Types Of Insurance Policies In India

insurance

Hello Friends, today I will share my views on Types of Insurance policies we have in our country, & I am sure you will certainly get to learn more on this topic & will share your views & reviews.

Friends as we all know, Insurance is an arrangement in which you pay money to a company, and they pay money to you if something unpleasant happens to you.

In simple words, Insurance is a means of protection from financial loss. An entity which provides insurance is called the insurer and on other hands, who buys insurance is known as Insurance holder/ Insured.

Types Of Insurance

Now come to the point, there are two types of Insurance i.e., Life Insurance & General Insurance. Apart from Private Insurance Companies the only Government company that covers Life Insurance is LIC of India

Life Insurance is a contract between an insurance policy holder & an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. This is of 2 types, i.e.; Endowment Policy & Term Insurance Policy.

Life Insurance is a form of insurance in which a person makes regular payments to an insurance company, in return for a sum of money to be paid to them after a period of time, or to their family if they die.

However, in this article, I will be talking about General Insurance, especially Marine Cargo Insurance.

General Insurance Policy includes Motor Insurance, Fire Insurance, House Insurance, Building Insurance, Shop Insurance, Factory Insurance, Health Insurance, Household Items insurance, Warehouse Insurance, Forex Insurance, Marine Cargo Insurance.

All the general insurance policies are valid for one year only & can be renewed before or on the due date; before the current policy expires. Different General Insurance policies cover different risks as per terms & conditions/clauses mentioned in the Insurance Policy Documents.

As already told that I will be discussing especially Marine Cargo Policy, therefore, I must tell you that this policy is also called House Hold Shifting Insurance Policy & this is of 2 types:

  • Transit Insurance Policy (Clause B): Generally speaking, Transit Insurance policy only covers Fire & Accidental Risk, i.e.; if the goods are damaged due to Fire/accident takes place to the vehicle carrying the goods (household goods), in that case only the Insurance Claim will be entertained.
  • All Risk Policy (Clause A): In addition to the risk mentioned in the Transit Insurance, this also covers any kind of damage to the good/goods right from Loading until Unloading.

Both the above-mentioned insurances are valid from the date of Insurance till the date of Voyage (i.e. till the material is delivered).

Hereby, it must be confirmed that different Insurance companies have different risk/s covered under these policies, however; majorly the risks mentioned are covered, still, the customers are advised to go through the policy documents carefully.

Friends, I must confirm that as this a blog I have written & not a book (hahaha) therefore, in case you want to know about any other kind of Insurance/s in detail, please do write to me (in comments), it will always be a great honor to write for you all.

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