Types of Insurance Policies in India and Benefits They Offer

Insurance policy is a formal document which is drawn up between an insurance provider or company and the insured, wherein the insurer promises to bear the loss of the insured in return for an amount of money paid as the insurance premium. In life, there can be many unforeseen incidents which can throw our life out of track, and if you want peace of mind, insurance has to be considered.

There are many insurance providers here, at the helm of them is definitely LIC, but many other Insurance companies are making their presence felt in this industry. Among them, one emergent company is United India Insurance.

Life Insurance: Why do you need it?

Insurance Policies in IndiaLife insurance secures not only the present but also the future of the family. This insurance is provided by many companies which are either owned privately or by the government. Either way, consumers are free to choose the policies which appeal to them depending on the sum assured, period of coverage and the amount of money to be paid as premium.

These three factors must be considered if you want a policy that does justice to your time and money. In case, you do not understand which policy is suitable for you, you must seek out the advice and suggestions of an insurance agent who is fluent with the insurance policies.

Medical insurance: Not all a Bitter Pill

Medical insurance is offered sometimes by companies to employees, or can also be subscribed to by private individuals. It provides coverage of hospital stays, diagnostic tests, hospital visits and operation costs by payment of premium. Like in the case of Life insurance, medical insurance is also provided by private companies and government owned companies, where sometimes these said companies have tie-ups with certain hospitals or nursing homes. Barring certain incurable diseases, medical insurance is a safe option for people who have aged parents or children in their families who are susceptible to diseases. It is often said that ‘health is wealth’, and a cleverly taken out medical insurance proves just that.

Auto Insurance: To keep the engine running

What happens when that fancy car of yours or that minidor or matador the man-friday of your business suffers a blow? Auto insurance protects you and your business in such situations. Auto insurance ensures that you get compensation from the insurance company in the wake of an accident which would enable you to either repair the vehicle or buy a new one. So if you are eager to spend money on your favorite car, be a little more eager to take out a well thought over auto insurance to protect that sweet little toy of yours. But remember even if you are insured, a little bit of safe driving never hurt anybody.

Fire Insurance: The dos and the don’ts

In India, fire insurance is regulated by a body known as ’All India Fire Tariff’ and they lay down the rules and regulations for coverage. In our country, this policy has been renamed ‘Standard Fire and Special Perils Policy’. In this policy, the risks faced by houses, offices, shops, hospitals are covered. However, if the cause of fire is war, civil war, nuclear activity or over running of electrical appliances, it is excluded from this policy. The policy covers losses suffered due to fire, lightning, explosion, terrorism, riots, strikes, storms, missile testing and bush fire. It is said that fire can be a master and a slave, it depends how you use it.

It is often said that ‘insurance is the subject matter of solicitation’; there is ample truth in this sentence. Before taking out an insurance policy, you definitely should understand the whats and the hows of the policy and after scrutinizing it only then should you sign on the dotted line. Remember if you take up the right policy it can ensure a life time of peace or else a lifetime of agony.