Rules for Insurance Coverage

Rules for Insurance Coverage


Insurance is essentially a contract between the insurer and policy owner. Insurer agrees to pay an amount to the person insured or his nominee at any unfortunate event (according to the policy) or at the date or maturity or at death of the policy owner. Policy owner has to pay a fixed amount called premium in periodic intervals (monthly, quarterly, half yearly or yearly). Premium amount varies depends on many factors like age of the policy owner, scheme, type of the policy, sum assured etc.
The various types of insurances are:
Car Insurance
If you use an automobile for your business activities - for example, transporting supplies or products, visiting customers, or ferrying employees or customers - you need to make certain your automobile insurance will protect you from accidents that occur while on business. Car insurance takes care of all this.
Health & Disability Insurance
Health insurance is needed to cover the medical costs if you fall ill or hurt yourself and Disability insurance is needed if you are unable to work because of sickness or injury. Insuring Workers
Once you hire an employee, it becomes your duty to compensate to cover what it costs if the employee is hurt on the job and needs medical treatment and income until he can return to work. Compensating injured workers insurance policy takes this load off your head. Umbrella Policies
An umbrella policy offers you extra liability insurance that pays for a loss when the limits of your policy are reached. Suppose, if you're responsible for someone's injury that requires Rs.1, 50,000 of medical treatment and the liability limit in your underlying policy is Rs.1, 00,000, your umbrella policy will pay the additional Rs.50, 000.
Four key rules of insurance coverage:
1. Insure against the big catastrophes and disasters only. Differentiate what you can't afford to pay for out of pocket and always remember that "the cheapest insurance is self-insurance".
2. Carry the largest possible deductibles you can afford. The larger the deductible, the more you are self-insuring and the cheaper the premium will be.
3. Trust only the best-rated insurance companies. You need insurance companies you can depend on and no hidden costs and conditions.
4. Choose your agent carefully. He should not be a mere third party, rather he should be the first person you contact in case of an emergency knowing that he will take a prompt action on the insurance front while you take care of the damage.
5. Study your insurance plan very carefully and discuss every situation possible. Also study the feedback given by previous or existing customers of the company.
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Tarang Bhargava is the CEO of Vexat Inc. and has an affiliate marketing experience of six years. The website http://www.EarnCashOnline.in is Affiliate Marketing invitation that provides an opportunity to Indians to make money through internet using his experience.
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