Type of Insurance and Top 10 Insurance Companies in India Providing Life and General Insurance - KhurafatiTech How to Tips-Tricks


Wednesday, February 13, 2019

Type of Insurance and Top 10 Insurance Companies in India Providing Life and General Insurance

What is Insurance

The term Insurance can be understood as an arrangement, in which the insurer commits to provide compensation for loss, damage, death, happening caused to the insured in return for the payment of the premium. Insurance policies are designed on the principle that although we cannot stop unfortunate events occurring, we can protect ourselves financially against them.

Type of Insurance

Base on the contracts between the Company and Insured, There are two types of contract; a contract in which life risk is covered is called Life Insurance, a contract in which other than life risk, anything covered is called General Insurance. The insurance plan which covers the life-risk of the insured is called Life Insurance. On the other hand, the insurance plan which covers any risk other than the life-risk (Motor, Home, Travel, Property, Health, Credit Card Insurance etc) of an individual is called General Insurance.

There are various type of Insurances in the market, based on the things covered. You need to insure many things against the largest threats to your budget in the event of an unexpected disaster in this case company provide us the cover a sum assured when we pay a premium of to the company. You may have difficulty to decide which type of insurance policies are really necessary and which ones we can realistically live without. Purchasing the right insurance depends primarily on your current situation

1.Life Insurance

Life Insurance
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Life insurance is important if you have people who are dependent on you financially. Think unfortunately if you made with an accident or any disease and you die ! What will happen with your family and your child. If you were to die unexpectedly then your salary would no longer be available to cover regular household expenses such as mortgage payments, and utility bills, and your family would suffer financial hardship as a result. Life insurance is designed to cover these expenses in your absence, so that the financial burden can be reduced experienced by your family at what would already be a very difficult time.

There are mainly two types of life insurance policies
(i) Whole Life Policy
In this type of policies, you pay premiums till your death in this type of policies, and your nominee get the sum assured or the finance only after your death.

(ii) Term Life Policy
In this type of policies, you pay premiums only for a set period of time depending on when you take out the policy. It is always better to engage experienced insurance broker, or financial adviser, before taking out a policy as they can differ widely, and it is important that you arrange cover that meets your needs and requirements exactly.

List of Some Top Life Insurance Companies in India:

1.Life Insurance Corporation of India (LIC)
2.ICICI Prudential Life Insurance
3.SBI Life Insurance
4.HDFC Standard Life Insurance
5.Max Life Insurance
6.Bajaj Allianz Life Insurance
7.Birla Sun Life Insurance
8.Reliance Nippon Life Insurance
9.Tata AIA Life Insurance
10.PNB Metlife India Insurance

Except Life Insurance other Insurance can be categorized in General Insurance;

2.Motor Insurance
Motor Insurance
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If you have a bike, car or any commercial motor vehicle, you really need Motor Insurance. It is not necessary only because the government law require that you carry it, but there are many reasons. May people purchases their own vehicle after saving money working hard many years, for many people, their vehicle is the only way of earning, for many people this the only way to get to work. If you made with an accident, and the money isn’t available to get it repaired or to buy a new one, it can be hard to earn a living. In that case Insurance company support you a lot to cover this damaged.

Additionally, if you are at fault in an accident, the liability you have could become very expensive. Your Motor Insurance policy may pay medical bills and Third Party property damage so that you wouldn’t be forced to come up with the money out of pocket, possibly resulting in financial ruin.

3.Health Insurance

Health Insurance
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Health insurance is another one of the main insurance that experts recommend.
Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees. If you have a chronic condition, health insurance can help you better afford the care you need. Even if you are in good health, and rarely use health care services, it can be a good idea to at least have a policy that covers major medical problems, just in case an accident befalls you. It can be difficult to find affordable health insurance, particularly if you have a pre-existing medical condition, or if you are unable to access health cover via your employer. Again, it can be helpful to consult with a financial adviser to determine what type of policy is right for you.

4.Home Insurance
Home Insurance
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Home insurance
, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Additionally, homeowner's insurance provides financial protection against disasters. A standard home insurance policy insures the home itself along with the things kept inside.

