General Insurance

General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance.

A general insurance is a contract that offers financial compensation on any loss other than death. It insures everything apart from life. A general insurance compensates you for financial loss due to liabilities related to your house, car, bike, health, travel, etc. The insurance company promises to pay you a sum assured to cover damages to your vehicle, medical treatments to cure health problems, losses due to theft or fire, or even financial problems during travel. All the payments are normally in form of reimbursement.

Different Types of General Insurance Policies in India that you should focus towards your personal finances? You can get almost anything and everything insured. But there are five key types available:

  • Health Insurance more commonly known as Mediclaim

  • Motor Car Insurance

  • Travel Insurance

  • Home Insurance

  • Fire Insurance

Health Insurance (Mediclaim)

This type of general insurance covers the cost of medical care. It pays for or reimburses the amount you pay towards the treatment of any injury or illness.

It usually covers:
  • Hospitalization

  • The treatment of critical illnesses

  • Medical bills prior to or post Hospitalization

  • Day care procedures like Cataract operations

You can also opt for add-on benefits like:
  • Maternity cover: Your health insurance covers you for the costs related to childbirth. This includes pre-delivery check-ups, Hospitalization during delivery, and post-natal care.

  • Pre-existing diseases cover: Your health insurance takes care of the treatment of diseases you may have before buying the health insurance policy.

  • Accident cover: Your health insurance can pay for the medical treatment of injuries caused due to accidents and mishaps.

Personal Accident Insurance (PA Policy)

Personal accident insurance is a policy that can reimburse your medical costs, provide compensation in case of disability or death caused by accidents. There are other benefits too that you can get with an IPA insurance.

Accidental death: If the policyholder dies in an accident then his nominee gets accidental death compensation. The family is financially secure in this situation.

Permanent total disability in an accident: At times, despite medical help the victim becomes disabled for life. Then the insurance policy pays a certain amount depending upon the nature of the disability. The policy also covers loss of speech, loss of vision in both eyes, and hearing loss in both ears.

Permanent partial disability: This is applicable if a person has partially lost their hearing in one ear or suffered eyesight loss in one eye. Or, it could be that the policyholder has lost an index finger, a thumb, or even a hand. In all these cases, the policyholder can approach the insurer for a claim.

Transportation benefit: Some insurers also grant a family transportation benefit. Say, the insured person is in a hospital outside 150 km of his home. The immediate family member will incur certain transportation expenses to reach the hospital. The insurance will reimburse these expenses subject to a maximum amount defined in the policy.

Further benefits: The insurance covers other factors like education and employment benefits, and funeral expenses. You also get coverage for hospital charges, including ambulance costs. Some policies offer an educational allowance and home or vehicle alteration benefits as well.

Before buying your policy, you must keep the following in mind

Exclusions: Your insurer will not cover any loss arising out of acts of war or terror. It will not cover any claims regarding existing physical disabilities or pre-existing diseases. The exclusions also comprise mental disorders, HIV or AIDS, and congenital anomalies. The insurer will not honour any intentional injury claims. Any injuries arising from participation in adventure sports come under exclusions as well. This includes activities like bungee jumping, mountaineering, and river rafting.

Motor Car Insurance

Motor car insurance is for your car or bike what health insurance is for your health. It is a general insurance cover that offers financial protection to you from loss due to accidents, damage, theft, fire or natural calamities and liabilities to third parties.

In India, you cannot drive or ride without motor car insurance. What the insurer will pay depends on the type of insurance and what it covers.

Major Types of Motor Car Insurance:

Third Party Insurance: Compensates for the damages caused to another individual, their vehicle or a third-party property.

Comprehensive Car Insurance: Covers all kinds of damages and liabilities caused to you or a third party. It includes damages caused by accidents, sabotage, theft, fire, natural calamities, etc.

Travel insurance

A travel insurance compensates you or pays you for any financial liabilities arising out of medical and non-medical emergencies during your travel abroad or within the country.

There are two types of Travel Insurance.

Single Trip Policy: It covers you during a trip that lasts under 180 days.

Annual Multi Trip: It covers you for several trips you take within a year.

