The insurance industry in India is divided into two broad categories—life and non-life. Life insurance ensures the security of the dependents by providing compensation for the demise of the policyholder. However, it is limited to only this kind of coverage. All other insurance types come under the non-life segment.
Among the non-life segment, health and motor insurance are two popular types that are known at large. While health insurance can act as a supplementary cover to life insurance ensuring financial safeguard, motor insurance is a mandatory requirement for all vehicle owners. However, there are a few lesser-known general insurance
covers, such as travel insurance, home insurance and cyber insurance. The awareness of these types of insurance plans is increasing but is not at par with health and motor insurance plans.
This article helps you debunk the different myths that surround these lesser-known general insurance plans. Let’s have a look:
A travel insurance policy is an insurance cover that provides financial coverage for all those inconveniences that may occur during your travels. This policy is not only available for international travel, but also for domestic travel.
Here are some of the misconceptions surrounding travel insurance:
Nothing bad happens on a trip
It pays to be prudent is the backing behind availing a travel insurance cover. Baggage loss, travel delays, and loss of important documents are some events that occur at the most unexpected of times, and the financial loss in such situations can be grave. To avoid the hassles of these events, a travel insurance plan is recommended. *
The health insurance plan provides coverage abroad
Every health insurance policy has a defined coverage that is valid only within a specified geographical area. Not all health insurance covers are valid in a foreign country and hence, a travel insurance policy is suitable for medical exigencies in a foreign land. *
Airlines provide compensation for delayed flights
Airlines generally compensate only for those flights that are canceled or delayed due to their fault. In case of an unavoidable situation, there is no surety that compensation will be paid by the airline. Alternatively, travel insurance
cover will reimburse for these delayed and canceled flights irrespective of the situation. *
* Standard T&C Apply
Another lesser-known insurance cover is home insurance. This insurance plan saves you from financial liabilities that may arise in the event your house is damaged due to natural calamities or even man-made perils.
Here are some myths surrounding home insurance plans that you should not believe:
No coverage is required for rented spaces
Tenants may contend that they do not need home insurance since the property is not theirs. But a home insurance cover not only covers the structure but also protects the contents within. Thus, even tenants can benefit from availing of content coverage in a home insurance plan. *
Home insurance plans are expensive
The reality about home insurance is they are not at all expensive in comparison to the extent of damages that are covered within. Considering the financial burden you’d be required to shoulder otherwise, the premiums are a meager contribution. *
* Standard T&C Apply
As businesses are going online, cyber insurance is a must-have protection plan, especially for large corporations. This is because they possess a lot of data, and there is always a risk of cyber threats that want to get their hands on such data. A cyber insurance plan can be bought by organizations as well as individuals.
Here are some myths about cyber insurance plans:
You need not ensure any cyber security practices if you buy a cyber insurance cover
A serious misconception about cyber insurance is you need not put in place any cyber security measures when buying a cyber insurance
cover. The reality however is that you need to ensure robust cyber security practices that do not neglect the importance of the data you own/possess. *
Individuals and small organizations are not targeted by cyber criminals
It is always prudent to assume that you hold all the valuable information that cyber criminals may want. Remember, small targets are easy targets. Irrespective of whether you are a large entity or an individual, avail a cyber insurance policy for dealing with any online mishap. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.