How many types of insurance are there in India?

How many types of insurance are there in India: Insurance law is a collection of laws and regulations related to insurance. Insurance is a contract between two parties (insurer and insured). Insurance, which transfers the risk of loss to the other party to the contract, in exchange for a fee known as a “premium”.

Let us know how many types of insurance are there:

Health insurance – 

It is the type of insurance that covers the medical expenses caused due to any disease. It is important to buy a health insurance policy for your family because of the high cost of medical care especially in the private sector. Hospitalization can drain your bank account and derail your financial situation. This can be avoided by paying just a small annual premium.

A good health insurance policy covers all expenses, including consultation fees, cost of medical tests, hospitalization charges and even post-hospitalization recovery costs.

Vehicle insurance – 

Auto insurance is commonly known as motor insurance. This type of insurance covers the loss due to accidents caused by any vehicle like car, commercial vehicle, two wheeler etc. In India, motor insurance is mandatory.

Cars have become a necessity these days. Most people prefer to travel comfortably in their cars rather than traveling by other forms of transportation, so it is important and valuable to have your motor vehicle insured.

Life insurance 

Life insurance is defined as a contract relating to life between the policyholder and the insurance company. When the covered person dies, the life insurance company pays a predetermined amount to the family of the insured. In lieu of the life insurance payment, the insured has to pay only the premium.

Fire insurance 

A policy in which a person agrees to pay a certain sum of money to the insurer in exchange for fire losses benefits. Fire insurance policy provides financial protection for home, furniture, shares and other business assets.

Marine Insurance

This insurance policy provides coverage against any damage caused to cargo ships, terminals, general vessels, etc.

Marine cargo insurance is required for all shipowners who use it for commercial/transportation purposes.

Umbrella insurance

It is a policy that provides additional coverage and coverage over normal limits and coverage of liability policies. It fills in the gaps left by standard primary policies.

Liability insurance

This policy protects individuals and businesses from legal payments that the policyholder is liable to pay or issue.

This means that if the policyholder is liable for any loss or damage caused to a third party, the insurer will indemnify the loss.

Travel insurance

This type of insurance covers risks and financial losses, be it medical expenses, lost luggage or trip cancellation expenses. It covers all expenses whether you are traveling within the country or abroad.

Renter’s insurance

Homeowner’s insurance benefits from this type of insurance, but does not cover housing or minor changes that a tenant makes to the structure. This insurance covers the loss of your personal property including clothes, jewellery, accessories, computers etc.

Disability insurance

This type of insurance pays disability benefits as a partial replacement of income caused by illness or injury.

Long-term disability insurance pays monthly income payments for the duration of the insured’s disability.

Check also- How to choose the best health insurance policy