General Insurance Definition

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General insurance covers of property against fire, burglary, theft, personal insurance. It covering health, travel, accidents and liability insurance. Based on Today’s Life Style types of insurance is rising day by day. You will find numbers of new insurance policies. You might have not heard before. Moreover, see about insurance companies in India. Hence, see difference Between Life Insurance and General Insurance. However, see 8 important characteristics of Insurance.

Types of General Insurance

This category of insurance covers all forms of insurance except life. There are Common forms of general insurance are motor, fire, home, marine, health. In addition, like travel, accident and other miscellaneous forms of non-life insurance.

Unlike life insurance policies, tenure of general insurance policies is normally not that of lifetime.  Most general insurance products are annual contracts. There are however, few products which have a long term. Apart from life insurance you can use different types of general insurance policies as follows

Motor Insurance

Insurance on Motor covers all damages and liability to vehicle against various on-road and off-road emergency. Also, policy secures against damage caused by natural and man-made calamities include acts of terrorism.

In addition, Motor insurance is set in India as per Motor Vehicles Act, 1988. And needs to be renewed every year. But driving motor vehicle without insurance in public place is punishable.

Thus, Motor insurance offers safety to vehicle owner against

  • Damage to vehicle
  • It also pays for any third party liability determined by law against owner of vehicle.

In fact, third party insurance is statutory requirement in our country. But, owner of vehicle is legally liable for any injury or damage caused to third party life or property.

However, motor insurance policy includes personal accident and liability only policy (third party insurance). In addition, to own damage cover (damage to owner’s vehicle) in policy.

Common motor insurance categories include:

  • Car Insurance
  • Wheeler Insurance
  • Commercial Vehicle Insurance

Some attractive benefits of motor insurance include roadside assistance. Additionally, like cashless servicing at nation-wide network of workshops and garages, personal accident cover.

Health Insurance

Health Insurance consists of various types of insurance related to health. For example Medical Insurance is major part of health Insurance. However, in most of cases like dental issues are not covered in this policy.

So there is another Dental Insurance policy which covers dental problems. And it is also part of health insurance. Hence, subcategory of health insurance also involves injuries or accident at workplace. Health care costs are increase every year.

Because, lifestyle and stress at work is affect health and can result in critical illness or medical emergency. Such scenario is sure to adversely affect one financially, due to the massive outlay of money on medical expenditure.

However, health insurance policy is only way to mitigate financial risks.  Apart from leading healthy lifestyle. Hence, health insurance guarantees peace of mind in times of crisis and helps secure own health to family.

Health insurance covers medical and surgical expenses of insured. Due to hospitalization from an illness. Additional riders enhance benefits and scope of cover. Therefore Health insurance often includes cashless facility at listed hospitals. In addition, like pre and post hospitalization expenses, ambulance charges, daily cash allowance etc.

Common types of health insurance policies include

  • Individual Policy
  • Family Floater Policy
  • Surgery Cover
  • Comprehensive Health Insurance
  • Travel Insurance

Furthermore, International travel on vacation or business can turn into nightmare. If one experience incident like loss of baggage, loss of passport, delay in flight, medical emergency etc. Such ultimate will surely take fun away from travelling.

Travel insurance also refers to as visitor insurance. And also covers against unseen medical and non-medical emergencies during overseas travel. It protects insured against misfortunes while travelling. Backed up by travel insurance whole experience is like no other.

Different types of travel insurance policies include:

  • Individual Travel Policy
  • Family Travel Policy
  • Student Travel Insurance
  • Senior Citizens Travel Policy

In addition to above, few insurance companies offer special plans like corporate travel policy. And complete policy for travel to special destinations like Asia and Europe.

Home Insurance

Home is often most treasured possession of an individual. And also large financial investments one makes in life. But it is Safeguard physical structure and contents of home seem like logical thing to do. As per above, Home insurance protects house and contents in it. But depend on scope of insurance policy opted for. It secures home against natural calamities and man-made disasters and threats.

Similarly, Home insurance provides protection against risks and damages. Such as fire, burglary, theft, flood, earthquakes etc. Hence, it covers physical asset (building structure) and valuables (contents) in it. Apart from, Home insurance ensures that hard-earned savings.

Marine (Cargo) Insurance

Business involves import and export of goods. Within national borders and across international borders. Movement of goods is fraught with risk of mishaps which can result in damage or destruction of shipments. This leads to substantial financial losses for both importers as well as exporters.

Marine cargo insurance covers goods, freight, cargo and other interests against loss or damage during transit by rail, road, sea or air. Shipments are protecting from time goods leave to seller warehouse till they reach buyer’s warehouse. However, Marine cargo insurance offers complete financial protection during transit of goods and compensates in event of any loss suffered.

However, party responsible for insuring goods is determined by sales contract. Marine cargo insurance policy can be taken by buyers, sellers. In addition, like import, export merchants, buying agents, contractors, banks etc. This policy usually covers cargo. But also extend to cover interest of third party post transfer of ownership as determined by terms of sale.

Other Types of General Insurance

  • Property Insurance
  • Personal Accident
  • Householder
  • Corporate Insurance
  • Commercial Insurance
  • Fire Insurance
  • Crop Insurance
  • Auto Insurance
  • Credit Insurance

Apart from these above mentioned insurance policies there are many other types of insurance policies in Market. And that are more or less related to these policies. However, it provides benefits to policy holders in different and unique way.

Finally, see importance of General Insurance. However, you can check features if Non life Insurance. And also check life insurance policies features. Moreover, view explains four characteristics of general insurance. Hence, check list of General Insurance products.

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