Insurance is not a matter of convenience but it is a necessity. Ask me why? Because Insurance is a means of protection or reimbursement for an individual, entity from the financial loss against the risk of uncertain loss. So Insurance is a risk management system in a prudent way to face the contingent by transferring the burden from an individual to an insurer.
Let’s compose yourself to know inside and out of Insurance, Line of Business, and the products with a pinch of history. The earlier methods of insurance can be traced back to the third and second BC of distributing risk and transferring were practiced by Indian, Chinese, and Babylonian traders.
The concepts of insurance can be found in many ancient books, scriptures, and writings. The earliest known insurance contract was invented in Italy around the fourteenth century. More recently, in the fifteenth-century Royal Exchange issued the first know life insurance policy.
The modern methods of issuing a policy started in 1666 when thousands of houses were devoured in the great fire of London. From this event, Property Insurance came into existence to insure houses against fire accidents.
Insurance – A legal contract
Technically, insurance is a legal contract or an agreement between two concerned parties i.e. the insurer and the insured. The entity which issues the insurance policy is called the insurance company, insurer, underwriter, or insurance carrier. The individual or the entity that buys the insurance policy is called a policyholder or insured.
The legal contract made between the insurer and the insured detailing the terms and conditions under which the insurer compensates either the policyholder or the nominee is known as an insurance policy. The insurance policy set forth the amount of money charged as a premium for the exchange of compensation promised by the insurer as coverage at an unforeseen event.
Components of an Insurance policy
Before buying an insurance policy one needs to have a strong understanding of the insurance policy. An insurance policy has three basic components – premium, policy limit, and deductible.
You may ask can I pay insurance premium monthly. Yes, the premium of the insurance policy is the price charged for the covered loss usually on monthly basis. The premium is calculated by the type of risk that the insurer wants to cover in the future.
The policy limit is the maximum amount that the insurer promised to pay for a covered loss under an insurance policy. The premium rate is directly proportional to the policy limit. The deductible is the amount charged as a fee from the insurer when they claim insurance. Mostly deductible is used to deterrents a large number of small insignificant claims.
Characteristics of Insurance policy
To issue an insurance policy to indemnify for a risk follows some characteristics typically common for all types of policies.
The loss for which the insurance has to be issued must have a calculable amount. The amount of the loss recoverable with the insurance claim must be reasonably definite and objective.
The rate of the premium tends to be higher relative to the amount that the event is insured for is also high. The event of a loss that happens at a known place and time is called a definite loss. The claim can be objectively verified with sufficient information like time, place, and the cause of the event.
Accidental loss is the events that lie outside the control of the beneficiary or the insurer.
Revolution in buying an insurance policy
Having said that about insurance and its fruition, the arrival of the E-commerce insurance websites that enabled users to compare quotes and buy an insurance policy with complete transactions gave a head-turning look to the whole insurance industry. The growth of technology has made possible the selling of insurance policy conveniently that insurers have ever been struggling for. It is not only a boon for the insurers but a great relief for the insurance policy buyers who wants a convenient policy buying experience for the best price.
E-commerce insurance platforms like InsureAtOasis is an online platform that brings together products from different insurers and issues the policies in real-time. Insurers and their products are compared and listed out with quotes according to the personal details a customer produces to buy with easy installment payment. The customer can choose the best policy which suits their requirements. The more accurate the information was given by the customer the more accurate the products are sorted out with quotes.
InsureAtOasis and its products offerings
A firm knowledge about the types of policies and their benefits allows one to choose a perfect policy for any perils. Let's dive into the non-exhaustive list of products and Line of Business offered at the InsureAtOasis platform.
Motor Insurance: the insurance issued for road vehicles such as cars, two-wheeler, and trucks are known as motor insurance, auto insurance, or vehicle insurance. Car insurance Dubai is the mandatory insurance for all four-wheelers that provides financial protection against the physical damage and bodily injuries caused by an accident.
