:: Life n IT

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. Youcan 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.