General insurance policies are another type of policy that provides coverage in the form of a sum promised against damages other than the policyholder's death. Health Insurance, Vehicle Insurance, etc. are some of the different types of General Insurance.
AASHISH KUMAR JHA | Sep 18, 2023 |
Insurance: Importance of General Insurance, Check Why General Insurance is Necessary, Know its Different Types
Importance of General Insurance: Insurance is a legal agreement between a person and an insurance company in which the insurer promises to offer financial protection (Sum assured) against unforeseen catastrophes in exchange for a fee (premium). The various types of insurance offered in India can be divided mainly into two groups: Life Insurance and General Insurance. Life insurance is a form of insurance policy in which the insurance company insures the policyholder’s life in exchange for a daily/monthly/quarterly/yearly premium. General insurance policies are another type of policy that provides coverage in the form of a sum promised against damages other than the policyholder’s death.
It is essential to take any insurance plan, especially a General Insurance plan. In general, general insurance refers to a wide range of insurance products that provide financial protection against losses caused by liabilities such as a bike, car, house, or health. General Insurance policies protect against the numerous forms of uncertainty that can occur in a person’s life. General Insurance is important as it helps us protect the things we value the most, like our cars, homes, and other such valuables. Aside from life insurance, general insurance is concerned with all other areas of human life.
Types of General Insurance
There are many different types of General Insurance offered in India. Different types of General Insurance available are discussed hereunder.
1) Health Insurance
Health insurance is a good way to protect yourself from growing healthcare expenditures. A contract between an insurer and an individual or a group in which the insurer agrees to provide health insurance against specified sorts of illnesses to the insured individual or individuals is known as health insurance. Health insurance policies either cover or reimburse the cost of treatment for any ailment or damage that is covered.
2) Automobile Insurance
Automobile insurance is the type of insurance that provides financial assistance in the event that your vehicle is involved in a collision. The different types of automobile insurance are car insurance, bike insurance, and commercial vehicle insurance.
3) Marine Insurance
A marine insurance contract is made between the insured and the insurer. Marine insurance provides protection against the risks of the sea. Examples of sea perils include ship collisions with rocks in the water, pirate attacks on ships, and ship fires. Three different types of marine insurance are cargo insurance, freight insurance, and ship or hull insurance.
4) Home Insurance
A home insurance policy, as the name implies, protects the contents and structure of your home against physical destruction or damage. In other words, this insurance kind will cover any natural or man-made disaster, such as fire, earthquake, tornado, burglary, and robbery.
5) Fire Insurance
Fire insurance policies are several types of insurance policies that pay any losses suffered as a result of a fire outbreak with an amount assured. These types of insurance policies typically provide a substantial level of coverage to assist both individuals and businesses in reopening their locations following catastrophic fire damage. These insurance types also cover war risk, upheaval, and riot losses.
6) Cattle Insurance
In the case of cattle insurance, the owner of the cattle receives a sum if the cattle dies as a result of an accident, disease, or during pregnancy.
7) Travel Insurance
Travel insurance, as the name implies, is a form of insurance policy that provides financial security for you and your loved ones when traveling to any location in India or overseas. Whether you are going alone or with family and friends, travel insurance will ensure that you have a pleasant journey.
These are some of the General Insurance that are available in the Indian insurance market. Because of the dangers posed by accidents, medical emergencies, natural disasters, and other unanticipated occurrences, everyone should carry a general insurance policy. The policy gives financial security in the event that such scenarios transpire in our lives. We cannot forecast an accident or tragedy, but we can be better equipped to deal with it.
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