After the claim is paid, will the sum insured reduce?
Once a claim is paid, the sum insured on that asset automatically falls by the amount of claim paid in that year.
I made a claim of Rs 18,000 against my laptop which was insured for Rs 50,000. Does this mean that the sum insured for the rest of the policy period will be reduced to Rs 32,000?
Shirish Mishra, Patna
It is good to have your laptop insured given the kind of risks that it is exposed to these days, something that you have anyway experienced with the claim you raised. Yes, it’s true that once a claim is paid, the sum insured on that asset automatically falls by the amount of claim paid in that year. However, under most policies you have the option to reinstate the sum insured by paying a pro-rata additional premium on the amount of claim.
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