Insurance policies can broadly be classified into three major groups which are general insurance, life insurance and other insurances.
Life insurance is the most popular type of insurance in India. This type of insurance applies to the life of an individual in case they die during the term of the policy. With life insurance policies, only when a policyholder dies or the policy matures does a policyholder receive the insurance amount. Some of the types of life insurances in India are:
- Endowment Policy – The policyholder gets a lump sum amount if they die or the policy matures, whichever is earlier.
- Term Policy – A policyholder receives fixed payments over the term period of the policy.
- Whole-life plan – Lasts for the entire duration of the applicant’s life, until his or her death.
- Money-back plan – is a form of investment that works almost the same as an endowment policy.
- ULIP – Unit Linked Insurance Plans are insurance plans that are invested in assets. The value of the plan is related to the value of the investments made behind it.
General insurances in India include Personal insurance, commercial insurance, rural insurance and industrial insurance. These are:
- Personal Insurance – a personal insurance covers an insurers family in the unlikely event of death or an accident to life, vehicles, property, etc. Some of the types of personal insurance are medical insurance, accident insurance, vehicle insurance, property insurance, etc.
- Rural Insurance – individuals living or running a business in a rural area can avail of rural insurance. Example, a farmer can take rural insurance to protect his crop from natural disasters such as drought, etc. Some of the types of rural insurance are motor insurance (tractors and machinery), health and accident insurance, shop insurance, cattle insurance, family insurance, hut insurance, etc.
- Commercial Insurance – are insurances taken to protect against any liability in the form of theft or damage to property. Employee injuries are also covered by commercial insurance. Some of the policies under commercial insurance include glass insurance, burglary policy, money insurance, marine (and cargo) insurance, etc.
- Industrial Insurance – companies apply for industrial insurance policies for contracts, construction projects, equipment, theft, fire, loss or damage to materials, etc. Some of the types of industrial insurance are machine breakdown insurance, deterioration of stock insurance, fire policy, storage insurance policy, etc.
- Home Insurance – Insurance is available on homes to protect the policyholder in case there is damage, loss or liability from a home.
- Travel Insurance – Travel insurances are available for domestic and international travel by bus, train, flight, car, etc. Also, it includes non-medical and medical expenses.
- Luggage Insurance – For insuring luggage when traveling by flight, domestically or internationally.