Indemnity Policy vs Benefit Policy
Many of you might have had a doubt, why the full sum insured is not paid in case of health insurance? But the full sum assured is paid in case of life insurance. Health insurance can be defined as the agreement between the insurance company and the policyholder where the insurance company agrees to reimburse a pre determined amount in case of hospitalization of the policyholder on payment of a certain premium. The maximum amount of liability of the insurance company in case of health insurance is called as the sum insured, whereas in case of life insurance it is known as sum assured.
Car insurance as an investment
Owing a car is not longer considered a luxury; it has now become a necessity to own a car. This has increased the sales of the cars drastically in the recent years. India is considered as one of the most favourable markets for car makers due to the huge market potential. With the increase in the sales of the cars and other motor vehicles, there has also been an increase in the insurance policies taken for these vehicles.
Having a home is a dream for many of the Indian people. But due to the rising real estate and construction costs it is becoming highly difficult to purchase a home without a loan. Home loan market is growing every year and stood at Rs.11.5 trillion as of March, 2009. The CAGR growth rate has been around 16% over the past 6 years. Keeping this in mind many banks and NBFCs have cut the interest rate payable on the home loan.
Reinstating a Lapsed Policy
A life insurance policy is an important tool in financial planning for many of us. There are different modes of Life insurance policy payments. One of the most favoured modes by many is “Regular payment” in which the policyholder makes payment to the insurance company at regular intervals of time. These regular intervals are Monthly, Quarterly, Half yearly and Annual, out of which the Annual mode of payment is opted by many of us. The other payment types are “One time payment” or “Limited period payment”.
Knock for Knock Agreement
Understanding Knock for Knock Agreement in Car Insurance. Car insurance is the bread and butter of all the General insurance companies in India. This is due to the reason “Third party insurance” being mandatory to drive your vehicle on a public road. The third party motor insurance is made mandatory as per the Motor Vehicle’s Act, 1938 wherein you are mandated to have at least a third party motor insurance to cover the death and damage to the third parties due to an accident.
Why is car insurance mandatory but not health insurance
Car insurance has been introduced in India with the Motor Vehicles Act, 1938 which states that it is compulsory to have a valid third party insurance to drive a vehicle on public roads. As the law suggests, it is mandatory for a vehicle owner to have at least third party bodily injury and property damage insurance to drive in a public place. The motor insurance was made compulsory in India in 1938, but the first car was introduced to India in the year 1897.
Life Insurance Claim Process
Step by Step understanding of Life Insurance Claim Process. Life insurance is a contract between the policyholder and the insurance company in which the insurance company agrees to pay a definite amount of money to the nominee of the policyholder in exchange for a premium paid by the policyholder.
Disability Insurance Coverage, Benefits, Exclusions
Disability insurance is also known as the personal accident insurance provides disability income to the policyholder in the event of disability specified under the policy terms and conditions. Disability due to accidents can occur any time and the income earning capacity of an individual might take a hit due to the accidents. To compensate the policyholder in the event of disability, disability insurance is introduced.
Car insurance premium for New car vs Used Car
The premium for a new car would be greater than that of the used car. This is due to the depreciation being taken into account. The depreciation is the result of wear and tear of the vehicle parts due to the usage of the car.