NSW, Australia -- (SBWIRE) -- 09/18/2013 -- The Government of West Bengal today released a set of descriptive guidelines to help citizens get a clear idea about insurance schemes available in the market. This government initiative is supposedly aimed at preventing potential investors in insurance schemes from getting duped by fake insurance companies and their malpractices.

The report prepared under the express guidance of some of the topmost members in the State cabinet states that the idea of insurance involves the accumulation or pooling of money from various discrete policyholders and subsequently uses it to finance the losses that may occur to some of them. Thus, the insured parties earn a security blanket that shields them from probable future losses, in exchange of a fee whose amount depends mainly on the kind of event against which the protection is sought. However, not all risks present in the human society can be leveraged to obtain insurances from commercial insurers – these risks must a specific set of characteristics in order to be termed ‘insurable risks’.

For the benefit of customers, the report also chalked out a detailed description on the division of insurance companies. They are broadly subdivided into two groups – life insurance companies, which sell life insurances and annuities, besides making occasional forays in the selling of pension items, and non-life insurance companies which specialise in selling most insurance schemes that are not included in the basket of Life Insurance Companies.

In a bid to make funeral insurance schemes more attractive to the residents of the state, a brief case study detailing the important elements of this insurance was also inserted in the report; this case study concerns itself with the various aspects of funeral insurance. It included two parties – the seller is the insurer who generally represents himself as an organisation with commercial motives, and the buyer is the one who wishes to get insured. The funeral policy holder (insured) makes a payment of a certain sum of money to the insurer, assuming that the amount is the nominal monetary compensation that he must make in order to avert the possibility of suffering greater financial losses in the future. In return for the payment, the insurer issues a funeral cover, through the process of indemnification, which acts as a financial security blanket which takes care of the insured’s final expenses.

The validity and legitimacy of the transaction is established by a funeral insurance plan which provides an elaborative description of all the elements involved in the insurance scheme and also lists causes and circumstance which may render the insurance invalid or necessitate its cancellation. Preserving the contract is of utmost importance to both parties, since it serves as a legal document validating the transaction between the buyer and the seller.

However, it was not a one-way traffic in favour of funeral plans in the government report. Care was taken to ensure that public also became aware of the potential pitfalls in these schemes – so, a small note of caution was used to let insurance investors know about the malpractices that may exist in certain insurance companies. More details regarding this report are available in the official website of the Bengal government.

Contact via phone on 1300 768 491, via fax on 1300 768 492 or by e-mail with info@funeralinsurance.net.au for more information, additional information can be found on the website at http://www.funeralinsurance.net.au/.

Address: PO Box 6537 Rouse Hill Town Centre, NSW 2155
Phone: 1300 768 491
Fax: 1300 768 492
Email: info@funeralinsurance.net.au
Website: http://www.funeralinsurance.net.au