It is a system by which the losses suffered by a few are spread over many,
exposed to similar risks. Insurance is a protection against financial loss
arising on the happening of an unexpected event.
Insurance is a hedge against the occurrence of unforeseen incidents. Insurance
products help you in not only mitigating risks but also helps you by providing
a financial cushion against adverse financial burdens suffered.
Accidents... illness... fire... financial securities are the things you'd like
to worry about any time. General Insurance provides you the much-needed
protection against such unforeseen events. Unlike Life Insurance, General
Insurance is not meant to offer returns but is a protection against
contingencies. Under certain Acts of Parliament, some types of insurance like
Motor Insurance and Public Liability Insurance have been made compulsory.
It is very important to have adequate amount of coverage for each insurance
policy. For any asset or property insurance, the value of the asset based on
market value or reinstatement value should be taken into consideration before
deciding Sum Insured. If the Sum Insured is not adequate, the percentage
representing the uncovered portion of the asset is to be borne by the insured.
Almost everything that has a financial value in your life and has a probability
of getting lost, stolen or damaged, can be covered through insurance. Property
(both movable and immovable), vehicle, cash, household goods, health,
dishonesty and also your liability towards others can be covered.
Premium is the fixed amount of sum paid over the period by the insured to the
insurance company to take insurance policy and to complete the contract of
insurance.
Why should I fill up proposal form for buying Insurance ?
Insurance is a contract between the insured and the insurer. The proposal form
is the basis of contract and it contains all the required information for the
preparation of the policy which is a contract document.
It is the consideration of material fact to asses the risk and to take the
decision whether to accept the risk for insurance contract and if so at what
rate of premium.
The amount, which the insured has to bear in all cases and this amount is
first, deducted from the total assessed payable claims amount before
determining insurance company's liability.
