General Insurance baton rouge

A Beginner's Guide to Insurance policy

Having the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance coverage but very few really understand 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. Ask an average person about his/her investments and they will proudly mention an insurance coverage product as part of their core investments. Of the approximately 5% of Indians that are insured 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 seen such rampant mis. Promoting at the hands of agents who are over enthusiastic to offer products connecting insurance to investment earning them fat commissions. General Insurance baton rouge

Exactly what is Insurance?

Insurance is a way of spreading out significant financial chance of a person or business entity. To a huge group of individuals or business entities in the occurrence of an unlucky event that is predefined. The cost of being insured is the month-to-month or twelve-monthly compensation paid to the insurance company. In the purest form of insurance if the predetermined event does not take place until the period specific the cash paid as payment is not retrieved. Insurance policy 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 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 safeguard loved ones from damage of income due to immature death one can have a life insurance policy. To guard yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or damage in accidents you could have a motor insurance policy. To guard your home against theft, damage due to fire, flood and other perils you can find dating a home insurance policy.

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 short in the following sentences. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life insurance coverage

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 enjoying in this arena of which Insurance coverage Corporation of India is a general public sector company. There are several varieties of life insurance 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 Company Ltd. New India Assurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance carrier Ltd are in the public field domain.

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