Insurance
What is Insurance?
Insurance is a legal agreement according to which the insurer (insurance company) assures a person to receive funds against any damage/loss of life. There are several types of insurance avail in India. Insurance is a policy according to which an individual has to pay the said amount of premium monthly, quarterly or yearly (depending upon the choice and flexibility of plan) for a certain period and this assured sum is reimbursed to the person in case of any damage or to the nominee in case the insured person dies.
Insurance Terms You Should Know
Insured: The owner of an insurance policy is said to be the insured person. The ownership may be of an individual, family members/company.
Insurer: The insurer is the person who is liable to disburse the policy money in case of damage/loss of life.
Insurable Risk: This cover the risk against which you can easily claim for the insurance.
Claims: It is the official request an insured person/entity does to receive a disbursement of the sum assured from the insurance company.
Insurance Cover: It is the amount that a person/company is secure against by any insurance service provider.
Policy: It is a legal agreement between the insured and insurance service provider.
Premium: The amount that is partially chargeable from the total payable amount is known as the premium. It can be a monthly premium, quarterly premium, or annual premium.
Insurance Companies in India
As per the Indian Insurance Industry Report, there are 57 insurance companies in the country including, 24 life insurance and 33 non-life insurance companies. Since its inception, the Life Insurance Company (LIC) is the sole public sector company in India, whereas, there are six public sector insurance service providers in the non-life insurance sector. These are General Insurance Corporation of India along with multiple insurance agents, brokers, surveyors, and more.
Types of Insurance Policies in India
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Insurance policies mainly fall in two categories in India. One is life insurance and the second is general insurance.
The general insurance policy in India covers:
- Health Insurance
- Car Insurance
- Bike Insurance
- Home Insurance
- Travel insurance
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Similar, are multiple kinds of life insurance plans that offer financial safety to all people of all age groups. These are:
- Term Life Insurance
- Whole Life Insurance
- Endowment Plans
- Child Plan
- Pension Plan
Scroll down the blog post and have an in-depth understanding of all these different types of general insurance.
What is Health Insurance?
Health insurance is a kind of insurance policy that offers financial cover against all medical expenses incurred during illness. There are different types of health insurance plans that either pay for such expenses or offer reimbursement for the amount paid for availing medical services for illness.
Types of Health Insurance in India
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Individual Insurance Plan
Individual insurance plan is the basic health insurance policy in India as it covers a person against all types of medical emergencies such as hospitalization due to illness or accident. The premium of an individual insurance plan depends upon factors like age and medical history.
Understand individual insurance plan with an example.
In case a person is unmarried but feels the need to buy an insurance policy for him/herself then, the person should opt for an individual insurance plan as it reimburses/pays for medical expenses incurred due to hospitalisation. -
Family Floater Insurance Plan
The family floater insurance plan protects the entire family against medical illness/accident. The basic difference between the family floater insurance plan and individual insurance plan is that the assured sum in case of family floater policy is shared amongst the family members. Whereas, the entire sum assured is awarded to an individual under the individual insurance policy.
The main benefit of owning a family floater insurance policy is that you need to pay multiple premiums, and managing insurance policy also becomes easy. The premium of the family floater plan is determined according to the age of the eldest family member. You must check for the insurance policy online to avail the maximum benefit by paying a minimum premium. Understand this insurance plan with an example.
The assured sum gets slashed in this case if any one member of the family claims for a huge amount of sum assured. Suppose, if you have a family of 6 members with a family floater insurance plan of Rs. 18 lakhs. If one of the family member claims insurance of Rs. 11 lakhs then, the remaining five family members will be left with a sum assured of Rs. 7 lakhs. -
Family Floater Insurance Plan
The family floater insurance plan protects the entire family against medical illness/accident. The basic difference between the family floater insurance plan and individual insurance plan is that the assured sum in case of family floater policy is shared amongst the family members. Whereas, the entire sum assured is awarded to an individual under the individual insurance policy.
The main benefit of owning a family floater insurance policy is that you need to pay multiple premiums, and managing insurance policy also becomes easy. The premium of the family floater plan is determined according to the age of the eldest family member. You must check for the insurance policy online to avail the maximum benefit by paying a minimum premium. Understand this insurance plan with an example.
The assured sum gets slashed in this case if any one member of the family claims for a huge amount of sum assured. Suppose, if you have a family of 6 members with a family floater insurance plan of Rs. 18 lakhs. If one of the family member claims insurance of Rs. 11 lakhs then, the remaining five family members will be left with a sum assured of Rs. 7 lakhs. -
Maternity Insurance Plan
Maternity insurance is a specific health insurance plan for expecting mothers as this insurance plan covers all medical expenses during pregnancy and post-pregnancy expenses. In some cases, this maternity insurance plan also offers infant cover for a specific duration. However, you have to wait for a tenure of 2-3 years to claim for a maternity insurance plan or the same to get it activated. Ideally, the maternity insurance plan should be taken immediately after getting married, and the same can also be added to the individual insurance policy.
