Investment Products – Others

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General Insurance
Health care and Disability Insurance products

Total & Permanent Disability (TPD) - It pays a lump sum amount. The payment is made in
case the individual is unable to work, loss of limbs or sight or he/she is unable to perform basic
living activities.

Income Continuation - It ensures a regular monthly payout. Payment is initiated on total and
not necessarily permanent disablement.

Trauma Insurance - This covers the occurrence of life threatening diseases and pays a lump
sum.

Health Insurance - This covers medical treatment costs for illnesses.

The Employees’ State Insurance Act 1948 provides for an integrated need-based social
insurance scheme. It protects the interests of workers in the event of contingencies such as
sickness, maternity, temporary or permanent physical disablement, or death owing to
employment injury resulting in loss of wages or earning capacity.

Property & Liability Insurance

This covers insurance for material items and any losses arising from/due to them.

Coinsurance is a penalty imposed on the insured by the insurance carrier. Penalty is imposed
for under reporting/declaring/insuring the value of tangible property or business income.

In case of over insurance, the insurer will not pay more than 100% of the claim value. This is
because someone might deliberately damage the property in order to make a profit through the
claim.

Types of Property insurance

Indemnity - the insured receives the market value of the asset - that is, typically, the
depreciated value of the asset.

Replacement - the insured receives the amount needed to rebuild the asset to the same level
as the old one with the incentive of getting a new asset for an old one.

Property Insurance can be taken for the property and the contents within the property.

Personal Property Insurance - Specialized personal contents such as paintings and

sophisticated tools are beyond the scope of contents insurance and needs to be covered
individually.

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 Investment Products – Others
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Personal liability insurance provides cover against any liability arising out of injury caused to
a person or damage to a property resulting from an accident (other than a car accident).

Motor Insurance – This covers third party claims, and property damage during accident.

Commercial Insurance - These are insurance covers required for a commercial enterprise.
These include: Key person Insurance,Business overhead insurance,Worker’s compensation etc.

For example:

The Workmen’s Compensation Act 1923 defines the amount payable to the worker under
different scenarios. Compensation is received in case of –Industrial accidents and/or Certain
occupational diseases

Key Person insurance is a policy to mitigate the loss to business owners arising from the loss of
a key person owing to incapacity, disability or death.

Annuities

An annuity is a regular monthly payment for life or another defined period. It transfers an
accumulated sum of money into a series of payments over a number of years or a lifetime.

You can have immediate annuities that make payment immediately or deferred annuities that
delay payment to a defined future period.

©Finitiatives Learning India Pvt. Ltd. (FLIP), 2010. Proprietary content. Please do not misuse!