Introduction to Different Kinds of Types of Insurance

An insurance is a contract between two parties namely the insurer and the insured where the insured or the client pays a specific amount to the insurer or the insurance company called as premiums and in return the insurance company promises to pay you an amount of money after an occurrence of an unfortunate event like car accident, bike theft, medical exigency etc. called as claim.

Insurance is designed to protect and secure you in the crucial times. While there are some kinds of insurance that are mandatory to have as per law, some are optional.

Types of Insurance

There are broadly three categories of insurance:

  • Life Insurance: The life insurance provides a certain agreed amount to the beneficiary in account of death of the insured person.
  • General Insurance: The general insurance includes other kinds of insurance chiefly, property insurance or liability insurance against the incidences of fire, theft, accident etc.
  • Social Insurance: Social insurance is provided to under privileged sections of the society like pension plans, disability benefits, unemployment benefits, sickness insurance etc.

Types of General Insurance

Various types of general insurance available are:

  • Motor Insurance
  • Home Insurance
  • Health Insurance
  • Jewelry Insurance
  • Travel Insurance
  • Marine Insurance

Here, we will talk about most common type of general insurance which is the motor insurance. Motor insurance is further divided into two categories of insurance – car insurance and bike insurance.

Car Insurance

Car insurance is an insurance policy that secures the owner of the car against the financial loss that happens due to damage, accident, or theft of the car. The car insurance also includes the damage caused to third party or property. A third party car insurance cover is a basic kind of insurance policy which covers only damage caused to third party by the vehicle even death. This is a must have policy in India. However, if you can afford to pay a little more premium, one can buy a highly recommended form of car insurance policy which is Comprehensive car insurance policy. The comprehensive coverage policy includes:

  • Accident to vehicle
  • Damage due to natural calamities, animal hit, falling object etc.
  • Loss and theft of vehicle
  • Third party cover

However the policy does not include the following:

  • Wear and tear of car
  • Electrical breakdown
  • Damage due to drunk driving
  • Damage due to invalid or non-availability of driving license

Bike Insurance

Bike insurance is an insurance policy that covers the bike owner against the damages like accident, and theft that may happen to the bike in an unforeseen event. The bike insurance also covers liabilities caused due to the injuries to any person or people due to the accident. As per Motor Vehicles Act, 1988, it must for every rider to take a bike insurance in our country. Bike insurance can be taken for any kind of motorbike like moped, scooter, motor cycle etc. The type of insurance which is mandatory as per law is the third party cover which covers the damage caused to third party by the vehicle even death. However, for a more coverage, one can buy Comprehensive bike insurance policy which covers theft, loss, and damage to one’s own bike along with the third party cover.

There are many insurance companies who have many easy per day insurance plans like Rs.1 or Rs.2 to facilitate the consumer. To make it even more easy the company has quickened the process of buying or renewing the bike insurance. Mostly you will be able to buy bike insurance online. The company also has premium calculator online which the insured can anytime get to know.

The Insurance sector regulator IRDA has made several kinds of insurance, which in turn help us insure different assets important to us. Be it a car, our home, some jewellery, an expensive electronic item or even our travels. Knowing the different kinds of insurance available simply help us assess which one can be most beneficial for us.

Want to read more on different types of insurance? Visit https://www.acko.com/types-of-insurance/