General Insurance of cyprus

The Beginner's Guide to Insurance

Getting 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 understand what it is or why one must have it. For most Indians insurance policy 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. Associated with 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. Selling at the hands of agents who are over enthusiastic in selling products linking insurance to investment making them fat commissions. General Insurance of cyprus

What is Insurance?

Insurance is a way of distributing 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 predetermined. The cost of being insured is the month to month or gross annual compensation paid to the insurance company. In the purest form of insurance if the predetermined event does not take place until the period particular the amount of money paid as compensation is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of folks who are insured and lighten up their financial burden in the event of a shock.

Types of Insurance

[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 protect loved ones from damage of income due to immature death one can have a life insurance coverage policy. To safeguard yourself and your family against unforeseen medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or destruction in accidents you might have a motor insurance policy. To guard your home against fraud, damage due to fire, flood and other challenges you can choose a home insurance policy.

Most popular insurance kinds 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 paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Insurance coverage

This particular form of insurance provides cover against financial danger in the event of premature death of the insured. There are twenty four life insurance companies enjoying in this arena of which Life insurance coverage Corporation of India is a general public sector company. There are several kinds of life insurance policy policies the simplest form of which is term 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 firms in India of which 4 namely National Insurance Business Ltd. New India Confidence Company Ltd, Oriental Insurance coverage Company Ltd and Combined India Insurance provider Ltd are in the public sector domain.

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