Insurance provides you financial support if something unexpected happens to you and your family - such as an accident, medical emergency cost due to illness, fire or theft. Insurance provides a safety net that can help mitigate the financial impact of unexpected events or emergencies.
- Life Insurance : provides financial support to your dependent family members in case of your demise.
- Disability Insurance : provides income support if you meet with an accident that prevents you from carrying out your physical activities.
- Health Insurance : helps you to cover the medical and hospitalisation cost due to illness or accident.
- General Insurance : pertains to car insurance, travel insurance, retirement insurance, property insurance etc.
Assess your needs before you buy insurance. The type of insurance you need will depend on what you intend to protect in case something untoward happens to you - such as your life, family, house, movable/immovable assets etc. To buy insurance, you will be required to pay premium, which could be monthly, quarterly or yearly. Premium can also be one-time payment in case of certain type of insurance such as Travel insurance. These payments need to be part of our budgeting exercise.
Motor insurance
Motor insurance is a mandatory requirement if have a car, motorcycle or scooter. You will have to pay a fine and have your vehicle registration certificate (RC) or driving license (DL) confiscated by the police, if you are driving without a valid motor insurance or a motor insurance policy that has expired.
There are two types of motor insurance - third party insurance and comprehensive insurance. Third party insurance is mandatory for all vehicle owners in India. Third-party insurance will cover your liability towards damages incurred by the third party in case an accident happens with your vehicle. It won't cover damages to your vehicle. Comprehensive motor insurance provides your vehicle complete end-to-end protection against damage caused by accidents or natural disasters like floods etc.
Motor insurance premium depends on the price of the car (in case of a brand new car) or the Insurance Declared Value (IDV) of a car that has completed more than 1 year. Motor insurance is usually valid for a year; you must renew or get a new motor insurance policy before expiry of your current motor insurance. Some motor insurance policies can cover you for multiple years.
Travel insurance: Travel insurance provides financial protection against possible losses that you may suffer when you are travelling by air, especially in overseas travel. It covers you against financial losses due to loss of baggage, trip cancellation, and flight delays. Some travel insurances also cover medical expenses that you may have to incur while travelling.
Home insurance: As the name suggests, home insurance provides financial protection against damages caused to your home and its contents (furniture, home appliances etc) due to man-made (e.g. fire) or natural disasters (e.g. flood, earthquake etc).
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