Now, you can customise insurance policies

MUMBAI: After weddings and hair-cuts , insurance policies are set to take the ���customisation��� path. The financial security covers will soon come with add-on services, of course, by paying extra premium. The Insurance Regulatory and Development Authority (IRDA) has approved the customisation of non-life policies for extra premium that insurers for new products from January 2009.

So when you buy a motor insurance policy, you may get options like a temporary replacement of a car in case it breaks down, or even complete reimbursement of damages even if the vehicle is over five-years-old , by paying extra premium on the insurance cover.

Similarly, you may be able to pay a low premium for your household and factory insurance cover if you are willing to share the claim with the insurance firm. ���Insurer will be permitted to add on covers above the tariff in the case of fire, engineering, and motor insurance with appropriate additional premiums,������ a senior IRDA official said.



The idea, he said, was to give more flexibility to insurers so that they, as well as policy holders , benefit from this new agreement . IRDA has also permitted variation in deductibles in fire and motor insurance policies. ���This effectively means insurance products can be provided for lower premium if the policy holder is willing to share the claims in case of damages,������ said Rahul Agarwal CEO, Optima Insurance Brokers said.

Insurers and brokers see this as one more step towards full detariffing of the insurance sector. ���IRDA has now decided to relax the terms and conditions of coverage. This will give a lot of felixibilty and firms will now showcase innovative products ,������ said Swaraj Krishnan, CEO, Bajaj Allianz General Insurance said.

Mukesh Thakker, development officer state-run New India Assurance Company said, ���Since insurers are now free to design policies of their own, there will be a wider choice for customers, who has already benefited by de-tariffing as tariffs have come down by substantially.������