The Term Insurance refers to a joint agreement or a policy that insured purchase from an insurance company by paying premiums on the quarterly or monthly or yearly basis to the company. The insurance companies also protect the policyholders from any loss or risks that may occur in the future. Insurance is the only financial instrument that helps in managing the financial risks smoothly and reduces the financial worries. General Insurance or non-life insurance policy covers insurance of your valuable property against fire, burglary, theft; personal insurance covering health, travel and accidents; and liability insurance covering legal responsibilities.
What is General Insurance?
General Insurance policies are short-term policies with a validity of maximum one or two years only. But very few products will have a long term. First of all, you need to pay the premium amount; then you will receive financial help from the insurance company in case of any unfortunate event. This category of insurance virtually covers all forms of insurance except life. Other covers may include protection against errors and omissions for professionals, credit insurance, etc. The Common forms of General Insurance are the motor, health, travel, fire, home, marine, accident and other miscellaneous forms of non-life insurance.
Types of General Insurance Policies
We hear and came to know about so many insurance policies and the various terms in it. But how many of you truly understand what the different types of general insurance policies mean and what they protect? General Insurance policies are mainly divided into following categories.
- Motor Insurance.
- Health Insurance plan.
- Travel Insurance.
- Home Insurance.
- Marine Insurance policy.
- Commercial Insurance.
- Personal Accident.
Other Types of General Insurance:
- Property Insurance
- Corporate Insurance
- Fire Insurance
- Crop Insurance
Motor insurance is compulsory in India as per the Motor Vehicles Act, 1988 and needs to be revived every year. Driving a motor vehicle in the public place without an insurance policy is a punishable crime. When you buy a brand new car and take it out for a spin, a jerk comes and bumps you from behind. The damage done to the car will be secondary, but you would first feel as if someone has shattered your dream just in a second. At that time, the person suffers a lot to recover the damages done to the vehicle. Then a thought comes to your mind that if you had opted for motor insurance at the time of buying, you might not suffer at this moment.
The Motor Insurance was divided into two groups namely Four wheeler insurance, i.e., Car or any commercial vehicle and Two wheeler insurance, i.e., Bike or Scooter or Scooty, etc. Motor insurance in India covers for the loss or damage caused to the automobile or its parts due to both natural and man-made calamities.
Nowadays Health expenses are increasing significantly and so are the health risks. Health Insurance, commonly known as Mediclaim in India, is a form of insurance that covers the costs caused by the medical treatment and hospitalization. The Health plans can be taken for the individuals or your family members. The Common types of health insurance include individual health insurance, family floater health insurance, critical illness insurance, and comprehensive health insurance. By paying a small premium every year, the policyholder can ensure any significant medical expenses that have occurred in their life.
Travelling is an important and regular event in everyone’s life whether it is for leisure or work. Nowadays People are choosing for adventure travels just for the sake of adventure or to spend some family time together. Travelling together with your loved ones creates memories which we preserve throughout the life. But people couldn’t recognize that travelling also has its risks and probabilities that happen unexpectedly. Travel Insurance policies will safeguard yourselves from those unpredicted troubles such as loss of baggage, passport, delay in flight, medical emergency, etc. The Travel insurance can be mainly divided into Individual travel policy, Family Travel Policy, Student Travel Insurance, and Senior Citizen Health Insurance.
A home is a place where you and your loved ones can cheer, celebrate, and weave thousands of memories that last a lifetime. A home is the biggest investment which we have to make in our life. There is no such place in the entire universe like home. While we put our life’s savings towards buying or building a home it needs protection in the form of insurance, & it is the best way, but we rarely realize it. Home insurance protects your house and its contents in the form of a shield during bad times. The policyholder can protect their home from the natural calamities such as burglary, fire, earthquake or destruction of the house, etc.
If you start a business, you need to import and export your goods within or accross your borders that may be National or International. Movement of goods is fraught with risk of troubles which results in damage or loss of shipments. This may lead to substantial financial losses for both the importers and the exporters. The Marine insurance also known as cargo insurance offers complete financial protection during transit of goods and compensates in the event of any loss suffered. Marine cargo insurance covers goods, cargo, freight, and other interests against loss or damage during transit by rail, road, sea and/ or air. These goods are protected from the time they leave the seller’s storehouse till they reach the buyer’s store.
The Commercial Insurance is for protection against possible losses occurring due to some unexpected situations like theft, liability, property damage, etc. This type of Insurance provides solutions for automotive, foods and beverages, aviation, manufacturing, construction, chemicals, oil and gas, pharmaceuticals, telecom, textiles, power, technology, transport and logistics sectors. Commercial Insurance covers small, medium, and large scale enterprises, corporations and also multinational companies. The Commercial insurance gives solutions for all sectors of the industry emerging out of business operations.
Personal Accident insurance also called PA insurance is an annual policy that provides compensation in the event of injuries, disability or death caused merely by accidental bodily injury, violent, external and visible events. This type is completely different from life insurance, medical and health insurance. The Policyholder can either take this policy for himself or a group policy for the family, protecting you and them anywhere in the world, any time of the day. It also provides 24-hour worldwide insurance protection. Accidental death, Permanent disablement, Medical Expenses, hospitalization benefits, etc. are covered under this PA Policy.
Different Types of General Insurance Companies in India
Agriculture Insurance Company of India.
Bajaj Allianz General Insurance.
Cholamandalam MS General Insurance.
Cigna TTK Health Insurance Company Ltd – Cigna TTK.
ECGC (Export Credit Guarantee Corporation of India).
Future Generali General Insurance Company Ltd.
ICICI Lombard General Insurance Company Limited.
IFFCO Tokio General Insurance Company Limited.
Liberty Videocon General Insurance.
National Insurance Company Limited.
Raheja QBE General Insurance Company Ltd.
Royal Sundaram Alliance Insurance Company Limited.
SBI General Insurance Company Ltd.
Shriram General Insurance Company Ltd.
Star Health and Allied Insurance.