3 must-have insurance covers this Diwali

The Rangma tribe in Nagaland celebrates Ngadah festival after the harvest in November-end every year. On the last day of the eight-day festival, they perform three rites to protect themselves from natural calamities.

Making peace with fire is the first ritual they perform, in the hope that it would secure them and their belongings from this mighty force. With the festival of lights round the corner, we have a lesson to learn from the Rangmas.

Even after being extra careful about handling crackers and diyas, we can never completely eliminate the risk of fire. This is where insurance covers help. Though there are no festival-specific insurance policies in India, some of these can bail you out from the risks that festivals entail.

The threat of indoor damage extends from the furniture and upholstery to the Hussain painting on your wall or the antique vase on the shelf. All of these can be covered under the householder's policy. This policy covers 10 different risks, including fire, burglary and breakdown of domestic appliances. You can get a cover worth Rs 100,000 for your property against fire at a cost of Rs 50.

Though fire hazard is high during this season, it is not the only threat. Risks such as burglary, damage and loss are heightened during this period. In order to mitigate these other risks, you can pick and choose from the various options available under a comprehensive householder's policy.

Experts say that you should insure your property against fire and burglary and the belongings you insure should include jewellery and mobile equipment like TV and camera. A household cover worth Rs 100,000 will have a premium of around Rs 2,210.

Risks like breakage of windowpanes and breakdown of electrical appliances are all comprehensively covered under this policy. Those who step out of their homes to celebrate with friends and extended family can opt for robbery cover for their homes at Rs 150 for every lakh of insured value.

Jewellery is at a lot of risk during the festive season, with revellers wearing it liberally while attending ceremonies and parties. But jewellery can be insured too. Says Rahul Aggarwal, director, Optima Risk Management Services, "A policyholder will be reimbursed the value of the jewellery if it is lost or damaged."

Cover is usually available at a premium of Rs 10 for jewellery worth Rs 1,000. The cover can be extended to electronic gadgets. Cameras and handycams that are busy recording the festivities can also be insured.

Comprehensive motor insurance takes care of damages to your vehicle. If your car catches fire due to a rocket fired by your neighbour, the repairing expenses can be covered through a cashless form of motor insurance. On an average, insurance charges will be 3 per cent or Rs 9,000 for a car valued at Rs 300,000.

Then, there is the possibility that you might hurt yourself. You can get a health cover, which will take care of all your hospitalisation expenses for Rs 1,300 per Rs 100,000 of cover.

Whether the risks against which you are buying cover are serious enough to justify the cost of the policy is a subjective question. However, there is no denying the fact that the covers act as a protective shield against risks which you could be exposing yourself to amidst the festivities.

Our advice? Have fun but stay safe!