Insurance In India

Insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty. It may be described as a social device to reduce or eliminate risk of loss to life and property.Insurance contributes a lot to the general economic growth of the society by provides stability to the functioning of process. The insurance industries develop financial institutions and reduce uncertainties by improving financial resources.

There is a wide range of insurance policies, each aimed at safeguarding certain aspects of your health or assets.Broadly, there are 8 types of insurance, namely:

  • Life Insurance
  • Motor insurance
  • Health insurance
  • Travel insurance
  • Property insurance
  • Mobile insurance
  • Cycle insurance
  • Bite-size insurance

Simply knowing the various insurance policies does not help. Instead, you must know how each of these plans work.

General insurance meaning and importance

A general insurance policy is essentially a policy that protects your financial well-being. It is a special type of policy that helps secure your many properties – whether it is the home you live in and possessions inside it, whether it is your priced vehicles or the most important thing of all; your health. This is a policy that allows you the reap various benefits of many types of insurance – home, motor vehicles, health, travel, and so on. Now let’s find out why it is essential that you invest in a general insurance policy.

Your financial interests are protected:

Another general insurance importance is that it protects your financial interests. Say your house is damaged due to a cyclone, your car is stolen or you are hospitalised due to an accident; in the absence of insurance there is not much that you can do. You have to bear the financial loss arising from these situations. But if you have purchased a good insurance policy, you can rest assured that you will receive the assured sums as per the terms and conditions of the policy.

Top 10 life insurance companies in India

  • Life Insurance Corporation of India
  • ICICI Prudential Life Insurance Co Ltd
  • Bajaj Allianz Life Insurance Co Ltd
  • SBI Life Insurance Co Ltd
  • Reliance Life Insurance Co Ltd
  • HDFC Standard Life Insurance Co Ltd
  • Birla Sun Life Insurance Co Ltd
  • Max New York Life Insurance Co Ltd
  • Kotak Mahindra Old Mutual Life Insurance Ltd
  • Aviva Life Insurance Company India Ltd

Final word:

The importance of general insurance in India cannot be understated but it is crucial that you understand the basic difference between the special and general insurance policies. You would be paying smaller amount premiums in the case of general insurance policies whereas premiums for specific insurances policies are separate and could be on the higher side. However, you should note that the general insurance policy may also offer lesser coverage as opposed to a special one.

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