Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection and losses are paid out of the premiums collected from the insuring public.
Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.
Accidents... illness... fire... financial securities are the things you'd like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.
Accidents and mishaps can occur anytime and anywhere. It is important to identify the risks faced and insure oneself against these at the earliest.
Premium is the fixed amount of sum paid over the period by the insured to the insurance company to take insurance policy and to complete the contract of insurance.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
It is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurance.
Typically General Insurance contracts are for one year period only
Approach the insurance company well in advance before the expiry date of your policy.
- Seek an approval from the company on the intention of renewing your policy if you have not received a renewal letter / intimation
- Seek premium & other relevant details
- Pay the premium and take premium receipt and cover note/risk held note
- Wait for documents
- Check for its correctness on receipt and store it carefully
In case of denial for renewal -
- Seek an explanation from the company
- Clarify doubts if any
- Find any other company if the existing insurer doesn't renew