What does an Insurance signify? An Insurance basically means a sound and fool-proof protection for any person or individual in case of his unfortunate demise. In such a case, the immediate family members or the next of kin of the deceased are provided with a substantial financial support for the remainder part of their life in exchange of the payment of a small amount of a premium made by the Policy holder. This is subject to the condition that the payment of the premium is made regularly for a stipulated period of time till the end of the policy. However, even if the policy holder is alive and well, he stands entitled to a substantial benefit of financial security immediately after the stipulated period of the Insurance Policy is over. This is all the more beneficial considering his retirement from service when he is in dire need of financial help. This financial help comes in at the right time and is available to him throughout his life time. In fact, Insurance is in fact an integral part of solicitation.
It would be pertinent to mention here that around three and half decades ago, the only Insurance Company in India available was through the Life Insurance Corporation of India or the L.I.C., which was a Government body under the Ministry of Finance. At that time, there was hardly any competition against this organization. Various other kinds of insurance covers were provided by a few other government organizations, such as, the General Insurance Corporation, National Insurance Corporation, etc. Thus, the general public was left with hardly any other option other than to go in for a Life Insurance through the Life Insurance Corporation or other kinds of insurances through government agencies offering insurance against vehicles, home insurance and a broad spectrum of insurances.
Over the last two decades or so that have lapsed and especially during the last decade, there has been a large-scale burgeoning of a large number of companies in the Private Sector that have emerged where the sole purpose is to offer insurances to individuals and organizations keeping their client's interests in mind offering them better benefits and amenities. Today, there is a plethora of insurance companies on the horizon who offer much more than the earlier companies could provide.
In today's scenario, Insurances are generally categorized under various heads:
Life Insurance
Vehicle Insurance
Medical Insurance
Home Insurance
Overseas Medical Insurance
Students Insurance
Accidental Insurance
These varied insurances offer a full-fledged cover to the individual or organizations against any unprecedented risks of losses or of lives. A large number of these insurance companies are struggling in an attempt to out-beat each other so that they attract a larger number of customers in their fold. The cut-throat competition amongst these private sector companies is so intense that each one of them is all out to throttle each other out of existence. These companies have also given rise to an equally large number of insurance brokers whose sale pitch and peripheral activities provide the individuals or companies with maximum bargains. The buyer of these insurance policies has a wide range of choices from where he can opt for a better bargain that would stand to their benefit.
Life Insurance is one of the most popular insurances of its kind. These insurances sell like hot cakes especially for individuals. The risk covers that these insurances provide to the policy holder are not only manifold but are beneficial in the long run. A Life Insurance is most beneficial for a person when he is in his youth and working, since when an insurance policy is taken up at an early stage, the risk cover is far longer and the maturity amount of the policy is high whereas the amount of premium is not only affordable, but is pretty low. Actually, even when though the amount of premium is rather low, the policy holder feels the pinch, but this discomfort is eliminated when towards the end of the policy period, the maturity amount covers it all.
There are however policies where a percentile part of the amount is refunded back to the policy holder at regular intervals which is the Money-back policy. Even this partial amount when received at regular intervals serves in good stead to the policy holder. Insurance companies offer a retirement cum pension policy where a person pays regularly his premium and towards the end of the term of the policy starts receiving a fixed amount of pension which holds good and provides financial support in his old age.
These days one of the most popular and in demand are the cash-less policies especially for hospitalization and vehicles.
A Vehicle Insurance is one of the primary requirements which a person must carry while purchasing a vehicle. It is extremely necessary taking into account, the enormously large number of fatal road accidents taking place in the dense traffic and the unavoidable damage caused to vehicles in the wake of these accidents.
The insurance cover for your vehicle after insurance includes the vehicle, the person who is driving as well as the person who has met with the accident with your vehicle. The entire cost for the damages is paid for by the Insurance company and therefore the policy holder does not undergo any loss of money. The repairs these days are exorbitant and prohibitive and to get a damaged vehicles involves a fortune. Under the cashless policy, a damaged vehicle can easily be repaired without the owner having to shed any cash rather the repair activity is taken care of by the insurance company. In fact, there are a large number of law enforcing that impose penalties and ensure that the person driving a vehicle mandatory goes in for a vehicle insurance. Besides, there are a large number of automobile dealer agencies that insist that vehicles be driven out of their showrooms only after they have been appropriately insured through an Insurance Company and therefore provide insurance covers on vehicles themselves.
Medical Insurance comprises of a full comprehensive cover for the individual as well as families against all unexpected illnesses or aggravation of diseases, especially where a person is required to be admitted to a hospital. With the escalation of cost of medical treatment and the consequences of a person going totally bankrupt, it is ideal that one goes in for a medical insurance without any second thought. In fact, these days there are a large number of companies both in the government sector as well in the private sector that offer cash-less insurance policies. One needs only to produce his identity proof and he would be admitted in the hospital as per the insurer's list and the treatment is started immediately without any amount to be paid by the insured person. It is the insurance company that takes care of the medical expenses of the patient. It would be pertinent to mention that a large number of companies in the private sector have also taken up hospitalization insurances for its employees. In such cases, the front-ending is done by the company and pays a consolidated premium to the insurance company after deducting a very nominal amount from their employees. These are tailor-made policies between the insurance companies and the private sector company. A floater type of medical scheme specially caters to the entire family of the employee though there may be some increase in the premium, but that is beneficial in the long run.
The House-holder policy is one of the major policies that a person is required to go in for. There is hardly any doubt that with the increasing cases of fire and arson as well as burglaries, it is imperative that one should go in for an insurance cover for the house, which is well-known as house-hold insurance policy. There is hardly any human control on natural calamities that may come upon all of a sudden and render casualties and irreparable losses. Under these circumstances it is always preferable to have a house-hold policy. In exchange of a small amount which is payable annually, you can get your house insured against all accidents, natural calamities as well as human actions.
Overseas Medical Insurance is an insurance cover where the traveller takes up this policy before leaving for abroad. The exorbitant and prohibitive cost of medical treatment in any foreign country can be totally devastating. The Overseas Medical insurance takes care of all your medical expenses for treatment whether the illness is major or minor. This kind of insurance, though normally taken up for a stipulated period of the stay of the traveller abroad can be extended before the expiry period of insurance. For a relatively small amount of premium, the coverage amount can be very high comparable to the anticipated expenses of the treatment abroad.
The Students Policy also takes care of the expenses of the student for pursuing further studies either in the country or in a foreign country. The parents of the child require to contribute a small amount of premium on a periodic basis and when the child comes to an age where large sums of money are required to be paid for higher studies.
The Accidental Insurance is of the utmost importance. With the phenomenal increase in traffic accidents taking place, this kind of insurance comes in very handy. This is especially so where the injuries sustained by those travelling in the vehicle are serious and need intensive care. For this kind of treatment, the costs are prohibitive and beyond an average person's means, no matter how much he may be earning. This insurance covers of not only the cost of the treatment in the hospital, but post hospitalization expenses.
There has been a sudden spurt of activity in the Insurance sector in the country over the past few years now. With a gamut of insurance policies available on the platter in this country of all types, it is not only mandatory, but also imperative that these be taken up to avoid unnecessary risks and costs leading to irreparable losses. Would it not be better to rest peacefully under the soft cushion of these policies and forget worrying about the future.
