Executing a plan takes persistent efforts, be it matters of personal finance or for your business. Apart from executing the plan in an organised fashion, it is also essential to have a Plan B in case things go down south. This can be indemnified using an insurance policy. Both for living as well non-living things, an insurance policy can be purchased.
In India, insurance is classified in two types – life and non-life. Life insurance, as the name suggests, deals with an individual’s life where the beneficiaries of the policyholder are paid a specified amount in the event of death. On the other hand, the entire non-life category is classified as general insurance.
What is general insurance?Akin to the concept of life insurance, general insurance is applicable to all things other than life. For any contingent event that is included in the policy’s scope, the general insurance company compensates the policyholder. Health, motor, travel, commercial and home are the five main types of general insurance plans that can be bought. Let’s understand a brief description about each of them.
Health insurance:Since life is insured in life insurance policies, the health of an individual can be insured using a health insurance cover. It is the most sought insurance coverage after life insurance.
Motor insurance:It is the only insurance policy that is mandatory as per the law. The Motor Vehicles Act lays down the requirement for all vehicle owners to purchase a motor insurance policy to legally drive a vehicle in India alongside registration and PUC formalities.
Travel insurance: With a travel insurance cover, any hiccups related to baggage, passport, and also legal liabilities during your travels, whether domestic or international can be insured.
Commercial insurance: With business organisations no exception to risks, a commercial insurance plan helps to tackle the financial liabilities that may arise against your business.
Home insurance: Since a home is the single largest asset that most people buy, damages to it can be gruesome. A home insurance cover makes sure to net these damages as they can result in a big dent in your life savings.
Here are some tips to keep in mind when buying a general insurance cover –
#1 Make sure you buy the policy based on your requirements. There are a myriad insurance plans that are available and selecting in a haste can often lead to unsatisfactory coverage.
#2 Depending on the risk involved, ensure you buy an appropriate amount of policy coverage.
#3 Don’t let premiums be the sole factor in deciding your purchase. There are other features that must be looked while premium can be one of the many factors in consideration.
#4 Comparison is the key. Any policy you buy needs to be compared with other available options so as to get the suitable policy at the right price. Moreover, make sure to read the terms and conditions thoroughly to be fully informed of the conditions as well as the insurance claim process.
Using a general insurance policy, you can effectively cover any associated financial risk. Different policies are available for different circumstances and buying and consistently renewing it can help you in the long run.Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms & conditions, please read sales brochure/policy wording carefully before concluding a sale.