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While
taking the insurance policy, you will have to place a value against
each of the items for which insurance is required. This value is known
as the sum insured. In the event of a claim, the insurance company
will pay for the actual extent of loss/damage subject to an upper
limit of the sum insured for that item. The insurance company may
also impose a cap on some of the claims, for example Rs. 25,000 in
case of third party liability on account of personal injury or damage
to property. In the case of personal
accident insurance, the amount on insurance cover selected by you
will be paid. You can choose
your own policy by opting to insure only a few of the above listed
risks. The items to be insured and the sum insured can be changed
every year. The premium to the insurance company will have to be paid
every year. At the end of the year, you can stop the insurance policy
if you so wish by not renewing the policy. The premium is quoted as
per Rs. 1000 sum insured. A table of approximate premium rates is
given below.
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