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INSURANCE

A protection from Financial Losses is known as Insurance. It is an assurance or Financial Protection against the unseen losses in life. It is primarily used as an Investment against the risk of uncertainty and uncertain loss. Individuals can also Insure themselves by saving money for any possible Future Losses. When the funds are pooled from many insured entities to pay the losses that may incur. That is the reason why the Companies or People who have insured are protected from the risk for a particular fee. This fee depends on the severity and frequency of the event occurring. There are 5 categories in Insurance
1.General Insurance
2.Life Insurance
3.Medical Insurance
4.Vehicle Insurance
5.Crop Insurance

GENERAL INSURANCE

General insurance is typically defined as any insurance that is not determined to be life insurance. General insurance can be categorised in to following:

Motor Insurance

Motor Insurance can be divided into two groups, two and four wheeled vehicle insurance.

Health Insurance

Common types of health insurance includes: individual health insurance, family floater health insurance, comprehensive health insurance and critical illness insurance

Travel Insurance

Travel insurance can be broadly grouped into individual travel policy, family travel policy, student travel insurance, and senior citizen health insurance

Home Insurance

Home insurance protects a house and its contents.

Marine Insurance

Marine cargo insurance covers goods, freight, cargo, and other interests against loss or damage during transit by rail, road, sea and/or air.

Commercial Insurance

Commercial insurance encompasses solutions for all sectors of the industry arising out of business operations.

LIFE INSURANCE

A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.

Life insurance

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion. Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free. There are many varieties of life insurance. Some of the more common types are discussed below.

Term life insurance

Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance.

Permanent life insurancee

Permanent life insurance is life insurance that covers the remaining lifetime of the insured. A permanent insurance policy accumulates a cash value up to its date of maturation. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value. The three basic types of permanent insurance: whole life, universal life, and endowment.

Universal life insurance

Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due to its lifetime coverage, universal life typically has higher premium payments than term.

Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premium payments than term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.

Endowment

The endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness. Policies are typically traditional with-profits or unit-linked (including those with unitized with-profits funds). Endowments can be cashed in early (or surrendered) and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid into it.

MEDICAL INSURANCE

Health insurance, alternatively referred to as, medical insurance or simply medical claim, is a type of insurance coverage that covers the cost of an individual's medical and surgical expenses. The individual, also known as the insured, pays a fixed sum (premium), every year for the health cover. The cost of health insurance premiums is deductible to the payer, and benefits received are tax-free. In case of a medical problem that necessitates surgery/hospitalization, the insured is reimbursed by the health insurance company either directly in cash or indirectly through payment to the hospital/clinic.

Taking health insurance is one of those things an individual cannot ignore given the rising costs of treating health problems. Inflation in Medicare or medical treatment is a lot higher than general inflation or inflation in other categories like food and clothing. While inflation in most categories is in single digits, inflation in Medicare is often higher. Arranging large sums of money at the last moment to treat medical emergencies is difficult if not impossible for most individuals. Hence being prepared is the only way out.

One way to plan for medical emergencies better is by opting for health insurance plans. Health insurance offers considerable leeway in terms of disease coverage. Certain health insurance plans cover as many as 30 critical illnesses and more than 80 surgical procedures. The health insurance plan disburses payment towards treatment regardless of actual expenses. The policy continues even after the benefit payment on selected illnesses. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees.

Health insurance policy is a contract between an insurance provider (e.g. an insurance company or a government) and an individual or his/her sponsor (e.g. an employer or a community organization). The contract can be renewable (e.g. annually, monthly) or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans. The type and amount of health care costs that will be covered by the health insurance provider are specified in writing, in a member contractor "Evidence of Coverage" booklet for private insurance, or in a national health policy for public insurance.

VEHICLE INSURANCE

Vehicle insurance is also known as car insurance, motor insurance or auto insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise there from. Vehicle insurance may additionally offer financial protection against as theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the number of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India as duly signed claim form, RC copy of the vehicle, driving license copy, FIR copy, Original estimate and policy copy.

There are different types of Auto Insurance in India

Private Car Insurance

In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture.

Two Wheeler Insurance

The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period

Commercial Vehicle Insurance

Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle.

The auto insurance generally includes

Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act. Liability for third party injury/death, third party property, and liability to paid driver On payment of appropriate additional premium, loss/damage to electrical/electronic accessories

The auto insurance does not include

Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage When the vehicle is used outside the geographical area War or nuclear perils and drunken driving.

CROP INSURANCE

Main Objective is to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.

This will help to farmers in the following ways

To stabilize the income of farmers to ensure their continuance in farming.
To encourage farmers to adopt innovative and modern agricultural practices.
To ensure the flow of credit to the agriculture sector.
Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities. The two general categories of crop insurance are called crop-yield insurance and crop-revenue insurance.
In India, a multi-peril crop insurance called National Agriculture Insurance Scheme (NAIS) was implemented. This scheme is being implemented by Agriculture Insurance Company of India, an Indian government-owned company. The scheme is compulsory for all farmers who take agricultural loans from any financial institution. It is voluntary for all other farmers. The premium is subsidized for farmers who own less than two hectares of land. This insurance follows the area approach. This means that instead of individual farmers, a specific area is insured.
The area may vary from gram panchayat (an administrative unit containing 8-10 villages) or block or district from crop to crop or state to state. The claim is calculated on the basis of crop cutting experiments carried out by agricultural departments of respective states. Any shortfall in yield compared to past 5 years average yield is compensated.

RISKS

Following risks leading to crop loss are to be covered under the scheme

YIELD LOSSES (standing crops, on notified area basis)

Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as (i) Natural Fire and Lightning (ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc. (iii) Flood, Inundation and Landslide (iv) Drought, Dry spells (v) Pests/ Diseases etc.

PREVENTED SOWING (on notified area basis)

In cases where majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims up to a maximum of 25% of the sum-insured.

POST-HARVEST LOSSES (individual farm basis)

Coverage is available up to a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country.

LOCALISED CALAMITIES (individual farm basis)

Loss/damage resulting from the occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

EXCLUSIONS

Risks and Losses arising out of following perils shall be excluded

War & kindred perils, nuclear risks, riots, malicious damage, theft, the act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.

Season Crops, Maximum Insurance charges payable by the farmer (% of Sum Insured)

Kharif Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 2.0% of SI or Actuarial rate, whichever is less
Rabi Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less Kharif & Rabi Annual Commercial / Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less.

In INDIA there are certain companies which participate in the Government sponsored agriculture /crop insurance schemes based on their financial strength, infrastructure, manpower, and expertise etc. The empanelled private insurance companies at present are

1) ICICI-Lombard General Insurance Company Ltd.

2) HDFC-ERGO General Insurance Company Ltd.

3) IFFCO-Tokio General Insurance Company Ltd.

4) Cholamandalam MS General Insurance Company Ltd.

5) Bajaj Allianz General Insurance Company Ltd.

6) Reliance General Insurance Company Ltd.

7) Future Generali India Insurance Company Ltd.

8) Tata-AIG General Insurance Company Ltd.

9) SBI General Insurance Company Ltd.

contact

Plot No.18, Mithila Nagar

Road No. 12, Banjara Hills

Hyderabad, Telangana - 500 034