wedding insurance
TRANSCRIPT
WEDDING INSURANCE
Chapter-1
Insurance - A Brief OverviewIn law and economics insurance is a form of risk management. Insurance is
used to compensate irreparable loss. In economic terminology, insurance is
defined as an equitable transfer of the risk of loss. The transfer is done from
one entity to other, in exchange for a specific amount, also known as
premium.
The entity which takes upon itself, the burden of compensating the loss is
called as the insurer or in more precise terms the insurance company. The
entity which is likely to suffer from a loss be compensated in case of a loss
is called as the insured.
The insurer is usually a company that sells insurance. The amount that is
paid as a consideration to cover the likelihood of a loss is known as the
premium. The premium differs according to the amount insured and the
nature of insurance.
In today's world, risk management has come up as a major activity or field
with principles based on practice and research. It is an integral part of
Insurance. It is a study which is involved with appraising and managing risk.
It applies the rule of Law of Large Numbers. When applied to Risk
Management, this rule implies that as the number of exposure units'
increase, the actual results are more likely to match the probable, anticipated
or forecasted results.
INDIAN INSURANCE SECTOR1
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India insurance is a flourishing industry, with several national and
international players competing and growing at rapid rates. Thanks to
reforms and the easing of policy regulations, the Indian insurance sector
been allowed to flourish, and as Indians become more familiar with different
insurance products, this growth can only increase, with the period from 2010
- 2015 projected to be the 'Golden Age' for the Indian insurance industry.
India Insurance Policies at a Glance
Indian insurance companies offer a comprehensive range of insurance plans,
a range that is growing as the economy matures and the wealth of the middle
classes increases. The most common types include: term life policies,
endowment policies, joint life policies, whole life policies, loan cover term
assurance policies, unit-linked insurance plans, group insurance policies,
pension plans, and annuities. General insurance plans are also available to
cover motor insurance, home insurance, travel insurance and health
insurance.
Due to the growing demand for insurance, more and more insurance
companies are now emerging in the Indian insurance sector. With the
opening up of the economy, several international leaders in the insurance
sector are trying to venture into the India insurance industry.
India Insurance: History
The history of the Indian insurance sector dates back to 1818, when the
Oriental Life Insurance Company was formed in Kolkata. A new era began
in the India insurance sector, with the passing of the Life Insurance Act of
1912.
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The Indian Insurance Companies Act was passed in 1928. This act
empowered the government of India to gather necessary information about
the life insurance and non-life insurance organizations operating in the
Indian financial markets.
The Triton Insurance Company Ltd formed in 1850 and was the first of its
kind in the general insurance sector in India. Established in 1907, Indian
Mercantile Insurance Limited was the first company to handle all forms of
India insurance.
Indian Insurance: Sector Reform
The formation of the Malhotra Committee in 1993 initiated reforms in the
Indian insurance sector. The aim of the Malhotra Committee was to assess
the functionality of the Indian insurance sector. This committee was also in
charge of recommending the future path of insurance in India.
The Malhotra Committee attempted to improve various aspects of the
insurance sector, making them more appropriate and effective for the Indian
market.
The recommendations of the committee put stress on offering operational
autonomy to the insurance service providers and also suggested forming an
independent regulatory body.
The Insurance Regulatory and Development Authority Act of 1999 brought
about several crucial policy changes in the insurance sector of India. It led to
the formation of the Insurance Regulatory and Development Authority
(IRDA) in 2000.
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The goals of the IRDA are to safeguard the interests of insurance
policyholders, as well as to initiate different policy measures to help sustain
growth in the Indian insurance sector.
The Authority has notified 27 Regulations on various issues which include
Registration of Insurers, Regulation on insurance agents, Solvency Margin,
Re-insurance, Obligation of Insurers to Rural and Social sector, Investment
and Accounting Procedure, Protection of policy holders' interest etc.
Applications were invited by the Authority with effect from 15th August,
2000 for issue of the Certificate of Registration to both life and non-life
insurers. The Authority has its Head Quarter at Hyderabad. Detailed
information on IRDA is available at their
Protection of the interest of policy holders:
IRDA has the responsibility of protecting the interest of insurance
policyholders. Towards achieving this objective, the Authority has taken the
following steps:
• IRDA has notified Protection of Policyholders Interest Regulations 2001 to
provide for: policy proposal documents in easily understandable language;
claims procedure in both life and non-life; setting up of grievance redressal
machinery; speedy settlement of claims; and policyholders' servicing. The
Regulation also provides for payment of interest by insurers for the delay in
settlement of claim.
• The insurers are required to maintain solvency margins so that they are in a
position to meet their obligations towards policyholders with regard to
payment of claims.
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• It is obligatory on the part of the insurance companies to disclose clearly
the benefits, terms and conditions under the policy. The advertisements
issued by the insurers should not mislead the insuring public.
• All insurers are required to set up proper grievance redress machinery in
their head office and at their other offices.
• The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the
insurance contract.
General insurance products and services are being offered as package
policies offering a combination of the covers mentioned above in various
permutations and combinations. There are package policies specially
designed for householders, shopkeepers, industrialists, agriculturists,
entrepreneurs, employees and for professionals such as doctors, engineers,
chartered accountants etc. Apart from standard covers, General insurance
companies also offer customized or tailor-made policies based on the
personal requirements of the customer.
A suitable general insurance cover is an absolute essential for every family.
This is a necessity to overcome uncertainties and risks prevalent in life. It is
also necessary to protect one’s property against risks as a loss or damage to
one’s property can leave one in doldrums.
It is important for prospective customers to read and understand the terms
and conditions of a policy before they enter into an insurance contract. The
proposal form needs to be filled in correctly and completely with all factual
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and relevant data by the customer. He must also ensure that the insurance
cover is adequate and an appropriate one, as desired.
CHAPTER 2
Impact of Liberalization, Privatization And Globalization
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POLICIES AFTER LIBERALISATION : Under the recommendation of
Malhotra Committee the Insurance Regulatory and Development Authority
was set up to monitor and control the Insurance industry some of the
initiatives taken by the government after Insurance sector reforms are:
Government to have not more than 50 per cent stake in insurance companies.
Insurance sector to be opened up for private companies and any number of
insurance enterprises can operate.
Private players with minimum paid up capital of Rs.1 billion should be
given opportunity to do business.
Foreign companies can enter Indian market through joint ventures with
Indian companies.
IMPACT OF LIBERALISATION AND PRIVATISATION : The state
controlled Insurance companies like LIC and GIC faced stiff competition
from private insurance companies post reforms. The monopoly of the
national Insurance companies came to an end. The private Insurance
companies were able to exploit the shortcomings in the state run Insurance
companies. The private insurance companies launched a variety of new
insurance products like health care, pension plans, annuity plans, income
protection, market linked products, which were welcomed by the end
customers. The business for the private sector boomed in both urban and
rural sector alike.
