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Did you know that most houses in Japan were once built largely from bamboo and paper? While the end result was artistic, the reason for this was strictly practical, not aesthetic. Japan is frequently hit by earthquakes, many of them severe. Brick and mortar houses are not only expensive to replace, they cause a lot more damage and loss of life when they fall. To ensure minimal damage, the pragmatic Japanese used light and easily replaceable materials to build their homes. While India does not experience as many earthquakes, natural disasters are occurring with an increasing frequency. There's nothing we can do to avert a natural calamity. What we can do, however, is to ensure that we get the replacement value of the house, if it is damaged. It costs about Rs 5 a day to insure your house and its contents against such destruction. For a little more, you can insure your car, laptop, even your arms and legs, if you so wish. It all depends on the insurance policy you buy and the cover you take.
With the liberalisation of the insurance sector, general insurance has witnessed a lot of innovations. The 'one size fits all' approach has been long abandoned. Insurance companies are prepared to offer covers to suit every product. And so we have householders' policies being rewritten to cover the structure in case of destruction by natural calamities, insurance to cover expensive laptop computers against theft or data loss, and health plans to cover specific body parts. There are even policies to cover an unborn child.
While some of this might seem a tad excessive, the fact is that these products have been created to serve an existing need. With more people buying expensive goods, the need for such insurance products is likely to go up. The other advantage in favour of general insurance is that the premium is generally low. Also, while life insurance is invariably bought for all the wrong reasons (tax saving or investment), there is generally no confusion regarding the role of general insurance. You know that you're taking a cover against theft or destruction of your property, ill health or accidents.
Over the next several pages, we shall take a look at some of the major areas where insurance plays an important role: home, health, vehicles, as well as niche and littleknown covers. We also look at the sea change in the way such insurance products are being sold. Remember that this is just a peek into the large and ever-changing world of insurance; the Internet has a wealth of detail that we can never hope to replicate. What we have done, however, is to provide you with a comprehensive overview of the field, the products available and what they cost. Read on for details.
