Frequently Asked Questions about Life and Non-Life Insurance products in India
Life Insurance Basics
Life insurance is a contract between an insurer and policyholder where the insurer guarantees payment of a death benefit to beneficiaries upon the policyholder's death, in exchange for premium payments.
The main types are Term Insurance (pure protection), Endowment Plans (protection + savings), ULIPs (investment-linked), and Whole Life Policies (lifetime coverage).
Non-Life Insurance Basics
Non-life insurance (general insurance) covers assets against risks like accidents, health issues, natural calamities, and liabilities. Common types include health, motor, home, and travel insurance.
Life insurance covers human life risk, while non-life insurance covers assets/liabilities. Life policies are long-term, whereas non-life policies are typically annual contracts.
Purchasing Insurance
A common rule is 10-15 times your annual income. Consider liabilities, dependents' needs, and future expenses.
Yes, but with waiting periods (typically 2-4 years). Some insurers cover them from Day 1 with extra premium.
Claims & Settlement
For life insurance: Submit death certificate and claim form. For health: Cashless requires network hospital approval, reimbursement needs bills. For motor: Inform insurer immediately after accident.
By regulation: Life claims must be settled within 30 days of document submission. Health claims: 30 days for cashless, 7 days after document submission for reimbursement.
Tax Benefits
Premiums qualify for deduction under Section 80C (up to ₹1.5 lakh). Maturity benefits are tax-free under Section 10(10D) if conditions are met.
Yes, under Section 80D: Up to ₹25,000 for self/family (₹50,000 for senior citizens) + additional ₹25,000 for parents' insurance.
Regulation & Grievances
The Insurance Regulatory and Development Authority of India (IRDAI) regulates all life and non-life insurers.
You can appeal to insurer's grievance cell, then approach IRDAI's Integrated Grievance Management System (IGMS) or Insurance Ombudsman.
Special Products
A variant where all premiums paid are returned if the policyholder survives the term, while maintaining the death benefit.
It covers third-party liability + own damage (accidents, theft, natural calamities) + personal accident cover for owner-driver.
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