The motor insurance policy covers not only the loss of physical protection but also protects against the third-party motor insurance liability that could arise from the accident. The rate of premium primarily depends on the value of the vehicle, registered and manufacturing year of the vehicle. The most common damages covered in the motor insurance online policy are traffic collisions, theft, riot, strike, terrorism, fire, earthquake, burglary, landslide, cyclone, and flood.
Home insurance: it is a multi-line property insurance policy that gives protection for a private residence that including liability, possessions, and contents insurance of the home. Home insurance is a single premium paid policy that covers the damage caused to the property, liability, member of the family. The comprehensive contingent that qualifies for the claim is fire, windstorm, smoke, lightning, smoke, explosion, burglary, flood, earthquake, war, nuclear hazard, and intentional acts.
Travel insurance: A travel insurance policy is a comprehensive product that gives protection against unforeseen events and mishaps that occurs during the time of traveling. It usually protects losses incurred both internationally and domestically. The premium of the travel insurance online policy is calculated by the range of factors like age, destination country, duration of travel, pre-existing medical condition of the traveler, and the possession the traveler carries.
Medical insurance: An insurance policy that covers whole or part of the medical expenses a person incurring for risk is called medical or health insurance. One can choose the coverage for the medical emergency according to the severity of risk they face. Health insurance plans are a necessity because they can largely reduce the exorbitant expense for the treatment. Different types of medical insurance cost are available that are tailored for the customers' requirements in our digital insurance platform.
Term insurance: term life insurance provides coverage for a limited time at the payment of a fixed rate. But the term insurance lasts only for a relevant term after the expiry of the term the coverage at the previous premium will not be provided. If the insurer dies before the term expires the coverage is provided to the beneficiary as a death benefit.
The term insurance policy is the least expensive policy to buy for the coverage of financial responsibilities in death. It can also be a pure replacement of income for an individual and also for other purposes in life. Importantly the term insurance plans can be renewed after the expiry of the relevant term.
Critical Care: the critical care policy issues for the treatment of dread disease when the policyholder is contracted with any one of the specified diseases. A lump sum of money is provided upon an individual policyholder who is diagnosed with a life-threatening illness. The coverage is used either for the treatment of the disease or the repayment of the mortgage.
Female critical care: Like critical care, Female critical care aims to provide the policy cover for life-threatening illness but exclusively for the women diagnosed with critical diseases. This product encloses a wide spectrum of critical illness that affects women like breast cancer. It helps women and their family members to act and resolve any disease at the earliest.
Cashback: InsureAtOasis tie-ups Shopcash for providing impressive cashback offers for every customer who buys policy through the shopcash portal. The cashback offer we provide is the largest in the e-commerce insurance portals. The benefit you get through buying a policy with cashback is double the normal insurance policy.
Need for an insurance policy
The covid pandemic taught us the tough way of leading a life. Many people have lost their friends, family members, loved ones in the corona battle. The space they left in our lives cannot be fulfilled and many had lost their security of income with a job loss. All these events repeatedly imply on us to have an insurance policy.
At least we need to think now about the mysterious future that lies ahead. An insurance policy will help to cover the amount for any medical emergencies and their aftermath. A family can sustain itself if one has an insurance policy when the sole earner of the family dies. Insurance plans help the children to pursue their dreams and education even the financial supporter is not around.
Policies like home insurance and motor insurance can save your life and others by protecting with a cover. The unforeseen events cannot be stopped but we can prepare for the uncertainty with a customized policy that suits our requirement.
The bottom line
Insurance is based on the principle of pooling funds from all individuals and entities to cover someone's loss. E-commerce insurance websites like InsureAtOasis works to provide convenient and comprehensive insurance policies for customers. Buying a policy that is tailored for each customer is beneficial for face catastrophic events beforehand. Buy insurance online on EMI to secure and safeguard your life as well as your family's future. Money-saving can be done with ease with a fast online insurance website.