What
is Insurance
The term Insurance can be understood as an arrangement, in which the insurer commits to provide compensation for loss, damage, death, happening caused to the insured in return for the payment of the premium. Insurance policies are designed on the principle that although we cannot stop unfortunate events occurring, we can protect ourselves financially against them.
Type
of Insurance
Life Insurance और General Insurance के बारे में जानें [Hindi]
1.Life Insurance
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Life insurance is important if you have people who are dependent on you financially. Think unfortunately if you made with an accident or any disease and you die ! What will happen with your family and your child. If you were to die unexpectedly then your salary would no longer be available to cover regular household expenses such as mortgage payments, and utility bills, and your family would suffer financial hardship as a result. Life insurance is designed to cover these expenses in your absence, so that the financial burden can be reduced experienced by your family at what would already be a very difficult time.
There are mainly two types of life insurance policies
(i) Whole Life Policy
In this type of policies, you pay premiums till your death in this type of policies, and your nominee get the sum assured or the finance only after your death.
(ii) Term Life Policy
In this type of policies, you pay premiums only for a set period of time depending on when you take out the policy. It is always better to engage experienced insurance broker, or financial adviser, before taking out a policy as they can differ widely, and it is important that you arrange cover that meets your needs and requirements exactly.
List of Some Top Life Insurance Companies in India:
1.Life Insurance Corporation of India (LIC)2.ICICI Prudential Life Insurance
3.SBI Life Insurance
4.HDFC Standard Life Insurance
5.Max Life Insurance
6.Bajaj Allianz Life Insurance
7.Birla Sun Life Insurance
8.Reliance Nippon Life Insurance
9.Tata AIA Life Insurance
10.PNB Metlife India Insurance
Except Life Insurance other Insurance can be categorized in General Insurance;
2.Motor
Insurance
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Additionally, if you are at fault in an accident, the liability you have could become very expensive. Your Motor Insurance policy may pay medical bills and Third Party property damage so that you wouldn’t be forced to come up with the money out of pocket, possibly resulting in financial ruin.
3.Health Insurance
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Health insurance is another one of the main insurance that experts recommend. Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees. If you have a chronic condition, health insurance can help you better afford the care you need. Even if you are in good health, and rarely use health care services, it can be a good idea to at least have a policy that covers major medical problems, just in case an accident befalls you. It can be difficult to find affordable health insurance, particularly if you have a pre-existing medical condition, or if you are unable to access health cover via your employer. Again, it can be helpful to consult with a financial adviser to determine what type of policy is right for you.
4.Home Insurance
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Home insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Additionally, homeowner's insurance provides financial protection against disasters. A standard home insurance policy insures the home itself along with the things kept inside.
5.Travel
Insurance
Travel
insurance is a plan you purchase that protects you from certain
financial risks and losses that can occur while traveling. These
losses can be minor, like a delayed suitcase, or significant, like a
last-minute trip cancellation or a medical emergency overseas. | |
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In addition to financial protection, the other huge benefit of travel insurance is access to assistance services, wherever you are in the world . If you have already paid for your trip, full or partial, and you need to cancel the trip or return home early by interrupting the trip, travel insurance provides trip cancellation and trip interruption coverage for the pre-paid and non-refundable portion of your trip for a covered reason. If you get sick or injured while traveling abroad, most domestic health insurance plans provide little or no coverage outside the coverage area. Medicare does not cover outside the United States. Very few domestic insurance plans cover supervised emergency medical evacuation, repatriation of remains or emergency reunion. Travel insurance companies are experts in international health insurance coverage.
The most common risks that are covered by travel insurance plans are:
-
Medical treatment,
including transportation to the medical facility.
