What are the different types of insurance policies in India?

Insurance safeguards your interests against unforeseen events. It protects your car, family, and future from things you cannot control
 

Insurance is a contract between a policyholder and an insurance company. The policyholder pays regular premiums to the insurance company. In return, the insurance company provides financial protection to the policyholder from any loss or risk that might occur in the future. The insurance company is often called the insurer and the policyholder the insured. Let us understand different types of insurance policies in India and their advantages.

What are the different types of insurance in India?
 

The following are the types of insurance available in India, their purpose, and their details.

Car insurance
 

Also called motor insurance, car insurance is popular in India. Car insurance is an insurance policy that offers a policyholder financial assistance in the event of an accident involving their car. Car insurance is one of the three types of insurance that constitute motor insurance besides two-wheeler and commercial vehicle insurance.

The following are the benefits of having car insurance.

Damage or losses are covered
 

A car insurance policy covers any damage or losses suffered by your car. It covers losses due to burglary, theft, riots, or terrorism.

Personal accident cover
 

Car insurance provides personal accident cover for a fixed amount. A personal accident cover protects a policyholder against permanent total disability or death due to an accident.

Third-party liability
 

If a third party's car meets with an accident and suffers losses, they will be covered under third-party liability.

No-claim Bonus
 

No-claim Bonus is one of the main advantages of purchasing a car insurance policy. A customer is eligible to claim this benefit for every claim-free year.

Health insurance
 

Health insurance is general insurance that financially assists a policyholder when admitted to a hospital for treatment. Additional plans can also be added to your health insurance policy to combat rising medical costs and for the treatment of certain specific diseases whose treatment is costly. Here are the advantages of purchasing a health insurance plan.

Medical cover
 

The main benefit of a health insurance plan is that it provides financial assistance and covers our medical expenditures.

Cashless claim
 

Every health insurance provider has tie-ups with a chain of hospitals in major cities where policyholders can avail of a cashless claim benefit.

Tax benefits
 

Any policyholder can avail of income tax benefits of up to ₹ 1 lakh on the premiums paid towards their health insurance policy.

Travel insurance
 

Travel insurance plans ensure the financial safety of a traveler during a trip. Travel insurance policies provide financial help in situations such as loss of baggage while travelling, trip cancellation, etc. Travel insurance is of three types: domestic travel insurance, international travel insurance, and home holiday insurance. Here are the benefits of travel insurance.

Covers flight delay
 

Travel insurance also covers financial losses arising from flight delays.

Baggage loss
 

You can claim monetary assistance if you lose your luggage during a trip.

Trip cancellation cover
 

International travel insurance policies support trip cancellations in the event of the sudden passing of a family member or any medical emergency in the family.

Home insurance
 

Property insurance or home insurance secures your home against unfortunate events such as theft, fire, or natural calamities. With a home insurance policy, a policyholder can benefit from the following advantages.

Protection from natural calamities
 

A home insurance policy protects your home from natural disasters such as floods, hurricanes, and earthquakes.

Protection against fires
 

Home insurance policies also protect financial liabilities from fires.

Life insurance
 

A life insurance policy protects your family or loved ones after your passing. Life insurance policies ensure the financial freedom of your family members after your death. Here are the benefits of purchasing a life insurance policy.

Secures financial future
 

An individual who has purchased a life insurance policy can rest assured about the financial independence of their family after their passing.

Tax benefits
 

Section 80(C) and Section 10(10D) of the Income Tax Act make a policyholder eligible for tax benefits on life insurance premiums.

Retirement planning
 

Some life insurance policies also act as investment options. Pension plans, for example, offer a lump-sum payout as soon as an individual retires.

You can choose from various insurance plans, including term insurance, with IDFC FIRST Bank. Our policies come with substantial life covers at affordable premiums, helping you build a secure future for your family without affecting your present.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.