BUYING INSURANCE IN INDIA
The word “Insurance” may spell safety and life security in terms of funds in case of emergency and protection of the thing or person insured. Nonetheless, many people still shy away from buying insurance policy because of some experiences and projected images of insurance companies.
In India, we have different types of insurance. Right from a person’s own life to the assets that he owns can be “insured”. Actually, this feeling is supposed to give a peace of mind to the person involved. But on the other hand, we notice that people are restless with their insurance investment because they are apprehensive if the company will surely come to their aid in the time of need or not.
SELECTING APPROPRIATE INSURANCE
Let us look at the different types of insurance available in India. There is life insurance, health insurance, vehicle insurance, travel insurance, property insurance – residential as well as commercial, machinery insurance and raw material insurance. One can also insure valuables like gold ornaments, diamonds, silverware etc.
When you are buying insurance any of the above, there is a premium to be paid annually. The premium depends upon the insured amount. The insurance companies collect the premium that is actually your contribution towards future needs and emergencies.
As far as life insurance is concerned, the pioneer in the field was Government owned Life Insurance Corporation of India (LIC). However, soon private holders joined in and now there are around 23 companies offering various plans. The forerunners are Bharati Axa Life Insurance, Bajaj Allianz, Birla Sun Life, HDFC Standard Life, ICICI Prudential Life Insurance, Max Life insurance and Aviva Life Insurance amongst others. Most of the banks also have their own insurance policies.
Health insurance companies are Religare Health Insurance, Max Bupa Health Insurance and Apollo Munich. These are more popular. However, there are other companies offering packages as well. Health insurance is very vital in the present scenario when there are innumerable cases of heart attacks, severe diabetes, cholesterol, and cancer that need hospitalization and expensive medication. Besides this, eye surgeries, other ailments etc too need medical cover and this health insurance is useful when you are cash strapped to pay the hefty bills.
Vehicles are prone to road accidents and subsequent damage. If your car is under insurance coverage, then the repair bills are taken care of to some extent by the insurance company after assessing the condition of damage and expenses. The Oriental Insurance Company Ltd. and The New India Assurance Company Ltd are government -held companies whereas from private sector there are companies like ICICI Lombard General Insurance, Tata AIG General Insurance and HDFC ERGO General Insurance. Besides settling your claim for accident repair coverage, they also help with towing services and free car pick up. However, The Oriental Insurance Company is by far the best provider in this field.
WHY SHOULD YOU INSURE?
It is in the best interest that every individual opts for an insurance package, especially the life and health plan. It not only helps you raise funds in critical moments, but life insurance policies can be pledged to get a loan too. The amount of loan sanctioned is dependent upon your policy value and there is a facility to repay the loan with interest or just paying the interest and the loan amount gets deducted from your policy at the time of claim or policy maturity.
Why should a person get his property insured? Well, the property of any kind, whether it is residential or commercial should be insured because there are various threats involved that may cause damage and losses. These are theft, destruction due to fire, collapse of construction due to natural hazards, etc. Home is a place of every person’s dream, where there is warmth, togetherness and fond memories. So how can you neglect it from being protected?
A similar case applies to commercial properties too, be it your dream office or a factory that you have opened to run a business so that you can fulfill the dreams of your loved ones. Factories need storage of raw material. This is a very expensive affair as without it, you cannot function. We hear of so many cases of break-ins and theft of raw materials and machinery. But if your property and assets therein are insured, you can breathe easy in case of theft or damage through fire, rain flooding, etc.
HELP AT HAND: MAKE THE RIGHT CHOICE
Previously there were no means of knowing the many options for all the categories in the market and various benefits that each company had to offer to its customers. When any insurance agent happened to walk up and sweet talk to you, he would succeed in making you in buying insurance from his particular company’s policy. But not anymore; there are online sites like Policybazaar.com and Bankbazaar.com that offer you in detail analysis of all types of insurance and their providers. You can study and make the right choice.