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Cancellation,
curtailment and trip interruption
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Lost, stolen or
damaged baggage, personal effects or travel documents
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Accidental death,
injury or disablement benefit
6.Disability
Insurance
Going
to work each day and collecting a regular paycheck may just be part
of your routine — something you don't even think about much. But
what would happen if you were injured and couldn't work? Accidents
(and illnesses) happen. If they are serious enough to keep you from
working, how would you pay your bills? That's where disability
insurance may be able to help. Disability
insurance is a type of insurance that will provide income in the
event a worker is unable to perform their work and earn money due to
a disability. There are many types of organizations that provide
different types of disability insurance. Each organization and
disability insurance type have specific rules as to what constitutes
a disability and how a person might qualify to receive the disability
benefit. Short term disability insurance policies offer a worker a
portion of their salary if they are unable to work for a short
period- typically three to six months. Long term disability insurance
offers a worker a portion of their salary if they are unable to work
for a longer period- typically a period of over six months. The
worker may suffer from an inability to maintain composure in the case
of psychological disorders or an injury, illness or condition that
causes physical impairment or incapacity to work. It
encompasses paid sick leave, short-term disability
benefits (STD),
and long-term disability benefits (LTD. | |
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7.Liability
Insurance
This
insurance is also called as Third
Party Insurance as
it protect
the "insured"
from the risks of liabilities
imposed
by lawsuits and similar claims. It protects the insured in the event
he or she is sued for claims that come within the coverage of the
insurance
policy.
Liability insurance is designed to offer specific protection against
third-party insurance claims. |
| Image Taken from internet : Thanks to Owner of Image |
In other words; payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies.
8.Marine
Insurance
Marine
Insurance,
as the name goes, offers a means of financial protection against
damage or loss caused to ships, boats, yacht, and most important of
all, the cargo. Marine
insurance covers the loss or damage of ships, cargo, terminals, and
any transport by which the property is transferred, acquired, or held
between the points of origin and the final destination.
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Marine Insurance Plans are of various types. Customers should opt for the one that seems feasible and meets the requirement of the nature and scope of their business.
9.Business
Insurance
Business
insurance coverage protects businesses from losses due to events that
may occur during the normal course of business. There
are many types of insurance
for businesses including coverage for property damage, legal
liability and employee-related risks.
Companies evaluate their insurance needs based on potential risks,
which can vary depending on the type of environment in which the
company operates. | |
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BREAKING
DOWN Business Insurance: It
is especially important for small business owners to carefully
consider and evaluate their business insurance needs because they
may have more personal
financial
exposure
in
the event of loss.
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Product
Liability Insurance:
If your business manufactures products to sell, product liability
insurance is very important. Any business can find itself named in a
lawsuit due to damages caused by its products. Product liability
insurance protects a business in such cases.
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Vehicle insurance: Any
vehicles used for business should be fully insured. At the very
least, businesses should insure against third-party injury, but
comprehensive insurance will cover the vehicle in an accident, as
well. If employees are using their own cars for business, their own
personal insurance will cover them in the event of an accident. One
major exception is if a person is delivering goods or services for a
fee, including delivery personnel.
- Professional
Liability Insurance: Professional
liability insurance insures against negligence claims that result
from mistakes or failure to perform. There is no one-size-fits-all
professional liability coverage. Each industry has its own unique
concerns that should be addressed.
-
Property
Insurance:
Property
insurance covers equipment, signage, inventory and furniture in the
event of a fire, storm or theft. However, it doesn't cover
mass-destruction events like floods and earthquakes. If your area is
at risk for these issues, you'll need a separate policy.
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Home-Based
Businesses:
Homeowner’s policies don’t cover home-based businesses
like commercial property insurance covers businesses. If you're
operating a home-based business, inquire about additional coverage
for equipment and inventory.
Reasons
where the crop is at high risk, there is a need of Agricultural
Insurance to protect the risk. Crop
insurance is purchased by agricultural producers, and subsidized by
the federal government, to protect against either the loss of their
crops due to natural disasters, such as hail, drought, and floods, or
the loss of revenue due to declines in the prices of agricultural
commodities.
There
are generally two type of Crop Insurance:
-
crop-yield insurance: Crop Yield Insurance gives you a guaranteed yield for your crops. Simply put, if the yield falls below the guaranteed level, you will get an indemnity payment from the insurance company. It covers the risk of; Hail, Fire, Wind, Drought, Excessive moisture or Excess of Water.
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crop-revenue insurance: Crop Revenue Coverage is a form of revenue insurance that protects a producer’s revenue for an insurable crop whenever low prices.
List
of General
Insurance
Companies working in India:
Disclaimer:
All the Information is collected from Internet: coverage may vary as
per company guidelines.
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