INSURANCE: What is insurance and why is it important?
What is insurance?
Insurance is a process of protection from financial loss. In insurance, a person becomes free from the risk of their vehicle, electronics things, business, etc. Insurance is a contract between an individual person and an insurance company. There are many types of insurance like_ vehicle insurance, health insurance, life insurance, travel insurance, flood insurance, etc.
Why Insurance is important.
Insurance is important for the vehicle because now a day accident normally can done at any place, road. If any deformation came in the vehicle, insurance company are responsible for vehicle life. Insurance company gives a new vehicle or money. So you should have to insurance of your vehicle for protection. Insurance is important for the new vehicle or second-hand vehicle. Before insurance, you should know about insurance company i.e. detail of company, protective of a vehicle, the company are fraud or real. If you have vehicle insurance and your vehicle damages in any part, a representative will come and evaluate the damage to your vehicle. You will also be guided to the right network garage nearest to you and your car would be towed there. Most vehicle insurance companies will schedule the survey within 1-2 days of the car insurance claim intimation
Price of vehicle insurance.
This rate is revised each year by IRDA. The third party insurance for 2017-18 are-
1. Condition-related to engine capacity
Not exceeding 1000cc (Applicable premium rate rs 2055.)
2. Condition-related to engine capacity Above 1000cc but not lower than 1500cc (Applicable premium rate rs 2863.)
3. Condition-related to engine capacity Exceeding 1500cc (Applicable premium rate rs 7890.)
Type of vehicle insurance.
1.Third party insurance.
In this type of insurance if a vehicle accident prone by your vehicle, insurance company give damages price for another vehicle while the company doesn’t give any damages price for your vehicle. So this type of insurance is called third-party insurance.
2.Standard motor insurance.
This type of insurance is also called full-party insurance. In this type of insurance, the insurance company gives damages price for your vehicle, driver, people who travel in the vehicle and also for other vehicles.
3. Zero deprecation vehicle or cashless vehicle insurance.
If you have four wheelers, cashless vehicle insurance is the best for you. In this type of insurance, if you face any type of accident then you can repair your car in any garages which are listed in the company. This process is very fast and easy. There are many benefits in this type of insurance.
Top five insurance company in india.
1. Tata AIG General Insurance.
2. Bajaj Allianz General Insurance.
3. Oriental Insurance.
4. New India Insurance.
5. IFFCO TOKIO General Insurance.