Fundamentals of General Insurance in India

General insurance, also known as non-life insurance, comprises of motor insurance, health insurance, home insurance, shop insurance, marine insurance, travel and every other form of insurance. It is defined as any insurance which is not deemed to be life insurance.

Basics of General Insurance

General insurance is non-life insurance. Any insurance plan which does not fall under the category of life insurance is a part of general insurance. India has multiple numbers of general insurance providers. The most common type of general insurance plans are:

1. Motor Insurance
2. Health Insurance
3. Travel Insurance
4. Home Insurance

Motor Insurance (car, bike and all motorised vehicles)

As per the Indian Motor Vehicles Act, 1988, third party liability insurance is mandatory for all vehicles operating on Indian roads. It is advisable to purchase a comprehensive motor insurance plan for giving complete protection to your vehicle. Here a few instances which are covered under motor insurance:

1. Accidental Damage
2. Fire and Explosion
3. Theft
4. Natural/Man-made Calamities
5. Personal Accident/Permanent/Partial Disablement
6. Third-Party Liability/Damage to Third Party Person/Property
7. Add-on Rider - Zero Depreciation Cover, No Claim Bonus Cover, Emergency Assistance Cover, Return to Invoice, Engine and Gearbox Protection, Key Replacement Cover, Cost of Consumables Cover, Loss of Use - Downtime
8. Cashless and Reimbursement Facilities

Health Insurance

Health insurance is a type of general insurance which provides cover against any medical/health/accidental/emergency related incidents. Health insurance plans can be customized as per your budget and risk. Also, health insurance plans offer cover up to the insured amount. Here a few instances which are covered under health insurance:

1. In-patient Hospitalization
2. Pre and Post Hospitalization Expenses
3. Emergency Ambulance Cover
4. Sum Insured Restoration
5. Organ Donor Expenses
6. AYUSH
7. Mental Health
8. Recovery Benefit
9. Domiciliary Hospitalization
10. Rider - Critical Illness Rider, Personal Accident Cover, etc.

Travel Insurance

Travel insurance is a type of general insurance which provides cover against travel-related perils such as loss of baggage/passport, medical emergencies, flight cancellation, etc in a foreign or domestic country. It is advisable to purchase a travel plan 15 days before your trip begins. Here a few instances which are covered under travel insurance:

1. Country-Specific Plans - Asia, Schengen, USA, and Canada
2. Worldwide Cover
3. Emergency Medical Expenses
4. Accidental Related Emergency
5. Dental Treatment
6. Medical Evacuation
7. Hospital Daily Cash Allowance
8. Accidental Death
9. Hijack Distress
10. Loss of Passport/Baggage
11. Missed/Cancelled Flight
12. Medical and Body Repatriation
13. Permanent Disablement
14. Financial Emergency Assistance
15. Bail Bond

Home Insurance

Home Insurance is a type of general insurance which provides cover to your home against damages from theft, burglary, natural calamities like floods, fire, earthquake, storm and manmade events like riots, arson etc. Here a few instances which are covered under home insurance:

1. Fire
2. Burglary and Theft
3. Electrical Breakdown
4. Natural Calamities
5. Manmade Hazards
6. Accidental Damage
7. Alternate Accommodation
8. Terrorism Optional Coverage
9. Riders - electronic Equipment Cover, Jewellery and Valuables, Pedal Cycle and Public Liability.

In conclusion, it is important to have an insurance plan for yourself and family. An insurance plan is a great back-up plan in case of a financial emergency.