At times, you might end up facing some unexpected losses for which you were completely unaware. Nothing would work except a security system that backs us. In other words, we need an insurance cover.
“To insure is to protect and indemnify. It does not mean Prevention of loss”.
What are the different types of Insurance ?
There is a distinction between the types of insurance one is life insurance and other is non-life or general insurance. The reimbursement under the life insurance policy can be claimed in the event of death or maturity of the policy.
On the other hand, a General Insurance Policy will pay for the losses that may occur during the policy period only
Medical Insurance
A medical insurance policy is essentially a contract between an insurance company and the policyholder, whereby the insurer will pay for medical expenses of the policyholder (as per conditions highlighted in the medical insurance policy document). The insurer will either reimburse you for your medical expenses or settle the bill directly with the hospital. In order to avail a medical insurance policy, policyholders have to pay a premium, which varies from customer to customer and insurer to insurer as a result of various factors, including, age, lifestyle, job, gender, history of medical illnesses, family history of various diseases, amongst other factors. Medical insurance plans offer the policyholder coverage against hospitalization charges, pre-hospitalization charges, post-hospitalization charges and ambulance expenses
What Are The Benefits Of A Medical Insurance Policy ?
56% of Indians still do not have or have inadequate medical insurance cover. Due to the same they spend out of pocket from their monthly income or savings on availing medical services, which hinders the social and economic development of the country. In fact, as per data provided by the Public Medical Foundation of India (PHFI) out-of-pocket medical expenses drove 55 million Indians into poverty in 2017, and of these, 38 million (69%) were impoverished by expenditure on medicines alone. The importance of having a medical insurance policy can not be emphasized enough, especially given the rising cost of availing medicalcare and the crippling impact a disease can have on your finances and future. There are a range of benefits offered by medical insurance policies due to which you should opt for them.
Motor Insurance
Vehicle insurance or motor insurance is a type of insurance policy which safeguards you financially in case your vehicle (car or two-wheeler) sustains damages due to natural or man-made calamities such as earthquake, flood, lightning and theft among others. Working of motor insurance is pretty simple.
You pay a certain amount as premium in lieu of which the insurer offers coverage. The premium amount depends on many factors, including the car model, its age, accessories, driving pattern, etc. Read on to know why motor insurance is important in India and its benefits.
Reasons why motor insurance is important:
Offers a financial cushion in the event of a mishap
Motor insurance offers you a financial cushion in case your vehicle is damaged due to accident, earthquake, lightning, floods, etc. Note that getting your vehicle in shape post these events can cost a lot of money. However, things are different with a motor insurance plan.
Also, vehicle insurance reimburses expenses incurred in case you suffer bodily injuries because of an accident. In other words, it compensates for hospitalisation expenses due to an accident involving your vehicle.
Takes care of third-party liability
This is another reason as to why vehicle insurance is important. It takes care of third-party liability arising due to damages suffered by a third party involving your vehicle.
To put it otherwise, your insurer pays for the treatment incurred by a third-party, thus protecting you from legal litigations.
Mandatory by law
Any vehicle running on Indian roads has to have motor insurance, especially third-party liability cover. Not having insurance cover can led to a severe penalty. On the other hand, having a motor insurance gives you the peace of mind as you know you have a back up in case your vehicle sustains damages of any kind.