IMPACT OF GLOBALISATION AND PRIVATISATION : While
nationalized insurance companies have done a commendable job in
extending the volume of the business, opening up insurance sector to private 7
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players was a necessity in the context of globalization of financial sector. If
traditional infrastructural and semipublic goods industries such as banking,
airlines, telecom, power etc., have significant private sector presence,
continuing a state of monopoly in provision of insurance was indefensible
and therefore, the globalization of insurance has been done as discussed
earlier. Its impact has to be seen in the form of creating various opportunities
and challenges.
The introduction of private players in the industry has added colours to the
dull industry. The initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly
of the market LIC.
Since the advent of the private players in the market the industry has seen
new and innovative steps taken by the players in the sector. The new
player’s have improved the service quality of the insurance. As a result LIC
down the years have seen the declining in its career. The market share was
distributed among the private players. Though LIC still holds 75% of the
insurance sector the upcoming nature of these private players is enough to
give more competition to LIC in the near future. LIC market share has
decreased from 95 %( 2002-03) to 81% (2004-05). The following company
holds the rest of the market share of the insurance industry.
The life insurance of India added 4.1% to the GDP of the economy in 2009,
an immense growth since 1999, when the gates were opened for the private
company in the market.
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IMPACT OF GLOBALISATION: While nationalized insurance
companies have done a commendable job in extending the volume of the
business, opening up insurance sector to private players was a necessity in
the context of globalization of financial sector. If traditional infrastructural
and semipublic goods industries such as banking, airlines, telecom, power
etc., have significant private sector presence, continuing a state of monopoly
in provision of insurance was indefensible and therefore, the globalization of
insurance has been done as discussed earlier. Its impact has to be seen in the
form of creating various opportunities and challenges.
The introduction of private players in the industry has added colours to the
dull industry. The initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly
of the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in the
sector. The new players have improved the service quality of the insurance.
As a result LIC down the years have seen the declining in its career. The
market share was distributed among the private players. Though LIC still
holds 75% of the insurance sector the upcoming nature of these private
players is enough to give more competition to LIC in the near future. LIC
market share has decreased from 95% (2002-03) to 81% (2004-05). The
following company holds the rest of the market share of the insurance
industry.
IMPACT OF GLOBALISATION ON INDIAN INSURANCE
COMPANIES9
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NAME OF THE
PLAYER
MARKET SHARE (%)
LIC 82.3
ICICI
PRUDENTIAL
5.63
BIRLA SUN LIFE 2.56
BAJA ALLIANZ 2.03
SBI LIFE 1.80
HDFC STANDARD 1.36
TATA AIG 1.29
MAX NEW
YORK
0.90
AVIVA 0.79
KOTAK 0.51
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MAHINDRA
ING VYASA 0.37
AMP SANMAR 0.26
METLIFE 0.21
PRESENT SCENARIO OF GLOBALISATION
In a tough battle to expand market shares the private sector life insurance
industry consisting of 14 life insurance companies at 26% have lost 3% of
market share to the state owned Life Insurance Corporation (LIC) in the
domestic life insurance industry in 2006-07. According to the figures
released by Insurance Regulatory & Development Authority, the total
premium of these 14 companies have shot up by 90% to Rs 19,471.83 crore
in 2006-07 from Rs 10, 252 crore.
LIC with a total premium mobilization of Rs 55,934 crore has been able to
retain a market share of 74.26 % during the reporting period. In total the life
insurance industry in first year premium has grown by 110% to Rs 75, 406
crore during 2006-07. The 2006-07 performance has thrown a few surprises
in the ranking among the private sector life insurance companies. New
entrants like Reliance Life and SBI Life had shown a huge growth of over 11
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381% and 210% respectively during the year. Reliance Life which has
become one of the top five companies ended the year with a premium of Rs
930 crore during the year.
ICICI Prudential Life Insurance remained as the No1 private sector life
insurance company during the year. Bajaj Allianz overtook ICICI Prudential
in terms of monthly market share in March, for the first time ever. Bajaj's
market share among private players in non-single premium for March stood
at 29.1% vs. ICICI Prudential's 23.8%. Bajaj gained 4.6 percentage point
market share among private sector players for FY07.
Among other private players, SBI Life and Reliance Life continued to do
well, each gaining 4% market share in FY07. SBI Life's growth was driven
by increasing contribution from ULIP premiums. Another notable
development of the 2006-07 performance has been the expansion of retail
markets by the life insurance companies. Bajaj Allianz Life insurance has
added 20 lakh policies while ICICI Prudential has expanded over 19 lakh
policies during the year.
With the largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It's a business growing
at the rate of 15-20 per cent annually and presently is of the order of Rs 450
billion. Together with banking services, it adds about 7 per cent to the
country's GDP. Gross premium collection is nearly 2 per cent of GDP and
funds available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover
while health insurance and non-life insurance continues to be below
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international standards. And this part of the population is also subject to
weak social security and pension systems with hardly any old age income
security. This it is an indicator that growth potential for the insurance sector
is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development
and at the same time strengthens the risk taking ability. It is estimated that
over the next ten years India would require investments of the order of one
trillion US dollar. The Insurance sector, to some extent, can enable
investments in infrastructure development to sustain economic growth of the
country.
Insurance is a federal subject in India. There are two legislations that govern
the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance
sector in India has become a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn
witnessed over a period of almost two centuries.
Important milestones in the life insurance business in India
1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.
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1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by
the central government and was nationalized. LIC formed by an Act of
Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from
the Government of India.
In a tough battle to expand market shares the private sector life insurance
industry consisting 14 life insurance companies at 26% have lost 3% of
market share to the state owned Life Insurance Corporation (LIC) in the
domestic life insurance industry in 2006-07. According to the figures
released by Insurance Regulatory & Development Authority the total
premium these 14 companies have shot up by 90% to Rs 19,471.83 crore in
2006-07 from Rs 10, 252 crore.
LIC with a total premium mobilization of Rs 55,934 crore has been able
retain a market share of 74.26 % during the reporting period. In total the life
insurance industry in first year premium has grown by 110% to Rs 75, 406
crore during 2006-07. The 2006-07 performance has thrown a few surprises
in the ranking among the private sector life insurance companies. New
entrants like Reliance Life and SBI Life had shown a huge growth of over
381% and 210% respectively during the year. Reliance Life which has
become one of the top five companies ended the year with a premium of Rs
930 crore during the year.
Though ICICI Prudential Life Insurance remained as the No 1 private sector
life insurance Company during the year Bajaj Allianz overtook ICICI
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Prudential in terms of monthly market share in March, for the first time ever.
Bajaj's market share among private players in non-single premium for March
stood at 29.1% vs. ICICI Prudential's 23.8%. Bajaj gained 4.6 percentage
point market share among private sector players for FY07.
Among other private players, SBI Life and Reliance Life continued to do
well, each gaining 4% market share in FY07. SBI Life's growth was driven
by increasing the contribution from ULIP premiums. Another notable
development of the 2006-07 performance has been the expansion of retail
markets by the life insurance companies. Bajaj Allianz Life insurance has
added 20 lakh policies while ICICI Prudential has expanded over 19 lakh
policies during the year.
