Lavish desi weddings run for insurance cover

Chennai: The big fat Indian wedding has got itself a big fat insurance cover. As expenses of lavish weddings soar, financial risks increase in step. Which is why the idea of insuring weddings — scoffed at a few years ago — has caught on with insurers recording an uptick in the number of families signing up. When wedding budgets hover around Rs 50 lakh, it is best to cover the risk of a cancellation or postponement, and protect the families concerned from massive financial hit.

“More families with large wedding budgets have been buying insurance of late. We’ve sold over 70 wedding insurance policies to event management companies this year, a 30% increase since last year. There’s also been a 25%-30% increase in individual families who have purchased wedding cover directly, as compared to last year,” said Shreeraj Deshpande, chief operating officer at Future Generali India Insurance in Chennai.

Cancellations and postponements are the biggest fears, because wedding venues mostly have a no-refund policy, and caterers swallow a meaty 10% penalty while some show the appetite to charge 50-70% of total payment on cancellation. Such charges can be difficult to digest for families already reeling from the aftershocks of a cancelled or postponed wedding. An insurance also covers burglary and theft during the wedding, personal accident at the venue, and even damage caused to property by fire or earthquake. Not that the insurer will be there through thick and thin. Sudden deaths in the family is open to a claim, but sudden “change of heart” as reason for cancellation will not be covered. Neither will insurers consider a claim if a wedding is called off over disputes between bride, groom, family and friends or suicide or attempted suicide at the wedding venue. Even so, families are happy to pay premiums of 1% to 1.5%, or Rs 50,000 for a Rs 50 lakh cover, said Subramanyam Brahmajosyula of SBI General Insurance.

“Premium for a Rs 50 lakh-Rs 60 lakh cover could range between 0.25% and 0.30%,” said Deshpande. It makes sense, say wedding planners. Shruti Ravindran of VidaWedding talks of a client whose wedding she organised. “A client in Chennai suffered both emotional and financial losses when the groom’s side called off the wedding. With a budget of Rs 25 lakh, the décor was booked, photographer fixed, shopping over. The wedding was cancelled barely a month before the big day. No refund came their way. The same bride approached us a second time after three years but the budget was reduced to Rs 5 lakh. The family opted for an intimate wedding this time around. An insurance could have helped such situations, at least cover cancellation costs.”

Rescheduling is another “horror”. “Postponing a wedding is a herculean task. Advances to venue, to caterer, for decorations, music, printing of cards, even for hotel bookings and travel costs may get covered under the insurance, but rescheduling costs double,” said wedding planner Aneesha Sudhakar of Wedding Mela. Among the biggest hassles of a lavish wedding being postponed is flight tickets that may have to be rebooked at higher rates. This is the kind of risk for which families organising weddings seek policies that cover more than the cancellation cost. Some wedding planners include guidance on wedding insurance in their portfolio of services. One starts on a note of reassurance: “Wedding insurance can help ease the financial burden in case of ... a cancellation if things go awry,” and offers to “speak with different companies about payments and options to find the right insurance plan... The peace of mind that wedding insurance brings is worth the initial effort taken to find a policy that works best for you.”

Source: The Times of India