapping.