OPPORTUNITES FOR INSURANCE SECTOR
A state monopoly has little incentive to innovative or offers a wide range of
products. It can be seen by a lack of certain products from LIC's portfolio
and lack of extensive risk categorization in several GIC products such as
health insurance. More competition in this business will spur firms to offer
several new products and more complex and extensive risk categorization.
It would also result in better customer services and help improve the variety
and price of insurance products.
The entry of new players would speed up the spread of both life and general
insurance. Spread of insurance will be measured in terms of insurance
penetration and measure of density.
With the entry of private players, it is expected that insurance business
roughly 400 billion rupees per year now, more than 20 per cent per year 15
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even leaving aside the relatively under developed sectors of health
insurance, pen More importantly, it will also ensure a great mobilization of
funds that can be utilized for purpose of infrastructure development that was
a factor considered for globalization of insurance.
More importantly, it will also ensure a great mobilization of funds that can
be utilized for purpose of infrastructure development that was a factor
considered for globalization of insurance.
With allowing of holding of equity shares by foreign company either itself
or through its subsidiary company or nominee not exceeding 26% of paid up
capital of Indian partners will be operated resulting into supplementing
domestic savings and increasing economic progress of nation. Agreements
of various ventures have already been made to be discussed later on in this
paper.
It has been estimated that insurance sector growth more than 3 times the
growth of economy in India. So business or domestic firms will attempt to
invest in insurance sector. Moreover, growth of insurance business in India
is 13 times the growth insurance in developed countries. So it is natural, that
foreign companies would be fostering a very strong desire to invest
something in Indian insurance business.
Most important not the least tremendous employment opportunities will be
created in the field of insurance which is burning problem of the present day
today issues.
CHALLENGES BEFORE THE INDUSTRY
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New age companies have started their business as discussed earlier. Some of
these companies have been able to float 3 or 4 products only and some have
targeted to achieve the level of 8 or 10 products. At present, these companies
are not in a position to pose any challenge to LIC and all other four
companies operating in general insurance sector, but if we see the quality
and standards of the products which they issued, they can certainly be a
challenge in future. Because the challenge in the entire environment caused
by globalization and liberalization the industry is facing the following
challenges:
The existing insurer, LIC and GIC, have created a large group of dis
satisfied customers due to the poor quality of service. Hence there will
be shift of large number of customers from LIC and GIC to the private
insurers.
LIC may face problem of surrender of a large number of policies, as
new insurers will woo them by offer of innovative products at lower
prices.
The corporate clients under group schemes and salary savings
schemes may shift their loyalty from LIC to the private insurers.
There is a likelihood of exit of young dynamic managers from LIC to
the private insurer, as they will get higher package of remuneration.
LIC has overstaffing and with the introduction of full
computerization, a large number of the employees will be surplus.
However they cannot be retrenched. Hence the operating costs of LIC
will not be reduced. This will be a disadvantage in the competitive
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market, as the new insurers will operate with lean office and high
technology to reduce the operating costs.
GIC and its four subsidiary companies are going to face more
challenges, because their management expenses are very high due to
surplus staff. They can't reduce their number due to service rules.
Management of claims will put strain on the financial resources, GIC
and its subsidiaries since it is not up the mark.
LIC has more than to 60 products and GLC has more than 180
products in their kitty, which are outdated in the present context as
they are not suitable to the changing needs of the customers. Not only
that they are not competent enough to complete with the new products
offered by foreign companies in the market.
Reaching the consumer expectations on par with foreign companies
such as better yield and much improved quality of service particularly
in the area of settlement of claims, issue of new policies, transfer of
the policies and revival of policies in the liberalized market is very
difficult to LIC and GIC.
Intense competition from new insurers in winning the consumers by
multi-distribution channels, which will include agents, brokers,
corporate intermediaries, bank branches, affinity groups and direct
marketing through telesales and interest.
The market very soon will be flooded by a large number of products
by fairly large number of insurers operating in the Indian market.
Even with limited range of products offered by LIC and GIC, the 18
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consumers are confused in the market. Their confusion will further
increase in the face for large number of products in the market. The
existing level of awareness of the consumers for insurance products is
very low. It is so because only 62% of the Indian population is literate
and less than 10% educated. Even the educated consumers are
ignorant about the various products of the insurance.
The insurers will have to face an acute problem of the redressal of the
consumers, grievances for deficiency in products and services.
Increasing awareness will bring number of legal cases filled by the
consumers against insurers is likely to increase substantially in future.
Major challenges in canalizing the growth of insurance sector are
product innovation, distribution network, investment management,
customer service and education.
ESSENTIALS TO MEET THE CHALLENGES
Indian insurance industry needs the following to meet the global challenges
Understanding the customer better will enable insurance companies to
design appropriate products, determine price correctly and increase
profitability.
Selection of right type of distribution channel mix along with prudent and
efficient FOS [Fleet on Street] management.
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An efficient CRM system, which would eventually create sustainable
competitive advantages and build a long-lasting relationship
Insurers must follow best investment practices and must have a strong asset
management company to maximize returns.
Insurers should increase the customer base in semi urban and rural areas,
which offer a huge potential.
Promoting health insurance and using e-broking to increase the business.
CHAPTER 3
Introduction to wedding insurance
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The wedding day is considered by many people to be the happiest and most
momentous day in one’s life. It can be easy to get carried away planning this
day, and ensuring that everything from the dress to the table decorations is
prepared. However, along with those commitments vowed in the ceremony,
a wedding can require a huge financial commitment.
As wedding become more and more expensive, so the wedding insurance
becomes more popular. It makes sense to ensure that you are covered, both
to protect the financial investment, and to offer compensation should
something go wrong on this special day. The average wedding insurance
policy covers for cancellation expenses, damage to wedding attire and public
liability, but can find insurance which covers far more.
One can consider wedding insurance an unnecessary expense, but it makes
sense to protect your big day. If something goes wrong, wedding insurance
offers peace of mind and provides some financial compensation for the
entire family.
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Whenever a person wish to purchase an insurance policy, it is important to
compare a range of different insurance providers. Comparing policies
enables to assess the type and extent of cover a person’s need, and gives you
the chance to compare policy prices. When assessing different policies,
consider the areas of cover which are most important such as:
• Transport cover
• Wedding dress cover
• Wedding attire cover
• Wedding ring cover
• Wedding flower cover
• Marquee cover
• Catering cover
• Cake cover
• Wedding photograph cover
• Wedding gift cover
• Foreign travel cover
Consider also how much a person willing to pay for the insurance the best
insurance policies are those which offer comprehensive protection at an
affordable price. Remember that the cheapest policies may not provide with
much financial cover, whilst a very expensive policy might be charging for
unnecessary cover.
