General Insurance in India: Know All About the Types of Plans & Their Coverages

Financial planning is essential even before you start to earn. It is one of the essential life skills to known how you can grow your money. While income sources will be limited on some or the other way, the growth opportunities aren’t. Sky is the limit for money to grow, but you also need to prepare yourself for unexpected emergencies. These unexpected emergencies can be in the form of death and health ailments and many more. Preparedness can help you get through these tough times. Insurance is the best way to have a financial safeguard during these times.

Insurance in India is primarily classified in two broad categories – life and non-life. As the name suggests, life insurance contributes a corpus on the death of the insured individual whereas the non-life deals for other types of events. Since non-life insurance deals with all types of situations, it is also called as general insurance. This article elaborates on these different types general insurance policies and the coverage they offer. Let’s have a look –

  • Health Insurance

After life insurance, the popular insurance coverage is the health insurance. Like a life insurance pays the beneficiaries after the death of the policyholder, a health insurance policy takes for the costs of medical treatment. With rising medical inflation, it has become a necessity and should be a part of everyone’s financial portfolio. Depending on the stage of your life, various insurance policies can be purchased considering your requirements. Hospitalisation cover is the favoured coverage under a health insurance policy but there are other benefits like pre and post hospitalisation cover too that can be purchased.

  • Travel Insurance

Travelling in a foreign land can often be bewildering. Different cultures along with communication limitation in some regions. In these places, even the slightest inconvenience can be of great difficulty to overcome. At these times, a travel insurance plan can aid to tackle these varied situations. Some commonly offered coverage options under a travel insurance is the baggage loss cover, flight cancellation cover, and more. These travel policies are also offered based on the types of travellers like students, senior citizens, corporate travellers, solo travellers, etc.

  • Motor Insurance

Unlike other types of insurance policies, a motor insurance policy is made mandatory for all vehicle owners. These bike and car insurance plans not only help cover the cost of repairs to your vehicle, but also pay for the liabilities due to a third-party in case of an accident. Third-party and comprehensive policies are two main types of motor insurance polices that can be purchased.

  • Marine Insurance

This type insurance policy is the one that reimburses the losses that may be faced by the insured in the event the goods are damaged during transit at the time of cargo transportation, loading and unloading. There are various perils like sinking, collision, jettison, navigation errors, etc that may have a financial impact. With a marine insurance plan, these losses can be insured.

  • Commercial Insurance

A business faces different types of risks based on the environment it operates. A general insurance policy can help mitigate these numerous risks that differ not only among sectors, but also based on the geography which the business operates. Some common risks that are classified under the category are liabilities because of property damage, customers, liabilities due against employee benefits, extended warranty benefits, and the like.

With these types of general insurance plans, not only your personal life is secured, but also your professional liabilities can be insured. So be it an individual or an organisation, the importance of an general insurance cover remains the same.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.