What is Insurance?

An insurance provides protection in the form of financial compensation for specified loss, damage, illness or death. To get this coverage, you need to pay a certain amount of money to the insurance company which is called a premium. In simple terms, an insurance is a promise of providing for the uncalled expenses during emergency situations for you and your family. An insurance is of various types and can help in meeting unexpected health expenses, children’s education or marriage expenses, creating a corpus for retirement or for other financial requirements.

How Insurance Works?

The insurer and the insured get a legal contract for the insurance, which is called the insurance policy. The insurance policy has details about the conditions and circumstances under which the insurance company will pay out the insurance amount to either the insured person or the nominees.
Insurance is a way of protecting yourself and your family from a financial loss. Generally, the premium for a big insurance cover is much lesser in terms of money paid. The insurance company takes this risk of providing a high cover for a small premium because very few insured people actually end up claiming the insurance. This is why you get insurance for a big amount at a low price.
Any individual or company can seek insurance from an insurance company, but the decision to provide insurance is at the discretion of the insurance company. The insurance company will evaluate the claim application to make a decision. Generally, insurance companies refuse to provide insurance to high-risk applicants.

A premium is the money paid by the policyholder to the insurance company for getting an insurance policy. The premium is an important aspect to be considered before finalising a policy. Various factors like age and gender, lifestyle, duration of the plan, sum assured or insured play a role in deciding the premium amount. To reap the benefits of an insurance policy, it is important to make timely payment of the premium. In case of a non-payment or a payment delay, the policy can lapse. However, before a policy happens to expire, you usually get a grace period of 30 days to make the payment. The payment mode can be regular or single. A regular payment can be monthly, annually and so on. Let us understand some factors on which the premium depends.

Own a home , because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property.

Drive vehicles , because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage. Auto insurance is also a legal requirement.

Maintain your current standard of living if you become disabled or have a critical illness. It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery.

Cover health care costs like prescription drugs, dental care, vision care and other health-related items.

Provide for your family in the event of a death. There are life insurance options for short and long-term needs that protect your family’s home, mortgage, lifestyle and the cost of post-secondary education for children.

Run a small business or family farm by managing the risks of ownership. Get owner, business and employee coverage, and provide group benefits and retirement plans for employees.

Motor InsuranceAlso called vehicle insurance, it offers financial protection against any loss, theft or damage to cars, two wheeler, trucks and other vehicles. There are 2 types of motor insurance coverage – comprehensive coverage and third party coverage. As part of third party coverage, it extends financial aid for any accidental death or bodily injury to others on the road. On the other hand, a comprehensive coverage includes protection to both the owner, the insured car and the third party. Apart from the regular coverage, additional benefits or add-on coverage offered with the insurance make it a complete package. This is further segregated into 3 categories – car insurance, two wheeler insurance and commercial vehicle insurance.

  • Car Insurance : It is mandatory to get your car insured before taking it on the roads. The financial coverage offered helps in dealing with uncalled for events like accidents, car theft or loss. This insurance offers both Comprehensive and Third Party Liability Coverage. As part of add-on coverage, a car insurance also provides financial protection under personal accident to the owner/driver of the car and other passengers in the car. Other additional covers are Zero Depreciation Cover, Engine Protection, No Claim Bonus (NCB), etc.
  • Two-Wheeler Insurance: Bike or Two Wheeler Insurance: According to a report, around 20 million two-wheeler vehicles were sold in India in 2017-2018. To stay safe on the road, a two-wheeler user needs two-wheeler insurance. A two wheeler insurance offers both Third Party Liability Cover (covering damage done by the bike to third party) and Comprehensive (covering third party liability + damage to own bike and the riders). Along with these two major covers, one can get protection against depreciation costs by opting for Zero Depreciation Cover which enables the insured to receive full amount of repair and/or replacement in case of claims made (except for tyres and tubes).
  • Commercial Vehicle Insurance : Apart from private vehicles, a large number of commercial vehicles also ply on the road. A Commercial Vehicle Insurance provides financial protection to these commercial automobiles. Getting this insurance will help the owner in managing the costs incurred in handling situations like theft, loss or damage to the vehicle.

Life insurance
life insurance is insurance on your life. You buy life insurance to make sure your dependents are financially secured in the event of your untimely demise. Life insurance is particularly important if you are the sole breadwinner for your family or if your family is heavily reliant on your income.

Health insurance
Health insurance is bought to cover medical costs for expensive treatments. Different types of health insurance policies cover an array of diseases and ailments. You can buy a generic health insurance policy as well as policies for specific diseases. The premium paid towards a health insurance policy usually covers treatment, hospitalization and medication costs.

Home Insurance
We all dreaming of owning our own homes. Home insurance can help with covering loss or damage caused to your home due to accidents like fire and other natural calamities or perils. Home insurance covers other instances like lightning, earthquakes etc.

  • Standard Fire and Special Perils Plan.

  • Home Structure Plan:

  • Renters Insurance Plan:

  • Landlord Insurance Plan:

Travel insurance
A travel insurance plan ensures that while travelling (be it domestic or abroad) you stay financially covered to manage any untoward incident. These situations include loss of ticket or baggage, cancellation of flight, trip delay, emergency medical situations, etc. In the absence of a travel insurance, in case you encounter such circumstances, you might waste your time and money in dealing with them instead of enjoying or utilising your trip.

  • Domestic Travel Plans

  • Family Travel Plans

  • Group Travel Plans

  • International Travel Plans

  • Multi Trip Travel Plans

  • Travel Insurance Plans for Senior Citizens

  • Travel Medical Plans