travel Insurance information Guide

A Beginner's Guide to Insurance

Having the right kind of insurance is central to sound financial planning. Some of us may have some form of insurance policy but very few really know what it is or why one must have it. For most Indians insurance coverage is a form of investment or a superb tax saving avenue. Inquire the average person about his/her investments and they will proudly mention an insurance 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 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. Marketing at the hands of agents who are over enthusiastic to offer products linking insurance to investment making them fat commissions. travel Insurance information Guide

Exactly 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 gross annual compensation paid to the insurance company. Inside the purest form of insurance if the predetermined event does not take place until the period specified the amount of money paid as compensation is not retrieved. Insurance coverage 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

Potentially any risk that can be quantified in conditions pounds can be insured. To safeguard loved ones from damage 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 guard your vehicle against robbery or harm in accidents you can have a motor insurance policy. To safeguard your home against robbery, damage due to fireplace, flood and other challenges you can choose 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 quick in the following paragraphs. The insurance sector is regulated and monitored by IRDA (Insurance Regulatory and Development Authority).

Life Insurance

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 enjoying in this arena of which Insurance coverage Corporation of India is a general public sector company. There are several varieties of life insurance coverage 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

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 Confidence Company Ltd, Oriental Insurance policy Company Ltd and Combined 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 motor insurance followed by executive insurance and health insurance. Other types of insurance proposed by companies in India are home insurance, travel insurance, personal accident insurance, and business insurance.