What does small-ticket insurance cover?

1. This type of insurance focusses on a specific need and comes with a low premium and lower cover.

2. Most of the offerings are disease-specific (mosquito-borne disease), travel-specific, for home appliances (mobile, home protection, cycle theft) or for lifestyle needs (marathon, fitness).

3. Companies such as Toffee Insurance, Digit Insurance and Mobikwik provide bitesize insurance online.

4. These insurance products require less documentation for underwriting unlike conventional policies.

5. It is targeted towards first time insurance buyers to introduce them to the concept of insurance and move them to full cover later.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

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