Insurance can be classified into 3 broad categories, which are :
- Life Insurance.
- Health Insurance.
- General Insurance.
Life Insurance :
Life Insurance covers risks related to the human life. It compensates normally in case of unfortunate Demise but nowadays contracting a Critical Illness also triggers Claim & Compensation is paid to the Insured/Nominee, as per the situation.
There are presently 24 Life Insurers operating in India, as per I.R.D.A.
Health Insurance :
Risks related to health like accidental injuries, ailments & diseases which lead to sudden unexpected huge expenses due to hospitalization & high medical costs can be taken care off, if we are covered under Health Insurance.
There are presently 5 Stand Alone Health Insurers serving Indian citizens according to I.R.D.A.
General Insurance :
Protection cover for all things other than Life fall under the category of General Insurance. It covers everything from vehicles, buildings, electronics, machinery, raw material, finished goods, goods in transit, animals etc.
Health Insurance also falls under this category but due to its ever increasing utility, importance & awareness many companies deal specifically in it & are called Stand Alone Health Insurance Companies. However, all General Insurers provide Health Insurance covers.
According to I.R.D.A. there are 28 General Insurance Companies working in India (Including 5 Stand Alone Health Insurers).