ABOUT GENERAL INSURANCE

General insurance is a practical option for anyone who likes to lead a risk-free life. Risk is associated with practically everything and, so, it is important to secure all the things that we own and value. Our valuable possessions in life, such as home, business, and vehicle, are exposed to various hazards. Also, emergency medical expenses can put one under serious financial stress. Even an otherwise mundane act like traveling too involves risks, such as accident, loss of baggage and passport, and medical expenses. So, have you given any thought to securing the family's health, or insuring your vehicle or home against any future uncertainty? If not, then it is time to focus on it now. What is general insurance?

Insuring anything other than human life is called general insurance. General insurance comprises insurance of property against fire or burglary, personal insurance such as accident and health insurance, and liability insurance that covers legal liabilities. There are also other covers such as errors and omissions insurance for professionals, credit insurance, and so on. One of the main reasons why one should go for insurance is to protect one’s belongings and assets against financial loss. When one has earned and accumulated property, protecting it is prudent. The law also requires us to be insured against some liabilities. That is, in case we cause losses to another person, that person is entitled to compensation. To ensure that we can afford to pay that compensation, the law requires us to buy liability insurance, so that the responsibility of paying the compensation is transferred to an insurance company. Who should buy general insurance?

Anyone who owns an asset can buy insurance to protect against losses due to fire or theft, and so on. Each one of us can insure our and our dependents’ health and well-being through hospitalisation and personal accident policies. To buy a policy, the person should be the one who will bear financial losses if the said events occur. This is called insurable interest. The amount you insure for is called the sum assured. Normally, a policy should cover the value of the asset — either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed. The premium will depend on the sum assured. You can avail of a range of products to suit your insurance needs. We have classified general insurance under four categories: Motor insurance: This involves protection for car and other types vechils.

The risks that are covered by general insurance are::

  • Property loss, for example, stolen car or burnt house
  • Liability arising from damage caused by yourself to a third party
  • Accidental death or injury
    • The main products of general insurance includes:

    •   Motor Insurance
    •   Fire/ Houseowners/ Householders insurance
    •    Personal accident insurance
    •   Medical and health insurance
    •    Travel insurance

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