General Insurance

Insurance contracts that do not come under the ambit of life insurance are called general insurance. The different forms of general insurance are fire, marine,motor, accident and other miscellaneous non-life insurance.

Imagine heading out for your much-awaited vacation, and the incessant worry about your home,car and other belongings keeps you worried throughout your trip. It is certainly not a vacation that you’d enjoy. Instead, the constant worry will leave you in splits whether to check on your home or be in the moment.

This is where a general insurance plan comes into the picture. Insurance is primarily divided into two categories - life and non-life. Non-life insurance is also known as general insurance. This category of insurance covers all types of insurance other than life insurance. In the above-stated example, all your belongings can be covered using a general insurance policy. While there are different types of general insurance plans, each asset can be included using a specific kind of insurance policy. The primary principle on which an insurance policy works is indemnifying your losses. So remember, insurance is not a protective layer that will prevent it but instead will compensate for any damage or loss.

How does general insurance work?

Akin to life insurance, general insurance as well works on the principle of the risk occurring to many people at once. Not everyone who suffers from the risk faces the damages. This helps the general insurance companies honour your claims. A premium is charged by the insurance company to cover the risk. A similar coverage is provided to many others willing to insure for the same type of risk. Payouts are then offered by the insurance companies from this pool of funds when claims are made. Like life insurance provides your family financial support in your absence, a general insurance plan ensures you receive the money when the time comes as per the terms of the policy. 

Types of general insurance policies-

In today’s age where almost anything can be insured if you’re willing to pay the price for it, here are the few main types of general insurance that you can purchase - 

1.Health Insurance
Health insurance policies cover for any unexpected hospitalisation up to a specific amount of sum assured. There are different types of health insurance that you can choose from depending on your need. While a standalone health insurance plan should be your priority, you can also purchase family floater plans to include your dependents, children and spouse. In case you have any ailment that runs in your family, you can get it insured using a critical illness plan. You must note that not all health policies require you to get hospitalised to extend their cover. Treatments that do not require hospitalisation are also covered under a health insurance policy depending on the plan you opt for.

2.Motor Insurance
Buying a motor vehicle is no less than an arduous task, and you wouldn’t want to damage it for sure. Any case of vandalism, damage, theft, or accident is covered under a motor insurance policy. Selecting an appropriate motor insurance policy can ensure you have all-round protection for your car. Your car insurance can be customised by using selective add-ons to receive wholesome coverage. A car insurance policy not only ensures protection for your own damage but also third-party costs. Moreover, the Motor Vehicles Act, 2019, makes it mandatory for every vehicle to have at least third party insurance cover.

3. Home Insurance

Another type of general insurance that protects your home as well as its belongings. Whether you are a homeowner or live in rented accommodation, there is a home insurance cover for you. A home cover protects your house against natural as well as human perils and provides financial security to you.   

4.Travel Insurance

Have you ever lost your baggage while travelling far away from home? These misfortunes do happen, and buying travel insurance, especially for international travel, is of prime importance. The travel insurance cover ensures any financial loss due to lost baggage, or emergency case of hospitalisation is covered when you’re away from home. Moreover, domestic travel insurance also offers similar coverage.

5. Commercial Insurance

While the above insurance covers all personal aspects of your lives, your business too needs that extra care. Any unexpected business loss can cause a huge financial setback and can leave you debt-ridden. To avoid such unexpected losses, buying a commercial insurance policy from the different general insurance companies in India is the way ahead.

6. Marine Insurance

Many businesses are run with the import and export of goods, within national and international borders. Sometimes, this movement of goods can be affected with the risk of mishaps, which can result in damage or destruction of shipments leading to significant financial losses. Therefore, marine cargo insurance policy gives coverage to goods, freight, cargo, etc., against loss or damage during transit by rail, road, sea and/or air.In addition to this, shipments are secured from the time the goods leave the seller’s warehouse until they reach the buyer’s warehouse. In short, this insurance offers complete financial protection during the transit of goods and compensates in the event of any loss suffered. Different types of marine insurance plans are open cover, annual policy, voyage policy and so on.

7. Accident insurance 

Accidents of different types are possible at any time, at any place and in case of any person or object. Persons and vehicles are more prone to accidents causing injuries and damages.

 8. Fire insurance 

In order to get the asset, stock or machines insured against fire, a proposal form is to be filled in and submitted to the insurance company. The insurance company examines the proposal with due regards to various factors and the periodical amount of premium is fixed.

9. Cyber Insurnce

When we say the world “internet”, what comes to your mind? Social media, friends, entertainment ah , the gift of the internet. A time before the internet is quite unimaginable to us now. If we push our imagination a little, we may conclude that it was boring and sort of like a dark age. However, it was safer by a massive measure However, in today’s world, it is almost impossible to function without exposing yourself to the online world, at least to a certain degree. And this makes one very vulnerable to the flip side. Identify fraud, Phishing, Cyber stalking Individual Cyber Safe Insurance Policy ensures that you get optimum protection against potential cyber threats and risks.

10. Professional Idemnity insurance 

The professional indemnity insurance protects you against any legal actions or threats, which a client, to whom you have caused a major loss because of your mistakes or ill advices, might press on you. It also saves you from paying a hefty amount of money as compensation to the clients for their losses. While these are some of the prominent types of general insurance policies that you can buy, you can also enquire for customised insurance cover from an insurer of your choice. To conclude, be prudent and stay insured!