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Top Insurances

Vehicle Insurance

Policy Assure is a one-stop solution for all your car insurance needs. We give you the best insurance service and assist at the time of insurance claims.

Business Insurance

Business insurance coverage protects businesses from losses due to events that may occur during the normal course of running the business.

Home Isurance

Home insurance offers coverage to a house and its content from unforeseen circumstances like an earthquake, fire, flood, storm, theft, burglary and riot etc.

Health Insurance

Health insurance protects you against the financial implications of a wide variety of health-related expenses from minor illnesses to critical diseases.


Car Insurance

Car insurance is a legal agreement between you and the insurance company or the insurer, wherein the insurer is liable to cover any financial losses that occur because of an accident or theft of the car or damages to a third party. The extent of coverage, however, depends on the terms and conditions of the car insurance policy document.

Car insurance allows you to safeguard yourself and your dependents from financial losses that could arise out of damages to your car. The damages may occur because of accidents, theft, natural calamities & more. Buying car insurance is simple, hassle-free, and convenient.

Why do you need car insurance?

If you do not already have insurance on your car, you need one immediately because:

  • It is mandatory by Indian law, as per the Indian Motor Vehicles Act.
  • It protects from any third-party liabilities arising because of damages caused by your car.
  • It protects you from the financial losses of car theft.
  • It protects you from losses arising out of accidents and damages from natural calamities.
  • With car insurance, you can avail a personal accident cover up to a certain amount.

Key features and benefits of a car insurance policy

Car insurance policies offer a wide variety of benefits to individuals, making your dream car more affordable. The key features and benefits of having a car insurance policy include:

  1. Affordable premiums – By buying your car insurance policy online, you can save a lot on your premium.
  2. Easy claim application process – Most insurance companies have a dedicated and highly experienced team of claim experts who help apply and speed up the claim settlement process.
  3. Cashless garage network – Getting your car insurance from a reputed insurance company often opens up the opportunity of cashless garages, where you can get cashless repairs for your vehicle in any of their associated garages. The insurance company covers the cost of repairs.
  4. Third-Party liabilities – In case any liabilities arise out of damages to a third party or their property because of your car, your car insurance will protect you.
  5. No Claim Bonus – You can opt for a no-claim bonus cover on your car insurance. With a no-claim bonus cover, you are eligible to get a bonus amount if you don’t make any claims on your car insurance for the entire year.
  6. Flexible add-on cover options – With your car insurance policy, you can opt for several add-on covers to offer greater protection from damages. These include key replacement cover, zero depreciation cover, emergency assistance cover, etc.
  7. Easy application and renewal online – You can apply for a new car insurance policy or simply renew your old one quite easily online. You need to enter the necessary details about your vehicle and old insurance policy (if applicable), pay the insurance premium online, and the new/ renewed policy document will be with you in minutes.

Types of car insurance policies in India

Depending on the extent of financial coverage and risks you want to cover against, car insurance policies in India are essentially of two types:

  • Third-Party Liability Policy – Third-party liability insurance is the most basic and minimum requirement on your car as per Indian law. It covers you against any financial and legal liabilities that arise out of damages to a third party or their property because of your car.
  • Comprehensive Policy – A comprehensive policy is more detailed than the third-party liability policy, with much larger coverage. It not only covers losses from damage caused to a third party but also financial losses to you because of damage to your car or property because of the car.
  • Pay-as-you-drive Policy – Under this policy plan, you need to pay the insurance premium amount based on the number of kilometres covered by the car. The premium amount is usage-based. You are covered as per the inclusions of the comprehensive and the third-party liability policy on a pilot basis for a year.

What are the inclusions of a car insurance policy?

Here’s a list of inclusions in the car insurance policies offered by most insurance companies:

  • Loss because of damages caused by natural calamities like storms, floods, earthquakes, etc.
  • Loss because of damages caused by strikes, riots, theft, terrorism, etc.
  • Personal accident cover
  • Financial and legal liability arising out of damages to a third party or their property.

Add-ons covers in a car insurance policy

Along with your comprehensive car insurance policy, you can opt for any or all of the following covers:

  • Zero Depreciation Cover – Taking the zero depreciation cover on your car insurance policy protects you from suffering any further deductions on your claim amount because of the depreciation value of the damaged parts of the car.
  • No Claim Bonus Cover – The No-claim bonus cover makes you eligible for a bonus from your insurer in case no claims were made on the policy in the past year.
  • Emergency Assistance Cover – The Emergency Assistance Cover allows you to drive hassle-free in any part of India. In case of an accident or a breakdown, you get immediate site repair or towing assistance wherever you are.
  • Key Replacement Cover – The key replacement cover allows you to claim a free replacement of your car keys in case you misplace or lose the key. The replacement is done free of charge, where the insurance company pays for the replacement charges.
  • Return To Invoice – In case there is a difference between your car’s insured value and purchase value, the return to invoice cover helps you cover the gap during your claim in case of a loss or theft.
  • Engine And Gearbox Protection Cover – The engine and gearbox cover helps cover costs of repairs on any parts of the engine and gearbox, like nuts, bolts, screws, etc., and the corresponding labor charges for repair and replacement as well.
  • Consumables Cover – The consumables cover helps cover costs of consumables like engine oil, nuts, bolts, gearbox oil, grease, washers, etc., during repairs or servicing.
  • Passengers Cover – The passengers’ cover in your car insurance policy helps secure you financially from any damages or injury to other passengers in the car during the accident.
  • Car Downtime Expenses – Car downtime expenses cover help you with reimbursement for any travel and other expenses incurred while your car is under repair or service at a network garage. You get a daily allowance from the insurance company to help cover any such expenses.

Basic exclusions of a car insurance policy

Your car insurance company will not cover the below:

  • General wear and tear of the car.
  • Depreciation in the value of the car.
  • Any electrical or mechanical breakdowns of the car.
  • If the driver was under the influence of intoxicants like drugs or alcohol during the time of the accident.
  • If the driver was violating any traffic rules during the time of the accident.
  • Add-on covers are not taken as part of the insurance policy.

Points to consider while choosing car insurance

Buying car insurance online is easy but can be tricky sometimes. The following list will help you make a more informed decision about purchasing your car insurance.

  • Based on the IDV of your car. IDV is the insured declared value or the market value of the car. The IDV amount stated by the insurance company directly affects your car premium amount.
  • Check the claim application process. Make sure that the insurer you choose has a quick claim application and settlement process with minimal hassle.
  • Look out for the extra service benefits offered by the company. Insurance companies often float limited period offers where you can get great discounts on your insurance premiums or win yourself some extra benefits and services at minimal or no cost along with your car insurance policy.
  • The claim settlement ratio of the insurance company is significant. A higher claim settlement ratio means that the company has settled a much larger number of claims compared to the total claim requests received.
  • Ensure that the insurance company has a qualified customer support team that is accessible and available at all times. Look for an insurer that offers 24/7 customer support in case of emergencies or needs.
  • Opting for an insurer with a large network of cashless garages can be advantageous. Whenever you have any repair work to be done on your car, you can go to the nearest associated garage for a cashless repair. The insurance company pays for the repairs.
  • Compare the quotes offered by different insurers and check for the inclusions and covers offered by each.

What are the factors affecting car insurance Premiums?

These are the factors that can affect the premium amount of your car insurance policy:

  1. IDV of the car – The IDV or insured declared value of the car is the current market value of the car after considering the depreciation amount. The IDV indicates the amount you can claim in case your car is stolen or has undergone complete damage.
  2. Age of the car – Brand new cars have a higher insurance premium than older ones. The depreciation amount deducted from the IDV is higher for older cars. As your vehicle continues depreciating, the policy premium keeps reducing.
  3. The type of policy – The premium amount is higher for comprehensive policies than third-party liability-only policies because of the coverage offered in the former.
  4. Add-on covers – By taking add-on covers on your car insurance policy, you are liable to pay a higher premium amount on the policy. With every new add-on cover, the premium value increases.
  5. Deductibles – Deductibles are the amount that the policyholder is committing to pay before the insurance company can start paying for the repairs and damages. The higher the deductibles amount, the lower the premium on your insurance.
  6. Claim history of the insured – You are eligible for a no-claim bonus if you do not make any claims on your insurance policy for an entire. If you go without making any claims for five consecutive years, you can earn up to a 50% discount on your next car insurance renewal premium.
  7. Engine capacity of the car – Cars that have higher engine capacities attract higher premium amounts compared to those with smaller engines.
  8. Other factors – Other factors that could affect the value of your insurance premium include the age of the owner, model and make of the car, city of registration, etc.

How to reduce car insurance premium?

There are several ways in which you can reduce the premium you pay on your car insurance policy.

  • Compare Online – By comparing various policies and plans online you can find some great deals and discounts on the premium amounts offered by insurance companies.
  • Lower IDV – The IDV of your vehicle determines the premium amount you pay. Opting for a lower IDV of your vehicle automatically reduces the premium you have to pay.
  • Drive Safely – Having a clean and safe driving track record helps you secure a lower premium. If you have had several traffic violations or insurance claims in your name in the past, the insurance company has reason to believe that you will continue the same in the future as well. Thus, increasing the premium amount applicable to you.
  • Safety Device – Installing safety or anti-theft devices in your car reduces the chances of losses due to theft. Therefore, car insurers charge premiums in your favour as there are lower chances of an insurance claim due to theft of the car.
  • Increase Deductibles – Deductibles refer to the maximum amount you are committing to pay in case of an accident, damage, or theft before your insurer can step in and pay. Committing a higher amount of deductibles means that the insurer will either have to pay a lower amount or not have to pay at all, thereby reducing your premium amount.
  • Long Term Policy Discount – Several insurers offer an attractive policy discount to those policyholders who sign up for a long-term policy with them.
  • AAI Membership – Being a member of organizations like AAI or WIAA can sometimes work to your advantage as several insurers offer huge discounts to such members. If you are a member of such an organization, it is always better to check with your insurer and availing of the discount, if applicable, before arriving at the final premium amount.
  • Avoid Lower Amount Claim For NCB – Having made lesser or no claims in the previous year makes you entitled to a no-claim bonus from the insurer, provided you have opted for the NCB cover that is. Using your no-claim bonus, you can save a huge percentage from your premium amount.

