There are lessons to be learned from 7.8 magnitude earthquake that jolted Nepal and several parts of India. The earthquake is nature's reminder about how vulnerable we are to the natural calamities. Yet the message often gets lost after a while once the media turns to a new story and rescue operations are over. But, the pain and problems of people in earthquake-hit regions continue for years as they struggle to overcome the loss of the lives of their loved ones and their homes.
Geologists have already warned about more such earthquakes and have identified nearly 38 Indian cities in high-risk seismic zones. The situation has again highlighted the need of insurance in each one of our lives, which is often neglected by people. Having appropriate insurance in place can redeem one from certain problems to a larger extent.
Some see life insurance as an unnecessary cost, but its significance becomes meaningful when people are hit by natural calamities. Breaking down the calculation, if a Rs. 50 lakh term life cover costs Rs. 8,000-Rs. 10,000 then it takes between Rs. 20-30 a day for a person to get himself insured against unfortunate events. The cost is justifiable for a family, which is dependent on a single earning member.
Another trashed idea is that of buying a home insurance. People buy homes worth lakhs from their hard earned earnings but do not factor in the need to preserve their most valued possession from natural calamities. Only 1% of the homeowners have appropriate home insurance in place, as per the recent data. It is surprising that people fail to pay Rs. 6-12 a day towards insuring their home, which is exposed to several dangerous possibilities. It takes anywhere between Rs. 2,000-4,200 a year to insure a 35-70 lakh worth property, which is reasonable enough to encourage people buy home insurance.