Any mishap in life can give a shock to the family emotionally and economically. Experts advise securing your future financially in advance. Insurance is not only for death benefits, you can even save through insurance for fulfilling certain future goals like buying a car, a home, or sending your children abroad for their studies. General insurance is a tool that could prevent a significant financial loss due to any sudden unfortunate circumstances.
General Insurance can be defined as that insurance that does not fall under the category of ‘life insurance.’ The causative agents included in general insurance are floods, fire, earthquake, accidents, and other calamities. It is essential to go through all the terms and conditions of the insurance policy before buying it.
Types of General Insurance
While life insurance pays a certain amount to the beneficiaries after the death of the policyholder, general insurance protects the financial losses and damage to the policy holder’s valuables and assets. Following are the different types of insurance and the overages they offer:
Ill health can affect you mentally, physically, economically and financially. While mental and physical health can be regained with time, its effect on one’s finance can take a toll on the person and the family. The high medical costs can make any treatment more painful and complicated in case of lack of immediate fund. This is where you would need health insurance to cover the medical expenses incurred in tackling severe health issues. Broadly, there are two types of health insurance – individual and family floater.
Individual Health Insurance
The individual health insurance offers economic, medical aid to an individual who is hospitalized. You can opt for extra care health insurance policy if your existing health insurance cannot combat your medical expenses.
Family Floater Policy
A family floater policy can insure all the members of the family regarding any health issue. An individual can claim the money for treating any one person from the family or all members of the family, depending on the amount insured.
Other types of health insurance are:
Surgery Insurance Cover
A surgery insurance cover will provide a fixed sum of benefit for some predefined surgeries. The surgery insurance cover can be used for surgical treatments of fatal or severe ailments.
Motor insurance compiles two insurance namely car insurance and two-wheeler insurance. Both the insurance covers any damage caused to the vehicles. According to the Motor Vehicles Act (1988), it is a punishable offense to drive any vehicle that is not insured in a public place. The motor insurance covers the costs regarding injuries, accidents, death and property damage caused by the vehicle. Following are the common motor insurance plans:
Two-wheeler insurance provides you aid against any loss, theft or liability on your scooter or bike.
Car insurance will cover any physical damage to your car, and against any third-party liability.
Commercial Vehicle Insurance
All goods carrying vehicles – private and public carrier vehicles, and special categories of vehicles – can be insured under the commercial vehicle insurance. It is a liability only policy for commercial vehicles.
A home is considered to be the biggest asset of one’s life. More valuable the asset, higher would be the investment done on it. No one would imagine the damage of such assets at any cost. Home insurance can be a backbone to the unpredictable damage caused to your home. Like you protect your loved ones, home insurance will protect your home.
Even after following proper planning for your trip, there are chances that you require immediate medical expenses, baggage loss expenses, and expenses regarding the delay of the trip. You might not have considered money for such spontaneous and unexpected requirements. This is the time when travel insurance will help. Many insurance providers offer a range of travel insurance plans from which you can select according to your requirement.
Commercial insurance covers protection to almost all commercial sectors. Few commercial sectors include aviation, pharmaceuticals, oil and gas, technology, construction, transport, and textiles. The common types of commercial insurance include energy insurance, marine insurance, liability insurance, property insurance, financial lines insurance and employee benefits insurance.
How does General Insurance work?
- General insurance works by the procedure where you need to buy insurance against the things you want to get insured like your home, car, etc.
- Every insurer will give you a list of things that can be covered under the policy; you must make sure to read them in order to avoid any consequences in the future.
- In case you incur a loss of the insured things, you can claim money from the insurance company, if your claim is valid.
- As soon as your insured item gets damaged by any means, it is ideal to contact your insurer to know the formalities to get the money.
- The company will assess your claim and will contact you after some time to tell if your claim can be approved.
- The insurer will make sure that the claim is genuine and will give you your money if it is proved to be real.
Importance and Benefits of General Insurance
General Insurance helps you lead a risk-free life. It makes sense to insure things bought from your hard-earned money. Below are few points showing the importance of general insurance:
Winning Peace of Mind
Since life is full of uncertainties, the primary reason people opt for insurance is to earn peace of mind. General insurance can give you time to enjoy with your family without worrying about your hard-earned property damage.
