AWARENESS ABOUT INSURANCE POLICIES IN INDIA 

INSURANCE SCENARIO IN INDIA

 India's population is one billion; only 0.5 per cent of them have any kind of insurance. Earthquake
insurance cover is available in India. Unfortunately, not many individuals take these policies; it is
business establishments, industries, etc, who generally seek cover against earthquakes. This is so
because quake cover was expensive till recently. Usually, even small business units used to go in for
cover against only common hazards like fires.We  felt property worth Rs 100 billion upwards has been
destroyed in Gujarat, much of it uninsured. Since Gurgaon is also under the spell of these tremors ,
we decided to educate our community.

WE DECIDED TO EDUCATE ONE AND ALL BUT THIS WAS POSSIBLE PROVIDED WE HAD
ADEQUATE KNOWLEDGE. WE VISITED THE LOCAL LIC OFFICE, MEMBER PARLIAMENT (OF
OUR DISTRICT) MR. DHARAMVIR GABA AND DEPUTY SUPERINTEND OF POLICE AND
GATHERED THE FOLLOWING INFORMATION.

WHAT DOES THE POLICY AGAINST CALAMITIES COVER?

The policy (Cost: Rs 0.6 per Rs 1,000) insures your house against fire, natural calamities like floods,
storms, cyclones and earthquakes, riots, terrorist attacks, gas cylinder explosions.What are covered
for the loss of the building and its contents. What is not covered is  loss or damage to documents,
bonds, securities, precious stones, jewellery, cash, valuables.

 WHAT HAPPENS IN THE AFTERMATH OF NATURAL CALAMITIES LIKE AN EARTHQUAKE?

When houses, workplaces, shops are laid to waste in seconds, it is virtually impossible to find
insurance documents of victims (read policy-holders), more so when even clearing the rubble to
rescue survivors is proving a task beyond everyone.So the survivors are left with no other alternative
but to turn to the insurers themselves for details.Thanks to the recent computerisation drives of
insurance companies, it is possible to retrieve a large amount of data. We believe divisional offices
maintain computerised data of hundreds of branches. So, even if branch buildings in the seismic zone
are affected, detailed information can still be retrieved.If the relatives/family members can establish
their identity and bona fides, it may just make things that much easier for insurance companies to
settle claims.

WHAT SHOULD SURVIVORS AND THEIR RELATIVES DO TO GET THEIR INSURANCE CLAIMS
PROCESSED AT THE EARLIEST?

The LIC has already relaxed procedures for the production of death certificates for settling claims. It
has decided to accept certificates endorsed by responsible citizens, including insurance agents. The
usual practice is to accept only certificates issued by municipal authorities.

So, please get in touch with the victim's agent, if you know his/her whereabouts, e-mail ID, etc. Or
send an e-mail to the insurance company offering all the relevant information. Most insurance
companies have their own Web sites through which you can contact them. Check the hyperlinks at
the bottom of this feature.

If the cause of damage is a flood or earthquake, you may have to prove that the natural calamity did
occur. Newspaper articles and photographs or even a report from the meteorological department
would help. In such an instance, a trip by the surveyor to your home to see the damage may also
suffice. But these rigid rules are being sought to be relaxed in Gujarat.

Where the entire family is dead, and if there are more than one claimant, the case will be settled by a
court of law.
WHAT ARE THE INSURANCE COMPANIES DOING TO HELP THE   SURVIVORS / NOMINEES /
INHERITORS AND QUAKE-VICTIMS?

The four public sector non-life insurance companies have formed an association called General
Insurers (Public Sector) Association, or GIPSA. This agency is planning to coordinate quake-related
work so that claim settlements can be expedited. The LIC has decided to waive the penal interest for
the next three months if the policy-holder does not pay the premium in time. Duplicate certificates of a
policy will be issued free of cost in case the originals are lost.Teams of officials from insurance
companies will visit the affected areas to find out how best to reach the people in need.

IS THERE ANY WAY PEOPLE WHO HAVE NOT INSURED ANYTHING, CAN BENEFIT FROM THE
LARGESSE OF INSURANCE COMPANIES?

No. Unfortunately, insurance companies in India are not rich with disposable cash. They do not
maintain any relief funds. Settlement of claims will be viewed purely as business transactions. It is like
honouring a legal, binding agreement or commitment or obligation.