General Insurance: Protecting Your Assets

General insurance provides protection against losses and damages to assets other than life. This guide explains different types of general insurance policies, their benefits, and how to choose the right coverage for your needs.

Types of General Insurance Policies

1. Motor Insurance

Motor insurance provides coverage against damages to your vehicle and third-party liabilities arising from accidents.

Types of Motor Insurance:

• Third-Party Liability Insurance: Covers damages to third-party property or injury/death to third-party person. It is mandatory for all vehicles in India.
• Comprehensive Insurance: Covers both third-party liabilities and damages to your own vehicle due to accidents, theft, fire, natural disasters, etc.

Key Features:

• Mandatory third-party coverage as per the Motor Vehicles Act
• Option to add add-ons like zero depreciation, engine protection, roadside assistance, etc.
• No Claim Bonus (NCB) for claim-free years
• Personal Accident (PA) cover for the owner-driver

2. Home Insurance

Home insurance provides coverage against damages to your house and its contents due to natural disasters, fire, theft, etc.

Types of Home Insurance:

• Structure Insurance: Covers damages to the building structure.
• Contents Insurance: Covers damages to household items like furniture, electronics, etc.
• Comprehensive Home Insurance: Covers both structure and contents.

Key Features:

• Coverage against fire, natural disasters, theft, and other perils
• Option to add coverage for valuable items like jewelry, artwork, etc.
• Liability coverage for damages to third-party property or injury to third-party person
• Temporary accommodation expenses if the house becomes uninhabitable

3. Travel Insurance

Travel insurance provides coverage against unforeseen events during domestic or international travel.

Types of Travel Insurance:

• Single Trip Insurance: Covers a single trip from start to end.
• Multi-Trip Insurance: Covers multiple trips within a specified period (usually a year).
• Family Travel Insurance: Covers the entire family under a single policy.

Key Features:

• Medical expenses coverage during travel
• Trip cancellation or interruption coverage
• Loss of baggage or passport coverage
• Flight delay or missed connection coverage
• Emergency evacuation coverage

4. Fire Insurance

Fire insurance provides coverage against damages to property due to fire and related perils.

Key Features:

• Coverage against fire, lightning, explosion, and implosion
• Coverage against damages due to aircraft, riot, strike, and malicious damage
• Option to add coverage for natural disasters like earthquake, flood, etc.
• Coverage for removal of debris and architect fees

5. Marine Insurance

Marine insurance provides coverage against damages to cargo, hull, and liability during marine transit.

Types of Marine Insurance:

• Marine Cargo Insurance: Covers goods being transported by sea, air, or land.
• Marine Hull Insurance: Covers the vessel and its equipment.
• Marine Liability Insurance: Covers liabilities arising from marine operations.

Key Features:

• Coverage against perils of the sea like sinking, stranding, collision, etc.
• Coverage against fire, explosion, and other non-marine perils
• Option to add coverage for war, strikes, and civil commotions
• Coverage for general average and salvage charges

Factors to Consider When Buying General Insurance

1. Adequate Coverage

Ensure that the sum insured is adequate to cover the value of your assets. Underinsurance can lead to proportionate claim settlement.

2. Policy Terms and Conditions

Read and understand the policy terms, conditions, exclusions, and deductibles before purchasing.

3. Claim Settlement Ratio

Check the insurer's claim settlement ratio, which indicates the percentage of claims settled.

4. Premium

Compare premiums across insurers for the same coverage. However, don't compromise on coverage for a lower premium.

5. Network Garages/Hospitals

For motor and travel insurance, check if the insurer has a wide network of garages or hospitals in your vicinity for cashless services.

Tips for Filing a General Insurance Claim

1. Immediate Notification: Inform the insurance company about the incident as soon as possible.
2. Documentation: Collect and submit all necessary documents like FIR (in case of theft or accident), bills, invoices, photographs, etc.
3. Survey: Cooperate with the surveyor appointed by the insurance company to assess the damages.
4. Follow-up: Keep track of your claim status and follow up with the insurance company if needed.
5. Negotiation: If the claim amount offered is less than expected, negotiate with proper justification.

Frequently Asked Questions