When you do medical insurance, the insurance company covers the treatment costs for the disease.
Insurance is an effective weapon that combines future losses. We do not know what happens tomorrow. Therefore, we are trying to deal with the loss that can be addressed through insurance policy in the future.
Insurance refers to protection against risk. If the insurance company maintains a person, the insurance company compensates for financial losses due to this person.
Similarly, if an insurance company purchases insurance for cars, houses, smartphones, etc., in the event of a breakdown, damage, loss, or damage to this product, the insurance company pays compensation to the owner according to predetermined conditions. .
Insurance is actually a contract between an insurance company and the policyholder. Under this contract, the insurance company receives a certain amount (premium) from the insured according to the policy and pays compensation to the insured or the company in case of loss.
How many types of insurance are there?
Generally, there are two types of insurance:
- Life Insurance
- General Insurance
Life Insurance is the insurance for life of a person is insured.
1. Life Insurance
Life insurance means that on the death of the person buying the insurance policy, his dependent gets compensation from the insurance company.
If the head of the family dies untimely, it becomes difficult to run the household expenses. It is necessary to take a life insurance policy to protect the wife/children/parents etc. of the head of the family from the financial crisis. In financial planning, first of all a person is suggested to buy a life insurance policy.
2. General insurance
General insurance includes all vehicles, houses, animals, crops, health insurance etc.
Home Insurance:
If you insure your house with a general insurance company, then your home is protected in this. After buying an insurance policy, if there is any kind of damage to your house, then the insurance company gives the damages.
Coverage against any damage to your home is included in this insurance policy. The damage caused by natural calamity to the house includes damage due to fire, earthquake, lightning, flood etc. Artificial disaster includes damage to the house due to theft, fire, fighting-riots etc.
Motor Insurance:
In India, it is very important to insure any vehicle plying on the road according to the law. If you drive your vehicle on the road without insuring it, then the traffic police can fine you.
According to the motor or vehicle insurance policy, the insurance company gives compensation for any damage caused to the vehicle. If your vehicle is stolen or due to an accident, then a vehicle insurance policy can help you a lot.
You get the most benefit of a vehicle insurance policy when your vehicle has caused injury or death to a person. It is covered under Third Party Insurance. If you also have a two wheeler / three wheeler or car, then it must be insured.
Health Insurance:
Nowadays the cost of treatment is increasing very fast. On taking health insurance, the insurance company covers the cost of treatment in case of illness.
Under the health insurance policy, the insurance company pays the amount spent on the treatment of any kind of disease. The limit of expenditure on any illness depends on your health insurance policy.
Travel Insurance:
Travel insurance protects against loss during a trip. If a person goes abroad for some work or for travel and he gets hurt or the goods are lost, then the insurance company gives him compensation. Travel insurance policy is valid from the beginning of your journey till the end of your journey. Different insurance companies may have different conditions for travel insurance policies.
Crop Insurance:
According to the existing rules, it is necessary for every farmer who has taken an agricultural loan to buy crop insurance. Under the crop insurance policy, in case of any damage to the crop, the insurance company gives compensation to the farmer.
Under the crop insurance policy, compensation is given by the insurance company in case of crop failure due to fire, flood or due to any disease.
Due to the strict conditions of the crop insurance policy and not getting compensation according to the cost, there is not much enthusiasm among the farmers about crop insurance.
In fact, in order to give compensation in case of crop failure, insurance companies survey all the fields around that farm and compensation is given only when the crop of most of the farmers is damaged.
Business Liability Insurance:
Business Liability Insurance is actually to cover the loss caused to the customer by the work of a company or any product. In such a situation, the entire cost of the penalty and legal proceedings on the company has to be borne by the insurance company doing the Liability Insurance.
