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Home   Tutorials   Insurance  
What is insurance?
Insurance is the only way to protect the economic value of assets and life. It is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance. A policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.
What is an asset?
HomeEarning Power
Why should you have insurance?
  • Assets can be destroyed by fire, flood, earth quake, etc. Insurance protects the assets.
  • Insurance covers the risk. A risk is the possibility of loss or damage, that may or may not happen. General insurance covers such contingencies that may happen.
  • If there were no uncertainties, there would be no need for insurance.
  • Life of a person is an income generating asset. In case of untimely death of he person, the family is protected by life insurance cover. For the post-retirement period, life insurance helps to ensures a lump sum payment or a regular income.
How will insurance help?
  • Insurance takes care of the unexpected
  • Family is protected from the loss of earnings in case of a crisis/calamity. Insurance takes the financial burden off.
  • The best way to save regularly- at the best rates.
  • Tax free payout on maturity acts as a ‘nest-egg’ for retirement.
  • Loans possible on certain life insurance policies.
  • Tax saving benefits under section 88 of I.T. Act.
  • After only a single premium, you are covered for the full benefit.
  • As a “locked-in savings”, Life Insurance gives you the highest returns.
  • Life Insurance policy can act as collateral when taking a loan.
  • For only a small sum each year, the Insurance company takes the risk.
What kinds of risks are covered under general insurance?
FireBuildings, machinery,furniture,fittings, stocks, etc. Loss of net profit also covered.
MarineLarge cargo/passenger vessels. Cargo handling also covered.
FidelityBreach of trust by employees.
Personal AccidentAccident to human lives.
MedicalMedical expenses incurred during illness/hospitalization.
General insurance ~ additional products
  • Shopkeeper Insurance
  • Flood Insurance
  • Travel Insurance
  • Baggage Insurance
  • Engineering Insurance
  • Household Goods Insurance
  • Earthquake Insurance
Insurance for rural markets
  • Crop Insurance
  • Cattle Insurance
  • Pump Insurance
  • Lift Irrigation Insurance
  • Horticulture/Plantation Insurance
Life insurance covers
FamilyFinancial protection on death of an earning member.
ChildrenSavings for education/marriage/start-in life.
Old AgeRetirement income.
Special NeedsMedical treatment/Loss of income due to disability(accidents/illness).
Life insurance
Life PolicyHas two components
1. Risk Cover- Benefit payable in the event of death
2. Savings- Benefit payable on maturity
Term policyOnly risk cover for a specific period.
Endowment policySurvival benefit( for a specified period)
Insurance- an asset everyone should have
Our life is uncertain
  • The only certainty is death- everyone dies
  • The question is when?
Our assets are open to risks of all types
  • Natural & Man made.
So, insurance is needed to think ahead & be prepared financially
  • For old age.
  • For sudden death.
  • For assets & business.