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The internet is a good place to begin your search for wedding insurance; the
majority of insurance providers have their own website, whilst online
wedding forums are a good place to pick up tips from other people getting
married. Simply by entering the keywords ('wedding' 'insurance' 'UK') into a
search engine one will find a range of insurance providers, and other
websites offering advice.
Insurance providers usually publish their policy details on their website it is
easy to check the terms and conditions before you buy and ensure that the
policy offers the cover one’s need. Some sites also offer a free estimate
service, tailored to the specific details of one’s wedding. If you go on to
purchase a wedding insurance online, one may be entitled to a discount on
the price of the policy.
If a person is employing a wedding planner, they should be able to advice on
finding a suitable insurance provider and may be able to negotiate a discount
on the price of the policy. One can also ask any friends and family if they
can recommend an insurance provider, or know someone getting married
who has found an inexpensive policy. If one has other insurance, such as
home insurance, with a particular provider, ask if they also offer wedding
insurance. One may even be entitled to a discount for taking out more than
one policy with them.
Wedding insurance helps make things right when something goes wrong.
A person always dreamed of planning the perfect wedding, but no matter
how carefully you plan it, there are many things that can go wrong – things
that are beyond your control. What if one’s reception venue goes out of
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business a month before the wedding, and one lost their deposit and have to
find another location? Or a hurricane causes your wedding to be postponed?
What if your bridal shop closes, leaving you without a gown? Then wedding
insurance is a good option.
A wedding is an investment, and as the average cost of weddings rises, now
up to $27,000, wedding insurance is needed more than ever. After all, one
wouldn’t buy a new car that costs that much without insuring it against
damage.
For as little as $160, your wedding insurance policy can cover a variety of
situations, such as:
• No Dress. One can get repair or replacement cost if the bride’s wedding
gown or groom’s tuxedo is lost or damaged.
• Lost Deposits. One can reimburse your deposit if a vendor goes out of
business, declares bankruptcy before their wedding, or simply fails to show
up.
• Lost Rings. One can receive repair or replacement cost if the bride or
groom’s wedding bands are lost or damaged.
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• Severe Weather. If severe weather (such as a hurricane) forces one to
postpone your wedding, wedding insurance provide reimbursement for non-
recoverable expenses.
• Transportation Shutdown. If one has to postpone the wedding because a
commercial transportation shutdown prevents the bride, groom or their
parents from getting there, they can receive reimbursement for non-
recoverable expenses.
• Ruined Photos. If one’s photographer’s film is defective, or negatives are
lost or damaged, wedding insurance help cover the cost to re-take new
photos.
• Call to Duty. If the bride or groom is unexpectedly called up to active
duty, or has her or his military service leave revoked, forcing them to
postpone the event, wedding insurance provide reimbursement for non-
recoverable expenses.
• Damaged Gifts. One can get repair or replacement cost if their wedding
gifts are damaged.
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• Sudden Illness. If the wedding needs to be postponed because sudden
illness prevents the bride, groom or their parents from attending, they can
receive reimbursement for non-recoverable expenses.
• Venue Requires Insurance. As an additional option to one’s policy, one
can add liability coverage to protect themselves in case a guest is injured or
causes damage to property.
• Liquor Liability. As an individual liability option to policy, one can add
this coverage to protect them against liability arising from alcohol-related
occurrences (subject to policy conditions and exclusions).
• Additional Expense. If a vendor suddenly becomes unavailable for ones
event but one can find a last-minute replacement, wedding insurance can
reimburse this for the difference in cost.
COST OF WEDDING INSURANCE
As with any other type of insurance, the cost of wedding insurance varies.
The price of one’s policy will depend on factors such as the type of wedding
one choose and the extent of cover they need. Each insurance provider will
usually have a range of cover packages on offer. Basic cover can be
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purchased for around £25, which would pay out around £6,000 if your
wedding is cancelled. For a high level of cover, which would pay out around
£50,000 for a cancelled wedding, policy prices range between £250 and
£350? In between, a range of cover levels are available to suit one’s wedding
plans and budget.
Essentially, the more one pay the greater the cover that one has, should
anything go wrong. The cover level one chooses will indicate the maximum
possible payout, not the amount that they are entitled to receive. If one have
a policy which offers £50,000 of cancellation cover, and their wedding is
cancelled, their insurance provider will assess ones claim and compensate
them accordingly: if the cancellation resulted in costs of £18,000 this will be
the amount one receive. It is worth paying more for a policy if one is
planning an expensive wedding, but will not always need the highest level of
cover. Remember that the cheapest policies may not provide with enough
financial cover, whilst expensive policies might charge for unnecessary
cover.
Let wedding budget to calculate the level of cover one requires. For
example, if one’s estimated wedding costs are:
Wedding dress - £2,000
Wedding attire - £1,500
Wedding rings - £1,750
Flowers - £800
Wedding cake - £350
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Transport - £1,000
Caterer - £1,750
Photographer - £1,000
Total = £10,150
A person may wish to consider a policy which offers cancellation insurance
of up to ten or fifteen thousand pounds. Currently, a policy offering £15,000
of cover costs around £60. Make sure that one compare policies, and prices,
to find the best deal: a wedding insurance policy offering roughly £10,000 of
cancellation cover currently costs £55 from one provider, but £99 from
another: a difference of £44.
It is advisable to purchase wedding insurance when one has an exact date for
the wedding in mind. Many policies are designed to cover for one year, and
some insurance providers will increase the cost of policy if you require the
insurance for longer than twelve months.
WEDDING INSURANCE COVER
Different wedding insurance policies will cover different aspects of one’s
wedding, and typically offer different levels of cover. The policy that is right
is usually the one which offers the correct amount of cover for the most
important aspects of your wedding. What these most important aspects are
will vary from couple to couple. The majority of wedding insurance policies
will cover:
Cancellation of the wedding
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Refund of deposits made to suppliers no longer able to provide the service
they promised
Damage / loss of wedding clothes
Damage / loss of wedding flowers
Damage / loss of wedding invitations
Problems with wedding photography / photographs / photographer
Damage / loss of wedding gifts
Damage / loss of wedding rings
Damage / loss of wedding cake
Problems with wedding video / video team
Problems with wedding transport
Damage / loss of luggage
Damage / loss of wedding documentation
Transport delays
Personal accident resulting in death or disability
Legal expenses, should a claim arise relating to the wedding or reception
Public liability, should someone, or their possessions, be injured as a result
of your wedding or reception
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WEDDING INSURANCE
A policy will detail the level of cover given for each of these aspects. A
policy offering £12,000 worth of wedding cancellation cover might offer
£6,000 of wedding clothes cover, £4,500 of cake cover and £10,000 personal
accident cover.
The amount of cover a policy provides will vary; typically, the more
expensive the policy, the higher the individual levels of cover will be.
However, some insurers charge more than others for the same level of cover:
it is important to do a research. Some policies include cover for other aspects
of the wedding, such as professional counseling in the event that someone
dies, or the wedding is called off by one party.
