Avishek's Journal Avishek Banerjee

How Insurance Works

Insurance is a financial product sold by insurance companies that safeguard you or your assets from damage & loss.

How it works

When you buy a policy you make regular payments (called premiums) to the insuring company. These premiums can be paid monthly, quarterly, half-yearly and annually, depending on the insurance company.

If you make a claim and it ticks all the conditions, the insurance company will pay for the loss that is covered under the policy.

If you don’t claim it, then you don’t get your money back. That money is pooled with the money or premium of other policyholders of the same company.

How is the premium calculated?

It’s simple. The higher the probability of the event, the higher will be the risk for the insuring company. Thus, higher will be the amount of your premium.
The conditions can be calculated by considering numerous factors.
For example, life insurance of a fit and young person will have a lower premium as compared to an older person with diabetes. As the younger person is less likely to face fatal consequences than the diabetic person.

Should you buy a policy?

Well, that completely depends on your plans with life. Generally, it is safe to have a policy done.

One of the factors that are affecting the economic recovery of the Nation. 



In March 2020, the Reserve Bank of India had announced a moratorium on the repayment of all term loans for both businesses and households, to ease their burden during the period of the lockdown.

Initially, it was allowed for 3 months but then extended till August.
“Data from the RBI’s latest financial stability report shows that at the end of April around half of the customers of scheduled commercial banks, accounting for half of the outstanding bank loans, opted to avail of the relief measures extended — underlining the precariousness of their financial position.” – Quoting what is written by The Indian Express.

As economic growth is slowing down, it is adversely affecting NPA (Non-Performing Assets). Anyway, it was on the downfall even before the COVID-19 situation hit. The sector is being hit bad and a few banks will be under the required capital requirements and thus will have to raise capital. (Back to start-up phase I guess).

However, the moratorium period might be extended by the RBI or a one-time restructuring of loans will be opted for the stressed sectors.
To conclude, the financial sector is suffering and this is slowing down the economic recovery.

Robben & Ribery

Never has been a better wing duo in Bundesliga
A duo loved by the different worlds
Cutting in from the left and right
Incredible success between the two stalwarts
The legendary Robbery faded away from the arena
I am just lucky I was there to witness it all
A story to tell the next generation
A story to cherish till my death call
Love, respect, fear, happiness, sadness
Dominating Europe and the international hearts
But at the end all good things end
And new generation starts.

I got to interview respected Gita Balakrishnan to know a bit more about the field of Architecture. She is the Founder of Ethos & ACEDGE. The Chairperson, Indian Institute of Architects, West Bengal Chapter.  It is a long story on how I ended up interviewing her but nonetheless, it was an absolute honor to interact with her.