A General insurance policy is a non-life insurance product that includes a range of general insurance policies. Common forms of general insurance in India are automobiles, mediclaim, homeowner’s insurance, marine, travel, and others. The policy offers payment to the policyholder based on the loss incurred from a specific financial event. General insurance is insurance that is not categorized under life insurance.
Unlike life insurance policies, the tenure of general insurance policies is normally not that of a lifetime. The usual term lasts for the duration of a particular economic activity or a given period. Most general insurance products are annual contracts. There are, however, a few products, which have a long term.
The Concept of General Insurance
The concept of insurance applies to a large group of people that may suffer the same issue in the same region or condition. The money that is collected as the premium can be considered as a pool and when one encounters some loss, he/she is paid from this pool.
Still, confused about what is a general insurance policy and general insurance meaning? If yes, then go through the following example, suppose your family member suffered a heart attack and he/she requires a transplant on an immediate basis. At the same time, you have to pay the fees of your daughter’s first year of college. Now you have huge expenses to meet consecutively and both the issues have the same priority. In this stressful time, the health insurance policy for your family can share your burden and you can pay the fees of your daughter from your savings without any worry. In this way, general insurance in India works as your savior.
The Requirement of General Insurance Policy
Suppose you are driving back home after completing a stressful day at work and suddenly another car hits your car from behind. Your car’s bumper comes out and it gets a dent. Now you require approximately Rs.7500 to fix the bumper and Rs.2000 for dent repair. A car insurance plan in such a case plays a key role. The amount that you have paid for repairing your car can be reimbursed under a comprehensive car insurance policy. In this way, a general insurance policy for a car fulfilled your requirement of financial help in case of car damage due to an accident.
Difference between Life Insurance and General Insurance
Mr. A took a life insurance policy of Rs.1 Crore for which he has to pay Rs.20, 000 annually as premium for 50 years. After giving approximately 10 installments, Mr. A died due to an on-road accident. Mr. A’s family got Rs. 1 Crore. So, the reimbursement in a life insurance plan is made either at the time of death or maturity.
Mr. A took a Fire Insurance plan for his company. The sum insured for this plan is Rs. 1 Crore and the premium that he has to pay was Rs. 10 lakhs. In case of loss due to fire, the insurance provider will pay the amount of claim after the deductibles (as applicable).
Rajat purchased an endowment plan which will pay some amount upon maturity or his family members will get money if he dies. A life insurance plan is issued for the lifetime of the policyholder or until the maturity period.
Rajat purchased a comprehensive car insurance policy for his car. He purchased this plan on 02. March.2019 and will be expired on 01. March.2020, after a year. So, the general insurance plans are purchased for one year.
Priti chooses to purchase a life insurance plan of Rs.50 lakhs. The total period for which she has to pay the premium was ten years. After completing these 10 years, she received Rs.50 lakhs. In this way, a life insurance plan is an investment plan that pays upon policy maturity.
Proto got the insurance of her car for Rs.5lakhs. Her car got damaged in an accident and its bumper came off. The bumper repair charges were Rs.15, 000 and her insurance provider will pay off this amount after deducting the deductibles. The general insurance policy work according to the limits and conditions of the policy.
Pankaj has taken a term insurance policy and at the time of the contract, he has to be present. In life insurance, the policyholder who has the insurable interest has to present.
Pankaj has insured his car with a car insurance policy. However, he sold his car one year later to Ruchi. Ruchi renewed this car insurance policy as the vehicle will be in use. This time the policy was renewed by Ruchi, not Pankaj. So, in general, insurance policy the insurable interest of the insured has to be present while the policy is renewed.
List of General Insurance Companies in India
The list of insurance companies is as follows:
|Public Sector||Private Sector|
Standalone Health Insurers*
Disclaimer : *Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.