Insurance refers to a contractual arrangement in which one party, i.e. insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the Policyholder for the coverage set forth in the insurance policy is called the premium.
A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Health insurance is often included in employer benefit packages as a means of enticing quality employees.
- Individual Policies
Individual health insurance is policy that a person buys on his own, and not that he avails because of his employer taking policy for all employees of the organization or as part of a group. Individual health insurance policy can be bought by a person for himself as per his requirements. A health insurance cover for a single insured person. The insured (only) can avail the benefits up to the pre-determined sum insured. - Floater Policies
A health insurance cover for the entire family including spouse, dependent parents and children. The sum insured for the entire family is pre-determined. Whenever there is a medical claim for any of the family members, the claim is made from that total sum insured. For e.g., there is a family floater policy with sum insured of Rs. 5 Lakh. One member in the family is hospitalized, uses about Rs. 2 lakh for his treatment, the remaining 3 lakh can be availed by other family members. Hence the family floater serves the purpose whoever in the family falls ill. - Group Policies
Persons having some similarity (working in the same organization, same occupation, etc.) form a group and the health insurance company collectively insures the group. Group insurance policies are very popular with organizations where they form a group of all the employees and get them collectively insured where each member is then insured for a particular risk cover amount. The premium that is paid per person is far less than the premium of an individual policy.
A motor insurance policy is a mandatory policy issued by an insurance company as part of prevention of public liability to protect the general public from any accident that might take place on the road. The law mandates that every owner of a motor vehicle must have one motor insurance policy. Broadly, there are two types of motor insurance - the 'Act only' policy and a comprehensive policy. The scope of the 'Act only' policy is to pay compensation for death or any bodily injuries and for damage to property of third parties. While the insured is treated as the first party and the insurance company as the second party, all others would be third parties
Motor Insurance covers
- Accident caused by external means.
- Man made calamities, such as Explosion, Burglary, Theft, Riots & Strikes,Malicious Acts, Terrorism, etc
- Natural calamities like Earthquakes, Fire, Floods, Typhoons, Hurricanes, Storms, Cyclones, Lightning,etc.
- While in Transit by rail/road, air or waterway.
- Third party legal liability
- Cover for an owner driver in case of death
Personal Accident Insurance covers in the event of the person sustaining bodily injuries resulting solely and directly from an accident caused by external, violent and visible means, resulting into death or disablement (partial/total). It pays for injuries sustained, occurred anywhere in the world
The following are the basic types of Personal Accident Insurance Policies:
- Individual
The policy can be availed by any individual for self protection.
- Family
Any individual can take this policy for protecting his family. It covers the individual(self), spouse (wife), parents and children Spouse and children are entitled a limited cover as per the policy.
- Group
It can be availed by a group of employees of an organization and their dependents, members of clubs, societies and associations, etc.
A form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
Home Insurance Policy covers:
- Fire & lightening
- Explosion of gas & domestic appliances.
- Floods, cyclones, land slides, etc.
- Covers loss of household contents and expenses Incurred due to damage caused as a result of house-breaking & theft.
- Jewelry and precious stones.
- Covers any injuries or damages to third parties.
- Building with landlord fixtures, fittings, wiring & sanitation.
- Furniture, Fittings, Furnishings, Extra-wiring, False-Ceilings, Flooring or any modifications.
- Utensils, Clothes and valued articles.
- Television, VCR/VCD,Home-Theater.
- Air-condition, fridge, washing machine, flour-mill, etc;
- Fixed Plate-Glass, Baggage.
- Personal Accident.
- Workmen Compensation Liability.
- Personal Computers.
- Damages due to terrorist activities, riots,etc.
