Imagine heading out for your much-awaited vacation, and the incessant worry about your home, car and other belongings keeps you worried throughout your trip. It is certainly not a vacation that you’d enjoy. Instead, the constant worry will leave you in splits whether to check on your home or be in the moment.
This is where a general insurance plan comes into the picture. Insurance is primarily divided into two categories - life and non-life. Non-life insurance is also known as general insurance. This category of insurance covers all types of insurance other than life insurance.
In the above-stated example, all your belongings can be covered using a general insurance policy. While there are different types of general insurance
plans, each asset can be included using a specific kind of insurance policy.
The primary principle on which an insurance policy works is indemnifying your losses. So remember, insurance is not a protective layer that will prevent it but instead will compensate for any damage or loss.
How does general insurance work?
Akin to life insurance, general insurance as well works on the principle of the risk occurring to many people at once. Not everyone who suffers from the risk faces the damages. This helps the general insurance companies honour your claims.
A premium is charged by the insurance company to cover the risk. A similar coverage is provided to many others willing to insure for the same type of risk. Payouts are then offered by the insurance companies from this pool of funds when claims are made.
Like life insurance provides your family financial support in your absence, a general insurance plan ensures you receive the money when the time comes as per the terms of the policy.
What are the types of general insurance policies that you can buy?
In today’s age where almost anything can be insured if you’re willing to pay the price for it, here are the few main types of general insurance that you can purchase -
#1 Health Insurance
As important is your life, equally important is your health. The adage, ‘health is wealth’, rightly justifies buying a health cover. With myriad general insurance companies in India, it is only a matter of choice to select the right plan for you.
Health insurance policies cover for any unexpected hospitalisation up to a specific amount of sum assured. There are different types of health insurance
that you can choose from depending on your need. While a standalone health insurance plan should be your priority, you can also purchase family floater plans to include your dependents, children and spouse.
In case you have any ailment that runs in your family, you can get it insured using a critical illness plan. You must note that not all health policies require you to get hospitalised to extend their cover. Treatments that do not require hospitalisation are also covered under a health insurance policy depending on the plan you opt for.
#2 Motor Insurance
Buying a motor vehicle is no less than an arduous task, and you wouldn’t want to damage it for sure. Any case of vandalism, damage, theft, or accident is covered under a motor insurance policy. Selecting an appropriate motor insurance policy can ensure you have all-round protection for your car. Your car insurance
can be customised by using selective add-ons to receive wholesome coverage. A car insurance policy not only ensures protection for your own damage but also third-party costs. Moreover, the Motor Vehicles Act, 2019, makes it mandatory for every vehicle to have at least third party insurance cover.
#3 Home Insurance
Another type of general insurance that protects your home as well as its belongings. Whether you are a homeowner or live in rented accommodation, there is a home insurance cover for you. A home cover protects your house against natural as well as human perils and provides financial security to you.
#4 Travel Insurance
Have you ever lost your baggage while travelling far away from home? These misfortunes do happen, and buying travel insurance, especially for international travel, is of prime importance. The travel insurance cover ensures any financial loss due to lost baggage, or emergency case of hospitalisation is covered when you’re away from home. Moreover, domestic travel insurance also offers similar coverage.
#5 Commercial Insurance
While the above insurance covers all personal aspects of your lives, your business too needs that extra care. Any unexpected business loss can cause a huge financial setback and can leave you debt-ridden. To avoid such unexpected losses, buying a commercial insurance policy from the different general insurance companies in India is the way ahead.
While these are some of the prominent types of general insurance policies that you can buy, you can also enquire for customised insurance cover from an insurer of your choice. To conclude, be prudent and stay insured!