General Insurance exam questions and answers

A new Beginner's Guide to Insurance coverage

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

Just what is Insurance?

Insurance is a way of distributing out significant financial risk of a person or business entity. To a big group of individuals or business entities in the occurrence of an unlucky event that is predetermined. The cost of being insured is the month to month or gross annual compensation paid to the insurance company. Within the purest form of insurance if the predetermined event does not happen until the period specific the amount of money paid as payment is not retrieved. Insurance policy is effectively a means of spreading risk among a pool of individuals who are insured and brighten their financial burden in the event of a shock.

Types of Insurance policy

[caption id="attachment_14367" align="alignleft" width="300"] insurance word on business folder showing risk management concept[/caption] Potentially any risk that can be quantified in conditions involving can be insured. To guard loved ones from reduction of income due to immature death one can have a life insurance coverage policy. To protect yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or damage in accidents you could have a motor insurance policy. To guard your home against robbery, damage due to open fire, flood and other challenges you can choose a home insurance coverage.

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

Life Insurance

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

General Insurance

Almost all other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance providers in India of which 4 namely National Insurance Business Ltd. New India Confidence Company Ltd, Oriental Insurance Company Ltd and Combined India Insurance provider Ltd are in the public field domain.

The biggest curry of non-life insurance in conditions of premiums underwritten is shared by engine insurance followed by architectural insurance and health insurance policy. Other varieties of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.