Insurance is a legal agreement between a policyholder and an insurance company wherein the latter promises to compensate the former in the event of a loss. The covered event is contingent in nature as it may or may not occur. Thus, an insurance policy keeps the policyholder shielded against such contingent events which may result in a loss. In return of this promise, the insured is required to pay a premium to the insurance provider.

Unfortunate events like accidents, illnesses, and natural disasters come without any warning and thus it is necessary for you to keep yourself and your loved ones shielded against such unforeseen happenings. One of the best and simplest ways of keeping yourself secured against these contingent events which may cause a financial loss is buying an insurance policy.

Insurance works in a very simple manner. When you buy an insurance policy, you sign a legal contract with your insurance provider wherein it promises to make your losses good in the event of loss due to any of the events mentioned in the agreement. In return of this promise, you are required to pay a premium amount which can be either a single payment or can be paid in installments at monthly, quarterly, half-yearly, or yearly intervals. On the occurrence of any of the covered events during the policy tenure, you just need to intimate the insurance provider about the loss and the latter will provide you with compensation in accordance with the amount agreed in the contract. The compensation can be a lump sum amount or in the form of regular payouts, as agreed at the time of contract signing.

Insurance can be broadly divided into two categories – life insurance and non-life/general insurance. Life insurance is further divided into various types of plans namely Term Plans, Unit-Linked Insurance Plans (ULIPs), Endowment Plans, Child Plans, Retirement Plans, Savings Plans, Personal Accident Cover, etc. All other types of insurance plans such as car insurance, bike insurance, health insurance, travel insurance, home insurance, fire insurance, marine insurance, etc come under the non-life/general insurance category.

There are two ways in which you can make a claim:

• Cashless claims:  Get in touch with your insurer and inform them about your claim. Depending on the type of insurance (motor/health), the insurer will guide you about the cashless claim settlement process. In case of motor insurance, the insurer shares the details of a nearby cashless workshop if available and you just have to pay your part of the liability to get your car/bike repaired. In case of health insurance, you can get in touch with your TPA (Third Party Administrator) help desk at the time of hospitalization for a cashless claim.
• Reimbursement claim:In case of unavailability of a cashless facility, you need to make a reimbursement claim. In case of motor insurance, you need to pay the entire claim amount up front (after informing the insurer of the claim) and get it reimbursed from the insurer after the repair of your car/bike. In case of health insurance, you need to pay the entire bill amount to the hospital (after informing the insurer) and get it reimbursed from the insurer post discharge from hospital.

Sasta Bhima Bazar is an online platform that lets you compare insurance policies from top-rated insurance companies and purchase the insurance policy that best suits your needs. Buying an insurance policy on Sast Bhima Bazar is very simple. You just need to choose the type of policy you want, fill in the required details, compare various quotes and make payment. And you are done! Your insurance policy is issued.