General Insurance previous year paper

The Beginner's Guide to Insurance

Having the right kind of insurance is central to sound financial planning. A few of us may have some form of insurance coverage but very few really understand what it is or why one must have it. For many Indians insurance 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 coverage product as part of their core investments. Associated with the approximately 5% of Indians that are insured 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 to offer products backlinking insurance to investment making them fat commissions. General Insurance previous year paper

What is Insurance?

Insurance is a way of distributing out significant financial risk of a person or business entity. To a sizable 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 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 specified the amount of money paid as settlement is not retrieved. Insurance coverage is effectively a means of spreading risk among a pool of men and women who are insured and brighten their financial burden in the event of a shock.

Types of Insurance coverage

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

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

Life Insurance

This specific form of insurance provides cover against financial risk 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 public sector company. There are several varieties of life insurance policies the simplest form of which is expression plan. The other complex policies are endowment plan, whole life plan, money back plan, ULIPs and annuities.

General Insurance

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 Guarantee Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance Company Ltd are in the public field domain.

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