ALL ABOUT INSURANCE IN INDIA

Insurance is a contract of indemnification in which one party (the insurer or the insurance company) seeks to assure the other party (insured or the individual taking insurance) entering into contract, that he will be insured against a specified amount which is pre-decided, in case of any unseen circumstances. Insurance is based upon 7 basic principles which are as follows:

Principle of Utmost Good Faith Principle of Indemnification Principle of Insurable Interest Principle of Subrogation Principle of Causa Proxima Principle of Contribution Principle of Loss of Minimization

WHAT IS INSURANCE

There are two broad categories of Insurance :-

1. Life Insurance2. General Insurance

TYPES OF INSURANCE

A life Insurance policy seeks to provide the sum assured to the beneficiaries of the insured in case of any mishap.

A Life Insurance Policy has benefits other than providing you a life cover, the following are the benefits: Mortgage Protection Retirement Benefit Childcare Estate Protection

A life insurance policy can be further divided into :-

LIFE INSURANCE

1. Term Assurance: A term assurance policy is one in which the sum assured is paid only if the insured dies within the term, if he survives the term nothing is paid.

2. Whole Life Assurance: It seeks to cover the insured for his entire life and the sum assured is paid to his beneficiaries in the event of his death.

3. Endowment Assurance: Endowment Assurance provides protection to the insured and the sum assured is paid in the event of the insureds death during the term or even if he survives the amount is paid, but it should be within the term.

4. Annuities: In annuities, the insured pays a lump sum amount to the insurer and the insurer pays a regular amount to the insured until his death.

GENERAL INSURANCEA general insurance policy seeks to provide insurance other than life insurance; such as marine insurance, fire insurance, theft insurance, house property insurance etc.

General Insurance can be further divided into:-

Fire Insurance: Marine Insurance: Health Insurance: Motor Insurance:

FIRE INSURANCEA fire insurance policy seeks to cover the insured against damages that might occur due to a fire. In this case to take the claim the actual reason of damage should be fire not any other. It is designed to cover the cost of replacement, reconstruction or repair, damage to the building itself, and may also cover damage to nearby structures, personal property and associated expenses.

MARINE INSURANCEMarine Insurance provides a cover against any damages that might occur while the goods are being transported by rail, road, sea or air. Marine policies cover the property or 'interest' insured against damages caused by the sea such as bad weather, stranding, collision, fire, while aviation insurance covers damage on the ground or in the air, and liabilities for cargo and passengers.

HEALTH INSURANCEIn this the medical expenses are paid for which the insured incurs. The policy provides a cover in the following situations in the event of death, permanent disablement or loss of eyes or limbs due to accident or if the insured is unable to work due to accident (or sickness).

MOTOR INSURANCESeeks to provide a cover for collisions that might occur on the road.

There are three types of motor insurance:- a) Car Insurance: This policy mainly covers damages that

happen to the car and also covers against third party liability insurance.

b) Two Wheeler Insurance: A two wheeler insurance, is a type of policy falling under the motor vehicle insurance and provides a cover for theft and damages to the bike or scooter.

c) Commercial vehicle Insurance: This type of policy covers damages to the commercial vehicles such as passenger carrying vehicles, private and public carriers, miscellaneous and other type of vehicles.

Hope the above information we shared with you must be helpful for buying a new insurance policy.

If you are interested in buying home insurance, please feel free to reach us from any of the touch points mentioned below and we'll be happy to assist you.

Call us Toll Free No. : 1800-209-5846

or SMS 'LTI ' to 56070 58 (56070-LT)

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