Guidewire Insurance suite 8

The Beginner's Guide to Insurance coverage

Getting the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance but very few really know what it is or why one must have it. For the majority of Indians insurance coverage is a form of investment or a superb tax saving avenue. Ask the average person about his/her investments and they will proudly mention an insurance policy product as part of their core investments. Associated with 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 witnessed such rampant mis. Promoting at the hands of agents who are over enthusiastic in selling products linking insurance to investment earning them fat commissions. Guidewire Insurance suite 8

Just what is Insurance?

Insurance is a way of spreading out significant financial risk 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 insurance company. Inside the purest form of insurance if the predefined event does not take place until the period specified the money paid as compensation is not retrieved. Insurance is effectively a means of spreading risk among a pool of individuals who are insured and brighten their financial burden in the event of a shock.

Types of Insurance coverage

[caption id="attachment_14367" align="alignleft" width="300"] insurance word on business folder showing risk management concept[/caption] Potentially any risk which can be quantified in conditions of money can be insured. To guard loved ones from loss of income due to immature death one can have a life insurance policy. To protect yourself and your family against unexpected medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or damage in accidents you could have a motor insurance policy. To guard your home against theft, damage due to open fire, flood and other perils you can choose a home insurance.

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

Insurance coverage

This form of insurance provides cover against financial danger in the event of premature death of the insured. There are twenty-four life insurance companies playing in this arena of which Insurance coverage Corporation of India is a public sector company. There are several varieties of life insurance policy policies the simplest form of which is phrase 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 Organization Ltd. New India Assurance Company Ltd, Oriental Insurance Company Ltd and Usa India Insurance provider Ltd are in the public industry domain.

The biggest curry of non-life insurance in conditions of premiums underwritten is shared by engine insurance followed by executive insurance and health insurance. Other varieties of insurance proposed by companies in India are home insurance, travel cover, personal accident insurance, and business insurance.