General Insurance interview questions and answers

The Beginner's Guide to Insurance

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 policy is a form of investment or a superb tax saving avenue. Ask a typical person about his or 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 covered 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 backlinking insurance to investment making them fat commissions. General Insurance interview questions and answers

What is Insurance?

Insurance is a way of distributing out significant financial risk of a person or business entity. To a big group of individuals or business entities in the occurrence of an unlucky event that is predetermined. The cost of being insured is the month-to-month or gross annual compensation paid to the company. In the purest form of insurance if the predefined event does not occur until the period specific the money paid as compensation is not retrieved. Insurance policy is effectively a means of spreading risk among a pool of individuals who are insured and lighten up their financial burden in the event of a shock.

Types of Insurance coverage

Potentially any risk which can be quantified in conditions of money can be insured. To safeguard loved ones from loss of income due to immature death one can have a life insurance coverage policy. To safeguard yourself and your family against unanticipated medical expenses you can opt for a Mediclaim policy. To guard your vehicle against robbery or damage in accidents you can have a motor insurance policy. To guard your home against fraud, damage due to open fire, flood and other perils you can find dating a home insurance.

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

Life 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 actively playing in this arena of which Life Insurance Corporation of India is a open public sector company. There are several kinds 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

Just about all other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance providers in India of which 4 namely National Insurance Business Ltd. New India Confidence Company Ltd, Oriental Insurance coverage Company Ltd and United India Insurance carrier Ltd are in the public sector domain.

The biggest curry 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 made available from companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.