The best maternity insurance plan online can be searched to avail prenatal and postnatal financial aid so that you enjoy parenthood. -
Hospital Daily Cash Benefit Plan
The hospital daily cash benefit plan pays for your daily expense caused due to hospitalization. However, this type of health insurance plan has a predetermined sum assured for each day you spend in hospital, and the same will not exceed.
For example, if the value of your Hospital Daily Cash Benefit Plan stands at ₹ 4,000 per day then you will receive the same amount from the insurance company even if you incur daily hospital expenses of ₹ 2200. The main thing to remember here is that you are not eligible for more than ₹ 4,000 if your daily hospital expense stands at ₹ 5,200. -
What is Car Insurance?
In India, it is compulsory to get your car insured under the Motor Vehicle Act. As per the law, car insurance is the fixed amount that the insurance company will pay to you in case of damage/loss of the car.
Now in the era of digital transformation, you can buy car insurance online with minimum paperwork. However, you need to know the types of car insurance and car insurance terminologies in India. Here we let you know everything about car insurance in India.
What is Car Insurance?
In India, it is compulsory to get your car insured under the Motor Vehicle Act. As per the law, car insurance is the fixed amount that the insurance company will pay to you in case of damage/loss of the car. Now in the era of digital transformation, you can buy car insurance online with minimum paperwork. However, you need to know the types of car insurance and car insurance terminologies in India. Here we let you know everything about car insurance in India.
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Types of Car Insurance in India
Third-Party Car Insurance
In case you are met with an accident, then the third party insurance plays an important role. This type of car insurance meets the expense incurred due to the damage caused to your car.
Comprehensive Car Insurance
The comprehensive car insurance offers a wide range of security cover against damage to the car, death of the driver/passenger, etc. We suggest car owners to purchase comprehensive car insurance and own a bigger insurance blanket to keep your expenses at bay. -
Five Car Insurance Terms Every Insurance Buyer Must Know
Insured Declared Value
In case you are met with an accident, then the third party insurance plays an important role. This type of car insurance meets the expense incurred due to the damage caused to your car.
Zero Depreciation Cover
A policyholder claims for car insurance if the vehicle is damaged due to an accident. In this case, the car insurance provider companies assess the factors that depreciate the value of the car to figure out the actual payable amount.
No Claim Bonus
Often known as NCB, the No Claim Bonus is a reward offered by car insurance companies to the policyholders who didn’t even claim for insurance during the policy tenure. The No Claim Bonus is available only at the time of renewing car policy.
Voluntary Deductible
The policyholder has the option to select the amount he/she can contribute towards the damage caused to the car. This cost of sum assured is known as voluntary deductible. However, it is not compulsory for the policyholder to enable this feature. But, a policyholder must consider the fact that the high voluntary deductible reflects a low premium.
Third Party Liability Cover
Under the third party liability cover, the policyholder gets protection against specific financial issues that arise due to death, physical injury or any damage caused due to another vehicle. The Indian Motor Act makes it compulsory to cover your four-wheeler under the car insurance cover to drive on the Indian roads while abiding by the law. -
Key Reasons to buy Car Insurance Online
Compare Multiple Policies at one place
The biggest advantage of buying a car insurance policy online is that the potential policyholder can get rid of making traditional comparison amongst car insurance providers by calling or scheduling a personal meeting with them. Now, you can visit one website that showcases car insurance policies from multiple insurance companies in India.
Check Credibility of Insurance Companies
Another reason to buy a car insurance policy online is that the potential buyer can figure out the reputation of the insurance company. Visit the website of the top insurance service provider company in India to find the best car insurance company. Every potential insurance policy buyer must know that only the top four-wheeler insurance company can offer maximum cover in minimum premium. Also, the best car insurance company provides easy claim settlement and ensures easy payments of the insured vehicle.
Policy Buying in Quicktime
One of the main reasons to buy car insurance online is that you need to compare insurance policies at least a month before the expiry of your car insurance. But, the purchase of car insurance policy via a traditional approach is tedious work. Hence, a policy buyer must switch to the digital method. To apply for car insurance while following the traditional insurance buying method, the car insurance policy buyer needs to submit documents to the respective insurance company. The company, in turn, will verify the set of papers such as ID proofs, car insurance paper and other documents before accepting your application and this takes a lot of time. After the completion of this process, the four-wheeler insurance policy is sent to the policyholder by post. However, if you buy a car insurance policy online, then you simply need to upload the said documents and minimum time possible is taken to complete the verification process.
