What Is General Insurance And Types Of Insurance

General Insurance And Types Of Insurance: Insurance refers to a type of agreement between two parties. One party (the insurer) promises the other party (the insured) any possible compensation in exchange for a small fee within a specified period. There are many types of insurance, including life insurance, health insurance, dental insurance, travel insurance, general insurance, etc.

What is general insurance?

Ordinary insurance is the act of ensuring that the insured receives compensation from the insurer for the accidental cause of the property in exchange for paying a certain amount of fee. It is mainly insured for fires, natural disasters, thefts, etc. In 1971, the general insurance business was nationalized in India. (What Is General Insurance And Types Of Insurance)

Why do we need General Insurance?

A part of general insurance is automobile insurance. If there is any damage your car, you will need to fix your car with the repairs. (What Is General Insurance And Types Of Insurance)
However, if you have an insurance policy for the car, you can get that money from the insurance policy. Remember, an insurance policy will pay only according to its pre-determined conditions. (What Is General Insurance And Types Of Insurance)

Types of General Insurances

1. Naval insurance

The contract by which the insurer promises to compensate the insured for any loss due to maritime risk is the naval insurance contract. (What Is General Insurance And Types Of Insurance)

2. Fire insurance

Fire insurance is the insurance contract that is made to cover the loss of property due to fire.

3. Accident insurance
Accident insurance is the insurance contract executed to compensate for the loss of property as a result of an accident. There are different types of insurance, such as-

  • Motor Car Insurance: The insurance contract that is made for motor and car-related compensation is called motor car insurance. In 1956, car owners were given compulsory instructions to insure their vehicles.
  • Abduction insurance: Abduction insurance is an insurance contract made to cover the loss of property or robbery of a person or organization.
  • Third-party insurance: An insurance contract that covers the loss of life and property of a third party, including the risk of injury or death, is called third-party insurance. So the liability arising from the loss of life and property of a third party belongs to them.

Parts of General Insurances

There are two essential types of insurance –

Term Life Insurance –

It is insurance that is better and purer than all insurance. You will get a reasonably high-priced cover at a meager premium, which means getting more at a lower cost. It not only gives you life insurance cover, and there is no investment in the premium or premium paid. This is a specific insurance policy.

It is paid to the family member after the holder’s death, and no money is paid to him if the policy expires, and the policyholder is alive. (What Is General Insurance And Types Of Insurance)

The only purpose is to warn your family that it has to be paid for a certain period according to the insurance companies terms and conditions. If the amount of payment is not credited, the insurance becomes void.

Whole Life Life Insurance –

A whole life insurance policy gives the insurance holder an insurance plan for his entire lifetime. Policyholders pay a regular premium until his death, and all money is paid to his family after his death.

The feature this type of insurance is that as the age increases, the premium increases because the person becomes ill and more likely to die as the age increases. (What Is General Insurance And Types Of Insurance)

From such an insurance policy, a person can create a suitable property for his heirs. The term of this insurance policy is 100 years (term), and if a policyholder survives longer than that, the plan is subsequently changed to an endowment policy. If you need insurance for your whole life, then this insurance will be good for you, but you will have to pay a premium for the rest of your life.

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Importance of General Insurance

  1. Avoid vehicle damage costs
    If you insure that your car you don’t have to worry about your car being damaged. You can claim amount of money lost in your insurance company for your loss.
  2. To pay the hospital bill
    If you have health insurance, general insurance can cover the number of your hospital bills. If the amount of insurance is not sufficient, you can take out an additional health insurance policy.
  3. Secure business
    If you have general insurance for your business, it can save you from incurring substantial financial losses due to natural disasters.

Frequently Asked Questions Answer:

Q. What are the types of general insurance?
A. Health insurance, motor insurance, travel insurance, home insurance, fire insurance. From a commercial point of view – property insurance, marine insurance, engineering insurance. (What Is General Insurance And Types Of Insurance)

Q. What is the diffe-rence between life insurance and general insurance?
A. Life insurance is a contract that ensures your life risk and acts as a field of investment. General insurance is a contract of indemnity that promises to make your losses better. (What Is General Insurance And Types Of Insurance)

Q. What are the insurance policies? (What Is General Insurance And Types Of Insurance)
A. Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution. Loss Minimization.

Q. How many general insurance companies are there in India?
A. In the general insurance business in India, there are 30 available insurance companies providing insurance like health insurance, motor insurance, home insurance, travel insurance, fire insurance, etc.

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