General insurance protects you from fire, burglary, accidents, diseases, theft, accidents etc. This comprehensive category covers all types of insurance but the Life Insurance. Common types are the motor, health, travel, home, and cyber safety insurances. General insurance has many significances.
- Saves your house – House is the most important possession anyone can have. People spend the money from their entire lifetime in building their houses. When some kinds of damages occur to your house, you need to spend additional money. However, when you insure yourself with a general insurance, all the damages related to the natural calamity or unforeseen circumstances will be covered through the insurance plan.
- Financial support for accidents – When you own a car or vehicle, you would want to keep your car safe always. However, you cannot stop the unforeseen circumstances to arrive. To face those situations, you have to prepare yourself for getting an insurance plan for your car. The insurance plan will protect all the damages to your car and damages to the third party.
- Support for your travel – When you plan for your travel, you make sure that everything will be in place. However, due to the timing error, you end up losing your luggage. Sometimes, the delay in the flight also disrupts your life. To protect yourself against those circumstances, you need to have an insurance plan for yourself.
- Protects your health – Think of a situation, where you can save the life of your loved ones. However, you do not have enough cash or money in your account to pay suddenly. The health insurance plans will protect you and help you save your life and the life of your loved ones. It helps you to perform cashless transactions at the hospitals of your choice.
Basics of General Insurance
Every insurance comes with some basics. General Insurance has basics to remember before enrolling in one.
Insurable Interest – One of the important things an insurer must have is the insurable interest according to the law. The insurance contract may be property or an event that might create liability.
Utmost good faith – Both the insurer and the insurance providers are required to observe a good faith before enrolling to an insurance plan. The insurer needs to know everything about the plan. The insurance provider needs to know all the properties about the insurer before getting to an agreement about the plan.
Indemnity – The insurer needs to claim for the loss and the Insurance provider will have to provide the actual loss amount. No way can the insurance provider or the insurer cheats on each other. The insurance providers will conduct all kinds of validation before reimbursing the amount claimed to the insurer.
Subrogation – It is the transfer of rights of the insured to the insurer. In case there are damages to you because of the third party, you can claim the damages to your vehicle through their insurance.
Contribution – It refers to the share of losses by the Insurers. It is not applicable to all types of insurance though.
Until both the insurer and the insurance providers agree to the terms and conditions, the policy works fine.
How Is It Different From Other Insurance?
General insurance covers all kinds of insurances except the Life Insurance. The coverage plans, insurance premiums, sum assured, terms of the policies, claim procedure are different for general insurance from the life insurance.
Generally, the term provided by the general insurances is shorter than other insurances. The premium payment is also lower for general insurance. General insurance offers you to have maximum benefits and coverages with minimum premium payments. You can keep the policies going if you like by paying for the premiums on a regular basis. Some of the insurance policies offer you to renew your premium for a lifetime and gives you the flexibility to choose a plan of your choice when needed. You should consider all the important factors before going for one plan.
General insurance is a good way for you to protect your assets against any kinds of damages. Instead of paying for the damages from your pocket at a time, it is advisable to ensure all your properties with general insurance plans. There are insurance aggregators in the market like Coverfox.com ready where you can compare and get your ideal general insurance plan. You can just browse through the plans and review the insurance providers before choosing a plan for yourself. You will never regret going for an insurance plan as the amount is tiny and you will never feel like paying for it deliberately without getting any benefits.