Why should you compare car insurance online?

Before you can finalize your car insurance policy, it is crucial to compare plans offered by different insurers online because:

  • Know The Details Of Policy – You learn of the inclusions, exclusions, and covers offered by different insurers and get to choose the one that suits your needs the best.
  • Get Best Claim Settlement Process – You can compare the terms and conditions mentioned under the policies of different insurers to see what benefits you and what does not work for you and opt for the insurer with the most hassle-free claim settlement process.
  • Save Premium – You can compare quotes to land yourself the best deals and discounts.
  • Easy process – It is easy and convenient to compare plans simultaneously.
  • Saves Time – You invest little time in comparing and save a lot of time later by avoiding the hassles of opting for the wrong policy or insurance provider.
  • Get Best Insurance Provider – You can gauge the credibility of the insurance provider by checking their claim settlement ratio, reviews, etc.

What is life insurance?

Life insurance is a contract signed between a policyholder or insured person and an insurance provider. This contract determines a specific and pre-decided sum (also known as “Cover Amount or “Sum Assured”) to be paid to the policyholder’s family after his/her death. The sum of the insurance policy is paid in lieu of a certain amount of premium.

The plan ensures that you as well as your family members are able to receive the much-needed financial support in case of your untimely demise due to any reason, such as accident, critical illness, and so on. Despite the fact that human life cannot be quantified, a monetary sum can assist the dependents in continuing their lives without abandoning their necessities and requirements.

Why do you need life insurance?

How will my family survive after I die? How will I earn for my family if I have an accident? What will I give to my family after retirement?

If such questions linger in your mind, then a life insurance plan can help you to set your mind free.

A medical emergency can arise anywhere and at any time. Life is so much uncertain that you are never sure what it has stored for you in the next moment. In such uncertain conditions, life insurance comes as an ultimate lifeline. Having a life insurance plan assures that the breadwinner’s family members are financially prepared in times of need.

There is no denying the fact that more and more people are now realizing the importance of having a life insurance policy. Although there are many reasons why should you have life insurance, three of them are the most important and are as follows:

  • To Support Your Fam? Your dependents will receive a lump-sum amount after your death.
  • To Support Your Child: Be it your children’s education or wedding, you can support your children with a child plan.
  • To Prepare for Your Retirement: With a suitable life insurance plan, you can get a pension plan along with income after the retirement period.

How does a life insurance plan work?

Similar to other insurance policies, a life insurance policy functions in a manner that the policyholder must pay a premium for a set period of time. After the death of the insured person, the insurance company will cover the financial needs of the insured’s family. The amount to be paid by the insurance company will depend upon the premium the insured person paid to the company.

Let’s understand life insurance with a simple example:

Mr. Wilson wants to protect his family in case of his early death. So, he buys a 20-year life insurance policy with a premium of Rs. 15,000 per year. If Mr. Wilson dies within the 20-year term, the insurance company will pay his family the beneficiary amount of Rs. 15,00,000. In case the policyholder is caught up with a terminal or critical illness, the insurance company will pay a lump sum amount for the medical expenses.

Therefore, life insurance provides much-needed financial assistance to the family members of the insured person in the event of emergencies.

What are the features of life insurance?

Here are some features that help make life insurance coverage a great choice for anyone:

  • Coverage for lifetime

As 75 years is the average age of a person, the majority of the insurance providers will provide coverage till then. Moreover, some life insurance firms offer 100-year coverage as well. If you will buy life insurance at an early age, you as well as your family members can leverage its benefits for the lifetime.

  • Fixed premiums for lifetime

Having life insurance will allow you to pay a fixed premium amount as well as life coverage at the time of selecting and purchasing the plan. This simply means that the premium amount of the life cover will remain the same for the duration of the chosen period.

  • Free lookup period

There may arise a situation when you are unsure about the life insurance policy you are going to purchase. This happens especially when you get life insurance in hurry and it can lead individuals to make bad decisions while choosing the insurance policy.

While having a life insurance plan, almost all the insurance providers offer 15 to 30 days of the freelook period, in which you can reconsider or re-evaluate your decision. In case you are not satisfied with the policy, you just need to return the original papers and your policy will be canceled by the insurance company.

  • Pay easily & conveniently

One can easily pay for the life insurance plan with various payment options, such as monthly, quarterly, annually, or half-yearly. Most people prefer to pay the premium costs on a monthly basis because it is extremely inexpensive.

When it comes to payment methods, the premiums can be paid through a variety of payment options, such as net banking, NEFT, IMPS, e-wallets, credit cards, debit cards, etc.

  • Waiver of premium

In case the policyholder has acquired a permanent physical or mental disability due to any reason, all the future premiums, which otherwise would have to be paid by the policyholder, are paid by the insurance company.

  • Have more with small investment

In a very nominal amount, you can have maximum gains from purchasing a life insurance policy. You just need to pay hundreds or thousands of rupees per month. Moreover, the sum assured might be in thousands or crores depending on what type of policy you have purchased and what customizations you have done to it.

  • Enjoy the buying flexibility

When it comes to the methods from where you can buy a life insurance policy, there are basically two – offline and online methods. You can either physically visit the branch office of the company in your nearby region or you can purchase the policy online by visiting the company’s website.

What are the benefits of life insurance?

  • Death benefit

Individuals can safeguard themselves and their families with life insurance in the event that something bad happens to the insured. The insurer pays an amount equal to the sum assured as indicated in the contract, plus any incentives that may be available.

  • Insurance & Investment

There are some life insurance policies that offer two lucrative benefits of both insurance and investment. This simply means that one part of your premium goes towards insurance and the other part is invested in debt, equity, etc. With a strong protective covering and higher returns on your investments, you certainly get the best of both options.

  • Double your savings with maturity benefits

A life insurance plan also acts as a saving instrument by providing maturity benefits. In case the policyholder lives to the end of the policy term without any claims, the total amount of premiums is refunded at the policy’s maturity time.

For example, if you pay a yearly premium of Rs. 10,000 for a 30-year term insurance policy, you would receive the premium money back (Rs. 3,00,000) along with the bonus amount. This is only when you survive the policy tenure and you have paid all of your premiums.

  • Save taxes

Tax saving is an additional benefit when it comes to purchasing a life insurance plan. As per Section 80C of the Income Tax Act, 1961, you will be subjected to get tax benefits.

Simply put, whatever premium amount you pay for your life insurance policy, it is eligible for having a maximum tax deduction of up to Rs. 1,50,000. Besides, any payouts that you will receive from your life insurance policy will be entirely tax-free under section 10(10D). In case you have chosen for an additional health-associated rider, you are subjected to avail tax deductions under Section 80D of the Income Tax Act.

  • Liabilities cover

Be it your children’s education loan, credit card loan, building capital for your business, or retirement plan, dealing with such kinds of liabilities can lead to great financial as well as mental pressure. And when there is no steady source of income, such liabilities can prove even more challenging. Therefore, in order to attain your important goals, you need a significant amount of financial support that life insurance can easily provide.

  • Enhance your life insurance with Riders!

Life insurance policy comes with a multitude of riders, such as Critical Illness Rider, Accidental Death Rider, Cashless Treatment Rider, etc. They provide extra protection to the individuals as well as their family members in cases where basic life insurance coverage may not come into play or need.

What are the types of life insurance?

Now that you understand what a life insurance policy is, let’s look at the various types of life insurance policies available. Your decision to purchase life insurance is based on your discretion. There are several different types of life insurance policies from which to choose. When looking for the finest life insurance coverage, keep in mind your financial objectives.

1. Term life insurance

One of the most popular life insurance plans is term life insurance. It lasts for a set amount of time and then expires at the end of the term. The best part about a term plan is that the premiums are reasonably priced.

Because the premiums are cheap, these plans are suitable for persons who have just put their initial steps in growing their careers. The plan pays out a fixed amount in case of the demise of the insured person within the tenure.

2. Unit linked insurance plans

By combining investment and insurance, ULIPs (Unit Linked Insurance Plans) provide you with the best of both spheres. Thus, you will get both life insurance as well as investment options when you will choose ULIPs. Most of the ULIPs have a lock-in period of 5 years, thus it can be considered as a long-term investment strategy.

As ULIPs are linked to the capital markets, they have a great potential to deliver top-notch results in comparison to traditional life insurance plans. However, one must check out the risk appetite and various risk factors before purchasing a plan. It is because there is also a risk of low returns and everything primarily depends upon the market’s performance.

3. Whole life insurance

Whole life insurance is a sort of permanent life insurance that covers the insured for the rest of their lives as long as the premiums are paid on time. It is distinct from term life insurance, which provides coverage for a specific period of time. In addition to providing a death benefit, whole life insurance has a savings component that can develop financial value over time.

4. Endowment plans

An endowment plan is a type of life insurance policy that provides both a life insurance plan and a savings account. If you purchase the finest saving plan, you can save regularly throughout time and receive a lump sum payment at maturity.

If you have long-term financial goals, like supporting your child’s education, setting up your own business, purchasing a new home, or living a luxurious retirement life, purchasing an endowment plan can help you to achieve them all.

5. Child Insurance Plan

A child insurance plan is specifically designed to protect your child’s future. It helps develop an education fund to support your child’s hopes and objectives in addition to providing life insurance.

The plan combines investment and insurance features to help you build wealth for your child’s future needs. You can start investing in such plans as soon as your child is born to ensure a bright financial future for your child.

6. Money back policy

A money return policy is a sort of life insurance that pays out money at predetermined intervals. Throughout the policy’s term, a percentage of the sum assured is repaid to the policyholder.

If the policyholder dies while the policy is still active, the beneficiaries will get the entire sum assured, regardless of any Survival Benefits that have already been paid. In a nutshell, money-back plans are liquid endowment plans.

7. Retirement plans

Retirement plans aid in the accumulation of a retirement fund, thus allowing you to fully enjoy your post-retirement years. You have the option of naming your spouse as the beneficiary of your life insurance policy.

