Now that you have a basic idea of what general insurance plans are and what all they cover, remember that you can buy any plan be it a car insurance policy or health insurance plan online as well. But before you do that, it is important that you compare the plans online and go through its inclusions, exclusions and policy terms before you select and purchase.
General Insurance is a type of insurance policy that covers the financial loss suffered due to the loss or destruction of the insured asset.
Insurance is our saviour from any unexpected situation that might disrupt our normal life and well-being. There are two types of Insurance, viz. Life Insurance and General Insurance. While people have slowly realised the importance of Life Insurance and have become aware of it, they are still unaware of the varied list of General Insurance products that cover a diverse range of risks. Thus, it is imperative to dive into the topic of General Insurance and understand the different types of General Insurance Policies available in the market.
It is a policy or agreement between the policyholder and the insurer, which is considered only after the realization of the premium.
Almost everything under the Sun that you can call an asset can be insured. However, in India, General Insurance is majorly classified into the following types:
As the name says, this type of insurance covers the expenses incurred due to any illness or medical emergency.
All the above types of health insurance further have different products under them based on their usage and many other factors. Here is a list of major types of health insurance products available in India:
If you own a vehicle, you will know that motor insurance is mandatory in India. The policy ensures that the vehicle has complete protection against physical damage from natural or artificial calamities and third-party liabilities arising from the insured vehicle.
The different types of Motor Insurance Policies available in the market under the ones mentioned above are as follows:
Third-party insurance Policy: Pays the financial liability to the third party affected in the mishap, ensuring you do not face legal hassle due to the accident.
Comprehensive Insurance Policy: Apart from covering third-party liabilities, these plans also cover the expenses incurred for repairing the damages to the policyholder’s vehicle due to an accident, fire, artificial and natural calamities, riots and other such instances.
Own Damage Policy: With Own Damage Cover, you receive the same benefits as a comprehensive policy without the third-party liability portion of the policy.
There are many add-ons covers that can be added to your motor insurance policy to ensure that you are covered against any eventuality. Some add-on covers you can avail of are - Zero depreciation cover, Loss of personal belongings cover, Pay-as-you-drive cover, Daily conveyance cover, etc.
Travel Insurance provides financial protection to you and your family when you are visiting any place in the country or abroad. It covers emergencies like loss of baggage, loss of passport, hijacking, medical emergencies, delayed flights, accidental deaths, adventure sports etc.
The above types further have a list of different products under them like Individual Travel Insurance, Family Travel Insurance, Senior Citizen Travel Insurance, Corporate Travel Insurance, Multi Trip Travel Insurance, Single Trip Travel Insurance and Schengen Travel Insurance.
Another category of insurance is Property Insurance. A Property Insurance Policy provides financial reimbursement to the owner/renter of a building and its contents. It also covers damage caused to anyone other than the owner/renter if that person is injured on the property.
Home Insurance: Provides financial coverage in case of any significant damage to the insured home due to any reason like fire, theft, flood, storm etc.
Office Insurance: Office insurance provides coverage for the risks that can impact office operations like fire, burglary, misuse of office data, loss of money due to cheating of employees etc.
A Commercial Lines Insurance policy ensures that the business does not face any financial burden because of any financial and business risks. Apart from covering the damages to the property or employee injury, it also covers public or employer liability.
Liabilities Of DirectorsCommercial Insurance, as an umbrella segment, has a number of Insurance types based on the type of asset covered, viz.:
Liability Insurance: An insurance product that provides coverage against any claims resulting from injury or damage to any third party, i.e., person or property. It offers the following types of Liability Insurance Policies:
Marine Cargo Insurance: This Insurance provides coverage for the inland transit of consignments. It covers the loss or damage of cargo or the means of its transportation between the point of origin and the final destination.
Engineering Insurance: Engineering Insurance provides coverage against all risks associated with engineering and machinery. It includes the following insurance products:
Workmen Compensation Insurance: Workmen Compensation provides financial coverage to employees who get injured or die in any mishap during work. Thus, Workmen Compensation Insurance not only helps the employers to compensate these employees but also to fulfil their ethical duty as an employer.
Crop Insurance: As the name suggests, Crop Insurance is bought by agriculturists to cover the financial losses that a bad crop season, crop failure or any other related menace might bring in.
There is no denying the fact that modern-day devices are making our lives simpler, richer and smarter. However, in case of any damage, they are usually expensive to be repaired. As the name suggests, Asset Insurance provides financial coverage to your assets like Mobile TVs, and other appliances or electronics.
There is no denying the fact that modern-day devices are making our lives simpler, richer and smarter. However, in case of any damage, they are usually expensive to be repaired. As the name suggests, Asset Insurance provides financial coverage to your assets like Mobile TVs, and other appliances or electronics.
Pet Insurance provides financial coverage for your pet’s health and well-being requirements, such as any medical condition, such as pregnancy complications, dental treatments, and insect-borne diseases. Not just that, it also covers a lot of other conditions like pet theft, loss or damages to a third party because of the pet, accidents, overseas coverage and many more, depending on your insurance provider.
Bite-size Insurance, also known as small-ticket insurance/sachet insurance, is a non-comprehensive plan which focuses on specific needs. They are available at a lower premium and can be availed without documentation/tests. Since these insurance plans are specific, they have limited but focused coverage. In fact, Bite-Size Insurance is a category and not a type. It is unrestricted across all categories like health, travel, property etc.
Insurance is a concept that applies to a large group of people who may suffer the same risk in the same conditions or region. The money collected as premium from you by the insurer for availing an insurance policy goes into a big pool of funds where the premium paid by many other policyholders is also accumulated. In case, a policyholder faces a loss, the insurer covers the expenses from that pool.
Any individual needs to have a general insurance policy owing to the risks posed by accidents, medical emergencies, natural calamities, and other unforeseen circumstances. The policy provides financial protection in case such situations arise in our lives. We cannot predict an accident or calamity; however, we can be better prepared to handle them.
For most categories, having insurance coverage is compulsory by law. One example is the Motor Vehicles Act 1988, which made motor insurance compulsory. Thus, while following the mandatory regulation, you also ensure your beloved vehicle is financially protected.
General Insurance Plans provide compensation against losses. Thus, across all categories, they serve one primary purpose: to provide financial protection and safeguard your savings in case any unfortunate situation arises.
Many General Insurance Plans provide tax benefits. For example, the premium paid towards medical insurance offers tax benefits under Section 80D of the Income Tax Act.
Insurance protects you, your family and things you value from financial loss. Learn how insurance works, what to look out for, and why you should compare first before buying.
Insurance is meant to protect you, your family and things you care about. The insurance you buy depends not only on what you want to protect but also what you can afford.
