How should you choose wedding insurance policy?

Wedding insurance is a good option to cover risks such as sudden cancellation of the marriage, theft of valuable items, personal accident, and natural calamities. Wedding is an event in life, expenses have no limit. In this auspicious event, every person tries to fulfill his  desire. In many families, shopping for wedding starts one or two years in advance.

According to the Confederation of All India Traders i.e. (CAIT) there will be around 38 lakh weddings in the country between November 23 and December 15. The estimated cost of these weddings is around Rs 5 lakh crore. According to a report by Matrimony.com, from 1.1 to 1.3 crore weddings in the country take place every year. A report by consultancy firm KPMG states that the wedding industry in India is worth Rs 3.71 lakh crore… It is growing at an annual rate of 25 to 30 percent. If any mishap such as theft, robbery, fire, or accident occurs during the wedding preparations then the families can face a big crisis. Wedding insurance compensates for such losses.

Personal finance expert Nisha Sanghvi says that wedding insurance is not yet very popular in India. Through this insurance, the risks of any unpleasant incident during the wedding ceremony can be covered. The wedding in which 20-30 lakh rupees are being spent, by spending 1-1.5 percent of this on insurance, one can get rid of many types of worries. If we look at it from inflation viewpoint, then it is a very cheap option. Therefore, it is advisable to take insurance cover.

So let’s now understand what all is covered in wedding insurance:

The scope of risk coverage in wedding insurance is increasing with time. Damage to  wedding venue due to legal or criminal incidents are included in the insurance cover.  If jewelry, clothes, or other valuable items are stolen , the insurance company will reimburse the loss. The risk of damage due to rain, storm, or earthquake is also covered. Now insurance companies  also give personal accident cover in wedding insurance policies.

Compensation is given to those who are included in this policy, their injury, disability, and death are covered. However, there are some clauses in wedding insurance policies… insurers can reject your claim on basis of such clauses.

If the wedding ceremony is canceled due to any kind of dispute or argument, then, the insurance company will not reimburse the loss. If the insurer feels that negligence or intentional damage has been done during the wedding, then no compensation will be given. Suicide or attempted suicide, self-harm  nothing is covered under the insurance policies.

Companies such as Future Generali, ICICI Lombard, HDFC Ergo, Bajaj Allianz General Insurance  sell wedding insurance. Insurers currently pay very low amount of claims which makes the premium cheaper. To buy this policy, you will have to spend 1 to 1.5 percent of your total wedding budget.

If your wedding budget is worth Rs 20 lakh, then, you will have to pay a premium of up to Rs 30,000. In the era of inflation, this amount does not matter much. Insurers provide insurance cover for up to two years before the wedding day.

In some policies, risk is covered for one year it is better to buy the policy two to three months in advance. Although you can also buy this insurance  a week ago. It is better to buy the policy as soon as the wedding date is fixed. If your family is gearing up for wedding, then, do consider taking insurance cover for this auspicious occasion. There are different rules and conditions of insurance companies. So find out before buying the policy what will be covered and what will not be? Include sufficient insurance cover in your policy to increase your happiness!!