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“To insure is to protect and indemnify. It does not mean Prevention of loss”.
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.
Essentially, a general insurance policy covers only non-life risks. It has the following features:
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:
1. Health Insurance
2. Motor Insurance
3. Travel Insurance
4. Property Insurance
5. Commercial Insurance
6. Asset Insurance
7. Pet Insurance
8. Bite-Sized Insurance
As the name says, this type of insurance covers the expenses incurred due to any illness or medical emergency.
There are various types of health insurance available based on their coverage:
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.
Based on the type of vehicle they cover, Motor Insurance is broadly categorized into:
The different types of Motor Insurance Policies available in the market under the ones mentioned above are as follows:
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 major types of travel insurance are:
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.
Some products available in the market under property insurance include:
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.
The policy is offered to commercial and business entities like large corporate houses, SMEs, and MSME industries.
Commercial Insurance, as an umbrella segment, has a number of Insurance types based on the type of asset covered, viz.:
Apart from the above major categories of General Insurance, there are a few more types as below:
There is no denying the fact that modern-day devices are making our lives simpler, richer and smarter. However, in case of any damage, they are usually expensive to be repaired. As the name suggests, Asset Insurance provides financial coverage to your assets like Mobile TVs, and other appliances or electronics.
The much-needed insurance cover for your furry babies because they need it as much as we do!
Pet Insurance provides financial coverage for your pet’s health and well-being requirements, such as any medical condition, such as pregnancy complications, dental treatments, and insect-borne diseases. Not just that, it also covers a lot of other conditions like pet theft, loss or damages to a third party because of the pet, accidents, overseas coverage and many more, depending on your insurance provider.
Bite-size Insurance, also known as small-ticket insurance/sachet insurance, is a non-comprehensive plan which focuses on specific needs. They are available at a lower premium and can be availed without documentation/tests. Since these insurance plans are specific, they have limited but focused coverage. In fact, Bite-Size Insurance is a category and not a type. It is unrestricted across all categories like health, travel, property etc.
Below are a few common Bite-Sized insurance products available in the market:
Insurance is a concept that applies to a large group of people who may suffer the same risk in the same conditions or region. The money collected as premium from you by the insurer for availing an insurance policy goes into a big pool of funds where the premium paid by many other policyholders is also accumulated. In case, a policyholder faces a loss, the insurer covers the expenses from that pool.
Any individual needs to have a general insurance policy owing to the risks posed by accidents, medical emergencies, natural calamities, and other unforeseen circumstances. The policy provides financial protection in case such situations arise in our lives. We cannot predict an accident or calamity; however, we can be better prepared to handle them.
Here are a few benefits that General Insurance provides:
Listed below are the major differences between General Insurance and Life Insurance:
|
Parameter |
General Insurance |
Life Insurance |
|
Applicability of claim |
In case of loss due to fire or any other peril, the insurance company will pay the claim amount after the deductible (as applicable). |
The reimbursement under the life insurance is made either at the time of maturity or death. |
|
Amount of Reimbursement |
General Insurance works as per the policy limits and conditions. |
The Life Insurance Policy is an investment policy which is paid on maturity of the policy. |
|
Functional Period |
General Insurance policies are issued for a period of 1 year. |
Life Insurance policies are issued for lifetime or till the policy matures. |
|
Payment of Premium |
Under General Insurance policies, the premium will be paid for one year till the renewal of the policy. |
Under Life Insurance policies, the premium will be paid for the total term of the policy. |
|
Insurable Interest |
Under a General Insurance Policy, the insurable interest of the policyholder should be present at the time of renewal and loss. |
Under a Life Insurance policy, the individual who has the insurable interest should always be present. |
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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