Page 380 - IC38 GENERAL INSURANCE

A. Householder‘s Insurance

a. Retail Insurance Products

There are some insurance products that are purchased for individuals for
covering certain interests. Though small commercial or business interests could
be there for such insurances, these are generally sold to individuals. In some
markets these are called „small ticket‟ policies or „retail policies‟ or „retail
products‟. Insurances of the home, motor cars, two-wheelers, small businesses
like shops etc. fall under this category. These products are usually sold by the
same agents / distribution channels that deal with personal lines of insurance as
the buyers also are essentially from the same consumer segment.

b. Householder‘s Insurance

a) Why do we need householder‘s insurance?

Important

‗Named Perils Insurance Policy‘

i. A householder‟s insurance policy only provides coverage on losses incurred
to the insured‟s property from hazards or events named in the policy. The
perils covered will be clearly spelt out.

ii. Named peril policies may be purchased as a less expensive alternative to a
comprehensive coverage or broad policies, which are policies that tend to
offer coverage to most perils.

'All Risks'

i. "All risks" means that any risk that the contract does not specifically
excludes is automatically covered. For example, if an all-risks house holder
policy does not expressly exclude flood coverage, then the house will be
covered in the event of flood damage.

ii. A type of insurance coverage that can exclude only risks that have been
specifically outlined in the contract. What is excluded will be clearly spelt
out.

iii. All-risks insurance is obviously the most comprehensive type of coverage
available. It is therefore priced proportionately higher than other types of
policies, and the cost of this type of insurance should be measured against
the probability of a claim.

A home is a place where dreams are built and memories are treasured. It's a
long cherished dream for most of us to own a home and it is one of the most
important financial decisions made. Most of us who decide to buy a home opt

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