Every day we wake up to the fact that more than 250 million lives are part of our family called LIC. We are humbled by the magnitude of the responsibility we carry and realise the lives that are associated with us are very valuable indeed. Though this journey started over five decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 59 years has been a process called TRUST.
(A) LIFE INSURANCE
- Term Life Insurance
- Permanent Life Insurance
(B) GENERAL INSURANCE
- Fire Insurance
- Marine Insurance
- Accident Insurance
(A)Life Insurance
Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income.
Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income.
A1, TERM LIFE INSURANCE: Under a Term Life contract, the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. These policies are usually for 5, 10, 15, 20 or 30 years. Term life insurance are the most popular in advance countries but were not so popular in India. However, after the entry of the private operators and aggressive marketing by few players this kind of policies are becoming popular. The premium on such type of policies is comparatively quite low when compared with other types of life insurance policies, mainly due to the fact that these policies do not carry cash value.
A2. PERMANENT LIFE INSURANCE
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period oftime, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy. Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard ofliving you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples ofsuch policies are: Whole Life, Universal Life and Variable-Universal Life.
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. Thus, over a period oftime, this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy. Your need for life insurance can change over a lifetime. At any age, you should consider your individual circumstances and the standard ofliving you wish to maintain for your dependents. In most cases, you need life insurance only if someone depends on you for support. Your life insurance premium is based on the type of insurance you buy, the amount you buy and your chance of death while the policy is in effect. This type of policy not only provides protection for your dependents by paying a death benefit to your designated beneficiary upon your death, but it also allows you to use some part of the money while you are alive or at the end of the policy. Some examples ofsuch policies are: Whole Life, Universal Life and Variable-Universal Life.
ENDOWMENT POLICIES : These policies provide for period payment of premiums and a lump sum amount either in the event of death of the insured or on the date of expiry of the policy, whichever occurs earlier.
MONEY BACK POLICIES : These policies provide for periodic payments of partial survival benefits during the term of the policy itself. A unique feature associated with this type of policies is that in the event of death of the insured during the policy term, the designated beneficiary will get the full sum assured without deducting any of the survival benefit amounts, which have already been paid as money-back components. Moreover, the bonus on such policies is also calculated on the full sum assured.
ANNUITY /PENSION POLICIES FUNDS : This policies funds require the insured to pay the premium as a single lump sum or through installments paid over a certain number of years. The insured in return will receive back a specific sum periodically from a specified date onwards (the returns can can be monthly, half yearly or annually), either for life or for a fixed number of years. In case of the death of the insured, or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, usually with some additional amounts as per the terms of the policy. Annuities Pension funds are different from from all other forms oflife insurance as an annuity policy fund does not provide any life insurance cover but merely offers a guaranteed income either for life or a certain period. Therefore, this type of insurance is taken so as to get income after the retirement.
Types of General Insurance:
Motor Insurance :: Motor insurance covers all damages and liability to a vehicle against various on-road and off-road emergencies. A comprehensive policy even secures against damage caused by natural and man-made calamities, including acts of terrorism. Motor insurance offers protection to the vehicle owner against:
Motor Insurance :: Motor insurance covers all damages and liability to a vehicle against various on-road and off-road emergencies. A comprehensive policy even secures against damage caused by natural and man-made calamities, including acts of terrorism. Motor insurance offers protection to the vehicle owner against:
- •√ Damage to the vehicle
- •√ It also pays for any third party liability determined by law against the owner of the vehicle
Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988 and needs to be renewed every year. Driving a motor vehicle without insurance in a public place is a punishable offence. In fact, third party insurance is a statutory requirement in our country ie. the owner of the vehicle is legally liable for any injury or damage caused to a third party life or property, by or arising out of the use of the vehicle in a public place.
A comprehensive motor insurance policy would include personal accident and liability only policy (third party insurance) in addition to own damage cover (damage to owner's vehicle) in one policy, Common motor insurance categories include:
- •√ Car Insurance
- •√ Two Wheeler Insurance
- •√ Commercial Vehicle Insurance
Some attractive benefits of motor insurance include roadside assistance, cashless servicing at nation-wide network of workshops and garages, personal accident cover, towing assistance.
