Frequently Asked Questions about General Insurance

 

If you are even remotely aware of the insurance sector, there are a lot of insurance types that come to the surface. Bringing them under categories is the easiest way of spotting the difference and making things a bit easier for people who are not from an insurance background. A general insurance is one such category. Thus, it is only natural for people to have some questions about them. Here are some of the frequently asked question related to general insurance.

What is a general insurance?

Apart from the most valuable asset, a person’s life, there are several other things which need protection. Any insurance that covers these other assets which do not come under the purview of life, is a general insurance. A general insurance then is a contract between a policy holder and an insurer to offer protection or compensation should there be any loss or damage to these assets.

What are the different types of general insurances?

Since the general insurance is a larger category, there are several types of non-life insurance that it covers. Here is a list of all the policies that one can expect under the general insurance category.

  • Health Insurance
  • Vehicle/Motor Insurance
  • Home Insurance
  • Marine (Cargo) Insurance
  • Travel Insurance
  • Commercial Insurance
  • Rural Insurance
  • Property Insurance
  • Fire Insurance
  • Crop Insurance
  • Shopkeeper Insurance
  • Personal Accident and so on.

Should I buy one?

In simple terms, there is no hard and fast rule for a person to buy a general insurance. However, depending on the needs and requirements, it is advisable to have a few of them. For an instance, a health insurance policy will ensure that any medical related expenses do not eat into your hard earned savings.

Similarly, a motor vehicle insurance is not only mandatory but is needed as well. When you are spending a substantial amount of money on a vehicle, spending a few thousand additional for its protection absolutely makes sense. Depending on your needs and usages, you can and must buy one or more than one general insurance policies.

What is the right time to buy a general insurance?

Though there are no specified timelines for buying a general insurance, the earlier you buy it, the better it is. If we take the example of a health insurance, the earlier you buy it, the cheaper it is. Also, it keeps you safeguarded against health-related hazards. Since, the risks associated with health or other assets for that matter do not come at predefined dates, buying them at the earliest is your best bet.

Which General Insurance is the Best for You?

Even though general insurances are non-life related policies, they still offer quite a few significant advantages. The most common and obvious of them being the health insurance and the motor insurance. Thus, these two are the recommended ones. Here are some more details of these two policies.

  • Health Insurance

Every year the expenses related to medical procedures and hospitalisation is constantly on the rise. There is one school of thought that you can use your savings for medical expenses but at times that is far from the truth. One medical emergency and it would take only a few days of hospitalisation to deplete the savings of a person. Buying a good health insurance will ensure that you and your loved ones get the appropriate medical attention without worrying about financials.

  • Motor Insurance

The Motor Vehicles Act of 1988 mandates all vehicles to have a valid insurance to be able to ride or drive their vehicles. Though that is a major factor, it should not be the only factor. When you buy a motor insurance, you get access to cover against man-made calamities, natural calamities, personal accident cover, own damage and so on. A motor vehicle insurance will ensure that you can ride or drive your vehicle with complete peace of mind.

Which Company Offers the Best General Insurance?

It shouldn’t come across as a surprise that there are several insurers who are in the forefront of offering general insurance policies. There is a healthy mix of public sector insurers, private sector insurers and specific domain insurers from which you can choose.

For an instance, if you are more inclined towards the public sector, there are insurers such as United India Insurance, New India Assurance, Oriental Insurance and others. In the private sector, Bharti AXA general insurance, Bajaj Allianz general insurance, HDFC Ergo general insurance among others make it to the list. For health insurance, Star Health Insurance, Apollo Munich Health Insurance, Max Bupa Health Insurance are some strong brands. General insurance plans of top insurers are available on Coverfox for your comparison and easy reference.

A small investment in a general insurance will help you in the long run to protect you against loss or damage of assets.