Favourable
You can now buy four-wheeler insurance online. The internet allows you to compare car insurance online and also gives you the flexibility to buy four wheeler insurance from the best insurance company.
What is Bike Insurance?
Bike insurance is commonly known as two-wheeler insurance, and every person owning a two-wheeler must have it. According to the Indian Motor Tariff 2002, every person owning a bike or a two-wheeler must have a third-party bike insurance policy. The bike insurance provides financial assistance to the vehicle owner in case of an accident, damage/loss of bike/two-wheeler.
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Types of Bike Insurance in India
Third Party Bike Insurance Plan
The third-party bike insurance plan protects the policyholder from paying for the damage caused to the vehicle of another person. The bike insurance plan also ensures that the insurance company pays for monetary compensation to the third party if death is caused due to the negligent/rash driving of the policyholder.
Comprehensive Bike Insurance Plan
The comprehensive bike insurance plan provides cover if the policyholder meets with a mishap on the road and the vehicle gets damaged. This type of bike insurance plan ensures financial protection to the policyholder and the third party as well.
Standalone Own Damage Bike Insurance Plan
The standalone own damage bike insurance plan solely covers the damages incurred to the vehicle of the policyholder in case of any road accident. However, a person needs to buy the third party bike insurance policy separately to meet the guidelines framed under the Indian Motor Tariff 2002. -
Damages Covered under Comprehensive and Standalone bike Insurance Plans
Each bike insurance plan has distinct features, but the below-mentioned damages to the bike/two-wheeler are covered under the comprehensive and standalone bike insurance policies.
- On-road Mishap
- Damage during transportation
- Damage due to Natural Calamities
- Damage due to riots/strike
What is Home Insurance?
Home insurance is a policy that safeguards against physical damage caused to the structure of the house due to natural disasters like flood, earthquake, etc. This type of home insurance also offers cover against damage/destruction caused to home due to theft or any other man-made issues such as riots, terrorism, etc.
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Features of Home Insurance
Home insurance offers protection against damages caused due to several reasons. Here are the features of top home insurance policy in India.
Protection against Damage
Apart from protecting abode’s structure, home insurance also offers protection against damage to home surroundings and to the specific elements of the abode. The best home insurance policy offers protection against destruction caused to an abode due to electric apparatus, water leakage, temperature imbalance, etc.
Add-Ons of Home Insurance
Other than offering protection to the structure and elements of the home, the best insurance policy also provides cover against the boundary, garage, backyard area, open space like pool and dropbox. -
Key Advantages of Home Insurance
We have listed the main benefits of home insurance that every policyholder can avail:
- Firstly, the policyholder is eligible for compensation against damage/destruction of structure and elements of a home.
- Secondly, let the policyholder experience a tension-free life without worrying about the financial loss he/she needs to face in case of any unfortunate incident.
- Thirdly, quick claim settlement in case of claim application made by the policyholder.
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Criteria to apply for Home Insurance
We have listed the main benefits of home insurance that every policyholder can avail:
- A person needs to be the owner of the property and should have citizenship of India. An individual entity and organization can buy home insurance policy. But, the particular person should hold the ownership title of the said property.
- In case you own home in a housing society then you must have the membership of the respective housing association.
- The society can buy home insurance solely to avail security cover against the utilities and common areas such as stairs, terrace, boundary walls, open area like garden, etc.
What is Travel Insurance?
The travel insurance offers protection to you against unexpected damage/loss caused to you during traveling. The best travel insurance policy in India guards you against medical expenses caused due to hospitalisation, illness, mishap, loss of passport, loss of baggage, and trip cancellation.
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Types of Travel Insurance in India
Domestic Travel Insurance
A solo traveler or families traveling across the length and breadth of India must buy the domestic travel insurance to cover emergency medical illness, hospitalisation during the course of the journey, loss of baggage, loss of passport, etc.
International travel Insurance
Anyone then be it a solo traveler or the entire family plans to travel outside India must buy the international travel insurance as it safeguards the traveler against emergency medical illness, hospitalisation during the course of the journey, loss of baggage, loss of passport, etc.
Family Travel Insurancez
The family travel insurance covers the policyholder and his family including spouse, children and dependents. This type of travel insurance is available under the individual and family floater plan.
Senior Citizen Travel Insurance Plan
The best insurance company offers senior citizen travel insurance plan for travelers above 60 years. The travel insurance plan for senior citizens covers expenses for medical emergencies, dental issues, repatriation of mortal remains, loss of baggage, etc.
Multi-Trip Travel Insurance
Multi-trip travel insurance is best for frequent travelers as they need not buy travel insurance every time they travel. The multi-trip travel insurance is a value for money deal for frequent travelers.