Frequently Asked Questions on General Insurance That You Might Have Wanted To Know AboutSmall Business Financial ServicesUpdated on Sep 28, 2019 View more like this | Visit India, UN | Contact Rajeev Sharma |
Insurance indeed gives you that much-needed protection against untoward financial loss. Many situations might crop up just about anywhere, especially when you are least expecting it. All you need is to pay your insurance premium on time, and you get all the financial assistance when required. Yet, before going for just about any general insurance plan, you might have a number of questions scribbling into your mind. Here's an attempt to answer at least some of them.
Q 1: What Good Does General Insurance Do To You?
From illnesses to accidents and mishaps, the practicality of having a general insurance policy is manifold. It gives you financial security against several foreseen incidents that can fall just about any time. Yet, general insurance is a bit different from life insurance. Life insurance policies are designed to offer you returns against your investment. On the other hand, general insurance is meant for securities. Under the different Acts of Parliament, insurances like Public Liability insurance and Motor insurance have been made compulsory.
Q.2. Explain The Terms Premium And Deductibles.
Premium refers to the fixed amount of money that you need to pay when you buy general insurance. This is the final step towards completing the contract.
Deductibles, on the other hand, is the sum of money that you need to bear under all circumstances. The amount is subtracted from the estimated payable amount of claim. This is done before deciding on the liability of the insurance company.
Q.3. Explain Underwriting and Reinsurance.
When it comes to risk, underwriting refers to the determination of material facts. Based on underwriting, the decision of whether the risk can be taken or not is determined. Also, underwriting allows determining the amount of premium to be fixed with each policy.
Again, reinsurance is an agreement. With its aid, the insurance companies would distribute their risks with the underwriters.
Q. 4 What Is Look In Or Free-Look Period?
This provision of a policy refers to the fact that a client would have a specified time to reconsider his/her decision to purchase a policy. It could be anything from 15 days to a month. This period is given only after receiving the policy's receipt. The time provides the customer to check how the policy would work, and reconsider if it is going to meet their needs.
Q.5. How Can You Get Insured?
You can buy your insurance policy easily through:
The licensed agents that represent a recognized insurance company.
Brokers of insurance. They have permission to sell different products from various insurance companies.
Online by visiting company websites.
Retail houses, banks or similar commercial ventures.
Q. 6. Is There A Thing Called Sufficient Insurance Value?
Unfortunately, no! This all depends on one product to the other. As for example:
When it comes to a death cover, it is not possible to determine the value of a human being. However, as a general rule, the insurance coverage extends up to 120 months of the concerned person's gross monthly salary.
In the case of the car, the insured value comes in line with the YOY table of depreciation.
When it comes to travel insurance, it will depend on the medical price index of the country that you are travelling to.
Q 1: What Good Does General Insurance Do To You?
From illnesses to accidents and mishaps, the practicality of having a general insurance policy is manifold. It gives you financial security against several foreseen incidents that can fall just about any time. Yet, general insurance is a bit different from life insurance. Life insurance policies are designed to offer you returns against your investment. On the other hand, general insurance is meant for securities. Under the different Acts of Parliament, insurances like Public Liability insurance and Motor insurance have been made compulsory.
Q.2. Explain The Terms Premium And Deductibles.
Premium refers to the fixed amount of money that you need to pay when you buy general insurance. This is the final step towards completing the contract.
Deductibles, on the other hand, is the sum of money that you need to bear under all circumstances. The amount is subtracted from the estimated payable amount of claim. This is done before deciding on the liability of the insurance company.
Q.3. Explain Underwriting and Reinsurance.
When it comes to risk, underwriting refers to the determination of material facts. Based on underwriting, the decision of whether the risk can be taken or not is determined. Also, underwriting allows determining the amount of premium to be fixed with each policy.
Again, reinsurance is an agreement. With its aid, the insurance companies would distribute their risks with the underwriters.
Q. 4 What Is Look In Or Free-Look Period?
This provision of a policy refers to the fact that a client would have a specified time to reconsider his/her decision to purchase a policy. It could be anything from 15 days to a month. This period is given only after receiving the policy's receipt. The time provides the customer to check how the policy would work, and reconsider if it is going to meet their needs.
Q.5. How Can You Get Insured?
You can buy your insurance policy easily through:
The licensed agents that represent a recognized insurance company.
Brokers of insurance. They have permission to sell different products from various insurance companies.
Online by visiting company websites.
Retail houses, banks or similar commercial ventures.
Q. 6. Is There A Thing Called Sufficient Insurance Value?
Unfortunately, no! This all depends on one product to the other. As for example:
When it comes to a death cover, it is not possible to determine the value of a human being. However, as a general rule, the insurance coverage extends up to 120 months of the concerned person's gross monthly salary.
In the case of the car, the insured value comes in line with the YOY table of depreciation.
When it comes to travel insurance, it will depend on the medical price index of the country that you are travelling to.
