General Insurance employees wage revision

A Beginner's Guide to Insurance policy

Obtaining 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 determine 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. Ask an average person about his/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 a lot lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has seen such rampant mis. Marketing at the hands of agents who are over enthusiastic in selling products backlinking insurance to investment making them fat commissions. General Insurance employees wage revision

Just what is Insurance?

Insurance is a way of growing out significant financial danger of a person or business entity. To a big group of individuals or business entities in the occurrence of an regrettable event that is predefined. The cost of being insured is the month to month or gross annual compensation paid to the company. Inside the purest form of insurance if the predetermined event does not take place until the period specific the cash paid as compensation is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of folks who are insured and brighten their financial burden in the event of a shock.

Types of Insurance coverage

Potentially any risk that can be quantified in conditions involving can be insured. To guard loved ones from loss of income due to immature death one can have a life insurance policy. To safeguard yourself and your family against unexpected 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 theft, damage due to fireplace, flood and other perils you can choose a home insurance coverage.

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

Life insurance coverage

This specific form of insurance provides cover against financial chance in the event of premature death of the insured. There are 24 life insurance companies enjoying in this arena of which Life Insurance Corporation of India is a open public sector company. There are several varieties of life insurance policies the simplest form of which is term plan. The other intricate policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.

General Insurance

Just about all other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance companies in India of which 4 namely National Insurance Organization Ltd. New India Assurance Company Ltd, Oriental Insurance policy Company Ltd and Usa India Insurance provider Ltd are in the public industry domain.

The biggest pie of non-life insurance in conditions of premiums underwritten is shared by motor insurance followed by architectural 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.