5.Travel Insurance
Travel Insurance
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Travel insurance is a plan you purchase that protects you from certain financial risks and losses that can occur while traveling. These losses can be minor, like a delayed suitcase, or significant, like a last-minute trip cancellation or a medical emergency overseas.
In addition to financial protection, the other huge benefit of travel insurance is access to assistance services, wherever you are in the world . If you have already paid for your trip, full or partial, and you need to cancel the trip or return home early by interrupting the trip, travel insurance provides trip cancellation and trip interruption coverage for the pre-paid and non-refundable portion of your trip for a covered reason. If you get sick or injured while traveling abroad, most domestic health insurance plans provide little or no coverage outside the coverage area. Medicare does not cover outside the United States. Very few domestic insurance plans cover supervised emergency medical evacuation, repatriation of remains or emergency reunion. Travel insurance companies are experts in international health insurance coverage.

The most common risks that are covered by travel insurance plans are:

  • Medical treatment, including transportation to the medical facility.
  • Cancellation, curtailment and trip interruption
  • Lost, stolen or damaged baggage, personal effects or travel documents
  • Accidental death, injury or disablement benefit
*and coverage may vary company to company and depending on the policy type.

6.Disability Insurance

Disability Insurance
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Going to work each day and collecting a regular paycheck may just be part of your routine — something you don't even think about much. But what would happen if you were injured and couldn't work? Accidents (and illnesses) happen. If they are serious enough to keep you from working, how would you pay your bills? That's where disability insurance may be able to help. Disability insurance is a type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to a disability. There are many types of organizations that provide different types of disability insurance. Each organization and disability insurance type have specific rules as to what constitutes a disability and how a person might qualify to receive the disability benefit. Short term disability insurance policies offer a worker a portion of their salary if they are unable to work for a short period- typically three to six months. Long term disability insurance offers a worker a portion of their salary if they are unable to work for a longer period- typically a period of over six months. The worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD.

7.Liability Insurance

Liability Insurance
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This insurance is also called as Third Party Insurance as it protect the "insured" from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy. Liability insurance is designed to offer specific protection against third-party insurance claims.
In other words; payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies.

8.Marine Insurance
Marine Insurance
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Marine Insurance, as the name goes, offers a means of financial protection against damage or loss caused to ships, boats, yacht, and most important of all, the cargo. Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.
Marine Insurance Plans are of various types. Customers should opt for the one that seems feasible and meets the requirement of the nature and scope of their business.

9.Business Insurance
Business Insurance
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Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.
  • BREAKING DOWN Business Insurance: It is especially important for small business owners to carefully consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of loss.
  • Product Liability Insurance: If your business manufactures products to sell, product liability insurance is very important. Any business can find itself named in a lawsuit due to damages caused by its products. Product liability insurance protects a business in such cases.
  • Vehicle insurance: Any vehicles used for business should be fully insured. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover the vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception is if a person is delivering goods or services for a fee, including delivery personnel.
  • Professional Liability Insurance: Professional liability insurance insures against negligence claims that result from mistakes or failure to perform. There is no one-size-fits-all professional liability coverage. Each industry has its own unique concerns that should be addressed.
  • Property Insurance: Property insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, it doesn't cover mass-destruction events like floods and earthquakes. If your area is at risk for these issues, you'll need a separate policy.
  • Home-Based Businesses: Homeowner’s policies don’t cover home-based businesses like commercial property insurance covers businesses. If you're operating a home-based business, inquire about additional coverage for equipment and inventory.
10.Agricultural insurance
Agriculture or Crop Insurance PMFBY
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Reasons where the crop is at high risk, there is a need of Agricultural Insurance to protect the risk. Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.
There are generally two type of Crop Insurance:
  • crop-yield insurance: Crop Yield Insurance gives you a guaranteed yield for your crops. Simply put, if the yield falls below the guaranteed level, you will get an indemnity payment from the insurance company. It covers the risk of; Hail, Fire, Wind, Drought, Excessive moisture or Excess of Water.
  • crop-revenue insurance: Crop Revenue Coverage is a form of revenue insurance that protects a producer’s revenue for an insurable crop whenever low prices.
List of General Insurance Companies working in India:
Disclaimer: All the Information is collected from Internet: coverage may vary as per company guidelines.

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1 comment:

Sartak mishra said...

Very Explained Information. good work