In case something happens to you, your family will be financially prepared for surviving. In addition, getting the best retirement plan will assist you in paying for medical bills during your retirement years.

What are the riders under life insurance?

Under a life insurance plan, you can have a few rider options, such as accidental death cover, critical illness cover, etc. You just need to pay an additional premium for availing the riders. The following is a brief explanation of such riders:

  • Critical illness rider

Under this rider, critical illnesses such as multiple sclerosis and cancer are covered. The rider includes more than 100 critical diseases. Regardless of the overall expenses paid during the actual medical treatment, the critical illness rider gives an upfront lump payment amount.

  • Accidental death rider

The accidental death of the insured person is covered under this rider. In case the insured person dies due to an accident, the nominees of the policyholder will receive the sum assured along with the rider benefits. This rider provides financial protection to the family members of the insured person in case of his/her sudden demise.

This rider assists in the event that the insured is permanently incapacitated as a result of an accident, rendering them unable to work for a living. Depending on the policy terms, the insurer pays a specified sum assured for a set period of time. Most insurers typically pay a percentage of the rider’s accrued benefits per month for a set number of years.

  • Disability rider

If the insured is permanently or partially disabled as a result of an accident, rendering him/her unable to work for a living, the permanent disability rider comes as assistance. Depending on the policy terms, the insurer pays a specified sum assured for a set period of time. Most insurers typically pay a percentage of the rider’s accrued benefits per month for a set number of years.

  • Premium waiver rider

In case the policyholder is critically ill, disabled, or dead, all the future premiums are paid by the insurance provider. This rider takes off the financial burden from the insured person’s shoulder. As the insurance provider continues to pay premiums for the policy term, there is no effect on the sum assured.

Which factors affect life insurance premiums?

Having deep knowledge about the cost of life insurance premiums is very important. Therefore, here are some of the key factors that play a vital role in determining the actual life insurance premium rates:

  • Your age: The most important element impacting your life insurance premium is your age. As you get older, the risk that an insurer will have to pay out on your policy rises, and so your premiums rise with it. This gives us the reason why younger policyholders pay lower premiums as compared to those who are elders.
  • Your gender: Gender is the second most important factor that affects the cost of your premium. Biologically speaking, women are more likely to live longer than men due to various reasons. This simply means that women need to pay fewer premiums than men.
  • Your occupation: What type of work you do in your life also contributes to your premium rates. There are some professions, such as pilots, security, and roofers, which are considered riskier than other professions. In case your occupation exposes you to higher risks, the premium rates will go higher. And, if your occupation doesn’t need you to expose yourself to a toxic environment, the premium rates will become lower.
  • History of your health: Before purchasing a life insurance policy, the insurance company may ask you to go through a medical exam in order to access your health records. In case the individual has some history of medical conditions, such as heart disease, bypass surgery, etc., the premium rates will increase accordingly.

In addition, the insurance company will also evaluate your future medical conditions by checking your cholesterol levels, weight, blood pressure, etc. On the basis of such metrics, the premium rates will be determined.

  • The type of policy: The particulars or characteristics based on which you have chosen the policy is another factor that impacts your life insurance premium. Policies that are purchased for long-term and larger benefits usually have higher premium rates than those which are short-term and have fewer benefits.

How to choose the best life insurance plan?

It can be difficult to choose the right type of life insurance, but it is a pivotal decision. Here are some guidelines to help you choose the best life insurance policy:

  • Check Out the Reputation of the Insurance Provider: In today’s world, a multitude of insurance providers are flooding the market. This further increases complexity and ambiguity among the individuals about where to buy from.

However, you should always choose an insurance company that is well renowned or reputed among the people. With the help of reviews and ratings, you can check whether or not the company has met its customer’s expectations.

  • Determine the term: Whether you wish your life insurance to be for 10 years or 20 years, you need to be clear about the specific period of time for which your policy will run. The length of your policy should depend upon the length of your need. So. If you have some long-term needs, such as your children’s education, you can opt for 20 or 30 years plan accordingly.
  • Look at the claim settlement ratio: How many claims have been settled by the insurance company and in what time? – this is a very important question to consider before choosing a life insurance plan from a company. The company which has the highest claim settlement ratio is certainly the safest and the best one.
  • Determine your life’s goal: Be it the fact that you want to support your family after your death, raise funds for your children’s education, settle abroad, purchase or build a new house, or start up a business – you should always be clear of what your life’s goals are. It is only after determining your objectives of life, you can plan for a life insurance policy.
  • Compare & Analyze: This is one of the best tricks to choose the right plan for you. There are a plethora of online platforms available where you can compare and analyze different life insurance plans so that you can make a wise decision. These websites provide you with steak comparisons of premium prices, benefits and features, available payment options, and policy terms.
  • Take expert advice: Sometimes, it is better to take advice from professionals as they know more than common people do. Therefore, do not hesitate to contact an insurance expert because choosing a life insurance plan is certainly a critical decision that you make in your life.

Health Insurance

Health insurance provides financial protection against the costs of hospitalization or treatment for sickness. It is an agreement between the policyholder and the insurance company. The firm or insurer agrees to pay the policyholder (the insured) the sum insured or coverage amount to cover medical expenses. The insured must pay a specified amount of money in the form of a premium to receive this benefit. However, health insurance does not cover all types of scenarios and cases. These are referred to as exclusions.

Medical emergencies can occur at any time and to anyone. To make matters worse, growing medical bills have the potential to dig a hole in your wallet. Being prepared by acquiring a health insurance plan is one method to overcome such obstacles. This insurance helps alleviate financial concerns by covering the costs of acute sickness treatment, hospitalization, and other such charges.

What’s all the hype about health insurance?

With rising healthcare costs, getting the necessary and high-quality medical treatment can be costly. To protect yourself and your family from these costs, you must enrol everyone in a reputable health insurance plan as soon as possible. Here are some of the main reasons why health insurance is so popular among people.

To fight lifestyle diseases

The prevalence of lifestyle diseases in younger age groups has become a severe issue. Illnesses such as diabetes, obesity, heart disease, and hypertension (high blood pressure), which have traditionally been considered diseases specific to the elderly, have now begun to spread among the young.

While there are many medications and preventive measures to help manage and eliminate the threat of these diseases, what’s most important is to detect them early on to avoid long-term damage and other complications. Regardless of your health status, having a health insurance policy covering regular medical tests and procedures can help prevent these illnesses from progressing past minor infirmities. It leaves you with nothing less to worry about.

Rising healthcare expenses

Healthcare costs are currently very high, and it is expected that they will continue to rise in the future due to rising medical inflation. As a result, it is critical to have a health insurance plan to protect yourself from escalating healthcare costs and to remain financially secure.

Financial safety net

Everybody wishes to live a financially secure life. Although obtaining financial stability is mainly linked to adequately preparing for the future, having yourself insured under a suitable health insurance plan is critical. In the event of a medical emergency, you will be forced to pay out of pocket if you do not have health insurance, which will negatively influence your financial situation. Health insurance plans assist you in efficiently managing your emergency medical needs to make better use of your funds.

Tax benefit

According to section 80D of the Income Tax Act, a policyholder can claim a tax deduction of up to Rs. 50,000 for health insurance premiums paid for their parents

Types of health insurance plans in India

Health insurance comes in a variety of formats. However, all health insurance policies can be divided into two types: indemnity plans and fixed benefit plans. Let’s take a closer look at these two sorts.

A. Indemnity plan

This plan pays for hospitalization expenditures up to the limit set during the policy’s purchase. Insured may file multiple claims per year, but the total amount paid should not exceed the maximum sum insured limit or the amount you are entitled to receive from the insurance provider. This plan is sometimes referred to as a Mediclaim policy. You can also get cashless treatment at any network hospital, with the insurance company paying on your behalf.

Types of indemnity plans

1) Individual insurance plans: This sort of health insurance is for a single person. As a result, the insurance company pays for an individual’s medical bills. These plans typically cover all expenditures paid while hospitalization, both before and after admission, as well as charges for various medical tests and laboratory fees, as well as consultation fees. The premiums for this risk cover are lower than for other plans because it is only for one person. This individual Mediclaim insurance does not cover existing ailments. However, these disorders may be covered by the insurance company when a specific amount of time has passed. Ayurvedic, homeopathic, and other non-allopathic treatments are frequently excluded from insurance policies.

2) Family floater insurance plans: These insurance policies provide coverage for the entire family. Instead of purchasing separate individual plans, you can get a family floater that will cover all of your family’s medical and treatment costs. The insured, their spouse, and children are all covered under these plans. This plan can also protect minor children under the age of two. Siblings and in-laws are also included in specific plans. In a single plan, family floaters can provide health coverage for up to 15 members. As a result, the sum insured provided by the insurer is shared by all family members.

3) Senior citizen insurance: These insurance plans cover the costs of medical care or hospitalization for people over the age of 60. After the age of 60, illness and other health-related issues are widespread. Retirement may sometimes leave people without a steady source of income. In such a case, carrying all medical costs could be a significant strain. As a result, senior citizen health insurance policies can assist in managing medical bills in an emergency.

The IRDA requires that the policyholder is between the ages of 60 and 65 when applying for the policy. Before issuing a policy, several insurance firms require people to undergo a medical examination. In particular conditions, the waiting period for this insurance can range from 1-4 years.

4) Maternity insurance: Maternity insurance is designed for women preparing to have a child or who are already expecting one. It covers all expenses during and after the pregnancy and the cost of the kid, the mother’s care, and any issues that may emerge as a result of the pregnancy. The standard Individual or Family Floater policy can be supplemented with such a plan.

Furthermore, it can be combined with employer-provided Group Insurance plans with a sub-limit of up to Rs. 50,000. By enrolling in this plan, you can save money on tests, drugs, labour, and admittance.

This plan also covers any emergency transportation due to pregnancy-related discomforts and delivery, nursing, and consultation costs. It also includes the diagnosis of a congenital or severe condition in a newborn. The waiting time is up to four years, after which all of the benefits are available. As a result, it’s best to get this plan well before you start trying to conceive. Charges for routine check-ups, diagnostic exams, and consulting costs, as well as any drugs, such as vitamins taken during pregnancy, are excluded.

