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 determine what it is or why one must have it. For many Indians insurance is a form of investment or a superb tax saving avenue. Inquire a typical 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 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 witnessed such rampant mis. Promoting at the hands of agents who are over enthusiastic in selling products linking insurance to investment generating them fat commissions. Life Insurance videosJust what is Insurance?
Insurance is a way of growing out significant financial danger 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 company. Inside the purest form of insurance if the predefined event does not take place until the period particular the 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 lighten their financial burden in the event of a shock.
Types of Insurance policy
[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 involving can be insured. To guard 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 unexpected medical expenses you can opt for a Mediclaim policy. To protect your vehicle against robbery or destruction in accidents you can have a motor insurance policy. To guard your home against fraud, damage due to fireplace, flood and other perils 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 sentences. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).
Life insurance coverage
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 open public sector company. There are several kinds of life insurance policy policies the simplest form of which is expression 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 Business Ltd. New India Confidence Company Ltd, Oriental Insurance policy Company Ltd and United India Insurance Company Ltd are in the public industry domain.
The biggest curry of non-life insurance in conditions of premiums underwritten is shared by electric motor insurance followed by engineering insurance and health insurance policy. Other varieties of insurance made available from companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.