Insurance Policies Every Human-being Must Have

What is Insurance?

Insurance is a convention between the insurer (the insurance service provider) and insured (the insurance policyholder). In this, the insurer commences to pay the insured a fixed amount (called premium) for handling of certain happenings such as vehicle damage/loss, health issues, problems in travelling to other location etc. Through insurance, every policyholder gets compensation of the actual loss when it takes place due to the risk insured.

Here is a list of Insurance policies; every human-being should consider in his/her life:

1)  Long-Term Disability Insurance

Keeping an attitude that “nothing will happen to me or my family” is simply not a good idea. Instead, choosing Long-Term Disability Insurance to continue your smooth lifestyle is a smart decision.

This insurance takes care of a person from loss of income in order to continue same living lifestyle, if policyholder is unable to work due to illness, injury, or accident for a long period of time.

2)  Life Insurance

The insurance gives financial protection coverage for those who are dependent on the person. This must-have policy secures parents, spouse, children or other loved ones financially, if a person has met with any disaster term (for example Death).

Life Insurance is the policy that will replace the income and give complete support in case of unfortunate demise.

Get a detailed list of IRDA approved Life insurers, contact person and number.

3)  Motor Insurance

Motor insurance is also required in most cases. This is what a person should not skip. If a person has met with an accident, and is injured or their property is damaged, person could be a subject to a lawsuit that could possibly cost everything you own.

4)  Health Insurance

Now-a-days, high cost of hospitality care is the reason enough to buy health insurance as essential.  A simple visit of the doctor at home results in a hefty bill. More serious health issues charging hospital stay will cost a major financial loss. Even operations require five-figure bucks.
Health Insurance takes care of such cases mentioned above.

5)  Travel Insurance

Traveling is the normal thing for everyone. For official purpose or some other reason, person has to move repeatedly. While travelling, unwanted tragedy such as checked-in baggage loss, medical emergencies, trip cancellation or some interruption may cause major issues. Travel insurance secures us from such problems.

Buy Policy carefully

In market, various types of insurance policy are available having different advantages, features and prices.  Add-ons are also available with each policy plan. One should buy carefully.

It is advisable to read the policy plan and contact insurance agent to be certain that you understand the coverage and the cost. Make sure that the policy you are purchasing fulfils your requirement and don’t sign on the papers until you are satisfied with your plan.

All You Need to Know about Motor Insurance?

To own a Car for better convenience is one of the big investments of everyone’s life and definitely it costs huge amount of bucks. While owning a Two Wheeler is the first choice of most of the Indians. Its easy-to-drive and easy-to-handle features make it very popular among the teenagers as well. So, the security of the Vehicle is a must-have responsibility and a major concern for every vehicle holder.

According to the Motor Vehicle Act, 1988 “Driving a motor vehicle without insurance in a public place is a punishable offence.”

So the question comes “how to secure own vehicle from any damage or loss?” The answer is Motor Insurance.

What Motor Insurance is:

The term “Motor Insurance” gives protection to the vehicle holder to cover against:

1)    Losses or damages to the owner’s vehicle due to any unfortunate and unforeseen event and

2)    Pays for any TPL (Third Party Liability) considered as per law against the owner of the vehicle.

Types of Motor Insurance:

1)    Comprehensive Policy Plan:

       This policy covers against Third Party Liability, losses, damages to the vehicle and its owner.

2)    Liability only policy Plan:

       This policy covers only against damages occurred from Third Party action.

What Motor Insurance covers:

Comprehensive Motor Insurance policy covers following:

1)    Earthquake

2)    Land/Rock slide

3)    Terrorism Acts

4)    Fire, Detonation, Striking, Self-Ignition

5)    Theft

6)    Malicious Act

7)    Burglary/Housebreaking

8)    Flood, frost, cyclone, hailstorm, tempest, storm, whirlwind

9)    Riot, strike

10)  Accidental external means

11)  While in Transit by Rail/Road, Inland Waterways, Lift, Elevator or Air

On what basis Motor Insurance is calculated?

1)    For Own Damage:

Coverage on Motor Insurance Policy for own damage is calculated on the basis of the concept known as Insured’s Declared Value. The value, which is decided on the basis of the Manufacturer’s present value and depreciation rate based on the age of the vehicle.

2)    For Third Party Damage:

Coverage on Motor Insurance Policy for third-party damage is calculated as per the Motor Vehicle Act 1988. In this cover, Compulsory Personal Accident cover for owner-driver is also included. This coverage policy can also be extended to cover other risks such as Personal Accident to occupants of vehicle, Workmen’s Compensation to Driver etc.

What Motor Insurance excludes:

Following are the terms excluded under the Motor Insurance Policy:

1)    The policy is not considered for those, who are Not Having a Valid Driving License

2)    Breakdowns due to Electrical or Mechanical happening activity

3)    Accident has been done beyond the Geographical limits

4)    Under Drugs/ Alcoholic liquor Influence

5)    Vehicle is used for any illegal purpose

To know more about IRDAI Guideline for Motor Insurance, visit IRDAI website