 Broadly insurance can be classified in two categories: First - Life Insurance which matures in event of death of the insured/policyholder. On occurrence of such an event the insurance company pays a sum of money assured to the nominee/beneficiary (person nominated by the policyholder). Life Insurances are of two types: Traditional Plans - which contain Endowment Plan , Cash Back Plan, Term Plan , (Term Life Insurance) and Whole life policy. And Unit-linked Insurance Plans - are of 4 types - Endowment cum Ulips, Children Plan , Retirement Plan or Pension plan and investment/saving plans. Second - General insurance. All insurance policies other than life insurance policies come under general insurance segmentation. (Also known as non-life insurance policies). These policies include Home Insurance, Auto Insurance, Travel Insurance, Marine Insurance, Theft Insurance, Office insurance and Health insurance Health insurance is most acquired policy in general insurance segment. Health insurances are of 3 types - Comprehensive Plan - which include Mediclaim and Fixed benefits plan, Accidental Insurance and Critical Care plan . |
Risks coverage:
Driving your vehicle without Motor Insurance is a legal offence & you may be fined for it as it is mandatory to have Motor Insurance. There are two variants of Motor Insurance first is the Liability Insurance (also called Third Party Policy) covering bodily injury to the third party & the second policy is Comprehensive Policy which covers loss to insured’s vehicle in addition to the Third Party insurance. It is mandatory to acquire the Third Party Insurance.
1). Damage to vehicle: Motor Insurance covers you against any loss or damage causing by the following:
Natural Calamities:
Fire, explosion, self ignition or lightning
Earthquake (fire and shock damage)
Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, and frost.
Landslide and rockslide.
Man made Calamities:
Burglary housebreaking or theft,
Riot and strike, malicious act, and
terrorist activity
Whilst in transit by road, rail, inland-waterway, lift, elevator or air
2). Third Party Liability: It covers any damage or loss to the third party in terms of injury or damage caused to the property.
3). Add on Covers: You can extend your policy by paying the extra premium & covering the following risks:
Damage to the Electrical / Electronic fittings not part of standard equipment of the vehicle such as stereos, fans, air-conditioners etc.
Damage to the CNG/LPG Fuel Kit System
Personal accident cover under private car policies for passengers & paid driver
Legal liability to employees while traveling or driving (not as paid driver)
Benefits
No Claim Bonus:It is a kind of discount given on the renewal of the policy when the insured doesn’t make claim in the earlier year which is given on the own damage component of the premium. If the insured makes the claim then the No Claim Bonus will be zero for the next renewal. This discount could be as high as 50%.
No Claim Bonus Slab:
You will get 20% discount (NCB) for not making claims in the first year; 25% in the next second year, 35% in the third year, 45% in the fourth year & it exceeds to 50% in the fifth year for not making claims.
Get discounts on premium in the following cases:-
1). The insured will get discounts on the premium paid when he/she will choose for Voluntary Excess in addition to Compulsory Excess. The Excess is defined amount of loss which the insured has to bear in every claim he/she makes.
2). The insured who s the member of Automobile Association in India gets discount to 5% on premium.
3). The insured also gets a discount if there is an anti theft device fitted to their vehicles & which are approved by Automobile Research Association of India (ARAI). To list out the anti theft devices eligible for premium discounts, the insured must check with various insurance companies.
