3 Main Different Types of Insurance Policies in India & Insurance Class 11 are Life Insurance, Car Insurance, Health Insurance, Two Wheeler Insurance, Home Insurance, fire insurance, marine insurance, and Travel Insurance, etc.

Introduction

Insurance is a contract in form of a policy where one party agrees to pay a certain amount for consideration to make the other party liable to recover the amount of damage caused to that party. Insurance is an old concept in India but today it’s becoming very common and important for every person who is either a businessman, or a person holds assets. Protecting the asset or businesses is very important to cover up the losses through insurance. Various insurance companies in India are:

1. Life Insurance Corporation of India (LIC)
2. Max Life Insurance Company
3. HDFC Life Insurance Company
4. ICICI Prudential Life Insurance
5. Tata AIA Life Insurance Company
6. Bajaj Allianz life insurance Company
7. SBI Life Insurance Company
8. Reliance Nippon Life Insurance Company
9. Kotak Life Insurance Company
10. Birla Sun Life Insurance Company 
11. Aviva Life Insurance Company.

Types of insurance policies in India

Life Insurance Policy

This is the most common kind of insurance taken by individuals as well as the businesses for its employees to provide financial protection to the family members of the policy taker after the death of that person. If the person who is taking life insurance is the only person earning for the whole family, then Life Insurance is the best option. Kinds of Life Insurance policies:

Term Life Insurance Policy

Term Life Insurance is the easiest to understand and to buy with an affordable price and it’s the simplest kind of life insurance policy. This term life insurance policy provides insurance for sick terms for example- insurance after the death of the policy taken. Insurance amount can be taken by the family members of the policy taker on what is death monthly basis or a complete lump sum amount depending on their own need.

Endowment Life Insurance Policy

It is also known as a term saving option at a much lower risk. This insurance plan helps the policy taker by three ways:

1. Insurance amount after the death. 
2. Half the insured amount is invested by the insurance company which gets matured after a certain period.
3. And periodical bonuses that the policy taker gets company. 

Whole Life Insurance Policy

Whole life insurance policy covers the lifetime of the whole life whether limit of up to 100 years. It is different from other kinds of life insurance policy. It is there limited to a specific term which is not up to 100 years. This policy the person insured for the whole life and even leaves that for their heirs. 

Money-Back Life Insurance Policy

This is this kind of insurance an amount of from time to time after a certain period of time arts giving back the amount of money a short on a periodical basis for the survival benefits to the insured person. 

Child Life Insurance Policy

This policy is usually taken by the policy taker for his child who covers the future plan of the child such as financial assistance in education and marriage. The benefit of this plan in India can only be taken after the child gets an 18 year old.

Retirement Insurance Policy

This policy helps the insured person to get the amount of insurance after the age of 60 years the age of retirement in India. A certain amount of money is paid from time to time and after the retirement period, a certain amount of assured money is paid annually on a monthly basis which helps the person to survive when he has no financial security.

Health Insurance Policy

Healthy life is very crucial for every person and to reduce the risk of the financial disability incurred by the hospitalization charges and the recovery it is important to take Health Insurance. There are two kinds of health insurance policy in India:

Indemnity Based Health Insurance Policy

The benefit is taken when they financially need to pay hospitalization charges and other charges for health recovery. In this policy the insurance company directly pays the hospital. 

Fixed benefit based Health Insurance Policy

The benefit is taken when the charges of hospitalization are paid and shown to the insurance company, the company pays the amount of money to the insured person who paid the hospitalization charges.

General Insurance Policy

The policies which are not included in life and health insurance policy are usually included in general insurance policy. There are various kinds of insurance policy which are covered in the general insurance policy:

Motor Insurance Policy

Motor insurance covers the insurance of motor vehicles which includes the private vehicles and commercial vehicles loading the motor vehicles. Insurance of Motor Vehicles are covered under the Motor Vehicles Act 1939. Insurance of motor vehicles against damage is not made compulsory, but the insurance against third party liability arising out of the use of motor vehicles in public places is made compulsory. Insurance Cover against damage is known as “Own Damages” and against injury or death to a third party is known as “Third Party” claim. No motor vehicle can ply in a public place without such insurance.

Liability Insurance Policy

The liability arising out of the damage caused to the third party or any person the insured person is personally liable according to the Indian law can be recovered by taking a liability insurance policy in India.

Home Insurance Policy

Home Insurance policy helps the insured person to recover the loss caused to his home through the insurance company.

This policy covers the damage caused to the home by natural disasters, fire and even protects the loss caused through the burglary/ damage to the jewellery, etc.

Mobile Insurance Policy

In today’s world mobile phones cost a lot so you can even get a mobile insurance policy to recover the amount of damage caused to the mobile phone accidentally. By taking the insurance, the policy taker can have the insurance for the old phone and can even get a new phone.

Travel Insurance Policy

The financial liability caused to you while travelling which can be related to medical and non medical emergencies. The travel insurance covers the laws of passports, accidental death, adventurous Sport, medical emergencies, etc during the travel.

Rural Insurance Policy 

There are various kinds of insurance policy taken by the people living in rural areas by taking my insurance policy for anything on which the insurance is allowed like dog insurance, sheep and goat insurance, agricultural insurance, hut insurance, etc. This insurance policy is taken as the sectors in which the rural people work, animals and other things are important for them to earn.

Marine Insurance Policy

After globalization and the free trade between the countries and the cross border import and Exports marine insurance come up as an important kind of insurance to recover the damage caused to the ship, cargo vessels, etc. 

Marine Cargo Insurance Policy

The owners of the ship who use it for the commercial purposes for the transportation of the supply, it is necessary for them to have Marine cargo insurance policy. It is important to note that compensation is not given to the loss of all damage which is done to the ship intentionally.

Liability Insurance Policy

It covers the loss caused due to the crash, attack or collision by which the damage is caused to the ship.

Freight Insurance Policy

Insurance policy is taken to cover the loss caused to the shipping company if the freight is damaged or lost during the transportation.

Fire Insurance Policy

Fire insurance for the fire accidents caused to the people who hold some assets like home, or a building with business activities going on, the machinery, or even the stock damaged due to the Fire. Kinds of  fire insurance policy in India:

Specific Insurance Policy

In this policy only the specific amount of money short can be claimed the loss incurred due to the Fire.

Comprehensive Insurance Policy

In this policy the loss recovered is not only against the fire related happenings also cover the loss/ damage caused due to burglary, robbery, etc.

Floating Insurance Policy

This policy is usually taken by the people who run the business of import and export as this policy helps to recover the loss/ damage caused to the stock or goods of the owner at various places.

Replacement Insurance Policy

In case where the property is damaged due to fire, the insurance company compensate for the loss of that specific property according to the market price of that property pertaining at that time.

Conclusion

Insurance gives a way to manage the financial risks caused to the person or the businesses. Insurance policies are made to recover the amount of loss/damage caused to the people at a point of time where they are in need of financial assistance. Insured person gets the benefit of the amount invested from time to time when they are in need.