Coverage in insurance refers to what your insurance policy protects you against and what benefits the insurer will provide when a covered event happens.
Simple Meaning
Coverage = The specific risks, losses, or events your insurance will pay for.
Examples
1. Health Insurance Coverage
- Hospital bills
- Surgery expenses
- Room rent
- Ambulance charges
- Medicines
These are the things the policy covers.
2. Car Insurance Coverage
- Damage to your car
- Theft
- Accident repairs
- Third-party damage
- Natural disaster damage
3. Life Insurance Coverage
- Pays the sum assured to your family if you die during the policy term.
Why Coverage Matters
- It tells you what is included
- Helps you understand what the insurer will pay for
- Helps avoid claim rejection
- Determines how useful the policy is
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