Insurance commission Guidelines

A Beginner's Guide to Insurance

Obtaining 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 the majority of Indians insurance policy is a form of investment or a superb tax saving avenue. Request the average person about his or her investments and they will proudly mention an insurance policy product as part of their core investments. Of the approximately 5% of Indians that are covered 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. Selling at the hands of agents who are over enthusiastic in selling products connecting insurance to investment generating them fat commissions. Insurance commission Guidelines

Just what is Insurance?

Insurance is a way of distributing 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 predetermined. The cost of being insured is the monthly or total annual compensation paid to the insurance company. Within the purest form of insurance if the predefined event does not occur until the period specified the cash paid as payment is not retrieved. Insurance is effectively a means of spreading risk among a pool of men and women who are insured and lighten their financial burden in the event of a shock.

Types of Insurance policy

Potentially any risk that may be quantified in conditions pounds can be insured. To guard 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 unforeseen medical expenses you can opt for a Mediclaim policy. To safeguard your vehicle against robbery or damage in accidents you can have a motor insurance policy. To protect your home against fraud, damage due to open fire, flood and other perils you can find dating a home insurance coverage.

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 short 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 risk in the event of premature death of the insured. There are twenty-four life insurance companies playing in this arena of which Life Insurance Corporation of India is a open public sector company. There are several varieties 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

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 Confidence Company Ltd, Oriental Insurance coverage Company Ltd and Usa India Insurance carrier Ltd are in the public field domain.

The biggest curry of non-life insurance in conditions of premiums underwritten is shared by motor insurance followed by architectural insurance and health insurance policy. Other types of insurance provided by companies in India are home insurance, travel cover, personal accident insurance, and business insurance.