Basics of Insurance

 The basic principle of insurance is that a company chooses to regularly spend small  amounts of money against the possibility of a large unexpected loss. In principle, all policyholders bear their risks together. Any loss they suffer is paid for by their premiums that they pay. 

What is insurance? 

Insurance is a legal agreement between two parties i.the insurance company (insurer) and the person (insured). The insurance company undertakes to compensate the insured for damage if the insured event occurs. Contingency is the event that causes a loss. This may be the death of the insured or property damage/destruction. It is called  contingency because there is uncertainty about the occurrence of the event.The insured pays a premium for the insurer's commitment. 

How does the  insurance work? 

The insurer and the insured enter into a legal contract of insurance known as an insurance policy. The insurance policy contains details of the conditions and circumstances under which the insurance company will pay  the insured sum to  the insured person or the authorized representatives.Insurance protects you and your family from  financial loss. In general, the premium for good insurance coverage is much less for the money paid. The insurance company bears the risk of offering high coverage for a small premium, since very few policyholders actually use the insurance. That's why you get insurance for a large sum at a low price.Any individual or business can apply for insurance from an insurance company, but the decision to provide insurance is at the discretion of the insurance company. The insurance company will review the claim application to make a decision. applicant. 

Reduce risk 

Even if you are in an armored vehicle, there is always  some risk that the map will tip over.You can lead an extremely healthy lifestyle and exercise regularly, but whatever your health condition, there are risks such as: Personal accidents. The point you need to understand here is that no matter how hard you try, there will always be some risk in our activities. It is important to have a thorough understanding of the various risks that can arise throughout life. There are two types of risk: tolerable risk and intolerable risk. For example, we can afford to lose our portfolio with a few hundred or thousandsBut we cannot afford to have our car, worth thousands of rupees, or our house lost or damaged in the same way. At its core, insurance is  about risk reduction. For risks that exceed our tolerance level, insurance products provide a way to protect against specific events/conditions. Click here to stay protected with a comprehensive suite of insurance solutions that Standard Chartered offers you through its insurance partners.

Following are the types of life insurance available in India:  

Life insurance

Health insurance

Car insurance

Education Insurance

Home insurance