What is General Insurance?

Have ever wondered how your valuables like home, car, jewelry would remain protected against theft in case you’re away from home? That’s when general insurance would come into focus. If you want to protect your tangible assets from damage or loss, read how insurance will help you do so with ease.

You may have a life insurance policy that commits to secure the future of your loved ones in case of your sudden death. Just like it is necessary to safeguard one’s life from unforeseen events, similarly, you can also choose to protect your assets like motor, health, home, and others by purchasing a general insurance policy.

What is general insurance?

General insurance is an agreement between a policyholder and insurer wherein the insurance company protects your valuable assets from fire, theft, burglary, or any other unfortunate accident.

Often, general insurance is confused with life insurance. But, the two terms have vast differences. Let’s understand better with the table below:

General Insurance

Life Insurance

Covers non-life assets

Covers life of an individual

It is not a type of savings

This insurance helps you accumulate savings for future

Annual contract with a lumpsum premium

Long-term contract with the option of installment premiums

Pays sum assured in case of an eventuality such as theft or accident

Pays sum assured to the nominee in case of the death of the policyholder

General insurance should be your priority as your assets may get damaged due to an accident or theft. Let’s understand its importance with an example:

Mr. ABC has got a new car, and he is slated to hit the roads. But while driving, his car suddenly gets hit by the other vehicle trying to overtake. This dislocates the left mirror of his car. Mr. ABC is stress-free as he has motor insurance, which will provide financial cover for the damages and he doesn’t have to pay for the damages.

This shows how general insurance can help to eliminate the dent in your pocket by providing cover for tangible assets.

There are various types of general insurance; these include:

  • Motor Insurance
  • Home Insurance
  • Travel Insurance
  • Health Insurance

Motor Insurance:

When you’re driving, you cannot be sure that a road mishap will never take place or there may be an instance of your vehicle getting damaged due to a man-made or natural calamity. In such circumstances, you can rely on your motor insurance cover. It gives you financial protection and safeguards you from any legal complications.

There are two types of Motor Insurance in India:

  1. Third-party Motor Insurance
  2. Comprehensive Motor Insurance

Whether you own a bike or car, you need to have at least Third-Party Motor Insurance. It is compulsory to have a third-party insurance cover as per the mandate by the Motor Vehicles Act. The insurance offers to protect you if there’s an accident and offers liability cover for third party damages. However, if you are looking for overall protection, then you can opt for comprehensive motor insurance that includes third-party cover and all types of accidents caused due to a man-made or natural calamity.

Home Insurance:

Home is where we all feel protected and where numerous memories are created. When buying or renting a home, we invest our hard-earned money, but we forget to realize that it needs security too. With natural calamities and riots prevalent in India, you need to make sure your home and belongings are well-taken care of. This is where home insurance becomes a necessity.  

Common features of home insurance:

  1. Offers cover against natural calamities and man-made calamities
  2. Covers personal computer, TV, and Video equipment
  3. Cover for damages caused to the building such as terraces, foundation, swimming pool, etc.
  4. Financial protection against your home and belongings

Travel Insurance:

While traveling abroad, you only look forward to happy memories. However, unfortunate incidents never come knocking on the door. For instance, when you’re traveling on a flight, your baggage may go missing, or there may be theft of your asset.  In such situations, travel insurance will help you remain stress-free by offering protection for any loss/damage incurred. You love to travel, but does the fear of losing belongings always keeps you worried? Travel insurance would be an ideal choice for you.

Common Features of Travel Insurance:

  1. Cover for loss of baggage, including delays
  2. Emergency assistance
  3. Loss of passport
  4. Covers health expenses, transportation to the impaneled hospital, and hospital daily allowance
  5. Personal Accident cover

Travel Insurance provides financial security in case of an unforeseen mishap whether you’re flying domestically or internationally.

Health Insurance:

The healthcare costs are skyrocketing, and it is going to rise exponentially in the coming years. With inflation taking a toll on our lives, how would you ensure that you and your loved ones get the best health services? When it comes to top general insurance, health is also considered an asset. Make sure you protect the health of you and your family by investing in a health insurance policy. This type of general insurance offers financial coverage for medical expenses when someone is hospitalized. There are many types of health insurance policies; these include:

  • Individual health insurance
  • Family floater health plan
  • Senior Citizen health insurance
  • Group health insurance

Common features of a health insurance policy include:

  1. Cover pre & post hospitalization expenses
  2. Financial protection for room rent charges including hospital registration
  3. Cashless medical treatment
  4. Coverage for ambulance cost
  5. Avail coverage for health check-ups once in a block of four claim-free years

Now that you’re aware of how general insurance can be useful in protecting your life’s precious assets, it’s time you buy it from the best insurance companies. If you’re searching for the best general insurance plan, IFFCO Tokio would be an ideal choice. The company offers the best quotes. 

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