You spent a neat Rs 20,000 to buy the pedigree Labrador pup you always wanted as a pet. And just when the furry black ball was beginning to find its way around the neighbourhood, the unthinkable happened. A careless car driver brought its life to a tragic end. You were heartbroken. Nothing can lessen the emotional trauma of losing a pet, especially in such circumstances. But if you had insured your dog, you could still go and buy another pup—not a replacement but someone to help you get over the sorrow—without incurring additional expense.
And it can be quite an expense. A Great Dane pup can cost up to Rs 50,000. A Siberian Husky pup comes for over Rs 60,000. A British Mastiff can command a six figure price. If you spend that kind of money, it makes sense to insure your pet’s life by paying a small premium. Insuring the life of a healthy one-year old male dog for Rs 20,000 would cost the owner about Rs 600- 1,000 annually.
You can get your pet insured for any amount ranging from Rs 2,000 to Rs 50,000 depending on the breed and the insurance company. While Oriental Insurance covers pets for up to Rs 10,000, at Bajaj Allianz General Insurance Company the maximum cover is Rs 20,000. New India Assurance extends cover for up to Rs 50,000 if you can prove that the value of your dog is that much. “You need to get the valuation done by a qualified vet,” says Arun Gupta, assistant manager, New India Assurance. “We can even extend the cover beyond Rs 50,000 in certain circumstances,” he adds. So, getting your Rs 1-lakh dog insured is not a problem if you meet certain conditions and can submit the relevant documents.
The death of a pet is not the only mishap you need to take cover against. Imagine you are walking your best friend in the park when things suddenly go out of control and it bites someone. Many people think it’s great to have a dog. What they don’t realise are the consequences of the dog attacking and injuring somebody. Besides the embarrassment, you would probably be required to foot the medical bill of the injured person. And if that somebody drags the matter to court, it could mean expensive trouble. Not if you have pet insurance that covers third-party liability. For a small premium of Rs 150 a year, you can insure yourself against third-party liability of up to Rs 15,000.
However, there is a gaping hole in the insurance cover for pets in India. Companies do not cover medical costs incurred for the treatment of your pooch. In comparison, in the West, insurance policies cover not only the treatment but all diagnostic tests, hospitalisation, MRI and CAT scans and X-rays. Insurance is necessary there because vet fees are very high. In the US, for instance, a visit to the vet can leave the pet owner poorer by almost $200 (Rs 8,000) while a surgery can cost upwards of $500. That’s why pet insurance is such a flourishing business in the West.
Medical costs are significantly lower in India. A private vet charges Rs 100-500 as consultation fees, initial vaccination shots for a dog cost about Rs 2,000 while surgeries cost Rs 4,000-5,000. The yearly shots costs do not cross Rs 1,000. Yet, insurers need to design plans that also cover medical costs to attract customers such as Ghaziabadbased Balwant Rai.
In developed countries, particularly the UK and the US, pet insurance is also necessitated because of stringent third-party clauses. For instance, if someone crashes his car into a wall to avoid running over your dog, you could well be covered for the expensive repair of the car as well as the wall. Some policies also pay for holiday cancellation if your pet is sick or injured, and for keeping it in a pet crèche if you have to be hospitalised. Advertising costs and rewards are also paid if your pet gets lost or is stolen. In the UK about 19% of pets are insured, while in Sweden it’s 60%.
Most pet insurance policies in the country are dog oriented. This is also because many species of birds and animals are not allowed as pets in India. “Insurance is mainly done for pedigreed dogs which are rare or valuable or both,” says Pavanjit Singh Dhingra, vice-president of Prudent Insurance Brokers. Cats by nature are not attached to an owner so they are not covered. Also, they have a higher mortality rate than dogs. Rabbits are covered but the exclusion clauses run into several paragraphs. Also, don’t expect to get your goldfish or tortoise covered.
Pet insurance is an underserved area in India largely because not too many people own pets. “In the absence of marketing by insurers, prospective and existing customers are not aware of pet insurance policies and hence seem to be satisfied by what is available,” says Rahul Aggarwal, CEO, Optima Risk Management Services. But as the cost of owning a pet increases, insurance companies are likely to offer a more comprehensive cover to your pet. “We feel that pet insurance will be a thriving segment of the insurance industry in the next three years,” predicts Aggarwal. That should be music to the ears of man’s best friend.
