What is General Insurance?
Simply put, all insurance products that are not classified as life insurance products are general insurance products. There are a variety of general insurance products ranging from health to property and everything in between. These branches of insurance are grouped under the term "general insurance".
Still, are you wondering what general insurance is? Don't worry. This article will discuss the following aspects of general insurance and clear all your doubts:
- General coverage type
- General characteristics of the cover
- Examples of general insurance
- General Insurance Vs Life Insurance
- General coverage type
There are many different general insurance products available in the market today. Let's consider some of the most important ones:
Health insurance: A health insurance policy protects the insured against any unforeseen health problems. The insurance company pays the hospital bills. Car Insurance: A car insurance policy protects the insured against road accidents. Third-party and comprehensive car insurance policies are available in the market. Property insurance: A property insurance policy protects your home or mail carriers against theft, terrorism, natural acts, etc.
Providing Marine Insurance: Marine insurance protects the merchant's cargo or ship against the perils of the sea. Travel insurance: Travel insurance protects the insured against medical expenses abroad.
Accident Insurance: An accident insurance policy insures the policyholder against damage caused by an accident. aircraft cover: the aircraft cover protects the aircraft from airborne hazards.
Crop Insurance: Crop insurance protects a farmer's crops from drought, floods, natural disasters, etc.
General insurance features
The 5 main features of general insurance include:
Peace of mind: The insured will have peace of mind knowing that he is covered against the various uncertainties of life.
Financial Stability: General insurance policies can often provide greater financial stability to the insured and their families.
Broader coverage: Today's insurance companies offer the option of expanding your insurance coverage with additional premiums. The more coverage, the higher the protection.
Security: There are various general insurance plans such as ULIP, Endowment Plan, etc. which provide additional savings benefits to the policyholder.
Tax Benefits: Various IT exemptions are available to policyholders under the Indian IT Act. Individuals can take advantage of these deductions and reduce the amount of tax they can pay.
General insurance example
Still confused? Let us give you 2 simple general insurance examples to clear your doubts.
Example of health insurance: Let's say that Mr. Ajit bought health insurance from an insurance company with a cover of Rs 5 Lakhs. Now, Mr. Ajit has met with a minor accident and needs to be taken to the hospital. When he left, he applied to the health insurance fund to pay for his hospital bills. The insurance company is busy paying money to Mr. Ajit.
Auto Insurance Example: Let's say that Mr. Roy has bought a car insurance policy for his new Honda Civic. A few months after he bought it, his car had an accident. Mr. Roy contacts the insurance company and files a complaint. The insurance company offers money to repair his car if all the documents are in order.
0 Comments