General insurance is a category of insurance that protects assets from any unexpected loss. It is a common term that covers all kinds of non-life insurance.
For example, you have a house, and you insure it against fire by taking fire insurance. Here, the fire insurance covers any loss which might occur in case the house gets a fire. For example, health, automobiles, natural calamity, fire, etc. In case of an unfortunate event, having a general insurance cover can be of immense help.
It covers the risk of becoming sick and protects from any financial trouble in case of medical expenses. Also called medical insurance, it covers hospitalization charges among other expenses based on policy terms. Getting health insurance is prudent & necessary in uncertain times, especially during the COVID-19 pandemic.
All of us love to travel, but the unexpected loss can occur anytime, anywhere. Travel insurance takes care of all issues such as:
Delayed trips,
Canceled flights
Unexpected hotel reservation cancellation,
Lost luggage and Stolen passport.
So, next time, get travel insurance before planning that awaited trip.
Vehicle insurance covers the risk of financial loss due to accidents & other damages to the vehicle. It helps to avoid unnecessary & unexpected expenses on vehicles. Also called motor insurance, it is mandatory in India.
There are two types of vehicle insurance available in India:
Third-party Insurance: It basically covers harm caused to third parties by the insured vehicle.
Comprehensive Insurance: It covers third party liability as well as any damage done by the vehicle owner.
Note: it is essential to read the insurance policy document to know what is covered and what is not.
Owning a house is a dream for all. Yet, having a house is a job half done. Home insurance is a necessity in today’s time. It protects your house structure & its contents.
The protection is available not only against natural disasters but also man-made disasters such as fire, theft, etc. Moreover, a sense of security gives you mental peace & happiness.
Home insurance policies divide the insurance coverage into two parts: house structure and its content. It is necessary to understand the difference between the two.
A structure-only policy will insure only the structure of the house while a content-only policy will cover just the content. Therefore, a comprehensive policy covering both the structure and content must be chosen.
A fully furnished house is an expensive asset, the cost of repairing or refurbishing a house is high. It is always advisable to choose a comprehensive house insurance plan to avoid any risk related to a house.
Benefits and Features of General Insurance in India
The features and benefits of general insurance policies in India are enumerated below:
In many cases, opting for general insurance policies are compulsory by law. For example, the Motor Vehicles Act, 1988, has made motor insurance plans compulsory. One fulfills legal obligations after buying mandated insurance policies. Moreover, this also acts as a protection from the offense of violation.
General insurance plans provide compensation if anyone suffers a loss. Thus, they protect one’s savings in case an emergency arises and serve as an added layer of financial protection.
There are many general insurance plans which provide tax benefits. For example, Section 80C of ITA allows tax deductions for premiums paid for health insurance policies. It helps a person to save tax by lowering the taxable portion of the income.
