There was a minor fire in our house and some of the things were damaged for which the insurer paid the clam. Will the policy pay further, if another claim arises this year?
Aman Malik, Gurgaon
It is unfortunate to know about the accident and glad to note that the insurer paid the claim on the damages caused by the fire in your house. Typically, the sum insured under a policy represents the total amount insured for the policy period. Therefore, if there is a claim during the policy period the sum insured is reduced to the extent of the claim amount. For example, if the sum insured for a particular asset is Rs 1 lakh and the claim of Rs 25,000 arises during the policy period, on payment of the claim, the sum insured automatically reduces to Rs 75,000 for the rest of the policy period. You can, however, get the sum insure reinstated, on payment of extra premium.
