Jul 30, 2014

Types of General Insurance

We hear about so many insurance policies and the various terms in it. But how many of us truly understand what the different types of general insurance policies mean and what they protect? There are essentially two types of insurance, life insurance and general insurance. While life insurance is a coverage that pays out a certain amount to the beneficiaries in event of death of the insured, general insurance protects against the unforeseen losses and damages other than those covered by life insurance. Also known as non-life insurance, general insurance offers a gamut of insurance covers against eventualities such as illness, property damage, motor accidents, etc. Assets have a value of their own and are susceptible to damages. The specific general insurance cover can protect the economic value of the asset and prevent huge financial loses. For example, a home insurance policy can protect your home and the valuables inside from calamities and theft. In this article, we look at the different types of general insurance policies and the cover they provide. General Insurance Types and Features Motor Insurance                                                                                             You love long drives and speeding on the highways. But have you secured your lovable ride? Motor insurance, that includes car insurance and two wheeler insurance, covers all damages and liability to the vehicle. Moreover, according to the Motor Vehicles Act, 1988, driving a motor vehicle without insurance in a public place is a punishable offense. A motor vehicle can be covered either by a Liability Only policy which is a statutory requirement and covers the legal liability for injury, death, and/or property damage caused to a third party in the event of an accident caused by or arising out of the use of the vehicle, or a package policy which includes the Liability Only policy and also covers the damage to owner’s vehicle, usually called O.D. Cover. The common motor insurance plans include: Car insurance: A comprehensive coverage against physical damage and bodily injury to the car, and also covers against third-party liability. Two wheeler insurance: A comprehensive two-wheeler insurance policy provides hassle-free protection to your bike or scooter against physical damage, theft and third party liability. Commercial vehicle insurance: Commercial vehicle insurance is a Liability Only policy for commercial vehicles across the various classes of vehicles like goods carrying vehicles - private and public carrier, passenger carrying vehicles, miscellaneous and special types of vehicles. Health Insurance Ill health can result in a major halt in your life and work. Moreover, the escalating price of health care costs means that you would be shelling out a massive amount of money to bear the brunt of these costs. This is the reason why you would need health insurance to cover your medical expenses following hospitalization from sudden illnesses or expenses caused by accidents. This also includes cashless facility in empanelled hospitals, pre and post hospitalization expenses, and ambulance charges. Here are some of the common types of health insurance policies: Individual –A health insurance policy, such as Bajaj Allianz Health Guard Individual policy, provides cover for an individual with cashless hospitalization and other features. In case you feel that the sum insured of your existing health insurance plan does not suffice for expenses due to illness or accidents then opt for a cover such as the Extra Care health insurance policy to extend your health insurance. Family Floater Policy – A policy such as the Health Guard Family Floater Option covers family members under a single plan. The fixed sum insured can be availed by individual member or as a sum total for treatment of one person. Surgery Cover – A Surgical Protection Plan provides a fixed benefit amount for specified surgeries and helps you to take care of the expensive medical treatment in a hospital. This benefit plan that is used for the surgical treatment of serious illnesses such as cancer, kidney failure, and heart attack can be availed as a standalone plan or a rider. Comprehensive Health Insurance – A high value comprehensive health insurance policy, such as Health Care Supreme with a wide range of sum insured, add-on covers, special benefit covers such as maternity benefits and dental treatments, fulfills all the healthcare needs and ensures complete peace of mind, regardless of the situation of life you are in. Other health insurance covers:
  • Personal Accident
  • Hospital Daily cash Allowance
  • Critical Illness
Travel Insurance Despite all your planning, a trip abroad can go wrong due to medical eventualities, and non-medical contingencies such as loss of baggage, trip delay and other incidental expenses. Travel insurance covers the insured against these misfortunes while traveling. Catering to people from all walks of life, Bajaj Allianz offers three different plans - Travel Companion, Travel Elite and Student Travel. Choose a basic plan or go for extended covers as per your requirements. The different travel insurance policies include:
  • Individual travel policy
  • Family travel policy
  • Senior citizens travel policy
  • Student travel insurance
In addition, there are insurance companies that offer special plans such as a corporate travel policy or a comprehensive policy for travel to a special place such as Asia. Home Insurance Your home is a priceless possession and possibly one of the largest financial investments that you have made. It needs to be safeguarded from unforeseen events. Along with your home, property insurance also protects the valuables and other assets that are the interest of the insured. A comprehensive cover, such as My Home, for your house as well as the contents ensures that your home is well protected. Commercial Insurance Commercial insurance offers solutions for all sectors of the industry ranging from automotive, aviation, construction, chemicals, foods and beverages, manufacturing, oil and gas, pharmaceuticals, power, technology, telecom, textiles, transport and logistics. Some common types of commercial insurance include:
  • Property insurance
  • Marine insurance
  • Liability insurance
  • Financial lines insurance
  • Engineering insurance
  • Energy insurance
  • Employee benefits insurance
  • International insurance solutions
  Want comprehensive information of the general insurance policies? Click here!

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