Insurance policies are all set to take the ‘customisation’ path!!
The financial security covers will soon come with add-on services, by just paying some extra premium. The Insurance Regulatory and Development Authority (IRDA) has approved the customisation of non-life policies for extra premium that insurers for new products from January 2009.
So when you buy a motor insurance policy, you may get options like a temporary replacement of a car in case it breaks down, or even complete reimbursement of damages even if the vehicle is over five-years-old , by paying extra premium on the insurance cover.
Similarly, you may be able to pay a low premium for your household and factory insurance cover if you are willing to share the claim with the insurance firm. “Insurer will be permitted to add on covers above the tariff in the case of fire, engineering, and motor insurance with appropriate additional premiums,’’ a senior IRDA official said.

This will give more flexibility to insurers so that they, as well as policy holders , benefit from this new agreement . IRDA has also permitted variation in deductibles in fire and motor insurance policies. This effectively means insurance products can be provided for lower premium if the policy holder is willing to share the claims in case of damages.

Hence , with this new concept insurers get to design their own policies!!