B.COM 5TH SEM ( OBJECTVE OF INTERNAL CONTROL SYSTEM PART - 1 ) ( AUDITING )

B.COM 5TH SEM ( OBJECTVE OF INTERNAL CONTROL SYSTEM PART - 1 ) ( AUDITING ) What is Insurance?
Insurance is a legal agreement between an individual and the insurance company, under which, the insurer promises to provide financial coverage (Sum assured) against contingencies for an amount (premium). Different types of insurance policies available nowadays, can be broadly divided into two categories:

General Insurance
Life Insurance

Different Types of Insurance Policies Available in India
Following are the types of insurance available in India:

1. General Insurance

Following are some of the types of general insurance available in India:

Health Insurance
Motor Insurance
Home Insurance
Fire Insurance
Travel Insurance

2. Life Insurance

There are various types of life insurance. Following are the most common types of life insurance plans available in India:

Term Life Insurance
Whole Life Insurance
Endowment Plans
Unit-Linked Insurance Plans
Child Plans
Pension Plans

Insurance
Loans
Mortgage
Attorney
Credit
Lawyer
Donate
Degree
Hosting
Claim
Conference Call
Trading
Software
Recovery
Transfer
Gas/Electicity
Classes
Rehab
Treatment
Cord Blood

Term Insurance -It is the most basic type of insurance. -It covers you for a specific period. -Your family gets a lump-sum amount in the case of your death. -If, however, you survive the term, no money will be paid to you or your family.
Whole Life Insurance -It covers you for a lifetime. - Your family receives a certain sum of money after your death. -They will also be entitled to a bonus that often accrues on such amount.
Endowment Policy -Like a term policy, it is also valid for a certain period. -A lump-sum amount will be paid to your family in the event of your death. -Unlike a term plan, you get the maturity proceeds after the term period.
Money-back Policy -A certain percentage of the sum assured will be paid to you periodically throughout the term as survival benefit. -After the expiry of the term, you get the balance amount as maturity proceeds. -Your family gets the entire sum assured in case of death during the policy period. This is regardless of the survival benefit payments made.
Unit-linked Insurance Plans (ULIPs) -Such products double up as investment tools. -A part of your premium goes towards your insurance cover. -The remaining amount is invested in Debt and Equity. -A lump-sum amount will be paid to your family in the event of your death.
Child Plan -This ensures your child’s financial security. -In the event of your death, your child gets a lump-sum amount. -The insurer pays the premium amounts after your death. -Your child will continue to get a certain sum of money at specific intervals.
Pension Plans -This helps build your retirement fund. -You can get a regular pension amount after retirement. -In the case of your death, your family can claim the sum assured.
Tax Benefits

Life insurance not only ensures the well-being of your family, it also brings tax benefits.

The amount you pay as premium can be deducted from your total taxable income.

However, this is subject to a maximum of Rs 1.5 lakh, under Section 80C of the Income Tax Act.

The premium amount used for tax deduction should not exceed 10% of the sum assured.

What is General Insurance?
A general insurance is a contract that offers financial compensation on any loss other than death. It insures everything apart from life. A general insurance compensates you for financial loss due to liabilities related to your house, car, bike, health, travel, etc. The insurance company promises to pay you a sum assured to cover damages to your vehicle, medical treatments to cure health problems, losses due to theft or fire, or even financial problems during travel.

Simply put, a general insurance offers financial protection for all your assets against loss, damage, theft, and other liabilities. It is different from life insurance.

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