Answering your most googled questions on Insurance Awareness Day

Almost every young Indian has a plan for the future. Some hope to start a business, others want to purchase a luxury vehicle, and everybody plans their finances to afford their dreams. While savings and investments empower us to achieve our aspirations, we often forget about the crucial role insurance plays in safeguarding our futures. Across India, insurance remains a mystery that young professionals seem wary to crack. Thankfully, we’re here to help. On Insurance Awareness Day, let’s understand our options to secure our finances and futures.

A: Many people across India do not have adequate knowledge about the insurance coverage options available. International Insurance Awareness Day offers an opportunity to learn about various plans, their features, and benefits. It is also a good day for insurance companies to educate customers and the public on their offerings and help dispel myths and misconceptions.

As we commemorate National Insurance Awareness Day, let’s take a moment to demystify insurance by answering some of the most commonly asked questions.

A: All insurance plans fall under two umbrellas – general insurance and life insurance. Life insurance offers financial protection after the policyholder’s death. General insurance policies, on the other hand, cover a wide range of risks. Life insurance plans often have long tenures, often 20 years or even more. General policies, however, usually have to be renewed annually. The easiest way to understand the difference is by thinking of life insurance as a large umbrella. It protects your loved ones from the financial storm of something happening to you. General insurance is like a set of raincoats. Each protects you and various possessions from different kinds of storms.

A: India made a specific type of motor insurance mandatory by the Motor Vehicles Act of 1988. All vehicle owners must purchase third-party liability coverage with their cars and bikes to ensure financial protection for others on the road. It offers financial coverage to pay for any damage to property or injuries to third parties (people other than yourself and passengers in your vehicle) if you cause an accident. The policy safeguards them from the burden of hefty expenses in case of an accident.

A: Third-party insurance is limited to liabilities to third parties, while comprehensive insurance covers third-party liabilities and damage to the insured vehicle. A comprehensive policy helps with repairs and replacements after damage caused by an accident, a natural calamity, or a theft attempt. Comprehensive coverage is optional. However, most vehicle owners opt for it since it offers better financial protection.

A: The premium for your motor insurance in India depends on several factors. The vehicle’s make and model, current market value and geographical location, and your previous driving record impact the premium calculation. Insurance companies evaluate the risk of covering your car and offer a premium amount accordingly. Each company uses a unique formula, so always compare costs from multiple insurance companies before finalising your plan.

A: Many young people ask themselves why they should spend money on health insurance when they’re young and healthy. The truth is that medical care across India, especially in private hospitals, is expensive. Costs are rising rapidly and even simple procedures and hospitalisations can significantly impact an individual’s finances and drain their savings. Health insurance helps cover the cost of medical procedures, providing financial protection during emergencies. Knowing you have health insurance provides peace of mind, enabling you to seek necessary treatment without worrying about financial constraints.

A: Purchasing health insurance in India can seem like navigating an intricate maze. Primarily, you can choose between individual or family floater policies. Individual plans offer coverage for one person. The premium depends on their medical history and potential risks in the future. A family floater policy covers multiple family members under a single plan. The sum insured amount gets shared by all covered members during the policy year. The premium typically depends on the age of the oldest family member. Many insurance companies offer senior citizen health plans tailored to meet the unique medical needs of individuals above 60 or 65. Apart from these policies, you can also enjoy coverage under group health policies. Several businesses, housing societies and other groups offer coverage to members under these plans.

A: There is no simple answer to this question. General insurance has become a cluttered market. Individuals often struggle to select a policy that meets all their needs. You must list your requirements and budget and look for policies that offer adequate coverage without pinching your pocket. Evaluate the offerings and costs of multiple insurance companies. Check the add-ons and ensure you customise the policy to meet your needs. Before finalising your plan, check the insurance company’s claim-settlement ratio. A high ratio indicates a higher probability of getting your claim requests settled quickly.

A: You can participate by taking the time to look at your existing policies. Consider whether you need to change your insurance company, upgrade to a comprehensive plan, or boost your sum insured amount. If you don’t have motor or health insurance yet, visit the Zuno website to browse our offerings and find a plan that suits your needs.

Educating yourself about insurance empowers you to make informed financial decisions while planning for the future. Remember, the right insurance plans can safeguard your savings and keep your other financial goals on track. Take a moment to evaluate your needs and identify plans that suit your requirements. At Zuno, we offer customisable policies with a range of add-ons that enhance your coverage. Visit our website today to secure your financial future and participate in celebrating Insurance Awareness Day.

ARN: Zuno/Blog/Insurance awareness day/06/24/03.

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