General Insurance is a type of insurance cover that protect the things that we value, like our car, home, or health, from any sort of financial emergency. This is provided in exchange for an affordable monthly or annual premium.
In technical terms, General Insurance spread the cost of financial contingencies among a large number of people in the same region.
There can be many different types of General Insurance plans that one can avail in India. Let’s take a look at some of them.
Types of General Insurance Plans
1. Motor Insurance
A Motor Insurance helps you to keep your vehicle safe against any type of accident and from the financial liability arising as a result. A comprehensive policy even protects against loss due to natural calamities and theft. Heads covered by a motor insurance are:
- Third party legal liability
- Comprehensive cover
Common types of Motor Insurance policies are:
- Bike or Two-Wheeler Insurance
- Car Insurance
- Commercial Vehicle Insurance
2. Health Insurance
Health Insurance policies help the insurers to mitigate the financial losses arising from any type of health issues. While the offerings of the insurance can vary depending on the type of premium and cover you have chosen, they generally cover the expenses arising due to medical and surgical expenses, the cashless facility at hospitals, cash allowances on a daily basis, etc.
The various types of Health Insurances are as follows:
- Individual Health Insurance
- Family Floater Health Insurance
- Surgery Cover Health Insurance
- Comprehensive Health Insurance
3. Home Insurance
Homes and buildings are often vulnerable to external threats like natural calamities. A home general insurance provides peace of mind by insuring your home against them. Not only this, it also provides cover against the risk of fires, burglary, theft, and man-made disasters. This covers both the physical asset (the home) as well as the contents in it.
It is always better to pay for a home insurance than to utilize your earnings and savings to rebuild your home!
4. Travel Insurance
One of the most neglected types of general insurance is travel insurance. A travel insurance can be your best travel partner when it comes to an emergency. It protects you from any type of travel mishaps like loss of baggage, medical emergency, loss due to a flight delay, loss of passport, etc. This is helpful especially in the case of international travel.
Various types of Travel Insurances are:
- Individual Travel Insurance
- Family Travel Insurance
- Student Travel Insurance
- Senior Citizen Travel Insurance
5. Marine Insurance
This is a type of general insurance that insures the movement of goods within national and across international borders. Thus, any type of damage or loss of the goods arising from their transportation is covered under this policy. This covers freight, goods, and cargo being transported via rail, road, sea, or air.
Types of policies include:
- Open Cover
- Open Policy
- Specific Voyage Policy
- Annual Policy
6. Commercial Insurance
A commercial insurance provides cover in the industry sector against loss occurring due to operations of the business. This includes insurance solutions for aviation, chemicals, construction, manufacturing, oil and gas, automotive, food and beverages, telecom, textile, logistics, power, and technology sectors amongst others.
Various types of commercial insurance policies are:
- Property Insurance
- Employee Benefits Insurance
- Energy Insurance
- Marine Insurance
- Liability Insurance
- International Insurance Solutions
- Engineering Insurance
Apart from these, there are also various other types of General Insurance Plans available today, including:
- Personal Accident Insurance
- Shopkeeper Insurance
- Householder Insurance
- Corporate Insurance
- Commercial Insurance
- Crop Insurance
- Fire Insurance
Features of General Insurance
The above-mentioned and all other General Insurance are accompanied with a host of features that are a part of their inert nature. Here’s a look:
- Every General Insurance Policy is a contract of indemnity. This means that it is a security or protection against a particular type of loss or financial burden that is specified in the policy.
- All policies are renewable, that is, they are usually short-term and can be re-applied for once their contract term ends.
- Payment of assured sum amount is made in the case of a particular contingency that is specified in the policy. If the contingency occurs, payment is made, otherwise not.
- The amount of payment received depends on the amount of loss that has occurred in the contingency and is limited by the maximum amount of the cover specified in the policy.
- All General Insurance Policies mitigate one sort of risk or another that an individual or corporation is likely to face in the course of their lifetime.
Hence, General Insurance plans help to make unpredictable events more manageable and also provide a lot of benefits with tax saving being the foremost!