An insurance protects you from any untoward incident and risks by managing your financial losses. As part of the policy, the insurance company pays for any losses that you bear due to an eventuality. It is an agreement between you and insurance companies, wherein, you pay the premium; and in return the company compensates for the unpleasant incident. An insurance can offer coverage for various things – life, health, home, car, etc.
Types of Insurance
An insurance is usually divided into two broad sections – life insurance and non-life insurance or general insurance. Life insurance is an agreement between the policyholder and the life insurance company, where the company pays a specific benefit amount to the family on his/her death in lieu of the premium paid by his/her to the company.
What is Life Insurance?
It is important to get all the life insurance information before deciding about the insurance company and the insurance plan to be bought. One should start with knowing various types of life insurance policies.
Types of Life Insurance
- Term insurance: One gets a death cover for a specific period of time. In case of sudden death in this duration, the company provides the decided amount to the beneficiary either as a lump sum or as a monthly or annual installment.
- Unit linked plan: It is a long-term plan offering joint coverage. It combines insurance and investment – a part of premium is used for coverage, while the rest is used in market fund investments, such as debts, equities, bonds, market funds, etc.
- Endowment plan: This long-term plan is a combination of insurance and savings. A part of the premium is used for coverage, while the remainder is invested by the insurance company. If the policy holder completes the policy term, he will get the maturity benefit amount.
- Money back plan: This plan is best suited for those who want regular returns for their investments. A calculated percentage of the assured money is paid to the policy owner at regular intervals.
- Whole life insurance: This plan provides lifetime coverage. Premiums are high and once the premium payment period is over, the policyholder can withdraw the amount.
- Child plan: This plan helps secure kids’ future. Through this, parents can raise funds for their children’s important events like higher education and marriage. In case of untimely death of child’s parents, the child will immediately get the payment.
- Retirement plan: Commonly known as pension plan or annuity, this is best for people who want to keep safe some good amount for retirement. The insured receives the payments either annually or as lump sum once he/she is 60 years of age. In case of untimely demise, the decided amount is paid to the beneficiary.
List of Life Insurance Companies
Here is a list of 24 life insurance companies in India. Except Life Insurance Corporation of India (LIC), all are private insurance companies. Most of these are collective endeavour between public/private sector banks and national/international insurance companies.
|Sr. No.||Insurance Provider||Claim Settlement Ratio (2016-17|
|3.||Bajaj Allianz Life||91.67%|
|4.||Bharti AXA Life||92.37%|
|6.||Canara HSBC Oriental Life||94.95%|
|8.||Edelweiss Tokio Life||93.29%|
|10.||Future Generali India||89.53%|
|11.||HDFC Standard Life||97.62%|
|12.||ICICI Prudential Life||96.68%|
|16.||Life Insurance Corporation||98.31%|
|23.||Star Union Daichi||84.05%|
What is General Insurance?
All kinds of insurance other than life come under general insurance, also called non-life insurance. These can be health, home, car, to name a few. This insurance provides protection against damage and loss of the valuables in our life. The coverage depends on the type of insurance taken.
Types of General Insurance
Health insurance: This insurance helps meet the soaring medical expenses. It provides coverage against any ailments and hospitalisation by compensating either in cashless form or through reimbursement. The coverage can be taken for individuals as well as family members.
Motor insurance: Various insurance companies provide insurance against risks to both private and commercial vehicles. These vehicles can be cars, two-wheeler, trucks and others. The insurance offers coverage against any loss or damage to the vehicle.
Home insurance: Comprehensive home insurance policies offer coverage against any damage to the house and its contents due to fire, theft and burglary.
Travel insurance: Travel insurance can be taken for both international and domestic travel. It covers the costs of all exigencies and untoward incidents related to travel and health.
Other types: There are other types of general insurance as well, such as crop, rural and commercial. These provide coverage against any risks related to these fields.
List of General Insurance Companies
|Sr. No.||Claim Settlement Ratio (2016-17||Insurance Provider|
|1.||91.26||New India Assurance|
|2.||92.23||Reliance General Insurance|
|3.||75.01||SBI General Insurance Company Ltd.|
|4.||112.11||Oriental Insurance Company|
|5.||72.32||Tata AIG General Insurance|
|6.||107.06||United India Insurance|
|7.||102.57||Shriram General Insurance Company Ltd|
|8.||70.91||Universal Sompo General Insurance|
|9.||72.32||TATA AIG General Insurance|
|10.||54.99||Apollo Munich Insurance|
|11.||76.90||HDFC ERGO general Insurance|
|12.||51.96||Max Bupa General Insurance|
|13.||97.25||National Insurance Company Limited|
|14.||76.88||Bharti AXA General Insurance|
|15.||——||Agriculture Insurance Company of India|
|16.||78.50||Bajaj Allianz General Income|
|17.||79.14||Liberty General Insurance|
|18.||68.97||Raheja QBE General Insurance Company Ltd- Raheja QBE|
|19.||60.51||Star Health and Allied Insurance|
|20.||78.13||Royal Sundaram General Insurance Co. Limited|
|21.||50.52||Religare Health Insurance|
|22.||—–||ECGC (Export Credit Guarantee Corporation of India)|
|23.||48.14||Cigna TTK Health Insurance Company Ltd.- Cigna TTk|
|24.||77.31||Future Generali India Insurance Company Ltd|
|25.||40.07||Cholamandalam MS General Insurance|
|26.||81.96||IFFCO Tokio General Insurance Company Limited|