People constantly encounter various risks in life, which could result in large financial losses. It is imperative to be adequately prepared to manage these risks so that individuals and their family are at peace.
Why should one insure?
An insurance policy is very important in any individuals financial planning. Uncertain events in the future could bring about financial losses to both assets and to health. Having insurance provides a protection against these losses.
Scope of General Insurance
Insurance that covers motor, accident, health, travel and business come under the scope of General Insurance. It covers perils such as, fire or theft of property, damage or loss of vehicle, hospitalization, surgery and medical expenses, and shop or business losses. The law too requires that every individual take a third party insurance cover if he possesses a vehicle, to compensate for third party loss.
Health and Medical Insurance
Health and Medical Insurance policies cover the expenses of illness, surgery or hospitalization. It reduces tensions related to medical expenses and guarantees peace of mind. Various plans are offered under this insurance such as comprehensive health insurance, Critical Illness Plan, and Hospitalisation Plan. The Comprehensive Health Insurance plan covers complete health benefits through hospitalisation. They also offer benefits for other health care expenses. Hospitalisation plans provide cover for only hospital expenses. The Critical Illness plan covers various critical ailments such as kidney failure, heart attack, stroke and organ transplants.
Personal Accident Insurance
One of the most uncertain events that could occur is accidents. An insurance coverage in this aspect is vital to compensate for losses due to health care expenses, and for disruption in income, in case of any disability. Personal accident insurance coverage is available, as either a stand-alone policy or as a rider with a life insurance policy. The policy covers external bodily injuries due to an accident along with four contingencies, death, permanent total disability, permanent partial disability and temporary total disability. As a rider with life insurance policies, accident covers are generally offered as 30 percent of sum assured and the coverage ends once the life cover ends around 65 yrs of age.
Losses occurring while travelling either internationally or domestically are covered under Travel Insurance. The scope of this insurance is protection against damage or theft of baggage, cash or belongings, losses due to delays in departure, or cancellations, medical expenses and death due to accidents during travel. An international medical insurance covers medical emergencies away from home, securing individuals against unforeseen contingencies on an overseas trip.
A property like a home is the most valued asset of any individual. Protecting it against perils like fire, lightening or damage is of utmost importance as the loss associated with it is beyond compare. A property insurance policy reduces the financial loss significantly by covering events like fire, burglary of personal belongings such as jewellery, clothes, furniture, utensils and durables, floods and cyclones, lightening strike and earthquakes. In recent times optional cover against terrorism are also under offer.
A Motor Insurance is a compulsory insurance mandated by law, and includes trucks, automobiles, motorcycle, aircraft and other motorized transport. It provides cover for damage caused by fire, floods, theft or earthquake. It also covers accidental damage of vehicle, injury and death of both policy owner as well as affected third party.
The policy is offered either as a comprehensive policy or only a third party coverage. The comprehensive policy covers damage and loss to the owner and his vehicle, and also for the third party. With third party insurance alone, the cover provides security for damages caused to third party only.
Shopkeeper’s Insurance, covers assets and property of business, along with equipment and stock-in-trade. The damage or loss caused to business assets due to burglary or forgery, loss of cash in transit and other calamities are covered under this policy.
Insure For a Secure Future
The basis of insurance is to protect ones hard earned assets against any uncertainities. The law too mandates insurance so that in case of loss to another person, he is compensated. A person owning a car or other vehicle must take an auto insurance ensuring cover for himself as well as any third party. Insurance provides for our dependents’ well being and health. Policies like personal accident provide cover in course of unexpected events, thus easing the pressures on family.
Having an insurance policy is a security for our future, protecting family against illness, death, disability or loss of property. With changes in economy and our life styles, the impact of a financial loss could be immense, along with the human trauma of physical ailment, disability and loss. Insurance helps to restore ones’ previous financial position, thereby reducing the stress due to financial loss. It provides security for our today and tomorrow, thereby ensuring peace of mind for ourselves and our family.