What is General Insurance?
It protects against losses that may or may not occur, any insurance policy is not life insurance may be classified as general insurance. Below are the major risks that are covered by general insurance policies.
It covers insurance of property against fire, burglary, theft, personal insurance covering health, travel, accidents, and liability insurance covering legal liabilities. This insurance virtually covers all forms of insurance except life, other covers may include insurance against errors and omissions for professionals and credit insurance etc.
Types of Insurance
Health Insurance
Health insurance is an insurance that is part of the whole person or part of the risks of medical expenses, which spread risk to a large number of individuals, by estimating the overall risk of health care and health systems at the risk pool, insurers can develop regular financial structures, such as monthly premium or payroll taxes to pay for the healthcare benefits specified in insurance.
This benefit is governed by a central organization such as government agency or private business sector, and according to the Indian Health Insurance Association, health insurance is defined as coverage that provides payment for benefits as a result of illness or injury. It includes insurance for accident, medical expenses, disability, or accidental death and loss of exclusion.
Health Insurance Plans:-
- – Cancer Insurance
- – Individual Health
- – Senior Citizen Health
- – Critical Illness Insurance
Motor Insurance
Motor insurance covers all damages and impact in a vehicle against on-road and off-road emergencies. A comprehensive policy even secures against damage caused by natural and third-party calamities.
Motor insurance offers protection to the vehicle owner against:
– Damage to the vehicle
– It also pays for any third party liability determined by law against the owner of the vehicle
Motor insurance is mandatory in India as per the motor vehicles act and needs to be renewed every year. Driving a motor vehicle without insurance in a public place is a punishable offense.
In fact, third party insurance is a statutory requirement for the owner of the vehicle is legally liable for any injury or damage caused to a third party life or property, by use of the vehicle in a public place.
A motor insurance policy includes personal accident and liability for third-party insurance in addition to own damage cover of owner’s vehicle in one policy.
Common Motor Insurance Include:
Some benefits of motor insurance include roadside assistance, cashless servicing at the nationwide network of workshops and garages, personal accident cover and towing assistance.
Travel Insurance
International travel, whether on a vacation or a business, may one experience incidental loss of a baggage or a passport, delay in a flight, medical emergency etc., a situation will surely take the moments away from traveling.
Travel insurance also referred as a visitor insurance, covers against unseen medical and non-medical emergencies during overseas traveling, ensuring a hassle-free travel experience. It protects the insured against misfortunes while traveling, assist by travel insurance policy.
Travel Insurance Plans:-
Home Insurance
Home is often the most treasured place of an individual and largest financial investments one makes in life. protect the physical structure and contents of the home.
Home insurance protects the house and the contents, it is depending on the insurance policy opted for. It secures the home against natural calamities, disasters, and threats. Home insurance provides protection against risks and damages from fire, burglary, theft, flood, earthquakes etc. it covers the physical building structure and valuables contents in it.
Home insurance ensures that one’s hard-earned savings are utilized to meet important needs instead of using them for rebuilding the home if natural harm was to come to it.
Accident Insurance
Accident Insurance covers provide a lump sum amount in case of natural death or disability arising out of an accident. This amount can give a great support system for your recovery.
Commercial Insurance
Commercial insurance provides solutions for all sectors in entire business operation industries, insurance solutions for automotive, aviation, construction, chemicals, foods and beverages, manufacturing, oil and gas, pharmaceuticals, power, technology, telecom, textiles, transport, and logistics sectors. It covers small and medium enterprises (SME), large corporates and multinational companies.
Commercial Insurance Plan :-
- – Energy Insurance
- – Liability Insurance
- – Property Insurance
- – Engineering Insurance
- – Financial Lines Insurance
- – Employee Benefits Insurance
- – International Insurance Solutions
Marine Insurance
It involves the import and export of goods, movement of goods is a fraud with a risk of trouble which can result in damage or destruction of shipments. This leads to substantial financial losses for both the importers and exporters.
Marine insurance covers cargo, freight, goods and other interests against loss or damage during transit by air, rail, road or sea shipments. It protects from the time of goods leave the seller’s warehouse till they reach the buyer’s warehouse through by container. Marine insurance offers complete financial protection during transit of goods and compensates in the event of any loss suffered.
The party responsible for ensuring the goods is determined by the sales contract, the insurance policy can be taken by buyers, sellers, merchant of importer-exporters, buying agents, contractors as per banking regulations. The policy usually covers the cargo but can extend to cover the interest of a third party post transfer of ownership as determined by terms of sale.
Benefits of General Insurance
- Car insurance expenses incurred in repairing a broken vehicle in an accident.
- Health and medical insurance policies take care of amount in medical treatments.
- A travel insurance plans easy to deal with a forthcoming amount for sudden and high situations while traveling overseas from the country.
- Home insurance policies facilitate in securing the home against numerous types of dangers like fires and natural calamities.
- Accident insurance policies are useful when it involves costs related to accidents.
FAQs
Insurance is a barrier against the event of unexpected situations, it helps you to reduce risks and providing a financial cushion against all affected financial burdens suffered.
Accidents, illness, fire financial securities are the things to worry about any time, General Insurance provides protection against unexpected events. different from Life Insurance and General Insurance is not meant to offer returns but is a protection against expenditure. Under certain acts of laws, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.
It is very important to have enough amount of coverage for each insurance policy, for any asset or property insurance, the value of the asset is based on market value or reinstatement value deciding sum insured. If the sum insured is not a sufficient percentage representing the uncovered portion of the asset is to be carried by the insured.
Almost everything that has a financial value in your life and has a probability of getting lost, stolen or damaged can be covered through insurance. Property both movable and stable, cash, dishonesty, health, household goods, vehicle and your liability towards others can be covered.
Accidents and the unexpected situation can occur anytime and anywhere. It is important to identify the risks and insure yourself against these moments to protect earliest.
Premium is a fixed amount paid to the insurance company as per policy plan to complete the contract of insurance tenure to receive benefits.
Underwriting services provided by insurance or investment companies, they guarantee payment in case of financial loss or damage and accept the financial risk for liability arising from such a guarantee.
Pays a premium to the reinsurance company, who in exchange would pay a share of the claims subject by the purchasing company.
The deductible is the amount that must be paid by the policyholder before an insurance provider will pay any expenses. In general term, the deductible may be used by insurance companies as a threshold for policy payments.