Insurance refers to protection from the possibility of loss. It is the form of risk management primarily used to minimize the exposure to the risk or uncertain loss. The company/ entity /organization that offer the risk coverage are termed as insurance company or insurer. Whereas an individual or customers agree to purchase such offering is called policyholder or insured. The loss exposure may or may not be directly proportionate to finance, but, by buying the insurance, customer should be able to bring down the level of finance exposure to great deal, and must involve something in which the insured has an insurable interest backed by pre-existing relationship, ownership and ultimately possession. Once the policy is been purchased by the insurer, subsequently he/she receives a contract termed as insurance policy. The contract entails details of policy wherein the details of conditions are charted such as what is being covered, what to expect, commencement date and time and expiry date and time etc.Customer gets the policy by agreeing to insurance company by paying premiums on monthly, quarterly or yearly premiums. In response to customer, the insurance company is obligated to protect the policy holder or customer from any sort of unforeseen risk or loss such as death, robbery, theft, health or injury that may follow in the future.
Insurance is the only financial instrument that helps you manage your financial risks smoothly and reduces your financial worries.
Various insurance in India
With the rapid pace of growth of economy of the country, it has also thrown quite a few challenges in the form of diseases, casualties, pollution and life-style related problems and the aspect known as risk is growing today.Exposure to risk has become inevitable. Therefore, one would notice that more and more people are now going for mandate insurance thoughts. Not only this, there are various companies, both in government and private sectors purchasing insurance for their employees to ensure to their health & health of organisation.Insurance promotes an environment wherein an individual does not really have to worry about risks associated.
Below are the types of risk and their coverage (insurance) plans: -
For risk associated to life (Life Insurance): Life insurance plans broadly have framework in two major categories namely “Term life insurance” and “Whole life insurance”. As the name suggests life insurance, is the type of risk insurance in which customer wants to protect risk which may have direct implication to an individual life.Life insurance offers comparatively relaxed or hassle-free payment terms which starts from yearly, quarterly, monthly and for some cases companies have really started offering daily payments too. While the company charges you certain fee which depends on entirely the sort of loss and it’s value you want to cover.The policy covers imminent risks such as any loss, would be loss or damage to your property, you or your loved ones or family. These days you will see day by day newer players are entering into the market and the market is flooded with various kind of lucrative deals, competition have really gotten fierce and life insurance plans along with the great deals are offered by both private and public sector insurance companies, by the way of insurance designs they offer long term financial security. Life insurance term plans can prove out to be very significant as they offer protection against the healthcare or any exigency and also financial security post retirement.Health insurance not only provides the aforesaid benefits, but the insurance policy holder can also take loans against the insurance policy.
For risk associated to health (Health insurance): Due to severe change in the atmospheric condition across the planet, lot of diseases which one would have not heard in the lifespan are being run now. People therefore find them in the middle of health problems and therefore, opt for health insurance. Health insurance provides the advantage of worry-free situation wherein customers do not really have to constantly think of medical costs borne during the hospitalization due to accident, life-style diseases, surgeries, medical tests or any kind of medical conditions involving health. All an individual has to do is to buy health insurance plan depending on one’s need and budget and enjoy the worry life. We the insurance company will charge certain cost based on your requirements you want to club in your health insurance plan.
For risk associated with car (Four-wheeler vehicle insurance): As per the government guideline, it is mandatory to purchase the car insurance whenever an individual purchases a new car, government feels that once a vehicle moves to the road from showroom, it carries risk around and has potential to damage human life apart from vehicle’s own damage and damage to property and vehicles of others. So, the risk which arises out of the exigent situation, car insurance offers a controlling mechanism on these situations. Risk by nature cannot be limited to a particular type, so the impact has to be understood, and in order to cover up such risks, car companies have tailored or improved comprehensive policy which not only offers the vehicle’s protection, but guards driver, fellow traveller and third party from life perspective, for non-life coverage insurance plan covering broad and unanticipated aspects too.
For risk associated with scooter/bike (Two-wheeler insurance): India have got the reputation of most populous nation across the planet, with majority of it’s population falling in the category of middle & lower middle-class and for them the most preferred commuting machine is two-wheeler which leaves four wheeler population by leaps and bounds. As per the research, almost 400 people are killed every day in road accidents and bikers or two wheeler riders are majorly involved in those casualties. So, it is imperative two-wheeler riders are given protection against their life, pillion rider life, third party and vehicle itself. Insurance companies have really set themselves and offer coverage as long as 3 years they charge. Primarily the cover includes the legal liability that occurs in case of mishap such as injury, permanent injury or even death of a third party.
For risk associated with travel (Travel Insurance): Travel insurance covers the risk associated with trip cancellation, flight accident, medical expenses, lost luggage and other fatalities during the course of travel, insurance plan covers both domestic as well as international travel. It is important to have exhaustive travel policy that ensures the complete peace of mind and financial obligation remains bare minimum for the customer. The insurance policy should not limit itself onto the aforesaid factors or coverage; rather it should also offer coverage on areas such as loss of passport and other un-foreseen coverage too.
For risk associated with Home (Home insurance): Home insurance offers protection in the form of property insurance against damages such as loss from fire, natural calamities, burglary, valuable jewellery, explosion or any other form of mishap that may happen at the home. Therefore, home insurance coverage is absolute essential ensuring round the clock security alongside financial accountabilities arising from damage incurred by your house.A good home insurance policy is the cautious home owner’s best friend. Most importantly now a days this product is available right on the online shelves making it easier for customers to make purchases on click of a button.
Why you should purchase online insurance?
• Online reviews: - Internet has really evolved over the years, take for example now you can have access to almost instantaneous unbiased reviews, recommendation and suggestions which is almost impossible otherwise.
• Incomplete completion: - Many application forms have to go through the rejection either these are not filled completely or incorrect information is been entered inadvertently,this happens since, many customers are not aware of the clauses, features and return expected from the insurance policy. Digitalized documentation and form filling ensures time saving, error-free transaction and all the information related to policy is available right in front of you therefore, no confusion at all occurs in policy understanding.
• Flexibility: - As almost everything is being churned out by the customer himself, which ensure complete control over what is being submitted to the banks or companies. Customer can fill the application at their comfort. Thus, this ensures complete understanding at each step, they can choose from arsenal of policies which allows them to make the real time comparison and decision making.
• Security: - All the documentation that are taken from the customer in the form of application submission are stored in a secured environment which can be basis for further use as customer may need further services in their life span.
• Saves time: - Online application management saves lot of time as nearly all the transactions, status updates, application processes and checks are done in a step by step procedure which can be tracked too. In the process, customer saves lot of time which otherwise would have been spent in their bank branch, in the queue, figuring out whom to meet and then understanding the terms and condition..