4 Different Types of General Insurance in India
General insurance covers home, your travel, vehicle and health (non-life property) against fire, flood, accidents, artificial calamities and theft. The different types of general insurance include motor insurance, insurance, travel insurance and residential insurance. A general insurance pays for the losses incurred by the insured during the entire term of the policy.
different types of general insurance
It is important to understand the different types of general insurance today because of the many aspects they offer. Browse through to understand a lot more about them:
1. Home Insurance
Since a home is a valuable asset, it is important to protect your home with the right home insurance. Home and home insurance protects your home and its contents. A home insurance mainly covers artificial and natural conditions that can cause injury or loss.
2. Motor Insurance
Motor insurance provides coverage to your vehicle against injury, accident, vandalism, theft etc. It comes in 2 forms, third-party and comprehensive.
When your vehicle is chargeable for AN accident, third-party insurance covers damages caused to a third-party. However, you need to keep in mind an undeniable fact that it does not cover any damage to your vehicle. It is also important to note that third party motor insurance is required as per the Cars Act, 1988.
A comprehensive insurance provides protection to your vehicle from fire, earthquake, theft, impact injury, etc. to boot, against any third party liability in case of third party property injury, bodily injury or death Provides coverage.
3. Travel Insurance
A travel insurance protects you when you travel internationally and suffer losses due to loss of baggage, trip cancellations or wing delays. You will also be offered cashless hospitalization if you are hospitalized during the journey.
4. Insurance
Health insurance can be a very important tool to reduce risk and help you in case of emergency medical emergencies. An insurance set up covers the cost of hospitalization till the insured. Once it covers insurance, one may want to set up a standalone health policy or a family floater that provides coverage for all relationships.
difference between general insurance and insurance
Life insurance provides coverage for your life. If such a scenario occurs in which the subscriber covers premature death between the term of the policy, the candidate gets ad assured by the insurance firm. It is one of the most important important money tools. Insurance is completely different from general insurance on various parameters:
General insurance may be a short contract whereas insurance may be a long term contract.
In case of insurance, the benefit and add assured are paid on the maturity of the policy or in the event of death of the policyholder. On the other hand, in case of general insurance, the claim or specific loss amount is reimbursed when a selected event occurs.
Since the contract of insurance is long term in nature, premiums are to be paid during the entire term of the policy or till the minimum premium paying term. The way one thinks about the premium of general insurance, the premium is paid if the policy is revived within the next year.
Compulsory general insurance a user must have
Health insurance may be a mandatory cover in view of the ever-increasing health care charges, while travel and residential insurance will provide protection against a lot of misery. They are but not necessary to keep. The overall insurance cover that is required is third-party liability automobile insurance. This is often the minimum coverage a vehicle should have before plying on Indian roads.
Each form of general insurance comes with the purpose of supplying coverage for a selected party. So, if you haven't taken general insurance cover yet, make sure you identify your needs and buy the one that suits your needs.
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