The Sum Insured is the amount that the insurance company pays to the policyholder in the case of an unpredictable event caused by insured perils. It is the maximum amount payable as a whole under the Policy for all the insured perils during the Policy Period which is mentioned in the Schedule of the Policy.
- Consider the following factors while choosing the basic Sum Insured for your policy:
- If you are insuring an asset, you should consider the value of the asset being insured so that your damage or loss is compensated fully.
- In case you are insuring your health, opt for a sum that is sufficient to cover medical expenses in an emergency.
- Opt for a sum that should be sufficient to cover your financial responsibilities and help your nominee.
- Choose a sum that will meet/fulfil your contractual liability if any.
- Select an affordable sum insured that fits your budget.