The Basics of Pet Insurance And Why It Is Important to Consider

Pets offer unwavering love and affection and create a strong emotional connection of love and fondness among all members of a family. People who own pets view them as integral members of their family and make sure to provide them with proper nourishment, special attention when they are unwell, enough exercise, and involve them in all family gatherings and festivities. As a pet parent, I am always on the lookout for the best things to give Joey - My tomcat.

Pet parents must ensure that their furry friends are well cared for. Purchasing health insurance for pets is the best solution to ensure good health, protection against illness or injury, and guarantee their wellbeing and complete security. This article explains the basics of Pet Insurance and why it is important to consider.

What is Pet Insurance?

Pet Insurance has been introduced in India for a few years now and has gained traction in the market. It is a type of insurance policy that covers the veterinary expenses incurred for the treatment of a pet in case of injury or illness. Some Pet Insurance Plans also include coverage for the death or loss of the insured pet. Given that medical treatment and other veterinary expenses can be quite high, the policy allows pet owners to provide their pets with the best treatment and eliminates the risk of sudden financial strain. Furthermore, the Pet Insurance Plans are endorsed by the Insurance Regulatory and Development Authority of India (IRDAI).

How does Pet Insurance work?

Pet Insurance can mitigate the financial risk associated with unforeseen veterinary expenses. With the right coverage plan, you can attain peace of mind and be empowered to provide the best care for your cat or dog.

Pet Insurance typically operates on a yearly or monthly basis. You pay your insurer a yearly/monthly premium in exchange for coverage. Your policy will specify the conditions/expenses covered, your reimbursement rate, your deductible, and the maximum payout (or annual limit).

In most cases, Pet Health Insurance Plans will provide reimbursement to you, the policyholder, instead of paying the veterinarian directly. This implies that you don't need to worry about finding a 'network' veterinarian and can benefit from your coverage at any licensed veterinary clinic.

Follow these steps to receive payment from your Pet Insurance company:

- Pay the veterinarian bill

- Submit a claim to your insurance company

- After your deductible is met, based on your policy terms, you will be reimbursed for 70% to 100% of the covered expenses

- Insurers may require paperwork or a medical history review from your veterinarian to process your claim

Usually, policyholders get reimbursed within 5 to 9 days after submitting a claim. However, some providers may pre-approve you for an upcoming procedure and pay the veterinarian directly, which can relieve the initial financial burden.

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What is covered under a Pet Insurance Policy?

Here's what is generally covered under a Pet Insurance Policy:

• The accidental death of the pet

• Illnesses that occur during the policy period

• Coverage for the expenses of treatment

• Accidents that happen while transporting the pet through various modes such as rail, road, or air.

• Theft of the pet

• Coverage for poisoning incidents

• Third-party liabilities

What is not covered under a Pet Insurance Policy?

Here's what is generally not covered under a Pet Insurance Policy:

• Malicious injury caused intentionally to the pet;

• Injury caused by mishandling or neglecting the pet;

• Loss or injury of the pet due to war, hostility, military upheaval, etc.;

• Death of the pet due to diseases such as rabies, Viral Hepatitis, Enteritis, Leptospirosis, etc.;

• Pre-existing diseases in the animal before purchasing the policy.

What are the benefits of buying a Pet Insurance Policy?

Here are the main advantages of purchasing a Pet Insurance Policy:

1. Different Types to Choose from:

There are different types of Pet Insurance covers available, including time-limited cover, lifetime cover, and money-limit cover. Lifetime cover provides coverage against critical illnesses like cancer and diabetes for the pet's lifetime, time-limited cover offers protection for a specific duration when the pet is injured or ill, and money-limit coverage offers financial protection until the policy limit is reached.

2. Improves Quality of Healthcare:

A Pet Insurance Policy gives more comprehensive coverage, such as for fractures, dental issues, pregnancy complications, and cataracts. Moreover, as pets age, they may require more expensive healthcare options, which can be difficult to afford without insurance.

3. Avoids the Need to Dip into Your Savings:

Pet ownership can be quite expensive, with costs for food, accessories, grooming, medication, and vaccinations all adding up quickly. Unexpected medical expenses due to an accident, sudden illness, or other reasons can leave you with no other option but to dip into your savings. However, with Pet Insurance, your insurer covers these expenses, reducing your financial burden.

4. Covers Expensive Treatments:

Pets, like humans, can suffer from critical illnesses that require costly treatments like surgeries. However, a Pet Insurance Policy can help cover these costs without you having to pay for them out of your pocket.

5. Customisation:

Taking into consideration the breed and kind of pet, Pet Insurance Plans can be customised to fit the specific needs of the pet and the pet owner.

6. IRDAI Approved:

Like any other insurance plan available in India, Pet Insurance follows the standards set by the Insurance Regulatory and Development Authority of India (IRDAI).

7. Payment Flexibility:

Not everyone can afford to pay high Pet Insurance premiums. Fortunately, Pet Insurance companies offer flexible payment options, such as monthly, quarterly, half-yearly, or yearly, to accommodate different budgets and preferences.

8. Extra Coverage:

In addition to covering illnesses and injuries, some Pet Insurance Plans offer additional coverage for various scenarios, such as coverage for the death or loss of a pet, travel overseas with your pet, and liability for third-party damages or injuries caused by your pet.

How to buy a Pet Insurance Policy online?

Numerous insurance companies in India offer Pet Insurance Policies, including major insurers such as Tata Capital, Bajaj Allianz, Future Generali, National Insurance, and MetLife. These insurers provide the option to purchase policies online through their official websites. You can navigate to the "Pet Insurance" section on the homepage or search for it using the search bar. You will have to provide personal details like your name, identification proof, address proof, pet's name, date of birth, location, contact number, and email id. After verifying your contact number with an OTP, you can submit the form, and an insurance company representative will get back to you to assist you throughout the process. Alternatively, if you prefer to purchase the policy in person, you can visit the nearest branch of the insurer and do the formalities offline.

How can you lower the Pet Insurance Premium?

Factors that determine Pet Insurance Premiums include the pet's size, breed, age, location, indoor and outdoor risks, term and length of insurance policy, reimbursement rate, deductible, payout limit, plan type, and policy provider. You can lower the premium by buying the policy at a young age or by choosing to pay annually instead of monthly. Some providers also offer discounts for insuring multiple pets. While opting for a higher deductible can lower premiums, it requires paying out-of-pocket until the deductible is reached. Selecting a lower reimbursement rate or coverage limit can also lower costs but reduces the amount received from the insurer for serious illnesses or injuries.

Final words:

You and your vet are the only ones who have a good understanding of your pet's health. Hence, it makes sense to consult with your pet's veterinarian to help you decide if a particular Pet Insurance Policy is suitable for you. Buying a lifetime policy while your pet is young and healthy is advisable, as the premiums can become unaffordable as the pet ages. Insurers may refuse to provide coverage if your pet has any pre-existing conditions. It is essential to weigh your current vet expenses and how much they may increase in the future against the current premium and the premium's future increase as the pet ages. Striking a balance between the two is necessary to select the appropriate policy that provides maximum coverage at an affordable premium. It is also essential to read the policy's fine print to avoid any disagreements in the future.

KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.