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Consider this: You are in charge of organising a high-profile event, which entails several mini-functions in addition to the main one. The budget runs into several crores of rupees and the number of invitees is close to 1,000. Given the scale of the event, you know there are chances that many a things could go wrong. Therefore, one of the first things you would do as an event manager is to recommend buying insurance to cover the risks that could jeopardise the function.

Now, suppose the event in question happens to be a wedding of a close relative, with you having taken the lead in managing the ceremony. In this scenario, it is likely that insurance will be the last thing on your mind as a 'manager'. No one wants to consider the possibility of a cancellation or accidents. Perhaps, this is the key reason why wedding insurance typically does not find a place in a family's must-do list. This, despite, Indian weddings being synonymous with huge spends, often sourced from lifetime's savings.

Making a quiet entry

Some families, though, seem to have started according due importance to this cover. "While the concept of wedding insurance has not taken off in a big way, we did receive proposals for certain high-profile weddings last year. Usually, those spending over 10 crore on weddings opt for wedding insurance," informs Anuj Tyagi, head, corporate and rural agri-business, HDFC ERGO General Insurance.

The cities where the venues are located also play a key role. "We have seen such policies being bought mostly for weddings in Mumbai and Delhi. In Chennai, on the other hand, we haven't seen many people seeking this cover," adds TA Ramalignam, head, underwriting, Bajaj Allianz General Insurance.

Terms of coverage

Primarily, the standard policy offers insurance against any cancellation or re-scheduling of the wedding. "This could be due to death of the bride, groom or their immediate family members, accidents that are severe enough to result in postponement, calamities like cyclones, floods and fire at the venue," says Tyagi. "In addition, you can opt for covers against personal accident (to take care of treatment costs), burglary and theft."

Any damage to the bride or the groom's residence can be covered as well, in addition to loss of money or valuables due to theft or burglary. A public liability cover can bail you out in case of any legal liability arising out of injury to a third-party or property. Most general insurers offer wedding insurance as a standard package, but also allow customisation as per your needs.

At the time of buying a cover, therefore, you need to make a list of expenses and items you wish to cover so as to ascertain the requisite sum assured. "While estimating the ideal cover amount, you need to factor in the expenses that are not recoverable. For instance, money paid to the marriage venue, decorators and event organisers," says Ramalingam.

Also, the insurance company will reimburse the amount minus the refund, if any. The coverage can, depending on your selection, start a week before the wedding and thus, can come in handy if you are, say, travelling from one place to another. Such covers can be bought even if the venue is located abroad.

Keep an eye on the exclusions

You need to bear in mind that the cover undertakes to offer compensation only for cancellation due to unforeseen eventualities. Therefore, if the wedding is mutually called off or postponed, the cover will not kick in. Same would be the case if it stems from a dispute between the two families.

While the insurer will pay up if the groom or the bride is unable to turn up at the designated hour due to external factors like riots, strikes, disruption of flight schedules etc, any last minute refusal to get married will not be covered. Any misrepresentation or concealment of facts will also result in rejection of the claim. For example, if the venue is located by the beach and the insured has concealed this fact at the time of buying the cover, the insurance company will not be responsible should the event be disrupted by floods.

Documentation for claims

Like all other insurance claims, you need to get in touch with your insurer to file the claims. The company may want to assess the documents to verify the amount to be paid out. In case of accidents, you may need to submit documents related to hospitalisation. Similarly, in case of burglary and theft, a copy of the FIR (first information report) lodged with the police will have to be produced.

Making a list of all that can go wrong is certainly not a pleasant thing to do. And it gets accentuated due to the magnitude of emotional investment into a marriage. However, there is no harm in being practical in matters like these, given the large sum of money at stake. All that is required is a slight mental adjustment, because the cost of this cover can hardly be a deterrent. With a premium of less than Rs 3,000 for a Rs 20-lakh cover, a wedding insurance is likely to fit into your big fat budget with ease.