*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
Insurance plans in India can be broadly classified into two types:
The classification is quite simple to understand. Life Insurance is the insurance plan you buy to insure your life. You get the amount you paid as the premium in case of your untimely or unexpected demise.
Any other insurance plan you buy apart from Life Insurance comes under General Insurance. By definition, General Insurance is the type of insurance that covers any kind of loss except death.
Some of the common types of General Insurance plans we can avail in our country are:
Both the Life & General (non-life) insurance companies come under the regulation of IRDAI (Insurance Regulatory and Development Authority of India).
There are around 57 insurance providers in India, 24 provide Life insurance while 33 offer General insurance plans.
Among the 33 General insurance companies, we have four public, six stand-alone health insurers, 21 private sector companies, and two specialized insurance providers.
In today’s world, the chance of an individual meeting with death is much less than falling ill, meeting with an accident or losing something valuable. That is the reason why General Insurance should take precedence and be on the priority list.
Life Insurance pays the amount for which you have insured your life. But a lost life cannot be replaced. It is more of a supportive type of insurance. Whereas, General insurance will let you buy back or repair things that have been damaged or lost and restore your health.
With many options to choose from and different companies offering different benefits and flexible opportunities and plans, one can handpick the policy that meets the requirements of an individual.
Premiums are not very high for the general insurance plans in India. Most of the plans can be bought for below Rs. 10, 000 and any damage incurred to you would cost more than that. Even though in most of the cases, the insurance policy may not cover the entire damage or loss, but it can offset and reduce the burden to your pocket.
The Indian General Insurance industry is ranked 18th among 88 nations, which is healthy and is dominated by public sector companies.
Motor and Health insurance comprise nearly 70% of the Indian insurance industry.
The entire insurance industry in India (life, health, general) is watched over and tightly regulated by the IRDAI, which came into being in the year 1999. IRDAI is an autonomous body that does regular inspections, enquires, audits, etc. An IRDAI certification is what you need to look for when buying a general insurance policy.
The website of the IRDAI is a useful resource and will guide you well if you are looking where to start. It has all the information on different insurance companies, different types of insurance and an FAQ section as well.
IRDAI also receives complaints and grievances from the customers and acts accordingly. In case you have a suggestion, complaint or a grievance, you can easily solve it.