Page 51 - Insurance Times February 2016

Last year, during the floods in Jammu & Kashmir, as the wa- Home insurance policies cover losses arising from theft or
ter level rose to 16-17 feet, Asif’s home and all the contents burglary too, thus protecting valuables, including jewellery.
in it were destroyed. However, Asif could make a claim against Janaki Ganapathy from Chennai, a 63-year old homemaker,
the home insurance policy. was a victim of chain-snatching a year ago. “I go for a walk in
the park near my home every morning. That day, it would
After assessing the property, the insurance company found have been around quarter past six and I had just stepped out
that there was partial loss to the structure and paid him Rs. of the park after finishing my walk. Suddenly, I heard a bike
23.12 lakh after deducting depreciation at 2.5 per cent per come racing, from behind me.
annum for three years.
To allow it to pass, I climbed onto the platform nearby when
Contents worth Rs. 6 lakh were also damaged in the flood and someone pulled my chain from behind with force. I fell to the
Asif was paid Rs. 5.4 lakh for it after charging for depreciation. ground and screamed for help. But before anyone could
come, the fellow who snatched my chain sped away on the
In situations akin to what Sonal or Asif faced where all the bike,” grieves Janaki. The chain weighed five sovereigns. She
original purchase documents of the items are destroyed, the registered a complaint with the local police station, but hasn’t
insurance company’s assessing officer is deployed to conduct got back her chain yet. Janaki didn’t have home insurance,
a survey and arrive at the value of loss. However, in case of else she could have made a claim for the lost chain, based on
total loss, the full sum insured is given. the FIR.

Covers burglary and theft It is best to cover even the valuables you keep in a bank
locker through home insurance. Do note that banks are not
Most insurers value articles based on their market value, bound to compensate for the loss of gold or other valuables
i.e., the cost of buying the same item of the same age from you keep in a bank locker. When insuring the contents of your
the market. Suppose, there was damage to a washing ma- home, you may be required to attach a list of the items; for
chine and it has to be replaced, the insurer will assess the age jewellery, a valuation report may also be needed.
of the machine. If it is three years old, the market value of a
three-year old washing machine will be paid to the policy- Also, do remember to take an ‘all-risk’ cover when you buy
holder. ICICI Lombard and Tata AIG cover items based on home insurance, to protect against all kinds of hazards. Oth-
market value. With Bajaj Allianz General, if the article is less erwise, the insurer might cover only those perils mentioned
than five years old, the policyholder has the option to go for in the policy. Theft of jewellery or any electronic gadget may
a plan where items of age less than five years are replaced not be compensated if only burglary is mentioned as a peril.
with a new one, when destroyed. (Source : BL)

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The Insurance Times, February 2016 51

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