INSURANCE
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured, their designated amount also called premium.
TYPES OF INSURANCE
General Insurance
01
General insurance covers non-life assets, such as houses, vehicles, health, events, travel, and more.
Life Insurance
03
Life insurance covers an individual’s life and fixed health benefits like critical illnesses e.g. Cancer, heart ailments etc.
Accounting treatment of General Insurance and Life Insurance
online policy bazaar
Policybazaar was founded in 2008 with one objective: bringing transparency in insurance. The founders wanted to reimagine insurance, so they started by simplifying all the information around plans, ending the rampant mis-selling, and preventing policy lapses.
It provides a digital platform—website and an app—where users can compare insurance policies and other financial services from major insurance companies.
Benefit of Online Policy Bazaar
- Affordable Premiums
When buying online insurance, customers directly deal with an insurance company. Hence, the agents’ and the distributors’ commission is saved. Besides, the entire process requires less paperwork as it is done via the internet. As a result, the cost of stationery is also saved and so, it is cost-effective
- Make an Informed Deal
Buying online insurance enables a customer to get an informed deal.Hence, whenever you decide to buy a plan online, you always have an option to compare different plans in terms of benefits, coverage, features, premiums, claim process, renewal, etc.
- More Convenient
Online insurance purchase is more convenient than buying it offline. Moreover, you can apply for a policy at any time that is convenient for you. You do not have to visit the insurance company’s office or check the office hours to get yourself an insurance plan.
- Online Reviews
While buying an insurance plan online, you can check the reviews of existing customers to get an overall idea about the product as well as the services offered by the insurance company. If you buy a plan via other sources, this first-hand feedback is missing as only online services offer customer reviews to guide a buyer.
- Security of Policy Document
Hard copies of the policy document are quite easy to lose. The worst part is that it is a cumbersome process to reissue a duplicate policy document from the insurer. This situation can be avoided if you buy the policy online. In online insurance, the policyholder receives a soft copy of the document in his/her email. So, even if you lose the hard copy of your policy papers, you can access the soft copy from your email.