1. What is the meaning of insurance?

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.

2. Why do I need Insurance?

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you innot only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

3. What does General Insurance do for me ?

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.

4.What is a Premium ?

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.

5. What is deductible ?

The amount , which the insured has to bear in all cases and this amount is first, deducted from the total assessed payable claim s amount before determining insurance company's liability.

6. What is Underwriting?

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.

7. What is Reinsurance?

It is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurance.

8. What is Look-in/Free-look Period?

The look-in/free-look provision to a policy means a customer has 15 days/or as given by the company from the date of the policy's receipt to revisit his purchase decision.

9. What is the Period of General Insurance Policies?

Typically General Insurance contracts are for one year period only.

10. Do I have to Renew Policy Every Year?

Yes

11. How can I Renew the Policy?

  • Approach the insurance company well in advance before your 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, and find any other company if the existing insurer doesn't renew.

12. Who is the Regulatory Authority of Insurance?

IRDA

13. Can I Contact any Authority if I am not being Treated Properly by the Insurance Company?

  • Customer Services cell of Insurance company
  • Insurance ombudsman
  • Judiciary/Courts

14. Can I Contact any Authority if my Insurance is not Renewed by the Insurance Company?

  • Customer Services cell of Insurance company
  • Insurance ombudsman
  • Judiciary/Courts

15. Where can I get the Insurance?

IRDA, the chief regulatory body, allows various Insurance companies to operate in the country and offer general insurance products. Currently, there are 21 General Insurance companies offering GI products in India.