Insurance Types
    Fire Insurance  
    Motor Insurance  
     Health Insurance  
    Overseas Travel Insurance  
   
  Product Details  
     
  Non-life insurance :  
     
  There are more than 150 policies in non-life insurance. This sector insures everything: from a hut to a factory, from a bullock cart to satellite.  
     
  A list of available insurance policies is given below.  
     
  I. Fire Insurance  
     
  II. Marine Insurance  
     
  III. Motor Insurance  
     
  IV. Engineering Insurance  
     
          1. Contractors All Risks Insurance
        2. Electronic Equipment Insurance
        3. Machinery Insurance
        4. Marine-Cum-Erection Insurance/SCE
 
     
  V. Miscellaneous Insurance  
     
          1. All Risks Insurance
        2. Animal Driven Cart Insurance
        3. Aquaculture (Shrimp/Prawn) Insurance
        4. Baggage/Luggage (Travelers) Insurance
        5. Banker’s Indemnity Insurance
        6. Burglary Insurance
        7. Cattle Insurance
        8. Directors and Officers Liability Policy
        9. Dog Insurance
        10. Farmers Package Insurance
        11. Fidelity Guarantee
        12. Group Mediclaim Insurance
        13. Householder’s Insurance
        14. Jeweller’s Block Insurance
        15. Mediclaim Insurance
        16. Money Insurance
        17. Office Package Policy
        18. Overseas Mediclaim Insurance Policy
        19. Personal Accident Insurance
        20. Public Liability Insurance
        21. Public Liability (Professional) Insurance
        22. Shopkeeper’s Insurance
        23. Signs Insurance
        24. Workmen’s Compensation Insurance
 
     
  Some important insurance policies are dealt with in detail below.  
     
  1) Fire Policy – It is a policy which covers risks of fire, riot and strike, malicious damage, cyclone, lightning, rockslide, landslide. By paying extra premium the policy will include earthquake, tsunami, forest fire, spontaneous combustion etc. All companies have the standard policy. The rates may differ. This is a basic policy which is taken by householders, shop-keepers, factory owners.

2) Burglary Policy – Burglary is theft by entering/exiting through unusual entry/ exit points or taking away goods by force, inducing fear.
In a commercial set-up only burglary is covered, theft is not. But in domestic buildings theft and burglary are covered by paying extra premium.

3) Motor Policy – Motor vehicles are mobile and so they are prone to or give rise to more risks. The car could be damaged, stolen, on fire. In another case the car may kill a pedestrian, the driver of the vehicle may be injured bringing third party liability on the owner. All above risks are covered by motor policy. It is a comprehensive policy and takes care of third party liability apart from damage to car.

4) Health Policy – It pays in the event of hospitalization. It covers people of all ages. There are separate policies for senior citizens as they constitute a special risk category. The companies have many policies to choose from. Pure health insurance companies are in the market who have some interesting policies.

As reported in the press, there are problems with Group Health Policies taken by the corporates. The problem is that health policies produce heavy loss for the insurance companies and Group Health Policies do more so. It has resulted in gradual increase in premium rates for all kinds of health policies.

5) Marine Insurance – It is the oldest insurance. Insurance as a concept started when people sent goods abroad and their goods got exposed to perils of the sea. The indigenous and foreign trade need transit risks covered during transit, intermediate storage and unloading. Marine insurance is complicated but interesting. It involves interaction with various agencies like transporters, port authorities, claim setting agents in different countries.

6) Engineering Policies – With huge plants coming up which contain complicated, costly machines, there is need to cover them against risks of fire, mechanical and electrical breakdown, risks during erection of new machines and their testing. These policies are specialized in nature and require engineers and technical personnel to evaluate the risk and do the rating.

7) Accident Policies – A person may meet an accident and die or get injured. The family needs money if the bread-winner dies. This policy compensates the family or the injured person. The compensation depends on the sum insured which is based on his salary.

8) Liability Policies – This is an area which has seen a spurt in demand of late. To put it simply if one is liable to compensate to another person for some loss, injury to the latter, this policy pays. A doctor may kill a patient by negligence, a shopkeeper may be held responsible for a buyer’s fall in the premises, a company director may be liable for loss made to a supplier. All these liabilities and resultant compensations are covered under liability policies.

9) Rural Policies – India is a country of villages. The farmers, small traders, villagers in general need protection from risks. Many policies for rural folks are there. They include Farmer’s Package Policy,Universal Health Policy, Cattle Policy etc.

10) Some other important policies constitute multi-risk policies. They are actually a combination of fire, burglary, machinery breakdown, personal accident, liability policies. They are mostly given to shopkeepers, hoteliers, householders, even large risks like factories.
 
     
  Life Insurance  
     
  Life Insurance is a concept which enables the family get a lump sum in the event of death of the bread-winner. It is also a good savings instrument. The returns from life policies have been good if the company and product are chosen carefully. They are comparable to any other savings plans. Add to it the saving on income tax on the premium paid; the life insurance policy becomes irresistible.  
     
  There are policies which are meant for individuals. Some important policies are shown below.  
     
 

Traditional Plans :

 
     
  1. Pure Term Policies – These policies pay only in the event of death. There is no savings clement in them. The premium is minimal and no payment is received at maturity. These are popular with people who don’t want to invest through life policies.
There are variations of this policy. Some policies assure return of the premium amount on maturity.

2. Endowment Policies – These are the most popular policies. They have two parts- life insurance and savings. We suggest LIC’s Tables-14 and 48 which have given best performance over the years.

3. Money Back Policies – In long-term policies, the insured has to wait for the payback time for many years. He may need the money at shorter intervals. Money back policies provide answer to this problem. There is periodic withdrawal of money by the assured while life insurance part remains unaffected. Almost all companies have a reasonably good product.

4. Child Policies – They are like money back policies. They start at a lower age and run for minimum of 9 years. The withdrawal is done at the 18 years, 20 years, 22 years and 24 years of age of the child to coincide with admission to college for higher education of children or the marriage of a girl child.

The best policy in this category in the market is Komal Jeevan of LIC.
 
     
  Ulips :  
     
  Unit Linked Insurance Policies are a mix of life insurance and investment with emphasis on the latter. The newspapers are full of news about ULIP now-a-days. The Unit Linked Products are more investment than life insurance. So SEBI wants to regulate them. However the IRDA is presently authorised to regulate the products.  
     
  As the money is invested in different forms as per the choice of funds by the insured, a part of it is always exposed to market risk. The best way for risk averse persons is to avoid the Ulips altogether and go for traditional policies.  
     
 

The following products are meant for groups and business establishments.

 
     
  Group Term Policy – It is taken by the employer for the benefit of the employees. The premium per head is low as the policy is taken for a large number of employees.

Group Gratuity Scheme – Gratuity is mandatory to be paid to employees on retirement or resignation if the employee has put in a minimum of 5 years of service.

The employer has to create a separate fund and contribute to it every month. Instead of that he may buy a group gratuity policy from an insurance company. He may pay a regular premium. The insurance company will manage the fund and pay the gratuity when an employee becomes eligible to get it. It will have a life insurance component which will be a further benefit for the employee.

Pension Scheme – In a country like India where social security schemes are non- existent and very few people work in organized sector with a pension facility, it is imperative for people to think of a pension plan early in life. Enlightened employers may take this opportunity to buy pension plans for their employees as a welfare Measure. Pension plans are there for individuals and groups. They are available in different forms. One may take a unit linked deferred annuity plan, or an annuity plan with life cover. The premium could be paid half-yearly, annually or in one lump sum. The insured is expected to pay premium during his working life and decide the age (vesting age) at which he will prefer to take pension.