5) Group medical/employee insurance: Employers give group medical insurance to their employees. Members of any associations, firms, and other organizations are among the groups covered by such a policy. Employees can also extend the plan to cover other family members such as spouses, children, parents, and others by paying an additional fee. The premiums paid under this plan, like those paid under other plans, are tax-deductible.

Some policies additionally cover pre-existing conditions and maternity costs. Employees do not need to present any documentation or pass any medical examinations to obtain the plan, unlike other plans. In addition, the premiums are lower here. The plan can be contributory, with employees contributing a portion of the premium, or non-contributory, with the company paying the entire premium.

B. Fixed benefit plan

This plan does not include any hospitalization coverage. It pays a set sum for certain severe diseases and ailments listed, such as cancer, heart disease, and so on. This plan also includes coverage for the diagnosis of specific disorders.

Types of fixed benefit plans

1) Preventive insurance:

A preventive health plan can help you and your family keep healthy and save money at the same time. Your insurance company is required to provide this benefit so that you can get to your doctor more often. Health care is complicated, perhaps never so much as in recent years. It’s getting more so. But preventive health insurance is precisely what it sounds like a boon.

2) Critical illness: Ailments that are not covered by health insurance are known as critical illnesses. These are a few conditions that can result in permanent impairment or death. Cancer, organ transplantation and failure, multiple sclerosis, paralysis, blindness, strokes and heart attacks, kidney failure, coma, and significant cardiac procedures are among the ailments covered by the plan. For the treatment of these disorders, the coverage gives a lump sum payment. This policy can be purchased individually or as a supplement to a life insurance policy. If the policyholder is diagnosed with any of the critical illnesses on the list during the policy’s term, they will get the claim reward and other benefits. Because the policyholder cannot work and make an income due to the illness, some businesses also pay a daily allowance benefit. The waiting period for such plans is usually shorter.

3) Hospital daily cash benefit: It provides a set of benefits that are paid out after 24-48 hours of hospitalization. The advantages are in addition to those offered by a health insurance plan. This plan covers charges that aren’t generally covered by health insurance. During your stay in the hospital, you will be paid a set sum each day.

4) Personal accident: The policy provides coverage for the policyholder’s accidental death as well as permanent whole and partial disability. An approach like this would be an excellent addition to automobile insurance to cover the driver’s death or bodily injury. In the event of the policyholder’s untimely death, the plan also provides a sum assured to the family members to cover various expenses and demands. This coverage does not require any health documentation to be purchased. It is available to individuals as well as groups. In addition, many insurances cover all legal and funeral expenses and any damage caused by terrorist acts.

Features & Benefits

Here’s the list of features and benefits of health insurance.


  • Lifetime renewability: As people get older, it gets more difficult to obtain health insurance, and the premiums also rise. This is when the opportunity to renew for a lifetime comes in handy. Until recently, most insurance firms set a 65-70-year-old age restriction for health insurance. According to the IRDAI’s amended criteria, all health insurance companies must offer lifelong renewal ability.
  • Portability benefits: Policyholders can move their existing health insurance policy to a new health insurance provider using health insurance portability. It protects customers from being taken advantage of by insurance providers, allowing them more flexibility and better options if they are dissatisfied with their current health insurance policies.
  • Health coverage worldwide: With the advancement of health insurance policies, it is now feasible to access the best health coverage available anywhere in the world. International health insurance can provide seamless emergency health care overseas and medical coverage if you need to go for better health services.
  • Daycare & OPD charges: Until recently, a minimum hospitalization of 24 hours was required to cover health insurance policies in India. However, due to recent advancements in the health insurance industry, many vital procedures/treatments that take a few hours to complete, such as chemotherapy, eye surgery, lithotripsy, and others, are covered by health insurance. Furthermore, out-patient expenses are paid for operations such as dental care that do not come within either day-care or 24-hour hospitalization.
  • No claim bonus: Insurance companies reward customers who do not file a claim during the insurance year with a No Claim Bonus (NCB). The No Claim Bonus, often known as a cumulative bonus, applies to individual and family floater health insurance policies. However, keep in mind that the No Claim Bonus only allows you to prolong your coverage up to a certain point.
  • No Medical Tests up to age 45: To make the process of purchasing health insurance easier, insurance companies are opting for no medical testing for applicants under the age of 45. However, it is vital that candidates thoroughly fill out the form, providing a complete and honest declaration of their medical status. They will face severe penalties, including the cancellation of the policy if there is a discrepancy.

Best health insurance plans

The value of having the correct mix of health insurance coverage for your family cannot be overstated. Before you choose a health plan for your family, take into account your age, the size and structure of your family, and your current insurance coverage, otherwise, you risk being underinsured. Here is the list of some of the best insurance plans that suit your requirement.

We’ve selected these plans because they provide a significant amount of sum insured as well as the best claim settlement ratio. The claim settlement ratio (CSR) is the percentage of total claims that an insurance company settles in a year. It serves as a gauge of their trustworthiness. The higher the ratio, the more dependable the insurance is in general. In addition, all these insurance companies have strong connections to a large number of reputable hospitals across the country. 

Does health insurance cover COVID-19?

Yes, COVID-19 is covered by your usual health insurance. India is arguably one of the worst-affected countries, with infections spreading like wildfire, putting medical insurance consumers in a pickle.

All insurers are anticipated to extend COVID-19 coverage to persons who currently hold a health insurance policy during the pandemic. According to the IRDAI criteria, coverage cannot be rejected since it is a new sickness and not a pre-existing condition. It may not cover the cost of consumables like personal protective equipment (PPE), ventilators, masks, and oximeters, which are an essential element of the treatment.

Following the IRDAI standards, two standard health insurance policies, Corona Kavach and Corona Rakshak Policy were introduced and acquired by many people.


1. Corona kavach policy

Corona Kavach is an indemnity-oriented coverage covering all COVID hospitalization expenditures and is designed to protect you and your loved ones from COVID-19.

If the policyholder tests positive for COVID-19, the policy intends to cover hospitalization, pre-and post-hospitalization expenses, home care treatment expenses, and AYUSH therapy.

The coverage also covers oxygen, blood, operating room charges, surgical instruments, medicine and pharmaceuticals, diagnostic costs, PPE kit, mask, and other comparable items in addition to hospitalization costs.


  • Product type: Individual/family
  • Waiting period: 15 days
  • Sum insured: Rs. 50 Thousand to 5 lakh
  • Policy tenure: 3.5 months, 6.5 months, and 9.5 months
  • Entry age: 18 years to 65 years

2. Corona rakshak

Corona Rakshak is a low-cost health insurance plan that provides a lump-sum reward to policyholders diagnosed with COVID-19. If the diagnosis confirms the existence of the virus and needs hospitalization for 72 hours, the plan offers a 100 percent sum insured.

  • Product type: Individual/family
  • Waiting period: 15 days
  • Sum insured: Rs. 50 Thousand to 2.5 lakh
  • Policy tenure: 3.5 months, 6.5 months, and 9.5 months
  • Entry age: 18 years to 65 years

Inclusions & Exclusions


Health insurance providers provide various plans and policies from which to choose depending on your needs and requirements. Before selecting a plan and insurance, you should thoroughly grasp the coverage.

  • Pre- and post-hospitalization charges: This insurance covers medical expenses incurred 30 to 60 days before admission to the hospital. These pay for things like medication and medical testing, among other things. This is in addition to the standard coverage, which includes paying for at least 24 hours of hospitalization, room rent, surgical charges, and so on. It also covers medical expenses such as medicine, home treatment, and other costs between 60 and 180 days after being admitted to the hospital.
  • Ambulance charge: Ambulance service is usually covered by almost all health insurance policies.
  • Day-care charges: Some health insurance plans cover the costs of treatments performed outside of the hospital for up to 24 hours. Dialysis, radiation, chemotherapy, and other therapies fall within this category.
  • Health check-ups: Preventive health check-ups are also covered by several health insurance providers.
  • Donor expenses: In some health insurance plans, donor expenses are covered. It is possible to take a healthy body part from a living person and transplant it into another person that desperately needs it. This may be necessary to save the life of someone who is in critical need of a healthy organ. Of course, the donation process follows strict medical protocol to ensure a healthy recovery for both the donor and the recipient.
  • Maternity or new born: Providing you with the funding to care for and protect your child, most plans also provide maternity cover to protect you and your new addition. Medical insurance for kids comes in handy should your child fall ill. It covers your child from the cost of hospitalization and medical treatment to vaccinations and even a child cover for maternity benefits.


Health insurance covers various medical bills, treatments, and illnesses, allowing you to manage your budget better. However, health insurance plans do not cover specific conditions and cases, but the list varies by provider. Be sure to grasp these exclusions before committing to a plan so that you don’t run into any issues afterwards. Let’s take a look at some of the most popular exclusions.

  • Dental treatment, including surgery
  • Certain pre-existing diseases and critical illnesses
  • Maternity or newborn coverage (You need a rider to get this coverage).
  • Cosmetic surgeries
  • Vision and Hearing
  • Treatment for AIDS and other sexually transmitted diseases
  • Non-allopathic treatment
  • Suicide attempts
  • hospital expense limit

Which factors should be considered while buying health insurance?


1. Pre-existing conditions

At the age of 30, a person may or may not suffer from any or only a few major medical disorders. When compared to purchasing medical insurance at the age of 50, this is a favourable condition. Diabetes, high or low blood pressure or cataracts are all frequent health problems people face as they get older. A health insurance policy’s cost may be affected by the number of pre-existing conditions. If you have such a condition, you must state it truthfully when purchasing the coverage.

2. Budget

Most people reach financial independence by the age of 30. This makes it easy to get an excellent health insurance plan with a wide range of benefits. If you have a sufficient budget for health insurance, consider purchasing different plans, such as a critical illness plan.

3. Family members

By the time you reach 30, your family may include your parents, siblings, grandparents, and, most likely, a spouse. If you married young, you could add children to this set. You must get a plan that provides enough health insurance for your entire family. Consider looking through the numerous plans on the market to discover one that fits your family’s needs while staying inside your budget.