If one needs specific items to be covered by the wedding insurance policy,
they will usually be able to arrange the cover by paying an extra premium.
For example, if one is planning to have your wedding reception in a
marquee, they can insure the marquee itself for an extra sum: currently,
£20,000 of cover will cost around £30. Wedding insurance will not cover
every aspect of your big day: consider Wedding Cover Exclusions and
Weddings Abroad before you buy.
MAKING A CLAIM
If one has purchased wedding insurance and later need to make a claim, they
will need to contact their insurance provider. When insurance provider sends
your policy documents they will usually include details of the claims
procedure. One may need to telephone the company when one realize and
will have to make a claim, to inform them of one’s intention and check
which documents one will need to provide. There may even be a hotline
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which one can contact if there is urgent need of advice or assistance. They
may ask one to complete a claims form and return it with the relevant
documents.
Remember that one may need to register your claim within a certain number
of days of the incident occurring. Failing to make a claim for several months
may affect the claims procedure, or even one’s entitlement to compensation.
When one register their claim, they will need to describe what happened and
provide a rough estimate of the costs involved. If there is an urgent need for
repair or replacement of an item, for example, if their wedding dress has
been stained the day before the wedding, they will usually have to pay to fix
the problem with their own money, and claim back the amount they spend at
a later date. If they spend any money on repairs or replacements which are
covered by their insurance, make sure that keep any receipts: without these
one may not entitled to a refund.
Once a person has given the insurance company details of the claim, they
will have to wait for them to assess the situation and make a decision. This
process can take some time, but one should contact their insurance provider
if they have still heard nothing one month after making the claim.
BENEFITS OF WEDDING INSURANCE
Wedding insurance is not obligatory, but it can offer peace of mind for a
relatively small investment. When deciding whether or not to purchase cover
for one’s wedding day, remember that even if one do not purchase insurance
will need a contingency plan to cover unexpected costs. It is not uncommon
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WEDDING INSURANCE
for accidents to occur, or for unforeseen incidents to disrupt plans. Consider
the following pros and cons of wedding insurance:
Pros
Peace of mind - if something should go wrong on the day, one is insured.
Cost - weddings are notoriously expensive, but a basic wedding insurance
policy is typically inexpensive.
Cons
Cover - no policy will cover one for all eventualities, and one may not be
able to claim for every incident.
Cost - a wedding is an expensive commitment, and may consider insurance
to be an unnecessary extra cost.
Example Scenarios
The main benefit of wedding insurance is that one is protected in the event
that something goes wrong. The following scenarios highlight typical
advantages of purchasing wedding insurance:
Flooding leads to public transport strikes and closed roads. Guests are
unable to attend: wedding cancellation insurance pays the costs involved in
rearranging one’s day.
Cake maker goes out of business. Wedding cake cannot be made. Cake
insurance refunds one’s deposits.
Guests damage carpet and chairs at reception. Hotel demands compensation.
Liability insurance covers the cost of damages. 32
WEDDING INSURANCE
Bride tears hem of dress when trying it on. He must be repaired: dress
insurance covers cost of repairs.
Bride and bridesmaids struck down with severe food poisoning after hen
night. Wedding cancellation insurance pays the costs involved in rearranging
this day.
If one decides wedding insurance is unnecessary, make sure that one puts
money aside in a contingency fund, to cover costs if the unexpected does
happen.
Some more advantages of wedding insurance
1) Formal wear-you repair or replace, if the bride or groom tuxedo wedding
dress is lost or damaged.
2.) Lost deposits-reimbursement of the deposit if a vendor goes out of
business declared bankruptcy before the wedding, or simply not show up.
3.) Get Lost Rings one can repair or replacement cost is the bride or groom
Engagement rings are lost or damaged.
4.) Severe Weather-If a natural disaster forces one to postpone your
wedding; they cannot provide reimbursement for eligible costs.
5). Transportation Shutdown- If one’s wedding because of the commercial
transportation shutdown and the bride, groom or both parents will move set,
then get out there to reimburse non-refundable expenses.
6) Ruined Pictures-If photographer movie is defective, or negatives are lost
or damaged, the cost to re-take the photos is covered.
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WEDDING INSURANCE
7.) Call to Duty-If the bride or groom, it is mandatory, or unexpectedly
called his / her military leave revoked, forcing Event shift their expenses are
not reimbursable covered.
With under your insurance, you may be covered, rest easy. The weeks before
one’s wedding can be very emotional and stressful. Purchasing an insurance
policy is to calm one’s mind and help to relax and sleep peacefully at their
wedding weeks before hand.
CANCELLING YOUR WEDDING INSURANCE POLICY
If one wishes to cancel your wedding insurance, one may find it a difficult
process. By agreeing to purchase the insurance one has agreed to a legally
binding contract, valid until the end of the insurance term. Some companies
will allow canceling but will typically need to give them a certain amount of
notice, and may need to pay a fee to cover the administration costs of the
cancellation.
However, if one decides within fourteen days of purchasing a policy that
they wish to cancel the insurance, they are entitled to do so. It is their
statutory right to cancel their policy within two weeks of its purchase, its
renewal, or the receipt of policy documents in the post. One should be
entitled to a refund of any policy payments they have already made if one
cancels it within this period.
Make sure that one contacts their wedding insurer as soon as possible when
they have decided to cancel the policy. Many providers will have a hotline
that one can call: take the time to call and tell the company that will be
returning one’ policy documents. If one do not call, and the cancellation
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WEDDING INSURANCE
deadline expires before documents arrive, they may refuse to cancel the
insurance and/or refund the payment.
If one believes that policy was mis-sold, or that the insurer has acted
unfairly, one may wish to complain.
What isn't covered?
Be sure to read the exclusions in the policy carefully; one may think that
they are insured for something that they're actually not when one reads the
small print. Most policies won't reimburse the wedding costs if the bride and
groom decide not to get married for personal reasons. They also won't
usually pay to rearrange a wedding that has been cancelled due to a pre-
existing medical condition.
When should a person take a wedding insurance?
Ideally one’s wedding insurance should be the first item on things to do list
when one is planning their wedding. If possible one should take out a policy
before one spends anything on the wedding, and certainly before one pay
any large deposits. Sit down with the finance and work out for the wedding
budget before one start checking out insurance policies so that to have an
idea of the level of cover one will need.
Some insurance companies won't allow taking out a policy more than one
year before the wedding, but shopping around if one wants to take out
insurance sooner as many providers will offer this.
Top Three Wedding Insurance Providers
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With so much choice when it comes to buying a wedding insurance policy, it
can often be hard to know where to start. Here’s a guide to three of the best
providers on the market for wedding insurance to give you a head start.
Quality matters. If one is looking for the cheapest wedding insurance, it’s
not something one would recommend at Dolce Sposa. One can find that
cheap wedding insurance is cheap for a reason, i.e. when it comes to making
a claim one may have difficulty making a successful claim which makes it
rather pointless in paying for wedding insurance. They recommend that one
do it right and go for a reputable wedding insurance provider. And make
sure one read the fine print to understand the circumstances under which an
insurer will pay out.
