wedding insurance

88
WEDDING INSURANCE Chapter-1 Insurance - A Brief Overview In 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. 1

Upload: sreeja-sahadevan

Post on 22-Oct-2014

30 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Wedding Insurance

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

Page 2: Wedding Insurance

WEDDING INSURANCE

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.

2

Page 3: Wedding Insurance

WEDDING INSURANCE

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.

3

Page 4: Wedding Insurance

WEDDING INSURANCE

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.

4

Page 5: Wedding Insurance

WEDDING INSURANCE

• 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

5

Page 6: Wedding Insurance

WEDDING INSURANCE

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

6

Page 7: Wedding Insurance

WEDDING INSURANCE

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

Page 8: Wedding Insurance

WEDDING INSURANCE

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.

8

Page 9: Wedding Insurance

WEDDING INSURANCE

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

Page 10: Wedding Insurance

WEDDING INSURANCE

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

10

Page 11: Wedding Insurance

WEDDING INSURANCE

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

Page 12: Wedding Insurance

WEDDING INSURANCE

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

12

Page 13: Wedding Insurance

WEDDING INSURANCE

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.

13

Page 14: Wedding Insurance

WEDDING INSURANCE

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

14

Page 15: Wedding Insurance

WEDDING INSURANCE

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

Page 16: Wedding Insurance

WEDDING INSURANCE

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

16

Page 17: Wedding Insurance

WEDDING INSURANCE

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

17

Page 18: Wedding Insurance

WEDDING INSURANCE

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

Page 19: Wedding Insurance

WEDDING INSURANCE

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.

19

Page 20: Wedding Insurance

WEDDING INSURANCE

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

20

Page 21: Wedding Insurance

WEDDING INSURANCE

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.

21

Page 22: Wedding Insurance

WEDDING INSURANCE

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.

22

Page 23: Wedding Insurance

WEDDING INSURANCE

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

23

Page 24: Wedding Insurance

WEDDING INSURANCE

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.

24

Page 25: Wedding Insurance

WEDDING INSURANCE

• 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.

25

Page 26: Wedding Insurance

WEDDING INSURANCE

• 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

26

Page 27: Wedding Insurance

WEDDING INSURANCE

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

27

Page 28: Wedding Insurance

WEDDING INSURANCE

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

28

Page 29: Wedding Insurance

WEDDING INSURANCE

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

29

Page 30: Wedding Insurance

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

30

Page 31: Wedding Insurance

WEDDING INSURANCE

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

31

Page 32: Wedding Insurance

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

Page 33: Wedding Insurance

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.

33

Page 34: Wedding Insurance

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

34

Page 35: Wedding Insurance

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

35

Page 36: Wedding Insurance

WEDDING INSURANCE

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

36

Page 37: Wedding Insurance

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

37

Page 38: Wedding Insurance

WEDDING INSURANCE

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

38

Page 39: Wedding Insurance

WEDDING INSURANCE

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

39

Page 40: Wedding Insurance

WEDDING INSURANCE

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

Page 41: Wedding Insurance

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

Page 42: Wedding Insurance

WEDDING INSURANCE

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

42

Page 43: Wedding Insurance

WEDDING INSURANCE

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

43

Page 44: Wedding Insurance

WEDDING INSURANCE

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.

44

Page 45: Wedding Insurance

WEDDING INSURANCE

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

45

Page 46: Wedding Insurance

WEDDING INSURANCE

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

46

Page 47: Wedding Insurance

WEDDING INSURANCE

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

47

Page 48: Wedding Insurance

WEDDING INSURANCE

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

48

Page 49: Wedding Insurance

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

49

Page 50: Wedding Insurance

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

50

Page 51: Wedding Insurance

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

51

Page 52: Wedding Insurance

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

52

Page 53: Wedding Insurance

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

Page 54: Wedding Insurance

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

54

Page 55: Wedding Insurance

WEDDING INSURANCE

(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

55

Page 56: Wedding Insurance

WEDDING INSURANCE

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.

56

Page 57: Wedding Insurance

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

57

Page 58: Wedding Insurance

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

58

Page 59: Wedding Insurance

WEDDING INSURANCE

www.icicilombard.com

www.protectmywedding.com

www.wedsafe.com

59