4. Coverage offered

A variety of health insurance products are available from a variety of insurance firms. The features and services of these products may vary according to the insurance company’s terms and conditions. You must select the appropriate product for yourself. In this circumstance, comparing medical insurance policies is an excellent idea. Now you may compare the coverage provided by each plan and make an informed decision.

5. Waiting period

This is a popular medical insurance clause in India. The waiting period is the period during which you are unable to file a claim under your health insurance coverage. You have to wait until this period is over. Typically, the waiting period applies to pre-existing conditions, maternity benefits, and other similar benefits. As a result, it is advisable to purchase health insurance as soon as feasible.

6. Network of hospitals

When choosing a health insurance carrier, make sure to look into the strength of the insurer’s hospital network. The hospital that is in direct communication with the insurance company is known as a network hospital. In such hospitals, a policyholder may be able to use cashless services. Having a large network of hospitals will be beneficial when filing a claim.

Standard fire and special perils cover

The Standard Fire & Special Perils (SFSP) Insurance, designed to cover loss or damage to Buildings, Plant & Machinery, Tools, Instruments and accessories, Furniture, Fixtures and Fittings, Electrical Installations, Stocks in trade including work in progress, etc due to Fire and Act of God perils. This policy is vital for all types of industry and trade groups, offices, service occupancies, households and assets belonging to all sections of society.

The policy specifically covers the following:

  • Fire
  • Lightning
  • Explosion / implosion
  • Aircraft damage
  • Riot, strike and malicious damage (RSMD)
  • Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation (STFI)
  • Impact damage
  • Subsidence and landslide including rockslide
  • Bursting and/or overflowing of water tanks, apparatus and pipes
  • Missile testing operations
  • Leakage from automatic sprinkler installations
  • Bush fire
  • Architects’, surveyors’ and consulting engineers’ fees
  • Removal of debris

Burglary cover

Burglary and Housebreaking Insurance policy provides financial compensation against loss or damage to property contained in your premises by acts of Burglary and or Housebreaking.

It specifically covers property contained in your premises, stocks/goods owned by you or held in trust and/or commission. It also covers cash, valuables, securities kept in a locked safe or cash box in a locked steel cupboard on a specific request.

The Policy can be extended to cover Riots, Strike, Malicious Damage and Theft. Further, policies can be issued on a declaration basis and on a floater basis for stocks.


Machinery breakdown cover

Machinery Breakdown policy is an ideal cover for all kinds of plants and machinery, to cover the cost of repairs or replacement of damaged parts as a result of unforeseen and sudden physical damages.

The cover offers protection to the insured machinery whilst at work or at rest. Also, it provides coverage when they are being dismantled for the purpose of cleaning, inspection and overhauling or removal to another position or in the course of their operations or subsequent re-erection, provided these are performed in the same premises.

The following major electrical and mechanical breakdowns risks, faced by plant and machinery, are covered by this policy:

  • Short-circuiting, excess voltage & electrical arcing
  • Faulty design, faulty material and faulty casting (manifesting after the warranty period)
  • Abnormal operating conditions
  • Carelessness and lack of skill in the operation and maintenance of machinery
  • Entry of foreign bodies
  • Falling, Impact, Collision etc
  • Bursting or disruption of turbines, compressors, cylinders of steam engines, hydraulic cylinders or flywheels or other apparatus subject to centrifugal force, internal pressure.

Plate glass cover

This policy covers accidental breakage of plate glass, fixed to display windows or showcases of commercial establishments.

The policy provides you with the following benefits:

  • It covers the cost of making good accidental breakage of insured glass for any reason whatever, except those that are specifically excluded.
  • It also provides protection for loss or damage to ornamental, embossed, lettered or stained plate or sheet glass

Money insurance

Money Insurance policy provides cover for loss of money in transit between the insured’s premises and bank or post office, or other specified places occasioned by robbery, theft or any other fortuitous cause.

The policy also covers loss by burglary or housebreaking whilst money is retained at Insured’s premises in safe(s) or strong room.

The cover is provided under 2 sections:

Section I: Covers money in transit under the following heads: Cash, Bank Drafts, Currency Notes, Treasury Notes, Cheques, Postal Orders and current Postage Stamps.

Section II: Covers money in safe / on-premises


Jeweller’s block cover

This is a package policy specially designed for jewellers & diamantaires i.e. those establishments dealing solely in diamonds. Jewellers premises are categorised into Class I, II or III depending upon the type of security provided for the premises.

The policy comprises four sections which are optional except for section I which is compulsory.

Section 1:

Covers loss or damage to jewellery, gold and silver ornaments or plates, pearls, precious stones, cash and currency notes whilst contained in the premises insured, by fire, explosion, lightning, burglary, housebreaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Section 2:

Covers loss or damage to jewellery, gold etc. as described in Section I whilst it is in the custody of the insured, his/her partners, employees, directors, sorters of diamonds or whilst such property (excluding cash and currency notes) is in the custody of brokers, agents, cutters and goldsmiths.

Section 3:

Covers loss or damage to property described in Section I whilst in transit by registered parcel post and air freight.

Section 4:

Covers loss or damage to trade and office furniture and fixtures in insured premises due to fire, explosion, lightning, burglary, housebreaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Business Insurance Plan

A corporate insurance plan is a type of insurance policy that offers coverage to a large organization or business in terms of particular operational risks, such as financial losses, sudden accidents, incidents of theft, etc. In this context, the protection benefits are subjected to a specific set of restrictions. All the actions that are not covered by the corporate insurance policy are accountable to the corporate managers.

Companies who care about the good health or fortune of their employees often prefer to embrace a corporate insurance plan as it provides great benefits not only to the employees but also to the business itself. Earlier considered as a common expectation, a corporate insurance plan now emerges as a remuneration package with schemes oriented towards employees’ wellbeing.


What are the types of corporate insurance plans?

Different types of corporate insurance plans differ in providing benefits to the employees as well as the business itself. In the present market, the following kinds of corporate insurance plans are available, out of which at least one should be taken to have financial protection and keep business running smoothly.

Contractors’ all risk insurance:

Contractors all risk insurance provides suitable and comprehensive protection against the loss or damage caused due to contract works, construction machinery (for example, construction plants and equipment), execution of civil engineering projects, etc.
Besides providing such financial protections to all parties involved (such as architects, engineers, and financers), contractors’ all risk insurance contributes to mitigating overall coanstruction expenditures.

Jewellers block insurance:

Jewellers block insurance provides coverage for loss or damage to jewellery items made up of gold, silver, pearls, precious stones, etc. Moreover, it covers the damage or loss of cash and currency notes in the jewellery company caused due to the fire, burglary, explosion, riot, terrorism, housebreaking, etc.

Cybercrime insurance:

Cyber insurance provides significant protection against financial losses caused by cyber frauds, such as unauthorized online transactions, e-mail spoofing, virus dissemination, hacking, cyberbullying, e-extortion, web jacking, cyberstalking, data diddling, hurting e-reputation, phishing, and so on. One can have cyber protection against various risks for the self as well as the family members.

Product liability insurance

Product liability insurance is meticulously designed for the business which manufactures products and goods for mass consumption. Regardless of the fact that the manufacturer is confident of the product being flawless and safe, the product might end up harming someone in many ways. Therefore, the best option to protect against such unexpected incidence is to purchase product liability insurance for your manufacturing business.

Carrier Legal Liability (CLL) insurance:

Carrier legal liability insurance covers all the expenses of damage or loss of carrier goods or merchandise, provided that, it is caused due to fire, explosion, accident on account of negligence, and criminal acts. The vehicle, in which the actual transportation was taking place, as well as the goods or merchandise, must be registered under the policy.

Public liability insurance:

In case any third-party liability emerges out of property damage or injury, public liability insurance provides optimum protection against the financial burden on your business. For this reason, the plan is also known as ‘Third Party Insurance’.

For instance, a customer visiting your company might be stuck in the lift and get hospitalized due to suffocation. In such a case, the liability may arise out of injury or loss. This gives us the reason why public liability insurance is necessary for your business.

Director & Officer (D&O) liability insurance:

In case the director and officers of a company are subjected to legal charges against serving as a director or an officer in another type of organization, the D & O liability insurance provides multifaceted protection against personal losses.

In addition, the plan covers the legal fees and various other expenses that may emerge in association with the suit.

Professional Indemnity (PI) insurance:

In case the client of an organization claims the service to be inadequate, the professional indemnity insurance provides comprehensive protection to the business owners, self-employed persons, and freelancers.
This commercial policy is specifically designed for tackling the charges against the organization or any professional service provider if the recipient of the services is dissatisfied with the work. Thus, the plan inevitably protects the business from certain mistakes and negligence claims.

Commercial general liability (CGL) insurance:

Commercial general liability insurance provides protection against the liability cost arising due to bodily injury, loss, and damage caused by business products and operations in the business premises.
Although the plan does not cover all the risks that a business may face, it is still considered inclusive business insurance because it works as a perfect amalgamation of product liability and public liability insurance.

Bankers Indemnity Insurance:

Bankers indemnity insurane is a policy specifically designed to protect banks from money or security loss on-premises due to various threats, such as fraud, forgery, and dishonesty. In particular, the banker’s indemnity insurance plan is a blend of various essential coverages to keep banks working smoothly and safely.

Erection all risk (EAR) insurance:

In case of the damage or loss caused due to the erection or installation of machinery, business equipment, and plant, the erection of risk insurance provides greater protection to the business in terms of bodily injury and property damage.

For instance, while installing business equipment, the wall of the nearby house fell. If your company has the EAR plan, a certain amount of coverage will be offered to you to cover up the damage to the property and loss of life, if any.

Group Mediclaim:

With the medical expenses skyrocketing day by day, group mediclaim policy becomes the best way to provide health benefits to your employees as well as their family members.

Under the policy, a certain amount of expensive medical treatment costs are covered in case of accidental injuries or hospitalization due to an illness.

