Top 7 Types Of Insurance In India

                                                               

                                                                                7-types-of-insurance-in-india

Insurance is those benefits that protect you against threats such as fire, accidents, thefts or burglaries. They can also extend financial benefits to you and your family in case you fall ill to work or if you unfortunately die.

Insurance is a means of preserving from financial loss. It's a sort of risk management tool used mainly for hedging against the possibility of a potential and/or unforseen loss.

An organization or company that provides insurance is known as an Insurer or Insurance Company or underwriter. An eligible individual or company who owns policies is recognized as an Insured person or a policy holder. 

The insurance agreement entails the insured accepting a relatively small fixed, periodical liability in the form of payment to the insurer in return for the insurer's promise to repay the insured in the case of a claimed injury. 

The damage may or may not be material but it must be substantially minimized which usually includes.

Insurance in India

The business of insurance in India is covered by both public and private companies. The insurance industry has undergone a variety of changes by allowing private firms to pay for protection and enabling foreign direct investment as well. India llowed private insurance companies to set an FDI limit of 26 percent in 2000 which was subsequently raised to 26 percent in 2014. Since the privatization of the insurance sector in 2001, Indian insurance sector has overwhelming development.

Insurance policies in India

As we are all aware, insurance policy is a contract between the Insurer company and the Policy holders. The contract stipulates payment of fixed premium periodically by the Policy holder to the Insurance company, as specified in the contract or Policy.

Insurance contracts are designed to meet particular needs and have variety of features and vary from policy to policy. Since insurance policies are standard forms, boilerplate language is similar across a wide range of different insurance policies.

Insurance policy is a comprehensive arrangement, as it contains all ways involved with the transaction between the insured and insurer. 

Top and popular types of insurance available in India and run by both public and private sectors, have been described here under:

• 1) Life Insurance or Personal Insurance

• 2) Health Insurance

• 3) Property Insurance

• 4) Car Insurance

• 5) Travel Insurance

• 6) GAP Insurance

• 7) Social Insurance

• 8) Liability Insurance

LIFE INSURANCE

Life Insurance offers a wide range monetary benefits to the nominee/spouse or named survivor of a deceased. Life Insurance also offers the options of paying the financial help either by way of lump sum cash payment or an annuity as the case may be.

LIC or Life Insurance Corpn of India is the largest company in this segment and run by public sector. 

In this type of policy, the insurer commits to pay a specified amount as mentioned in the policy agreement to a specified person in return for a fee on the death of an insured person(often the policy holder)after expiry of the specified term or tenure of the policy. 

If the insured die because of a terminal or critical insurance before the expiry of the tenure of the policy, the Insurer also remains liable to pay to the nominee of the insured either a lump sum amount or in the form an an annuity.

HEALTH INSURANCE POLICY

To continue.......