When you are busy with sorting your life according to your finances you generally think about saving, investing, budgeting and spending. People seldom pay any concern about ensuring their assets and possessions. While having insurance is a matter of high importance, most people are stuck to the idea of securing their lives by ensuring their lives. General insurance comes secondary to most.
What is general insurance?
General insurance is a scheme that offers financial coverage on any kind of loss other than the loss of life. It ensures your property against theft, fire or other such accidents. It also ensures your life that covers accidents, medical expenses, etc. For example; it compensates the insurer if their vehicle has been damaged or if they have lost their valuables in a burglary. Simplified, it provides financial protection to the losses to your assets except for your life.
How does general insurance work?
This insurance works by taking out a policy on the name of all the possessions that you want to safety against. It could be your home, your car, health or your business. General insurance is designed to give you protection against unwanted risks and accidents. If an unfavorable event happens with the things that you have covered, you can claim for the damages to the insurance company. The company then calculates the loss and pays you for the cost.
Few of the insurances that fall under general insurance
This insurance covers the damages to your vehicle against various kinds of on-road or off-road mishaps. It offers protection to the owner against losses to the car, and it also pays the third party charges to the owner. In India, having motor insurance is mandatory, and it needs to be renewed every year. Owning a car without insurance is a punishable offense in our country.
The standard categories for motor insurance are:
- Car insurance
- Two wheeler insurance
- Commercial vehicle insurance
When we travel, be it for your pleasure or business, there is always a risk of travel emergency related to the passenger. Be it the loss of your travel baggage, missed or delayed flights or medical emergency. Having travel insurance protects a person against medical and non-medical emergencies during traveling abroad.
The categories for travel insurance are:
- Individual travel insurance
- Family travel policy
- Student travel insurance
- Senior citizen travel policy
Health insurance is an insurance scheme that provides coverage for an insured individual’s medical and surgical expenses. An individual can get all his expenditure reimbursed after their medical needs are completed or it pays the organization directly.
Types of health insurance:
- Hospitalization Plans
- Daily Cash Benefit Plan
- Critical Illness Plan
Home insurance protects your house from any natural calamities or man-made threats. It provides you financial coverage against risks like fire, theft, flood or earthquake. It covers the physical and the valuable assets in it. A house is taken to be one of the most precious possession of a person and having home insurance helps with building the confidence of an individual that if any harm comes to it, they still have it covered.
This insurance protects all the sectors of an industry or a business. It covers the SMEs, large enterprises and also multinational companies.
Types of commercial insurances:
- Property insurance
- Employee benefit insurance
- Liability insurance
- Financial line insurance
- Engineering insurance
- Marine insurance
This insurance helps in meeting the needs of the agricultural business. Rural people who have their livelihood depended only upon agricultural or farming practices should opt for this insurance to safeguard their crops, equipment or lands.
What are the benefits of having insurance?
Though opting for insurance is solely depended on an individual, it gives you financial security of your assets and valuables in case of an emergency. It gives you tax rebates which will also help you with the burden of taxes. Also, it will help you saving and planning a secure financial future.