Guidewire Insurance wiki

A new Beginner's Guide to Insurance policy

Getting the right kind of insurance is central to sound financial planning. Several of us may have some form of insurance policy 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. Request an 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 significantly lower. Very few of the insured view insurance as purely that. There is perhaps no other financial product that has seen such rampant mis. Selling at the hands of agents who are over enthusiastic in selling products linking insurance to investment generating them fat commissions. Guidewire Insurance wiki

Just what is Insurance?

Insurance is a way of distributing out significant financial risk of a person or business entity. To a huge group of individuals or business entities in the occurrence of an unfortunate event that is predefined. The cost of being insured is the month-to-month or total annual compensation paid to the company. In the purest form of insurance if the predetermined event does not take place until the period specific the amount of money paid as compensation is not retrieved. Insurance 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 policy

Potentially any risk which can be quantified in conditions of money can be insured. To guard loved ones from damage of income due to immature death one can have a life insurance policy policy. To protect yourself and your family against unforeseen medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or damage in accidents you might have a motor insurance policy. To guard your home against theft, damage due to fireplace, 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 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 chance 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 kinds of life insurance 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

All other insurance policies besides Life Insurance fall under General Insurance. There are 24 general insurance companies in India of which 4 namely National Insurance Organization Ltd. New India Guarantee Company Ltd, Oriental Insurance policy Company Ltd and Combined India Insurance carrier Ltd are in the public field domain.

The biggest cake of non-life insurance in conditions of premiums underwritten is shared by electric motor insurance followed by executive insurance and health insurance coverage. Other types of insurance provided by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.