Insurance is a financial tool designed to protect you from unexpected losses. By paying a premium, the insurer agrees to cover specific risks outlined in your policy, helping individuals, families, and businesses remain financially secure.
Wikipedia Definition:
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.
Types of Insurance in India
| Insurance Category | Coverage Areas |
|---|---|
| General Insurance | Health, Motor, Fire, Property, Travel, Liability |
| Life Insurance | Financial protection for dependents + savings plans |
| Business & Specialty Insurance | Industrial All Risk, Cyber, Marine, Aviation, CAR/EAR |
Why Do You Need Insurance?
- Protects assets from unforeseen events
- Reduces financial burden during emergencies
- Ensures long-term safety and stability
- Mandatory for certain categories like motor third-party insurance
Common Questions About Insurance
1. How does insurance work?
You pay a premium, and the insurer compensates you for covered losses as per the terms and conditions of the policy.
2. Which insurance is most important?
Health, life, and motor insurance are essential for most individuals, depending on personal needs and risk exposure.
3. What should I check before buying insurance?
Carefully review the coverage, exclusions, premium, deductibles/excess, and the insurer’s claim process before finalizing any policy.
