What is general insurance and types of general insurance
Generally, three types of insurance are there:-
1. Life insurance
2. Non-life insurance
3. Health insurance
What is general insurance?
General insurance is also known as non-life insurance provides insurance for valuables and products other than our life. It protects us against damage, loss and theft of your value that is unsecured.
Example- motor vehicle, home, crop etc.
Types of General insurance:-
The major types are-
1. Motor insurance
2. Health insurance
3. Travel insurance
4. Home insurance
5. commercial insurance
1. Motor insurance:- motor vehicle act 1988- all the vehicles running on Indian roads should be insured.
This insurance covers cars, two-wheelers and commercial vehicles.
There are two types of motor insurance
(I). 3rd party liability cover
(II). Comprehensive motor insurance policy.
(I) 3rd party liability –
1st party is an insurer, 2nd party is an insured party and 3rd party is dead due to an accident.
The person whose death declaims is the burden of the insurer company.
~3rd party liability cover –
It provides insurance for damage done to another vehicle so as damages to another person, vehicle or property, bodily injuries and permanent disability during an accident by your vehicle.
In this cover, the insurance company pays everything and nothing comes to you
(II) comprehensive motor insurance policy –
Covers theft, fire, damages due to accident claims.
2. Health insurance:-
By this insurance, the policyholder is covered for medical and surgical expenses.
Health insurance is classified mainly into four types.
(I) comprehensive health insurance cover.
(II) family floater cover.
(III) surgery cover.
(IV) individual cover.
(I) comprehensive health insurance cover –
It is a complete package that includes all the health care facilities and health care needs.
(II) Family floater cover –
It covers family members under a single plan.
(III) surgery cover –
It provides a fixed amount for specified surgery in hospitals.
(IV) Individual cover –
It provides insurance cover for individual members.
3. Travel Insurance:-
Major protections in travel insurance, flight delay, loss of baggage or passport, medical emergencies during travel, hospital cash announce, accidental death while in travel, hijack distress allowance, financial emergency Assistance etc.
~Types of travel insurance –
In international travel insurance, student’s travel insurance, group travel insurance, corporate travel insurance, domestic travel insurance.
4. Home Insurance:-
It covers protection to the entire structure of your house and all the belongings of your house.
It protects from damage due to fire, explosion, aircraft damage, lightning, earthquake, flood, hurricane, storm, landslide, cyclone, riot, strike and theft.
5. Commercial Insurance:-
It covers the risk of business-related requirements.
The risk covers all sectors of the industry.
~Types of commercial insurance –
(I) Marine insurance – covers the ship and the cargo inside it against damage or loss.
(II) liability Insurance –
To protect the purchaser (insured) From the risk of liabilities imposed by the lawsuit and similar claims.
(III) Energy insurance – insurance for refineries, petrochemical and chemical plants, gas works, terminals, underground storage.
(IV) Financial lines insurance – Products covering financial laws and cost there of.
(V) Engineering insurance – it provides an economic safeguard to the risks faced by ongoing construction projects, installation projects and machines and equipment in project operations.