1. E and L Insurance
E&L has a selection of cover levels, all of which provide comprehensive
cover for every eventuality. It covers weddings both in the UK and overseas
and also offers the same cover for civil partnerships.
Premiums
There are eight separate bands of cover at E&L, meaning one have a lot of
choice when it comes to choosing your level. The basic premium for Band 1
without any extras is £19.50, going up to £56.25 for Band 4 and £172.50 for
Band 8. The premiums are the same for both overseas weddings and civil
partnerships.
Example Cover
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WEDDING INSURANCE
Because there are so many cover bands, the level of cover differs greatly. As
an example, Cancellation & Expenses cover for Band 1 goes up to £6,000,
and for Band 8 it goes up to £50,000, meaning the vast majority of weddings
will be covered.
Pros
E&L does not charge excess on anything apart from Public Liability and
Marquees, where it is £99. It can be purchased up to two years before the
wedding, and the wide choice of cover levels makes it suitable for most
weddings.
Cons
Premiums for all types of weddings are the same, including civil
partnerships and weddings abroad, whereas they could be different to
provide better value.
2. Ecclesiastical Wedding Insurance
Ecclesiastical is one of the best wedding insurance providers in the UK,
offering a wide choice of cover levels and the unique feature that allows one
to pick and choose your own cover for each event.
Premiums
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There are five tiers of cover available, and the basic premiums are: £30, £56,
£82, £152 and £282. Extra marquee cover is available on all tiers for either
£75 or £105 depending on the type of marquee.
Example Cover
Cancellation or Curtailment cover ranges from £5,000 on Tier 1 to £50,000
on Tier 2. Public Liability cover is also comprehensive, covering anything
up to £5 million.
Pros
The wide choice of cover is what makes Ecclesiastical one of the best
providers around. The Mix & Match features also allow one to choose from
each cover level to make their policy even more specialized for the wedding.
Cons
Cheapest package does not include many of the basics, including rings,
wedding attire, gifts and failure of suppliers.
3. Cover My Wedding
Cover My Wedding is dedicated to providing wedding insurance, which
gives it a slight edge in the specialist stakes. The choice of cover is wide,
and the premiums are also affordable.
Premiums
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Cover My Wedding has four levels of cover, from 2 Star to 4 Star. The
premiums are as follows: £18.99, £39.99, £79, £139. Example Cover
Cancellation & Rearrangement cover ranges from £5,000 to £40,000, and
Ceremonial Attire cover ranges from £1,500 to £10,000. Most of the other
levels of cover also provide a wide choice for any type of wedding.
Pros
There is the option of an excess waiver available for which one will have to
pay a slightly higher premium. There is also a full range of optional extras
available to cover every eventuality.
Cons
No noticeable disadvantages, although it could have more levels of cover to
provide extra choice.
CHAPTER 4
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SWOT ANALYSISA SWOT Analysis is a helpful tool in which examine key characteristics of a
business.
This is a strategic analysis that is done in all businesses of all sizes: small
sole proprietorships on up to Fortune 500 organizations. This encourages all
businesses in the wedding industry to do this twice a year. It is great for
quickly assessing:
• Whether one is moving in the right direction or not
• What is AWESOME about one’s business?
• What needs to be changed and improved?
• What external factors (trends, economics, and politics) affect the business?
SWOT Analysis
The SWOT breaks down into two components, of two parts each (four parts
total):
Internal Factors:
• Strengths ñ the strengths of the business.
• Weaknesses ñ the weaknesses of your business.
External Factors:
• Opportunities and opportunities for the business. 40
WEDDING INSURANCE
• Threats and threats for the business.
SWOT is all about?
One final step is necessary in putting the SWOT information together. An
analysis is only valuable if one put a plan into place. In this last step you
will create a list of strategies for the business.
• Maximize our strengths to take advantage of opportunities: Strength-
Opportunity
Strategies (SO Strategies)
• Use our strengths to minimize the threats to our business: Strength-Threat
Strategies (ST Strategies)
• Use opportunities to lessen weaknesses: Weakness-Opportunity Strategies
(WO
Strategies)
• Mitigate the weaknesses in light of impending threats: Weakness-Threat
Strategies (WT Strategies)
Wedding Cancellation Cover – Damage of the wedding venue due to fire &
allied perils. Riot or curfew near the wedding venue. Death or injury to the
bride, groom or the family members.
Insured Property Protection cover – This can cover one’s house or a
wedding venue.
Personal accident cover – This is for the bride, groom and immediate family.41
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Money Cover – Keeping in mind large sums of money kept in the house
during this wedding this can cover theft.
Valuables Cover – This can cover all jewelery kept at the house during the
wedding.
Public Liability Cover – This can cover the legal liability that can arise
incase third party property is damaged during the wedding or third party
bodily injury caused due to accidents/ damage to the venue and food
poisoning during the wedding.
It’s very important to buy one wedding insurance policy in advance and not
last minute so that it covers all the details and you have understood the
policy well. Once you have taken a policy, remember to keep a proof of all
expenses, bills, booking receipts, jewellery valuation certificates etc. Do
contact us for help with wedding insurance policies in India.
CHAPTER 5
WEDDING INSURANCE IN INDIA AND ABROAD
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Wedding Insurance now gaining popularity in India!
Not many families here in India, inquire or know much about wedding
insurance available. Similar to general, automobile or health insurance,
wedding insurance policies is designed to offer financial protection to
couples and families from any unforeseen circumstances on their wedding
day. Many of us have heard of many things going wrong at weddings, a theft
or electrical mishap at the wedding venue or the residence of one of the
families is often heard of. Considering the amount of money spent on Indian
weddings it might make sense to spend a small amount on a wedding
insurance policy. Every country has their own guidelines for their policies
and policies in India are offering the following mentioned below. In addition
there are various plans for the same cover that allow one to choose the
premium for the maximum sum assured and proportionate to your total
wedding budget. There are also customized insurance packages for big
weddings that are tailor made to meet various clients’ needs.
Wedding Insurance in India and the U.S.A
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While buying insurance is the most un-marriage like thing one could be
thinking of while planning their wedding, it could just be one of the most
important things one do. Marriages today have evolved from being just a
ceremony uniting two people in holy matrimony to a large production,
where people often end up spending a large chunk if not most of their
savings. Wedding insurance is becoming a very common practice and a
safety net for many couples in India and around the world.
Insurance companies are cashing in on the country’s increasing affinity
toward purchasing insurance and numerous insurers have come out with
wedding insurance policies with widespread policies covering everything
from damages to your wedding outfit to weather calamities. While policies
in India and countries like the U.S.A cover many similar ’mishaps’, there are
some differences and the diversity is more evident when it comes to the
popular coverage options purchased in each country.