What all does travel insurance usually cover?

  • Loss of baggage

  • Emergency medical expenses

  • Loss of passport

  • Hijacking

  • Delayed flights

  • Accidental death

Home Insurance

Home insurance is a cover that pays or compensates you for damage to your home due to natural calamities, man-made disasters or other threats.

It covers liabilities due to fire, burglary, theft, flood, earthquakes, and sabotage. It not only offers financial protection to your home, but also takes care of the valuables inside the property.

Some of the common types of home insurance are:

Standard fire and special perils policy: This covers your home against fire outbreaks and special perils. The risks that are generally covered:

  • Natural calamities like lightening, flood, storm, earthquake, etc.

  • Damage caused due to overflowing or bursting of water tanks, pipes, etc.

  • Damage caused due to man-made activities such as riots, strikes, etc.

Home structure insurance: This protects the structure of your home from any kinds of risks and damages. The cover is also extended to the permanent fixtures within the house such as kitchen and bathroom fittings.

Public liability coverage: The damage caused to another person or their property inside the insured home can also be compensated.

Content Insurance: This covers the content inside the insured home. What’s commonly covered are Television, refrigerator, portable equipment, etc.

What does insurance not cover? What you need to be careful about.....

Your policy may not cover liabilities/reimbursements/adhoc payments in certain situations. These are known as exclusions.

Life
If death occurs due to: Alcohol or drug abuse War or terrorism Suicide or self-inflicted injuries Gross negligence or carelessness
Home
Wilful destruction of the property Damages caused due to wear and tear Damages caused due to war Loss of money kept inside the property Loss to a property that hasremain unoccupied for a certain period
Fire
Loss or damage caused to the property due to: Nuclear perils War or related activities Pollution or contamination Mechanical or electrical breakdowns
Motor Car
Damage caused when the policy is not active Loss of personal belongings kept in the car Damage to a car that is not insured Damage caused when driving without a license Damage caused when driving under the influence of alcohol or drugs Damage due to wars, mutiny or nuclear risks Any loss or damage caused outside India
Health
Hospitalization due to war or related activities Medical condition due to abuse of intoxicants or hallucinogenic substances Any medical condition existing before buying the policy during the waiting period Non- allopathic therapies such as acupuncture, yoga, nature-therapy, etc. Diagnostic charges if the reports do not confirm the existence of the covered disease Self-inflicted injuries
Travel
Travelling against the advice of the physician Baggage delay for less than 24 hours Psychological illness or self-inflicted injuries during your trip War or civil unrest in international locations Participation in hazardous sports like bungee jumping, parachuting, etc.

How much does insurance cost?

Your insurance costs depend on the premium amount that you pay. This premium amount depends on several factors that differ from insurance to insurance. Here’s a look:

Health Insurance: Age and gender, your and your family health (past and current), Your occupation, the type of coverage/plan, your smoking and drinking habits, the sum assured and special riders, if any.

Motor/Auto Insurance: Make-Model of the vehicle, The type of coverage/plan, the value, age of your vehicle, your claim history,

Travel Insurance: The sum assured, the type of coverage/plan, age, your health, the location of travel

Home Insurance: The size of your home, the type of coverage/plan, the age of your home and the systems installed therein, the location of your home, the sum assured

To know more about this please contact us at
customercare@finmoksha.com
disclaimer

Finmoksha financial services, is an AMFI registered distributor with ARN No. 143367 through its proprietor Gopal Kumar Agrawal

The firm does not furnish any guaranties, warranties or representations, express or implied, on products offered through the Finmoksha platform. The firm accepts no liability for any damages or losses however caused, in connection with investments made through the platform. Terms and conditions of the platform are applicable at all times.

Mutual fund and other investments are always subject to market risks. Please read all, Scheme Information Documents (SID), Key Information Memorandum (KIM), Addendums (if any) issued thereto from time to time and any other related documents or information carefully before investing. Past performance is not indicative or assurance of future performance or returns. Please consider your specific investment requirements, risk appetite and time horizon before choosing a scheme of mutual fund or any other investment.

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