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

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
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