FAQs

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.

 

Why do I need Insurance?

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.

 

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.

 

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.

 

What is Reinsurance ?

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

 

What is the period of General Insurance policies?

Typically General Insurance contracts are for one year period only

 

Do I have to renew policy every year ?

Yes