As we grow up and become successful as an adult, we tend to add to our assets and wealth generation. With added wealth and assets, we also need to think about protecting them. Likewise taking care of our family and ensuring what is the best for them is also a part of the adult experience in life. The best bet against is to insure your health, that of your family and your valuable assets. A thorough knowledge on general insurance in India will help you stay protected against a wide range of unanticipated risks and uncertainties which otherwise can cause major financial and mental stress.
So, here is a guide to general insurance types in India.
Insurance in India
In India there are two types of insurances, life insurances and general insurances. Life insurance provided life cover to the insured and/or to the nominees of the insurance. General insurance on the other hand, provides for non-life aspects of a policyholder. For instance, it covers your house, vehicles, health etc. With this distinction in place, let us look at the different types of insurance that the general insurance companies in India offer.
Types of General Insurance in India
There are four types of general insurance in India. They are as follows:
- Health Insurance - Health insurance is necessary in case of medical emergencies. The insured will be liable to receive financial protection in case of health emergencies. It provides coverage against hospitalisation expenses and other medical expenses. There are specific plans for specific ailments. There are several variants of heath insurance plans. For example, you can choose between a plan that covers your individually or a family floater plan that covers all your family members.
- Home Insurance – A home insurance keeps the structure of your house and its contents protected from a wide range of risks and potential losses. For example, natural calamities like earthquakes, and floods or man-made disasters like riots, theft, etc., can damage your home or its belongings. With a home insurance in place in case of any such damage or loss, you will be subject to reimbursement from the general insurance company you got your insurance from.
- Motor Insurance – As per the Motors Vehicle Act, irrespective of the fact a vehicle is a two-wheeler or a four- wheeler vehicle; one must have insurance. Motor insurances provide cover against loss or damage due to accidents, theft, riots, or natural calamities among other things. Motor Insurance are further of two types:
- Comprehensive insurance: This insurance covers both the parties involved in an accident. It also provides cover against theft as well as protection against all the points mentioned above.
- Third-party insurance: This only provides coverage to the third party involved in an accident. Third-party insurance has a lower premium than their comprehensive counterpart.
- Travel Insurance - Travel insurance keeps you cushioned against the possible risks that are associated with travelling. For instance, if you lose your baggage, face a delay or cancellation of flights, accidents or hospitalisation expenses, etc, during a trip. These scenarios are taxing not only mentally but also financially. To avoid unnecessary stress on top of those mentioned it is prudent that you get a travel insurance to receive the due compensation.
General insurance companies in India are always coming up with better insurance products in all four general insurance categories. Depending on your need and preferences, buy the required general insurance and lead a stress free life.