What are the 5 main types of insurance?

By | August 30, 2022

 life insurance

 Life insurance is a protection against monetary loss due to the death of the insured. The insurance company promises to pay a certain sum of money at the end of a specified period or on the death of the insured. A person who wants the cover of life insurance has to pay the premium to the insurance provider.

 financial security

 Financial security is available to you and your family in case you are unable to earn a living due to your death, illness or physical disability. Additionally, you can use life insurance as a financial support for your old age, an investment in your children’s education, and a tax-saving investment. It is better if you get life insurance at a young age. The premium amount increases when you get life insurance at an older age.

 Select the right insurance plan

 You should choose the right insurance plan after analyzing your needs. Your priority may be on the basis of financial security in case of death, long-term growth of your wealth, savings or post-retirement pension. You can also consult a financial advisor who will guide you in choosing the right life insurance plan. There is no fixed rule, but generally the life cover amount can be 15 to 20 times your annual income.


 Nomination means to nominate a person to receive the benefits of life insurance in the event of your death. While taking a life insurance policy, you have to give complete details about the nominee. The policy holder can change the nominee during his/her lifetime. On the other hand, assignment of an insurance policy means the transfer of all rights and liabilities of the insurance policy in the name of the assignee.

Protection of policy holder’s interest by IRDA

 The Insurance Regulatory Development Authority (IRDA) is a statutory body established to protect the interests of policy holders and to regulate and promote the growth of the insurance industry.  As per IRDA, the insurance company should settle any claim within 30 days from the date of fulfillment of all the necessary conditions on the part of the claimant.  If any further verification is required for settlement of claim, the entire process should be completed within 6 months of receipt of written memorandum of claim by the company.  For any settlement which takes more than 6 months, the company will have to pay interest on the claim amoun

 If the insurance premium is not paid within the relief period, your life insurance policy will stand cancelled.  In case of cancellation of the policy, all benefits received by you will be forfeite

 auto mobile insuran

 All motor vehicles have to be insured.  Motor-vehicle insurance provides protection against any damage or damage caused to the vehicle or its accessories.  Damage or loss can be due to any natural calamity such as fire, flood or non-natural calamity such as theft and riot.  Auto mobile insurance also protects you from the statutory liability of third parties in case of damage caused by an accident

no-claim bonus

 No-Claim Bonus means the discount given if the policy holder does not submit any claim in any year. The policy holder is entitled to No-claim Bonus (NCB) at the time of renewal of the policy. The NCB rate remains the same provided you are able to show that you are entitled to get NCB from the previous auto mobile insurance provider.

 All property or bodily harm or damage caused to self or to third parties must be reported to the appropriate jurisdictional police station. If the insurance company has provided non-cash facility, then you will not get compensation in cash but your vehicle will be repaired. Although insurance companies have tie-ups with some vehicle vendors, and you can avail this facility only from there.

 If your vehicle is stolen then you should first go to the appropriate jurisdictional police station and register an FIR. The insurance company should submit the memorandum and submit the insurance claim.

 health insurance

 Health insurance is a protection against expenditure on your medical treatment. The limit of insurance cover is up to the sum insured only. Health treatment can be extremely expensive. Health insurance provides compensation for the cost of health treatment if the treatment is done during the period of insurance. Health insurance policies also offer tax exemption. 10,000 as per section 80D of the Income Tax Act. discount is available. Senior citizens can apply for taxable income up to a maximum of Rs 15,000. can get a discount. Health insurance companies provide insurance cover to a person till the age of 50 years.

Hospital treatment without cash payment

 These days health insurance companies are incorporating unique concepts into their services. One of them is ‘treatment in hospital without cash payment’. Under this facility the person does not have to pay the hospital bills; The bill is paid directly by the insurance company. However, this facility is available only in those hospitals which have an agreement with the insurance company.


 There are health insurance plans in the market that provide insurance cover to all the members of your family. You get health protection for your entire family. Some banks offer a discount of 5% on the premium for the next year.

 This means that hospitalization expenses incurred during the first 30 days of the insurance period are not covered under insurance cover. However, damage caused by an accident is covered under it. The diseases which are pre-insured are also not covered under it.

travel insurance

 Travel insurance is a plan that provides protection against financial loss during your overseas travel. You may travel abroad for various purposes like for vacation, education or any important business meeting of yours. During this time, foreign travel insurance is available to give you insurance cover. This insurance provides you financial protection in case of loss of your luggage, medical emergency during travel or accident.

 The cover of travel insurance is available to you from the day specified in the policy or from the day you commence your foreign travel or the actual contracted departure date specified in the policy, whichever is later. Travel insurance is valid till the end of the insurance period or the day the insured person returns and landed in India, whichever is earlier. However, many insurance companies extend the benefits of the insurance policy for some time if the insured travel is delayed due to any reason.

 You can insure for one trip or for multiple trips. If you have taken a single trip policy, then you will get its protection only for a certain period. If you have taken a multiple trip policy then you will get its cover for all your trips during the term of the insurance. A TPA is a third party administrator who provides essential information regarding medical services and claims settlement without cash payment.

 If you are suffering from any disease during your foreign travel, then you can get the treatment of that disease continuously even after returning to your country. It depends on the advice given by the Third Party Administrator (TPA). If the TPA advises, the Company will continue to pay the medical expenses of the insured on his return to his home country. The maximum period for continuation of such therapy will vary from company to company. Some plans are for those students who go for study abroad without medical cover (medical insurance).

home insurance

 Home insurance is a protection that you get in case of damage to your home due to natural or man-made calamity. The structure of the house and your belongings inside it – both are insurable. Home insurance policy covers all natural and man-made calamities like fire, earthquake, lightning, flood, riot, strike, malicious damage, theft, terrorism etc.

 The sum insured for house structure can be calculated by multiplying the construction area of ​​your house by the prevailing construction rate.

 For indoor items, the prices of all your items inside the house like furniture, clothes, utensils, jewelry etc. are fixed at the market value. Usually your home is insured and not the things inside it. You can get complete insurance cover for the items in your home. Under home insurance, buildings used for commercial purposes are not insured.

 You have to fill and submit the claim form to the insurance company indicating the nature and extent of the loss along with other documents. The documents include FIR report, fire brigade report, assessment of repair expenses in case of damage, etc. Homeowner’s home insurance policy covers the actual building and not the contents of the house.

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