Hyderabad: Agents’ commissions for household insurance is comparatively higher than other insurances and the premium is lower. However, life and medical insurance still top the list as people give more important to these. Agents too show less interest in selling household policies.
Agents also do not even press for household insurance as customers do not cooperate with them to declare personal details, and moreover there are less chances of damage.
“If you do not have insurance for your vehicle, you will be penalised or you are likely to face legal action. But this is not the case with home insurance. Though health insurance is also not mandatory, people go for it because of their health consciousness,” said Mr Reddanna, a retired police officer.
With the rise in constructions, there is a risk of fire accidents, but still very few people come forward for these. “These days all constructions have false ceilings where there is a high risk of fire, still people are careless. They get insurance for jewellery as there are more chances of theft or snatching,” Mr Reddanna added.
Even companies offering home loans make it mandatory for life insurance of the person who has applied for a loan, but household insurance is neglected. “Even the housing projects for the poor taken up by the government are not insured. The government can take steps to insure the houses given through welfare schemes by partnering in paying the premium,” another senior official added.
Household insurance is also seen as an investment without any returns. Mostly youth settled abroad and their parents staying here take household insurance.
“As their elderly parents are alone here, they feel they are more prone to robbery or house thefts, so they insure their house and the articles within,” the officer added....