About Insurance Companies in India
Insurance is a key tool for securing yourself financially from life's uncertainties. It provides peace of mind for health, finances, and family security. To enjoy the coverage and benefits from insurance, you need to pay a certain amount annually which is called premium.
There has been a significant increase in awareness and growth of insurance in India over the years, especially due to events like the COVID-19 pandemic. High claim ratios from insurers is another reason why more people are encouraged to opt for insurance.
There are various insurance providers in India, including general and life insurance companies, offering different policies to suit various budgets and needs. Let's explore the types of insurance companies and plans available.
Select an Insurance Company of Your Choice to See the Best Policies
What Are the Types of General Insurance Policies?
What is Health Insurance?
Health insurance offers an individual financial security for healthcare costs, covering treatments and hospitalization due to illnesses or injuries.
Predicting future health needs is impossible. Health crises can happen unexpectedly, making good health insurance crucial. Rising healthcare costs make comprehensive coverage essential for handling emergencies. Additional riders can enhance policy benefits.
Top health insurance companies in India offer various plans to cover medical needs in an affordable manner. Some of the key features include cashless hospitalization, pre/post-hospitalization expenses, ambulance charges, and daily cash allowances.
Types of health insurance plans in India include individual plans, family floater plans, and comprehensive coverage.
What is Life Insurance?
Life insurance is essentially a contract where the policyholder pays premiums for their nominee to receive compensation in case of an untimely demise of the policyholder. It provides financial support to the nominee of the insured person upon the insured's passing away or after a specified period. Term life insurance ensures financial security for the insured's family by paying a premium for a death benefit in case of the insured’s sudden death during the policy's term.
What is General insurance?
A General Insurance is the one which does not fall under the realm of life insurance. General insurance companies in India offer a range of insurances in different fields and different products other than life insurance.
The various types of General insurance products/policies available are:
- Motor insurance
- Health insurance
- Home insurance
- Marine insurance
- Travel insurance, etc.
With the help of a general insurance policy, the insured individuals can get coverage or compensation for the damages incurred in a particular field of insurance that the policy is offering protection for. Unlike in life insurance, the duration of general insurance doesn’t extend for a lifetime. Further, most products of general insurance companies are available with yearly contracts where the insured needs to renew the policy annually, while there are other plans that may be for short as well as long duration.
What is Car Insurance?
Car insurance plans protect vehicles from various damages, losses, and thefts during road emergencies. There are two main types: third-party insurance covers damages to others, as required by law, while comprehensive insurance covers both third-party damages and damages to your own car, including those from accidents and natural disasters.
Buying car insurance online is essential for covering third-party injuries and death as well as property damages as mandated by the Motor Vehicle Act. Comprehensive plans and standalone own-damage plans also cover damages to your own car, including accidents, theft, and natural disasters.
What is Bike Insurance?
Bike insurance or two-wheeler insurance, required by law in India, ensures that bike owners can ride without any hassles. This policy shields them from financial losses due to accidents or collisions. As per the Indian Motor Vehicle Act, every bike owner must have a third-party cover. This insurance, under general insurance, covers damages from accidents, protecting riders and bikes. You can easily get bike insurance online from authorized providers in India.
Difference Between Various Insurance Plans (Life Insurance vs Health Insurance)
Feature |
Life Insurance |
Health Insurance |
|---|---|---|
Description |
Life Insurance pays a set amount to the insured person or their nominee if the insured person passes away, following the policy's terms.
|
Health insurance is a type of General Insurance policy that covers medical expenses for policyholders and their families. It includes benefits like cashless hospital visits or reimbursing costs from illness or emergencies.
|
Tenure of Policy |
This is a long-term policy
|
These are short term policies with one year coverage in most cases
|
Claim |
Available as death benefit
|
Available either as cashless or reimbursement claims
|
Premium |
To be paid all through the year
|
Paid annually in most cases as a lump sum amount
|
Insurance or Investment plan |
Termed as investment
|
Covers policyholders' medical expenses during emergencies and illnesses.
|
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If you have any questions on how to choose the best insurance plan, you can connect with our IRDAI certified insurance advisors.
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