Insurance is a means to get compensation for a financial loss that you suffer. The policy covers specific contingencies and if you suffer from such contingencies, the economic loss that you suffer is paid by the insurance plan. Different insurance policies cover different types of contingencies and so to know the exact coverage available under insurance, you need to look at the different types of insurance plans independently.
So, let’s assess the most common 3 types of insurance coverage offered under some of the most popular types of insurance policies in India.
Life insurance policies are those which cover a human life against the risk of dying too young and also against the risk of living too long. Different types of life insurance plans are available in the market covering the different types of financial needs that you have. These plans include the following –
Insurance Coverage Under Life Insurance Policies:
Another popular category of insurance is health insurance. Health insurance plans are designed to cover the medical costs that you incur if you are sick or wounded and you need hospitalisation. These plans, therefore, provide financial support against expensive medical costs.
Insurance Coverage Under Health Insurance Policies:
Health insurance plans also come in many different variants. These variants and their coverage benefits are described below –
These health insurance plans cover the actual medical costs that you incur when you are hospitalised. The coverage benefits under different plans differ but some of the common coverage benefits which are found in health insurance plans are as follows –
Insurance coverage benefits
What is covered
Expenses incurred when you are hospitalised for 24 hours or more. These expenses include –
Pre hospitalisation expenses
Expenses incurred before you are hospitalised
Post hospitalisation expenses
Expenses incurred after you are discharged from the hospital
Day care treatments
Treatments which result in hospitalisation but the hospitalisation is not for 24 hours because of advanced medical treatments
Organ donor expenses
Expenses incurred in harvesting an organ from a donor for transplanting it in your body
Treatments taken at home because of non-availability of hospital beds or because you cannot be moved to a hospital
Expenses incurred in childbirth, both normal and Caesarean as well as pre and post-natal expenses
Expenses incurred in transporting you to the hospital in an ambulance
Expenses incurred on non-allopathic treatments like Ayurveda, Homeopathy, etc.
Critical illness plans are fixed benefit health insurance plans. These plans cover a specific list of critical illnesses and treatments. If you are diagnosed with any of the covered illness or if you undergo any covered treatment, the policy pays the sum insured in lump sum irrespective of the actual medical costs that you incur.
Some common critical illnesses which are covered by critical illness health insurance plans are as follows-
Like critical illness plans, hospital cash plans are also fixed benefit health insurance plans. These plans pay you a fixed amount of benefit on a daily basis if you are hospitalised. These plans do not have a specific coverage feature. They cover hospitalisation for 24 hours or more and pay a benefit each day of hospitalisation.
Motor insurance plans include car or bike insurance plans. These plans are mandatory as per the Motor Vehicles Act, 1988. Motor insurance plans come in two variants and the insurance coverage under each variant is different.
Insurance Coverage Under Motor Insurance Policies:
Let’s, therefore, check the variants and the insurance coverage provided by each –
Third-party liability plans are a legal necessity and they provide the basic insurance coverage which is required by law. Coverage under third party liability plans are allowed for financial liabilities which you, the vehicle owner, would face if your vehicle causes any of the following contingencies –
Under the first two instances, insurance coverage is allowed for an unlimited amount. However, for property damage cases, insurance coverage is limited to INR 7.5 lakhs under both car and bike insurance plans.
Comprehensive package policies, as the name suggests, provide a comprehensive scope of insurance coverage to vehicle owners. The policy covers third party liabilities as well as the damages suffered by the vehicle itself. Insurance coverage under comprehensive plans are, therefore, offered for the following contingencies –
So, the motor insurance policy that you choose will determine the insurance coverage which you can avail.
The insurance coverage, therefore, is specific to the type of insurance policy that you buy. A life insurance policy covers the risk of premature death while a health insurance policy provides coverage against medical expenses. A motor insurance policy, on the other hand, covers any legal liability that you face in an accident and also covers the damages that your vehicle suffers. So, when buying a policy, understand the scope of insurance coverage offered by the policy. Choose a policy whose insurance coverage is comprehensive and suitable for your requirements.
List of top insurance policies offered by Insurance Definition Types Benefits Features India