Guideone Insurance claims

The Beginner's Guide to Insurance coverage

Obtaining the right kind of insurance is central to sound financial planning. Several of us may have some form of insurance but very few really know what it is or why one must have it. For many Indians insurance coverage is a form of investment or a superb tax saving avenue. Request 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 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 seen such rampant mis. Marketing at the hands of agents who are over enthusiastic in selling products connecting insurance to investment generating them fat commissions. Guideone Insurance claims

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 company. In the purest form of insurance if the predetermined event does not take place until the period particular the amount of money paid as payment 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 that can be quantified in conditions of money can be insured. To protect loved ones from loss of income due to immature death one can have a life insurance coverage policy. To guard yourself and your family against unforeseen medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or destruction in accidents you might have a motor insurance policy. To guard your home against fraud, damage due to fire, 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 paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Insurance coverage

This form of insurance provides cover against financial chance in the event of premature death of the insured. There are 24 life insurance companies actively playing in this arena of which Life insurance coverage Corporation of India is a open public sector company. There are several kinds of life insurance coverage policies the simplest form of which is phrase 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 providers in India of which 4 namely National Insurance Company Ltd. New India Confidence Company Ltd, Oriental Insurance coverage Company Ltd and United 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 motor insurance followed by architectural insurance and health insurance. Other varieties of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.