A better definition of insurance would be as an agreement between an insurance company and the buyer (or insured) in which the insurance company promises to compensate a covered loss, in case it was to occur, in return for a premium paid by the insured.
It is not necessary that the aforementioned loss (which is borne by the insured)is always financial in nature. Often, losses related to health or property are translated into monetary terms and met with a pre-specified reimbursement when they occur.
The world of insurance is expansive, and there are numerous types of general insurance plans that are out there for purchase. These insurances are all available for different needs, and anyone from an individual to an organization or other similar entity can choose to buy any of these policies.
For a newbie, terms such as car insurance or motor insurance can be a little complicating. Other than their literal meanings, you will hardly be able to tell if these terms refer to one thing in particular or are two different plans. This is where the basic understanding of the insurance plans is beneficial, as you will be able to better comprehend as to what you need.
Now, the general insurance policies that individuals purchase to protect various assets against financial loss. General insurances provide cover to individuals against unforeseen or unexpected incidents such as accidents and natural calamities. Health insurance, car or motor insurance, home insurance, and travel insurance all come under this category.
This insurance policy is designed for motor vehicles and covers them against financial liabilities caused on or off the road. These damages could be man-made and caused during riots, road rage, and malicious acts or could be caused during a natural disaster such as floods, hurricanes, and earthquakes. Both two-wheeler insurance plans, as well as car insurance policies, fall under motor insurance.
Now, both two-wheeler and car insurances online are of two types – third party liability insurance and comprehensive insurance. The third-party insurance policy covers losses related to third party claims arising out of accidents that cause damage to or loss of property and/or injury or death of the third party. A comprehensive plan, on the other hand, includes third-party coverage; own damage cover and personal accident cover as well.
As per the Motors Vehicles Act 1988, all motor vehicle owners should at least have a third party liability to legally drive their vehicles on Indian roads.
To help families and individuals meet the increasing costs of healthcare and avail quality medical aid, general insurance companies introduced health insurance policies. Under such a plan, policyholders shall receive coverage against expenses related to hospitalization, medical practitioner, nursing charges, ambulance facility, diagnostics, oxygen, etc.
Daycare expenses, pre and post hospitalization expenses, and domiciliary treatment is also often covered under health insurance plans. Generally, health insurance plans are of the following types – Individual health plans, Family floater policies, Critical insurance plans, and senior citizen health insurance. However, depending on the health insurance provider, there could be other types too.
While traveling, people are exposed to various contingencies, both financial and health-related. Loss of passport, baggage or even a delay in flight can create a hassle for travelers. So, to help mitigate such losses, there’s travel insurance. Here’s what is covered under a travel insurance plan:–
3. Transportation fare if the insured were to lose their job, among many others. Travel insurance plans available in India include individual plans, family plans, student plans, and senior citizens' plans.
Residential properties are one of the biggest investments that an individual makes in their lifetime. So, to help ensure the security of the same, insurance companies offer home insurance plans covering your house and belongings.
A home insurance plan covers your house and contents against losses related to both manmade and natural causes. Loss of television, video equipment, personal computer, and damage or loss of garages, swimming pool, terrace, etc. is also covered under a home insurance plan.
Now that you have a basic idea of what general insurance plans are and what all they cover, remember that you can buy any plan be it a car insurance policy or health insurance plan online as well. But before you do that, it is important that you compare the plans online and go through its inclusions, exclusions and policy terms before you select and purchase.
General Insurance is a type of insurance policy that covers the financial loss suffered due to the loss or destruction of the insured asset.
Insurance is our saviour from any unexpected situation that might disrupt our normal life and well-being. There are two types of Insurance, viz. Life Insurance and General Insurance. While people have slowly realised the importance of Life Insurance and have become aware of it, they are still unaware of the varied list of General Insurance products that cover a diverse range of risks. Thus, it is imperative to dive into the topic of General Insurance and understand the different types of General Insurance Policies available in the market.
It is a policy or agreement between the policyholder and the insurer, which is considered only after the realization of the premium.
Almost everything under the Sun that you can call an asset can be insured. However, in India, General Insurance is majorly classified into the following types:
Standard Fire And Special Perils PolicyAs the name says, this type of insurance covers the expenses incurred due to any illness or medical emergency.
All the above types of health insurance further have different products under them based on their usage and many other factors. Here is a list of major types of health insurance products available in India:
If you own a vehicle, you will know that motor insurance is mandatory in India. The policy ensures that the vehicle has complete protection against physical damage from natural or artificial calamities and third-party liabilities arising from the insured vehicle.
The different types of Motor Insurance Policies available in the market under the ones mentioned above are as follows:
Third-party insurance Policy: Pays the financial liability to the third party affected in the mishap, ensuring you do not face legal hassle due to the accident.
Comprehensive Insurance Policy: Apart from covering third-party liabilities, these plans also cover the expenses incurred for repairing the damages to the policyholder’s vehicle due to an accident, fire, artificial and natural calamities, riots and other such instances.
Own Damage Policy: With Own Damage Cover, you receive the same benefits as a comprehensive policy without the third-party liability portion of the policy.
Own Damage Policy: With Own Damage Cover, you receive the same benefits as a comprehensive policy without the third-party liability portion of the policy.
There are many add-ons covers that can be added to your motor insurance policy to ensure that you are covered against any eventuality. Some add-on covers you can avail of are - Zero depreciation cover, Loss of personal belongings cover, Pay-as-you-drive cover, Daily conveyance cover, etc.
Travel Insurance provides financial protection to you and your family when you are visiting any place in the country or abroad. It covers emergencies like loss of baggage, loss of passport, hijacking, medical emergencies, delayed flights, accidental deaths, adventure sports etc.
The above types further have a list of different products under them like Individual Travel Insurance, Family Travel Insurance, Senior Citizen Travel Insurance, Corporate Travel Insurance, Multi Trip Travel Insurance, Single Trip Travel Insurance and Schengen Travel Insurance.
Another category of insurance is Property Insurance. A Property Insurance Policy provides financial reimbursement to the owner/renter of a building and its contents. It also covers damage caused to anyone other than the owner/renter if that person is injured on the property.
Home Insurance: Provides financial coverage in case of any significant damage to the insured home due to any reason like fire, theft, flood, storm etc.
Office Insurance: Office insurance provides coverage for the risks that can impact office operations like fire, burglary, misuse of office data, loss of money due to cheating of employees etc.
A Commercial Lines Insurance policy ensures that the business does not face any financial burden because of any financial and business risks. Apart from covering the damages to the property or employee injury, it also covers public or employer liability.
Commercial Insurance, as an umbrella segment, has a number of Insurance types based on the type of asset covered, viz.:
Liability Insurance: An insurance product that provides coverage against any claims resulting from injury or damage to any third party, i.e., person or property. It offers the following types of Liability Insurance Policies:
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