India’s insurance sector has grown tremendously over the past two decades. From just one state insurer in the 1990s, the market today has over 60 companies offering a wide range of insurance covers to suit varied needs. This article provides an overview of the major types of insurance policies available in India and the key insurance companies operating in the country.
Life insurance provides financial protection to your family in case of your untimely demise. The main types of life insurance plans in India include:
Term Insurance – Offers high sum assured at low premiums for a specified policy tenure. Ideal for income replacement.
Whole Life Policy – Provides lifelong cover along with cash value accumulation. Premiums payable throughout life.
Endowment Plans – Provides lump-sum payout on maturity and life cover for entire term. Useful for financial goals.
ULIPs – Unit linked plans investing premiums in equity and debt funds to earn market-linked returns with insurance cover.
Moneyback Plans – Provides periodic survival benefits payouts during the policy term along with life cover. Useful for periodic expenses.
Leading life insurance companies in India include Life Insurance Corporation of India (LIC), ICICI Prudential Life, HDFC Life, Max Life, SBI Life, Tata AIA Life, Kotak Life, PNB Metlife, Birla Sunlife and more.
Health policies help cover hospitalization expenses incurred due to illness/accidents. Main types include:
Individual Cover – Covers self, spouse and children up to a certain sum insured and age. Has options like family floater plans.
Senior Citizen Plans – Special plans with customized benefits for people above 60 years of age.
Critical Illness Plans – Lumpsum payout on diagnosis of major illnesses like cancer, heart attack, stroke, etc.
Hospital Cash – Fixed daily allowance for each day of hospitalization to cover incidental medical expenses.
Top health insurance providers are New India, United India, Oriental Insurance, ICICI Lombard, Bajaj Allianz, TATA AIG, HDFC Ergo, Max Bupa, Star Health, Manipal Cigna etc.
Motor insurance is mandatory for all vehicles as per law. Types include:
Third Party Liability – Covers legal liabilities arising out of damage or injury caused by your vehicle to third party.
Comprehensive Plan – Covers own vehicle damage along with third party liability. Has add-ons like zero depreciation, engine protector etc.
Standalone Own Damage – Covers only own vehicle damage without third party liability.
Leaders in motor insurance are New India Assurance, Oriental Insurance, National Insurance, ICICI Lombard, Bajaj Allianz, HDFC Ergo, TATA AIG, Reliance General, IFFCO Tokio etc.
Home insurance provides all-in-one protection for your home building structure and content against damages. Key covers include:
Fire – Covers loss or damage to home and contents due to fire accidents.
Natural Calamities – Protects against flood, storm, cyclone and other natural perils.
Burglary – Covers loss due to housebreaking, theft and larceny.
Plumbing & Electrical Breakdown – Repair costs for sudden and accidental damages to plumbing and electrical equipment.
Popular home insurers are HDFC Ergo, Bajaj Allianz, ICICI Lombard, TATA AIG, New India, National Insurance etc.
Travel policies offer protection against financial losses while traveling within India or overseas. Main covers are:
Medical Expenses – Hospitalization and other medical treatment costs during travel.
Repatriation of Remains – Transportation of mortal remains to hometown.
Loss of Checked-in Baggage – Coverage for complete, permanent loss of checked-in luggage by carrier.
Personal Accident – Compensation for death, disability or injury due to accident during travel.
Trip Cancellation – Reimbursement if trip is unavoidably cancelled due to specified reasons.
Trip Delay – Pays for additional costs if trip is delayed beyond specified number of hours.
Leading travel insurance companies are Bajaj Allianz, TATA AIG, ICICI Lombard, HDFC Ergo, New India, Chola MS, Royal Sundaram etc.
Various insurance policies catering to diverse business needs include:
Business Interruption – Covers loss of income and fixed operating costs due to temporary shutdown of business after insured events.
Fidelity Guarantee – Indemnifies against financial losses due to fraud or dishonesty by employees.
Directors and Officers Liability – Protects directors & officers against claims of wrongful acts in their managerial capacity.
Property/Assets Insurance – Insures office premises, buildings, plant & machinery, stock, equipment etc. against damages.
Errors and Omissions Liability – Covers legal liabilities arising out of errors and omissions made by professionals like doctors, architects, auditors etc.
Major commercial insurers are New India, United India, National Insurance, HDFC Ergo, ICICI Lombard, Bajaj Allianz, Reliance General, TATA AIG etc.
Specialized insurance covers catering to rural needs include:
Pradhan Mantri Fasal Bima Yojana (PMFBY) – Protects crop loss due to natural perils, pest attacks for farmers.
Pradhan Mantri Suraksha Bima Yojana – Accident insurance scheme covering accidental death and disability.
Pradhan Mantri Jeevan Jyoti Bima Yojana – Life insurance scheme that offers cover for death due to any reason.
Key rural insurance providers are LIC, ICICI Lombard, HDFC Ergo, Bajaj Allianz, Agriculture Insurance Company of India Limited etc.
To conclude, India’s insurance sector provides policies spanning life, health, motor, home, travel, commercial and rural insurance from trusted public and private insurance companies. Evaluate your insurance needs and choose suitable plans from the company offering optimal features and benefits. Periodically review policies to ensure continued adequacy of insurance coverage.