Majority of Indians shun home insurance: Bajaj Allianz

Despite high awareness levels amongst Indians about home insurance, most do not have a home insurance cover, a recent survey by private general insurer Bajaj Allianz has found.

Amongst the 1200 respondents, 75 per cent said they were aware of the importance of home insurance. However, only 30 per cent of them had purchased home insurance covers for either their home or its contents.

A significant majority of the homeowners polled - 64 per cent - regarded earthquakes and other natural calamities as the biggest risks their houses were exposed to, followed by fire (28 per cent) and thefts and burglaries (8 per cent).

Insurers say that while enquiries regarding home insurance typically see a spurt after devastating catastrophies like Nepal earthquake, HudHud Cyclone in Andhra Pradesh and J&K Floods, home-owners tend to retreat into their shell once the memories of such calamities fade. As a result, few enquiries translate into actual sales.

Even amongst homeowners who had bought a home insurance policy, most seem to have taken the step due to nudge from their lenders. The study found that 60 per cent of home owners had purchased their home covers through banking and financial institutions as these institutions have offered them loans. The remaining 40 per cent purchased policies from agents and other sources.

The survey was conducted in May 2015 across metro and non-metro cities including Delhi, Mumbai, Bengaluru, Pune, Jaipur and Chandigarh.