Skip to main content

All about General Insurance

General Insurance covers anything other than the risk over the life of an individual. It most commonly covers the risk against health, motor, travel, household, fire and many more.

Most general insurance policies are issued annually, that is the general insurance company provides the cover for a year which has to be renewed annually by paying a one time premium. A medical policy of an individual, for instance, is an annual contract.

Whereas, in some cases the policy is provided for a short time span such as a travel insurance policy which covers an individual only during the duration of the travel.

Major insurance policies that are covered under general insurance are:

  • Health Insurance

Health insurance policy, the most commonly of which is a mediclaim policy covers unexpected medical emergencies of an individual. Subject to the policy, it provides cashless facility by covering all hospitalization expenses along with pre and post medical expenses. It also provides tax benefit to the insured. Despite these facilities, every health insurance policy have certain exclusions which are covered only after the insured bears a waiting period.

  • Motor Insurance

Legally, every vehicle running on road should be insured. A motor insurance policy covers the damage to the vehicle and the third party during an accident. A comprehensive motor insurance plan covers the vehicle insured along with the third party that might suffer during the road accident. A motor insurance policy provide a cover to you and your family by a personal accident cover and also protects you from the liability towards the third party.

  • Travel Insurance

A travel policy covers the insured with the unheralded emergencies that may take place while travelling. These emergencies may vary from loss of luggage to the medical emergencies faced by the traveller. A travel insurance policy usually covers Medical expenses, accidental death or disablement benefit, delayed departure, trip cancellation and loss of baggage.

  • Home Insurance

It is a type of insurance that covers your most valuable asset, your house. It covers loss of home and its contents. A home insurance policy covers all your household components be it refrigerator, air conditioners or television sets. It protects your house from unexpected emergencies, keeping you safe.

Despite the above, organisations get their goods, commercial vehicles, godowns, shipments, offices, laptops and many more covered under general insurance.

FAQ'S

  • Can I take two policies and get claims from both?


In case an individual holds two policies, the claims raised would be shared by both the policies. Under no circumstances, a person can get more than the actual value of the bills against which a claim is raised.

  • How much should I ensure for?


Normally the sum assured should be the market value at the time of purchasing the insurance product.

  • How do I pay the premiums?


A general insurance policy usually is an annual contract where the insured has to pay the premium once in a year in order to renew the policy each year. Other than this, few policies are short term such as travel health policies, which require a one time payment and are valid for the duration of travel.

  • Why are there different premiums for different people?


Premiums, commonly referred to the payment made against purchasing a policy is usually different depending upon the sum assured. Higher the sum assured, higher would be the premium that a person would have to pay. Similarly, it also depends upon the age of a person in case of a mediclaim, and many other factors.

  • How do I get my Claims?

The claims are either cashless, as in the case of a health policy or the payment can be reimbursed by the general insurance company on production of bills paid by the policy holder.
 

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...
Read more

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now