Everything you should know about General Insurance: The Complete Guide 14th Sept 2021
Life is full of turns and twists, making it thrilling and happening, but every turn comes with a different experience that can sometimes set you back. No one can predict what the future holds, but we can secure it.
Under the umbrella of the General Insurance sector in India, several insurance plans protect our assets from all aspects of unexpected risks. These plans provide us with a financial cover for valuable assets like a car, motorbike, house, etc., against an economic loss caused by unforeseen events like accidents, theft, burglary, natural calamities, etc.
We will see the preliminaries one should know about General Insurance and why one should choose it.
Why do you need General Insurance? Your priority is your safety, followed by the avoidance of any mess. But at times, you may experience unexpected losses that you are entirely unaware of. In such cases, insurance is your best friend. A good coverage plan from a reputed general insurance company can act as your assistant in covering economic losses which otherwise would be heavy on your pockets.
Advantages of having general insurance:
• In the event of an emergency, insurance will be your financial protection. It will repay you for the losses and expenses you had and keep the load off your wallet.
• Some insurance policies are mandatory by law. E.g., in India, a motor insurance policy is mandated under the Motor Vehicles Act of 1988. When you purchase such policies, you fulfil a legal responsibility by avoiding violations.
• Tax advantages are available with health insurance policies, which are a form of general insurance plan. Premium paid for such schemes are deductible under Section 80D. Such a type of deduction reduces taxable income, lessens your burden, and allows you to reserve some money.
Types of General Insurance in India:
1. Health Insurance: Health insurance plans provide you with a double bonanza by securing your health and wealth at the same time. It covers all the medical expenditures incurred during accidents, illness, or injury, including hospitalisation fees, doctor consultation fees, or medicines costs. One can pay it monthly or annually, depending on their convenience.
2. Motor Insurance: Motor insurance coverage financially secures your vehicles from any potential risks. The policyholder's two-wheeler or car is subjected to compensation against damages caused by accidents or any other dangers.
3. Property Insurance: Property insurance can protect your property against any risks or damages to it, such as theft, burglary/housebreaking, fire or damages due to natural calamities.
4. Travel Insurance: Travel insurance provides you with compensation for financial losses due to flight cancellation, trip interruption, delays, baggage loss, or any mishap during your trip.
Required document while buying General Insurance:
- Proposal form of the policy
- Identity card, Age proof, and Address proof
- Passport size photographs
- Documents of the assets that are to be covered
- Other supportive documents that the company may ask
When should I buy insurance? The answer, in most cases, will be a resounding "now". It protects your life, family or assets for a specified period, as long you pay timely premiums. So whether you are an unshakable optimist, a thorough planner, or someone who prefers to go with the flow, obtaining an insurance policy from a trusted general insurance company provides you risk cover and precious peace of mind.
So if you don't have the best insurance plans already, HERE is what you need to know…