Page 43 - Insurance Times April 2021

business, home, crops or livestock because their loss will her beneficiaries following an accident that often results in
cause you financial loss that may be quite difficult to cope injury, disability or death.
with, at times even changing completely the lifestyle of your
family. In order to buy valid insurance, always ensure that the
insurance agents you are dealing with are licensed by the
It is advisable to arrange for health insurance for yourself IRDAI. Deal with an insurance company with an office near
and family because sickness comes suddenly when money is you. This saves a lot of time when you require their services.
not available. You may not even have no time for raising IRDAI is passing a lot of valuable information about
that money. insurance on TV, Newspaper and other print media and
electronic media (Bima Bemisal), both Hindi and vernacular
Education is increasingly becoming more expensive. radio stations, providing reading materials through its
However, the future belongs to the educated and everybody website of at its offices, in many other forms.
would like their children to have the best education. It is
not always possible to have enough money to pay school fees Understanding the Insurance Policy
as well meet other competing needs of life. An education An insurance policy is a legal contract between an insurance
policy can take care of this by allowing you to pay small company and a policyholder. It is the evidence that you are
regular amounts from the time the children are born or insured and is normally issued after paying the premium. As
when still young. a policyholder, it is important that you read and understand
your policy. This will enable you to verify whether it meets
We are all growing old day by day. People are also more your insurance needs. Further, reading the policy will help
likely to live longer after retirement, thanks to medical
you understand your rights and obligations as well as those
advancement. During that time you will not be able work
of the insurance company. There are a number of terms used
due to old age yet you still have needs to meet. It is,
in an insurance policy and which, as a policyholder, you need
therefore, advisable to arrange for income to rely on during
to understand and familiarize yourself with:
these times. Life policies, investment plans, pension plans,
annuities, and deposit administration schemes are best
Title of Policy: This section indicates the class or type of
suited to meet old age needs.
policy that you are taking and also includes the name and
Illness is a risk we live with right from birth to death. It is address of the insurance company.
important to plan for illness in order not to be caught
unawares should it strike. Illness can at times be critical e.g. The Preamble: Sets out the necessary conditions that
must be met by the parties before the completion of an
stroke or heart attack. Medical policies take care of hospital
insurance contract. It identifies the parties to the contract,
expenses incurred as a result of illness.
the agreement, the proposal form, the premium amount,
We are always exposed to accidents either falling off, getting refers to the policy schedule, any report or other document
mugged or hit by a vehicle or any object. Personal accident relating to the policy, policy terms and conditions,
policies pay a given sum of money to the policyholder or his/ compensation upon the happening of the insured event and
the sum insured.

Policy Schedule: Outlines your name and address; type
of policy taken; the policy number; your business or
profession; date of commencement of cover; period of
insurance; sums assured; premium amount and provision for
signature of the insurance company's authorized official. It
also contains cover limits defining the highest benefits
payable in case of a loss.

Definitions: Defines the terms used in the policy
document. This section is very important and is meant to

The Insurance Times, April 2021 43