Despite risk awareness, most Indians don't have home insurance: Survey
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Most Indians don't have home insurance: Survey

75 per cent of respondents were aware that home insurance was essential. However, only 30 per cent of the respondents had home insurance for either their home or its contents.

  • New Delhi,  June 17, 2015  
  • |  
  • UPDATED   16:43 IST
Despite risk awareness, most Indians don't have home insurance

The floods in Jammu and Kashmir last year and the recent Nepal earthquake are reminders that natural calamities come without any warning. However, most Indians prefer not to spend on a home insurance policy despite awareness on the need an insurance cover, a survey conducted by Bajaj Allianz General Insurance Company has revealed.

1200 people from metros like New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune and non-metros like Jaipur, Surat, Nagpur, Jalandhar, Chandigarh and other towns across the country took this survey last month. 60 per cent of these respondents were home owners, while 40 per cent lived on rented space.

75 per cent of respondents were aware that home insurance was essential. However, only 30 per cent of the respondents had home insurance for either their home or its contents.

64 per cent of respondents felt earthquakes and other natural calamities were the biggest risks their homes were exposed to, followed by fire (28 per cent) and thefts and burglaries (8 per cent). Among those who lived on rent, 56 per cent believed natural calamities were the biggest threat to their homes. 30 per cent of them said fire was a major risk and 14 per cent termed thefts and burglaries as risks.

This poses the vital question of why most Indian homes aren't insured despite public awareness on the importance of home insurance. According to Bajaj Allianz, 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.

Sasikumar Adidamu, Chief Technical Officer, Non-Motor Insurance, Bajaj Allianz General Insurance, said, "It is important for the industry to simplify and relay the importance and benefits of a home insurance policy to the common man. Contrary to the general 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, all natural calamities, electrical and mechanical breakdown, etc. For instance, for a home with a Rs. 1-crore cover, you need to pay a premium of only Rs. 5,000 per year."

The survey further revealed that 46 per cent of respondents thought the best time to buy a home was when there was a drop in property prices and 41 per cent believed a drop in interest prices was the right time. Only 13 per cent felt that festive season was a good time to purchase a home.