16 January 2013

Tying the knot? Then get insurance too :: Business Line


The great Indian wedding is an expensive affair. An average Indian wedding today costs not less than Rs 15 lakh. That is not including the months of effort in planning and preparation. But, as pessimistic as it sounds, there are unforeseen events that can ruin that special day.
But, you can safeguard your money against eventualities such as bad weather, unexpected illness, logistic issues and so on. Enter wedding insurance. Wedding insurance is a part of an event insurance policy which covers all events related to the wedding ceremony. Normally, the policy is taken for a period of 10 to 15 days to cover a complete event. A comprehensive wedding insurance policy can mitigate the financial damage.

WHAT THEY COVER

Here are a few of the covers provided:

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Unforeseen weather problems, such as the recent hurricane Sandy in New York and cyclone Nilam in Chennai. If such an eventuality occurs at the time of the wedding, it would prevent holding the function as scheduled.
Cancellation or postponement of the wedding due to an unfortunate accident, sudden illness, death of a close relative and so on which may necessitate changing the wedding date. A wedding insurance plan will ensure that the money paid towards deposit and such is recovered.
Material damage, which is any direct physical loss/damage caused due to insured perils such as fire, flood, earthquake and so on to sets, costumes, theatrical props, wardrobe, related equipment and other assets belonging to, or leased/rented by the insured whilst such property is stored, fixed, installed or in use at the venue of the event or in transit to such venue.
Wedding jewellery and attire. Most policies offer to cover the wedding dress against loss or damage until the wedding day. Accessories such as shoes, jewellery, ties and hairpieces are also covered depending on the policy availed. Insurance providers also offer cover for loss or damage of the couple’s wedding rings.
Thefts or burglary during weddings. In case it is a destination wedding, the cover for the same is also included in the policy.
Premium on these policies depend on a host of parameters such as the location, the actual venue (whether outdoors or indoors), nature of decoration, number of days, number of smaller functions conducted as part of the wedding, number of guests and the safety and security arrangements made.
Compare quotes from different insurers before zeroing in on one. Decide on the covers you require so that you end up availing only those that you need.
Working out a detailed wedding budget will help you arrive at this decision. Depending on the combination of covers taken, the premium you will have to pay ranges from 1 to 1.5 per cent of the total sum assured.

EXCLUSIONS

These insurance policies don’t cover weddings which are cancelled due to either partner developing cold feet. If the insurer is aware of a particular situation which could cause the cancellation/postponing of the wedding before purchasing the policy, such incidents are also not covered.

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