Insurance in India is mainly of two types: life insurance and general insurance. Life insurance has made its way in India over 100 years ago. It has been defined as a term of insurance where the insured pay a certain amount, called premiums at specified time and in return the insurance companies agrees to compensate or pay back a certain sum of money to the insured on specific terms and conditions related to the duration of human life. Life insurance guarantees full protection against the risk of death of the insured. On the death of the insured person, life insurance pays the full sum assured with bonuses as applicable while in other saving schemes only the saved amount with interest is payable. In a sense, life insurance is superior to other forms of savings. On the other hand, general insurance means insurance against health, fire, marine and various insurance which include insurance against property, burglary or theft, reliability guarantee, employer’s liability, and insurance of motor vehicles etc.
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Besides life insurance there are different types of non-life insurance policies. Every asset has a value of its own and the main aim of general insurance is to protect the economic value of assets. Nothing can be guaranteed on this unpredictable planet. Our assets can be damaged or be victims of accidents and calamities at any time. So, we must prepare ourselves to prevent the losses by insuring our assets with different insurance plans and policies.
Insurance Types Some of the important types of insurance policies are:
- Property Insurance: The home is most valuable possession for everyone. This particular policy is specially intended to cover all the risks of your house under a single policy. Property insurance also provides protection for other valuable properties and other assets that are of interest for the insured.
- Health Insurance: It covers all medical expenses following hospitalization from sudden illness or expenses from any kind of accident.
- Personal Accident Insurance: This insurance policy allows full compensation for injury and even loss of life caused by an accident. It also includes compensation of cost of treatment and the use of hospital facilities in the process of treatment.
- Travel Insurance: This policy covers the insured against various events and misfortunes while traveling abroad. Travel insurance covers the insured against any kind personal accidents, medical expenses and even loss of checked luggage, passport etc.
- Liability Insurance: This policy indemnifies the officers or other professional employees against loss of their jobs arising from claims made against them by reason of any wrongful Act in their terms of service.
- Motor Insurance: According to Motor Vehicles Act, every motor vehicle running on the road has to be insured, if not with at least a liability policy. Generally, there are two types of motor insurance policy; one covers the act of liability while the other covers all liability and damages caused to the vehicles.