General Insurance offices

A Beginner's Guide to Insurance policy

Getting the right kind of insurance is central to sound financial planning. Several of us may have some form of insurance 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/her investments and they will proudly mention an insurance 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 to offer products linking insurance to investment making them fat commissions. General Insurance offices

Just what is Insurance?

Insurance is a way of spreading out significant financial danger of a person or business entity. To a sizable group of individuals or business entities in the occurrence of an unfortunate event that is predetermined. The cost of being insured is the monthly or gross annual compensation paid to the company. Within the purest form of insurance if the predefined event does not occur until the period specified the 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 lighten up their financial burden in the event of a shock.

Types of Insurance coverage

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

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 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 danger in the event of premature death of the insured. There are twenty four life insurance companies actively playing in this arena of which Life Insurance Corporation of India is a public sector company. There are several varieties of life insurance policy policies the simplest form of which is expression plan. The other complicated 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 firms in India of which 4 namely National Insurance Company Ltd. New India Assurance Company Ltd, Oriental Insurance policy Company Ltd and Combined India Insurance Company Ltd are in the public sector domain.

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