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Sidharth Kapoor

Financial Insurance Advisor | Posted on |

Common Types of Insurance Policies In India


Common Types of Insurance Policies In India

In recent years, the insurance sector in India has developed steadily with several advanced products introduced in the market. It is expected to reach US $280 Billion by 2020. The sector plays a dynamic role in our economy because it increases the scope of savings among Indians and also helps to safeguard their future.

In India, there are two principal types of insurance plans - life and general insurance policies. Again, there are different kinds of insurance policies under the latter.

Life insurance policies

Life insurance schemes help you safeguard the financial future of the insured individual’s family after their demise. You can enjoy several benefits if you avail of this policy. These are

  • You can choose the policy term according to your convenience. Companies like Bajaj Finserv offer a duration ranging from 5 to 30 years.
  • Some institutions offer joint insurance benefits where you can include your spouse in your existing policy and avail coverage for them as well.
  • You can enjoy tax benefits under Sections 80c and 10(10D) of the Income Tax Act.
  • Some institutions also offer add-on covers for accidental disability and critical illnesses with their insurance policies.
  • Your beneficiary can opt to get a lump-sum payment or payments in instalments on the event of death or maturity.

These are a few benefits that you can enjoy with this policy.

General insurance policies

General or non-life insurance scheme provides cover against everything outside of life insurance plans. There are different kinds of insurance policies under this insurance policy.

Following are a few insurance policies and their benefits that you can avail under non-life insurance plans:

1. Health insurance

Health insurance policies provide financial cover against unexpected high medical expenses. There are several types of health insurance schemes which provide specific coverage like maternity insurance plans, senior citizen insurance schemes, accident covers, etc. Check with your health insurance providers to know what other schemes you can avail under this policy. Following are the benefits of availing these plans.

  • Healthcare plans ranging up to Rs. 50 Lakh.
  • Cashless hospitalisation and settlement facilities.
  • Cover for ambulance charges.
  • Medical expenses incurred during organ transplant surgery.
  • Maternity benefits, including pre and postnatal care.
  • Health check-ups.
  • Health insurance plans also provide tax benefits under Section 80D of the Income Tax Act.

Motor insurance policy

Motor insurance policies provide compensation for financial losses incurred due to theft, accidents, etc. of your vehicle. These insurances plans also cover third party damages like death or personal injuries.
Benefits of this insurance policy include:

  • Coverage for car repair bills after an accident.
  • It provides coverage for losses from incidents other than accidents, like theft, fire damage, etc.
  • Covers lawsuits and other legal proceedings which result from accidents.
  • Add on covers for car insurance schemes also provide cover for third party damages.

Home insurance plans

Home insurance policies in India safeguard you from financial losses incurred due to damage to your house and property. Following are the benefits you can avail from it.

  • It provides cover for losses from fire outbreak, natural calamities, etc.
  • Covers valuables like jewellery, work of art, etc. It provides protection in case of theft or burglary.
  • Provides rent benefits for seeking alternate accommodations.

Travel insurance policies

Travel insurance schemes shields you against the numerous risks that can arise during domestic and international travels. Some of its benefits include-

  • Cover for medical emergencies and hospitalisation charges during travels.
  • Compensation for delay or cancellation of flights.
  • Cover for loss of passport and other essential documents.
  • Cover for baggage claim issues, etc.

These were the different kinds of insurance policies that you can avail as pre your requirements. Do make sure to check up on their eligibility to avail the benefits with ease.