Group Term Insurance:

A group term insurance provides coverage to a group of people. The main objective of the plan is to guarantee monetary benefits to the employees or group members, in case the insured person dies. Group term insurance plan acts as a master contract because it is purchased by an employer or the group head.

Group Personal Accident:

Group personal accident insurance plan protects the group members or employees against death or disability caused due to an accident. The plan is one of the most common corporate insurance plans purchased by the board members of a company, employers, or the employees’ owner. Based on the number of members included in a group, the group personal accident plan offers various discounts and benefits.

Workmen’s Compensation:

Workmen’s compensation plan is considered a social insurance plan because it solely depends on the social contract signed between the labourers and the management. The plan provides various medical as well as wage-related benefits to the workers who become ill or injured while doing work. Although the coverage is mandatory all across the country, the medical benefits under the policy may differ from state to state.

Fire Insurance:

Fire insurance is a kind of policy or plan that binds the insured person with the insurance company through a legal contract. In case of loss or damage incurred by fire eruptions or accidental fire cases, the insurer provides adequate coverage in exchange for an annual premium.

Burglary Insurance:

Burglary insurance recompensates for the damage or loss of the insured items and property caused due to burglary attempts in the company’s premises. The insured property may be cash, coins, jewellery items, furniture, equipment, confidential documents, commercial vehicles, etc.

Marine Insurance:

The marine insurance policy provides adequate protection against the damage or loss caused by marine vehicles, such as ships, cargo vessels, terminals, or any other carrier in which the goods are transferred or acquired from one region to the other.

Thus, this voyage policy is no more than a haven for a plethora of shipping companies and couriers as it provides protection against unexpected expenses occurring while transporting goods or items by water.


How does a corporate insurance plan work?

In simple terms, a corporate insurance plan is a type of insurance that covers a particular group of employees in an organization, that too, under a single contract. Although different corporate insurance plans work in a different manner, the following is the general chronology of how a corporate insurance plan works:

Buying Suitable Policy: As per the needs and preferences of the employees, the employer or the group head purchases a suitable corporate insurance plan. In an employer-employee group, the employer will be the policyholder and the employees will be the group members.

Paying For The Policy: The company or organization now pays a premium for the policy. Usually, two types of plans are provided to the employees to choose from, contributory and non-contributory plans. In contributory plans, the employees partake in paying premiums with nominal amounts, and the rest of the payment is done by the employer or the business owner. Whereas, in non-contributory plans, the payment is wholly done by the employer itself.

Assessment & Determining The Sum Insured: Based on nature, age allocations, and composition of the group, the policy provider determines the sum insured for each employee.

Issuing The Policy: Once the policyholder pays the premium and the sum insured is calculated, all the members of the group are covered under one plan for the respective time period from the date when the policy was initiated.

Dispensing The Benefits: The employees can leverage various coverage benefits under the plan. For instance, if the company has been issued a group health insurance plan, then the employees registered under the policy are subjected to various health benefits, such as critical illness cover, pre-and post-hospitalization coverage, chronic illness cover, etc.

Renewal & Amendments: After the tenure period of the policy expires, the policyholder can renew the plan. In case the company wishes to include a newly added member in the plan or increase the sum insured amount, an additional premium cost is charged, which is usually quite nominal.


What are the salient features of a corporate insurance plan?

  • Premium Rates That Meet The Budget
    The premium rates of a corporate insurance plan are relatively lower than individual plans. This is because the overall risk disseminates across all the group members, making it more economical to avail various lucrative perks of the plan.
  • How Long Does The Plan Last?
    Once the employee leaves the company or any corporate organization, most of the corporate insurance plans become invalid.
    Therefore, unlike individual plans that continue to operate even after the employee leaves, a corporate insurance plan is more likely to come with certain job limitations that could not be denied.
  • Tailor-Made Solutions
    Many of the corporate insurance plans come with the feature of customization as per needs and preferences. For instance, a group health insurance plan provides comprehensive coverage to the employees along with the options for add-ons that come with additional advantages.
  • What Damages & Losses Does The Plan Cover?
    On a general basis, a corporate insurance plan covers the loss or damage caused due to the following reasons:
    • Theft: In case the products or items registered under the plan is confiscated.
    • Natural Calamities: In case the damage or loss is done by any natural disaster, such as earthquake, lightning, flood, tsunami, etc.
    • Fire: In case the damage or loss is done due to the fire eruption in the company’s premises.
    • Negligence & Errors: In case any kind of negligence or error from the company gives rise to liability.
  • Absolute Legal Protection
    Regardless of the fact that whether or not something wrong is done on the company’s behalf, a corporate insurance plan serves thorough lawsuit protection to the company.
    For instance, your company’s product causes harm to an individual and he files a case against your company. In such cases of unprecedented legal implications, a corporate insurance plan becomes a wise decision to get fully insured in legal terms.

What benefits can a corporate insurance plan provide?

  • Creates Protective Shield Against Potential Risks
    A corporate insurance plan covers damages and losses arising due to theft, fire, accidents, employee unrest, negligence, and mistakes, etc. Therefore, the plan acts as a risk management tool that transfers the risks associated with the loss to an insurance company, that too, with nominal premium rates.
  • Helps You In Building Trust
    The credibility of your company or business increases when it is protected by a corporate insurance plan. When the employees know that there is some financial protection if anything wrong happens, then they tend to perform better. Besides, your customers also start trusting your brand because they know that there are strict provisions for any error or negligence.
  • Act Of God? – Protect Your Property
    A corporate insurance plan also provides extensive protection against unpredictable events that are out of human control, such as earthquakes, hurricanes, lightning, floods, storms, etc. The losses and damages caused due to such natural calamities will be covered over time.
  • Saves Your Pocket
    Lower premium rates, compensatory benefits, and protection against the loss or damage of money or property– all such aspects assist the company to save a great deal of money.
    In addition, as a corporate insurance policy allows all the group members to come under a single plan, it mitigates the expensive costs associated with purchasing individuals policies.
  • How Does The Plan Lift Employees’ Morale?
    Generally, corporate insurance plans primarily aim to facilitate the employees’ well-being and healthcare. Having a suitable plan will lead to greater job satisfaction and increased motivation among the employees.
    Moreover, it will reflect that you, as a company owner, values their contribution and wishes to keep your staff on board. In this context, a corporate insurance plan will boost employees’ morale, which in turn enhances organizational performance.
  • Attracts Good Talents
    The majority of the candidates prefer to work with companies that are insured by a suitable corporate insurance policy. Some clients make a specific statement in their curriculum vitae that they will work only with the properly insured companies. Thus, with the absence of such a plan, you may lose some of the good talents.
  • How Can You Protect Your Physical Assets?
    In case the damage or loss is caused to the physical assets of a company, such as a furniture, computers, confidential documents, etc., a suitable corporate insurance plan assists you to cover the loss. The catastrophe can be caused due to theft, robbery, terrorist attacks, etc.
  • Financial Relief To Employees
    Employees are true assets of your business. Thus, protecting them against financial risks becomes a pivotal option for any business or company.
    Regular health checkups, support at the time of medical emergencies, health coverage to family members, and benefits in terms of disability and death of the insured person – all such financial reliefs provide fresh air to your employees and make them rely on your company.

What is the claim process?

The company can get the sum insured by following the below steps:

  1. Filing A Claim: The business or company will file a claim at the time of loss or damage. For instance, if a natural calamity destroys a portion of the company’s premises, then the company will file a claim to the property insurance provider.
  2. Submitting Documents: The company has to submit all the essential documents, such as property insurance copy, original death certificate (in case of group health insurance), etc.
  3. Assessing The Damage: The insurance company will assess the damage or loss accordingly.
  4. Settling The Claim: The insurance company will then provide an appropriate amount of compensation for the damage or loss caused to the person or material things registered under the policy.

What to consider before buying a corporate insurance plan?

  • How many risks can you take?
    Before purchasing any corporate insurance plan, it is very important to assess your risk appetite or the level of risk to which your business is exposed. It is only on the basis of your risk factor the insurer will determine whether or not to cover your business.
    Beware Of Forthcoming Issues
    Whatever is the extent of coverage, you should always be cognizant of the potential challenges. While buying any corporate insurance policy, one can take the help of insurance experts to know about the issues that may arise in the future.
  • What are your insurance needs?
    With the growth and expansion of your business, liabilities also rise. In case you are met with an unexpected disaster, you certainly do not wish to be uncovered. Thus, it is extremely important to not only determine but also to review your insurance needs.
  • Proper research is a key
    One should not just buy a random plan for the business or the company. Although insurance experts can suggest you many plans, proper research should be done by the company owner.
    • Which plan is most suitable for your company?
    • Who will be your agents? Are they reputed or not?
    • How much will be the sum insured?
    • What will be the extent of coverage?

Commercial Insurance

Commercial insurance is offered to commercial entities such as businessmen, industries etc. and provides cover for various business and related needs. Commercial insurance is a type of business insurance that offers solutions for industrial sectors including but not limited to construction, manufacturing, telecom, textiles, logistics etc. These solutions aim to offer a safety net for business operations and assets when the need arises.

Types of Commercial Insurance Policy:

Common commercial insurance types include property, workers’ and liability compensation. The types of policies depend on the business and most insurers will have special packages for businesses that fall under their solutions purview.

Property Insurance

This is one of the most common types of commercial insurance. The policies cover damages to your commercial properties. For instance, a fire damaging your office space will be covered under such policies.

Shopkeeper’s Insurance

This type of policy covers damage to shop buildings and contents, housebreaking, burglary, cash insurance, bicycles, signboards, baggage, personal accident, liability etc. as per policy wordings.

Marine Insurance

These policies deal with coverage for marine cargo risks for industries such as oil and gas, power generation, wind power, paper and pulp, steel mills, infrastructure, machinery upgrades and so on.

Liability Insurance

These policies are aimed at large multinationals looking to offset business liability risks in diverse locations around the world. The policy will typically cover bodily or personal injury and infrastructure damage, product liability, clinical trials, product recall, workers’ compensation etc.

Engineering Insurance

Engineering and construction covers are offered under such a policy. The policy covers defined engineering risk classes including oil and gas, power, heavy industries, constructions, transportation systems etc.