Health Insurance :: Health care care costs are increasing every year. Sedentary lifestyle and stress at work negatively health and costs affect the can result in a critical illness or medical emergency. Such a scenario is sure to adversely affect one financial due to the massive outlay of money on medical expenditure. A health insurance policy is the only way to mitigate the financial risks, apart from leading a healthy lifestyle. insurance guarantees peace of mind in times of Health crisis, and helps secure own health and that of one's family.
Health insurance covers the medical and surgical expenses of the insured individual due to hospitalisation from an illness. Additional riders enhance the benefits and scope of the cover. Health insurance often includes cashless facility at empanelled hospitals, pre and poexpenses ambulance charges, daily cash hospitalisation allowance etc. Common types of health insurance policies include:
- •√ Individual Policy
- •√ Family Floater Policy
- •√ Surgery Cover
- •√ Comprehensive Health Insurance
Travel Insurance :: International travel, whether on vacation or business, can turn into a nightmare if one experiences contingencies like loss of baggage, loss of passport, delay in flight, medical emergency etc. Such eventualities will surely take the fun away from travelling. Travel insurance, also referred to as visitor insurance, covers one against unseen medical and non-medical emergencies during overseas travel, ensuring a worry-free travel experience. It protects the insured against misfortunes while travelling. Backed up by travel insurance, the whole experience is like no other. Different types of travel insurance policies include:
- •√ Individual Travel Policy
- •√ Family Travel Policy
- •√ Student Travel Insurance
- •√ Senior Citizens Travel Policy
In addition to the above, some insurance companies offer special plans like a corporate travel policy or comprehensive policy for travel to special destinations like Asia and/or Europe.
Home Insurance :: Home is often the most treasured possession ofan individual and also the largest financial investments one makes in life. Safeguarding the physical structure and contents of home seems like a logical thing to do. Home insurance protects the house and/or the contents in it, depending on the scope of insurance policy opted for. It secures the home against natural calamities and man-made disasters and threats, Home insurance provides protection and damages from fire, burglary, theft, flood, earthquakes etc. covering the against risks physical asset (building structure) and valuables (contents) in it. Home insurance ensures that one's hard-earned savings are utilised to meet important needs instead of using them for rebuilding the house if some harm was to come to it.
Marine (Cargo) Insurance :: Business involves the import and export of goods, within national borders and across international borders. Movement of goods is fraught with risk of mishaps which can result in damage and/or destruction of shipments. This leads to substantial financial losses for both the importers as well as the exporters. Marine cargo insurance covers goods, freight, cargo and other interests against loss or damage during transit by rail, road, sea and/or air. Shipments are protected from the time the goods leave the seller's warehouse till they reach the buyer's warehouse, Marine cargo insurance offers complete financial protection during transit of goods and compensates in the event of any loss suffered. The party responsible for insuring the goods is determined by the sales contract. Marine cargo insurance policy can be taken by buyers, sellers, import/export merchants, buying agents, contractors, banks etc. The policy usually covers the cargo, but can also be extended to cover the interest of a third party post transfer of ownership as determined by terms of sale.
Common types of policies:
- •√ Open Cover
- •√ Open Policy
- •√ Specific voyage Policy
- •√ Annual Policy
The hull of a ship or boat can be insured under marine hull insurance.
Rural Insurance :: Insurance solutions to meet the needs of agriculture and rural businesses form part of rural insurance. RDA has stipulated annual targets for insurers to provide insurance to the rural and social sector. As per these regulations, insurers are required to meet year-wise targets:
- •√ In percentage terms of policies underwritten and percentage of total gross premium income by general insurers under rural obligation
- •√ In terms of the number of lives under social obligation
Commercial Insurance :: Commercial insurance encompasses solutions for all sectors of the industry arising out of business operations. Insurance solutions for automotive, aviation, construction, chemicals, foods and beverages, manufacturing, oil and gas, pharmaceuticals, power, technology, telecom. textiles, transport and logistics sectors. It covers small and medium scale enterprises, large corporations as well as multinational companies,
Common types of commercial insurance:
- •√ Property Insurance
- •√ Marine Insurance
- •√ Liability Insurance
- •√ Financial Lines Insurance
- •√ Engineering Insurance
- •√ Energy Insurance
- •√ Employee Benefits Insurance
- •√ International Insurance Solutions
Other Types of General Insurance:
- •√ Property Insurance
- •√ Personal Accident
- •√ Householder
- •√ Shopkeeper
- •√ Corporate Insurance
- •√ e - Commercial Insurance
- •√ Fire Insurance
- •√ Crop Insurance
