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Types of Insurance Available Out There in the Market

12 Feb 2019

Health Insurance Article

What is an Insurance?

Insurance is a contract between two parties – the insured (beneficiary) and the insurer (company). The insurer promises to pay a pre-fixed amount to the beneficiary upon the occurrence of a contingent event. To receive the amount, the beneficiary must make regular payments called premiums. Example of contingent events is death, critical illness, theft, fire, earthquake etc. An insurance policy can be taken by an individual as well as a corporate entity for various risks associated.

General Insurance:

Any non-life insurance policy is categorized under the umbrella bucket of general insurance. Typically, general insurance policies are for a shorter duration as compared to life insurance policies. Popular general insurance policies include the following-

Health insurance: this type of insurance policy is meant to cover the costs which are associated with the health of the individual or the family members. The policy can cover the costs incurred for the treatment of specified critical illness, hospitalization charges, day-to-day care at medical centres etc. Given the lifestyle that we lead, health insurance is a must in today's time.

Auto insurance: It is important to protect your two-wheeler or four-wheeler against the risk of theft, own damage due to accidents and from calamities (both natural and man-made) using a motor insurance policy. Insurers also provide protection arising from third-party liability (which is mandatory as per the Motor vehicle Act).

Home insurance: A home is one of our most cherished possessions. Therefore, it is important to protect our house from any damage that may be caused due to accidents or calamities by way of a home insurance policy.

What are the tax benefits associated with insurance?

The primary reason for people to opt for an insurance policy is to avail the host of tax benefits that come with it. We have set out below the key benefits that you can receive on your taxation:

If you take a health insurance policy, the policy payments for self or family will provide you with a tax deduction of Rs 25,000. In case of premium payment for parents who are below 60 years old, the tax deduction is of Rs 25,000. If your parents or family members are above the age of 60 years, an amount of Rs 50,000 is eligible for a tax deduction. In addition to the above, health insurance policies in case of Hindu Undivided Family (HUFs) is available for a tax deduction of INR 25,000 where the premium is paid for the health insurance of one of the members of the HUF. Expenditure incurred for any preventive health check-up is covered under health insurance and makes you for a tax deduction of INR. 5,000 whether the check-ups is for yourself or your spouse or children or parents.


Given the plethora of options available in the market, you should choose well. At Liberty General Insurance, we have car insurance, two-wheeler insurance, health insurance, as well as insurance for individual personal accident. The company also offers other products. To know more, click here

Disclaimer: For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale. *The discount amount will vary subject to vehicle specification and place of registration.

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Trade Logo displayed above belongs to Liberty Mutual and used by the Liberty General Insurance Limited under license. For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale.