A recent survey by general insurance company ICICI Lombard found out that 93 percent of respondents do not have a home insurance policy. Also, 62 percent of those surveyed were aware of the benefits of a home insurance but most did not feel the need to get their homes covered. 59% cited they would consider getting one if premiums are lower and the claims process is made simpler.
The survey comes on the heels of Chennai floods which caused massive damage to property and life estimated to be over Rs 20,000 crore. The floods in Chennai were ranked amongst eight most expensive natural disasters in the year by UK-based reinsurer Aon Benfield. Insurance companies have received flood-related claims worth Rs 5,000 crore. Home insurance typically provides protection against natural disasters such as floods, fire, theft amongst others.
The survey was conducted amongst 2000 respondents, half of whom were in the age-group of 36-40 and had acquired their homes in the last three years. Home insurance segment remains highly under-penetrated in India.