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A typical wedding insurance policy in the U.S.A and India offers financial
protection to the insurer from losses due to unforeseen events that hamper
the wedding proceedings or lead to its cancellation. Generally policies in
India cover losses arising from the postponement and cancellation of the
wedding due to causes like natural calamities, injury to the bride or groom or
an accident, injury to a family member, riots etc. One can also purchase
coverage to insure their wedding venue, valuables or liability arising due to
third party property damage or bodily injuries. With the amount of jewellery
and cash gifts present in most Indian weddings, protecting your valuables
can be a good idea and is one of the more common coverage options
requested. One of the most important aspects some insurers offer, especially
in a country like India where transportation hassles abound, is the protection
against problems arising when either the bride or groom is stuck or delayed
due to problematic transportation or road safety issues.
One the other hand in the U.S.A the availability of liability coverage is a
godsend. In a country where suing and law suits are so common a practice,
protection against third party damage and injuries can quite possibly save
the insured major moolah. Another popular option is wedding insurance
coverage in the case of either spouse having to move due to corporate
reasons or military deployment. People who live in cities where the weather
and commonly occurring natural disasters can create a problem like in the
hurricane belt or earthquake prone areas, can also take advantage of polices
that cover these calamities.
While wedding insurance in India and the United Sates both offer options
like protection against losses due to failure of service by vendors, wedding
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decorators, wedding photographers etc. there is one area that the U.S. has an
advantage – easing your heartbreak. Some insurance providers are actually
offering wedding insurance in the case of the bride or groom getting cold
feet no such luck here though one will have to deal with the emotional
turmoil along with the financial burden!
CHAPTER 6
CASE STUDIES
Bajaj Allianz Wedding Insurance
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Bajaj Allianz is offering wedding insurance with premium payments of as
low as below Rs 4,000, and as high as close to Rs 15,000. As per its website,
it has four insurance options -- Rs two lakh, Rs four lakh, Rs six lakh and Rs
eight lakh and the indicative premiums for these four options range from Rs
3770 to Rs 14276.
Wedding Insurance package is a customized Event Insurance package to
cover specific risks related to weddings. Bajaj Allianz is the first company to
launch such a unique and comprehensive cover for wedding cancellation or
postponement, where the insurance package covers for the monetary loss
following the cancellation or postponement of wedding due to fire and allied
perils, accident to bride/groom, accident to blood relatives resulting in
hospitalization within 7 days prior to the printed / declared wedding date,
damage to property, money in safe, burglary and public liability, etc.
Weddings have become quite an expensive and elaborate affair. People do
take care to make this once in a life time event a memorable one. This is a
comprehensive product that covers all the specific risks related to
weddings .The product has four Sum Insured options starting with coverage
of Rs. 2,000,000 and going upto Rs. 7,000,000.One can also choose among
6 types of risk coverages with varying Sum Insured options. The premium
would range from Rs. 3,770 to Rs. 14,276. There is a wide scope for such
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customized package products but the Indian market is still in its nascent
stages.
Bajaj Allianz launches insurance cover for weddings
Bajaj Allianz General Insurance, the leading private general insurance
company in India, is the first company to launch an insurance coverage for
weddings cancellation or postponement. Bajaj Allianz's profits grew by 52
percent in the first half-year of 2004-2005.
Bajaj Allianz General Insurance Company
Ahmedabad, India, Dec 2, 2004
The insurance package covers for the monetary loss if a wedding must be
canceled of postponed due to incidents such as fire, accidents before the
wedding, property damage or burglary.
Mr. Kamesh Goyal, CEO of Bajaj Allianz General Insurance, said, "These
days, weddings have become quite an expensive and elaborate affair. People
take care to make this once-in-a-lifetime event a memorable one. In case of
any postponement or cancellations, there is a certain risk of monetary loss.
The wedding insurance package can compensate the monetary loss. This
unique package product covers the specific risks related to weddings."
Premiums and profits
Bajaj Allianz's premium income grew by 84 percent to 4,050 million rupees
(68 million euro’s) in the first half of the 2004-2005 business years. Its
profits grew by 52 percent to 200 million rupees (3.4 million euro’s). Bajaj
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WEDDING INSURANCE
Allianz has set a target of raising a premium income of 7,500 million rupees
(126 million euro’s) in the current fiscal.
In the year 2003-2004, the company garnered a premium income of
approximately 4,800 million rupees (81 million euro’s) with a profit after tax
of 217 million rupees (3.4 million euro’s), a growth of 125 percent in net
profits. Bajaj Allianz sold over 1.2 million policies for the year. The
company has settled over 100,000 claims worth 1,500 million rupees (25
million euro’s).
Scope for customized package products
This is the first time that any insurance company in India has come out with
a wedding coverage. The company believes that there is a large scope for
such customized package products.
Bajaj Allianz is one of the few insurance companies who have entered the
event insurance market, offering customized solutions. Bajaj Allianz is
focused on sports, films and entertainment; it has insured events like golf
tournaments, cricket matches, award nights, product launches.
Bajaj Allianz General Insurance Company Limited is a joint venture
company between Bajaj Auto Limited, India's leading manufacturer of two-
and three-wheeler vehicles and the Allianz Group.
ICICI Lombard Wedding Insurance
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WEDDING INSURANCE
ICICI Lombard, on its part, provides insurance cover for the wedding
cancellation, material damage to the property such as wedding venue,
personal accident cover for insured person (bride or the groom) and any
public liability arising out of the cancellation. It covers cancellation or
postponement of the wedding ceremonies due to factors ranging from fire,
earthquake or burglary and theft at the venue. It also covers for "sudden,
unexplained, uninitiated failure" of the bride or the groom to appear for the
wedding ceremonies due to reasons like, death, personal injury or any major
illness. Price of your policy will depend on factors such as the type of
wedding you choose and the extent of cover you need. Each insurance
provider will usually have a range of cover packages on offer. Basic cover
can be purchased for around £25, which would pay out around £6,000 if
your wedding is cancelled. For a high level of cover, this would pay out
around £50,000 for a cancelled wedding, policy prices range between £250
and £350. In between, a range of cover levels are available to suit your
wedding plans and the budget.
Essentially, the more you pay the greater the cover that you have, should
anything go wrong. The cover level you choose will indicate the maximum
possible payout, not the amount that one is entitled to receive. If one has a
policy which offers £50,000 of cancellation cover, and one’s wedding is
cancelled, their insurance provider will assess their claim and compensate
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WEDDING INSURANCE
accordingly: if the cancellation resulted in costs of £18,000 this will be the
amount you receive. It is worth paying more for a policy if one is planning
an expensive wedding, but will not always need the highest level of cover.
Remember that the cheapest policies may not provide you with enough
financial cover, whilst expensive policies might charge you for unnecessary
cover.
Wedding Insurance
Wedding is an auspicious event that marks a beginning of a new chapter in
one’s life. It is the starting point of creating a family of own. It is a once in a
lifetime event that continues to bring you joy for the rest of your life.
