Indian Flood Insurance, India Flood Insurance, Flood Insurance India
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An Indian flood insurance policy entails the insurer taking the responsibility of indemnifying the policyholder for property losses faced due to flooding. India flood insurance is, however, not a very common policy among homeowners in the country.
Most home insurance contracts provide protection against loss caused by overflowing of water within the house. To cover oneself against the natural disaster of flooding, however, one needs to opt for a separate policy.
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Which are the Major Flood Prone Areas in India?
One of the most common natural disasters in India is flood. The eastern states, such as Bihar, West Bengal and Orissa, are especially susceptible to floods. In 1980, the National Flood Commission estimated the total flood prone area in India at 34 million hectares. Annually, the estimated rainfall (including snowfall) amounts to 4,000 billion cubic meters (BCM) in the nation. The major four zones in India that are comparatively more susceptible to floods include:
What are the Measures to be Taken to Cope with the Risk of Flood?
The risk of flood can be mitigated by taking integrated actions. The major contributors should be the financial industry, specifically the insurance sector, the state and the affected enterprises and people.
What are the Benefits of India Flood Insurance?
The policyholder stands to gain a lot out of Indian flood insurance on financial grounds, since s/he receives compensation for the loss of property due to flood. Another benefit is that the insured person can also get his/her personal belongings covered under an India flood insurance policy. Therefore, an individual will not have to pay for the replacement of all the contents of a building damaged by flooding. Individuals only have to pay a very reasonable amount in the form of deductibles, which is decided at the time of obtaining the flood insurance India policy for the first time.
The property can be protected under a number of different flooding events. Although rain is the major cause of most of the floods, the insured can also be indemnified against loss caused due to overflowing of other water bodies, clogged storm drains, melting snow, etc. The low cost of Indian flood insurance policies is another advantage of taking the policy.
