6 Cheap And Hidden Insurance Covers You Aren't Aware Of

Do you think you are aware of all the insurance covers? If yes then think twice. There are few insurance covers that are free and cheap, but are hidden and you are not aware of it. Few products and services when sold have insurance covers, which most of the customers aren’t aware of. Some of the home appliances do have insurance cover such as LPG (Liquefied Petroleum Gas), which is one of the most basic necessities in your day to day life. It is seen that there is a free insurance cover of up to 4o lakhs if you buy an LPG but dealers often don’t inform their customers about this. Usually this is a group insurance which dealers take it and they pay the premium, but for customers it is free so they don’t bother to inform about it. However, Neha Pandey Deoras of Business Standard has compiled a list of such free and hidden insurance covers.

Insurance Policies For Deposits

Have you ever thought of having insurance for deposits? Deposit Insurance and Credit Guarantee operation is the second oldest deposit insurer who are in charge of taking care of interests of small depositors. The best part of this premium is that you don’t need to pay a penny for this insurance as bank is the one who pays the premium. If you have a deposit of 50, 000 then adding your interest of 5000 your insurance coverage will be around 55,000. Any deposits beyond 1 lakh are automatically insured even without your concern.

Policy For Online Transactions

Ever heard about policy for online transactions? If no let’s see what is this transaction all about. Due to increasing frauds during online transactions, National Payment Corporation of India (NPCI) has come up with an idea of insuring both domestic and international transactions. This policy mostly comes along with the credit and debit cards, which includes cover for transactions based on PIN in ATMs, e-commerce transactions, point of sale. It is insurer’s responsibility to provide an insurance of about 10 crore and 50,000 per card according to NPCI. Often the insurers do not inform the customers about this, but if something goes wrong with the transactions customers will be at risk.

Domestic Appliance Insurance Policy

Most of the domestic appliances have insurance covers hidden in them, which are not always disclosed to customers by the manufacturers. This coverage benefits you in case of any damage to your home appliances due to electrical or mechanical breakdown. Often these insurance covers come into light during festive seasons where manufactures advice the customers to buy it putting some extra charges for it. When consumers look at the rates they would think of buying such policies by their own instead of buying it with the products.

Third-party Liability And Travelling Insurance

Wondering what is third-party liability insurance? Third-party liability insurance provides you with the coverage for any material or physical damage caused to the third person by you. Usually motor vehicles don’t have insurance for the damage caused by it, but if you possess one motor vehicle you should have third party liability insurance to use it wherever you are. It is mandatory in countries like United States and Canada due to high liability claims and amounts involved.

Travel insurance provides you with the coverage of damage, theft of baggage, loss and in addition to that it also includes extra cost caused due to death, illness and accident. You can even add medical insurance to your travel insurance but this facility need to proper enquiry.  

Pension Plans

Unit linked and endowment are two kinds of cheap pension plans offered by the insurance companies often people not aware of. In Unit linked plan you can stop putting money after a period of 10 years but the money will be added to your corpus till the completion of period. Rate of returns are very less in case of endowment plans.

Term Insurance

Do you own a term insurance? No? Better get it soon.  As we know death is unpredictable it can come to anyone anywhere, so protect your family from financial crisis. This insurance is for a specific period of time and the premium paid is the lowest, however, the best part is that you can extend the term period according to your wish. Waivers like kids, parents etc. can be added in between the term and in case of your untimely death family members will get benefited.

Source: Silicon India