However, even such an event can be affected with uncertainties. But the
good news is that they provide one with the peace of mind and security for
all those uncertainties, on the most memorable day. Insure one of the
happiest days in the life with ICICI Lombard General Insurance Co Ltd and
get covered against substantial risks. We cover you for Wedding
Cancellation, Material Damage to the Property, Personal Accident cover for
Insured Person and Public Liability
Section – I Wedding Cancellation
Scope of Cover: Cancellation or postponement of the wedding ceremonies
due to:
• Fire & Allied perils including Earthquake at the Venue.
• Burglary & Theft at the Venue
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WEDDING INSURANCE
• Sudden, unexplained, un intimated failure of the Named Person (s) to
appear for the wedding ceremonies on account of any of the following
contingencies:
Death of such Named Person(s)
Personal injury, either temporary or permanent, which renders the Named
Person(s) incapable of appearing at the insured event.
Illness resulting in hospitalization of the Named person 10 days prior to the
printed declared wedding date.
Basis of Sum insured for Wedding Cancellation:
Expenses on the following things will be covered:
A) Printing of Cards
B) Advances given to venue
C) Advances given to caterer
D) Advances to Decorations, music etc
E) Advance given to hotel room bookings / travel bookings.
Subject to a max of Sum insured
Main Exclusions: The Company shall not be liable for cancellation of the
wedding event due to:
• Bandh/Civil unrest
• Any act of terrorism
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WEDDING INSURANCE
• Kidnapping of the named person.
• Complete breakdown of transportation services which prevent the Named
Person(s) from reaching the venue.
• The non-appearance of any Named Person(s) due to such Named Person(s)
being a part of an air flight, other than as a passenger in a duly licensed
commercial aircraft, without the knowledge and consent of the Company.
• Any consequential loss due to cancellation of the insured event.
• Unexplained or mysterious disappearance or shortage in respect of the
property to be utilized for the insured event discovered upon taking of
inventory.
• Damage to, or destruction of, property caused intentionally by the Insured
or at Insured's direction.
Section – II Damage to Property
Scope of Cover: Direct physical loss/ damage caused to property insured due
to
• Std. Fire & Allied Perils including Earthquake
• Burglary & Theft
Basis of Sum insured for Material Damage:
Cost of decoration & Shamiana, hired sets, jewelry, precious metals &
stones, appliances - given by Blood Relations & In-laws Sum insured
break-up will be required, & Valuation certificates, bills etc. will be needed
for jewellery, precious metals & stones to be covered. 53
WEDDING INSURANCE
Main Exclusions: The Company shall not be liable for material damage due
to:
• Any damage caused to any property to be utilized for the insured event
caused by wear & tear, gradual deterioration, depreciation, mechanical or
electrical breakdown.
• Unexplained or mysterious disappearance or shortage in respect of the
property to be utilized for the insured event discovered upon taking of
inventory.
• Loss or damage to property stored outdoors without due attendance or
supervision.
• Damage to, or destruction of, property caused intentionally by the Insured
or at Insured's direction.
• Any act of terrorism
For complete details, please read the Policy document
Section – III Personal Accident
Scope of Cover: Named person including Blood relation & relatives are
covered against
• Accidental death
• Permanent partial Disablement
• Permanent Total Disablement
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(Names to be declared)
Main Exclusions: The Company shall not be liable for:
• Compensation under more than one of the foregoing sub-clauses in respect
of the same period of disablement of the insured person.
• Compensation in respect of death or bodily injury or any disease or illness
to the insured person directly or indirectly caused by or contributed to by
nuclear weapons, arising from ionizing radiations or nuclear contamination
by radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel.
• Compensation in respect of death, injury or disablement of the insured
person due to or arising out of or directly or indirectly connected with or
traceable to War, Invasion, Act of foreign enemy, Hostilities (whether war
be declared or not), Civil War, Rebellion, Revolution, Insurrection, Mutiny,
Military or Usurped Power, Seizure, Capture, Arrests, Restraint and
Detainment of whatever nature.
• Compensation in respect of death, injury or disablement of the insured
person from:
(a) Intentional self-injury, suicide or attempted suicide,
(b) Whilst under the influence of intoxicating liquor or drugs,
Section – IV Public Liability
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Scope of Cover: Liability towards third parties for any accidents resulting in
injury or damage occurring at the venue of the wedding, in connection with
the wedding, during the policy period.
Main Exclusions: The Company shall not be liable for any liability arising
due to:
• Pollution
• Acts of God, earthquake, earth-tremor, volcanic eruption, flood, storm,
tempest, typhoon, hurricane, tornado, cyclone or other similar acts or
convulsions of nature and atmospheric disturbances.
• Deliberate, willful or intentional non-compliance of any statutory
requirements.
• Fines, penalties, punitive or exemplary damages or any other damages
resulting from the multiplication of compensatory damages, or arising out of
any criminal liabilities
• Consequence of war, invasion, act of foreign enemy, hostilities (whether
war be declared or not), civil war, rebellion, revolution, terrorism,
insurrection or military or usurped power;
• Ionizing radiation or contamination by radioactivity from any nuclear fuel
or from any nuclear waste from the combustion of nuclear fuel.
• The radioactive, toxic, explosive or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof.
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WEDDING INSURANCE
• Claims arising out of any motor vehicle or trailer temporarily in the
Insured's custody or control for the purpose of parking.
• Damage to property owned, leased or hired or under hire purchase or on
loan to the Insured or otherwise in the Insured's care, custody or control
other than:
• Premises (or the contents thereof) temporarily occupied by the Insured for
work thereon or other property temporarily in the Insured's possession for
work
• Loss or damage to the Visitors' clothing and personal effects.
CHAPTER 7
CONCLUSION
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WEDDING INSURANCE
The big fat Indian wedding just gets bigger and fatter. As politicians, actors
and industrialist make news with the children’s multi-crore rupee wedding.
But, the bigger the wedding the harder it is to manage and God forbid, if
something goes wrong, each carefully made plan could come undone in
more time. Insuring the wedding might be the answer.
Different wedding insurance policies will cover different aspects of one’s
wedding and typically offer different levels of cover. The policy that is right
for one is usually the one which offers the correct amount of cover for the
most important aspect of the wedding. The concept of wedding insurance is
much popular abroad and hardly any marriages take place without getting
insurance cover. The concept of wedding insurance is fast becoming a
popular subject amongst couples. Wedding plan is useful as it helps and
cover for problems disasters or mistakes on your wedding day, from a
broken down wedding car to a problem at the wedding venue or just about
anything.
Wedding insurance is new in India. People are reluctant to go for wedding
insurance as they don’t want to think anything negative in the auspicious
day, since two of the private companies i.e. Bajaj Allianz And ICICI
Lombard have started offering this cover with exclusive premium and hope
that the concept will slowly start growing in Indi
CHAPTER 8
BIBILOGRAPHY www.bajajallianz.com
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WEDDING INSURANCE
www.icicilombard.com
www.protectmywedding.com
www.wedsafe.com
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