Energy Insurance

These policies offer flexible covers for challenging onshore and offshore industries and provide comprehensive cover including downstream, midstream and upstream assets and operations.

Employee Benefits Insurance

These policies will ideally provide health insurance coverage to employees of organizations such as group mediclaim or group personal accident plans.

International Insurance

These policies provide customized services that address cross border issues of companies while considering the fiscal and regulatory framework of the region where they are operating.

Plate Glass Insurance

The policy will cover damages to plate glass or store windows in the event they are broken.

Aviation Insurance

These policies typically provide cover for all types of aircraft such as small aircraft or private jets against disappearance, total loss etc. The policy also covers damages to equipment, tools or supplies of the company, apart from dangers arising out of war and other acts of aggression. Crew members are also covered under such policies.

Bankers Indemnity Insurance

These policies are aimed at banks and cover all branches of a particular bank in the country. The policies offer cover against cash or securities lost on-premises, in transit, forgery, dishonesty, hypothecated goods, registered postal losses and appraisers, among others.

Automobile Insurance

These policies cover damages or loss to commercial cars, trucks, vans or other vehicles as well as injuries to property or persons.

Commercial Insurance Providers in India are:

Major insurers offering commercial insurance in India include:

  • New India Assurance (Public)
  • Bharti AXA (Private)
  • Bajaj Allianz (Private)
  • HDFC Ergo (Private)

Child Plans In India

If you want to financially secure the future of your child and also finance any major event in his/her life then you must certainly purchase a child insurance plan. It provides both protection and takes care of his/her future needs.

Parents in India want to secure their child’s future and hence they take life insurance plans that come along with investment plans. This will serve two purposes. One you can financially secure your child’s future and secondly finance for the major events in your child’s life. It could be for further studies, marriage etc.

Benefits of Child Insurance Plans:

If you take Life Insurance for Kids, you can benefit from the following:

  • Life cover for the child.
  • Build a fund for a child’s future needs.
  • You can add riders to the plan.
  • Death benefit and maturity benefits are paid.
  • You can decide the premium amount based on the sum assured and the maturity amount that you choose.
  • Policy terms can be taken depending on how old your child is. The policy term can be planned around the time you think that you require extra cash flow.
  • Waiver of premium rider can also opt.
  • Partial withdrawals are allowed as and when you need to meet your child’s educational requirements or for meeting other related expenses.

Who can take Child Life Insurance?

The policy can be taken by a person who wishes to secure their child’s future. The policy can be even taken if you want to plan for the child’s major events like higher education, marriage etc. In the event you die, you can know that your child’s future is not compromised and that your child will receive the best of the education and a grand wedding that you always dreamed of.

Popular Child Plans by Insurers

Life Insurance for Kids plans offered by various companies are as follows:

  1. LIC Child Career Plan

    Features and Benefits:

    • This plan is designed to meet the educational and other needs of your child.
    • Risk cover is provided on the life of your child during the policy term, this can be extended for another 7 years.
    • Survival benefits is paid if the life assured survives the term.
    • You can choose the sum assured, maturity age, policy term, mode of premium payment and the premium waiver benefit.
    • Premiums can be paid yearly, half-yearly, quarterly, or through salary deductions.
    • Premiums can be paid for up to 6 or 5 years.
  2. LIC Jeevan Ankur

    Features and Benefits:

    • Death benefits are paid on the death of the assured during the policy term, on death of a child when the assured is alive, on the death of child or nominee afterlife assured’s death.
    • Maturity benefit is paid along with loyalty additions irrespective of the survival of the life assured.
    • Loyalty additions are payable on the date of maturity irrespective of the survival of the life assured.
    • You can choose accident benefit rider and critical illness rider.
    • Premiums can be paid on a yearly, half yearly, quarterly or on a monthly basis. The monthly payments are to be made through ECS only.
    • The policy can be revived within 5 years from the date of the first unpaid premium.
    • You can surrender the policy and a guaranteed surrender value is payable on single premium and regular premium policies. Single premium policies will get up to 90% of the premium paid. Regular policies will get up to 30% of the premiums paid.
  3. HDFC Life YoungStar Udaan- Child Plan

    Features and Benefits:

    • Provision to meet academic expenses of your child.
    • Provision for miscellaneous and extracurricular expenses that occur during college or school.
    • Lump-sum amount is paid on maturity.
    • Moneyback benefits can be availed.
    • There are two death options that you can choose from. The classic option is when the death benefit is paid and after which the policy will terminate. Classic Waiver option is when the death benefit is paid but the policy will continue and the future premiums are waived.
    • The policy premium payment term is 7, 10 years or policy term minus 5 years.
    • You can choose the policy term as per your child’s future needs.
    • Guaranteed additions are paid during the first 5 years of the policy years.
    • Accrued bonuses are payable at maturity.
    • Tax benefits are available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

    Features and Benefits:

    • Protect your child’s future.
    • Fund your child’s education.
    • Support your child to set up his own business.
    • Helps you focus on your child’s development.
    • Guaranteed periodic benefits are available.
    • Maturity benefits include 25% of the sum assured, bonus and non-negative capital guarantee.
    • Life cover is offered for the entire policy term.
    • Tax benefits are available as per the prevailing Tax Laws in India.
    • Max Life Shiksha Plus Super
    • Features and Benefits:
    • The coverage includes Family Income benefit and Funding for future premiums in the event the life insured dies.
    • You can choose the policy term, premium payment term keeping in mind your milestone.
    • You get a choice of 5 funds with different levels of risk.
    • You can make partial withdrawals to meet expenses that are not planned.
    • You have a systematic transfer plan and dynamic fund allocation to protect your investment against market fluctuations.
    • In the event the life insured dies, you get a lump sum pay-out, family income benefit and funding of premium benefit.
    • On maturity, you will receive a settlement equal to the fund value.
    • Guaranteed loyalty additions are payable.
    • Tax benefits are available as per the prevailing Tax Laws in India.

What is Marine Insurance?

Since the ages, the ship is one of the popular modes of transportation, not only for trade and commerce purposes but also for traveling, especially in the pre-aeroplane era. But the sea routes are full of danger and perils that often meet with unforeseen unfortunate events like accidents, bad weather, collisions, sinking, burning, and even hijacking by the pirates. For this reason, marine insurance was facilitated by different insurance companies and this policy is also regarded as one of the oldest insurance policies.

Today, a marine insurance policy is used to cover a wide range of watercrafts such as hull coverage, cargo, and liability related to various marine activities that include the transportation of goods via water route, coverage for the vessel or ship, and so on. The marine insurance policy covers any damages due to certain reasons, from the point of origin to the point of destination. A wide number of water vehicles are eligible for this policy, like cruise liners, pleasure yachts, huge container ships, tugboats, and many more. Even marine insurance also provides protection to offshore oil rigs.

Though marine insurance policy is highly popular among the owners of vessels or ships, it can be bought by anyone with an interest in insurable property that is exposed to maritime dangers or perils. In this scenario, a marine insurance policy might appear as an important one for those who have landlocked businesses. Marine cargo insurance is mandatory for all the owners of ships or vessels who use it for commercial or transportation purposes.

Key Benefits/Features of Marine Insurance

A marine cargo policy provides comprehensive protection to the insured goods against material damages. Here are some key benefits/features of this policy below.

  • Comprehensive protection – This insurance policy offers comprehensive coverage against all the potential dangers or perils that your goods are exposed to while they are in transit.
  • Effortless customization – As every business has different needs, this policy is client-oriented and can be customized and adjusted according to your business requirements.
  • Dynamic and flexible – Marine insurance policy is flexible enough to suit your needs and convenience as it offers a wide range of options that can cater to the requirements of the policy seeker.
  • Mark up value – In the marine industry, this policy is also known as mark up which allows a portion of the profit of the insured to be included in the insured value.
  • Easy overseas claim settlement process – Marine insurance policy is hassle-free as it provides worldwide claim settlement assistance along with a claim survey and thus frees the insured from the tensions of the claim process.
  • Additional Coverage – Different companies offer various extensions or add-ons under this policy. So one can extend his policy according to his convenience and also can cover the risks arising due to riots, strikes and etc.

Different Types of Marine Insurance and Their Brief Descriptions

There are multiple types of marine insurance policies that are available with different companies to cater to the needs of the policy seeker. The common policy types that fall into the broad category of marine insurance include Hull Insurance, Marine Cargo Insurance, and Yacht Insurance, and some more. However, the types of marine insurance policies vary from one company to another. Here are the common types of this insurance policy.

Marine Cargo Insurance

The consignment owners face the risk of their cargo being damaged, lost, or mishandled during the journey. So, marine cargo insurance is there to protect their cargo against such risk that may lead to a heavy financial loss. It provides coverage against the damages at the port, ship, railway track, or while loading and unloading your goods.

This type of marine insurance also covers third-party liabilities that may arise from any loss or damage is done to the ship, port, or other transport forms from the insured cargo. Marine cargo insurance is mostly beneficial for tankers and other heavy cargo shipments as it provides financial protection to the ships or vessels.

Liability Insurance

The ship along with its cargo is always exposed to different types of perils such as crashes, collisions, attacks, or other kinds of risks that may lead to huge financial loss. These unforeseen accidents are beyond the control of the ship-owners. In that case, the liability marine insurance policy protects the owners against the claims made by cargo owners.

Hull and Machinery Insurance

Hull is the main structure of the ship or vessel. This hull insurance policy offers coverage to the ship along with its torso, furniture, and some other articles of the ship against any unanticipated damages to it. For a ship, not only the vessel but also the machinery and tools that are used or functioning, are also important components.

So, the hull insurance is often coupled with machinery and is termed as hull and machinery insurance. It is advisable for the ship-owners to go for this type of marine insurance.

Freight Insurance

In case of damage or loss to the freight, that financial loss is compensated by this type of marine insurance. Freight insurance safeguards the interest of the shipping company in this regard.

Different companies function in multiple different ways and the risks associated with their businesses are often non-identical. Therefore, their requirements for insurance coverage depend on multiple factors and are dissimilar from each other. Hence, different other types of marine insurance are available with various insurance companies.

