Monday, March 30, 2009


In India we never had any insurance cover to protect an individual from the financial ill effects of a job loss, till now. In Western countries, the job loss insurance is very popular product and has been there for a while. Most of the countries in developed world do have such products which provide help in meeting their loan EMI obligations etc, to people suffering from layoffs etc . But, ICICI Lombard has come up with a similar product in India as well.
What is this product?
This is not a stand alone Job loss insurance policy , but, comes as an add on cover with critical illness policy of ICICI Lombard which Covers risks such as accidental death and permanent total disability.
What does it cover?
Under this policy the company undertakes to pay 3 EMIs of the policyholder in case of job loss. For example, if the policyholder has housing loan of Rs 25000 p.m. , the company will pay off the 3 EMIs on the policyholders behalf as part of this policy cover.It also covers job loss due to termination of service due to illness.
Whats the term of the policy?
The policy cover is for a period of 5 years only post which it needs to be renewed. So for example , if a policyholder has a housing loan of 20 years and he wants this cover to last the full term of the loan then he will have to renew it 4 times i.e. after every 5 years.
What is the fine print?
The job loss has to be a result of closure of division or department due to financial limitations or action of any public authroity resulting in the anyclosure of the company.It does not cover job loss due to retrenchment, voluntary resignation or early retirement.Also it covers only 3 EMI payments and not more, so if your job loss period if for more than 3 months then you may be on your own from 4 th month onwards.
Is it worth it ?
In the absence of a standalone job loss insurance policy , I feel this is a useful product considering the business environment we all live in today. The job security is fast becoming a thing of past and as such this policy definately is step in the right direction for all Indian consumers. Hopefully, in future we will have standalone job loss policies from general insurers of this country which truly is the need of the hour. Nonetheless, since its an add on feature with the critical illness policy, its premium is lesser making it a good buying proposition.

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