Wedding planners say that the smallest metropolitan middle class wedding in India these days, costs upward of Rs 5 lakhs. With the stakes being so high, wouldn’t you want to cover any risk of loss? A 29-year-old BPO executive, who is getting married next month, has decided to do so. She is taking a wedding insurance to cover all emergencies. Her family will be spending close to Rs 6 lakhs on her wedding. That is a huge expense. Her wedding planner recommended that she should take a wedding insurance cover to hedge herself against any unfortunate incident. She too thinks it’s a great idea.
Every year, lakhs of people spend a fortune at their wedding. Insurance companies have come up with innovative products to get a piece of this pie.
Wedding Insurance for instance covers against delays, accidents, food poisoning, burglary etc. As many customers are superstitious insurance companies do not market these policies aggressively. But for those who like to play safe, the policy is available through wedding planners, banquet halls or through the company branches directly.
The table given below is an example of a wedding insurance policy offered by an insurance company. The insurance package is divided into six sections.
What’s the cover?As in the above example, the insurance package is divided into six sections. Wedding cancellation and postponement is the most sought after. Majority of the people go in for this cover since it covers most of the expenses. But there are strings attached.
Cancellation or postponement must be due to a fire or related hazards to the venue. It could also be a result of an accident to the bride, groom or any of the relatives seven days before the wedding date. But if the wedding is cancelled due to a dispute between the marriage parties, the insurance company will not pay claim. Criminal acts like child marriage will also not be covered.
In case of a claim, the insurance company will reimburse the expenses for printing the cards, advances given to book the wedding venue, advances to the caterer, decorator, as also for hotel room bookings and travel reservations.
The second cover - the damage to property cover would include damage to the decoration at the home of the policyholder or at the venue. In addition, the policy will also cover personal accident. Here, at the time of taking the policy, the policyholder must declare the names of relatives who would be covered under this section. There is also a public liability cover wherein any compensation payable for damage to person or property due to food poisoning, accidents at the venue etc would be covered.
An Indian wedding is synonymous with jewellery and precious stones. So an obvious cover would be the insurance of these items against thefts. In such case though, valuation certificates and bills would be needed at the time of taking the policy.
Public sector insurance companies also offer Wedding Bells - an insurance cover that insures any expenses incurred owing to postponement, cancellation or stoppage of the marriage.
Cost mattersOne need not go in for all these covers. The insurance company offers a choice and you may opt for any or some of these covers. The premiums would depend on which covers are selected. For instance, for the cancellation cover, for a sum assured of Rs 2 lakh, the premium would work out to Rs 1,200. If you opt for the minimum cover under all categories, your premium would work out to Rs 3,421 - excluding service tax (see table).
In both these policies, any negligence, misconduct or insolvency will not be covered. Further, in case of damage to electrical apparatus, that is caused due to a short circuit or self-heating will not be covered. Any fines or levies imposed by the government will also not be covered.
If you keep these in mind, then the policy is surely a must-have, considering the large sums that are spent on marriage these days.
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