General Insurance haywood rd

A Beginner's Guide to Insurance policy

Getting 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. Inquire an average person about his/her investments and they will proudly mention an insurance coverage 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 witnessed such rampant mis. Selling at the hands of agents who are over enthusiastic to offer products connecting insurance to investment making them fat commissions. General Insurance haywood rd

Just what is Insurance?

Insurance is a way of growing out significant financial chance of a person or business entity. To a huge group of individuals or business entities in the occurrence of an regrettable event that is predetermined. The cost of being insured is the monthly or gross annual compensation paid to the company. In the purest form of insurance if the predetermined event does not take place until the period specified the amount of money paid as settlement is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of individuals who are insured and lighten their financial burden in the event of a shock.

Types of Insurance

Potentially any risk that can be quantified in conditions of money 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 unexpected medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or harm in accidents you might have a motor insurance policy. To protect your home against fraud, damage due to open fire, flood and other challenges you can choose 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 brief in the following sentences. 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 24 life insurance companies playing in this arena of which Life Insurance Corporation of India is a general public sector company. There are several kinds of life insurance coverage policies the simplest form of which is term plan. The other complicated 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 firms in India of which 4 namely National Insurance Company Ltd. New India Assurance Company Ltd, Oriental Insurance coverage Company Ltd and Combined India Insurance provider Ltd are in the public field domain.

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