Here are the mentions of few other common types of marine insurance, below.

Open marine insurance policy

This type of marine insurance policy is issued for a specific duration of time. Throughout that active policy period, this insurance provides continuous coverage for all shipments and transactions.

Time plan

When a marine insurance policy is purchased for a specific period of time, it is called a time policy. This type of marine policy generally remains valid for one year or so.

Voyage plan

This plan is effective and usually purchased by those who want to safeguard themselves for a specific sea voyage. It is only valid during that voyage. The moment the journey ends, the plan will be expired.

Mixed Plan

Mixed plan refers to that policy, which provides the benefits of both a voyage plan and a time plan.

Port Risk Plan

When a ship is positioned at a port, it is exposed to different types of risks too. There, a port risk plan becomes useful as it offers protection against those risks.

Valued Plan

In the case of a value plan, the value is determined either by the cargo or the shipment which is mentioned in the Policy Wordings in advance. If the cargo or the shipments get lost in any case, this helps to determine the insurance value.

Floating Plan

This type of marine insurance is best suited for those who regularly go for cargo shipment trips. Under this plan, the amount of claim is specified in advance. But it has to be remembered that, until the ship begins the journey, the other details cannot be disclosed.

Wager Plan

Under this plan, there are no fixed repayment terms specified beforehand. But, if the safety net provider finds any damage or harm deserving of cases, in that scenario, compensation is provided. If the damages or the losses are not worthy of consideration, no reimbursement will be provided, in that case.

What Are The Inclusions of The Marine Insurance?

There are abundant numbers of coverage that are available with the marine insurance policy to protect the insured from the unanticipated perils. The general inclusions of this insurance policy are mentioned below.

  • Marine insurance provides coverage for the financial loss arising out of appalling situations such as fire, explosion, sinking, stranding during a transit.
  • If any damages occur due to collision, overturning, or derailment of land conveyance, the insurer takes care of those expenses.
  • If cargo is discharged from a port that is under distress or disturbed condition, in that situation, compensation will be provided for the financial loss by the insurance company.
  • Coverage is offered for general average sacrifice salvage charges.
  • If the ship or the cargo meets any natural calamities such as earthquake, lightning and suffers financial loss, that expense is compensated by this policy.
  • The marine insurance policy takes care of the expenses such as survey fees, forwarding expenses, costs of reconditioning, and the charges of sue.
  • If any financial loss occurs due to jettisoning and washing overboard, that expense is covered under this policy.
  • If any package is totally lost overboard or dropped during loading or unloading time, that loss is covered under this policy.

What is Not Covered Under Marine Insurance?

Not all losses or damages are covered under marine insurance. The general inclusions of this insurance policy are as follows.

  • If your ship or cargo is damaged due to some intentional loss, the company does not provide any compensation for that.
  • If you package your goods poorly and due to inappropriate packaging quality you suffer a loss, in that case, this policy does not reimburse.
  • If the damage or loss arises due to bankruptcy, liquidation, failure, or collapse in the finances, the company does not provide coverage for that.
  • If your commodities or merchandise suffer any damage due to wear and tear while those are in transit, marine insurance will not cover that loss.
  • This insurance does not provide any coverage if the loss occurs due to a delay in the cargo.
  • It has to be remembered that not all insurance companies offer coverage for the loss arising out of extreme unpredictable risks like war, strikes, riots, and civil unrest.
  • Any loss or damage arising due to insolvency is not covered under this policy.
  • If there is any contamination due to radioactive waves, the policy does not compensate for that loss or damage.

What Do The Institute Cargo Clauses Cover?

The institute cargo clauses constitute the coverage of any marine insurance. The coverage that is available under these standard clauses includes the below-mentioned loss or damages.

  • Constructive total loss.
  • Actual total loss.
  • Particular average that is partial loss by an insured risk
  • General average
  • Collision liability
  • Expenses such as reconditioning costs, survey fees, forwarding expenses, sue, labour, and a few more.

How Can You Find The Best Marine Insurance For You?

There are various insurance companies in India that provide marine insurance policies with a wide range of types and benefits. As there are multiple options to chose from, it becomes an enormous task to find out a proper company and the right type of marine insurance that can cater to the requirements of your business.

The first step to select the right company is to jot down the requirements of yours. Then it becomes easier to find out a proper company. After that, it would be advisable to compare different marine insurance policies online that are available with various companies. Then, according to your convenience select a plan. It is simpler and easier to select online from a wide range of variants available in the marine policies. The correct method is to compare and contrast, analyze the coverage, understand the needs, and then only go for any marine insurance policy.

Claim Settlement Process of Marine Insurance

For availing a smooth and easy claim settlement process you can follow the below-mentioned steps:

  • If your cargo or ship suffers any loss or damage, you need to intimate the insurer immediately, at least within 24 hours.
  • A surveyor will be appointed on the behalf of the insurance company to assess the damage or loss and to make a report on that. It would be advisable to keep a copy of that report as it may help you in future reference.
  • All the proofs, witnesses, and required documents are needed to be submitted along with the duly filled claim form.
  • Your claim approval highly depends upon the report of the surveyor. So do not produce any wrong or misleading information. And, cooperate with the surveyor and the insurer.
  • For a missing package, the insured must lodge file a monetary claim with the insurance provider and get an acknowledgment for it.
  • In some cases, a police FIR is mandatory. If the damage is caused by the fire, a report by the fire department is also necessary.
  • It is advisable to keep a copy of the Marine Insurance policy and to produce it before the insurer and the surveyor.
  • If the company finds the case fit and genuine, it would approve the claim, else the claim would be rejected.
  • You can also raise an objection in writing if you find any discrepancy in the report or do not agree with the report. In case you are not satisfied with the case, you can approach the court of law.

Here is a list of documents that are required for the claim settlement process

  • Duly filled claim form
  • Original insurance certificate with the policy number
  • Copy of billing landing
  • Survey report
  • Missing certificate, damage certificate or F.I.R
  • Original invoice, packing list, shipping specification.
  • Copies of correspondence exchanged
  • KYC (above 1 lakh)
  • Letter of subrogation
  • Photographs
  • NEFT mandate duly filled and stamped by the bank or canceled cheque with the name of the policyholder, account number, IFSC code.

A fire insurance policy covers the financial loss which insured may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period and up to the agreed amount.

The policy specifies the maximum amount, which the insured can claim in case of loss. This amount is not, however, the measure of the loss. The loss can be ascertained only after the fire has occurred. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed under the policy.

Complete your questionnaire to start your quote to see how companies compete for your business. You could save up to 25% on your Fire Insurance Policy just by comparing and selecting the right policy.

Coverage Includes

  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft Damage
  • Riot, Strike, Malicious Damage
  • Storm, Typhoon, Hurricane, Tornado, Flood and Inundation
  • Impact damage
  • Subsidence and landslide including Rockslide
  • Bursting and overflowing of water tanks, apparatus and Pipes
  • Missile testing operations
  • Leakage from Automatic Sprinkler Installation
  • Bush Fire

Types of Fire Insurance Policies

  • A comprehensive policy is also known as an ‘all in one policy and covers risks like fire, theft, burglary, third party risks, etc. It may also cover loss of profits during the period the business remains closed due to fire.
  • A valued policy can be issued only for the properties where the Market Value cannot be ascertained for example Curios, Works of Art, Manuscripts, Obsolete Machinery and the like items, subject to the valuation certificate being obtained and found Acceptable by the Insurer. Under it the insured can recover a fixed amount agreed to at the time the policy is taken. In the event of loss, only the fixed amount is payable, irrespective of the actual amount of loss.
  • The floating policy is a policy that covers loss by fire caused to property belonging to the same person but located at different places under a single sum and for one premium. Such a policy might cover goods lying in two warehouses at two different locations. This policy is always subject to an ‘average clause’.
  • A replacement or Re-instatement policy is a policy in which the insurer inserts a reinstatement clause, whereby he undertakes to pay the cost of replacement of the property damaged or destroyed by fire. Thus, he may reinstate or replace the property instead of paying cash. In such a policy, the insurer has to select one of the two alternatives, i.e. either to pay cash or to replace the property, and afterwards, he cannot change to the other option.
  • Specific policy is a policy that covers the loss up to a specific amount that is less than the real value of the property. The actual value of the property is not taken into consideration while determining the amount of indemnity. Such a policy is not subject to the ‘average clause’. ‘Average clause’ is a clause by which the insured is called upon to bear a portion of the loss himself. The main object of the clause is to check under-insurance, to encourage full insurance and to impress upon the property owners to get their property accurately valued before insurance. If the insurer has inserted an average clause, the policy is known as “Average Policy”.

Losses covered by fire insurance policy

  • Goods spoiled or property damaged by water used to extinguish the fire.
  • Pulling down of adjacent premises by the fire brigade in order to prevent the progress of flame.
  • Breakage of goods in the process of their removal from the building where the fire is raging e.g. damage caused by throwing furniture out of the window.
  • Wages paid to persons employed for extinguishing fire.

Losses not covered by a fire insurance policy

  • loss due to fire caused by earthquake, invasion, the act of a foreign enemy, hostilities or war, civil strife, riots, mutiny, martial law, military rising or rebellion or insurrection.
  • loss caused by subterranean (underground) fire.
  • loss caused by burning of property by order of any public authority.
  • loss by theft during or after the occurrence of fire.
  • loss or damage to property caused by its own fermentation or spontaneous combustion e.g. exploding of a bomb due to an inherent defect in it.
  • loss or damage by lightning or explosion is not covered unless these cause actual ignition which spread into the fire.

A claim for loss by fire must satisfy the following conditions

  • The loss must be caused by actual fire or ignition and not just by high temperature.
  • The proximate cause of a loss should be fire.
  • The loss or damage must relate to the subject matter of policy.
  • The ignition must be either of the goods or of the premises where goods are kept.
  • The fire must be accidental, not intentional. If the fire is caused through a malicious or deliberate act of the insured or his agents, the insurer will not be liable for the loss.


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