Are you ready for the onslaught of monsoon?

The COVID-19 pandemic has brought the world to a pause. Everyone is concerned with the health and safety of their loved ones. The uncertainty of the situation and the fear of
disease worries us all, and it becomes difficult to think beyond it. However, it is important to take a step back and consider the other risks that nature can pose for us.

While the rains will provide a welcome relief from the scorching heat, it also poses a risk of damage to assets in the event of a flood or any natural disaster. The recent cyclone Amphan which has struck West Bengal causing widespread damages is one such example.

Insurance cover is vital

India has in the last five years, witnessed the gruesome reality of the rainy season – from Chennai floods (2015) to Kerala floods (2018), Cyclone Fani in Orissa (2019) and now
Cyclone Amphan in West Bengal (2020). The wrath of mother nature has left destroyed homes, vehicles and commercial establishments in its wake, leading to economic losses
running into thousands of crores.

For example, despite efficient damage control by the government after Fani, Orissa sought $14 billion to rebuild 500,000 homes. The economic losses due to the Chennai floods have been estimated to be Rs 15,000 crore, while the floods in Kerala cost the state Rs 21,000 crore in economic losses.

Hope for the best, prepare for the worst

Taking lessons from the earlier monsoon disasters that have resulted in catastrophes, we must prepare ourselves for the onslaught of monsoon 2020. And while we cannot eliminate the risk of nature due to floods and other monsoon-related disasters such as hurricanes and cyclones, we can safeguard and protect our capital assets such as our homes, shops, manufacturing establishments, factories, and offices from such calamities. For many, their homes, shops and factories are the primary source of income. With already mounting economic losses due to the pandemic, it would be wise to act now and protect our finances against nature as much as we can so that one can be immune to any further financial burden and losses.

Prevention is better than losses

Be it your home, shop, factory or any other establishment, it takes years of hard work to accumulate a capital asset. Unfortunately, it takes no more than a flood lasting one to two days to destroy it. So far, combined efforts of the government and the insurance industry have supported Indians during the pandemic by introducing insurance products to protect you against unpredictable medical bills. Similarly, it is a wise idea to insure your assets against the risk of flood and other such natural disasters that might occur during the pandemic.

While it is difficult to solve the emotional upheaval arising from losing any asset to a natural disaster, a comprehensive insurance cover offers assured protection from the economic
stress of such situations.

You may opt for a Standard Fire policy which provides cover for not only accidental Fire, but also damage caused by Flood, Cyclone or Inundation. You may extend the policy to cover Earthquake damage by payment of some additional premium. For a wider cover you may opt for a comprehensive Package policy which in addition to Fire and Flood perils, would also provide cover against Burglary, Mechanical Breakdown and even Personal Accident.

So while we attempt to get through this pandemic with hope and positivity, we must not forget to prepare for the worst due the seasonal troubles and protect ourselves from the financial and the economic risks of a disaster. For if there is one thing COVID-19 outbreak has taught us – it is to expect the unexpected and be prepared for it.

(The writer is ED & CEO, Reliance General Insurance)