Comment

You must be wondering why this headline for this week’s column. But first, here’s another newspaper headline: “Indian Cricketers Sky Walk in Australia”.

Now, millions of dollars (perhaps even billions) are riding on celebrity cricketers. I am sure they are insured to the gills against accidents.

But did the thought of insurance coverage cross their minds while they were sky walking? Given the amounts involved, surely there are special insurance packages specially designed for them and accidents happening during the course of “sky walking” are covered. These celebrities can afford high quality insurance brokers, but what about the common folk? Are we covered? Not always!

A close friend of mine was recently describing his bungee jumping adventure in South Africa. Fortunately, he did not come across any problem, but he was not aware that his overseas travel insurance did not provide coverage for medical expenses if he had suffered from any injuries in the course of the bungee jumping.

I have done paragliding on a trip overseas. But even after going through the policy wordings, I am not sure whether I would have been covered for medical expenses in the event of an accident occurring during the paragliding. This, as far as mediclaim or overseas mediclaim policies are concerned.

As far as life insurance is concerned, as long as you have disclosed all facts in the proposal form at the time you took the policy, there won’t be a problem in getting the claim amount.

Most proposal forms ask whether you indulge in hazardous activities such as mountain climbing, etc. Based on your disclosure, the insurer may ask you to provide additional details such as the frequency of such activities, the kind of professional help available when you are undergoing such activities, etc.

The insurer may then accept the policy at normal rates or may charge additional premium to compensate for the increased risks.

It may sometimes even decline to cover the additional accidental death benefit riders. In fact, one insurance company personnel narrated the instance of a wild life photographer who sometimes used hot air balloons to reach remote areas. He was charged an extra premium and his risk was accepted.

However, in most cases, consumers answer “No” to all such questions when filling the proposal form. But in fact, if you were indulging in these activities at that time and failed to disclose the same in the proposal form, the death claim is likely be rejected if it arose due to undertaking such activities.

Given these issues, shouldn’t these facts be known more widely and shouldn’t the people running these sports be required to provide warnings to their clients apart from the release forms that they normally get signed?

Of course, with adventure sports becoming popular with a small band of discerning Indians, there is now availability ofmedical travel insurance with dangerous sports cover to offset financial loss in case ofmedical expenses incurred due to any accidents arising from such sports overseas.

Now insurers are also realising the importance of this segment and accordingly some companies have started covering adventure sports like mountaineering, scuba diving, paragliding, ballooning, hand-gliding and bungee jumping in India, provided all details are given in the proposal form and the necessary additional premium paid.

Most mediclaim policies in India exclude coverage for any expenses arising out of any injury caused when indulging in such activities.

So check with your insurer before you set out for sky diving, scuba diving, river rafting, trekking, hiking, camping, going on a safari, skiing or snow boarding whether in India or overseas.

It will probably give you the desired peace of mind along with the required thrill.

Harsh Roongta is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments.