Cover for the festive fever

Seek insurance against physical or material damage without spending much

Diwali, the festival of lights, brings a smile to everybody’s face. There are bright lights, brighter clothes and to top it all, fire crackers. But on the flip side, a little error in dealing with the lights and fire crackers can cause a lot of anguish. And sometimes, damage to oneself, neighbours and property, as well.

While the best solution is caution, you should also look at measures that can help tide over these tough times. There are many inexpensive insurance riders available, which can be of help here.

Health plans
Bursting fire crackers can cause bodily injuries such as burns and fractures, and also trigger asthma or other respiratory ailments. All these conditions, which warrant a minimum 24-hour hospitalisation, are covered under health insurance or hospital cash policies that can also be purchased as a rider.

The health insurance policy covers the medical expenses, consultation fees and room rent. Hospital cash riders take care of other expenses that you may incur during hospitalisation, such as cost of travelling to the hospital. A fixed amount will be paid to you for a specific period, say, you can opt for a daily payout of Rs 1,000 for a seven-day period by paying a premium of Rs 500.

Health insurance policies have a 30-day waiting period before any claims can be made. “But in case of such injuries, the waiting period can be waived, if it is proven it is an accident,” says T Ramalingam, head-underwriting, Bajaj Allianz General Insurance.

If your injuries are minor and do not require hospitalisation, you can use an out-patient department (OPD) cover for claiming these expenses. While this feature is built into the medical policies of ICICI Lombard and Apollo Munich, you may need to pay a separate premium for others. For instance, an individual in the age group of 19-35 will have to pay a premium of Rs 15,000 annually for a sum assured of Rs 2 lakh, wherein he/she can avail an OPD cover of Rs 9,000 in one year.

Personal accident cover
These come as riders, along with health insurance policy. Any accidental injury due to fire crackers, resulting in disability, will fall within the purview of a personal accident policy. Covers are available for permanent-total disability, permanent-partial disability and temporary-total disability.

The sum assured can range from Rs 1-10 lakh, with an approximate premium of Rs 180 a lakh. The entire sum assured will be paid, only if an accident results in death. Rahul Agarwal, CEO, Optima Insurance Brokers, says, “The reimbursement will depend on the extent of the disability. In case of partial disability, the compensation amount will be a function of the body part that has been adversely impacted.”

Since it is a rider, this cover does not have a waiting period and can be activated immediately. So, if you do not have this cover, you may purchase the rider before the festival season.

Personal liability cover
Yet another rider that comes with your life insurance policy, a personal liability cover can be used to pay the cost of damage when caused to a third-party. If there is bodily harm to a third-party or his/her property is damaged and you face a law suit, this cover can be a saviour. It is not very expensive, either. At an approximate premium of Rs 300 a lakh cover, it makes sense to purchase it with the base policy.

But then, you can avoid all this by just taking a few basic precautions. Happy Diwali!