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Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family.

Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss.

The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance.

The policy is tailor made to individual requirements and needs. The sum insured could be of any amount. The policy should be bought 10 to 15 days prior to the event.

All events related to the wedding — pre and post ceremony — are covered. In addition, a bundled policy which will cover all the eventualities related to the wedding functions can be purchased.
What it covers ?

The typical policy provides coverage against cancellation of the wedding due to accident suffered by bride/groom, accident suffered by blood relatives resulting in hospitalisation within seven days prior to the printed/declared wedding date, and damage to property.

If the marriage hall gets flooded or there’s an earthquake, the irreversible cost of the wedding will be reimbursed as per the policy terms and conditions.

Damage to property like stage, sets, seats and wardrobe due to fire, lightning, explosion, riot, strike and malicious damage, impact damage, aircraft damage, storms, flood and inundation, burglary and theft, terrorism or other external accident can be covered. The insurance can also cover any expenses related to litigation brought against you by third parties injured in an accident at the event.

Fine print of the policy

Wealth advisors say if you are opting for the policy it is important to look at all the exclusions clauses of the document. First evaluate what are the possible kinds of risks. Then one should look at what is the appropriate cover for each of them. It would help to arrive at the sum assured that one can take. Considering it is a customised product, it is likely that the insurance company has sub limits for each of the possible risks.

It is also important to incorporate accidental cover and loss of life/disability due to acts of terrorism. Since it is a customised product, one may need to evaluate options from at least 2-3 insurance providers, say wealth managers. There is likely to be a huge variance in premiums as it is not a standard insurance.

RATE CALCULATION

The variation in rates would depend on evaluation of individual risks on the following parameters:

  • Location
  • Venue (outdoors or indoors)
  • Type of decoration
  • Number of days
  • Number of programmes (mehendi, sangeet, cocktail)
  • Number of guests

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