What is miscellaneous insurance?


One of my colleagues told that a miscellaneous insurance comes in handy at times of unemployment. What is a miscellaneous insurance and how does it work?


Miscellaneous insurance is a generic term used for all types of General Insurance other than the main ones like Fire, Burglary, Marine and Motor Insurance. To have an insurance that comes in handy during times of unemployment one needs to have a Job Loss insurance. This type of insurance covers one’s monthly expenses (limited to a maximum amount) for a specified period of months. This payment will happen on a monthly basis till you get a new job or the specified period of months which ever is earlier. At present there are no stand-alone Job Loss insurance products in India, although, a few companies bundle a similar product along with their loan products to mitigate their risk on EMI payments receivable from the borrower.

Ideally, it it good to have a strong health insurance for the entire family to cover any expenses on medical grounds during job loss. And of course take cover for your house against other threats as well. Home loan insurances are only available upon demise of the insured person and not for job loss or such incidences.

Pradeep Yuvaraj



Miscellaneous Insurance is used to talk about insurance policies other than those of Life, Fire and Marine insurance. However, in case of a job loss, you might need unemployment insurance. Even though we don’t have unemployment insurance in India, we have something very similar known as a ‘job loss’ cover. This can be taken along with loans such as a Home Loan. The insurer will pay up to 3 months of your EMIs for the loan for which you took a job loss cover. Just like many other policies, this will also have a waiting period of about 30 to 90 days. You can choose to take the policy for 1 to 5 years. Most policies will not cover unemployment of self-employed individuals. It will also not cover termination, suspension or retrenchment. Always read the exclusions and terms before you choose a policy.

You might need a Health Insurance policy too. Click here to get one.

BB Expert