Like so many other people, I have been getting my house insured (Householders Insurance Policy) for many years,earlier with National Insurance Company and more recently with BAJAJ Allianz.
I’ve always thought; “AT LEAST I'll have something to fall back on” even IF a landslide does take place. So for years the companies have been gobbling up my money assuring me that my home is insured for, amongst other things fire and natural calamities including landslides.
Here comes the interesting part:-
Following the heavy rains in Sep07, a part of the retaining wall below my house collapsed, necessitating costly repairs… so I put up a claim (my first one in all these years) to Bajaj Allianz , since THAT, I thought , was what insurance was all about. What I told the company was that in order to prevent much greater damage to my home in the future I would have to get the wall repaired as soon as possible.
But rather ironically Bajaj Allianz, like the Government ,does not believe in landslide prevention. Here is the reply I got from the company..
“Since the loss has affected only the retaining wall and no damage happened to your building, therefore the claim is repudiated and we close the file as NO CLAIM”
I am still pursuing the case with Bajaj Allainz but what I want to caution other gullible people like me about is that :-
a) Insurance company policies like so many others are plains-centric. No one loses land in a flood or in an earthquake in the plains so land cannot be insured (even though we lose land in landslides.)
b) Some insurance companies do insure retaining walls (whereas Bajaj Allianz has refused) but then you have to be specific about it. Please grill the insurance agent about specifics and read the fine print before you hand over the cheque.
c) Be sure that the insurance company will, in all probability never pay the full amount insured. In such an eventuality – do take the company to consumer court.
Comment by praful rao
Having said the above I confess at being a novice regarding insurance and would be glad to have inputs from more experienced people.