Understanding the various types of general insurance in India

12 May 2019

Life is exciting. It is filled with many milestones for us to tick off. But life’s unpredictable nature means that one can never be too prepared for what can happen; a fire can burn down that house you built; you could be in an accident which destroys your dream car and puts you in a medical emergency; your trip abroad could be filled with mishaps. Thankfully, you can protect most things you hold dear. Yes, the importance of insurance cannot be understated. So it is important that you know of and invest in the different types of general insurance policies that can come to your rescue when you most need them. They are as under.

• Health insurance:

  This is the kind of insurance that every person needs. It is the type of insurance that offers coverage against any medical emergencies or surgeries you may require. The greatest benefit of health insurance is that it typically comes with a cashless facility in which you can seek admission in one of the insurance provider’s network hospitals and begin treatment without worrying about paying cash up-front. You can also choose policies to suit your requirements; from general health insurance to critical illness to insurance for pre-existing conditions and so on. You get benefits like cashless treatment, per and post hospitalisation benefits, day-care treatment etc.

• Motor Insurance:

  This is a type of general insurance that is further divided into two basic types – two-wheeler and four-wheeler insurance. In India, there is a mandate that all vehicle owners must own a basic, third party liability insurance to protect themselves and third party individuals in case of an accident. However, it is recommended that you invest in a good comprehensive motor insurance policy to reap the most benefits. Such a policy provides all-round protection i.e. you can protect your vehicle from damages endured in natural calamities like earthquakes, floods, cyclones etc., and man-made disasters like thefts, riots, strikes etc. Moreover, you can also purchase additional riders such as engine cover protection, personal accident cover, vehicle replacement, road-side assistance etc.

• Travel insurance:

  If you are a travel enthusiast you probably know that travel insurance is a must, especially when you are travelling abroad. It is one of those types of general insurance policies that can help you tackle various issues while you are in a foreign land. Travel insurance helps you in case of unforeseen circumstances such as flight delays, loss of baggage and/or passport, medical emergencies and hospitalisation cash, accidental death, and financial emergency assistance among other things. Moreover, there are different categories of travel insurance such as student travel insurance, senior citizen travel insurance, group travel insurance, corporate travel insurance and country/territory wise insurance etc.

• Home insurance:

  This is one of those types of general insurance that all home owners must absolutely invest in. Home insurance provides coverage against the entire structure of your house, while also securing the belongings you may have accumulated over the years. Your home insurance premium is determined based on the value of your belongings. Basically, home insurance provides protection against fire and peril cover arising due to a fire explosion, lightning, earthquake, aircraft damage and missile testing operations. It also protects your home against natural and man-made calamities. Like with all other types of insurance policies, you can purchase additional covers for home insurance as well.

• Marine insurance:

  Marine insurance is also referred to as cargo insurance. As the name suggests, this is a type of general insurance policy that offers protection against loss or damage owing to cargo, terminals, ships and similar other modes through which you acquire or transfer property. It also offers coverage while the property in question is held between the origin and destination points, e.g. you may be importing a car or a valuable piece of art from abroad, which requires cargo transfer. The various types of marine insurance policies include cargo, hull, freight, and liability marine insurance policy.

Now that you know the different types of general insurance in India, ensure you invest in the right ones. Insurance policies truly help in giving you a sense of security should anything happen to you or your assets.