What the world would be like if general insurance did not exist?
What the world would be like if general insurance did not exist? 12th September 2019
A world without general insurance is a world with millions of financially unprotected people. It may even be compared to a person without vaccination! The going is good as long as you don’t contract major diseases.
Why is insurance important?
It's not always possible to prevent falling sick. No matter how careful you are, someone can still break into your house. This uncertainty is what makes insurance important. It's a safety net that ensures that even if something happens, your finances don't suffer. At least not too severely. You can think of insurance as that vaccine that safeguards you against any future issues. After all, it is better to be safe than sorry.
General insurance in India covers an entire gamut of important aspects like health, home, vehicle, travel etc. Thus, to overcome the risks of everyday living, we need its security.
But what happens if there was no insurance?
You never realize the value of something until it isn’t available to you. That’s just good old human nature. So let’s appreciate insurance for what it does for us today.
You are driving back home, and it feels like every other day. However, a novice driver, driving a car with an L sign, hits your car and then speeds off. It leaves you with a broken headlight, dents and a damaged bumper.Without motor insurance, now you need to pay everything out of your pocket.
Motor Insurancewould have covered you by paying for damages to the vehicle and its owner. You could even increase your coverage by opting for add-ons such as personal accident cover and engine protection. Sounds much better than just lamenting at your loss right?
Your family has had a history of heart disease and you know you also run the risk of getting it. But there's no way to prepare for it. Later down the line, you need to get an expensive surgery done. While you manage to pay for it with all your savings, now you aren't left with much. You also are required to quit your work to recover.
This would not only affect you but your family's lifestyle as well. Health insurance, in this case, could not only have taken care of your surgery but pre and post hospitalization expenses as well. It covers our hospitalization, OPD treatments and even alternative treatments like Ayurveda. It is truly a necessity with rising prices of healthcare these days.
You are returning from a vacation in the U.S. However when you arrive in India, you find that your luggage has not reached. After contacting the airport officials, you realize that your luggage is lost. Not much you can do about it except hope that the airline reimburses you for your loss.
This is where travel insurance comes to your aid. It ensures that you get a predecided amount in case your luggage is lost by the airline. Not just that, it can also cover you for flight delay, missed flights and more.
It should be clear enough now how our world would be affected if there was no insurance. You may or may not need it, however, the risks of remaining uninsured are far more disastrous. A world without general insurance would be far more costly in every aspect that you can imagine. To find more about your options for general insurance in India, you can click here.