Insurance Policies For Natural Disasters

Know about what are the different types of insurance policies for natural disasters or act of god.

Every natural catastrophic leaves behind a long trail of destruction to life and property. It takes years for an individual to get back to the financial state that he/she was before the calamity.

Though natural disasters are unpredictable and uncontrollable, a small amount of preparation to deal with such unforeseen situations can go a long way in keeping the losses low.

It goes without saying that the loss of human life is impossible to compensate, but the financial shocks from unanticipated situations can be absorbed by taking the right insurance policies for natural disasters.

Just like God helps those who help themselves, it is time to help yourself and buying the following insurance covers to weather the storm, well literally.

Health Insurance

In reality, beyond damaging physical infrastructure, natural calamities lead to an outburst of infectious diseases and worsen those with chronic diseases. Physical injuries are common in natural disasters, which can lead to the days of hospitalisation.

At this stage, a health insurance policy can play a crucial role in providing the best treatment without worrying about medical expenses. One can avail cashless treatment at network hospitals of insurance companies without paying the medical bills. Some insurers also offer a daily amount for each day of hospitalisation if it exceeds a certain number of days.

Even if no hospital bed is available in the calamity-affected area, the person can take the treatment at home as well, and further approach the health insurer for the reimbursement of medical expenses. Moreover, it is highly affordable to buy a health insurance policy for self or family. For instance, a 25-year old can opt for Rs 5 lakh health insurance coverage by paying merely approximately Rs 600/per month.

While health insurance can’t curtail the emotional and mental stress followed by natural disaster, it can certainly help you deal with your physical health so that you can avail quality medical treatment against odds of nature.

Personal Accident Insurance

What if a natural disaster causes severe injuries and renders you incapable of earning money? How would you meet expenses in case of disability? Scary isn’t? What can salvage you from such a situation is a personal accident insurance policy that offers a wide cover for accidental disability or death, while also compensating the policyholder for loss of income in the course of recovery.

We learn from every natural disaster. Whether it’s a fire, or a flood, we learn something from it so we can respond to the next one better. : Malcolm Turnbull, Ex-Prime Minister of Australia.

A personal accident insurance policy covers total, partial along with temporary disabilities as well. Apart from offering extensive coverage against disability and death, personal accident insurance policies are well integrated to give financial support to the policyholder. This is because in many cases, the earning capability of the person may partially or completely be lost after an accident.

Strategically, the policy plays an imperative role in helping the policyholder and dependents to cover the cost of household income, medical expenses, outstanding debts and lost income. Unlike other insurance plans, the premium of personal accident insurance policy depends on the occupation and not the age.

Personal accident insurance gives respite against treatment expenditure and also financially secures the life post discharge.

Travel Insurance

Fondly called God’s own country, Kerala is one of the popular tourist destinations both in India and abroad. Tourism contributes nearly 10% to the state’s gross domestic product, which has been severely affected by incessant rains and consequent floods in 2018. Not only local people, travellers who were in the state to enjoy their holidays had also faced a tough time in combating with nature’s fury. Abandoned on an unfamiliar land, the situation was no less precarious for travellers. However, travellers who were caught in the rain would have been saved from financial losses had they bought a travel insurance plan prior to their trip.

While making holiday plans, people pay attention to things like where to stay, what to wear, where to travel, etc.; they seldom think of buying a travel insurance policy. Though it is good to be optimistic that nothing could go wrong during the holiday, it could get really troublesome if things don’t go as per the plan.

While the holiday is a time to relax, events like loss of passport, baggage loss, flight delay or cancellation, personal accident along with natural calamity, etc.; can arise without prior notice to dampen your holiday spirit. Therefore, it makes complete sense to go with a travel insurance policy which comes handy in case of unforeseen events.

In fact, during unfortunate events, like, natural calamity, dedicated assisted services, like medical evacuation, medical treatment, emergency cash advance and similar services are well taken care of by the insurer.

Buying a travel insurance policy is an inevitable way to enjoy the holiday with complete peace of mind.

Other Important Insurance Policies for Natural Disasters

In addition to the above insurance policies, it is prudent to add home insurance and term insurance in your kitty. A natural calamity can destroy or cause severe damages to house and its contents, wiping away the life’s savings that you have invested in buying or building a house. To secure your abode, it is essential to buy a home insurance plan that offers protection against natural disasters along with other perils like fire, theft, burglary, electrical breakdown, etc.

Similarly, it takes a completely unexpected event like a natural disaster to devastate the financial contours of a family completely. What if you are the breadwinner of your family and become the victim of such an event? A term insurance policy will make a payout to your nominee in your absence and thus, ensure their financial protection even when you are not around.

Conclusion

Availing a healthy mix of insurance covers would not only bring you and your family under the umbrella of financial security against unexpected events but also ensure that you do not have to build your life from scratch. Moreover, during natural disasters, most of the insurance companies ease the claim settlement process with only fewer documentation required, to expedite the claim settlement.

In short, you no longer can bury your head in the sand and believe no one is watching you. It’s good to be positive but for the sake of protection, it’s best to act and not leave things to luck.

Image Source: Direct Travel Insurance

 

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