An Insurance Policy
An Insurance is the offer of an Insurance Company to cover the loss incurred by any person or an organisation (called Insured).
The contract document between the insured and the Insurance Company is called policy.
A policy is issued for a particular period. During this period the Insured will have to pay periodical payment called Insurance premium to the Insurance Company. An Insurance policy is a promise by the Insurance Company to compensate the loss occurred to the Insured by an assured sum.
A beneficiary is the person who will be paid the compensation in the event insured’s death. The name of the beneficiary will be recorded in the policy. An Insurance Company is bound to pay compensation only for the type of loss mentioned in the policy.
The Insurance Company is responsible to pay compensation only if loss occurs before the expiry of the policy. The Insurance Company is not liable to pay only if loss is incurred for reasons mentioned in the policy. The sum assured varies with premium and duration of the policy.
Life insurance policy is the one taken by an individual to get insurance cover in case of death of self or any other family member. Death or disability due to accidents gets covered under this policy.
An insurance policy enables the survivors in the family to cover the loss of income due to the death of the bread winner of the family.
The most popular Life Insurance policies are Endowment policy, Money back policy, Term insurance policy and Whole life policy. The terms and conditions of these policies are different. In all cases the insurer or the beneficiary can claim the amount according to the conditions mentioned in the policy.
Home insurance policy covers the risks on the property owned by an individual or an institution. The loss to property can happen due to fire, natural calamities, theft etc. Owner of the property will get the compensation from the Insurance Company as per the conditions of the policy.
An insurer can get cover for his vehicle against accident under an Auto Insurance. If the vehicle of the insurer gets damaged in an accident, then the repair charges will be met by the Insurance Company. By a Third party insurance, the Insurance company takes the liability of compensation to the victim of an accident involving insured’s vehicle. No compensation will be paid to the owner of the vehicle.
Insured under Health care insurance will get his hospital bills paid by the Insurance Company for diseases mentioned in the policy.
In the case Home insurance policy is meant to cover the loss and damages occurring to the house and the house hold articles. The loss due to theft and damages due to fire and fury of nature is covered by this policy.
A person can get information about various insurance policies from a authorised insurance agent or Net. Insurance is a very effective risk management measure.
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