General Insurance agent exam

A Beginner's Guide to Insurance coverage

Obtaining the right kind of insurance is central to sound financial planning. A few of us may have some form of insurance policy but very few really know what it is or why one must have it. For many Indians insurance policy is a form of investment or a superb tax saving avenue. Ask a typical person about his or her investments and they will proudly mention an insurance coverage product as part of their core investments. Regarding the approximately 5% of Indians that are covered by insurance the proportion of those adequately insured is much lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has observed such rampant mis. Selling at the hands of agents who are over enthusiastic in selling products connecting insurance to investment generating them fat commissions. General Insurance agent exam

Exactly what is Insurance?

Insurance is a way of spreading out significant financial danger of a person or business entity. To a huge group of individuals or business entities in the occurrence of an unfortunate event that is predefined. The cost of being insured is the month to month or gross annual compensation paid to the company. In the purest form of insurance if the predetermined event does not take place until the period specific the amount of money paid as payment is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of folks who are insured and lighten their financial burden in the event of a shock.

Types of Insurance

Potentially any risk that can be quantified in conditions involving can be insured. To safeguard loved ones from loss of income due to immature death one can have a life insurance coverage policy. To safeguard yourself and your family against unexpected medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or damage in accidents you could have a motor insurance policy. To safeguard your home against robbery, damage due to fireplace, flood and other perils you can choose a home insurance.

Most popular insurance types in India are life insurance, health insurance and motor insurance. Apart from these there are other forms as well which are discussed in short in the following paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life Insurance

This form of insurance provides cover against financial danger in the event of premature death of the insured. There are 24 life insurance companies playing in this arena of which Life insurance coverage Corporation of India is a open public sector company. There are several kinds of life insurance policy policies the simplest form of which is expression plan. The other complex policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.

General Insurance

Just about all other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance firms in India of which 4 namely National Insurance Company Ltd. New India Assurance Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance carrier Ltd are in the public industry domain.

The biggest pie of non-life insurance in conditions of premiums underwritten is shared by motor insurance followed by engineering insurance and health insurance. Other types of insurance provided by companies in India are home insurance, travel cover, personal accident insurance, and business insurance.