To avoid car damage expenses
If you have insured your car, you do not need to worry about the costs of the damage occurred. You can claim your insurance amount to pay for your loss.
To Cover Hospital Bills
General insurance can cover your hospital bills if you have bought health insurance. You can also avail of additional health insurance policies, in case the insurance money is not sufficient.
For securing your property
With the full range of choices from various types of insurance, you can select the one or many to safeguard your family as well as your assets. The general insurance financially protects your property from any damage.
The general insurance plans include a policy to protect the property and anything related to your business. This can save you from facing massive financial loss due to natural calamity, theft or any other unfortunate reasons.
Indian Insurance Industry
In India, there are 57 insurance companies out of which 33 are non-life insurance companies, and 24 are life insurance companies. The only public sector company (life insurer) in India at present is the Life Insurance Corporation. There are six public sector companies in India among the non-life insurers. Apart from these, there is a national re-insurer, General Insurance Corporation of India. Also, individual and corporate agents, third party administrators, and brokers are a part of the Indian insurance industry.
Certain government rules have made insurance mandatory in some cases. This has increased the market value of the insurance companies in India. Under the Pradhan Mantri Fasal Bima Yojana, above 47.9 million farmers could get the benefits. The Insurance Regulatory and Development Authority of India (IRDAI) permits insurers for 10 % additional investment in AT1 bonds to expand the eligibility criteria for people. The IRDAI plans to give initial public offering (IPO) guidelines for the insurance companies in India. In September 2018, the Government of India launched the Ayushman Bharat scheme, a National Health Protection Scheme that aims to cover over 10 crore poor and vulnerable families.
Classification of Indian General Insurance Industry
Also known as the non-life insurance industry, this sector is classified into two:
Public Sector Undertakings (PSUs): The government of India entirely owns these companies. There are four PSUs in India, National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United Insurance Company Limited.
Private Insurance Companies: In India, at present, there are 12 private insurance companies in India. They are ICICI Lombard General Insurance Limited, Apollo DKV Health Insurance Limited, HDFC Ergo General Insurance Company Limited, Cholamandalam MS General Insurance Company Limited, Star Health and Allied Insurance, Future General Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, Royal Sundaram General Insurance Company Limited, Universal Sompo General Insurance Private Limited, Tata AIG General Insurance Company Limited, IFFCO Tokio General Insurance Private Limited, and Reliance General Insurance Limited.
List of General Insurance Companies in India
Not all general insurers would offer you general life insurance plans. Following are some of the general insurance companies in India:
|Insurance Company||Incurred Claim Ratio|
|Oriental Insurance Company||112.11 %|
|United India Insurance||107.06 %|
|Shriram General Insurance Company Ltd.||102.57 %|
|National Insurance Company Limited||97.25 %|
|Reliance General Insurance||92.23 %|
|New India Assurance||91.26 %|
|IFFCO Tokio General Insurance Company Limited||81.96 %|
|Liberty General Insurance||79.14 %|
|Magma HDI General Insurance||79.10 %|
|Bajaj Allianz General Insurance||79.50 %|
|Royal Sundaram General Insurance||78.13 %|
|Future Generali India Insurance Company Ltd.||77.31 %|
|HDFC ERGO General Insurance||76.90 %|
|Bharti AXA General Insurance||76.88 %|
|SBI General Insurance Company Ltd.||75.01 %|
|Tata AIG General Insurance||72.32 %|
|Universal Sompo General Insurance||70.91 %|
|Raheja QBE General Insurance Company Ltd.||68.97 %|
|Star Health and Allied Insurance||60.51 %|
|Apollo Munich Insurance||54.99 %|
|Max Bupa General Insurance||51.96 %|
|Religare Health Insurance||50.52 %|
|Cigna TTK Health Insurance Company Ltd.||48.14 %|
|Cholamandalam MS General Insurance||40.07 %|
|Export Credit Guarantee Corporation of India (ECGC)||NA|
You can also calculate the premium that you might need to pay by using a general insurance premium calculator. Looking at your hard-earned possessions, you might get a proud feeling for your achievement, but what if they get washed away in a natural calamity? No one can imagine the damage occurred! Experts’ advice that it is always safe to get your assets assured. Though we never expect any miss happenings, it is always good to take the necessary precautions through general life insurance.