Generally, an insurance is a contract between the company and the policy holder, according to which, against a sum of money the company promises to pay back a specific amount after a certain period of time. Generally, premium is based of monthly installments. There are several kinds of insurance plans available in the present day market. Home policy, travel, car, medical policy, accident and general indemnity policy are some of the most famous policies among the people.
General insurance companies offer products that cover property against flood, earthquake, fire, Tsunami and so on. Accident and health indemnity policies are available for individual as well as for working groups. A working group may be a group of employees of a company or an organization. Generally, when a group gets a policy, insurer offers beneficial group discounts such as low monthly premium, yearly gifts etc.
The life insurance policy is one of the famous policies in the market. Basically, this policy is an agreement between two parties to compensate on uncertainty of life in exchange of a fixed amount of monthly, quarterly, half-yearly or annual premium. It is a risk mitigation tool as well as a tax saving tool. Some years before, indemnity services in India were limited to big cities and towns with only LIC (Life Insurance Corporation of India). There were also lack of other agencies and corporations at that time. With the rise of private corporation in the insurance sector, the market has seen a drastic boom. Now, all the big financial companies are providing insurance plans to the people.
The health insurance policy is a type of policy under which the company pays complete or partial cost of medical expenses of the policy holder. This type of policy insures you and your family members against any medical expenses, such as hospital bills, drug bills, and other kinds of heavy expenses. On the other hand, the car insurance is also a type of contract between vehicle owner and insurer, according to which, in case you lose your vehicle due to unforeseen incident like theft, accident and other kind of unanticipated damage then the insurer will spread their helping hands by paying a certain amount to you.
Now almost 14 big Indian companies are offering multiple options to meet the insurance needs of the people. These companies are working aggressively in tapping the current market with several insurance plans and products. Now the question arises in our mind that which one to choose. One needs to do an extensive survey of current market before availing the policy.
The people can also compare different insurance plans with the help of Internet. There are numerous Websites available on the web that allow people to compare policies with others and that too without any charge. Suitable policies are very essential for every family and working groups, because if you are not satisfied with you policy you can not use it properly. However, we can say that insurance policy is very important for everyone.